Author: Stock Trader Guru

What to Know When Investing Capital

Investing in very small stocks gives the traders the chance to significantly boost their gains over their investment capital, but, it also offers the same opening to lose the investment capital faster. These five tips will assist the investor reduce the danger for one of the most dangerous investment medium. While all of us dream regarding investing in subsequent Microsoft or some other Home Depot, that the truth is, the chances of knowing that one time in a certain period of time accomplishment story is very thin. These corporations are both beginning out and acquiring some shell company just because it was low-priced than one IPO, otherwise they are certainly not really have either a production plan nor the required investment capital, convincing enough to give good reason for investment financier's capital for one IPO. This does not build them any bad investment; however it must make one be practical about the brand of corporation that one is investing in. Always see for a reliable high quantity of shares to be traded. If you are expecting some at a common volume could be deceptive. If some company trades some two millions shares this day, and does not trade at all for rest of whole week, then the every day average would show to become 200 000 shares. Consecutively to climb on and get down at a satisfactory tempo of...

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How To Find And Invest In High Growth Stocks

If you're looking to invest in high growth stocks, the first thing you should be looking for is earnings growth. A high growth company should have year over year earnings growth (EPS) of at least 25% for the past few years. In addition, the current earnings growth rate for the last few quarters should also be high. You do not want to invest in a company that had explosive growth 2 years ago and is now losing money. After earnings, you should look at sales growth. If sales numbers are not increasing, that's a warning sign that the company is just growing its earnings by cost cutting or buying back stock and that might not be sustainable in the long run. Other numbers you also want to look at are ROIC (Return On Invested Capital) and ROE (Return On Equity). Both these numbers should typically be greater than 10% for the last few years and increasing. After you find a stock that meets these criteria, how do you go about buying it? When establishing a new position in a stock you like, you should never invest all the money you have all at once. Even the greatest traders can not predict the exact bottom and most likely it will go lower after you buy it. I recommend buying half the position first and then after a couple of weeks,...

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The Stocks Investment – You Should Know About Stocks

There are several different types of stocks investment opportunities that you can indulge in to make some well needed cash. However, you will need to know what your financial standing is before you make investments on the stocks market. In addition to this, you will need to assess and know what's your risk comfort level and you should set long term financial objectives, as to what you would like to achieve by choosing a specific types of stocks investments. As a result of the many different stocks options available to you, you will need to plan exactly which type you intend to invest in, whether its long term financial securities or are you looking for some short-term stocks to make some quick money. When you have carefully considered these factors and others, you should then be able to select some profitable stocks investment. Let's look at some of the different types of stocks investment and there benefits. Common Stock Companies that trade publicly on the stock-market will offer stocks investment called common stocks. These types of stocks are extremely popular and if you buy them it will basically represent your equity ownership in a corporation. Depending on how the company performances, you will be eligible to make an income or a return on your stocks that you purchased. Also, if you hold a large number of stocks in a...

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Stock Investment Software

What is the benefit of using stock investment software?   You can view charts of virtually any traded stock using free software readily available on the Internet. This is a good starting point in getting a feel for what charts are and what they show you.   However, you will no doubt soon find that you want to have more control over how the data is displayed and also what information you can view and print off for further consideration.   What would I use it for exactly – just charting or more?   Charting is the obvious use for stock investment software but of a comprehensive investment strategy it is really only a part.   To make efficient use of your time (and significantly cut the hours you need to work) you really want a much more comprehensive package. One that includes:   A really great stock market screener (Vital to use your time wisely and seek out those leaders)   A way of viewing and sorting industry groups and sectors   A tool to compare (preferably on percentage terms) fundamental statistics of a stock with others in it’s group   Links enabling you to access any current news about your chosen stock   The ability to maintain and organize a watch list   A source of information relating to institutional investors and their action (or lack of it) in the stock that you’re considering.   Some of this overlaps and...

