How to Invest in Stocks Wisely

Investing is stocks are one of the largest ways that people look to make residual income when it comes to stockstackup.com" title="investments">investments. In fact, many people use stocks as a way to build on their retirement funds and trusts. It is important to know how to invest in stocks even if you are using an investing company or a brokerage to handle your trades.

Knowing how to invest in stocks can keep you informed and help you to make wise investment choices. When looking into how to invest in stocks the first thing to do is look into the various things that are going to affect the market. There are some things that will affect the market on a wide spread basis and there are some that are going to affect only a particular portion of the market. Knowing this information is going to assist you in determining where to invest and how to invest your money on stocks of interest.

Once you have some of the stocks that you are interested in it may be a good idea to get the trends and patterns that are formed by the movement of that particular stock. This will tell you when to purchase the stock, when to sell the stock and how to predict when certain stocks may become more viable investment options.

These patterns and trends require some mathematical computation. As a result these are best done by entering data into an application designed specifically for marketing analysis. These applications are readily available and many stock investment software applications provide reporting functions that can help with these stock analysis.

Knowing how to invest in stocks is the best way to protect yourself as well as your investment. In order to minimize the financial risk at the same time you increase your potential gain it is best to be an active participate in your portfolio. Know what the market is that you are investing in, which stocks and what types of factors have a direct effect on that particular market as well as the market in general this will help to reduce the risk of losing your investment.

You do not need to be an expert in stock investing in order to be actively involved but you will probably need to invest some time in researching terms, trends, and how to spot things that will potentially bring about a greater return for you and your investment.

Whether you are investing as a way to earn extra money, as a job, or to save for retirement being able to actively participate or trade on your own is something to consider seriously. This helps minimize the risk whether you are investing on your own or you are investing through a brokerage firm. Stocks especially cheaper stocks can contain a greater amount of risk due to fluctuations that larger more stable companies. While this does present a less stable trading environment you can see a greater amount of potential and using a reporting of the patterns and trends of the stocks are part of knowing how to invest wisely on the market.

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My Day Trading Robot User Review

Day Trading Robot is one of the most notable stock trade systems out these days. I could never find an unbiased review from anyone who has actually used the program themselves, so I decided to finally buckle and get it for myself to share my results here. So here is my Day Trading Robot review. 

First I want to mention a bit about this stock trade system for anyone who is unfamiliar with it or this technology in general. What this program does is compare past trend data to current data with the aim being of finding similarities between the two. It capitalizes on and exploits the market's tendency to repeat itself and evolve in cyclic patterns. It analyzes past market data, then applies it to current real time data to find similarities to further investigate. Eventually once the program has identified what it deems as being a high probability trade opportunity, it notifies you so that ultimately all you've got to do is enact the recommended trade. 

This is ideal because it enables beginner traders as well as the more casual and busier traders to still effectively invest in the stockstackup.com" title="stock market">stock market. Also, because every act is carried out for you, no emotions factor into any of your trades, making the whole trading process less risk sustained.

What I've noticed that the major different between Day Trading Robot and other programs is is that this system focuses on stockstackup.com" title="penny stock">penny stocks when making its picks. This is one of its greatest assets as stockstackup.com" title="penny stock">penny stocks are lower risk stockstackup.com" title="investments">investments in general but offer a great deal of profit potential room.

For example, the very first pick which I received from Day Trading Robot was valued at 15 cents when I got the pick on a Sunday. I bought 1000 shares or so and logged out of my trading account. I put it in the back of my mind until I logged back in not even two days later. I was shocked to find that that precise penny stock which the program recommended that I invest in had doubled in value in that short time to 31 cents. I admit that I logged out then back in to make sure that I was reading it correctly. From that moment on I began checking on that stock like a madman. It finally topped off after climbing for awhile longer to 48 cents a share. By the time I sold I had practically tripled my investment.

