Stock Market Investing Articles

Finance » Stock Market Investing | By Nicholas Swezey @ Monday, 14th January 2008 @ 5:09 PM

There are several reasons why it is dangerous to trade penny stocks. These stocks can seem very attractive to beginners so please read the warnings below. Definition: Penny stocks are defined as stocks with a price per share of less than five dollars (or one dollar in some cases). Many of them trade on the OTC/BB (Over the Counter, Bulletin Board) stock exchanges, where they are sometimes known as Pink Sheet stocks, and they might have symbol extensions like .PK or .OB. Volat... more...

Finance » Stock Market Investing | By Steve Selengut @ Thursday, 10th January 2008 @ 4:07 PM

Every correction is the same, a normal downturn in one or more of the Markets where we invest. There has never been a correction that has not proven to be an investment opportunity. You can be confident that the Federal Reserve, as hypnotized as it is with keeping inflation under control, is not going to cause either a financial panic or a prolonged recession with tight money and high interest rate policies. While everything is down in price, as it is now, there is little to worry about. When th... more...

Finance » Stock Market Investing | By Scott Johns @ Wednesday, 9th January 2008 @ 1:11 AM

The SEC defines a penny stock as a security that is low priced and speculative that is traded in places such as the OTCBB and Pink Sheets. Its not so important if a stock is traded on a major exchange or not since what really makes a penny stock what it is, is the price and not necessarily the exchange which it is traded on. Its anybodys interpretation what exactly is a penny stock since there is no standard figure. Its generally accepted that its anything trading under a dollar. Go figure right... more...

Finance » Stock Market Investing | By Charlotte Buelow @ Tuesday, 8th January 2008 @ 11:18 PM

Have you ever opened up to the Business Section of the newspaper with complete awe? Do you find the stock market daunting? If you have ever thought about investing, but felt intimidated, read on. Here are some definitions to basic stock market jargon. AMEX: The American Stock Exchange is the third largest stock exchange by trading volume. Baby Bond: Issued bonds holding par values less than $1,000. Bull Market: A period during which the stock market prices are rising. ... more...

Finance » Stock Market Investing | By Abhishek Agarwal @ Tuesday, 8th January 2008 @ 8:49 PM

You feel their presence every minute. When we speak about business or trading ,what comes to mind is the idea of people in costumes engaged in a telephone conversation. They work tirelessly from one end to another, often call to each other. You see all these figures and symbols on monitor screen They install data terminals. What you imagine is in fact the stock exchange. A stock is fundamentally shares of a company. An exchange is where bonds, stocks and other securities are traded. Tha... more...

Finance » Stock Market Investing | By Steve Selengut @ Monday, 7th January 2008 @ 10:09 PM

During every correction, I encourage investors to avoid the destructive inertia that results from trying to determine: "How low can we go?" and/or "How long will this last?" Investors who add to their portfolios during downturns invariably experience higher values during the next advance. Yes, Virginia, just as certainly as there is a Santa Claus, there is another market advance in our future. And despite a still much too high DJIA, we are in the seventh month of a correction. (T... more...

Finance » Stock Market Investing | By Steve Selengut @ Monday, 7th January 2008 @ 9:58 PM

Whatever happened to the Stock Market Cycle; the Interest Rate Cycle; Baby Jane? How did Wall Street get away with pushing these facts of financial life down the basement stairs? Most investors, I'm beginning to believe, and all financial advisors, media representatives, and market gurus have abandoned these fascinating curves for the comfort of a straight-edged twelve-month playing field... simple, yes; realistic, not. I have to wonder if things would be different with a more investor-frie... more...

Finance » Stock Market Investing | By Holly Franklin @ Monday, 7th January 2008 @ 9:46 PM

Financial spread betting works using the world markets such as the FTSE 100, Dow Jones and the Hang Seng and how it will react in a given day. It is easier to explain financial spread betting by example. On any given day you can find out on the web or by placing a call to a spread betting firm to find the "spread" on the FTSE 100. They will give a spread such 6350-6500 (6500 to place a "buy" or "up" bet and 6350 for a "sell" or "down" bet). If you ... more...

Finance » Stock Market Investing | By Sam Perdue @ Monday, 7th January 2008 @ 2:52 PM

Option trading provides a really awesome opportunity for you to make a profit in the stock market. The use of stock options in the market is quite often misunderstood and is not as difficult as many people would like you to believe it is. Some of the basics of trading should be known by you so that you can be on the road to trading successfully. There are different levels of risk associated with trading and the level of risk comes with different types of positions. There are basically two... more...

Finance » Stock Market Investing | By Sam Perdue @ Monday, 7th January 2008 @ 2:50 PM

There is quite a difference between buying stocks outright and purchasing stock options. When you purchase an option, you are betting on the direction of the market. However, option trading has very different characteristics than purchasing shares and there is a lot of terminology and tricks of the trade that a new trader should learn in order to successfully trade options. There are two types of options - calls and puts. Purchasing a call option means that you have the right (however, no... more...

