Stocks Basics 202: What does Investing on Stocks mean?

By Mara Hernandez-Capili

Investing on stocks will make your money work for you or in other words- your money will increase without you doing anything. In this way, you can focus on building your other assets and earning other forms of income. This article is to equip you with the knowledge on the basics of stocks investing.

What does investing on stocks mean and how is it different from investing your money in the bank? Investing on stocks is when you buy a share from a publicly listed company. This action will make you part-owner of that company and enjoy exclusive privileges such as voting rights. Your money will increase in percentage as the company enjoys higher profits at a given time. However, you may also lose a certain percentage or your money may have the possibility of not earning anything if the company suffers losses.

Investing in banks offers your money with maximum security but alongside this is your money may experience lower to no returns because of the taxes involved and market inflation rates. The argument is always on this presentation: banks to maximum security but lower to no returns, stocks to greater risks but higher percentage returns. It all boils down to the type of investor you are, whether you are open to risks or you are more comfortable knowing that your money is secured although you dont make it (your money) work for you.

Investing in stocks left some people think twice about it since you allow your investment to operate on involved risks. If youre a just starting and would like to try your hand at stocks, it is advisable for you to start investing with an amount you are most comfortable in losing (if ever it happens). It is advisable to play it safe first especially if youre a beginner and practice on investing with a capital where you are most comfortable with.

Whether you have plans on investing in stocks now is the right time to do so when you are still young and have a lot of time to recover in case you lost. - 23217

About the Author:

Mara Hernandez-Capili is a writer and a researcher on Business and Finance. Learn more on how to increase your financial I.Q. by learning about emini trading today. Start earning extra income by making your money work for you through the emini trading system. "Start your journey to financial freedom not tomorrow, not next week, but today.

How to Use Your Poker Skills In Trading

By Rick Amorey

All financial investments have risks; this much is true. About ninety percent of people who go into trading will end up losing money. So what is it exactly that you're doing wrong? Simply put, these people do not have a good perspective of the situation. In a way, going into investments is kind of like playing poker.

The game of poker is a good simulation of how the investing world works, and my theory is thusly: The correct strategies in winning or getting to the end at least, are similar in both cases. This may sound nontraditional, I admit, but just hear me out with this.

When one plays poker, you won't get very far into the game if you just hold back and wait for the right hand to invest all your chips in. Obviously, even the best hands have an amount of risk in it, for one thing, and you may still end up losing all your chips in that single go. Also, going in with guns blazing, may end in a small yield of extra chips. It's not worth it.

But betting like mad on every hand that you get is not a good idea, either. In fact, do this and you aren't very bright. Constantly exposing the majority of your chips to high risk will only lead to a sudden burnout; you'll be off the game before anyone else, losing all your chips in a few fell swoops.

What then, is the right way to play poker? Anyone who plays often enough will quickly surmise that getting ahead in poker requires more than considering just your own hand and chips. You need to get a feel for the hands and chips of the other players around the table, too. Once you get a good feel for the game, you'll know that putting in all your chips in one hand is a bad idea. The way to go is to invest little by little, spreading out your game to good, but not necessarily great, plays.

The same principle applies to trading. The game table is essentially the market, and how it affects your investments. You'll need to avoid having all your capital placed onto one investment. Spread it out into a number of decent deals, and then if one fails, you won't be as devastated. - 23217

About the Author:

Do not fall for get-rich-quick schemes that are rampant on the Internet! With the help of Emini Trading, you will learn a disciplined, solid methodology that will get you to consistently earn more and more with trading. Be a part of the Emini Trading System now!

The Right Way to Buy Cars and Trucks from Government Auctions

By Mark Allen

Do Government Auctions really sell cheap used cars and trucks? Yes they do, every day. Actually, it's fairly easy to find decent, inexpensive used vehicles; often for just a few hundred dollars. Thousands of cars and trucks are sold like this every day.

If you're looking to buy cars at a government auction and get the best deal, then there are some things you need to know about. In this article we will discuss both the positives and negatives of government auctions. I will offer to use some long-term strategy which should pay off time and time again because it will teach you how to purchase cars and find the truly best deals from Government auctions.

In government car auctions, good things come to those who wait. This means waiting for the right kind of car. Also, waiting for the right bidding atmosphere. If you want a car too much, and you're caught up in bidding wars, you will pay more than you should. Finally, you must be patient and do the research on the car you want to purchase. You must be able to eye test each car to determine if it runs well or if it's in bad condition.