I don't want to lie to you and tell you that every pick which I've received since then has been just as profitable. That was one of my better picks, but I've continued to receive profitable picks reliably time after time for the past 6 months or so since I first got this system, and I'd recommend it to anyone looking to make a profit in this market whether you're new to the game or simply aren't making the kind of money which you should be making.

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Stock Trading Newsletter - A Great Tool For Daily Stock Trading

Daily stock trading is a form of short-term stockstackup.com" title="investments">investments as the buying and selling of stocks are completed within a day and you can easily see the results at the end of the day - you either earned some profit or not. This is more of a hands-on approach as you can buy the stocks yourself, watch how it performs, and any time you think it is time to unload it, you sell it off without going thru a stock broker. To be able to do this, you need to be well-informed and prepared because you need to make decisions as you only have hours or even minutes to make your move.

Day stock traders start early preparing and doing their research so when the stock market opens they can put their plan into action. The online stock trading newsletter is one of the best sources of information that you can rely on. By subscribing to it, you can get your copy as early as the night before so you can start preparing for the next trading day. There are various newsletters you can freely access online and most rely on advertisement and because of this may not be too reliable for you to use as they tend to be biased. There is also the paid newsletters wherein you can get a more reliable and detailed information on the stock market.

The basic advantage of subscribing to a stock trading newsletter is that it can provide you an in-depth analysis of the stock market. There are daily stock analysis and other reports that you can use to help you make decisions. You get updates on how the stocks have been performing and the general feel of the stock market. It provides daily stock picks, trading ideas, unbiased market commentaries, and helpful strategies when you start trading. You can also get crucial policies on daytime trading that would help you as you prepare your plan on action.

For beginners, you can check out training courses being offered to help you have a good start on this business. You will know how stock trading works as well as the dos and don'ts in stock trading. There are also simulation programs where you can practice stock trading until you get the hang of it. In here, you would also find success stories of other investors who have engaged in daily stock trading that will definitely inspire you and there would be lessons learned as well to help you avoid making the mistakes that they have gone through.

A stock trading newsletter is more or less a one-stop shop where you can find information all related to the stock market which makes it a really great tool for daytime stock traders. It perfectly serves as an online mentor that can guide you which stocks to buy and when to sell them, how to interpret stock reports, inform you about the current market trends and basically provides you with an in-depth understanding of the stock market. It is one important source of information that no daytime trader should go without to be successful in this trade.

Shane is a financial advisor, stock broker, and professional consultant. He enjoys reporting on the latest stock market happenings and offering advice to both fledgling investors and experienced day traders.

Visit his site to learn more about stock trading newsletter and daily stock trading.

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A Quick Stock Market Tutorial - 15 Tips For Beginners

The best advice you can get about stock market investing is to go into it with your eyes open. That means doing your market research and analysis and then carefully selecting and picking winners. This brief guide will give you a basic stock market tutorial so that you can familiarize yourself with some key concepts and be better informed before investing.

stocks are pieces of ownership in a company. Also called shares, they represent a part of the shareholder's interest in the company's profits and assets, but not necessarily liabilities.

Some stocks earn you a regular payout, called a dividend - which is your reward for investing your money in that stock. You can also sell stocks at a higher price than the one you bought them for to make a profit.

The stock market is like an auction house where shares are bought and sold and buyers and sellers determine a price by bidding on stocks.

Stock prices fluctuate, sometimes wildly, during the day of trade, as buyers and sellers drive the stock's demand and supply.

Companies don't trade stock directly; instead once they have offered the stock to the public in an Initial Public Offering, they then let buyers and sellers directly determine demand without interference.

A stock exchange is a place that facilitates the trade of stock.

When you want to buy stock in a company, you call a brokerage firm and open an account with them. Alternatively you can use an online broker.

To set up an account with a brokerage, you need proof of identity - social security or drivers' license.

Generally, greater risk in the stock market means a higher return, although this isn't always true.

Stock tables appear in your daily newspaper and contain important information to help you monitor your stocks - you should read this everyday.

