Online Trading

Share Trading Tips For Beginners

2009-10-28T23:44:00.000-07:00

If you are new to share trading, putting the pieces together can be quite challenging in determining where to start and how the whole share trading system works. The following steps may point beginners in a right direction. However, bear to mind that this is not legal advice. Use this information at your own risk.

Where to start in share trading?
To start trading on Australian stock market (ASX), you need an online trading account with a broker (e.g., ComSec or eTrade), a cash management account that is linked to this account, a minimum $500 for the initial purchase, and some common sense.

If you happen to be already with Commonwealth bank, it make sense to setup a trading account with ComSec. This can be done online, but requires printing out the forms and sending them to the bank manually, in order to verify your signature and other details. The bank will then email you your login details and post the share trading account terms and conditions.

Once you are able to login, you will need to transfer some funds to the cash management account connected to ComSec. You will need to check what is the minimum trading amount and brokerage fee - this information is available on their website.

What share stock to buy?
There are two ways to invest. Invest long into blue chip companies (large stable corporations) or invest short into start-ups or smaller companies. If you are prepared to wait and prefer to avoid risk, investing in blue chip companies may be a better option. Your stock will not grow fast, but it will grow. The goal here is to get a better return than you would normally get from keeping your cash in a high interest bank account.

However, if you are keen to really test out high return investment possibilities, investing in a least known companies may do the trick. In the current economic environment there are many companies with share price below 1 cent. If the share price goes up to 1 or 2 cents, it means that you'll get 100-200% return on your investment. And if often happens in one day.

What to look out for?
Your online share trading account will provide you with real time share prices and historical data for listed companies. Before investing in a specific company it is suggested to collect sufficient amount of data suggesting immediate price growth or at least, price growth in the near future. There are some indicators that normally suggest that.

First, it is suggested to review historical graphs. It is absolutely paramount to establish a high probability that the company is able to deliver better results in the near future. It is important to check what level the share price got to in the past and then research what company actually did during that time.

Second, it is suggested to review the company's past and recent stock market announcement. ASX listed companies are obliged to disclose all information that affects the share price. These include various financial statement, annual reports and operational and exploration plans and results. Compare the graphs to the stock market announcements. Once you determine a pattern, all you'll need to do is to wait for a similar announcement, invest right away and they see if the company behaves the same way it did in the past.

Share trading can be fun and it can be very exciting. Start small, be quick to learn and good luck!

Stock Investing Tips

2008-07-14T01:30:00.001-07:00

The prices of stocks never remain stable. They keep rising and falling. The investors make profits or losses due to the fluctuations in the prices of the stocks.
When you invest in a stock, you may feel distracted if the price of your stock starts going down. This can result in a panic situation in which you would want to sell the stock and buy another, more promising one. These kinds of feelings are very natural particularly if you are a new investor in stock trading.
Invest disposable money
If you are new to stock trading, you are likely to make mistakes and lose money. You must be sure that the money you invest is disposable or in other words, you must have some spare money which you can afford to lose. Or, at least you should be able to hold on through the tough times.
Quite possibly the fall in your stock, though seemingly prolonged, may yet be temporary. The stock may have strong fundamentals and may rise up once the existing market forces that have pulled it down go away.
Meanwhile, you get another promising investment opportunity. Can you afford to invest additional money while your existing investment lies locked for some time?
Learn while you earn
While these risk factors should be considered seriously, there are ways you can avoid such situations to a great extent. You can earn while you learn without suffering losses that may make you uncomfortable.
Start cautiously. Invest small and do not try to become rich overnight. The initial time in stock trading should be spent in studying the nuances and getting a feel of stock trading. You do not have to buy penny stocks simply because you cannot afford to invest in good and high value stocks.
There are stock brokers who can initiate you into stock trading with minimum risks. You can go for real time trades with negligible investment packages such as $3 or even $1.50. You can enter buy and sell orders, both market and limit orders and also set order expiration options.
If you can afford to invest, but are afraid to invest in high value equities due to a lack of experience, you may invest in ETFs as a fill gap arrangement till you acquire some mastery in investment in individual stocks.
ETFs or exchange traded funds are index traded funds. An ETF tracks the value of a stock index or the market as a whole. ETFs are traded like stocks. They represent a basket of securities that are traded on an exchange. Since ETFs are similar to stocks, they offer similar flexibility. They are liquid funds and can be bought and sold throughout the trading day and also allow intraday trading. ETFS provide a wide range of investment options. They can help investors build a diversified portfolio that is easy to track.
Traders have the ability to short or buy ETFs on margin. They have low annual expenses and are tax efficient due to SEC regulations. As a stock trader you are less exposed to risks associated with trading in single equities. You do not have to pay stamp duty. The annual management costs are low. You can enjoy flexibility in the timing of purchases and sales. ETFs are available online. You can check the price movement daily. Since the indexes constantly drop poor performers and pick up the good ones, a trader is always investing in the best performers that the market has to offer. Therefore, your index tracking ETF delivers returns in accordance with the general market trends.
Moreover, you have to pay minimal expenses on trading. It is, therefore, convenient and cheap to buy and sell the ETFs. Since they follow indexes like the NASDAQ 100 or the Standard and Poor 500 to track a bunch of different stocks, they are automatically diversified. The great benefit of buying ETFs is that you can actually buy hundreds of different stocks with every dollar you invest. You have to pay to your broker only a low cost investment plan fee that ranges from $1.50 a trade to $3 a trade.

