Category Archives: Stock Secrets

Best Stock Market Analysis Software

To get an advantage in the stock market, you need a solid education, experience, patience, but also the best tools. The following are some of the best software offerings from industry giants to new entrants that are currently available.

MetaStock

Recommended for those who need excellent real-time news, access to a huge stock systems market and powerful technical analysis with global data coverage all backed up with excellent customer services. The latest release of MetaStock XIV has been a big hit with improvements across the board. Featuring huge improvements in Scanning, Back Testing and Forecasting, this powerhouse is one of the best offerings on the market at this time.

TradeStation

Recommended for full broker integration, trading off charts and frequent traders. TradeStation also features a great price point of free for brokerage clients. A leading brokerage house with excellent execution and low commissions, TradeStation also has great software. With full broker integration, the software can offer trading from charts, live P&L analysis and automated trading as part of the package scoring a perfect 10.

eSignal

Recommended for those who like great charts, scanning, broker & chart trading integration and an easy to use, yet powerful and elegant interface. eSignal offers a quality product that is well developed, looks great and has beautiful charts. It will run on your PC, Mac, tablet or smartphone. In addition to that, it will also provide global data coverage for all stock exchanges, very fast data speeds and cover all markets from equities and ETF’s to futures and Forex.

Stock Investment Facts

Investing in stocks can be really difficult to understand if you’re not an expert in this niche. That’s why you should do some research and pick up a few simple tips before you get into the business.

1. A stock is not just a piece of paper.

A lack of knowledge often makes people think that buying a share is just like buying any other security. But, shares are different – they represent a share in the ownership of a company. More shares – more rights in the company. So, buy shares strategically and pick the companies wisely.

2. Stock prices track company’s earnings.

How does the stock get its price? Many laymen will say that the brokers have the biggest influence on the price. But, the truth is that a company’s earnings should be credited for determining the price of the stock.

3. Stock price tells you nothing about the company.

The price means nothing without information like the company’s earning prospects. If a stock costs $100 you may say it’s expensive. But, if the company’s earnings are expected to be very high, then $100 stock is considered to be cheap.

Stock Market Secrets Your Broker Won’t Tell You

People in different businesses tend to keep secrets about how they do specific things in their companies; stock markets are no exception. Each stock market has some specific secret that your broker probably won’t tell you.

• Online traders are not directly connected to the market

You might expect that when you push “send” or call your broker, the trade is instantly placed. But your broker decides which market to send it to, and prices can change before it reaches its destination. Investors may not always receive the price they saw on their screen or the price their broker quoted over the phone.

• Education has a higher return on investment

The Brookings Institution reported that long-term investments in stocks, bonds or housing may return less profit than getting a college degree. The benefits of a four-year college degree are equivalent to an investment that returns 15.2% annually. This is something your broker will not tell you because, after all, he gets no money if you decide to invest in education.

• The market is run by robots, not people

The vast majority of trades placed every day aren’t done by big asset management firms, but floor traders and computerized algorithmic models looking for short-term price discrepancies. We all saw what happened when a software bug helped trigger broker-dealer Knight Capital’s trading errors to the tune of $440 million.

London Stock Exchange

The London Stock Exchange, or colloquially, the Exchange, was founded in 1801. It is currently the third-largest stock exchange in the world, according to market capitalization. In fact, the exchange had a market capitalization of US$6.06 trillion (short scale) as of December 2014.

The Exchange, which is part of the London Stock Exchange Group, runs several markets for listing. This gives an opportunity for different sized companies to list. The Exchange opened a Hong Kong office in 2004 and has attracted more than 200 companies from the Asia-Pacific region. A number of products can be listed in London by international companies, including debt, depositary receipts and shares, offering different and cost-effective ways of raising capital.

The Premium Listed Main Market exists for only the biggest of companies. A Super Equivalence method is operated here, where conditions from both the London Stock Exchange’s own criteria and the UK Listing Authority have to be met.

Interestingly, Glencore International plc. completed the largest IPO on the exchange in May 2011. It was one of the largest IPOs ever thanks to the fact that the company raised $10 billion at admission. In terms of other primary markets, there is also the Alternative Investment Market (AIM), as well as the Specialist Fund Market and the Professional Securities Market.

On the London Stock Exchange, the securities available for trading include structured products, common stock, global depositary receipts (GDRs), exchange-traded funds, exchange-traded products, covered warrants, and lastly, bonds and retail bonds.
As aforementioned, there are two main markets on which companies trade on the London Stock Exchange: the Main Market and the Alternative Investment Market (AIM).

The Main Market is home to more than 1,300 large companies from 60 different countries. In excess of £366 billion has been raised through new and further issues by Main Market companies over the past 10 years. The main share index of the 100 most highly capitalized UK companies listed on the Main Market is the FTSE 100 Index, popularly referred to as the “footsie.”

On the other hand, the Alternative Investment Market is an international market on the London Stock exchange intended for smaller growing companies. A wide range of businesses join AIM in search of access to growth capital, such as well-established companies, but also venture capital-backed and early stage ones. The AIM is essentially a flexible market with a simpler admission process for companies wanting to be publicly listed.

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.