For most people, the stock market is a scary thought because they have seen the devastating effects it can have when things go wrong. Stock plummeted after Enron, and even when mergers are announced as with the case of Chase and Bank One, the stock market feels the effects. Even DuPont has seen its stock prices drop when negative information is publicized, so the stock market, for the most part, is a fickle entity.
How does a new investor avoid the pitfalls of the stock market? Research is the only way, and it’s no ironclad guarantee. That means before you invest, you adopt the habit or reading the NYSE and DOW reports in the daily newspapers as well as reading the business section of the newspaper for any reports that may affect the stock prices of a company you may be considering. Of course, sadly, utility companies are always making money, but they are doing it at the expense of consumers like you and me. For some people, investing in the electric or water company is the only place they feel safe, but with all of the mergers of electric companies, that isn’t even a very safe investment in the 21st Century.
A new investor needs to do some heavy reading and studying before investing in the stock market. This is not something that should be decided impulsively, but rather needs fully researched over time. In addition to following the current trends in the stock market, the potential investor needs to also research past trends, and be sure to research far enough in the previous years to ascertain that the company stock is stable for the most part. This requires, as an educated guess, at least five years worth of research, maybe more if time allows. For those who have been in the working force for a few years, the trend has been one of difficulties, and sometimes the most stable company has seen their stock plunge during times of recession or bad publicity.
In addition to checking the history of a company, and the stock market overall, a potential investor should check the trends of companies who have been involved in mergers to see how their stock fared before the merger was announced, afterwards, during acquisition, and after acquisition. After all, the potential for a company after a merger may be a negative one, so it’s important to know how the stockholders and potential investors saw the strength of the company. The price of a company’s stock is a measure of its strength in the economy, and without that, strength, the stockholders can force an unfriendly merger, whereby the stockholders take over the company.
Once you have decided the safest investment for you to make, you need to decide on a financial advisor or broker. It isn’t wise to try to make a direct buy because although it may be cheaper, the services of a broker will prevent or lessen the financial loss in the event of a drop in price. A broker can see the trend and advise you to sell your stock in a given corporation based on trends that are showing. Unless you have learned a great deal about the stock market, there is no way you, as a new investor, can predict these things. The price you pay a broker for managing your account is well worth the peace of mind you will have in knowing your financial interests are uppermost in the mind of your broker. Even with mutual funds, if you have any stocks in your portfolio, which most mutual funds investors do, it’s important to have a broker who can move those stocks around in the event of a downhill trend.
Tuesday, August 4, 2009
Stock Market Trading Software
Thousands of people every day trade on the worlds stock markets, with the majority now using software to aid them, but does it help them make more money?
This software is known as a ‘bot’, short for robot, but it is only ever as good as the user. If the user does not know how to trade successfully on his own in the first place then he is unlikely to get instant profit from a bot. New users have to understand that it will take weeks to learn how to use a bot correctly.
I use the ‘new’ bots on the block on a daily basis. Any professional trader should at least be aware of the existence of betting exchanges, and the fact they can turn over $Millions per horse race within a few minutes, and with the betting exchange allowing you to back (buy), and lay (sell) a horses odds, many new traders are springing up to take advantage of this with the use of betting bots. And the best thing is, you do not need any knowledge of the sport you are trading in. You can also trade on the majority of the worlds financial markets, such as the FTSE, NASDQ, etc, as well as currencies.
So are these new bots a license to print money? Depending on which one you use, as some are useless, and will see you lose money faster than if you were using a pin, but others stand out, and are put together by professional stock market traders. It is these bots that have the potential to make you money, and if handled correctly, plenty of it.
Most of the bots on sale focus on one aspect, whether it is trading, arbing, hedging or dutching, but there are a small number that focus on them all, and compared to the single function bots, are much better value for money. These multi-function bots allow you to find your niche in a competitive market, without emptying your bank balance.
It is also a misconception that you will start making a lot of money instantly. Even if the bot produced profits on a daily basis (which by the way, will never happen), you still have to limit trades to a fixed percentage of your betting bank, otherwise you will find yourself having no control over trading stakes. It is always best to start small, get the mistakes out of the way while it is cheap to do so, and when your stakes increase, you will have learnt enough from your mistakes to save money.
Some people click with trading straight away, others it can take weeks of staring at the graphs on the screen until the penny drops. Those that stick with it though, usually succeed, and a bot makes life so much easier.
So if you have the capabilities to profit from trading, then a betting bot may be for you, if you are looking for a quick buck, forget it.
This software is known as a ‘bot’, short for robot, but it is only ever as good as the user. If the user does not know how to trade successfully on his own in the first place then he is unlikely to get instant profit from a bot. New users have to understand that it will take weeks to learn how to use a bot correctly.
I use the ‘new’ bots on the block on a daily basis. Any professional trader should at least be aware of the existence of betting exchanges, and the fact they can turn over $Millions per horse race within a few minutes, and with the betting exchange allowing you to back (buy), and lay (sell) a horses odds, many new traders are springing up to take advantage of this with the use of betting bots. And the best thing is, you do not need any knowledge of the sport you are trading in. You can also trade on the majority of the worlds financial markets, such as the FTSE, NASDQ, etc, as well as currencies.
