Stock Trading Is For You

By Michael Swanson

Stock trading can be a confusing process and should be approached carefully. Many traders use the NASDAQ or the New York Stock Exchange (NYSE), although there are other markets as well. Trading stocks requires a certain amount of luck and skill, not too mention a little knowledge about the financial world.

Of course, you don't have to be a professional in the financial sector in order to learn how to trade stocks and get into the 50 hottest stocks. Thanks to the internet, one of the emerging trends is day trading. People from all over the world can trade stocks electronically, buying and selling them at various points throughout the day in hopes to gain a profit at the close of the market day.

Day trading was done by banks and financial institutions in the past. Now days day trading can be done by anyone that has the knowledge and money to invest. It is imperative that the investor be familiar with the stock market. Most people can get involved with day trading from the comfort of their own homes. A profit can be seen from day to day and has proven to be an interesting way of creating a generous income.

Of course, money that is spent on trades can be subject to commissions. If you are using a brokerage house to buy and sell stocks they will charge you commissions to carry out your orders. They can charge per trade or give you a certain number of trades for a set price, it depends on their policies.

All brokerage houses are different when it comes to the amounts that they charge. Often, there other fees associated with stock trading. It is always a good idea to read the fine print in regards to signing up with a brokerage.

Building capital is the main reason that people invest in stocks. The money can be used for long term investments such as saving for retirement. Day traders often prefer the more immediate consequences of their actions. Possessing a certain amount of knowledge, luck and skill can be very important during the stock trading process and keeping your gains bigger than your losses is obviously the main objective. - 23208

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Basics of Candlestick Chart Patterns

By Brad Morgan

One of the key indicators that aid traders interpret candlestick charts are candlestick patterns. Candlestick patterns are helpful for making uncomplicated systems that will advise you regarding the compilation of a trend in order for you to start trading.

Candlesticks have a structure that demonstrates the open, high, low and closing price of a currency, stock or commodity over a stretch of time. You can typically pick out the duration that you want to show.

5 minutes is universal for day traders but you might opt for 15 minutes in some circumstances. For longer period trading you can choose longer periods.

The body of the candle characterizes the difference between the open and close points. If it is white (or green/blue on a colored chart) the open is the lower boundary of the rectangular body and the price marked up during the period you are reckoning. If it is black (or red on a colored chart then the opening price is the top boundary and the price tumbled.

Vertical lines pointing up from top and down from the bottom are referred to as wicks. The highest spot the price ever hit is the top of the upper wick division. The low is the bottom of the lower wick.

This kind of analysis assists the trader to know at a glance if values slashed or shot up during the analysis time frame. Bearish tendencies or rise in price are depicted by green or white candles while bullish temperament or fall in price would be pointed out by red or black candles.

The relationship of open and close values to high and low values can be noted immediately. Then there is a solid candle minus a wick.

It's called a Marubozu pattern. Prices never went more or less than the opening and closing prices in this scenario.

The high value as opening price and low value as closing price is represented by the red or black candle. Contrarily, green or white candle signifies the low was the opening price while the high was the closing price.

A longish body means a relatively consistent movement either up or down. A lengthy wick positioned on either bottom or top would signify a reversal.

For accurate trend identification a candlestick needs to be studied in conjunction with the others that preceded it. Then you can fabricate more complex candlestick patterns indicating the anticipated trends to come. - 23208

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Beginning Investors and The Stock Market

By Patty Berker

It is important to understand that the stock market is a place where you can lose all your investments. Yes, that is unlikely, but you should never invest money in stocks that you cant afford to lose. This last couple of years has seen many people lose their valuable retirement savings and they are now in a very difficult position.

There is no book that you can go out and buy that will tell you how to put your money in stocks with 100% safety and this should be noted by anyone interested in entering the stock market game. Stocks are risky and for that risk you have the opportunity of higher gain than something safer such as bank CDs.

It seems that in the last decade or so, the stock market has become much more volatile. It is routine to see swings up and down in the market of 200, 300, and even 400 points were in past years that was unheard of. Part of the reason for this is the Internet and the ability for anyone to trade stocks at a push of a button. Rather than investing in stocks for the long term, some investors have become day traders and trade in and out of stocks very rapidly. Likewise, the Internet has made it very easy and effortless to make trades and you dont even need to talk to a real person like you did in years past. This has led to many more trades being placed and much more volatility in the market.

If you are new to investing and stocks, you might end up scratching your head trying to learn all the terminology. Anyone who watches any of the business shows on TV will hear a lot of technical terms thrown around which will probably be very confusing. You must realize and accept that you will never be able to learn everything overnight.

