Wednesday, August 6, 2008
Market of the Day
The sliding commodity prices, esp. crude oil, caused the commodity and mining stock a great suffering across the region yesterday. But this morning, almost all major world indices show good sign after FOMC announced that it would keep the Fed funds rate remain at 2%. Most stocks started the day off moving up with out stopping. Asia stocks continue to rally except KLSE.
Monday, August 4, 2008
Instruments traded in the Stock Market
The instruments traded in the stock market are ordinary shares, preference shares, warrants, bonds, loan stocks, options, Unit Trust, etc.
Among all the different securities traded in the market, ordinary share is the most popular securities traded.
Ordinary Shares
When you own some ordinary shares of a company, you are known as a shareholder and you own part of the company. You are entitled to a portion of the profits after deduction of expenses, taxes and payment of debts. The profits you received are known as dividends.
Among all the different securities traded in the market, ordinary share is the most popular securities traded.
Ordinary Shares
When you own some ordinary shares of a company, you are known as a shareholder and you own part of the company. You are entitled to a portion of the profits after deduction of expenses, taxes and payment of debts. The profits you received are known as dividends.
Sunday, August 3, 2008
Stock Trading - Red Flags to Look Out For Before You Sell
The primary motivation at the back of every investors mind for buying any stock is profit, whether you choose to sell immediately or wait for a longer time before you sell to access your profit is a matter of choice, a decision I think you should take responsibility for instead of leaving it in the hands of your broker.
There are clues ever present in the capital market that tell you when to sell your stock, when fully understood can save you from loses and can also make you get the benefits for which sake you invested your money in the first place. You have to constantly be on the look out for these red flags or signs that remind you it is high time you bail out of certain stocks in your portfolio.
Let's get you started, shall we!
SELL WHEN YOU REACH YOUR TARGET PRICE
Before you buy any stock, you must settle in your mind by reason of sound facts available to you a target price that you intend to sell your stock for an appreciable return. When you reach your projected price, once you reach your objective that is the best and most reliable time to sell.
SELL WHEN YOU OBSERVE FUNDAMENTAL CHANGES
Changes that affect the fundamentals of a company must be taken very seriously. When you observe that the fundamental of a company is weakening or depreciating in terms of profit capacity, when a company profit potential has reached its peak and it starts declining is time to consider offloading your shares in such a company.
SELL AFTER THE CLOSURE OF REGISTRAR
If you are a stock trader, one who buys and sells stock actively in short durations; you might consider selling after the closure of registrar. If your goal of dividends and possibly bonus scrip in a company has been achieved, in other words, you bought into a stock because you want to avail yourself of the dividends and possibly bonus, after closure date of registrar is a good time to sell, because other stock traders like you will also be selling which can cause the price of the stock to rally down.
The bottom line of stocks trading is acquainting you with the appropriate time to buy a stock and the most suited time to sell, that in my humble opinion is the crux of stocks trading.
Visit: http://stocktradingrevolution.blogspot.com/ for more information.
Article Source: http://EzineArticles.com/?expert=John_Efetobor
There are clues ever present in the capital market that tell you when to sell your stock, when fully understood can save you from loses and can also make you get the benefits for which sake you invested your money in the first place. You have to constantly be on the look out for these red flags or signs that remind you it is high time you bail out of certain stocks in your portfolio.
Let's get you started, shall we!
SELL WHEN YOU REACH YOUR TARGET PRICE
Before you buy any stock, you must settle in your mind by reason of sound facts available to you a target price that you intend to sell your stock for an appreciable return. When you reach your projected price, once you reach your objective that is the best and most reliable time to sell.
SELL WHEN YOU OBSERVE FUNDAMENTAL CHANGES
Changes that affect the fundamentals of a company must be taken very seriously. When you observe that the fundamental of a company is weakening or depreciating in terms of profit capacity, when a company profit potential has reached its peak and it starts declining is time to consider offloading your shares in such a company.
SELL AFTER THE CLOSURE OF REGISTRAR
If you are a stock trader, one who buys and sells stock actively in short durations; you might consider selling after the closure of registrar. If your goal of dividends and possibly bonus scrip in a company has been achieved, in other words, you bought into a stock because you want to avail yourself of the dividends and possibly bonus, after closure date of registrar is a good time to sell, because other stock traders like you will also be selling which can cause the price of the stock to rally down.
The bottom line of stocks trading is acquainting you with the appropriate time to buy a stock and the most suited time to sell, that in my humble opinion is the crux of stocks trading.
Visit: http://stocktradingrevolution.blogspot.com/ for more information.
