Archive for November, 2011

What is the Stock Market

November 28th, 2011

Are you one of those people that wonder what is the stock market while wondering how the stock market works and what exactly are stocks. Probably not if you trade with us but for those of you who are new to the market and trading, here is a brief breakdown of what the stock market is and what it is not.

What is the stock market:

The stock market is a public entity (not a public place) where people trade pieces of a company in the form of shares for a price. This price is fluid and is based on the value of a company as well as the companies future potential. Supply and demand is at work here, there are many companies that are undervalued as well as many companies that are overvalued.

There are many different stock market exchanges throughout this country and the rest of the world. Stock exchanges are places where the stocks of public companies are listed and traded. The largest stock exchange in America is the New York Stock Exchange.

Who Trades in the Stock Market

The stock market is traded by anyone who wants to invest or trade in companies. A lot of individuals trade and invest in the market but they are not the only ones. There are hedge funds, mutual funds, banks, companies, and insurance companies that enter the market in varying degrees. They all have the same goal of making money while protecting themselves from any downfall in the economy.

Both individuals and the public corporations that were previously mentioned, trade the market in varying degrees with various goals. They all wish to turn a profit but some will be invested in safe securities that they hope will turn a profit, others will be involved in much riskier investments that could cost them a lot of money or if they’re correct, make a large percentage of cash for the person or entity investing.

Why Trade in the Stock Market?

Companies allow their company to be traded in the stock market to raise capital or funds to grow their company further. A company can sell off more shares to raise capital when it is needed and purchase them back at a later time if they choose. Many companies trade in their own shares which helps to increase the liquidity of their shares.

Forex Market Hours

November 15th, 2011

Traders often ask what the Forex market hours are. This is much different from the normal American stock market hours, technically this market is open 24 hours a day. The Forex market allows you to trade any time of day or night. That doesn’t mean you should trade at any hour, you should find the best time to trade within the market. It does mean if you need to sell a Forex position in the middle of the night, then you can. Click here for the full forex market hours

Stock Trading Algorithms

November 7th, 2011

An algorithm is a logical mathematical angle that when used correctly will solve a problem. For our uses, the trading algorithm will mathematically solve the stock market by following a specific formula or procedure that takes the human element out of stock trading. By creating a mathematical formula you can rule out: whims, gut feelings and other emotions that a trader may have when entering or remaining in a trade. Read more about Stock Trading Algorithms

Is There A Safe Way to Trade Penny Stocks?

November 1st, 2011

Is There a Safe Way to Trade Penny Stocks?

Trading any stock is risky, but penny stocks can be particularly risky. Penny stocks do not have a high liquidity, they carry the same risks as other stocks, and even though they cost less and can be funded with a payday loan, you can still lose a bit of money with them. However, new investors can learn much by trading penny stocks and find ways to reduce the risks associated with penny stock trading. Read more on Safely Trading Penny Stocks