Stock Investing Tips

2008-07-14T01:30:00.000-07:00

Five Stock Investing Tips To Make Money Online

2007-07-17T23:54:00.001-07:00

Are you looking to make money off the stock market? Everybody wants to invest in stock and become rich, but they do not always know how to do that. Here are some stock investing tips that will help you to earn money trading stock online.

Before we begin you should know exactly what will be needed so you can trade stock. The first thing you will need is a computer and the internet. Trading stock can be done over the phone but the internet helps you to trade stock the best possible way. The other thing you will need is a broker for who you will be trading through.

Now that you know what you will need lets take a look at some stock investing tips online:
1. Be able to read charts. Reading charts is an essential part of trading stock online because charts will help you to pick the stocks that are rising and the stocks that are falling.

2. Never buy the stock that is going down in value because you think it will rise. It may seem like a good idea but it rarely works. Go for the company that is consistently rising. What this means is you should not try to buy low stock and sell high, it does not work well. Try to buy a low stock that is expensive, but that you know will not lower in value anytime soon.

3. Try to find a broker that has a relatively low commission. If you have a broker who is charging an expensive amount of commission you should leave him/her because most of the money you make off of buying and selling stock would go straight to there commission.

4. Know when to sell and buy. This is a hard thing to do and usually comes with experience but if you know when to sell your stocks, before they drop in value, and you buy stocks, before they rise in value, you will be able to eventually buy low and sell high in a since.

5. Do not listen to the media when it comes to dealing with stock. When trading stock the market goes up and down to quickly that by the time the media tells you which stock to sell or buy the moment has already passed. Work by yourself when you are dealing with stock and you should be able to gain more money.

Five Stock Investing Tips To Make Money Online

2007-07-17T23:54:00.000-07:00

7 Stock Market Tips You Can't Live Without

2007-03-05T23:07:00.000-08:00

Every day there are a dozen new HOT stock market tips that guarantee your financial success. Every day there are hundreds if not thousands of people that jump on the bandwagon, and every day, each of those people are disappointed.

When it comes to popular stock market tips, there is no golden ticket to striking it rich. So I'm going to show you how to make your own HOT guidelines that will ensure you stay on the right course-the one that leads to success.

Stock Market Tip #1: Play Your Game Develop a set of rules that you can follow. Whether they include some of the tips in this article or are strategies you've always lived by, STICK WITH THEM. An inconsistent, but more importantly an undisciplined trader will never make a profit. Chasing stock market tips won't make you money. Your rules are your money. Again, there will always be hot stock market tips that ensure success, but if you continue to whole-heartedly practice your own tips, you'll see profits in no time.

Stock Market Tip #2: Control Your Risk There are many adventurous traders out there…and those are the ones that loose their fortunes. If you always look out to protect your capital base you'll ensure your financial safety. Now one of the most important stock market tips I can give you is to continue to let that capital base grow. That way, even if all of your investments fail, you won't be jeopardizing your previous profits. As a general stock market tip, never risk more than 3% of your portfolio on any one trade.

Stock Market Tip #3: The High Road in Cutting Your Losses Things happen. People lose money…LOT'S of money. So don't be one of them. Basically this stock market tip means don't be stupid. If one of your investments turns sour don't stick around hoping it will right itself. Have a set target loss percentage where you can cut and run. Again, it's about being disciplined, remember? Set it no higher than 15% of your opt in, and you'll have a save exit with every trade.

Stock Market Tip #4: The Sky's the Limit In contrast to Stock Market Tip #3, if a stock is rising beyond belief, don't jump out in fear of it suddenly falling back to reality. Instead, ride it out as long as humanly possible. This is how the biggest and most talked about gains are made-this is how FORTUNES are made. This stock market tip will ensure that you give yourself the best chance possible of striking that gold mine. Now if the stock does in fact start to fall, go ahead and opt out. It'll be worth more to you to risk that little loss in the end for that huge gain you'll make.