Your personal finances should be in good shape and you should have some spare cash for stock investing as it can be a time-confusing, and for the novice, risky venture.

You should read books, magazines and internet articles on stock market tutorials to better acquaint yourself with the market's dynamics.

The three main stock indexes in the US are the Dow Jones Industrial Average, the NASDAQ, and the S&P 500.

The main stock exchange in the US is the New York Stock Exchange (NYSE), where most blue-chip stocks are listed.

A company's stock cannot be traded at the exchange if it is not first listed on that exchange.

The stock market is a place of much fervent daily activity. It's constantly in the news and very sensitive to changes in the world's economic and political climate. To make sense of it, you must give yourself at least 6 months to a year to fully understand its intricate workings. You can, however, begin to start investing small amounts and learn as you invest because after all, experience is the best teacher. This stock market tutorial should have given you an idea of the basics; now you can easily explore the concepts outlined here in more depth for greater understanding and ultimately higher returns.

Kelly Clifford from StockMarketsMadeSimple.com has put together a complimentary report titled "Stock Market Basics: A Beginners Guide To Understanding The Stock Market" that will likely prove invaluable in putting you on the fast track to becoming a knowledgeable and successful Stock Market investor. To download your copy now instantly.. CLICK HERE [http://www.stockmarketsmadesimple.com/index.php]

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How Do I Get Started in the Stock Market?

You would like to invest some of your money. You want to plan for your retirement. You want to make some additional money. You ask yourself, "How do I get started in the stock market?"

What are stocks?

When you buy stocks, you are buying little pieces, or individual shares, of ownership in a company. If the value of your stock rises, you will make money. Otherwise, you could lose money or break even, depending on what the value of your stock does. If you own 100% of the available stocks in a company, guess what? You are the owner. Getting started in the stock market can seem complicated, so naturally you ask, "How do I get started in the stock market?"

How much will it cost to invest in the stock market?

How much it will cost will depend on how many shares of stock you want to buy and how much shares of stock cost. It is possible to open up an online account to buy stocks from a brokerage company for as little as $5. If you want to request quotes for a particular stock, you will receive an ask price, which is the lowest price a particular stock could cost you and a bid price, which is the most you could hope to sell the stock for.

How do I know which stocks to buy and how much money can I make?

There are more than 8,000 stocks available, so it is not surprising you wonder, "How do I get started in the stock market?" There are a lot of ways to determine which stocks are the best to invest in:

o Get advice from financial experts, like a broker.
o Invest in the same stocks that your retirement money is invested in, if you are making money.
o Listen to the advice of experts on radio, television, and in newspapers and magazines.
o Buy stock in successful companies, those whose stock value has been typically increasing.
o Read online sites about the stock market and take a class or attend a seminar about investing in
stock market.
o Read online reports of individual companies filed with the Securities and Exchange Commission.
o Consider the stocks of local companies you trust.

Typically it is not unrealistic to make 10% on your stock market investments, if you invest in companies whose stock value usually increases.

Develop Financial Goals

Talk with a broker and financial expert to determine how much money you would like to and need to make. Look at what you need to make money for-retirement, or some other reason. If you are married, talk everything over with your spouse. Be prepared to hold onto any stock you buy for at least three years, maybe five, before selling.

Discount Brokerage

It is good to get advice from a trusted financial advisor, but if you learn enough about stocks that you feel comfortable investing, you can do an Internet search for discount stock brokers and invest yourself and save money on brokerage fees.

Lucy Bushman is an accomplished niche website developer and author.

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Why Fundamental Analysis & Technical Analysis Are The Same

For years, I have been asked this same question over and over again, "Which is better, fundamental analysis or technical analysis?".

For decades, analysts of one camp argued about the ineffectiveness of the other and provided reasons and evidences how one method of analysis can be used at the exclusion of the other. For decades, fundamental analysts; people who dig deep into the business model and financial statements of companies, gave proof to the ineffectiveness of technical analysis. For decades too have technical analysts; people who read charts to find trends, patterns and investor behaviors, gave proof to the ineffectiveness of fundamental analysis.

