Reading Graphs!

Reading charts is an difficult task that can take years to master. Why do we read charts? Because by reading charts we can determine what the stock is doing.

That is really the whole point.

And this is what separates the beginner trader from the pro's There are five factors on a chart that make it worthy of trading. By checking these factors we can determine with certainty which direction a stock will go.

There five questions that you want to ask yourself when you look at a stock chart. Here they are...

• What stage is this stock in?
• Is this stock in and uptrend or a downtrend?
• Is the stock at the beginning, middle, or end of the trend?
• How strong is the trend?
• Where are the trend lines?
• I know it seems like a lot of information to try and keep track of but all of the above questions are essential to chart reading mastery! Now, copy and print out that list of questions and keep it handy next to your computer. Make several copies so that you can check off and make notes as you analyze your next chart.

Got it memorized? Now you won't forget anything  when it's time to watch a chart for your  trade.  look for some of the most basic things on a chart. I've done it. 

now go through the list one by one to make sure that you know how to answer the questions correctly. with practice you will not even need to think about these things, it will become second nature

                                 Things to know part 4!

 

For a new investor, the stock market can feel like gambling, Randomly choose a stock based on instinct and chatter! If the price of your stock goes up you win! If it drops, you lose!

Not exactly. But sadly that's how many new investors think of the stock market; investments that will either brings huge monetary gains or devastating losses. With that attitude, the stock market is as good a form of investment as a game of blackjack! But the more you learn about stocks, and the more you understand the true nature of stock market investment  the better and smarter you'll  get. The stock market can be scary but a little information can help ease you. Let's start with some basic definitions. A share of stock is literally a share in the ownership of a company. When you buy a share of stock, you're entitled to a fraction of the earnings of that company. Assets include everything the company owns (equipment, trademarks), and earnings are all of the money the company brings in from selling its products and services.

Why would a company want to share its assets and earnings with the public? Because it needs the money! Companies only have two ways to raise money to cover start-up costs or expand the business… It can either borrow it. or sell stock also known as equity financing

The disadvantage of borrowing money is that the company has to pay back the loan with interest. By selling stock the company gets money with no strings attached. There is no interest to pay and no requirement to even pay the money back at all. financing distributes the risk of doing business among a large pool of investors If the company fails, the founders don't lose all of their money.

This will be the end of things to know for now! 

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                                  Things to know part 3

Investing in the stock market is probably the best way to accumulate long term wealth. there are some things you need to know for investment success. This part is written to help the  investor get off to a good start for long term success in investing in the stock market.

Stock Market for Beginners

some basic things one must consider before starting to invest in the stock market… Investing in the stock market is a great way to enjoy long term profit growth! but it is also a place where you can lose all of your money if you don't know what you are doing and why you are doing it.

Stock Market Trading Tips

Don’t invest in the stock market with tips. You need a sound investment strategy that has stood above the best. The best way to lose money in the market is to invest in rumors. Here are a few things that will help you become a successful investor.

Stock Market Investing Basics

What do I want to buy?

When do I want to buy it?

When do I want to sell it?

These questions can best be answered by having a trading system specifically designed to get you into the best investments, but importantly to get you out at the best time as well.

How to Start Investing in the Stock Market

Once you have decided that you want to start investing, you will need to set up an account with a stock broker. There are full service brokers and discount brokers.

Stock Investing Newsletters!

Sign up for a stock investing newsletter! They can provide some tips for you also.

                               Part 2. Things to know.

                     Preferred stocks

Despite its name, preferred stock has fewer rights than common stock, except in one important area – dividends. Companies that issue preferred stocks usually pay consistent dividends and preferred stock has first call on dividends over common stock.

Investors buy preferred stock for its current income from dividends, so look for companies that make big profits to use preferred stock to return some of those profits via dividends.

Liquidity!

Another benefit of common stocks is that they are highly liquid for the most part. Small companies may not trade frequently  but most of the larger companies trade daily creating an opportunity to buy or sell shares.

Thanks to the stock markets, you can buy or sell shares of most publicly traded companies almost any day the markets are open.

