Stock Trading - How to Invest in Stocks

In this article, we shall add to the glossary of stock trading basics by explaining what are stock market orders.

Stock market orders: As more and more investors start to trade online to take advantage of the reduced transaction costs and the convenience, it is important for them to be totally conversant with the methodology of placing buy and sell orders with their brokers. You can, in fact, use a variety of buy and sell orders so that you can take more control over the transaction and not be entirely at the mercy of the broker. Some types of orders exercise control over the transaction by price while others control it by time.

Here is a rundown on the various types of orders that you can use with your broker.

Market order: this is the quickest and the simplest method of placing an order and getting it fulfilled. In a market order, you instruct the broker to buy or sell at the prevailing price at the moment of execution. If you are following the market, do not expect to get the exact price that used the on-screen but you can expect a price that is fairly close unless your stock is hugely volatile. Remember that there is no guarantee of any price and you will simply had to trust the broker to do his best. This is also the cheapest type of order in terms of transaction cost.

Limit order: the limit order is an order in which you instruct the broker to buy or to sell at a specific price. If your price is not available, the transaction will not go through. You therefore have control over the price at which you will enter or exit a position. Remember to check with your broker what he charges to execute limit orders. If the charge is higher than you would like, and your stock is not particularly volatile, you may be better off placing a market order.

Stop loss order: stop losses are standard risk management practices that prevent you from taking large losses on open-ended positions. You predetermine what losses you can live with on a particular stock and, if that price is reached, you sell straightaway and crystallise your losses. Remember that you will lose some of the time at least and the trading discipline enforced by a stoploss means that you can limit your losses to what you are comfortable with. You will normally place a stoploss order by giving the broker a price trigger that would be below the prevailing market price. The moment the stock drops to your stoploss price, your order becomes a market order which the broker will execute instantly.

Trailing stop order: this operates in a similar fashion to a stoploss order except that it is used to protect a profit rather than contain a loss. If your stock is already in profitable territory, you set a take profit price to protect you against a sudden drop in the price. If your take profit price is reached the order immediately becomes a market order and your broker will sell without reference to you.

Good till cancelled order: this means that the order continues to to be in effect until you cancel. This is used in conjunction with other orders to control the timing.

Day order: a day order is an order that is valid only for that particular trading day. If the order cannot be executed, you will need to place a fresh order on the following day.

All or none order: this means that the entire order has to be filled and a partial execution is not acceptable. This is useful particularly in the case of thinly traded stocks.

For more information articles on stock trading and stocks to buy visit our Stock ideas website.

Retirement Planning

Single Premium Immediate Annuities (SPIAs) And IRAs

A single premium immediate annuity is an annuity contract with an insurance company in which the contract owner contributes one lump sum (single premium) and immediately begins to receive annuity distributions either monthly, quarterly, semi-annually or annually from the insurance company. Oftentimes the agreement with the insurance company is to receive a specified amount for life pursuant to the account holders life expectancy. Commonly referred to as a SPIA, this annuity has no accumulation period, or period of time in which the annuity grows in value due to appreciation of the underlying assets and/or due to future contributions (future premium payments).

Most SPIA distributions are regular, level payments. Your primary distribution options include:
1. Single Life - The SPIA distribution payments cease upon the death of the account holder.
2. Joint and Survivors Annuity - The SPIA distribution payments (lower in amount than single life payments) continues to pay annuity distributions to a surviving beneficiary.
3. Period Certain - The SPIA distribution payments cease after a specified period of time, even after the account holders death, in which case the designated beneficiary receives the remaining distributions.

The main purpose of a SPIA is to provide retirement benefits for the account holder and/or spouse. SPIA's are funded either with after-tax contributions (known as non-qualified SPIA) or with pre-tax contributions (known as qualified SPIA). After-tax SPIAs distributions are part tax-free (a portion of the distribution is considered a return of contribution and, thus, not taxable). Pre-tax contributions are funded by employee retirement plan assets which are, themselves, funded with pre-tax contributions such as 401(k) plan employee contributions and employer matching contributions. In this case the SPIA is created when the retirement assets are converted to a SPIA, upon retirement. This pre-tax, or qualified SPIA most often involves the utilization of an Individual Retirement Arrangement (IRA).