Suddenly, it feels like there are 2 different worlds existing simultaneously, talking about the same stocks, same markets with views that are supposed to have nothing to do with one another. How is that possible?

If fundamental analysis is truly ineffective, why have fundamental analysis existed for so many centuries? If technical analysis is truly ineffective, why are technical analysis and chartists still paid so much money in Wall Street? If fundamental analysis is ineffective, why does earnings releases move stocks so much? If technical analysis is ineffective, why do resistance levels and support levels prove to be accurate time and time over again? What if both methods are truly one and the same thing?

Yes, fundamental analysis and technical analysis are really two sides of the same coin, two perspectives on the same issue and two components making up a full picture.

Fundamental analysis explores 2 main issues; Earnings expectation and Growth expectations. The ultimate objective of fundamental analysis is to arrive at an opinion on the future profitability of a company and how much that profitability is worth in terms of stock price. The higher the earnings expectations and growth expectations, the higher the stock price ought to be. However, scientific as this may be, it is missing the final element that moves stocks... investor sentiments or how much investors think that earnings and growth expectation is ultimately worth! Technical analysis reflects the final verdict of investors towards that earnings and growth expectation. Without this final verdict, all analysis is meaningless. However, this final verdict may not always be inline with your own expectation towards the future profitability and growth of a company. Because both fundamental analysis and technical analysis is really the same thing, a decision to buy or sell a stock should take both views into consideration. When fundamental analysis revealed a potential rise in earnings, does the charts support that view? Have investors started moving ahead of the news? Does the trend so far reveal that investors are not impressed with that outlook at all? When a reversal signal turns up in technical analysis, is there any fundamental reasons driving that reversal? Is it just nothing but an unsustainable exuberance not supported by fundamental reasons?

That being said, when a company's fundamental outlook is continuously strong over a long period of time, technicals will also reflect that same long term strength through long term bullish trend and patterns.

In this sense, fundamental analysis and fundamental analysis are truly one and the same and nobody can do with one and not the other. It is like examining the physical attributes of a boxer versus his track record. You cannot have a complete picture of the capabilities of a boxer unless you take both views into consideration.

Because fundamental analysis and technical analysis are 2 different views on the same subject, they both have certain strengths over each other.

Fundamental analysis is capable of telling if a company has long term growth potential and whether or not its stocks are worth while long term investments. However, fundamental analysis is incapable of predicting or explaining short term trends of a few days that are not caused by fundamental company events like earnings release. Technical analysis on the other hand is capable of telling when prices are out of sorts and when prices shouldn't rise or fall anymore using support and resistance levels. Such knowledge is extremely useful in trading short term trends. However, technical analysis has proved to be ineffective at predicting long term price actions as business fundamentals does change significantly from year to year.

I hope I have resolved the feud between fundamental and technical analysis today and that you have understood that both are really the same thing, talking about the same thing while providing a slightly different perspective. I hope you will embrace both methods from now on and use the right bias on the right investment horizon and outlook. I personally use both analysis in my stock options trading and I would turn the bias towards technical analysis in my short term trading System">short term trading System, the Star trading system.

Jason Ng is the Founder and Chief Option Strategist of Masters 'O' Equity Asset Management ( MastersoEquity.com ) and author of OptionTradingPedia.com . He is a fund manager specializing in options trading and his revolutionary Star Trading System has helped thousands.

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Option Stock Trading

A highly successful financial product nowadays, stock options offer the investor flexibility, diversification and control to protect his/her stock portfolio or generate more investment income. Options are advantageous because they can be used under almost every market condition and for almost every investment objective. Options also help the investor to purchase stock at a lower price and to benefit from a stock price's rise or fall without owing the stock or selling it outright.

As options have a unique risk/reward structure, they can be used in combination with other option contracts and/or other financial tools to seek profits or protection.

