Archive for the ‘stock market’ category

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

Trading Stocks Online For Beginners

October 11th, 2011

When you first begin trading stocks online you must open an account with an online discount broker. In the past we’ve mentioned some brokers and shortly we will have a large list of the good and bad of brokers but for now, find a solid broker with a good reputation if you wish to trade penny stocks, ensure that this broker will allow penny stock trading.

That’s it.

Without a broker you can not trade. Now that you have a broker what are your trading plans. Here are 10 of our ideas (there are many more if you search):
4 Things to Look for When Buying a Stock
Various Day Trading Strategies
20 Huge Investment Mistakes
Buying Penny Stocks
Buying Stocks on Dips
Swing Trading Strategies
Arbitrage Trading
Buying Penny Stocks on The Bottom
Buying Stocks on Margin
Buying Gold Vs. Buying Silver

Hope these articles help you turn a profit in the trading world.

Buying Stocks on Margin

October 5th, 2011

Should I buy stocks on Margin?

Margin is the act of buying stocks using borrowed money through your broker. The amount of margin you can use is decided upon by your broker and the size of your account. Basically, the broker will lend you money based upon your accounts worth. Very similar to borrowing money for a mortgage on a house. In that scenario the bank looks at your value and what you can put down, then they loan you the rest for the house. With margin, you are attempting to use borrowed money to make a much larger gain. As you can easily see, borrowing money to invest in the stock market can be quite risky. If you buy in a bull market and use all the funds leveraged to you, you will make much more money than you would have without using margin. The same goes for a bear market and taking a loss. You can then lose much more money than you expected. Margin is a dangerous game. Read More about trading on margin.

Buying The Dips

September 26th, 2011

Buying the dips is a strategy used to purchase the stock you want at a better or cheaper price. When you find a stock you like you should begin to follow and chart the stock. Nothing moves straight up and even if your stock is moving upwards it will have a couple days of down prices before continuing its trend upward. Perfect timing when “buying the dips” would be to catch the stock on a pullback to a recent support area and then pick up the stock. You will be at an area of support and hopefully the support will hold and bring the price higher, in this case you will immediately have a green trade. Some traders use the buy the dip strategy to increase their position in a stock as well. Day traders will use this strategy for intraday trades where they look to pick up a gain by scalping. Read more about Buying the Dips

Twenty Huge Investment Mistakes

September 20th, 2011

Here is a list of investment mistakes made often!
1. Know why you are investing in a specific company or stock. Also know why you are in the stock market at all. Click here for more investment mistakes

Buying a Stock: The 4 main things to look for.

September 14th, 2011

Lets assume everyone knows how to buy a stock. Get a broker, pick a stock, and pay for it. How many traders know what they are buying though? Here are 4 important things to look for in a company when you wish to invest in their company by purchasing a stock. Read more

The Growth of Value Stocks

September 11th, 2011

In recent history growth stocks have been the main choice in the stock market, especially in the early stages of a bull market. Is this changing now? Will value stocks begin to lead the market into the future? If you are uncertain what a value stock is, they tend to pay large dividends, trade at low valuations while having strong balance sheets. During the last few years of stock market trouble, growth stocks were supposed to lose their leadership role and value stocks were supposed to take over. This has not come to fruition we wonder why and what the future holds. Read More about Value Stocks

Stock Pick: NOK

June 7th, 2011

Two weeks and two stock picks. Very unlike us, especially after a few months with nothing we loved in the market.

Last weeks Stock Pick ELTP picked at .12-.13 hit .18 yesterday (up 50%) and we’re hoping for much higher gains. There was about a 2 day window to get in at our entry price. These are not pumped or hyped stock picks.

Today’s stock pick: NOK closed at 6.60 yesterday and we like it here in the 6.50 range. The stock is down almost 50% since February. This was once a huge company and still is rather large, we feel that after a ton of misses NOK will be on the upswing. Currently hard value price per share is approximately 4.50. Has a nice dividend as well.

NOK closed at its lows of yesterday and with any luck it will gap down this morning for a nice entry point. Expect some sideways action after today before it begins the expected upswing. First resistance should be about 9.00, expect this after we begin to move up.

Again, around 6.5 looks like a good entry, we’re expecting a low open, how low we’re unsure of, If its anything drastic we’ll create another post discussing the entry.

As always, do what you feel is right and good luck!

Some older stock picks (we don’t pick often but when we do, we’ve done very well): SD gained over 300%
BANR did what we wanted, over 100% but then it split and the exact high point of gain is hard to extract, if someone wants to figure it out for us let me know.
BP This was picked in a range of about 28.00 and hit 49-50.

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