Jun
1
Safe investments in bearish market conditions
Filed Under Investments, Stocks & Trading | 2 Comments
Be guarded when everyone around you is euphoric and be speculative when everyone is cautious. This is something along the lines Warren Buffet said while putting in billions in a bearish stock market.
These are times of economic meltdown but you can still make an attempt to put your money safely. Hell has broken loose but you can keep making small profits without the risk of capital erosion. It can be usage of treasury bills or CD’s or fixed deposits or hedged real estate funds. Choices are aplenty.
High-dividend stocks are perceived by many to be less volatile. It is because such stocks are better placed to cut through the tide of bearish market. Also, such dividends are not taxable and offer returns that are largely tax-free. (Even if there might be a hidden tax levied somewhere). You can also go for ISA or individual savings account.
May
9
Investing in penny stocks
Filed Under Investments, Stocks & Trading | 1 Comment
Penny stocks do not pertain to blue chip companies. They are available at a very small face value and generally show remarkable volatility. While investing in penny stocks, you must think of the prerequisites. First, you must look for a company that is trading in high volumes. Here we mean consistent daily trading. Abstain from companies that use one day high-volume trade and then sit around for a week or so.
Also, it is important to look for a penny stock company that has the potential to make profits in a middle run. Yes, it is acceptable to keep sticking to a company at the initial stages even if it does not make profits. You have got to understand that there are quite many logistic difficulties. At the same time, you have got to fathom out if the company has the capacity to do well in a semi-distant future.
Feb
27
Difference between forex trading and stock trading
Filed Under Forex, Stocks & Trading | 11 Comments
Stock trading ruled the roost till forex trading arrived. Stock trading is practiced over a centralized exchange. Forex trading is performed over both centralized and decentralized exchanges. Both have high volumes but forex trading has today developed into a 300 trillion dollar daily industry.
Stocks plummet or rise a higher percentage of their holding in comparison to currencies. Currencies rarely pass the 1 percent bar whereas stocks can rise or fall as much as 20 percent even naturally without breaking the individual circuit. This is why forex brokers give large leverage spread of as much as 500:1 whereas stocks have margin money of hardly 15:1. Forex traders rely far more heavily on forex robots than stock traders. These are automated programs that place pips without human interference.
Stock trading can be accomplished for a single stock; for instance, Wal-Mart. Forex trading is done for a currency pair; for instance, EUR/USD, you cannot enter a forex trade without a currency pair.
Dec
21
Trading in Stocks – Things you Should Have (Part 5)
Filed Under Finance & Investments, Stocks & Trading | Leave a Comment
People trading in highly volatile stocks need to keep a constant eye on the value of the stocks. There are people who are dependent on the fluctuations of these volatile stocks for their daily income. These people are called day traders. Once you identify the volatile stocks, you need to invest in them. You can ask your stockbroker to buy them for you.
You can log on to the websites of online stock traders to get the latest values of the stocks. But you cannot keep the webpage open on top of the other applications on which you need to work. Neither is it feasible to buy a computer just to keep a stock value website open. Plus the website may or may not refresh itself. You may need to press F5 to refresh it every now and then.
The best way is to use a stock ticker. A stock ticker is a software that can be downloaded to your computer. When installed and started, it looks like a small strip, which you can place on the uppermost position of your screen. This ticker connects directly to the stock exchange and constantly shows the values of your stocks by way of scrolling them in the strip. You can also set alarms, which go off in case the value of a particular stock reaches the level you specify. This way you can use your computer and do other jobs without worrying about checking the stock values.
Dec
18
Trading in Stocks – Things you Should Have (Part 4)
Filed Under Finance & Investments, Stocks & Trading | Leave a Comment
The more you are involved in the stock trade, the more are your chances of making more profits. There are some people who are satisfied with the nominal returns per month. There are other people who want every cent of their investment in the stocks to return as much as it can. These people trade in stocks that are highly volatile.
You can find the volatility of a stock using the simulator as well as observing the stock for certain period of time. But simulators may not give you detailed information. They are meant to provide you with the performance of stocks across last few years. They cannot provide you with the daily performance reports.
If you opt to observe the stock movement, you will have to wait for long before you begin. And then, how many stocks can you observe at a time. Being a human, your calculations are prone to errors too.
You can alternatively use the volatility charts. These charts are available online on the websites of the online stock-brokers. You can choose a period and get the data from these charts, which will help you in determining the volatility of the stocks.
Dec
15
Trading in Stocks – Things you Should Have (Part 3)
Filed Under Finance & Investments, Stocks & Trading | 2 Comments
As mentioned in the earlier article in this series, you can use a simulator to determine which company performs best in shares and at which exchange. There are more than 250 stock exchanges all over the world. But as you may not be able to keep yourself updated on the laws related to trading and transfer of money if you trade in some foreign stock exchange, you should try to trade in your own country’s stock exchange.
Once you know which company to trade in, you should know when to invest. For this purpose, you should have the trend chart. These are the charts that show the performance of a stock over a period of time. This helps you in determining the future of the stock. In short, you study the last few years and see when the stocks are up and when down. Once you trace the pattern, you will buy the stocks when they are lowest and sell them when they are highest. However, it is not recommended to wait until the stock reaches its maximum value, as it can backfire anytime. You can sell the shares as soon as you think you are getting enough profit.
Many online stock brokers offer the trend chart services, some of which are free too. You can use them by visiting their websites. It may take some time before you can fully understand the charts and start understanding the stock behavior pattern.
Dec
12
Trading in Stocks – Things you Should Have (Part 2)
Filed Under Finance & Investments, Stocks & Trading | 2 Comments
The first and foremost thing you should know is where to put your money in. You cannot just pick up a company and put your hard-earned money into it. You should do a little research. You may of course leave this part to your broker. But it is better to study the companies, which offer you better chances of making profits.
To study the companies, you can go through a number of websites studying their performances. This will take very long time and cause a lot of stress as well. Plus you need to record and do calculations to achieve the company whose shares you can buy.
There is a better alternative to it. Try using simulation software. This simulation software connects to many stock exchanges all over the world. It fetches data from the stock exchanges you select. The data it fetches includes the financial as well as stock performance averages of different companies. It also allows you to select a company and view further details of the company.
Thus, the simulator is the first thing you should have in order to select the shares that offer more returns. These simulators can be ordered online too.
Dec
9
Trading in Stocks – Things you Should Have (Part 1)
Filed Under Finance & Investments, Stocks & Trading | 1 Comment
Trading in stocks is almost like gambling. But the factor of luck is smaller in this case. If you trade with care, you make more profits. If you know what and how to use, you minimize your loss. First of all, you should know why you are trading in stocks.
In case you want to invest for your future, you should never go for the shares. Instead opt for debentures and banking solutions. The returns are less but the chances you losing your investment are minimal.
Most of the people trade in stocks to make quick money. Many depend on the stock-trade only for their income. Such people may or may not use stock brokers for counseling. Even if you have a broker, there are things that you should know so that you can make instant decisions and implement them quickly. The stock market is highly volatile and delay can cause a profit-in-being to a bitter loss.
In the next few articles, we will look at the things you should possess in order to successfully trade in the stocks.