The Best Way to Play the Stock Market

If you want to play the stock market start by earmarking a sum of money for that purpose and open a separate account with a major discount broker. Come up with a simple system for recording each stock transaction so you can tell at a glance what you hold, what you bought and sold, and where you stand for the year.

Now that you are organized and set up to play, there are some rules or guidelines that you should be aware of. Investors who play the stock market and win don't agree on everything, but there are some things that many of the winners do agree on.

Here's the best way to play the stock market based on the best advice I have run across over the past 35 years. Remember, in this game nothing is guaranteed, but the rewards can be huge if you are good at it.

1. Do not day trade in this account. stockstackup.com" title="day trading">day trading is a game of its own, played by those who trade very often and close out positions in order to pick up as little as a few cents a share within a few minute or hours.

2. Limit your holdings to about a dozen different stocks. If you own too many different issues you are likely to just duplicate the results of the market in general. This is not your objective when you play the stock market ... you should be trying to beat the socks off the market averages.

3. Watch your holdings closely. Once again, this is difficult if you own more than a dozen different stocks.

4. Hold your winners, and cut your losses by taking a small loss on the losers. Few REAL professionals disagree with this basic principle. If only one-half of your stock picks turn out to be winners, your gains will outweigh your small losses.

5. Don't try to catch a falling knife. In other words, do not buy a stock when its price is in a free-fall. Momentum is a fact of life in the stock market. As in physics, an object in motion tends to stay in motion until acted upon by an outside force. Wait until market forces halt the downward slide in stock price before you buy.

6. Sell a stock as soon as it fails to keep up with the market averages. If the market in general is moving up with conviction and one of your stocks is not, get rid of it.

7. Give ETFs serious consideration. This is the best and easiest way to play a sector or segment of the stock market. Why sweat over which financial, foreign or basic materials stock etc. to jump on at an instant's notice? Buy the group, and sort out the winners and losers later if time is a factor.

Above all else, keep a firm grasp on reality. You are playing this game in order to win big. I don't care what else you have accomplished in life, you will find this adventure more challenging than you anticipated.

FEW folks beat the market. Few professionals do either.

That's why I recommended up front that you earmark a sum of money in a separate account to pursue this game. Do not bet the farm on your dreams of beating the market, because it's a tough nut to crack. Consider the money in this account as "play the stock market" money. In other words, earmark an amount of money you could live without when you open this account.

Managing your serious money ... your retirement nest egg ... is a totally different game and different rules apply. Personally, I play both ways and have for years; but I make every effort to keep the two in perspective.

A retired financial planner, James Leitz has an MBA (finance) and 35 years of investing experience. For 20 years he advised individual investors, working directly with them helping them to reach their financial goals.

Jim is the author of a complete investor guide, Invest Informed, designed for average investors or would-be investors of all levels of financial background and experience. To learn more about investments and investing and his new financial guide go to http://www.investinformed.com

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Technical Analysis in Stock Market Trading

The methods used to analyze securities (stocks) and make investment decisions are vast, but tend to fall into one of two categories known as fundamental analysis and technical analysis. Fundamental analysis involves researching and evaluating the characteristics of the company including the evaluation of company financial statements in order to approximate the value of a company. Technical analysis, on the other hand, pays no attention to the value of a stock and cares more about price movements based on general market psychology and historical trends.

There are numerous charting indicators available and over time I will attempt to discuss and educate our readers on these types of indicators and how to read them for important data. However, for the scope of today's article, I simply wanted to introduce our readers to the basics of technical analysis and how it can be helpful when completing due diligence on investment or trading opportunities. If you understand the benefits and limitations of technical analysis, it can give you a new set of tools or skills that will enable you to be a better trader or investor.

Technical analysis can be defined as a method of evaluating future security prices and market directions based on statistical analysis of variables such as trading volume, price changes, trends, patterns, and formations in charts. These formations within the charts are, as believed by technical analysts, said to be in large part dictated by the psychological makeup of the market.

Through the use of charting, analysts attempt to explain the supply and demand of a security and help in determining the emotions of those in the market. Technical analysis is based on the basic theory that the price of a stock reflects everything that could or has affected a stock. Therefore, fundamental factors as well as economic factors like the overall psychology of the market are all priced into the stock, which leaves only the analysis of supply and demand in predicting the price movement of the forecasted stock.

