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3 Stock Market Tips to Make Serious Money Even in Today’s Climate

Despite our economy, the stock market is still a fantastic place to realize your financial independence. There are a lot of stocks which have bottomed out and are ready for their recovery period, making them ripe for the picking. Keep these three things in mind to make serious money in the stock market even in today’s conditions.

First, always have an exit strategy for every investment which you make. A lot of investors just rush into what they believe as being a hot stock opportunity and never consider their exit strategy, saying that they will basically get out once that stock becomes unprofitable. It’s essential to have an exit strategy from the get-go and to use your stop-loss effectively so that you’re never caught in a situation in which you let your emotions run a muck.

Secondly, keep your emotions in check whenever investing in the stock market. Even if you have an exit strategy, many investors don’t act on it when they should because they let their emotions get the best of them. It’s easy to say that you’ll exit your position once a trend reverses out of your favor, but when you’re actually in the market and that stock has long been very profitable for you, many investors choose to wait out that reversal and all the while hemorrhage their profits.

Finally, consider using an analytical stock program to perform your analytics for you in the market. This is the most time-consuming and difficult aspect of investing, so many investors today choose to outsource this task in full to a cost-effective analytical stock program to do that job for them and scour the market 24 hours a day looking for a high probability trading opportunities to invest in.

These programs tell you exactly when to get in and out of your investments as well as what to expect in terms of appreciation to that you can set your stop-loss accordingly. This also makes for the most reliable and risk free way to invest in the market today because emotions or other pollutants never have a chance of having any negative effect on your investing.

Instead you can breathe easy knowing that every pick which the program generates for you is nothing more than the product of algorithmically crunched market behavior from the robot itself. No time or experience is necessary to devote towards analytics as a result, so you can invest in your spare time while focusing on your family, your work, or your passions.

Almost Anyone Can Read Stock Market Trends – With Just a Few Tips

If you know how to read the stock market trends, and how to predict the next market moves, you could be the “King of the World”. Yes, that’s how important it is to be able to understand the market trends. Some people say that only the old expert who’s been doing this for decades can read the trends and predict the moves. It’s absolutely impossible for newcomers. In reality, this is just partly true. Yes, someone who’s done it before can do it again. But that doesn’t mean that a new entrant cannot really understand the changing trends. He/she can, with just a few tips.

The Two Most Important Things to Understand Stock Market Trends

If you are trying to make any meaning of the market trends, you should always watch out for two very important things, and they are,

• Price
• Volume

Price – There is of course a general trend of where the market is going, and it is indicated by points. That’s easy to find out. You can find it out anytime online. But what about the points in particular groups or indices? That’s easy too. The market will release a report at the end of each trading day, and you can find out the indices that gained, and also how many points were gained. Now watch this for a while – a month or even 3 months, and you know where individual indices are heading over the short or the mid-term.

For a closer inspection, you must select individual stocks from a particular industry, and then see how the price has fluctuated over time. Can you see a pattern here? Does the curve appear like a Y, or does it just stay within a short range? Can you find anything at all that has caused major upheavals to the stock’s price?

Volume – This is another important area you must watch out. Check out the number of stocks that are traded for a particular company. If the figure is high, then you know that it is a popular stock. Do some analysis to find out the percentage of buyers and sellers. Once you do this, you will know whether the trend is bullish or bearish for the stock. When you have some understanding of the stock’s movement and character, you will begin to see the trend.

Volume will give you an idea about the market movement, and price will tell you about the direction of this movement. Keep this in mind.

Don’t Fight the Market… But Sometimes You Must

It is important that you try to move with the market, and not against it. Sometimes you may find that there is a sudden hike in the price, without any big jump in volumes. You might be tempted to buy in the hope that the price will keep going up for the next few sessions at least. But it might not happen – often there are hidden personal agendas why individuals might want to purchase thousands of stocks of a particular stock. It might be a takeover bid. So there’s no trend here. Stay away. You will probably lose money here.

Stock Market Tips – Choosing the Market

Here is another edition of stock market tips and this is really about you choosing the right market for yourself when you are concerning yourself with making money. In fact, the most common mistakes that people do make is that they enter a market not knowing much about it, based on the recommendations of those who seem to know nothing of the market as well. This case of the blind leading the blind has led to some very interesting and saddening results of the market and of new traders in general as they valiantly try to fend off failure.

Always, always choose a market that is highly liquid, and that is the one way that you are going to make plenty of money. Well, this term is used to encourage you more than anything else, making money is relative to how much work you are going to put into the market of your choice, but more liquid markets are one that are more rife with opportunity. Just look at the Forex market and what it is doing for its own investors in general. In the end of the day, it is about how much you want to make off the market and liquid markets are the way to go.

Especially in the stock markets, look for those that are the most active, and those that have the most issues out in a single day. That way, you are then able to ensure yourself a market that has high trading volume, and a high volume of buying and selling is a good way to measure if the stock prices are making or even have the potential to make in the first place. Stagnant markets are bedrocks for disaster so do not even consider going there.

If you are a new trader, I would suggest that you consider markets like the Forex market or even the futures market for a start. Even though they are the most volatile of the lot, they are the ones that have the least résistance curve to learning, so you can really perform conservatively there if you put your mind to it, and because the market is liquid, you will be able to avert or capitalise without being entangled in red tape. In fact, more and more new traders seem to find the Forex market a whole lot more attractive than most traditional stock or equities markets.

These are some stock market tips when you are targeting a market to try or you are looking at your portfolio and thinking of trying something new. What you need to know is that grabbing the active market and one that is excited is the real solution to the profit making problem. When you have that kind of combination, then and only then will you able to see the clear light in the distance, and you can trade with a higher clarity than you would if you were in a market that merely confuses you from the get go.