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.