Analysts believe that future prices are dictated by previously established trends, attributing the repetitive nature of these trends to the basic makeup of the markets psychology. They believe that market participants tend to react in common ways to events within the market, therefore through the use of technical charting, patterns can be used to analyze price movements and understand these trends.

Jennifer Mycock & Branden Moskwa of Tradeopolis.com

Tradeopolis.com, your stock market trading and stock investing resource, with access to articles on Stock market trading and stock investing. Penny stocks to mutual fund investing, tips and secrets and all the latest hot press releases.

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Becoming Wealthy with Stock Market Investing

The question of whether or not you can get rich investing in the stock market is a common one. While such an endeavor can make you rich, there is no sure fire way of making sure that this happens. In other words, the answer to the question "Can you get rich with stock market investing" is both yes and no. In fact, you will need a lot of skill and some luck if you are hoping to get rich this way.

The market fluctuates on a daily basis. You need strong investing skills in order to stockstackup.com" title="daytrading">daytrading.stockstackup.com" title="stockstackup.com" title="make money">make money stockstackup.com" title="day trading">day trading">make money day trading. In other words, you cannot simply buy some stock and hope that it will make you rich. Instead, you need to learn which are best, how to read trends, and when to buy and sell. All of these skills will come with experience. It is important for you to invest with patience when you are new to the market so that you can gain experience and maximize your future profits.

Luck also plays a huge role in profiting from this method. For instance, purchasing stock at a low price and then having it explode shortly thereafter will surely pay you a lot of money. But there is only very few stocks that can do that and those are hard to find for someone new in the game and no access to inside information. Simply put, there are some people who always seem to buy the stocks that grow and grow but it will take time and effort before you can become one of them.

There is no denying that you can get rich by investing in the stock market. However, just as the rewards are high so are the risks. Starting slowly and increasing your investments over time as you learn more can minimize the risks and increase your chances of a large payoff. The bottom line is that not everybody will make millions day trading. But at the same time, maybe you will be the next one to hit it big!

Learn more about stock market investing and money management at mandvice.com. Our experts want to help you succeed in your financial endeavors.

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Getting Started in The Stock Market - How Much Should You Invest & With Who?

Thinking about investing in the stock market? Not sure where to start? Here is a step by step guide to getting started in the stock market.

Step One: Evaluate Your Financial Situation

Before getting started in the stock market, it is important to determine whether or not you can really afford to invest in stocks. Start by looking at both your savings and your debts. If you have credit card debt or an auto loan, it would make no sense to invest in the stock market. The average annual stock market return is seven percent. If the interest rate you pay on a credit card or auto loan is any higher than that, you will be much better off paying down your debt versus investing in stocks.

Step Two: Decide What to Invest In

The next step involves deciding which stocks to invest in. You have two main options: straight out stocks or mutual funds. Stocks are shares of ownership in a company. A mutual fund is pooled money from a large group of investors that is invested in stocks, bonds, and other securities. Mutual funds are often the best choice for beginning investors because they are managed by someone else and are easy to invest in. Whatever investment option you choose, be sure to research your picks before you buy.

Step Three: Decide How Much to Invest

When you have chosen your investment vehicle, the final step is deciding how much to invest. A good rule of thumb is to not invest any more than you can reasonably afford to lose. No stock pick is guaranteed, which means it is just as easy to lose money as it is to make money. It is also important to think about diversification. Spreading around the money you can afford to invest is the safest way to get started in the stock market.

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Learning All About the Stock Market With a Free Online Stock Market Game

Learning how to help your money work for you in with stocks can be very confusing. Many people would like to leverage their extra money but they are scared to take the first leap. If you want to learn about trading without all the risk, then you should try a free stockstackup.com" title="stock market">stock market game. These games offer you up to $100,000 dollars to trade with in a fake market. The benefit to this type of game is that it is just like the real thing only the money is not real. Playing these games is the perfect way to learn how to invest without any risk to you.

There are many terms used that the average person would not understand. For instance, buying long or buying short. When you play a free stockstackup.com" title="stock market">stock market game, you can learn these terms and see them in action. The Wall Street Survivor is a game that is absolutely free to sign up for and you can learn everything there is to know about the market and how it works. There are many different sections where you can trade, do research and even talk to members all for free.

Another benefit to a free stockstackup.com" title="stock market">stock market game, is that you can win cash and prizes. If you do well, you earn points and these points can be used for prizes. They also have incentives for people when they accomplish a task or beat other players. Doing well in this pretend world of trading could give you the courage to try trading your own money. Once you have the understanding of how the stock market works, you then can take that leap and make some real money in the real world.