So are these new bots a license to print money? Depending on which one you use, as some are useless, and will see you lose money faster than if you were using a pin, but others stand out, and are put together by professional stock market traders. It is these bots that have the potential to make you money, and if handled correctly, plenty of it.
Most of the bots on sale focus on one aspect, whether it is trading, arbing, hedging or dutching, but there are a small number that focus on them all, and compared to the single function bots, are much better value for money. These multi-function bots allow you to find your niche in a competitive market, without emptying your bank balance.
It is also a misconception that you will start making a lot of money instantly. Even if the bot produced profits on a daily basis (which by the way, will never happen), you still have to limit trades to a fixed percentage of your betting bank, otherwise you will find yourself having no control over trading stakes. It is always best to start small, get the mistakes out of the way while it is cheap to do so, and when your stakes increase, you will have learnt enough from your mistakes to save money.
Some people click with trading straight away, others it can take weeks of staring at the graphs on the screen until the penny drops. Those that stick with it though, usually succeed, and a bot makes life so much easier.
So if you have the capabilities to profit from trading, then a betting bot may be for you, if you are looking for a quick buck, forget it.
Friday, July 24, 2009
Discount Stockbroker
Discount stockbrokers are stockbrokers who help carry a wide variety of business deals. Generally, they accept orders for stock, stock options and futures trading deals. They are known by different names such as discount commodity brokers, discount stockbrokers and discount real estate brokers. Compared to full-service brokers, discount stockbrokers buy and sell orders at a reduced commission.
Discount stockbrokers allow a person to buy "no-load" mutual funds at a reduced commission. Through an arrangement with a particular fund, free mutual funds are sometimes offered. Discount brokers will often provide (for a small fee) a free 1-page Standard & Poor's Stock report on the stocks you are requesting and a 5-10-page research report. Twenty-four hour telephone stock quotes services are also provided, allowing the person to build trades.
There are four types of discount brokerage firms, “full-service,” “discount,” “deep discount” and “computer or electronic.” Full-service discount brokers offer services that are identical to a full-service stockbroker. They own local branch offices for personal service, newsletters, a personal account representative and considerable literature. Discount firms carry out the same functions as that of the full-service discount firms. The only difference is they don’t have local branches. Their commissions are around 1/3rd the price of a full-service agent.
Deep discount stockbrokers are stock brokers who execute only stock and option trades. They have fixed commissions (flat fee) for any trade of any size. Computer or electronic brokers offer services similar to deep discount brokers. Their service is primarily aimed at computer users who trade via the internet.
Some discount stockbrokers, who cannot be clearly categorized, fall between "discount" and "deep discount." They cater to skilled, high-volume traders with high demands for quality service.
Discount stockbrokers allow a person to buy "no-load" mutual funds at a reduced commission. Through an arrangement with a particular fund, free mutual funds are sometimes offered. Discount brokers will often provide (for a small fee) a free 1-page Standard & Poor's Stock report on the stocks you are requesting and a 5-10-page research report. Twenty-four hour telephone stock quotes services are also provided, allowing the person to build trades.
There are four types of discount brokerage firms, “full-service,” “discount,” “deep discount” and “computer or electronic.” Full-service discount brokers offer services that are identical to a full-service stockbroker. They own local branch offices for personal service, newsletters, a personal account representative and considerable literature. Discount firms carry out the same functions as that of the full-service discount firms. The only difference is they don’t have local branches. Their commissions are around 1/3rd the price of a full-service agent.
Deep discount stockbrokers are stock brokers who execute only stock and option trades. They have fixed commissions (flat fee) for any trade of any size. Computer or electronic brokers offer services similar to deep discount brokers. Their service is primarily aimed at computer users who trade via the internet.
Some discount stockbrokers, who cannot be clearly categorized, fall between "discount" and "deep discount." They cater to skilled, high-volume traders with high demands for quality service.
Thursday, July 23, 2009
Stockbroker Description
When you are interested in investing in the stock market one of the first things you will need is a reliable and affordable stockbroker. At one point in time, a stockbroker was seen as a very high priced person that was extremely hard to understand. In today’s world, stockbrokers have become much different, they have begun to make their services cheaper to obtain and in such a way that is easier to understand. This is an extremely wonderful change for the simple reason that you will not be able to trade in any way, shape, or form without a stockbroker.
One of the major rules within the stock market is that no person is allowed to trade within the stock market unless they are a certified stockbroker. A stockbroker, within the United Kingdom twelve million investor’s trade in the stock market, performs every trade that occurs and each one has enlisted the services of a stockbroker.
So you are probably now wondering, what exactly can a stockbroker do for me? There is a wide range of abilities and services that any stockbroker can offer you, at the same time there are also various ranges of fees that will be collected from them. Typically, a stockbroker will charge a commission, a set fee, or some combination of the two. In regards to the services a stockbroker can offer you, there are three basic levels that include only execution, portfolio management, and advice.