Your best bet is to get a book on the basics of stock investing and then start to learn the vocabulary and terminology. Know that this will be a long term endeavor but one that will be worth it. If you go about things slowly and keep learning from the ground up, you will soon be in a position where you will understand what is going on in the stock market. You will then start to understand what type of stock investments you are interested in and what types you will want to steer clear from. - 23208

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Take Your Business Public: How To Find a Consultant That Can Make The Process Fast and Easy

By James Scott

So many companies dream of going public to raise massive amounts of capital, as set up for an exit strategy, to make acquisitions with stock and for many other reasons. While your intentions may be pure and with genuine motives, you're entering shark infested waters of boiler rooms, crooked attorneys and underbelly consultants who have made careers off of taking well intentioned executives just like you for a 24 month rollercoaster ride while they take every penny you have as your company shrivels up like week old road kill.

Just and honest consultants in the 'public offering' industry are as rare as the illusive white elephant. This industry exists in a cesspool surrounded by rose gardens; from afar it looks amazing and an image of a dreamland but get up and close and the sludge and odor are enough to make you run and hide. So what do you look for in a consultant? The best consulting firms are the 'boutique firms' with minimal overhead that keep a low profile and are made up of 3 or 4 'partner' consultants.

These firms typically have the experience of working with the large consulting groups but for one reason or another have decided to leave and go out on their own. The great thing is, these small groups typically have massive contacts and process your entire public offering in-house. Offering a complete turn-key solution that is managed in-house offers a huge advantage because there is accountability and you can actually build a relationship with the people that are making your dream of a public offering come true.

These 'boutique' consultants will usually stay onboard as growth consultants for the life of the company in exchange for modest fees and a pre-IPO or pre-OTCBB equity position. The large firms will hack you out at the knees and gouge you with fees while they take massive amounts of equity in your company which takes away your bartering chip when you need to offer more stock to the public to raise capital.

The small firms will also work one on one with you to show you how to use your stock to grow through acquisition and other nifty ways to use stock to grow. Seek out the boutique consulting firm and save the attorney for spot audits. Hold on to your cash. Why pay outrageous fees to lawyers when you can pay 60% less with a small consulting firm that will add all the bells and whistles for free and actually get your stock trading, usually in half the time? - 23208

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What is the Stockmarket and What Does it Do?

By William Wilkie

Perhaps you are thinking about doing some personal investing on the stockmarket. Well, that is fine but don't blindly jump in; you need to really understand how the stockmarket works before you can learn how to recognize a good stock to invest in. In this article I will briefly explain what stockmarkets actually do.

The 2 Main Functions of the Stockmarket

There are in fact two main and completely different functions that the stockmarket fulfills. One is the primary market and the second is called the secondary market.

The Primary Market

The primary market is when companies issue new shares and they are offered to the original shareholders or to the public. One way to understand the primary market - think of the analogy of a new car dealer. You pay money to the dealer for your new car and this money goes to the manufacturer minus the dealer's mark-up. A similar scenario goes on in the primary market; the money raised by the new stocks goes to the company minus any costs.

Normally, companies offer new shares to expand; like constructing a new factory, to develop a new product line, or to refinance debt. This can be defined as the raising of capital by sharing the risk in return for possible higher profits.

The Secondary Markets

The secondary markets are where the public can sell and buy shares and stocks. With the car equivalence, we now consider a second hand car dealer. If you buy a second hand car from the dealer, none of that money goes to the manufacturer of the car. In its place, the second hand car dealer has paid for a used car from the owner and then sells it to another owner.

This way of bringing sellers and buyers together is how the secondary market of the stockmarket functions. Just as you can buy and sell a car, you are also free to buy and sell shares at will. This is the liquidity of the markets or the way to turn assets into cash. In fact, with no secondary market there would not be a primary market.

What Causes the Markets to Move?

In essence, you could boil down the reasons that markets move to either the rational or the irrational factors. But of course it is a lot more intricate than that. However, there are only 3 key reasons for the markets to move and these are the irrational group approach of the investors (swings of pessimism to optimism regarding risks), the fundamental factors (as an example - depression, inflation or government policies), and the technical factors (such as investment trends or the popularity of a product or industry.)

Knowing what causes the markets to move are important factors to take into consideration both for short term and long term investing. You must take into consideration all of the factors as a whole and not just one factor if you want to take minimal risks. Learn and gain knowledge about the stockmarket before jumping in and you may make a better return on investment than merely keeping your money in a fixed interest security or savings account. - 23208

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William reviews personal finance products and services. Visit his site to learn about the best Identity Fraud Protection program from TrustedID.