The point to keep in mind is that if you wabt a great deal on a car and you need it right away, you probably shouldn't be looking for it through Government auctions. Great deals abound, but patience is imperative. Now we'll talk about how to locate and find great deals.

First of all, a lot of Government auctions have high-quality vehicles with low mileage. And the best part of all, is they are under market value. You will not find these in any car lot. The reason for this is that a lot of these vehicles have been used by government agencies.

Government agencies generally take great care in maintaining the condition of their vehicles. Every few years, they sell these vehicles and replace them with newer vehicles, therefore giving you a great deal. These "fleet sales" are liquidated through the various Government auctions.

In addition to buying a vehicle for personal use, you can find a great deal on a car, purchase it and then resell it yourself for a profit. You can do this over and over. This is another benefit of buying through Government car auctions.

Remember that those who are most profitable with government auctions are those who are patient. Be patient to find the best deals on good cars, and consider other strategies besides just the initial purchase, such as reselling your vehicle. Government auctions are some of the best places to find great deals if you know how to do it. Keep in mind the tips given in this article, and you'll do extremely well! - 23217

About the Author:

Before you buy anything, check out Government Auction Site Reviews, a review site of government auction membership sites.

Learn how to Buy Stocks

By Cassie H. Todd

Do you want to buy and sell stocks in order to make some extra money? Do you have any money that you could use to invest in stocks? You must have some cash first before you can start buying any investments.

If you are short on cash and have no money to invest, you need to stat saving. Come up with a certain amount each month that you can save and put towards your investments. For example, you could save $200 a month and put it towards investing in stocks.

You need to know what you are doing before you put any money anywhere. First, you must learn all about stocks and how to research them. Then you need to go ahead and research them. Don't buy stock in any company you aren't completely familiar with.

To research stocks, you need to read through their annual reports and you need to study their charts and ratios. If you don't know what any of this means and you can't read financial statements, learn this first.

When it comes to actually buying the stock, it's easier than it has ever been. You don't have to worry about getting the stock you need. You don't have to find the stock, you just need someone who will find it for you.

Start by setting up an account with a brokerage firm. For those with large amounts of money to invest and who want lots of help with their investments, you should get an account with a firm that specializes in giving a lot of help and that will meet with you in person.

If you are looking to save money and want to handle it all yourself, you can go with an online brokerage firm. Online brokerage firms specialize in offering you discounted commission rates which mean you can earn even more money.

Learn what you need to learn, do your research, and have your account set up. Then, when you know what you want to buy, don't wait, just buy it! Don't wait because you could be forfeiting gains. - 23217

About the Author:

If you want to learn how to buy stocks easily,first you need to know the basics of stock investing. Then you can be well on your way to making money in the stock market.

This Simple Forex Strategy Is Amazingly Profitable

By Michael Jones

Are you a relatively new trader looking for a solid forex strategy?

Many newer traders face the challenge of trying to identify the trend on the intra-day level in order to make their Forex strategy work.

This problem can be alleviated by using the 200 EMA - (Exponential Moving Average).

In surveys it was found that Forex traders all around the world vote the 200 EMA as one of their top indicators. So that is reason enough to use it considering the psychological effect it can have once price starts getting within spitting distance of the 200 EMA.

Using The 200 EMA Strategy

To use this very powerful Forex strategy, create charts on 3 time frames:

A 4 hour chart

A 1 hour chart

15 Minute Chart

On each of the charts in the 3 different time frames, add the 200 EMA indicator and choose a color, e.g. red, to make it easily recognizable.

One suggestion is to use the vertical tile feature and have the 3 charts vertically side by side so you can easily eyeball the position of price relative to the 200 EMA. The candles may appear a little distorted but that really doesn't affect your strategy.

Now scroll through the various currency pairs you like to trade.

Currency pairs with a smaller pip spread, i.e. less than 10 on most platforms, come to about 9 different pairs.

Here they are:

EUR/USD | GBP/USD | USD/CHF | USD/JPY | EUR/JPY | USD/CAD | AUD/USD | NZD/USD | EUR/CHF

Search through and see if price is going against the 200 EMA on the 15 minute chart on any of the currency pairs.

So for example, look at the EUR/USD pair and note the position of price relative to the 200 EMA on the 3 time frames.

Price is what we call 'bucking the trend' if it is well above the 200 EMA on the 4 hour and 1 hour charts but below it on the 15 minute chart.

The overall trend is up, price has temporarily gone against the trend and is currently in a retracement.

