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Investment Guide: Stock Market Investing


What Does A Diverse Portfolio Look Like?

There’s one golden rule of investing that trumps all others: diversify. In other words, never put all your eggs in one basket. Imagine if you put all your money into one single stock (let’s say it’s Twitter). Now, if Twitter’s share price hemorrhages (like it’s doing right now), you’ll lose all your money. Even if you spread your investments in lots of tech stocks, you still risk losing money if the tech market... [Continue Reading]

What are Binary Options All About

Over the years binary options have become increasingly popular among investors. It is a financial option where there are only two possible outcomes: Paying off a fixed amount as per the initial option or not paying off at all. Essentially the trader is ‘predicting’ what they feel will happen to the product over a certain period of time (i.e. will it close higher or lower at a certain time), and if they’re right they make a profit, but... [Continue Reading]

The Pros and Cons of Investing in Penny Stocks

Penny stocks or cent stocks are typically defined as shares of a public company that are usually traded for less than $5 a share. Wise investors know that penny stocks are a high risk, but have the potential for a big return. While most financial advisors recommend that people don’t invest in penny stocks, it might be wise to incorporate penny stocks into your overall portfolio. However it is important to know the pros and cons of investing in... [Continue Reading]

Top 5 Tips for Building a Profitable Stock Portfolio

In today’s fast paced, competitive world, the stock market is as fickle as ever. On Wall Street, it’s a dog eat dog climate and more personal investors who are jumping into the trenches are coming up empty. Building a stock portfolio is more and more becoming an important personal venture to secure the investor for their financial future. However, an investor must know the ins and outs of how to build a successful portfolio in order to reap... [Continue Reading]

Top 5 Stock Market Trading Tips for Beginners

The exciting world of the stock market is enticing many people to come and try their hand at the investment game. We've all been lured in by the success stories of people who strike gold in the stock market and gain riches practically overnight. However, it is important to remember that there are just as many failure stories in the stock market. It's not easy to make money on stocks, and beginners should take heed of professional advice before jumping... [Continue Reading]

When to Exercise Your Stock Options

Know the Rules Employee stock options can provide you with a substantial source of deferred income and permit you to control the recognition of taxable income. You generally pay no tax when an option is granted because you are not receiving any shares of stock, only the option to purchase shares at a later date. In general, holding an option to acquire stock may be better than holding the stock itself. The option provides protection against loss... [Continue Reading]

5 Secrets For Gold Plating Your Stock Portfolio!

You know, we have only so much time to earn money over the course of our lifetimes, and though we all know we could somehow put a portion of our savings to better use, actively managing a portfolio is something many of us would consciously and subconsciously rather not think about. What strange human foible makes us do this? Well, it might come down to one of two main reasons. One reason is we might not know where to start. We think of managing money... [Continue Reading]

Active Stock Market Timing

Much has been written about the virtues and dangers of active stock market trading, or “market timing.” Most of the pundits and so called "experts" will tell you that stock market timing doesn't work, that it's dangerous, and that "buy and hold" is the best and only way to invest. But this conventional wisdom is patently untrue. Here are the facts based on my research and extensive real time experience. If you want to be a successful stock... [Continue Reading]

Trading With Price and Volume

On any given major stock exchange, from Wall Street to Bombay or from London to Hong Kong, billions of shares are traded each day that represent trillions of dollars exchanged back and forth. This buying and selling action represents volume, which is the result of the exchange of stock or commodity between both buyer and seller. Volume, then, is the prime mover in the price for a given stock or commodity in a given amount of time. If there is more... [Continue Reading]

Understand Bear Markets

A bear market is when the stock market falls for an extended period of time. The fall is usually around 20% and is the opposite of a bull market. A bear market is caused by the decline in stock prices which are directly influenced by a decrease in company profits. Falling stock prices can also be a correction of over valued stock. When stocks become to expensive they will eventually fall to a more reasonable price. The decline stock market is further... [Continue Reading]

The Good & The Bad of Online Stock Trading

In order to get consistently positive results from the online stock trading system, you have to have a system of your own. You wont consistently pull positive returns from online stocks if you follow a rag tag system. To help with your investing, here are a couple methods that will give you some direction as to where to start with your online stock trading system. One system you can use is to buy equal dollar amounts of the 10 DJ stocks that have... [Continue Reading]

How to Trade Stocks

Understanding how the economy works isn’t the only fundamental analysis tools that are important while trading stocks. You also need to read financial statements to understand the financial status of the companies you want to buy. A Company’s income statements on the other hand give you a look at the results of the most recent period and provide a basis for comparison with prior years and periods. You can use these statements to look at whether... [Continue Reading]

7 Ways To Know When To Invest - And When To Get Out

In order to make money in stocks, a trader has to be aware of two key factors: price and timing. Though many traders are good at discerning the trend of a market, their timing is often poor. Although they may know that a stock will move in a given direction, they find it difficult to profit from that knowledge because their market entries and exits are timed incorrectly. Timing is the most important consideration for a short-term trader, trumping even... [Continue Reading]