Using stock options, investors can fix the price for a specific period of time, at which an investor can buy or dispose of 100 shares of stock for a premium that is only a percentage of what one would pay to own the stock outright. This helps investors to leverage their investment power while increasing their potential reward from a stock's price fluctuations.

As far as stock options are concerned, there are only limited risks for buyers. In no way can an option buyer lose more than the price of the option, the premium. With the right to purchase or sell the underlying security at a specific price expiring on a given date, the option will expire worthless if the conditions for profitable exercise or sale of the contract are not met by the expiry date.

Even as options offer many investment benefits, they are not meant for everyone. Just as one's returns can be large, so too can the losses - leverage. Moreover, the means for realizing the potential for financial success in option trading may be difficult to create or identify. A large amount of information must be processed before an informed trading decision can be arrived at. Option trading is more complicated than stock trading because traders must choose from many variables besides the direction they believe the market will move. Careful consideration and sound money management techniques are a must for successful option trading.

Stock Trading provides detailed information on Stock Trading, Online Stock Trading, Option Stock Trading, Stock Trading Systems and more. Stock Trading is affiliated with Swing Stock Trading.

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Review - The Looting of America

The Looting of America: How Wall Street's Game of Fantasy Finance Destroyed Our Jobs, Pensions and Property, Les Leopold, 2009, ISBN 9781603582056

With America in the economic doldrums, a lot of attention has been paid to artificial financial instruments, called derivatives, created by Wall Street. No one has tried to explain them in plain English, until now.

Your local bank puts together a financial security pooling 10,000 debts (mortgages, credit card debt, car loans, etc.). That is a collateralized debt obligation, or CDO. An investor would get a portion of the interest owed by those 10,000 borrowers. There is always a risk that some borrowers will default on their loans, supposedly reduced by bundling together so many loans. The amount of interest an investor gets is based on the amount of risk they are willing to accept.

Of course, the bank has sold that security, or pieces of it, to other banks, municipalities, pension funds; anyone it could seduce with promises of high profits, with little or no risk. The security had been given a high rating by one of the major credit rating agencies, in exchange for huge fees, when such a rating was totally unjustified. Large numbers of borrowers start defaulting on their loans, because the local economy is in big trouble, and the bank is on the hook to pay off the security based on all that debt (not to mention being on the hook for the original debts). Unfortunately, the bank does not know the size of their obligation, because there is no public listing of derivative prices. They can't sell the security at any price, because the other banks are also in trouble.

Move that bank to Wall Street, and multiply the problem by trillions of dollars per day, and you get some idea of the size of the problem. Those who still worship the free market say that government intervention is the cause of all this. All that credit card debt, and all those home buyers who defaulted on their mortgages, knowing that they could not afford them, are what drove the economy into the ditch, not Wall Street. Simply cut taxes on the rich, reduce or eliminate government regulations on business, and the market will take care of itself. Nonsense, the author says.

He advocates greater transparency in derivatives, including a publicly accessible list of prices, and keeping them on an institution's regular books, not "off the books." He also calls for salary limits, and a consumer watchdog agency with teeth.

Finally, someone explains how the economy almost collapsed (in plain English). This is an excellent and eye-opening book that is very much worth reading.

Paul Lappen is a freelance book reviewer whose website, http://www.deadtreesreview.com, has over 700 reviews on all subjects, with an emphasis on small press books.

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Financial Planning For Retirement In India

Retirement is a financial challenge for most in India. What one saves through working life can seem less than adequate for the 'peaceful' years of retirement. Increasing life spans make it critical for people to plan for 25 + years of retirement, inflation continues to erode savings and interest rates continue to moderate as the Indian economy matures. What should you do if you are intent on having a pleasant retirement ?

