The following Qwoter stock market advice topic discusses investment and trading strategies that can be effectively applied to penny stocks (read what is a penny stock). You should read over the following strategies a few times over. After reading the trading strategies and becoming familiar with them you should select the strategy that fits your tolerance for risk. The strategy … Read more
This may sound crazy, but it’s absolutely true AND extremely important for you to understand. Your broker is there to take your orders and execute your trades. That’s it. You may not realize this, but your broker’s goal is to get you to make as many trades as possible. That’s how he makes HIS money, … Read more
6 Quick Rules for Successful Stock Investing Successful investing depends on personal discipline, not on whether the crowd agrees or disagrees with you. That’s why it’s crucial to have a solid well-grounded investing philosophy. Don’t buy a stock unless you understand the business inside and out. Taking the time to investigate a company before you … Read more
People are overconfident. Psychologists have determined that overconfidence causes people to overestimate their knowledge, underestimate risks, and exaggerate their ability to control events. Does overconfidence occur in investment decision making? Public stock or security selection is a difficult task. It is precisely this type of task at which people exhibit the greatest overconfidence. Are you … Read more
If you havent already, it might help to first read the background on Overconfidence in Trading. Psychologists have found that people become overconfident when they experience early success in a new activity. Also, having more information available and a higher degree of control leads to higher overconfidence. These factors are referred to as the illusion … Read more
What is the over the counter market? The over the counter market, known as the OTCBB, which stands for Over The Counter Market Bulletin Board, is a regulated quotation service that displays real time quotes, last sale prices, and volume information in over the counter equity securities. An OTC security is any stock that does … Read more
In the U.S., the stock markets and exchanges (New York Stock Exchange, American Stock Exchange, and Nasdaq) are open from 9:30 a.m. to 4:00 p.m. eastern standard time. What happens when a company announces bad news after the close of the market? News can affect the stocks in your portfolio, even when the markets are … Read more
No savvy trader would trade a system with a real account and risk real money without first observing its behavior on paper. A trading simulator is a software application or component that allows the user to simulate, using historical stock market data, a trading account that is traded with a user-specified set of trading rules. … Read more
Short selling allows a person to profit from a falling stock. How could someone profit from a stock decreasing in value? Well, the existence of this ability to short sell a public stock should not come as a surprise as stock prices are constantly rising and falling. Thus, there are brokerage departments and market firms … Read more
Trading stocks. You hear that phrase all the time, although it really is wrong – you don’t trade stocks like baseball cards (I’ll trade you 100 IBMs for 100 Intels). Trading Stocks = Buy or Sell To “trade” means to buy and sell in the jargon of the financial markets. How a system that can … Read more
Like any entrepreneur, an investor must know what the market they are entering is composed of. Without a basic definition of the stocks you will be investing in, you will make countless mistakes out of confusion and lack of direction. You must research it fully and know all the details that pertain to the given … Read more