What a Beginner Need To Know About Stock Trading by Agwu Chukwuemeka

Historically, the era of stock market started in 1863 with Wall street in New York city with the establishment of New York Stock Exchange. Over the years, the existence of stock market in nations has become a key indicator of its level of economic development and sophistication.

The stock exchange also known as the capital market is a platform where you can buy and sell shares, bonds, stocks, debentures and other capital market instruments. It could be a trading floor or through an electronic device. A share is what one has in order to become a member of a company. Share could be acquired through public offers also known as primary market, or from the trading floor of the exchange. Buying and selling of share is normally done through a stock broker.

A stock broker is a dealing member of the stock exchange who provides services to anyone who wants to buy and sell a share. If you buy a share of a company, you become a member (a shareholder) of that company. To be a shareholder or a member means that you share in the profit of the company. Companies issue shares which represent the money which the shareholders (as members of the company) put down when the first invested in the company.

Owners of shares (shareholders) are presumed to own the company. If the company makes profit, the shareholders have the right to share of the profit which is declared for distribution. A slice of the profit is called dividend. It is not a fixed amount.

People invest in shares for many reasons. It may be for the dividends, bonus shares or for capital appreciation. Whatever may be the investment objective, most investors have their eyes on how to maximize the returns on their investment.

Agwu Chukwuemeka Odi is an expert in the field of stock trading. Visit http://stocktradinginseconds.blogspot.com for more information on stock trading.

Proven strategies for picking stocks by Agwu Chukwuemeka O.

Investment in stock is worthwhile, but if you don’t have strategies in picking the stock to invest in, you are doomed. Many investors forget that the term investing in itself connotes the planting of seed in expectation of growth or harvest. In recent times, it seems focus has actually shifted from the long term or immediate gains we get on stocks. It is better to look for great companies to invest your money in their stocks rather than looking for great stocks to invest in. Many stocks perform well for some time and then turn around to give investors nightmares if they are not supported by good companies. But if the stock of a good company is not performing well now, you should take it as a temporarily phenomenon because good companies will always present a profitable stock in long run. This is the reason why investors have to be careful with the market during bullish sessions. When you see all prices going up, you may not be able to tell which is backed by strong numbers and which is not until you begin to take a look at the companies on their merits.

You should also look at the macroeconomic factors because it can take a bite out of your portfolio. Do not be surprised in years to come that some small focused and dynamic companies of today will make attempts to take over the great companies that you are presently looking at. There are also some companies that are undervalued which happen to be in the industries that can turn into a spectacular performer. If you intend to take advantage, you should invest in the stock of those companies. Carefully looking and accessing these stocks can enable you determine which of the companies stock to invest in.

Also, one should take time to check the composition of the management of any company he or she wants to invest in their stock. This will enable you know the credibility of the people on top as they can contribute positively or negatively to the fortune of the company.

Agwu Chukwuemeka Odi is an expert in the field of stock trading. Visit http://stocktradinginseconds.blogspot.com for more information on stock trading.

Boosting Your ROI In Stock Market Investing by Jack Benson

Everyone wants a high return on their investment in stock market trading. First let's consider the basics and the ways to earn the most on your investments.

Return on Investment

Usually referred to as ROI, the Return on Investment in stock market investing is the profit earned from selling a security or other asset divided by the amount of the original investment. With stocks, your ROI is expressed as an APR (annual percentage rate).

Your ROI is all the income you make on the stock, which also includes profit earned from selling the stock. When the sales price plus any other income is higher than the price you purchased the stock for, your ROI is positive.

When the sale price plus any other income is lower than the price you bought the stock for, you have a negative ROI (which is obviously what you want to avoid). In fact, as a trader in the stock market, your goal is a high ROI, not just a positive one. To achieve a substantial ROI, consider the following methods to boost your current stock investing efforts.

Know What You Are Purchasing

To ensure a high ROI in stock market investing, garner as much information as you can about the company you want to invest your money in. A bit of basic analysis to find out if the stock is worth the asking price can go a long way. Rather than gambling, you can also ask other people to do this research for you if you don't have the time to do it yourself. Reliable research resources include the websites of major brokerage firms, mutual fund companies and finance publications. There are also paid newsletter that offer this information.

A Bull Market Is Not The Same As Smart Investing

When you earn a high ROI in stock market investing, there are many reasons for it. One of the possible reasons is your wise investment strategy. Another reason can simply be the good fortune to be in the right place at the right time so you wind up making money with minimal effort. We may feel smarter when the market is soaring so we get tempted to take on riskier positions and trade more frequently, which may not be the wisest decision.

Deactivate Active Trading

You may feel tempted to trade frequently when you are gaining. With online stock trading, investment is a mouse click away which can make you even more impulsive. Remember that it is difficult to make money by beating the stock market consistently. In stock market trading, it is better to have a buy and hold strategy to ensure a high ROI.

Take Note of The Tax Man

Pay attention to tax ramifications when trading stocks. Frequent trading can become extremely costly, especially when major income taxes are triggered by profits. By buying and holding for a period of at least one year, you would qualify for a lower capital gains rate. Your financial advisor should be able to consult with you on this.

About the Author

For more information on stock market investing ROI -- including a growing collection of tips, strategy and advice -- visit: http://stockinvesting101.net

3 Tips to Daytrading Stocks by Scott Cole

The first thing that you must do to find stocks suitable for daytrading is screen for liquidity and volatility. It makes no sense daytrading an illiquid stock, because you will get killed by the wide bid/ask spreads. Furthermore, it only makes sense to trade volatile stocks, those that regularly move 3-5% in a day.

Second, you need to figure out your choice of weapon. Are you interested in scalping for profits, or looking for big 1 to 3 day moves (sometimes referred to as swing trading)? My personal preference is the latter.

Finally, once you have figured out your style of trading, learn to identify those stocks that are ready to move TODAY! There are a variety of patterns that show some statistical significance in leading up to sizable moves.

I recommend the TC2000 program by Worden Brothers. With this program, you have the ability to screen thousands of stocks and narrow them down to the handful that are solid daytrading and swing trading candidates.

About the Author

Nearly 20 years experience in trading stocks, currencies and commodities; former hedge fund execution trader and formerly registered as a Commodity Trading Advisor (CTA). To learn the 3 Biggest Mistakes Made by Daytraders, check out www.bestdaytradingstocks.com.