It is very common for people to be hesitant when they are putting money on the line. You never know how an investment will pan out and if it will be worth the risk. Playing a free game is the best way to learn about the stock market and have some fun. Some may say that it is not the same because you are not risking real money but learning about the stock market through buying and trading fake money is a good way to start. Try one of these free stock market games and you will be surprised how much fun you will have and maybe even win some cash or prizes in the process.

Find out more about this Online Stock Market Game in my Wall Street Survivor Review.

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Market Plunges

The frequent fall (or downward trend) in the price of stocks is referred to as a Stock Market plunge. The general public sentiment is that in order to avoid Stock Market fluctuations and risks, it is better not to step into the market, while the stockstackup.com" title="day trader">day traders' policy is that the best way to deal with the risks involved in the Stock Market is to get in and get out of it quickly. We have plenty of advice on the Stock Market.

The change in the stock price is unpredictable. Sometimes it touches the sky, while at times an investor feels as if his investment is dumped in a pit. Despite long detailed tips given by television commentators, financial writers, analysts, and market strategists, investors find it very difficult to benefit from them as the tips often prove to be misleading. Many investors become a victim of serious depression due to the risks and losses they have to encounter.

There are a number of ways to survive in a down market. While it is tough enough to save oneself from some general losses, an investor can be secured against the losses that will make him completely disappear from the Stock Market forever. Some of the key tools to protect the capital invested in the Stock Market are given hereunder:

o Be alert on the existing and potential market scenario and make changes in your stockstackup.com" title="investments">investments according to it. Be cautious before it is too late. Do not wait for the extreme to happen in the fluctuating market.
o Sell your stocks instantly if you are on the margin position. When your position is on the margin, it may become even worse. So, it is suggested to save your cash for a better opportunity after the market has stabilized.
o If it is essential for you to stay in the market, just rotate your portfolio. That is, buy safer and defensive stocks. The benefit is that those stocks have regular and stable income streams and are not much affected by the market scenario.
o Don't run for growth stock. Such stocks are extreme in nature, that is, either too profitable or too adverse, thus, increasing the risk factor.
o You will always be tempted to buy more stock under the down market condition as they are available at cheap rate. But it is advisable to invest in the market at a higher price to avoid any downside risk. Some stocks take many years to become stable again.

It is better to seek advice than to assume the conditions individually. It will help you a lot in researching and understanding the market criteria and deciding over the required steps to be taken in order to avoid risks.

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The Stock Market Explained

So, understanding the stock market...OK...what the heck is the stock market anyways?

The basic function of the stock market is to provide capital resources for corporations that seek capital to expand their operations and finance their growth.

If you make your money available to theses companies, you help them expand and prosper.

Companies that issue stock shares to the public are considered "publicly held" or "publicly traded" companies. Stock shares represents ownership of a corporation. As a shareholder, an investor owns a portion of the company's assets and profits.

With ownership comes risk and a shareholder assume the primary risk if a business does poorly. However, they also stand to make the greatest return if it succeeds. If he is smart, the shareholder would be wise to be understanding the stock market too.

When an entrepreneur starts a company, he often looks to family and friends for start-up capital. As the company grows, it will need more money, or in other words capital. Those who survive those tough early years, when most businesses fail, will look for a bank loan.

Loans carry high cash costs, in the form of interest payments. Eventually, if the company grows enough, its owners may choose to issue stock shares in the public markets. Understanding the stock market is very important to know for these entrepreneurs.

When you hear that a company is "going public", it means that the company is issuing shares of ownership for sale in the public marketplace. This process takes place during the initial public offering, or IPO.

The IPO is a first-time offering of stock for sale to the general public. The IPO process involves a number of people in addition to the company owners, and can be a rather complex undertaking. The company itself must be clear in understanding the stock market.

To go public and issue an IPO, the company must use and find an Investment Banking firm that is willing to underwrite the public offering. The Investment Banking firm, or underwriter, will do their best to sell the shares. They may reserve the right to sell the offering on an all or none basis, which means that if they cannot find buyers for all the shares to be issued, they may call off the entire offering.

The underwriter's profit in this case is made by a commission charged for selling the stock. If the underwriter agrees to a firm commitment to sell the entire offering, usually the first move is to buy all the shares that are going to be publicly offered at an agreed-upon price.

