Saturday, June 15, 2013

The Secrets Of Successful Stock Trading

By Kent Lawson


The business of purchasing stocks has been around for a long time. It is shocking to find out that many individuals don't fully grasp or know the basic principles of the stock market and the ways to purchase common stocks of businesses from around the world.

You want to buy what no one wants, and then sell it when everyone wants it. In order to do this, you need to learn as much as you can about stock trading. Accomplishing this boosts your odds of making money.

Knowledge is the vital thing to trading. Use the internet and sites like Yahoo Finance to learn as much as you can about a company. Choose a broker that allows you to do research on companies at no cost and even set up play money practice accounts to test your investments before you spend any money. Discount brokers are very reasonable in trading costs and offer many free services for research and reading charts and graphs. Full service brokers generally provide suggestions and professional recommendations and assistance but at a higher cost to the trader. I recommend you go the cheaper route of going with an online brokerage firm because slippage, the fees brokers charge, can substantially erode away your profits.

I like to use sites like Bloomberg in my catalyst research. A catalyst is a news item that will push a stock up. I love to make use of websites like Finviz to screen for stocks as well as to chart them. Another good internet site to use is TheLion because you can see the stocks that everybody else is talking about or endorsing.

The board may opt to repurchase shares of the company that are currently on the open market. Once these shares are purchased, the stocks are destroyed. This approach can lead to investors becoming very wealthy over time. This decreases the number of outstanding shares for a company making each share held a little more valuable. When a corporation does the complete opposite, they issue shares to raise money, a stock will drop as the quantity of outstanding shares rises making each share held less valuable. Refrain from buying stock in a company in which a board is issuing shares to get money. Money should be raised from business operations and not on the backs of shareholders.

If you are planning to enter the realm of stock market trading make sure to begin small and build on success and knowledge. Read and research as much as possible about the stock exchange and trading. Find useful advice from experienced investors and watch financial programming from a number of media sources. You can learn to become a good trader with experience, knowledge, research, and patience.




About the Author:



No comments:

Post a Comment