Archive for March, 2010
Stock Trading Using Margin… Any Tips?Suggestions?Advise?
I have ten gran in stocks but want to use margin to get to 20K (i’m not sure if this is possible)
Yes, it is possible. You generally have to apply through your brokerage and state your occupation and salary just in case so they know.
Buying on Margin is more risky since you are borrowing. Be sure to check your brokerage’s interest rates and their margin requirements and when they might do a margin call.
If you do get into trouble, I would advise selling your stock before raising more cash for your account.
what is the GOP’s stance on Education, Immigration, Trade, and the War in Iraq?
I need details about the party platform’s stance on these different issues. It needs to be current, preferably from the 2008 election. Please supply website addresses I can cite. Thanks!!! 
Education — GOP tends to be more pro-education reform, berates Teachers Unions, more likly to support standardized tests and having ineffective teachers fired.
GOP favours immigration, although they tend to believe illegal immigration threatens state integrity and advocate a crackdown on it, however John McCain and George Bush were both very much supportive of illegal immigration reform and prvoidng a path to citizenship
Ever since the Petraues plan radically improved the sitaution in Iraq, Republican and Democrats have converged on this issue. Republicans were intent on finishing the job and leaving Iraq only when the govt was strong enough to support itself.
The Republicans tend to favour free trade to a greater degree than Democrats.
How does P/E ratio of stock affect the investor?
Hello.
I’m trying to learn all I can investing for beginners. Through some reading though i’m at a point where i’m trying to understand the P/E ratio of stock.
I understand it to the point where you basically end up buying over-priced or under-priced stock. But how does this affect me? How will I see higher returns if i buy under-priced stock?
Any information is welcome. Thank you!
The P/E ratio of a company in isolation doesn’t tell you much of anything. It can be useful in comparing companies within the same industry, as it can indicate companies with potential for improvement (low relative P/E) given the market economics of that industry, or companies priced at a premium (high relative P/E). One thing to note; when you see P/E’s published on the web, the denominator is usually a consensus estimate for current year EPS. Using prior year actual EPS can create some strange P/E ratios (can be negative if there was a loss, or outrageously high if a company had extraordinary losses etc.)
One measure you might want to look into is the market/book (M/B) ratio. That is, the market value (market cap)/book value of equity. M/B in isolation does tell you something about the company. A M/B ratio greater than 1 indicates that the company is expected to have earnings in excess of the cost of equity (required return by investors) over time (i.e. creating value), anything less than 1 is just the opposite. It can also be compared to companies within industries, just as the P/E can. However, do not interpret a company with a high M/B as a sure fire winner – a high M/B indicates that investor expectations for value creation are already high, and the company will have to deliver on those expectations just to return the cost of equity (between price appreciation and dividend yield) and will have to exceed those expectations to deliver excess returns.
The Importance Of Forex Trading Education
If you want to succeed in any endeavor, you need to have persistence and dedication. Even your daily life requires it because if you’re the type of person who is quite lazy and wants to goof around, you’ll attain nothing of importance in your life.
Ever since you were a little kid, you were already taught with the value of good education. From your nursery days, until you finally graduate in college, you have dedicated many years to get a good education. But it doesn’t end there.
Each time you encounter a new endeavor, activity, or thing, the first to come into your mind is to learn about that particular thing or activity. So you see, no matter what we do, education continues. And this is especially true with forex trading.
Statistics have shown that over 94% professional traders lose a lot of money every day in forex trading alone. But don’t be discouraged; in fact why not use that piece of information to strive hard to get a forex trading education.
The financial market changes by the minute, or even by the second. Who knows which currencies are a good buy and which aren’t. Most traders, specially the starters, believe that they can predict what is about to happen in forex trading. But you see there is more to predicting the market; you need to educate yourself still.
First things first, you must have a forex trading system which contains the key elements, namely: money management, risk, and execution. If you have a well developed system, which gives a lot of weight to money and risk management, over time you can actually carry on draw downs while expecting consistent returns.
Forex trading is not just about buying low currencies and then selling them when the price is high. Profitable traders can teach you more than just discipline, because you also need to learn about detachment. Ask a professional trader to show and guide you how it is done.
