Monday, April 25, 2011

How to Avoid Day Trading Mistakes

Day trading for beginners is like lion taming, except more expensive. It's a risky and challenging pursuit: buying stocks and selling them again in the same day, making money off tiny fluctuations in the price of a stock over only a 12 hour period. For many years, the tools of day trading were not available to the average investor — real time stock results, analysis tools and access to instant trades (without the help of a broker). Today, with high-speed connections, anybody can try to day trade. For those of stout heart, here are some common pitfalls to avoid.

Steps

  1. Learning to day trade. The first step for any day trading beginner is to learn the game with a qualified, actively trading consultant - coach. Learning the game of day trading stock with a coach, like Federer learning to be the best in tennis and Woods in the game of golf, you need to learn the winners game

How to Become a Trader

There are two main kinds of traders, those who deal with their own money, and those who trade with the money of an employer. There are also important differences to each of these, which finance professionals are quick to point out. However, for someone who simply wants to become a trader, meaning to facilitate trades on the stock market (or, colloquially, on Wall Street) some basic guidelines apply. Here's how to become a trader and get the best chance at managing a greater amount of capital in financial stock markets.

Steps

  1. Acquire your own capital. This is the first step to actually being able to trade in financial markets. Finance pros always recommend distinguishing money that you use for trading from money that you may need in the short term, in order to prevent some distinct budget problems.
  2. Access a broker. In order to start trading, you'll need access to the stock market. Unless you already

Sunday, April 24, 2011

How to Pick a Quality Stock for Investment

There are certain characteristics that identify quality stocks for investment purposes. This entry discusses some of the factors that may be used to identify winning stocks.

Steps

  1. A good place to start when looking for a stock to purchase is the list of top percentage gainers for that particular day. These lists are found on USA Today, CNN.Money, and elsewhere.
  2. From this list, emphasize stocks close to or higher than $10/share. Stocks much under $10 are generally of lower quality. Although one can purchase more shares of a lower-priced stock, that doesn't necessarily mean that your chances of a successful investment are greater; in fact they may be reduced with so-called "penny" stocks. 
  3. Check the latest quarter earnings report. These are easily found on the Yahoo Finance website. After

How to Avoid Investment Trading System Scams


Everybody, it seems, has an investment trading system these days. There's so much baloney in the trading system marketplace that it makes you want to follow Mark Twain's advice about how to double your money: "fold it over once and put it back in your pocket." How do you separate the few legitimate investment trading systems from the scamsters? Based on research and experience, here are the "Top 11 most common ways to spot trading system scams".

Steps

  1. Think Often, they will start "improving" the system, or stop using it altogether. Especially for beginners it is a big help to gain confidence in the system if there is a winning percentage of 65% or more.
  2. Avoid "hypothetical" trading systems - systems that have only been backtested, never actually traded in the market Insiders, like the proverbial "Them", as in "They say…" This is almost always a sign that

How to Get Started in the Stock Market


Some basic guidance from a seasoned investor who is also a financial and investment planner.

Steps

  1. Try to understand why you want to invest. This is the hardest thing - looking at yourself.
  2. Search for an area where you hold some intellectual strength. It is tough enough to make money in the markets at the best of times, so why disadvantage yourself by investing in things that you don't understand? You will have areas of expertise that fund managers don't. Use that advantage if you can. Warren Buffett describes this as his 'circle of competence'.
  3. Do plenty of research. Then do plenty more! There is more valuable information available online than we can possibly imagine.
  4. Learn to think independently. This is the biggest skill you can learn towards becoming a successful

Tuesday, March 29, 2011

Exchange-Traded Funds

A 60-Second Guide


The "It" equity -- the exchange-traded mutual fund -- is no spring chicken. It's been around since the early 1990s. But ETFs are still turning heads. It's no wonder: The combination of index investing with the handiness --- and lower costs -- of individual stock ownership is irresistible. Are ETFs a good match for your portfolio? Read on...

0:60 Consult your investing dictionary.

What exactly is an exchange-traded fund (ETF)? "Exchange-traded" refers to shares that trade all day long on

Thursday, March 24, 2011

Online Stock Trading - Who Else Wants to Finally Get Profits?


Online stock trading, Blue-Chip style.

Investing in conservative blue chip stocks may not have the allure of a hot high-tech investment, but it can be highly rewarding nonetheless, as good quality stocks have outperformed other investment classes over the long term.

Historically, investing in stocks has generated a return, over time, of between 11 and 15 percent annually depending how aggressive you are. Stocks outperform other investments since they incur more risk. Stock investors are at the bottom of the corporate "food chain." First, companies have to pay their employees and suppliers. Then they pay their bondholders. After this come the preferred shareholders. Companies have an obligation to pay all these stakeholders first, and if there is money leftover it is paid to the stockholders through dividends or retained earnings. Sometimes there is a lot of money left over for stockholders, and in

Wednesday, March 23, 2011

Choosing the Right Stock Trading to Invest

Stocks, also known as trading shares, are one of the options available for those who want to invest their money. Other options include bonds, real estate, and bank deposits. These present ownership rights to a company, allowing investors to part-own firms they would never buy outright. It is a well-known fact that in the long run, stock prices always rise, mirroring population and GDP growth. Since new companies emerge while older ones wither away, choosing the right stocks to invest in can be tricky. Investing in shares of stocks requires a consistent, deliberate approach. This removes a lot of the emotionally driven investing decisions that typically lead to poor choices and lower returns.

Share trading online has now become the norm for individual investors and traders for the past decade. A lot of brokers now are offering online services with unique trading platforms. There are two basic methods of stock trading: on the exchange floor and electronically. Trading on the floor is the image most people know of

Wednesday, February 23, 2011

Stock Market Going Down !!! What To Do???

Yesterday, the stock market in every region is red (going down). The Composite Index for KLSE (BSKL) is sitting around 1515.  The price of almost every stock is going south. What has happened to the world market just now. According to expert or analyst (something they call), the reason for this going down was uncertainities in political aspects in Bahrain and Libya. This 'political situation' has raised the world oil prices and hence increasing the expenditure of company which affect it's profits. So...simple to say, the stock price is going down because of this 'political situation'.

I was very excited when this happened. No, no, no... I don't mean 'the political' but the stock market. When the stock market is going down, it's make one more oppurtunity for me to 'train' my emotion to stay calm whatever happens to stock market. Arrgghhh...I can't write properly just now. There was many things in my mind just now (I think I can't write a book now). Actually, there were many books out there writing about

Monday, February 21, 2011

Tactical Asset Allocation

For someone this topic is quiet boring and far from what they have think about what an investment should be. But, trust me this Tactical Asset Allocation is so handful and very powerful tools to help you achieve handsome reward in investment.

What Does Tactical Asset Allocation Mean?

 Tactical asset allocation (TAA) is a dynamic investment strategy that actively (per quarter, half or a full year) adjusts a portfolio’s asset allocation. The goal of TAA strategies is to balance risk and reward by apportioning a portfolio's assets according to an individual's goals, risk tolerance and investment horizon.

The three main asset classes - equities, fixed-income, and cash and equivalents - have different levels of risk