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Stock Market Tips From the Sensible Investor

An interesting thing to note about the basic advice on the stock market is that no body who actually is new to the stock market actually follows them. They are actually too caught up in some advanced system or strategy that they blindly go on a path without building the right foundations to make them a successful investor.

No matter how good your system is or how much inside information you might have on the movements of your favourite stock, you need to learn some basics first that even the most seasoned of investors is still following right now. Today, this article will talk about one thing and it is about market control. In actuality, the market is a very predictable creature and you have to know what kind of technical analysis as well as fundamental scrutiny you need to apply to the company to be able to come out as a winner.

This is all just down to how much you know your company and the business that it does. Learn all you can, no matter how good your system is, it cannot tell you what kind of economic environment the business is operating it and how it will react to certain environments. Have control over what you know and the more knowledge you have the better. It is just like commodity trading. If you do not know anything about your commodity, then you are just waiting to lose. This has been a stock market tip from a sensible investor.

Here’s An Easy Way To Start Making Money In The Stock Market

How can I start making money in the stock market? You might be taken aback if you knew just how many times I heard this question! Of course it makes sense that people are searching for the surest way to earn money from the stock market, after all who doesn’t want a little extra money! Let’s look at the smartest way to make a profit in the stock market.

Making money from investments is a powerful feeling. Your money is in your hands, all decisions are yours, and you’re making good investment choices. Wow, what a high!

Though it’s necessary to apply yourself, it is possible to make a profit from the stock market, if you choose a few smart moves.

In this article, I want to talk about what I know to give you the best chance turning a profit by investing in stocks. If you know how much time you can schedule for your investment strategies, it’s not too difficult to turn a profit.

Do you have a few hours every day or just an hour every week? Lots of times folks don’t determine the hours they need to reach their investment goals, and because of that they decide on the wrong investment tactic for them.

If you want to day-trade, you’re going to want to invest a few hours every day (during market hours). It’s critical that you keep track of your investments and maintain a constant market overview for changes in positioning. Many times a day trader forfeits profit because of time constraints!

There’s no problem with investing in a style other than day trading! Day trading is one of the more involved ways to invest, and it’s not everybody’s cup of tea. Good thing then, that you can turn a profit in other ways.

I believe the majority of investors would be better off not needing to be available for strategic decisions every day. I’m not advising you to completely ignore your investment positions for prolonged periods of time. You just want to have on a position that you are OK with during the day.

Make time for your stock market investments periodically daily, weekly, monthly, whatever you can fit it into your schedule. This time should be used for analysis and decisions based on present economic events and expected outcomes. If you apply a bit of your time, you will always find profitable investments.

Another investment style would be to specialize in just one field. You could specialize in penny stocks. Investing in a certain industry is another way to specialize. In any case, if you generally have limited time, I suggest you focus on searching for a specialty that suits you and that you find interesting.

When you choose your investment strategy, make sure you the pick one that’s designed for your situation! You must be able to invest the time needed for your chosen tactic. If you customize your investment style and change it as your individual need dictates, you are in the best position for maximum profitability.

Top Stock Market Tips and Guidelines

Two well known traders discuss entry and exit points and stock market tips are discussed. They also answer a question about how to find good momentum trades.

David: We have been asked a question about entry points. ‘Every entry I make, the trade seems to go against me. I’ve tried every indicator known to man and different timeframes. I’ve tried other people’s systems and they don’t work either.’

Stuart: It’s often not the entry that’s at fault. Often it’s the exit that’s at fault. We may be using an inappropriate exit and not allowing the conditions that got us into the trade work their magic and do what we want them to do for us in the trade.

Maybe the entry is too complicated and perhaps they were changing it or shifting it because it was too complicated. Ditch the indicators. They’ll work for some people and that’s fine. My personal opinion is to ditch them because they don’t provide much for me. Keep things simple, and it may be worth looking at the exits more than the entries.

David: The next question is: out of the thousands of stocks that are out there, how do I pick a few that have moved with a chance of high probability each day every day without scrolling through each one.

Stuart: You’ve got to have a way to narrow them down. I remember this when I started out. There are two thousand stocks on the ASX and I only want four or five to get going. How do I narrow it down to four or five? I think the easiest way, and one of the best stock market tips, is to get software that allows you to input you own entry criteria, the conditions you want to see in stocks. Software and PCs now does it within minutes or seconds and presents you with a small list for you to then assess yourself each chart by itself.

You need software which allows you not just to bring up the chart, but to go through data, perform calculations and identify your own criteria.

David: If you don’t have access to charting software, come up with a trading method that is calculated, based on some data you might find in newspapers. Some newspapers will mark which stocks are making new six month highs or fifty-two week highs. That might be a way to thin the thousands of stocks to a few. But get yourself a charting package.

Stuart and I use Metastock, but there are plenty out there, and start with that.

The next question is how to find good momentum trades.

Stuart: Find stocks that are already in well established trends. I do that all the time. I just buy things that have gone through that period of consolidation and have now started to move up. Look for higher peaks, higher troughs, sitting above their medium term moving average whether it be 30, 50, 60 day moving average and showing the capacity and the potential to keep moving higher. With a fifty week high, clearly this stock has an upside, because with a fifty two week high there must be great demand for this stock. This is a simple way of doing that.

David: The next question is entry and exits – what is a good stop? For entry, have a methodology to identify what’s going up. Exit points – choose an appropriate one. For good stops, you can use percentage, ATR or technical and the lowest low.

Find appropriate entry and exit points and buy some software to sort out the best stocks to buy. These are the best stock market tips for any beginner trader.