You must have the proper mindset in order to be a successful forex trader. To achieve this, your capital should have a positive return. It is not all about profits especially when you’re just a beginner. You should first determine if you have a reasonable return of your capital.
Most successful forex traders have undergone some sort of education. Since forex trading is a high risk endeavor, it is not wise to instantly jump into the trade.
If you purely rely on experience and instinct, you may not likely succeed in forex trading. But if you have undergone a forex trading education, you are more capable to handle demands and the stress that comes along with the trade.
Through forex education, you can learn all about the market mechanics, reading the forex chart, how software works, how it is closed, the right time to bid, and many more. It is the best possible route to take before plunging into forex trading.
The FX market is volatile, and you can understand the situation better if you know how to read charts. It will be easier for you to understand the different reasons behind these shifts, and can greatly help in minimizing the risks that you are going to undertake.
The very first things that you’ll learn in forex trading education are the basics. It includes margin concepts, order types, rollovers, bids, and leveraging. Aside from that, you can also learn about fundamental and technical analysis. And lastly, you should learn about trading psychology which can teach you about patience, discipline, and commitment.
It is also good if you can learn about the financial market’s history. And knowing the past mistakes made by other traders will teach us how to avoid such circumstances. You can get a forex education online or in a traditional class.
Having a forex education is an added advantage compared to those who haven’t had any. This is especially helpful for starters, and even for those who have been in trading for some time.
Most professional traders highly recommend some form of forex education. With a little background and knowledge about the trade, it is a sure fire way to succeed in this line of trade. Instead of making wild guesses, why not take a forex education class, and make educated decisions when doing the actual trade.
Stephan Uys
http://www.articlesbase.com/finance-articles/the-importance-of-forex-trading-education-680157.html
Stock Trading Tips > Online Stock Market Trading – Day Traders Tips
It’s no secret that online trading can be a very lucrative, yet highly competitive field, and the truth is that the stock market doesn’t care if you are an experienced or a beginner trader.
The rules and the opportunities are the same for everyone, so either you are going to make money when you pick a stock and make a trade or you are simply going to lose it in favor of the more seasoned ones.
As a stock trader your homework is all about studying and testing different market strategies that can help you take advantage of stocks while at the same time protect your gains.
Just always keep in mind that a good strategy is simple and practical. Complicated stock systems will always make you slow in your decision making process or confuse you from the start.
A trader must always read as much as he can. There is simply no other way to prepare one self for this difficult yet incredibly rewarding activity, but to read and put into practice as much ideas as you can, at least by paper trading first.
The are a lot of books on the subject that pretend to help you, however many of them where written 6 or 8 years ago and that kind of makes them obsolete in this constantly changing field.
Fortunately there are some practical stock trading sites on the web where you can access proven trading strategies that are easy to implement. One of those sites is ChatHotStocks.com
They focus on stock trading methodologies that can help you identify and take advantage of certain stocks with momentum, while limiting your risk.
Visit them today and improve your stock trading potential in 2009.
Stock Tips
http://www.articlesbase.com/currency-trading-articles/stock-trading-tips-gt-online-stock-market-trading-day-traders-tips-700176.html
Value Investing Basics for Beginners
First off, what is the definition of value investing? Value investing is an investment strategy or approach where the investor buys a stock that is selling below the company’s true value, or underpriced. Value investors buy discounted stocks with the belief that the price will reflect the company’s true value in the future. Value investing goes against the herd that chases the hottest, fastest rising stocks of the moment for a longer-term ride of returns.
The most famous value investor (and richest person) in the world is Warren Buffett, who has generated over 20% average annual returns since the 1970’s. He has prided himself on finding “good deals” on good businesses. This stock investing strategy was mostly created by one of Buffett’s teachers, Benjamin Graham. He wrote a book on value investing called The Intelligent Investor. This 600+ page book, much like a textbook, gets into the nitty gritty details of his investing strategy and how he came up with it.
Basics of Value Investing
1. Find a Great Company- Whether it’s a company you buy products from, buys products from you, employs you, or if you just love the company, check it out. Also, if it’s in an industry that you know very well than you should look into it. You want to love the company you are going to own. It has to be GREAT, not just good or okay.