The underwriter then attempts to sell those shares to the public for a higher price, thus profiting from the transaction.

Stock Classifications

Stock Types There are two classifications of stock: Common and Preferred.

Common stock is usually what is issued to the general public. The term common Stock doesn't carry any negative connotations, but rather indicates that it is the "standard" stock the company has offered. Common shareholders have voting rights.

And as the word suggests, "preferred" stock has certain advantages over common stock. First, preferred shareholders are paid dividends before common shareholders. And if a company isn't doing well, the Common stock dividend is eliminated first.

Second, is if a company goes out of business, the owners of preferred shares have prior claim to any assets that remain when the company is dissolved and after bond holders and other creditors have been paid. Owners of common stock are the last in line to pick up the pieces of the fallen corporation.

There are disadvantages to owning preferred shares. Preferred shares have no voting rights. Also, the price of preferred shares tends to rise more slowly that the price of common shares.

As owners, common shareholders elect a corporation's Board Of Directors. The board of directors is a group of individuals, which are responsible for managing the affairs and growth of the corporation. The power of the board usually extends beyond that of the founder of the company.

The power resides in this board because the board is in the position of representing the shareholders as a group. This board must be educated in understanding the stock market.

Normally, owning one share of common stock gives you the power of one vote. If you have control a large number of shares, you will have more influence on the outcome of elections.

At worst, common shareholders can lose their entire investment if their company fails. In such a case, a company may be sold or liquidated and its remaining assets distributed among creditors, such as banks and bondholders. Shareholders would receive proceeds only after theses more senior claims are satisfied.

In order to stockstackup.com" title="make money">make money, the individual shareholder must sell his shares back to onto the market, through a Stock Exchange and their Stock Brokers.

StockMarket-Coach.com cares a great deal about you. Our aim is to provide the best stock advice with a friendly and positive attitude to keep you on the road to trading success.

StockMarket-Coach's mission is to provide a program of sound investing advice, education, and support that helps create successful lifetime stock investors. By doing the appropriate investment research and therefore becoming a confident, knowledgeable stock investor, you as a stock trader is empowered to build better financial futures for yourself and your family.

Peace and Abundance!

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Currency Market Trading Tips

I'm going to share with you my stockstackup.com" title="currency">currency market trading tips, that should help you increase your bottom line. This is a great market to start into because you can make a profitable second income from the comfort of your own home.

The first tip I want to give you is to get you into the mindset of the cold and calculated person. When you're trading, this is the type of person you must become. This person makes trades on numbers. He does the analysis, he crunches the numbers and he determines if that is a good move. The cold and calculated person is not emotional. Emotional people make moves on gut feelings. They get stressed out and frustrated. You need to understand that the emotional person is a person acting like a gambler. They're making decisions not based on a formula to profit, but a feeling that it will "just happen". Don't be emotional, be cold and calculated.

The next tip I want to give maybe a little hard for some people, but you need to become confident. If you're into stockstackup.com" title="currency">currency trading, you're now your own boss. You make your own decisions. The quality of decisions rests on your shoulders. You need to be confident in your decisions. Any lack confidence will reflect in hesitation and early exits. Hesitations are pretty obvious. You'll miss out on great opportunities. Early exits are the people that get uneasy after a trade and exit before they've really given a chance for the trade to perform. You don't want to be like that. Act as a confident person.

Lastly, I want you to start simplifying your work. The more simple things are, the more likely you're to complete them, do it correctly and execute it again in the future. Simplicity is the key to success because it requires no thought, just action.

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How to Play the Stock Market For Quick Profits

The stock market is one the most profitable investment venues, if and when you know how to play it to your advantage. There are many ways to do so, of which the following tips are just a few.

Buy Low, Sell High

This is the first edict of making a killing at the stock market, which cannot be overemphasized for both novice and expert traders alike. Basically, this means that you have to stockstackup.com" title="buy stock">buy stocks at the lowest price, usually when the industry sector or market as a whole is down, and then sell the same stocks, when the company recovers from its slump. Of course, choosing the stocks with the best chances for recovery is an art in itself. For most investors, however, stocks in the consumer staples, alcohol, pharmaceutical and electric industries are stable sources of investments, no matter the state of the national economy.