1. Set your target: It is important to know what amount of money, in today's terms, you would need at your retirement. For example, if you are 35 years of age and think that Rs 25,000 per month (in today's terms) is a good sum for retirement, plan to retire at 65 and hope to live till 80, then you can expect to require close to Rs 1,10,000 every month in the 66th year. This is simply because inflation continues to lower the purchasing power of your money. To get to this number, you should plan to have savings of approximately Rs 2 crores (Rs 20 million) by the time you retire. If you want to maintain your lifestyle, this pool needs to be closer to Rs 4 crores (Rs 40 million) in your 80th year !

2. Start young: Only way to do this is to start young. A typical rule of thumb is to save up to 30% of your gross salary through your working life. Compound interest helps the savings pool grow in a healthy way even as your earning and savings power increase over the course of your career.

3. Create a portfolio: Build a balanced portfolio throughout your life. It should have a good mix of real estate, stocks, mutual funds, bonds, deposits and possibly gold. The riskier assets like stocks and and equity based mutual funds could form larger portion of your portfolio when you are younger (say 70%) and move to a more stable portfolio as you arrive into your 50s (deposits, real estate and bonds forming most of your portfolio). Many people forget to create a portfolio and put all their eggs in one basket - typically real estate !

4. Leverage early: Another way to create wealth over the longer term is to take loans wisely. Home loans are an important instrument that one could use from fairly early in life. It has been observed in most developed countries that people build property assets by taking loans and upgrading throughout their life. Home loans also offer tax advantage. While home loans can be useful, excessive debt on credit cards, personal loans or margin lending (against stocks) can be dangerous - use such debt only with care.

5. Manage your portfolio: It is normally wise to take profits along the course of your investment period and reinvest into the lows. While very few can time markets, it is important for investors to remain flexible in terms of liquidating assets, booking profits and waiting to pick new assets at the lower end of price cycles. Being brave is key, especially in turbulent economic times.

6. Plan tax wisely: It is important to plan taxes well. There are approved tax breaks like the ones on home loans and 80c that should be considered carefully. In closing, it must be highlighted that the above ideas are just pointers. It is important that you seek advice on your finances and taxes from professionals early on. Should you find good ones, there may be a chance of getting to the number !

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Investing in Blue Chip Stocks

These are basically companies who have had a proven track record. These are companies who have multi billion dollar turn over and are pretty famous like apple, Microsoft, P&G etc. The blue chip stocks are relatively safe for investment compared to the other options that you have.

Why should you invest in blue chip stocks?

There plenty of reasons why you should invest in blue chip stocks:

o Proven track record: These companies have a proven track record for centuries. They have high management bandwidth so even when the industry trends are on their way down these suffer very little because such companies have been through the same times before and know how to handle such situations.

o Stabilized Growth: These companies have a stabilized growth instead of some new ones which are in profit in one quarter and in loss the other. Due to which the stocks of these companies can easily give you an return of 15% compounded annually.

o Diversified: These companies are mostly not based on one product or one sector. They have widely diversified interests which helps the balance sheet in case a certain sector suffers a slag. Due to their diversification strategy they tend to suffer less during the slag periods because all the sectors are unlikely to slow down at the same time.

o Good long term bets: blue chips stocks are the best bets if you want to invest for the long term. These give great compounded results over the long term. These companies have a solid foundation and over a period of time have only one way to go that is upwards. Hence these should be your first choice when you have to invest for the long term.
How to classify a stock as a blue chip?

A blue chip stock can be identified based on the following parameters:

Strong balance sheet: These companies with strong balance sheets with moderate to low debt. They have consistent dividend paying history.

Market cap: The market cap of blue chip stocks is among the highest in the market. The market of blue chip companies is billions of dollars.
Diversified interests: These companies have diversified interests. They have vested interests in many sectors rather than one.

Strong order book: These companies have strong order books of billions of dollars and ever growing.

Strong order book indicates that their growth is not halted and the company is poised for a growth which is essential factor for an investor while investing in any company.

So now you know everything you need to invest in blue chip stocks, so go ahead and invest in the blue chip stocks to make a killer return.

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