Stock Market Advice – Here’s Why It’s Free!

One of the most plentiful commodities in all of the world is stock market advice. It is readily available from friends and family. When your hairdresser or milkman finds out you invest in the market they will willingly provide you with free advice.

Stock market gurus appear frequently on the cable news channels and the network morning shows. They are fairly bursting with new stock tips. In this wonderful world of ours everyone has a ready supply of stock market advice.

This great abundance of free flowing stock advice is not a new phenomena. It seems to have sprang up almost as quickly as did the stock markets themselves.

Perhaps my favorite story of free stock market advice comes from Edwin LeFevre’s Reminiscences of a Stock Operator. As the story goes, two hapless fellows become angry at the man that keeps giving them bum stock tips. They have followed a couple of this tips and lost a great deal of money. In frustration the two compose a torrid telegraph message to tell the tipster off.

Just before they send the message, one of the fellows has second thoughts. He says something to the effect of, “Hold on, Jim. You’re not really going to send that message are you?”

To which Jim replies, “And why shouldn’t I?”

“Well, if you send that telegraph, he might get sore and never give us another tip!” the friend answers.

This amusing story illustrates the second part of the problem with stock market advice. Not only do people love to give advice on the stock market, they also love to receive a juicy morsel of stock market gossip.

It is just human nature. When you hear the latest rumor or the latest whisper about a certain stock, you feel like you are in on the inside story. These tips can fill your head with dreams of great fortune. Stock tips are very tempting to take seriously.

But in almost all instances, the only fairly priced stock market tips are the free ones. And even these can cause you to lose money you would not have ordinarily lost. Stock market tips are a very tempting form of stock market gossip.

They will undoubtedly be a part of the stock market for as long as we have stock markets. But they are really a foolish way of going about investing in the market. The next time you hear of a hot stock market tip, just smile and walk away. Your pocketbook will thank you later.

Stock Market Trading Tip – Achieve 40 Percent + Returns

Let’s face it folks making money on the stock market is not easy. If you take a look at the normal companies covered and pushed by the mainstream stock brokers you soon realize you need a significant investment to make decent money.

There is another way! It is a little more risky Here is a stock market trading tip for you – try investing in Penny Stocks. I am currently tracking 3 Penny Stock recommendations sent to me last month and 2 out of 3 are achieving 40%+ returns!

Here are stock market trading tips and facts you should know about Penny Stocks before you consider making an investment.

1. The value per share of a Penny Stock company is generally defined as having a face value of under $1. The company will also have a market capitalization of under $500M.

2. Penny Stocks have a lower number of shareholders and people trading the stock. These means a couple of important things for the potential investor. Firstly, the stock is much more volatile meaning the price of the stock and move rapidly either up or down. Secondly, trading volume spikes erratically – there is no smooth trading pattern so selling and buying share may be more difficult.

3. The volatile nature of the Penny Stock price gives the investor the opportunity to make significant profit. However, you also need to bear in mind that a Penny Stock is considered a very speculative investment.

4. Penny Stocks attract investors because of the low face value of the share. This means you can buy a large number of shares for a relatively lower investment which is attractive due to the increased investment risk. You need to purchase a decent volume of shares to maximize your returns.

5. The amount of information on Penny Stocks is much more limited compared to mainstream stocks. Investors usually rely on a combination of Penny Stock newsletters and word of mouth recommendations. You can also use a site like Yahoo! Finance to view company information and historical share price information. Be extremely wary of penny stocks pushed by spam email. I must receive at least 5 recommendations via spam email every day – ignore them!

Penny Stocks are a smart stock market trading tip where you can start small and make a decent return. One of the issues is getting quality stock pick recommendations which I solve below.

Online Stock Market Trading

Secrets of Successful Stock Market Trading

For making profitable stock market trading you need not be a professional expert on stock market, just follow these simple steps and make profits.

Information is the key – For successful stock market trading, you have to keep regular tab on the market and industry. For example, you can read the newspaper and financial articles, do your research online, read the magazines, form a network of trusted friends or do anything but be sure that you have all the news that might affect the stock market. Just keeping track of the stock prices is not enough. You have to keep alert on anything including politics, industry news, policies that affect the industry and commerce.

Avail of the Consultancy services – Doing extensive research and keeping tab on different aspects of stock market sometime is not enough. You need professional help to take major decisions. So, try find out some trustworthy stock consultancy firms and get registered with them. They provide effective tips and solutions for investing in the stock market and you can always make profit from these tips. But remember not to follow the tips blindly. For first couple of occasions, do not make investment based on the tips, rather keep a watch on the referred stocks and if they show really good movements then only trust on their advice.

Don’t be copycat – Always remember that stock market investment is unique for each individual. Everybody has their own resources, objective and ways of doing stock trading. So, simply copying one’s stock investments blindly might not do any good for you. You should try and take your own decisions. It might give you some problems initially but even if make losses you will always learn from your mistakes.

Have a strategy – It always helps to have a strategy when it comes to stock market trading. Be sure which sectors you would like to invest in would be your way of trading, i.e. you will do only day trading or long term trading or invest in specific industries. Selecting a sector always helps as you can keep comprehensive information on that sector and take timely decisions. For examples if you are investing in steel industry, infrastructure and construction industry, it would be helpful for you as they are somewhat related to each other.

Choose your broker diligently – A broker is a key person when you invest in the stock market. When they will execute your buying and selling decisions in the market, you have to depend on them. So, choosing a stock broker is a crucial decision. Consider the experience of the broker, brokerage rate and consultancy services for hiring your stock market broker. In fact instead of hiring a broker you can register with any online stock trading firm as that make things less complicated and the brokerage rate will also be less. Do not get tempted by the attractive broking rates offered by the discount brokers and make sure it is competent professional service provider before selecting your broker.

Select the market – There are so many trading stock options available for the investors these days. You can even invest in more than one market. Things have become even easier with the online stock trading options. But before you start investing select the market that you are confident about. Remember investing in foreign stock market may be tempting but you need extensive knowledge and resources of that particular market for you to win the game.