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Here is a Stock Market Tip Everyone Should Know About

Are you looking for a stock market tip? In this article I am going to give you a tip that everyone should know about.

This stock market tip is to – perform due diligence. What is due diligence? Basically it means researching a stock to see if it is worth buying. Here a ten steps to follow when performing due diligence.

1.) Market capitalization – find out the company’s market capitalization, doing this will help you figure out how volatile the stock will be, how broad the company’s ownership is and the potential size of the companies markets. Also find out what exchanges the stock trades on.

2.) Look over revenue, profit and margin trades - look up the revenue and income figures for the past three years. Look for trends in these figures such as whether growth is choppy or inconsistent or if there are any major swings. Also review the margins to see if they are rising, falling or remaining steady.

3.) Competition - what industry does the company operate in and how much competition is there. Compare your company to its closest three competitors.

4.) Company management - who is running the company? Look at the bios of company management, who are they and what kind of experience do they have. Also see if the company managers hold a large amount of company shares, high share ownership by managers is a good sign

5.) Check the balance sheet - look up the company balance sheet, what is the overall level of assets and liabilities? Check to see how much cash the company has as well as how many outstanding debts are held

6.) Stock price history - how long have all classes of shares been trading? What is the long and short term price movement? Is the stock price smooth and steady or choppy and volatile? Answering these questions will give you a good idea of what the stock will do in the future.

7.) Level of risk - it is important to understand the levels of risk involved in the stock. Ask yourself if there are any future risks involved in owning this stock.

By following the above steps you will be able to get a good idea if your stock is worth investing in. If you enjoyed this stock market tip, if you

Simple Yet Powerful Strategy to Make Money in the Stock Market – Tips That You Do Not Want to Miss

Investing money in the stock market could be a risky thing to do so, if you do not already understand the basic rules in stock investing: People want to make money in the stock market, increasing their fund in portfolio, and hopefully to get a healthy return in the long run. But how many of them are really able to gain a financial freedom status by solely investing their money into the stock market?

There are always many different ways to achieve a goal. Let’s try to do that in a harder way. You are gathering stocks information, doing extensive research on determining possible profitable stocks by analyzing market data, looking through companies’ financial data, looking at the market trend, knowing how much you can invest and what is the maximum amount you can lose, calculating the risk and reward ratio, learning to handle and control your emotion while trading, diversifying your investment, and so on. These are what we call an investment plan or investment strategy.

Well if I were to use that investment strategy, it would have been a disastrous case for me. I am not an analytical type of person, I would have messed things up. I like to keep things simple and straightforward. There must be some other simple way which I could be using to make a healthy income out of it.

The Simple and Powerful Strategy

To my surprise, there is really a simple method which teaches you how to make money in the stock market and it could not be easier than that! You choose to trade with a stocks’ index at the market opening. Set a stop loss, follow the details on when to enter the market, and when to sell the trade. The real deal is to trade the differences of the stock index’s gap and the whole process only takes around 15 – 30 minutes, and that is all you need — simple and straightforward guideline! Did I mention that It does not involve any technical indicators? You can easily make a hundred to few hundred dollars per trading day using this method alone.

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.