Entry and Exit Plan

The second edict of successful stock investors is to always formulate and follow your entry and exit plan. Basically, you set limits on how much you can profit from a trade and seize the opportunity when it comes up as well as how much you can afford to lose and cut your losses. For example, if your profit limit is a thousand dollars on a few shares of a company, then sell it. If your loss limit is half the amount of your profit ceiling, then sell the stocks before it slides down any lower.

Ask The Professionals

There is no shame in asking for professional advice especially when your hard-earned investment capital is at stake. Professional help can come in many forms and it is up to you to choose the best one to suit your needs. Or better yet, use all of them for optimal results. First, you can read books written by successful investors, which will give you insights on the intricacies of the stock market. Second, you have the services of professional stockbrokers on your side especially if you enroll in an online trading platform. Third, you can look for a mentor to teach you the ways of the stock market on a more personal basis.

Use Your Head

The stock market will move up or down. Wall Street executives and company management will make their moves. The forces affecting stocks in general will move in many directions. All throughout these movements, you must not fall into the trap of thinking that it has something to do with you on a personal basis. As such, it pays to always make your decisions based on informed judgment that are, in turn, shaped by the savvy use of technical investment tools. No matter what happens, never use your emotions to make your decisions for you, least of all greed.

You must always do your research about the financial statements, organizational structures and future plans of the company you are planning to invest your money in. After all, before you can make a profit in trading stocks, you must know how to choose the right stocks in the first place. Visit http://www.pennystocktradez.com/ to learn more.

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Three Things You Must Know About The Stock Market Before Investing

An Introduction to the Stock Market

What is the Stock Market?

The stock market is a commercial platform for people and organizations to trade company stocks and derivatives of stocks. Similar trading platforms are the bond market and the commodities market. The bond market is an over-the-counter environment that deals with trading in bonds, while commodities are sold in the commodities market. stocks are listed on stock exchanges. These are corporations or mutual fund organizations where buyers and sellers of stocks meet and conduct transactions. Stock exchanges in the US include the New York Stock Exchange (NYSE), the NASDAQ, the Amex and other regional exchanges such as the Pink Sheets and the OTCBB. Exchanges in Europe include the Paris Bourse, which is now officially a part of Euronext, the Deutsch Bourse and the London Stock Exchange.

What is the Size of the Global Stock Market?

The size of the global stock market is valued at $22.5 trillion and is half the size of the global bond market, valued at $45 trillion. The worldwide market for derivatives stands at an imposing $300 trillion and major US banks comprise a third of this figure, at $100 trillion. The difference between the market for derivatives and the stock market is that the latter refers to actual value, while the former refers to notional outstanding amounts.

Buying in the Stock Market

Most people tend to think that a well-priced stock is a good buy. There are others who rely on instinct while buying stock. However, these are not always the best parameters to base an investment on and remember that buying stock is an investment. You need to know that the stock you are investing money in is reliable and is actually as good as the name or the price it carries.

While price may not be a strong clinching factor if you are looking at buying stock as a long-term investment option, it is still a good idea to be sure about what you are investing in. That's why you must do research on the company you're investing in, as well as the company you're investing through, whether that's a mutual fund or through a broker.

One key to remember is NEVER to go with a load-bearing mutual fund. Paying a 'load' means you pay an up-front sales fee, plus a commission on any of your earnings to the mutual fund. There is no reason to pay that fee because there are plenty of great mutual funds out there that are 'no load' funds.

Three Things to Know Before You Start Buying

There are three things you should know when you are thinking of purchasing at the stock market:

a. What the company you are planning to invest your money in does. You are, after all, going to part with your money when you buy stock in a company. Therefore, it is in your best interest to know about the company you are planning to invest in.

b. The growth curve of the company. This is very important, as this will give you an idea about what shape your money would be in over a period of, say, five years. You should know what the previous and existing revenue and income of the company is. This gives you a fair idea about the financial health of the company, which in turn will be a direct pointer to whether your money will be safe here or not.

c. How much you are willing to pay. This is another critical question. Even after you find that the company you are planning to invest in has a name in the market and is doing well financially, you still need to know why you're investing. If you're looking for a long-term investment, you'll probably diversify your money by investing some here and some there. In case one sector does poorly, the other sectors you've invested in can keep you from losing everything. If you can handle risk and you're looking for fast cash - it's possible but not recommended to look into day trading. The better idea is to be safe and be knowledgeable.