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Stock Investment Strategies

Investment entails spending or setting aside money set for future financial gain. Investment may include purchasing financial assets such as stocks, bonds, funds, or insurance. Stock investment is one of the ways in which people put their money aside in order to gain more money later on. Before investing money in acquiring stocks, it is very important to know why you are buying a particular stock in the first place. Doing so allows the investor to be able to act accordingly once the stock price falls dramatically. Having and knowing the right reasons behind buying a particular stock gives the investor a better idea as to what to do when stock price goes down. Stocks bought as momentum decisions may be sold quickly upon price falls, but if bought as undervalued stocks, then investors may want to buy even more stocks. Employing a stockbroker may be very helpful for novice stock investors, as they can provide relevant information regarding stock purchases and sales. Stock Investment Styles There are six main stock investment styles. The efficiency of each style depends on the reasons and the needs of the investors. Brother-in-law investors rely on the advice of other people when making stock purchases and when selling the stocks themselves. The people they trust do have access to great stock options but must act quickly to optimize the great scoop. Technical investors...

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Basics of Stock Classification and Investing

Investors usually classify stocks into groups and sectors according to the type of their business. The idea is to compare one business type with the other for the purpose of investment. Though there are about a dozen sectors, investors mostly group them into two broad sectors: defensive sector and cyclical sector. Defensive sector Defensive sector stocks primarily include utilities and consumer staples. Since the supply and demand in consumer goods usually do not undergo any major changes, therefore the prices of the defensive stocks do not follow the overall market trends. This is because the people do not stop using energy or buying their daily consumption needs. The result is that the companies dealing with consumer staples do not take direct hits immediately, though they may see changes in supply and demand in the long run. While it is true that the defensive stocks do not suffer losses due to downward trends, it is also true that they do not climb up during Bull runs. Since the demand level of the consumers does not rise with the uptrend of the overall stock market, the supply level, therefore, does not rise. As the name suggests, the defensive stocks provide a kind of cushion during the market crashes. Cyclical stocks Nearly all other stocks are covered under the cyclical sector. Some of the stocks in this sector include basic materials, capital...

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Invest Stock Or Invest Forex?

Right now, the market thinking is that stock markets and their potential to deliver profits have been cut short of late. No one is surprised that the shrinking economy has just a direct impact on the stock market itself, and this means that more and more investors all over the world are liquidating their investments and pulling out in fear that the red marks on the stock market will just snowball and bankrupt everybody. Of course this is not true for now as these companies have their own safety nets, coupled with the government bail outs to increase investor confidence. Still, this is not a good time to come in – not with Congress and the Obama administration still being at odds of what should be placed and where. Knowing this, it is time to go back to the fundamentals of trading – with a commodity that will always have the potential to rewards. This of course Is the forex market, whose liquidity, large payoffs and minimal bureaucracy have attracted a whole host of retail investors, who normally avoided it due to the large volatility issue within the market. Now, more players see this volatility as a sign of the market being strong, as when contracts stabilize and there is little movement, people do not make money and then the market becomes stagnant. Invest Forex because it is the...

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Know About the Ideal Climate For Investing in Stocks

When an investor is fueled by greed, failure and economic ruin usually usually wait at the finish line. Investment needs to be done as per the rules of investment as applicable to the market, sometimes taking advantage of the ideal climate in the exchange. But the climate in the market is mostly volatile. You have to find out what situation and strategy is ideal for you. An intelligent investor need not get panicky at the behavior of the masses as for buying and selling. One has to carefully understand the implications of the prevailing climate and take decisions on economic considerations, not on the basis of emotions. Take the present economic scenario. Is this the ideal climate for investing? Nine out of ten persons dealing in shares will not advise you for investment adventures. On the contrary panic selling of the shares is happening through the world. A huge amount of volatility is seen in the market. Majority of the investors believe that the bull party is over. But take counseling from the long-term investors. Most of them will make use of this market correction as an opportunity to buy and accumulate blue chip shares. Even in the present crisis related to investments, is there a major change in the fundamental state of the economy? According to researchers and analysts, absolutely not! A prudent investor will not entertain a...

