Common Mistakes You Can Make Without a Financial Advisor
Here's an informal list of mistakes investors can make by not using a financial advisor. See if any apply to you:
Getting emotional about your investments - Nobody likes to admit they made a mistake. So who's to know if that bowwow of a stock you bought at $30 and has since fallen to $5 is swept under the rug? Or who's to argue that it won't bounce back? I hate to keep picking on the Enron shareholders, but that's exactly what happened to them. First, they watched in disbelief as the stocks began sinking. Then they engaged in a fatal case of wishful thinking by agreeing with those despicable company executives who placated investors by saying the company would weather the storm and rally the stock to new heights. Then the skunks upstairs went out and began dumping their own shares like crazy.
Picking the wrong asset allocation mix - It's much worse getting the allocation wrong than it is getting the stock picking wrong. As long as you've honed in on the correct asset class, like large-cap stocks or Treasury bonds, then you're 90 percent of the way home, as the historical evidence suggests. But if you pick the wrong asset class - see the oil industry in 1990 or small-cap growth stocks in 2000 for proof - you're really up against it.
Remaining on the sidelines when you need to be in the game - Things happen over the course of your life. People get married, get divorced, buy and sell houses, take and lose jobs. All of these events trigger equally significant financial shock waves that need to be dealt with. But too often people don't act when they should and wind up all the poorer because the financial framework they've established for themselves is old and creaky and inadequate for all the changes that have taken place in their lives.
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Failing to take the future into account - Half of financial planning is preparing for what will happen to you down the road. When do you want to retire? When are your kids going to college? When do you want to." start that new freelance graphic design business you've always wanted? If you build a personal portfolio around your present financial circumstances and disregard your future financial circumstances, you're only decreasing your chances of meeting those future goals.
Again, a sharp financial advisor can help you avoid these pitfalls.
Monday, August 24, 2015
Tuesday, June 16, 2015
This is an excellent take on the internet experience and what it has meant to trading.
The introduction of the Introduction of the Internet has surprisingly changed our way of life as a society . It has defined the way we do business and the way we correspond. The Internet has opened many opportunities for stock market trading; it has taken internet trading from Wall Street to Elm Street in a very short period of time. Read Article
Tuesday, June 9, 2015
Trading penny stocks can be the best move ever, and a windfall for the diligent. There are so many stocks that started out as penny stocks and went on to become giants compared. One example is True religion, the clothing giant, many do not know that True religion started out at about $0.67 and after a few moves went through the roof tp reward its shareholders at over 4000 percent. Read More
|Brokers and the Stock Exchange|
The stock market is a complex entity and stock or currency trading with it like stock market brokers is mostly on of the popular ways most people know making money in the marketplace. Contrasting the investors themselves who make money from the prized and their stocks themselves, brokers make money by mostly the commission on stocks trades and other related fees. Most stock brokers work with a larger financial institute or firm and they get extra earning from additional bonuses and wages.
The exchange of stock brokers is the marketplace where he or she is enables to take part in. The normal person has limited information on the stock or currency market and investing by a stock broker can often be the best and the safest way for them to work together with the market. The expert broker is trained and licensed to trade securities like stocks or shares and can frequently act as a financial or investment adviser to help people make conclusions. With not any a broker service, broker, or trading platform, stock exchange and related markets are frequently off limits to some people.
Acting as the Principle
Some stock traders often select to take action as principles where they make trading on their own interest to make profits through speculation and day trading. In this era of commerce, Stock market brokers are frequently identified as stock traders and can frequently earn or loose reasonable earning in comparatively tiny amounts of time. Lacking the safety of a stock backer, brokers sometimes need to face their own bad results and have narrow recourses at the time of loss. Common trendy culture losses of stock brokers in addition to those in television shows and movies often show this features of the stock marketplace.
Licensing and Requirements
Almost all country that has established its own stock marketplace has its own regulations and laws that decides who can make trading in their stock or currency markets. There would be some brokers who need to take more than a few exams alike to the laws in United States and other type securities examinations. Some are also needed to be connected with or working with a registered brokerage firm or broker dealer. People who want to make trading with brokers should often make sure their rank with regulatory bodies similar to the Financial Trading Regulatory Authority or alike authority in your country place.
To be a stock broker is a complicated and tedious process that will almost certainly need to engage in lots of time and later it develops into a career. If they do not want or confident they wish to make all this time and try it is better to hire a broker, brokerage firm, or trading platform to take part in the stock marketplace.
Sunday, June 7, 2015
When trading, stocks move up and down for a wide variety of reasons. Much of it is plain old investor emotion. Some of it is the renowned "herd" mentality you've probably heard about on Wall Street, where the many follow the supposedly knowledgeable few.
Basically, it all comes down to corporate earnings - in other words, how well a company is doing at making money. If a company hemorrhages money over a short period of time, the stock trading price will probably decline. Conversely, if it is swimming in profits, the trading price of the company's stock will rise.
What can impact earnings? Lots of things - but only three primary ones you must know about:
- The Company Effect - Industry market share, performance of senior management, delays in getting products out, and poor customer service are just a few examples of internal company factors that can affect earnings, and thus impact the company's stock price. Take Apple Computers, for example. The company's stock price was languishing until founder Steve Jobs was brought out of retirement to restore some much-needed juice to the computer company. Jobs brought along an infusion of new ideas, like the popular iMac computer, that restored consumers' faith in the firm. As a result, company stock trading price rebounded upward (though not as high as when the company took off in the 1980s).