When a stockbroker only deals with the selling and buying of particular shares, per the instructions you give them, this is generally called execution only or in softer terms dealing only. With this type of service, they do not offer you any type of advice on any action you want perform. Typically, investors that are experienced or novice in investing will use this type of service. Execution only is cheaper and extremely efficient the fees the stockbroker charges can range anywhere between £20 to hundreds of pounds, this will depend on the specific stockbroker you choose.
Portfolio management is extremely detailed and the most expensive type of service performed and dealing with advice is typically a little more expensive than execution only, because the stockbroker will offer advice and views on what is happening within the stock market. The stockbroker at this level of service will also take the time to explain anything you may not understand very well.
Within the portfolio management service, you can separate these into two other categories these are advisory and discretionary. When under the advisory category, the stockbroker will create a proposal of a portfolio for you; however, he or she will not take any action without express permission from you. Within the discretionary category, your stockbroker will completely run all aspects of your portfolio and will give you reports as needs on how the portfolio is working.
One of the major rules within the stock market is that no person is allowed to trade within the stock market unless they are a certified stockbroker. A stockbroker, within the United Kingdom twelve million investor’s trade in the stock market, performs every trade that occurs and each one has enlisted the services of a stockbroker.
So you are probably now wondering, what exactly can a stockbroker do for me? There is a wide range of abilities and services that any stockbroker can offer you, at the same time there are also various ranges of fees that will be collected from them. Typically, a stockbroker will charge a commission, a set fee, or some combination of the two. In regards to the services a stockbroker can offer you, there are three basic levels that include only execution, portfolio management, and advice.
When a stockbroker only deals with the selling and buying of particular shares, per the instructions you give them, this is generally called execution only or in softer terms dealing only. With this type of service, they do not offer you any type of advice on any action you want perform. Typically, investors that are experienced or novice in investing will use this type of service. Execution only is cheaper and extremely efficient the fees the stockbroker charges can range anywhere between £20 to hundreds of pounds, this will depend on the specific stockbroker you choose.
Portfolio management is extremely detailed and the most expensive type of service performed and dealing with advice is typically a little more expensive than execution only, because the stockbroker will offer advice and views on what is happening within the stock market. The stockbroker at this level of service will also take the time to explain anything you may not understand very well.
Within the portfolio management service, you can separate these into two other categories these are advisory and discretionary. When under the advisory category, the stockbroker will create a proposal of a portfolio for you; however, he or she will not take any action without express permission from you. Within the discretionary category, your stockbroker will completely run all aspects of your portfolio and will give you reports as needs on how the portfolio is working.
Tuesday, July 21, 2009
Stock Market For Kids - What You Need To Know To Begin Investing At A Young Age
Is the stock market for kids? Should kids really begin investing at a young age? Absolutely yes! Actually, investing when you are younger is the best time to begin, because at this point you generally don’t have a lot of money to risk, and you can begin learning the ropes at a very early age, and you will achieve financial freedom very quickly.
So you are looking for some stock market for kids investing tips? Here are some great ways to help you begin learning the market now, and therefore avoid the learning curve most investors don’t go through until their adult years.
First of all, here’s the first stock market for kids investing tip you must know: be absolutely sure you are financially educated before you begin investing. One of the biggest causes of the market fluctuations we see today is a lack of financial education among most investors.
All too often, investors place too much faith in a financial analyst to guide them with their investments. Instead of investing in a company with the eye on long term profit, most people view an investment as a quick hit thing, a way to get in, make some quick money, and sell quickly. The world’s top stock market investors don’t think this way.
You see, when you are investing your money in a company, you are buying part of the business itself. If you were to buy a real business, don’t you think it would probably be a good idea to look at the companies’ finances and determine if it was a good investment or not?
However, for some reason most investors separate a companies’ stock market price from the company itself, and think of themselves as only buying the stock price, instead of a portion of the company. When thinking this way, they will often only look at the company’s stock price, and not even bother to check its’ financial statements. Short tem, this can sometimes work.
However, if you want to invest in a company for its’ long term profit potential (and this is what most of the world’s top investors do) you need to know the companies’ profitability and its’ future outlook. Without this knowledge, you can never hope to make a lot of money in the market.
Congratulations! You are about to embark on an incredible journey, and at a very young age!
Most people don’t begin investing their money until much later in life, making it very difficult for them to build up any significant wealth. Hopefully these stock market for kids tips will help you get on the road to financial freedom very quickly.
For more info on how to buy stocks, and tips for investing in the stock market, visit http://www.stock-investing-tips.com, a popular site that teaches how to make a fortune from your investments.
Article Source: http://EzineArticles.com/?expert=Josh_Neumann
Disclaimer: They know how to get stock market for kids. I went to a seminar like that once.
Most people have a few simple questions regarding kids investing. I do all the work. This article is going to offer some suggestions for making the most out of kids investing. You can question this is you want but you'll be wrong.
It was in very good condition.
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