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Investing in Trash Company Stocks

Refuse is a serious issue in any society, about as serious as cleaning the water and air, even more so to some degree, especially if you study your history with regards to the plague. This is why it is considered one of the better long-term hold stocks to have in one's portfolio. Today people are living much longer generally due to cleaner living environments, proper trash disposal, sewer treatment plants and a relatively clean civilization. When building owners cut costs to keep their investments you have a reasonable risk when you lengthen the time between trash interviews, even worse when the garbage companies cut corners or in one case an Environmental Company which is Canadian based allowed untreated chemicals into where they should not be. Cutting corners to save money. But when it is this serious why is it done? Well for one people want something for nothing. Part of this reasoning of these companies is the stock gambler wanting exponential growth and demanding returns that do not exist under current thinking in a matured market such as trash and decline in economic downturn. It was always considered a safe industry no matter what the economy was doing, yes it is safer than most, but not so safe as to be unaffected in economic recession as we saw in 2001-2003. No matter how much you improve the efficiencies there...

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Are You Thinking About Investing Internally In Stocks?

One of the big challenges an investor faces on a daily basis is market risk. Working hard to satisfy your investment goals while at the same time limiting your risk and exposure to volatility takes a solid strategy, reliable information, and a patience like no other. Sure, we've all heard stories of the home run hiring investor who laid his money down and made a "killing" in a stock. These are the kinds of tales that grab the headlines and attract the interest of the "fast buck players." "Steady as she goes" would be a more realistic view of how to invest. It is difficult to just wait for an investment to climb in value, but without patience and the fortitude to keep a long-term mindset, you're probably going to miss out on a solid move. Using what could be called a butterfly approach and jumping from one hot stock tip to another can be the riskiest investment play of all. Being patient is not enough though. If what you are investing in is oozing with risk, patience may not be the key to success. You devote your patience to solid investments and those with limited risk. If you are an investor or contemplating investing in the various financial markets and instruments available, you must get into the flow of information. Catching a thirty second or two minute report...

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On-line Investing, Riskier than Bingo! The Elderly and Financial Risk Taking

The meek shall inherit the earth, at least if it is not lost to margin calls. In a world full of opportunities comes an equal number of risks. On-line investing has brought Wall Street into the study, kitchen, living room, or where an investor wishes to trade. For the elderly, this can be a problem. While many may think of rocking chairs on the porch or shuffle board on a cruise ship, the real retirement for many professionals means trying to manage their investment portfolio to maintain income and growth. For many, that also means taking an active role in this process. This is not Bingo, and due to the very nature of the process, can be much like gambling, addictive and risky. One of the longest running pieces of financial advice has been carefully carefully managing your investments in terms of a financial triangle. This triangle is made up of varying levels of financial tools or instruments and each layer closer to the top reflects additional risk. This triangle starts with a bottom denoting safe, risk free investments such as treasury obligations or bank certificates of deposit. As the type of investment increases risk, and therefore a potentially greater return or loss on invested capital, the higher on the triangle it goes. General belief is that each level as a percentage of a person's investment portfolio should be...

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Here's How to Pick a Penny Stock That Can Make You Some Serious Money!

One of the most exciting types of stocks to invest is penny stocks. Although some people shy away from them because they are worried about the risks, these stocks offer a tremendous potential for large gains. Of course, the key is knowing how to properly invest in them. First off, the definition of what a penny stock is differs depending on who you ask. Some people will define a penny stock as any stock that is priced under $ 1.00 – others go as far as to say what anything under $ 5.00 is a penny stock. In my opinion, I look at any stock under $ 2.00 as a penny stock. I disagree with going any higher as there are several well established and fairly healthy organizations that have stock prices between $ 2 and $ 5. Now – how do we pick a good penny stock? This is obviously the question that we want to be able to answer in order to make the big bucks. It's important to understand that many of the penny stocks do not have the same accounting regulations as stocks that are listed on the larger national exchanges. As an example, there are over-the counter penny stocks known as "pink sheets" that have fairly loose standards that they need to follow. Because of this, I do not pay as much attention to...

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