Category Archives: Stock Market Advices

Stocks Basics – Different Types Of Stocks

Recent studies have shown that people are not well informed about the basics of stock trading. Confusion caused by different rules and stock market indices is not a rare thing. If you’re a beginner and you’re not specialized in trading with a particular stock, you may find yourself struggling to understand some simple terms. Today we’ll write about the basic types of stocks. In general, there are two types of stocks – common stocks and preferred stocks.

Common stocks are, as the name already says – common. In fact, when someone says “stocks” there is a 99% chance that they’re talking about common stocks. This is because the majority of stocks is issued in this form. Common stocks represent ownership in a company and a claim (dividends) on a portion of profits. Investors (shareholders) have the right to vote at the board members election (one share – one vote). If a company goes bankrupt, the common shareholders will be the last in line for payment.

Preferred stocks are (in some things) the opposite of common stocks. They represent ownership, but they don’t give the voting rights to their owners. With this type of stocks, investors can count on a fixed dividend as long as they hold that specific share in their portfolio. Another difference is that this dividend is guaranteed, unlike the common shares’ dividend, which is variable and never guaranteed. If the company goes bankrupt, preferred shareholders are paid before the common shareholders but after debt holders. The company also has the right to buy these stocks at any time. This practically means that the shareholder is obliged to sell the share, if the company requires. There is no such rule with common shares.

Top 3 Online Stock Trading Platforms

Finding a great online stock trading platform can be mission impossible if you don’t know what (and where) you’re looking for. Various sites offer a chance to earn “lots of money without any costs”, but here you won’t get any of that. Here you’ll have a chance to see which sites are considered to be the best ones in this niche, and you’ll also see their pros and cons. The final decision is up to you.

Trade King (tradeking.com)

Trade King offers a wide variety of trading options to help build your portfolio. It offers a great selection of investment tools, charts, graphs and calculators to help you manage your account. The best thing about Trade King is the fact that it offers a low, flat-rate trade fee. You can even connect with other traders to exchange ideas and get advice for online stock trading. On the other hand, some people don’t like it because this online platform is not customizable.

Options House (optionshouse.com)

The Options House online platform was launched in 2006 by its parent company PEAK6 Investments. It offers trades with the lowest fees in the industry. This platform suits those who don’t have much experience in this niche (non-professional investors). Option House has a customizable platform and it allows you to focus on aspects you find to be the most important. The only thing this platform is missing is access to international stock trades.

Options Xpress (optionsxpress.com)

Options Xpress is labeled as one of the best online brokers. It offers a variety of investment options – including other investment vehicles that many other services do not offer – and an intuitive platform with a solid lineup of tools and features. A variety of fees is also present – some of them are higher than usual, while others are significantly lower. But, the quality of the platform and company is worth the extra cost for many investors, especially those looking for riskier ventures with high pay-off potential.

Getting Successful In Stock Market

Let’s just leave out the part that tells. Investing in stock is a risky endeavor everyone’s aware of that. The question how steer yourself away from such paths that can devastate any investor. Remember this it takes years of hard work, dedication, persistence and a never ending willingness to learn.  The first thing obviously to be kept in mind should be awareness about market trends. For that you need an extensive analysis of the area you are interested to invest. Once you get an idea of area of interest, you must decide about a few more key points.

Ask yourself if you want to invest for a short term venture or a long term. Regarding short term one thing must be crystal clear. Short term market fluctuates in a random manner, that said the answer is simple you can’t play it safe in short term. One essential point should be, if you can’t afford the luxury of losing money given your expenses & needs don’t invest. Be pragmatic.

Choosing the right mentor is of key significance. There are two paths simply put. The hard way, most people investing in stocks learn after losing too much. So it’s better to get some tips from someone with a sound knowledge of investing in stocks him knowing your strength and weakness. Check if your trading style is in accordance with yourself lifestyle. Simple the time you can invest in stocks is the second most precious after your money.

Before investing, carefully devise out your strategy. There is no hard and fast rule to it. It’s important to have in mind that a strategy can fail also. You develop a style with passing years, once it works stick with it. Commencing a partnership or going solo. These two choices must be evaluated with detailed reasoning. Better way is to find a eccentric trustworthy partner. Seek the long term profitable investments. Often the young inexperienced runners chase short term investments thinking of just making quick money. Remember short term investments require much more attention.