Using the fundamental trading principle of "buy the dips in an uptrend", "sell the rallies in a downtrend", look for a suitable entry point.

In the example given above you would look for an opportunity to buy the EUR/USD, perhaps watching for a candle signal that price has exhausted it's downward momentum, bucking the 15 minute chart 200 EMA and will soon resume it's upward momentum.

This simple exercise only takes a few minutes and can be done a few times during the day.

Take Note When Price Bucks The Trend

Sit up, take note, when you see price going beyond the 200 EMA on the smaller time frame, the 15 minute chart, while on the larger time frames, 4 hour and 1 hour, it is well beyond the 200 EMA in the opposite direction. Seize the change to make a high probability trade and bank some profits.

See for yourself how effective this simple Forex strategy is. Practice it for a short time and then, once convinced, add it to your Forex trading tool kit. - 23217

About the Author:

Get a useful free tip on how to use the MACD indicator for safe trading here: Free Forex Strategies Learn an important lesson from Mohammed Ali regarding Forex Training: Curency Online Forex Trading

The Essentials of technical Analysis: Part II

By Jack Haddad

Charting:

The time frame used for forming a chart depends on the compression of the data: intraday, daily, weekly, monthly, quarterly, or annual data. Traders usually concentrate on charts made up of daily and intraday data to forecast shorterm price movements.

The shorter the time frame and the less compressed data is, the more detail that is available. While long on detail, short term charts can be volatile and contain a lot of noise. Large sudden price movements, wide high-low ranges and price gaps can effect volatility, which can distort the overall picture. Long term charts care good for analyzing the large picture to get a broad perspective of the historical price action. Once the general picture is analyzed, a daily chart can be used to zoom in on the last few months. Four of the most popular methods of displaying price data are by the following charts: line bar, candlestick, and point & figure. The line chart is one of the simplest charts. It is formed by plotting one price point, usually the close. For that matter, I don't favor them because I personally consider the open, low, and high to be as important as the close in technical analysis. However, at times, only closing data are available for certain indices, thinly traded stocks and intraday prices. Bar charts are perhaps the most popular charting method. The high, low, and close are required to form the price plot for each period of a bar chart. The high and low are represented by the top and bottom of the vertical bar and the close is the short horizontal line crossing the vertical bar. On a daily chart, each bar represents the high, low, and close for a particular day. Weekly charts would have a bar for each week based on Friday's close and the high and low for that week. Bar charts can be effective for displaying a large amount of data.

Using candlesticks, 200 data points can take up a lot of room and look cluttered. Line charts show less clutter, but do not offer as much detail (no high-low range). The individual bars that make up the bar chart are relatively skinny, which allows users the ability to fit more bars before the chart gets cluttered. If you're not interested in the opening price, bar charts are an ideal method for analyzing the close relative to the high and low. In addition, bar charts that include the open will tend to get cluttered quicker. If you're interested in the opening price, candlestick charts probably offer a better alternative. The beauty of Point & Figure charts is their simplicity. Little or no price movement is deemed irrelevant and therefore not duplicated on the chart. Only price movements that exceed specified levels are recorded. This focus on price movement makes it easier to identify support and resistance levels, bullish breakouts and bearish breakdowns. Contrary to this methodology, Point & Figure charts are based solely on price movement and do not take time into consideration. The topic on candlestick charting is broad and beyond the scope of this article. This method of charting originated in Japan over 300 years ago, and have become quite popular in recent years. For a candlestick chart, the open, high, low, and close are all required. A daily candlestick is based on the open price, the intraday high and low, and the close. A weekly candlestick is based on Monday's open, the weekly high-low range, and Friday's close.

Trendlines:

Trendlines are an important tool in technical analysis for both trend identification and confirmation. The general rule in technical analysis is that it takes two points to draw a trendline and the third point confirms the validity. An up trendline is formed by connecting two of more low points. The second low must be higher than the first for the line to have a positive slope.

Up trendlines act as support and indicate that net-demand (demand less supply) is increasing even as the price rises. A downtrend is formed by connecting two or more high points. The second high must be lower than the first for the line to have a negative slope. Down trendlines act as a resistance and indicate that net-supply is increasing even as the price declines. - 23217

About the Author:

Dr. Jack Haddad, MD, MBA has been professionally trading the stock market since 1997 and had an annualized return of 39.4%. Dr. Haddad has recently launched MD Capital Management, an Investment Fund with Charles Schwab. The fund utilizes option hedging techniques to generate returns while minimizing risks. For more info, visit Jack's online group: MD Capital Management.