The stock market doesn't have to be something that scares you or seems like a foreign language. Put in a little bit of research because what else in your life deserves research if not your money? Ideally, in time, you'll be able to invest your own money where YOU see fit, and not take so much 'wise advice' from everyone else who sells their opinion. Be wise yourself by educating yourself. Then you can make the stock market work for you.

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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.

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Trend Following in the Stock Market

Trend is the general direction of the price in the stock market. Trend is determined by comparing the price and the average volume of trade in the market. The price and volume have a close relation in determining the trend in the market. There are predominant two different trends that are seen in the stock market - the bullish trend and the bearish trend. Then there are some intermediate trends that also exist in the share market. When there are more buyers in the market and the overall market condition is on the higher side, it is the bullish trend. On the other hand, when there are more numbers of sellers in the market, and the buyers' confidence is low, the market is said to be in a bearish side. These two are the most common trend in the market and the price index and volume of trading are the two most crucial parameters for deciding the overall market trend.

As an investor you can effectively gain from following the trend in the market. In fact there is a group of investors who do the trend trading, i.e. buy and sell the stock by trend following in the stock market. This technique is better way of investing in stock market if your objective is to wealth building from stock market. If you are trading in stocks for income then the trend trading is not really a good option for you. There are so many benefits of doing trend trading and they are as follows,

Trend trading is the easiest and safest way of investing in the stocks. All you need to do is identify the trend and make your investments and then close the deal when the trend begins to reverse. That means when the market is bearish and prices of the stocks are falling on a daily basis, select a few stocks that are fundamentally in good position and invest in them. Wait for the trend to reverse and whenever the market is rising and hits the highest level, sell off those stocks and get the profit. To do that successfully you need to have a good research and technical analysis of the stocks. That will help you to determine the entry and exit point of the stocks that is very much important for trading according to the market trend. The technical analysis and fundamental study of the stock together will help you to identify the Undervalued Stocks in the bearish market as that will most likely give you maximum return when the market trend reverses.

But following the trend in the stock market is only profitable when you are investing in the stock market for long term. To get the benefit from the trend reversals, you have to wait for the right opportunity and if you can do that you can expect to get benefited from 60% to 80% of the intermediate price change. So, keep an eye on the market trend, identify the right stocks and invest in those stocks for sure profit.

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Market News

Interpreting Market News

Market news is like a long conversation between two good friends. These friends have been close for a long time and talk about everything. They discuss events and share secrets. Talking on the phone, sending email or chatting face to face doesn't matter; they won't end the conversation until they've said everything they want to say. Now you're asking, "How could Wall Street news be anything like this analogy?" Actually it is quite simple. From open to close, five days a week, the stock market news is your dear friend, telling you everything that is happening in its life as it happens. How you receive all that your "friend" tells you and how you react to it will go a long way to predicting your success investing in the stock market.

Best Covered Event in the World

More than any movie, more than any sporting event, the business on Wall Street is covered more closely than any single event in the world. Tickers are continuously displaying the market volumes and stockstackup.com" title="stock prices">stock prices for each stock on each exchange. In every newscast for every station on television, a summary of the current market news is given. Newspapers are written to report the daily progress of the market and to offer an analysis of yesterday's results and today's stockstackup.com" title="hot stocks">hot stocks. Magazines are written to help investors understand the stock market and entire websites such as the Candlestick Forum are sending out stock market newsletters dedicated to teaching investors how to successfully invest.

Listening to Market News

You understand how the resources available to you work but you're unsure of how the market news "talks" to you? Let's look at an example from April 2, 2007. Early in the day on that particular Monday, the market news showed a slight downturn, pushed down by reports that US manufacturing had dropped off more than was predicted for March. While the report from the Institute for Supply Management showed the manufacturing index reading of 50.9 nearly reached the predicted 52.0, investors were hesitant as the market news related that the market indexes had opened higher but quickly dropped.

In addition to this news, there were reports of struggling stocks in the first quarter that contributed to the market having its weakest performance in nearly two years. The reaction to this market news erased the early gains and by midday had created a loss, reflecting investor sentiment that the economy was indeed slowing.

But as frequently happens on Wall Street, the afternoon brought different market news and different results. As news of several high-profile acquisitions was announced and started creating hot stocks, the market news changed and the outlook began to improve. The early drop-off was quickly recovered and the market news reported an overall gain for the day.

How to Use Market News

How should you interpret market news and what advantage can you gain from it? This news can help successful traders to identify trends in the market. If the market news is good, or bad, a slight bubble can occur that offers an investor a chance to look for quick gains as the market drops, then rises again.