Stock Market Tip #5: Back to School You know the saying, “Learn one new thing every day?” Do it. Seriously. Our stock market is ever-changing, diversifying, and adjusting, and YOU need to do your homework. It takes a lot to stay on top of it all. So if you come across something that you're not familiar with just look it up. If you think you know it all…go LOOK for something. One of the easiest ways to accomplish this stock market tip is to know all of the trading vocabulary. That's also the easiest way to ensure you're prepared to take on any obstacle that comes your way.

Stock Market Tip #6: How to Bring Your “A” Game Stock market trading isn't only about successful financial advancements. Well actually it is, but you're not going to be able to do that every day if you don't have the emotional strength to pull it off. This stuff is supposed to be fun. If you're not at your best psychologically, you're not going to be focused, you'll make poor judgments, and most importantly you won't make money. Just think about the meaning of this stock market tip. If you're enjoying yourself, it's no longer work, so you are free to “work” in a mentality that will, in fact, play to your strengths…and wallet.

Stock Market Tip #7: Staying Above the Curve You don't have to make a fortune with every trade you make. You don't have to become a millionaire at the end of every trading day. Here's stock market tip #7: You won't. The people that shoot for that glory every day are the ones that are losing fortunes, not making them. What you need to do is play above the curve. Don't be average, but don't be extraordinary.

Extraordinary has WAY too many risks to worry about. Fortunes are made gradually. It takes discipline and consistency…something the “average” trader lacks.

Discover the Biggest Trading & Investing Online Mistake

2006-10-09T23:50:00.000-07:00

Any online investor / trader seeks an excellent off or online future trading career opportunity. Despite this goal, did you know 95 percent of all traders go broke within the first two months? Why do investors lose vast amounts of wealth in one or more of the following markets - option trading, forex trading or currency trading, stock trading, future or commodity trading etc... in such a short amount of time?

Most online investors / traders interact in devastating forms of thinking, which convinces the mind to the point where the trader believes that an educational enhancement ability that develops superb market research skills is not important. On the contrary, if trading is not treated as other business opportunities, the new sales and trading job will cripple the trader. You must develop a purposeful or industrious undertaking to learn how it works. Would you conduct business as a brain surgeon with out a college or university degree? I do not think so; similarly, the same course of action holds true for trading success.

The secret of my success required an earnest and conscientious effort on my part. This action accomplished something to the point of pure boldness; in other words, no matter how boring or non-important you think learning how to trade may be, it must be done to insure a success story.

Every successful company needs a business plan. Yet, when most people take a gamble on the securities industry, they fail to put a trading plan into place. In other words, they end up going on an emotional roller coaster, governed by how the market performs.

Without a trading plan, the majority of traders approach the financial market in an inconsistent manner - i.e. they follow their whims. The typical pattern may include the following:

Day 1 - experiment with option trading
Day 2 - randomly select any online trading brokerage firm.
Day 3 - try out future trading
Day 4 - read about oriental trading then decides to go into that direction
Day 5 - change mind completely and try currency trading or forex trading
Day 6 - try day trading then in midstream chooses to hold trade for the long term
Day 7 - venture off into stock trading
Day 8 - dabble in commodity trading
Day 9 - give up because you think it is a hopeless cause.

This example is meant to look confusing. Similarly in the illustration above, this trader may use one set of indicators one day, and the next day they will throw these indicators out the window and take on a completely set of new rules.

Unfortunately, with no consistent approach, your trading decisions, governed by emotions, are doomed to failure ......... here is why.

When faced with losing money in the market, what do traders do? Usually, they end up rationalizing to hold on to a losing stock. The driving force behind this is that they do not want to be wrong. They let their ego get in the way of making profits.

LOOK! Let us set the record straight. THIS IS A FIRM FACT - not every trade will be a winner. You will not make the maximum profit out of every trade. There is no Holy Grail trading system! You just need a trading plan, which matches your personality.

When I say trading plan, I am not talking about fundamental analysis or technical analysis specifically, I am talking about setting up a simply a set of guidelines to follow regardless of what stock selection method you use.

In fact, through a study of successful traders, I found there are many different trading methods for entering a security. I have seen people use technical analysis; fundamental analysis even astrology to determine when to enter a trade. Despite these varied entry methods, one component remains the same among successful traders... they all have a trading plan that suits them.

In fact, successful traders have a written plan and my friend this is the essential component to their success. I guarantee that investors who stick like glue to a trading plan are the ones who make NOT LOSE MILLIONS of dollars in their activities of online investing.

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