Article Source: http://EzineArticles.com/?expert=John_Efetobor
Stock Trading - 5 Kinds of Stocks You Must Understand
Basically there are two groups of stocks, preferred and common stocks. Preferred stocks are comparable to bonds because their returns are fixed. Preferred shareholders get first dibs on dividends in good times and in assets if peradventure the company goes under. In other words, the risk of a preferred shareholder is limited, they are mainly interested in dividends. Very few companies issue preferred stock.
When investors talk about investing in stocks, they are referring to common stocks. The vast majority of investors are found in this class, common stockholders take on a few dimension of risk compared to preferred shareholders though common share holders command more voting power at annual general meetings.
The five kinds of stock in discussion fall under common stocks. An understanding of these stocks will greatly enhance your stock trading prospect. I don't know your goal when it comes to investing, one thing I know however is that you will be able to find one among the five stocks that fits your goal and temperament.
GROWTH STOCKS: Are stocks with great potentials for growth, they grow faster than the economy and sometimes than the stock market itself more often than not. The risk level is minimal; investors are attracted to it because they have good earning growth over the long run. Investors in this stock know that over the long term their portfolio is secured.
INCOME STOCKS: Investors who buy into this kind of stocks do so because it doles out a large portion of its profits. Income stocks pay as much as 60% to 80% to investors as dividends compared to other stocks. Income stocks are almost immune to changes in the market because investors are confident that they will receive dividends.
BLUE CHIP STOCKS: Derives its name from the poker game, the blue chips usually have the highest value. They are sector or industry leaders. They are big companies that have been around for a long time, they have strong fundamentals. They pay steady dividends and most times bonus scrip. Though their prices don't grow very much, they are good options for retirement portfolios; they are best suited for the long term.
VALUE STOCKS: Are under priced stocks that has great potential for growth; look at it this way, value stocks sell below their real value which make them very attractive. If you compare the low price of value stocks to its earnings, you will understand why stock traders are attracted to it. They are good options for investors interested in growing their portfolio.
RECURRING STOCKS: These are stocks whose performances are affected by the swings of the economy. When the economy goes up or down a recurring stock responds likewise. Their performance depends on the dictates of the economy; therefore, the best time to invest in recurring stocks is when the economy is performing well.
Your investment options ultimately boils down to you knowing what your goals are in the first place, that way you can hold a combination of these stocks in your portfolio for the purpose of balance.
Visit: http://stocktradingrevolution.blogspot.com/ for more information.
Article Source: http://EzineArticles.com/?expert=John_Efetobor
When investors talk about investing in stocks, they are referring to common stocks. The vast majority of investors are found in this class, common stockholders take on a few dimension of risk compared to preferred shareholders though common share holders command more voting power at annual general meetings.
The five kinds of stock in discussion fall under common stocks. An understanding of these stocks will greatly enhance your stock trading prospect. I don't know your goal when it comes to investing, one thing I know however is that you will be able to find one among the five stocks that fits your goal and temperament.
GROWTH STOCKS: Are stocks with great potentials for growth, they grow faster than the economy and sometimes than the stock market itself more often than not. The risk level is minimal; investors are attracted to it because they have good earning growth over the long run. Investors in this stock know that over the long term their portfolio is secured.
INCOME STOCKS: Investors who buy into this kind of stocks do so because it doles out a large portion of its profits. Income stocks pay as much as 60% to 80% to investors as dividends compared to other stocks. Income stocks are almost immune to changes in the market because investors are confident that they will receive dividends.
BLUE CHIP STOCKS: Derives its name from the poker game, the blue chips usually have the highest value. They are sector or industry leaders. They are big companies that have been around for a long time, they have strong fundamentals. They pay steady dividends and most times bonus scrip. Though their prices don't grow very much, they are good options for retirement portfolios; they are best suited for the long term.
VALUE STOCKS: Are under priced stocks that has great potential for growth; look at it this way, value stocks sell below their real value which make them very attractive. If you compare the low price of value stocks to its earnings, you will understand why stock traders are attracted to it. They are good options for investors interested in growing their portfolio.
RECURRING STOCKS: These are stocks whose performances are affected by the swings of the economy. When the economy goes up or down a recurring stock responds likewise. Their performance depends on the dictates of the economy; therefore, the best time to invest in recurring stocks is when the economy is performing well.
Your investment options ultimately boils down to you knowing what your goals are in the first place, that way you can hold a combination of these stocks in your portfolio for the purpose of balance.
Visit: http://stocktradingrevolution.blogspot.com/ for more information.
Article Source: http://EzineArticles.com/?expert=John_Efetobor
Subscribe to:
Posts (Atom)