1. If you're basing your trading decisions on the same contexts and conclusions as everyone else, it's difficult to develop much of an edge.

2. Unless it's completely manipulated, the market generally doesn't reward "what everyone knows," i.e. the consensus, for long.

3. "What everyone knows" often includes trends and targets. For example, everyone now knows gold is in a bear market and the next technical target is $1,550 - $1,900. 

Investing in the stock market is probably the best way to accumulate long term wealth. However, there are some things you need to know for investment success. This module is designed to help the novice investor get off to a good start for long term success in investing in the stock market.

Stock Market for Beginners

Here are some basic factors one must know before starting to invest in the stock market. Investing in the stock market is a great way to enjoy  profit growth! but... it is also a place where you can lose substantial money if you don't know what you are doing

You need a good investment strategy that has stood strong. The best way to lose money in the market is to invest in tips or rumors. 

 

                          Things to know about trading

50% Of U.S. Households Invest In The Stock Market

Individuals invest in the stock market directly 401k's IRA's, etc.

It is mainly the mutual funds, who move the market and cause individual stocks to go up and down. Mutual funds are the 800-pound gorillas of the stock market at the end of 2003, mutal funds held more than 1$ trillion dollars worth of stocks.

If investors have learned anything the last few years it's that even with the Dow Jones Average is comprised of only 15 selected stocks. there are more than 4500 different stocks listed on the major U.S. stock exchanges. That makes it possible that in a given time the Dow Jones Average may be flat or down

 Most people lose money by. lack of knowledge, lack of time and effort, lack of a good strategy that works

Can You Beat The Market'

Investing in stocks can be a very rewarding experience, financially and If you do it right. With the right knowledge, and the right strategy, an individual investor can do extremely well in today's stock market,

Common stock represents the majority of stock held by the public. It has voting rights, along with the right to share in dividends.

When you hear or read about “stocks” being up or down, it always refers to common stock.

part 2 coming soon...

                            Some examples of good stocks

                     By ensuring that you’re restricting your search to only stocks that are cheap you are giving yourself a built in advantage as these stocks outperform the market.

But you dont want to just buy a bunch of cheap stocks with no regard to the underlying business fundamentals. you want to try to add some measure of quality to the good from the bad. These are the two most important metrics.

In addition to looking at those basic measures I like to glance at the following six quality measures very quickly when looking at a cheap stock.

What is the debt to equity ratio. check the balance sheet! Debt is not always bad but if the stock is cheap, it usually has some problems. Debt can encourage those problems.

What is the company’s returns on capital? I look at ROC  to determine quality. Consistent high returns without  much leverage indicates a durable advantage.

Some investors dont look at this but book value growth is one of the most entertaining measures to look at. A company that is steady growing their net worth over time must be doing something right. It doesn’t necessarily indicate a advantage but it’s deffinately a positive sign of quality.

What does 10-year sales growth look like? I use Morningstar to glance at 10-15 years worth of sales history.

What is the gross profit margin? Buffett says that a company with consistent gross margins likely has a competitive advantage.

             

                              Beginner Tips Part 2

1) Stocks aren't just pieces of paper, their your life!

When you buy a share of stock, you are taking a share of ownership in a company.

2) There are many different kinds of stocks out there

The most common ways to divide the market are by company size sector, and types of growth patterns. Investors may talk about stocks, energy vs. technology stocks, or growth vs. value stocks,

3) Stock prices track earnings from companies

 the behavior of the market is based on A lot of things over the long term though it is mainly company earnings that determine whether a stock's price will go up down.

4. Stocks are your best shot for getting a return or profit

well ahead of inflation and the return of bonds real estate and other savings vehicles. As a  outcome stocks are the best way to save money for goals like retirement.

5. Individual stocks are not the market. Dont invest in a single stock!

A good stock may go up even when the market is going down, while a bad stock can go down even when the market is strong!

                                     Some Beginner tips

                                   Here we go...

1. Investing is not a hobby. To big merchant banks it is a very competitive business. you should also treat it as a business. That means figuring out your  profit and loss

Once this thought pattern is established, it makes the whole process so much easier. " Once an answer has been established a clear course of action will present.

