Stock Market College
Investing correctly is your golden ticket towards reaching your financial goals.
Stock market trading can make you rich, but you must learn how to trade stocks like a professional.
Want to retire wealthy? You need to start saving for your retirement today.
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Stock tips are just as much a part of the market as stocks themselves. Honestly, where would we be without tips?
Are you looking for that next hot stock market tip that is supposed to make you rich? Well, stop looking and think again. Stock tips supposedly give you the “inside scoop” on the next potential hot stock play so you can buy in when the stock price is low but before the stock takes off. Then sell when it’s high – making you a nice profit. In theory, it sounds like a good stock trading strategy. If it only worked that simple.
All of your trading, buying and selling, revolves around money. Therefore money management is about managing your business and maximizing your stock market trading profits.
There are five key elements to good trading money management:
Lets review some of the Top 20 Trading Rules you should always follow when investing in the stock market:
1. Don’t blame the market.
You must take responsibility for your financial security and all of your actions.
To be successful with any investment strategy, you have to start out with an investment philosophy that is consistent in substance and one that corresponds not only to the markets you decide to invest in but your to your personal and individual characteristics as well.
It is pretty apparent to most people who observe people act and react that they do a lot of what they do based on moderately primal and/or emotionally motivated impulses. Many experiments have been conducted to check the impact that primal instincts and emotion-based thinking has on investing and stock market psychology. They have generally proposed that when people are presented with ambiguity their emotions can overtake their logical thinking, guiding them to resist speculative propositions. This raises the challenging hypothesis that people who are less fearful than other people may produce more proficient investors.
Did you know that income from your employment often helps you to diversify your investment risk?
Much of the value in a young private business is the anticipated contribution of the principals of the business over the years ahead. The same applies to employees who allow for the value of their future earnings potential in making financial decisions (for example, in taking out a mortgage): prospective earnings reduce financial risk for any individual. This will have more value for someone who is young than for someone who is old, or for someone who is healthy than for someone whose future earnings are constrained by ill health.
You finally opened your first stock market trading account. You analyzed a long list of stocks and spotted one you want to buy. But wait. First you need to know how to place a trade in the stock market and how to effectively use the different types of market orders you can execute.
It is very difficult to try and determine what company is going to do tomorrow or next week, even next month because you simply can’t account for the human condition. However, you can take a look at the future goals and aspirations of a company to determine where they’ll likely be in the next quarter or two or even the next year.
Some preferred stock issues have a convertible feature that allows holders to exchange their preferred stock for common shares. The conditions and terms of the conversion are set when the preferred stock is first issued. The terms include the conversion ratio, which is the number of common shares the preferred stockholder will get for each preferred share exchanged, and the conversion price of the common stock.
A dividend reinvestment plan (DRIP) allows shareholders to reinvest their dividends in additional stock rather than receiving them in cash. These plans are offered directly by companies or through agents acting on behalf of the corporation. In the former case, a company issues new shares in lieu of a cash dividend.
Are you new to investing and would like to learn how to analyze stocks? As far as researching a stock, there are many things to look for, and everyone will tell you something different. Use the following stock analysis test to identify the obvious losers you do not want to invest in. These may be stocks that would be bad news for any investor. Perhaps they’re firms with businesses based more on hype than reality with little or no sales or earnings. Or they could be stocks that simply don’t fit your investing style, e.g., maybe they’re value stocks, and you’re a growth investor.
Making mistakes is part of the learning process for all investors, but all too often, it’s plain old common sense that separates a successful investor from a poor one. At the same time, nearly all investors, new or experienced, have fallen astray from common sense and made a mistake or two. Being perfect may be impossible, but knowing some of common investing errors can help deter you from going down the well-traveled, yet rocky path of losses.
How do stock market traders make money? Whether one trades upstairs for a banking/broking operation or downstairs on the exchange floor, every trader has the same financial goal:
To make money every day.
But how can this be if, in fact, the markets are random and the future is unknowable and if even the most sophisticated option traders are at the mercy of an unpredictable future volatility?
“Because it’s there!” What has come to be known as day trading is new, and many are lured by it. Of course, day trading is as old as the first market, but it has generally been the preserve of professionals. Now one finds traders of all degrees of experience at innumerable trading houses hunched over computers, buying and selling in seconds or minutes, hundreds of trades a day. Uncountable trading rooms in cyberspace connect thousands of traders all over the world, responding instantly to “calls” made by head traders to buy or sell. And in countless chatrooms, this or that stock is touted or rumored into buying or selling frenzies by traders acting on this information alone.
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