2. Proven Business- How long has this company been around? It’s hard to value a company when it has only been in business for a year. Usually a company that has been successfully in business for 10 or 15+ years makes a good candidate. The companies must be proven, successful businesses to be considered for investment.
3. Survivability- Ask yourself, “Will this company be around in 10, 20, 30 years?” If you cannot see the company being around in ten years, you have no business investing in their stocks; after all, you are buying a piece of that company. Say you and three of your friends want to buy a new $1200 HD-TV. Would you want to pay $400 for your stake if you thought the TV was going to die in two years? I hope not.
4. Uniqueness- What is unique about this company? Do they have some kind of competitive advantage? Are they better at some aspect of the business versus the industry? Are they the first in a market? Do they have any special patents, copyrights, or trademarks? These are the kinds of questions to answer when finding out about a company.
This article should give you something to work on for a little bit. Stock investing can be confusing and difficult. Just slow down and think of some really great companies that you’d be willing to OWN not just hold the stocks of. Remember, value investing is all about finding good, solid companies that are priced below their true value.
Stay tuned for Part II because I will be posting more on Value Investing Basics. Congratulations! You now know the groundwork that value investing in stocks is all about. Making you a better, more informed investor is my goal.
Jared Schneider
http://www.articlesbase.com/investing-articles/value-investing-basics-for-beginners-673786.html
Do you know anything about stock market day trading?
If you have experience or links to information on stock trading would you mind sharing your tips and beginner info and a good place to get started for the individual investor. I know it’s a risky business and you need all the information possible to have some skill before beginning. Thanks for any info!
most people loose money bacause they do not have a strategy and money management rules in place
if u dont have disipline dont even start u will loose all your money
many people do trade and have become very very rich so it can be done
What has education to do with the ecconomic miricle in Ireland?
I have heard that education reform is responsible for Ireland’s great economy. Yet look at James Joyce that guy was really educated. I easily trade my grandfathers Irish high school education form my American university education. And these two examples came way before any education reform.
Sorry should read "would easily trade…."
Oh sure the old education system was great and those generations had an excellent education, Ireland always had ..Heck it was known as the land of saints and scholars
But they had very little or nothing to apply it towards in Ireland in those times instead they generally emigrated and contributed to some other nations economy. But Ireland was ready when the new technology came along this time thanks in no small way to a former Irish leader Charles Haughey he had Ireland primed and waiting and when things started coming together it was in a very big way
Is investing in stocks a good idea for a beginner with 5K ?
I am new to stocks, never invested or brought any stocks before.
I have around 5K cash.
Is it good to get some stocks with this 5K ?
1) How to buy stocks ?
2) Which stocks are good ? where there is a better yield for sure ?
3) Can I buy stocks myself online ?
4) Can I buy and sell my stocks anytime online ?
If you’re a rookie in investing or stocks, go to
www.finance.yahoo.com.
Open up a portfolio without using real money. You can give yourself as much or as little money to try out the market. The stocks you want to focus on is consumer staples, consumer discretionary, and healthcare. These are DEFENSIVE stocks that will survive through good and bad times. Most of my positions are in these stocks. Some names include 3M, Procter & Gamble, Kimberly Clark, Exxon Mobil, Walmart, Costco. Everybody’s got to eat and wipe their butts regardless of the state of economy. Many of these companies survived through the Great Depression.
That’s the benefits. You can sleep at night knowing your money is doing well. There are NO guarantees that you won’t lose money. It’s just that these stocks are the best. They pay good dividends too.
Then once you’re comfortable and test the waters of the market, you can finally put some real money in. Go to Scottrade.com. They’re excellent for beginners.
how i can get free stock intraday trading calls and share tips on yahoo messenger?????
I haven’t heard of that type of service offered for free.
If you want, you can check out http://clearstation.com. This is a website/forum that offers a lot of information, both fundamental and technical with regards to stocks.
Good luck!
http://jsforex.blogspot.com
- Jim Syyap, Managed Forex Accounts