At first investing can feel like gambling and many beginners want to learn how to play the stock market thinking that they can understand the moves of the DOW. but the real skill starts to come as an investor takes it more serious.

2. Get some great investment management software. Why spend the time and effort trying to figure out the best ways to do things when solutions already exist!

 look to purchase two types of software. One will be for money management. This can be used for profit and loss and keeping track of the costs of stockbrokers and the like. The other will be used for tracking stock and fund prices and fundamental analysis and more.

Neither of these tools will turn you into a master but they will help to keep you organised and of your positions will become much simpler. It will also become easier to track the stock you want to buy. hunting out a good opportunity and a fitting price.

3. Get an education.  being able to understand the scoring system of the syetem can only help. There are hundreds of books about investing - you don't need to read them all but you probably should to read a few to enhance your knowledge.

This education really ought to include one of the daily papers that covers the movements on the stock exchang.  such as the Wall Street Journal. the investment bankers that you are competing against have Reuters subscriptions, while everyone else is watching CNN.

                                How Stock Trading Works

                      Brokers buy and sell stocks through an exchange. Often charging a commission to do so. A broker is  a person who is licensed to trade  through the Exchange. A broker is either on the trading floor or can make trades by phone or on his computer

An exchange is like a warehouse in which you can buy and sell stocks. A person or computer must match a buy order to a sell order. and vice versa. Some exchanges work like auctions on an trading floor and  match buyers to sellers electronically. Some examples of  stock exchanges are…

The New York Stock Exchange.

The NASDAQ.

The Tokyo Stock Exchange.

Worldwide Stock Exchanges has a list of major exchanges. Over-the-counter  stocks are not listed on a  exchange and you can look up information on them at the OTC Bulletin Board.

When you buy and sell stocks online you're using an online broker that  takes the place of a human broker. You still use money but instead of talking to someone about what to invest in you decide which stocks to trade and you request  trades yourself. Some  brokerages offer advice from live brokers and broker assisted trades as part of their service.

If you need a broker to help you with your trades, you'll need to choose a firm that offers that service

                                Advice On Trading Stocks

                                            1.)    Watch your trading style: Think hard about what kind of online stock you want to invest in. Would you want day trading where you close out a trade at the end of every day? Or short term trading where you hold a stock several days at a time? Perhaps you’re a weekly trader or a monthly trader. You can always change your mind so don’t be afraid to do so!

2.)    Select a broker that fits your trading style. Day brokers need access to your cellphone, email or any other high-speed device that can get them to you quickly. Weekly or monthly trades can use less interactive brokers. When it comes to the cost of brokers fees and other costs, day trading is the most expensive option.

3.)    Use a low risk high reward method: Stock trading is a risk-reward system. You have to be willing to INVEST to make money! A lot of people do a lot of damage to their account before learning how to win big. Though it might not be the most glamorous way to trade, risk management can help you avoid big time losses

4.)     Make sure your trading method applies for all markets: The stock market doesn’t just go up. It goes down a lot of times also. Sometimes for months or years on end. Use an online stock trading method that takes advantage of both down markets and up markets as you see fit.

5.)    Don’t walk into this market with a big head! Countless times ive seen people think they’re going to make money the first time they do it then get smacked down with minimal or no gain

 

                 My Success From Trading Stocks

            

                                   I was a teacher at a local highschool, a normal income, enough to live off of and enjoy my life as I saw fit. Until I started investing. Today my net worth is around 2.5 million, crazy, right? The thing I always looked for was when stocks would fall down to a peak low. Usually that is the best time to buy them because they cant go lower but if they rise your making the most bang for your buck. I contributed the maximum to both my IRA and my 401k and That's truly free money. no risk. I avoided tech companies as I really saw them as huge risks that can crash easily without any warning, take that advice! Its very easy to get lost in the stock market. Some general stocks that are relatively safe to invest in are…Building products, food and staples, and Insurance. All three of these things are used on a day to day basis and serve a very high demand.