Bear in mind to avoid lame stock market myths. Few of them are listed below.

Investing is just like gambling. This phrase is wrong the duos are entirely two diverse things. Stock market is just for rich people & Stock-Brokers, with advent of internet information regarding stock market. Are easily accessible to general public falling stocks will go up eventually? This isn’t a wise move. Most of the investors make this fatal mistake. This doesn’t get them anywhere.

Stocks that go up must come down. The value of a stock rises due to progress of the company. So hoping for such a miracle won’t help. Also keep in mind when to sell stocks when to buy them & associating with the right successful people is vital for survival in stock market.

 

 

 

 

Stock Market Success isn’t a Secret Anymore

Frankly, there is no magic to get success in stock market; there is no secret magic at all to make you millionaire.  To get success in stock market, there is a simple trick that is to spot great corporations and try to buy their stock at the price that has room for growth. In this article the secret success strategy in stock market is divided in two parts.

  • Identification of Top Companies
  • Buy Stock at great price

Clearly it is human nature that they want to get success in short span of time and this is why a lot of investors don’t do market research and try to find a shortcut.  Honestly the main idea of every investor is to take an edge, any overwhelming situation in market provide an opportunity to investors to triumph.  However, it has been noticed that a lot of investors seeks shortcut to get success. They often get tips from associates or friends to get millionaire in short time period.  Off course the word of mouth or suggestions are certainly compelling; even these recommendations are given by a less informative person.

In the past these recommendations or suggestions were given in office or at backyard of office but with technological advancement social media and email are places where these news lives now’ myriad of technologies information’s are coming via email and social media. Every great investor wants to invest in great stocks, off course you would also like to do it why not?  These stocks are divided in three categories.

  • Christmas tree Ornaments
  • Great But late
  • Bicycles

Christmas tree ornaments are the stocks that look attractive from outside but they are not viable in nature, they attract the attentions of investors but in the end investor loss their money because these businesses were not viable. No one could remember their names after three to four months.

It means investors don’t realize the actual economic cycle of the stock/investment.  The investors buy the stock when the demand is great but they don’t realize stock is going to flat soon. Great but Late

In this investor is right to invest in the stock but when the investor bid, the price at that point goes up (more the realistic value) once you buy it you cannot earn or make profit anymore. There is a simple rule buy high and sell low.

There is only a simple rule hold a good stock in your hand for some time but not long enough.  You are going to invest your hard earn money so before making any investment read and study the market situation.

 

 

Some basic tips to flourish in Stock Market

Stock Market

Stock Market

If you are making an investment in stock market and you are looking to make overnight profit then this may not be possible in all circumstances. There are still chances that you can do so but these are very rare. So what you have to do to make profit in longer term is that you should go and search some good stocks in which you can make investment, other than this you must have a plan in mind as well as on paper that you should have to follow so that you can analyse it from time to time.

There are people who may advice you to follow the rumours and make your deal done on those rumours. This is not good always, because these rumors may sometimes get you in trouble. So when you get any rumour, you must have to investigate it first and when you feel satisfied then you have to make any possible deal, otherwise may lose your existing money.

Another important thing that you have to make sure before making the stock invest is that you should invest in different stocks. If you diversify your investment then you will surely be able to minimize the risk. In this case if you are even losing something in one stock you may be recovering well from the other that can compensate the loss somewhat. So you have to choose the portfolio really carefully. Once you will be able to make a good decision about investment then you will not have to worry a lot.

Next thing that you have to keep in mind is that you should not follow the crowd unless you are very much sure. If there is a rumor or news and a lot of investors buying some stock or selling something, then you don`t have to follow them blindly but you have to think and make the decision according to your understanding. This way you will be able to learn better and make a good decision based on your experience and knowledge. Mostly who follow the trend may not get as much profit as they might get by investing in some other stock.

These are some of really basic tips that you must have to focus and consider before making any final investment plans. If you want to be successful, then make your own decision using your own mind and knowledge.