The Most Helpful Tool

What is the best way for an investor to interpret market news? There is a tool available to the investor for not only interpreting the market news but the patterns and stock market trends of individual stocks and commodities; this tool is Japanese Candlesticks. Candlestick stock trading is a powerful stock trading system that can help the investor identify trends in the market news faster than is possible with other methods of charting and analysis.

Conclusion

Market news can be your friend, helping you to understand daily events and giving you the opportunity to analyze future trends and investment options. Using Japanese Candlestick signals can help an investor take the news from this life-long friend and profit from it.

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The Long Term Stock Market Return Factors

In his latest book Common Sense on Mutual Funds (Fully Updated 10th Anniversary Edition) John Bogle publishes a remarkable table.

He posts ten year nominal stock market returns for 1927 to 2009.

Then he posts the total (for the same periods) of the initial dividend yield, the annual earning growth (of operating income) and the change in the Price/Earnings ratio (P/E ratio).

If you add the initial dividend yield to the average earning growth and then add that to the change in the P/E ratio, the total almost exactly matches the real total return for the period.

Now, two-thirds of that makes common sense. Part of the total return is dividends, so there they are. And the change in P/E is a measure of the stock market's changes in sentiment.

But the annual earnings growth of the company is not usually factored in.

So Bogle's conclusion from the table is that the long term stock market results come from the fundamentals of dividends paid to investors and a company's annual earnings growth -- not from what he calls "speculation," the tendency of investors to buy a stock on the hope a greater fool with raise the price.

However, the more I think about it, the more I have to disagree with him, reluctant as I am.

These factors are more interrelated than he describes, because the P/E ratio -- obviously contains the company's earnings. Thus, these factors are interrelated.

The change in P/E is a measure of the overall market sentiment regarding that company. A high P/E means that the market began the period giving the company a high value.

In the following ten years, the company's earning grew at their average rate. If the market's sentiment turned negative, then the closing P/E ratio will be lower, and this will reduce the overall return.

Sometimes the reverse will be true. The "speculation" is still there -- embedded in the change of P/E ratio.

The general conclusion is that it's better to buy a stock when the P/E is low than when it's high, but that's scarcely a new revelation. Value investors have said that since at least Ben Graham.

The only way to escape from the tyranny of the P/E ratio and market sentiment (which can change a lot no matter whether the company's fundamentals do), is to invest only in stocks that pay a dividend.

That way, you receive a real, spendable cash return no matter what happens to the P/E ratio.

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Learning the Stock Market Game-How to Day Trade Stocks Online-Learn to Trade Stocks

These days there can be a lot of ways to make extra money. Buying and selling real estate, getting a second job or opening up a brick and mortar business operation are among the most popular options.

But many of those traditional business options might require a heavy upfront investment or start up capital on your part, as well as paying an increasingly high interest rate on any loans.

Day trading stocks online on the other hand can offer you freedom and easy liquidation of your funds. You don't have to tie up your initial seed capital for months or years. You can buy and sell stocks on the same day and put your potential profits back into your cash account with out making a trip to the bank and waiting in a long line.

Another good possibility of day trading is that You don't need a lot of money to start stockstackup.com" title="making money">making money, unlike the majority of conventional businesses.

But here is the first thing you MUST DO if you want to aspire success in day trading : You have to PREPARE YOUR SELF, just like you would in order to accomplish goals in other areas of your life.

Day trading is similar to any other business operation in the sense that every successful venture owes its success to the method used to conduct its business. In other words your day trading results depend in large part on your strategies and method. So never attempt to trade stocks with out using and practicing clear strategies on how to buy and sell stocks.

At the end of the day online stock trading is all about picking the best stock opportunities and following your buy and sell signals with ease and simplicity. Once you learn to master your trading decisions, you can aspire to produce consistent profitable results.

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How To Invest In Gold - Stock Market

The diversified portfolio has a small position in the gold market. For some investing in such market means holding its coins. Some speculators buy the contact futures on the commodity exchange. Future contracts are risky because you are betting that the price of the commodity will go higher in the future. The contract requires a relatively small up front payment, but there can be daily fluctuations that require you have funds to back the dips in the price of daily increases.