Finance » Stock Market Investing | By Jimmy Cox @ Thursday, 3rd January 2008 @ 12:49 PM

At a great penny worth pause awhile; many are ruined by buying bargains. -POOR RICHARD A corporation is an artificial entity, created by law, and endowed with certain rights and privileges, among which is the right to issue shares of ownership called "common stock." The amount of stock authorized is stated in the corporate charter, and the amount to be issued and outstanding is determined by the board of directors. Such shares of stock represent ownership of the total assets an... more...

Finance » Stock Market Investing | By Scott Johns @ Wednesday, 2nd January 2008 @ 5:25 PM

There has been a lot of talk about how 2008 will turn out financially. The word recession has been thrown around a lot perhaps for shock value but maybe not. Lets pretend for a moment that these predictions of s recession are accurate. How would that effect the stock market? Well, the stock market will always be there even if the numbers change. However, in a recession, everything is relatively a penny stock. So even though penny stocks have received bad press they will always be there during go... more...

Finance » Stock Market Investing | By Garnett Johnston @ Friday, 28th December 2007 @ 9:55 PM

The stock market is often seen as a complicated financial system for those white collar professionals who buy and sell stocks day in and day out. However, the ability for anyone to trade on the stock market is there and now more so than ever with the availability of computer software and websites to make the whole process so much easier. But where does the average joe make a start in such an investment minefield. Imagine for a moment that you have just started learning to drive. When you ... more...

Finance » Stock Market Investing | By Ron Ianieri @ Thursday, 27th December 2007 @ 3:05 AM

When purchasing a time spread, the investor should pay attention to not only the movement of the stock price, but also the movement of volatility. It plays a very large roll in the price of a time spread, which is an excellent way to take advantage of anticipated volatility movements in a hedged fashion. Option Volatility Since the time spread is composed of two options, the investor should understand the role of volatility in options as well as in time spreads. Let us start with opti... more...

Finance » Stock Market Investing | By Zainul Anuar @ Tuesday, 25th December 2007 @ 2:13 PM

Investors are trying their very best to make money in the stock market. But most forget to consider Return on Equity (ROE) quite seriously in their quest to find the best stock picks ever. They are more concern with its popularity among media and analysts than the stock itself. Whenever the stock does not perform as expected, they start to blame others than accepting their own mistakes. Let see if ROE worth to be considered. What is ROE? ROE is the investment return that sh... more...

Finance » Stock Market Investing | By Ron Ianieri @ Tuesday, 25th December 2007 @ 1:48 PM

Since the Straddle's profit potential depends on its price from purchase time to expiration, the investor should be aware of the factors that affect the Straddle;s price. Several factors affect a Straddle's price. The first is, of course, stock price. The stock's price dictates the value of both components of the Straddle - the call and the put - affecting the Straddle price as a whole. As the stock price moves, the prices of the call and the put will fluctuate via the current Del... more...

Finance » Stock Market Investing | By Abhishek Agarwal @ Tuesday, 25th December 2007 @ 2:37 AM

The internet has proved to be a great boon to mankind with the evolution of online facilities and services to aid literally any task under the sun. It is a great storehouse of knowledge, an online educational institution for every subject and discipline. Thus even the field of business is greatly benefited by what the internet has to offer. Stock trading which has gained popularity in the marketing sector can now be operated online, to and from places all around the world. The fol... more...

Finance » Stock Market Investing | By Abhishek Agarwal @ Tuesday, 25th December 2007 @ 2:36 AM

There is more to future charts than just patterns on the wall. They can be a crucial aspect in a company's success. Through these charts, investors can predict the future outcome and trends on the market. Make sure you are aware of the terms used to describe the graphs to be able to make full use of them. The first question many would ask is on what a price chart basically is. It is, in fact a lineage of prices that you plot against time intervals. It can therefore be call... more...

Finance » Stock Market Investing | By Abhishek Agarwal @ Tuesday, 25th December 2007 @ 2:35 AM

For any normal person, trade is nothing more than the give and take of products or services within an agreed fixed price. for instance if you have bought a package of candy for $ 2, that is trade. You purchased a $ 45000 four-door sedan, then thats trade . You purchased a $ 4.5 million home, and that also is trade. once you have purchased the good or product from the seller for what ever price you have set the deal, that is trade and then the deal if finished. But for traders on vari... more...

Finance » Stock Market Investing | By Abhishek Agarwal @ Tuesday, 25th December 2007 @ 2:35 AM

On average, a person can become a success if the merchant will adopt a mechanical approach one hundred percent. Emotional judgements are to be minimized, as they can ruin the work of a trader. If you encounter difficulties in the exchange, all the more reason for you to get in the mechanical approach . A hundred percent mechanized approach simply means that you will find the crucial step in the quest for a perfect system, which will help resolve the risk of being confronted. Thi... more...