- The Industry Effect - In a global marketplace where information is a commodity, taking the industry lead is a big factor in the success of a company's stock. With global competition, improvements in technology, sawyer consumer perceptions, and the cost of running a company all impact earnings and stock prices of companies in a given industry. Look at the telecommunications industry. When it hit critical mass in 2000 or so - meaning just about everyone had a phone or Internet hookup - there were fewer new markets to crash and, consequently, fewer places to find new sources of earnings. The dearth of market opportunities pulverized the industry. By 2003, it still had not recovered.
- The Market Effect - Economic conditions, political influences like war and deficits, and geopolitical issues like currency fluctuations and debt all affect the consumer markets that companies are trying to reach. Consider the U.S. economy, which for months was virtually held hostage by the struggle over whether there would be a war between the United States and Iraq in early 2003. With consumers and businesses on pins and needles, people were buying less and investing less - at least, until the war ended and the market rebounded.
Friday, June 5, 2015
It doesn’t matter what type of stock you’re trading online you still have to think about the initial investment that you’re going to make.
The initial investment in trading is how much you’re going to invest in particular stocks so that you do not go bankrupt and have the potential of making money when you decide to sell the stock. There are many things that factor in to your initial investment or things that you should take into consideration so that you do not end up investing too much and losing all of your money in one stock or trade. Here are some tips that you might want to consider on your initial investment when you’re trying to purchase the right stock to start making a profit on.
One thing you have to consider when you are investing in a particular stock is how well the stock is doing. Taking into consideration the history of the stock, you’ll be able to better judge how much money you want to invest so that you can make the money back. You do not want to invest in too much if you do not know the company because you could end up losing all of your money. Being observant and know a little history about the stock before you invest as one of the best things you can do in order to protect your money while you’re investing in the stock market.
Another thing you can do is to look for a pattern a particular stock. Patterns are all over the place and they come around in a certain amount of time. Look at the history of the stock that you want to invest in because it will show you the times that you should purchase this particular stock and the times that you should sell it in order to increase your profit margin in a particular stock. Keep this in mind the next time you’re trying to start your initial investment when you are taking a chance in playing the stock market online.Practical Options 101 trading training Course
Thursday, June 4, 2015
The stock or futures day trader is someone who is making trades intraday. They tend to do this with frequency throughout the day. A day trader may trade a few times per day or dozens of times per day.
The swing trader could be a stock, option or futures investor. This type of trader is looking to take strategic bites out of the stock market that can stretch over a day or multiple days and weeks.
Long Term Swing Trading
The long term swing trader is very much like the regular swing trader, the only difference is their focus is on weeks and months as opposed to normal swing traders who focus on singular days.
Day and swing trading involve taking a position in the markets with a goal of squaring that position before the end of that day.
A day trader typically trades several times a day looking for fractions of a point to a few points per trade, but who close out all their positions by the end of the business day.
A swing Trader has slower cycle of trades, meaning less trades to make, therefore fewer commissions, but also less chance of mistakes and an increased ability to "snag" the more significant multi-day profitable swing trades.
The goal of a day or swing trader is to capitalize on the price movement within a market trading day.
Unlike investors, a day trader may hold positions for only a few seconds or minutes, and never, ever overnight.
What Day Trading really means?
"Day trading" is a widely misused and misunderstood phrase or term.Officially day trading means to not hold on to your stock positions longer than the current trading day; simply put, not holding any stock position overnight. this is really the safest way to day trade, because you are not exposed to any of the potential losses that can occur, while the stock market is closed due to news that could affect the prices of your stocks. Unfortunately, a huge percentage of people who claim to be "day trading" hold stock positions overnight because of fear or greed, thus setting themselves up for the loss or decreasing of their capital. With the fluctuation of trading currencies, the term "day trading" changes a little bit. Since currencies can be traded around the clock, 24-hours-a-day, there is no such thing as "overnight" trading. So you can have open stock positions for longer than a day with active stop losses that could be activated at any time.
Day trading has been divided into a few distinct styles, including:
Scalpers: This particular style of day trading uses the rapid and repeated buying and selling of a large volume of stocks within seconds, minutes or hours. The goal is to earn a small profit share on each transaction while minimizing the risk.
Momentum Traders: This particular style of day trading involves identifying and trading stocks that are in a moving pattern during the day, the goal of this type of day trading style is to buy such stocks at bottoms and sell at the tops.
Advantages of Day Trading
No Overnight Risk: Since positions are closed prior to the end of the trading day, news and events that effect next trading day's opening prices do not effect your portfolio or your capital, you have what you had at market close the previous day.
Better Leverage: Day traders have better leverage on their trading capital because of the low margin requirements as their traders that are closed in the same market day. This increased leverage could increase your profits if used correctly.
Ability to profit regardless of Market Direction: Day trading often will utilize short - selling trading to take advantage of declining stock prices. The ability to lock in profits even as market falls throughout the trading day is extremely useful during bear market condition.
Many people think day trading software and robots are illegal but in reality they are perfectly legal and a vital tool for most day or swing traders. I personally use Day Trading Robot because it is the best for swing trading. Most software trading robots are not designed for the many styles of trading outlined in this article only for Day trading in general.
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