The reasons investors have been interested in this commodity is that the old reasoning was that if the stock market was down the commodity market was generally up. This reasoning has become a possibility, but not an axiom of the current marketplace. The weakness in the dollar generally brings a surge in the price. The current price is in the range of $670. Prices have fluctuated within a range of $664 and the current high of $672. Traders think this product could easily go as high as $1,000 an ounce.

Investing in such commodity stocks and precious metal index funds can be purchased through a stock broker. A stock broker specializing in this area is very important because the investment needs savvy investment advice. Most of the larger brokerage houses have individuals that are specialized in the area of commodities and precious metal stocks.

There are certain international commodity stocks that are noteworthy. A Canadian based international player in this type of commodity market is Agnico-Eagle Mines. It trades on the New York Stock Exchange and the Toronto Stock Exchange under the stock ticker AEM. The stock is also sold on the Frankfurt Stock Exchange. This company has more than thirty year history in the production of this kind of commodity Since the year 1970s AEM has produced over four million ounces. The company is international and has operations in Canada, United States, Mexico, Sweden and Finland.

Other noteworthy of such stocks include; Barrick Gold Corp, Goldcorp Inc., Kinross Gold Corp., and Newmont Mining. All of these commodity stocks are currently trading on the upside, but it is advisable for all investors to make sure these stocks fit your investment risk potential.

In recent years the price of this commodity has been as low as the $450 an ounce range. Since the late 1970s it has made huge profits for holders of this commodity. The key to owning it, is to know the various resistance points and to assess the global market for the use of such. It is used primarily in jewelry manufacturing and other types of manufacturing. Currently in India there is a small slow down in the use of this commodity for jewelry making. The same applies to a degree in China. Whether it is enough of a slow down to effect the price of this commodity is uncertain.

Investors who trade in such commodity should seek the advice of an analyst that can factor in all the various aspects that affect the price of this commodity. If you own it as a hedge against a weak dollar you should look for any strengthening in the dollar. The important thing to remember is to guide your investment in it to a level that you are comfortable. If you bought spot of this commodity at $600 an ounce, you might consider a rise to $720 a good profit. The rise to $1,000 an ounce may be bumpy and there is no telling when it will reach that level if it does as speculators have gambled.

There are numerous mining stocks of this product in the market and if you are interested in a small investment you can find these stocks in the $5 to $12 range. The smaller mining stocks of this product do carry a risk because a great deal of overhead goes into making a mining company profitable.

The range of risk and amount you decide to invest in this product is a personal choice. It is always advisable to seek the expert advice of a stock expert or commodity expert before leaping into this market. Another sage piece of advice I learned is to trust my sense of cashing out before the price drops significantly due to outside pressures.

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Which Animals Play the Stock Market? - The Bulls and Bears of Wall Street

Once, Manhattan used to be an island of agricultural land. However it has since evolved into the city we know today, the financial district, being habitated by a different kind of bull, bear, sheep and hog. Their identities rather different, but behaviour is the same.

The exchange is of no relevance for them, as the four lend their character accordingly. The actions of those in the pit assimilates to the bear, bull, hog or sheep. It's all uncannily familiar.

When a bull is fighting, he uses his horns to make upward assaults, so being a bull means your judgment is for a rise in stock price. You go long, or buy.

When a bear is fighting, they use their huge paws in downwards motion, so being a bear, your judgment is the opposite of the bull market. You look to sell, or go short, your stock.

So how do we relate with the hogs? This is when inexperienced, mostly new traders play risky trades and, often, based upon a so-called strong tip, they place all the funds of their account onto one trade, only for it to ultimately go in the wrong direction for them. It's called being greedy, just like hogs are.

It pays to learn, study, and become knowledgeable about the markets, rather than following the opinions of any one else. Sheep follow the crowd but I'm guessing you don't want to be the one who gets you account shorn bare.

The bulls and bears never let up from one another for a moment, so the market is always being pulled from pillar to post. So who decides the actions of these bulls and bears, who controls them. We do, that is, everyone who trades. It's psychological. Needless to say, many buyers create a bull market, many sellers, create a bear market. In choppy conditions, the wise step aside and merely observe.

Yes, sometimes there's a stand off, so neither side has the upper hand. The experienced and knowledgeable will not entertain a position in these conditions. They have honed their trading prowess and become highly disciplined. These are the traits and mindset vital to good trading. Note I say good trading, not stockstackup.com" title="making money">making money. If you jump in in these conditions, you demonstrate greed. Remember the hogs.

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