Pre-Tax SPIAs and IRAs
There are only two types of IRAs:
1. Individual Retirement Account and
2. Individual Retirement Annuity

A Pre-Tax SPIA may be purchased by rolling retirement funds into an Individual Retirement Account and then purchasing a SPIA, inside an Individual Retirement Account. In such case, the IRA is the owner and recipient of the SPIA distributions and Required Minimum Distribution (RMD) rules apply to the Individual Retirement Account, which includes the value of the SPIA.

A Pre-Tax SPIA may be purchased by rolling retirement funds directly into an Individual Retirement Annuity, which then purchases the SPIA. In such case the SPIA distributions are considered paid directly to the individual owner of the SPIA. With an Individual Retirement Annuity there is no IRA Account RMD requirement (the SPIA calculates its own separate minimum distribution amount) as the IRS assumes the IRA Annuity will pay out distributions that equal or exceed any RMD calculation.

In some cases an individual will roll over retirement funds into an IRA Account and then use some of those funds to purchase a SPIA. There is much confusion regarding the RMD rules in this case so let's clear it up. When you use part of your IRA Account to purchase a SPIA, the SPIA is part of the IRA Account and you must calculate your RMD by including the value of the SPIA. This can be tricky as the value of the SPIA may not be easily determinable every year. Because an RMD is based on the value of the funds in the IRA Account at the end of the prior year (i.e. a 2011 RMD is based on the value of your IRA Account as of 12/31/10) you must include in this value calculation the value of the SPIA. How is this done? You must determine the present value of the SPIA at the end of the prior year so that the value of the Individual Retirement Account can be determined in order to then determine the RMD.

Because of this added complexity in buying a SPIA inside an Individual Retirement Account, knowledgeable financial advisors will advise purchasing a SPIA through the use of an Individual Retirement Annuity and avoid the purchase within an Individual Retirement Account.

Tom is a Certified Public Accountant, a Certified Financial Planner, CLTC (Certified Long-Term Care) and President of Cerefice & Company, the largest CPA firm in Rahway, New Jersey. Tom works with clients helping them manage their money, retirement planning, college savings, life insurance needs, IRAs and qualified plan rollovers with an eye towards maximizing tax benefits and minimizing taxes. Tom is founder of the Rich Habits Institute and author of "Rich Habits".

Stock Market Investing - who is looking to stay invested in a particular company

Many people think that if you are a long-term investor who is looking to stay invested in a particular company for several years, the timing of your entry point is not that important. However this isn't necessarily the case because timing is actually very important.

Okay so it doesn't really matter if you buy a stock at 340p or 345p, for example, if you are planning a long-term investment, but you have to look at the bigger picture. Unfortunately the share price of an individual company is not entirely dependent on their own fortunes. It also moves in accordance with the wider stock market.

There are exceptions of course. If you invest in small-cap stocks then you will find that they are relatively independent of the wider market, and the share price is mainly driven by company-specific news and results.

However on the whole you have to be aware of the wider market when investing in mid and large-cap stocks. The fact is that you could invest in the strongest, most profitable company that is growing both it's earnings and it's dividend payouts every single year. However if the wider stock market is trading at very high levels when you buy the shares, you may find that the share price will be dragged down quite significantly (despite the strong fundamentals) if the wider stock market index suddenly reverses to the downside.

You should also pay attention to the industry the company is in as well. For instance you could be invested in the strongest company in a particular sector, but if you get some negative news coming out which affects the whole industry, there is every chance that the share price of your particular company will fall along with most of the others in the sector.

So the point is that timing is everything. Ideally you should hold on to your money until the wider stock market is massively oversold. When this happens you can simply filter through various stocks to find the strongest most profitable companies, because you can be sure that their share price will also be oversold and trading at bargain levels when this happens.

Similarly if there is a particular sector you are interested in, such as mining for instance, you should wait until this sector as a whole is heavily oversold, and then invest in the strongest companies from within this sector, or those have that have been sold off the most and now represent the best value based on forward earnings projections.

Either way you can generate some significant profits if you take your time and concentrate on purchasing a stock at exactly the right time. Just remember the old mantra - buy low and sell high - and you should do just fine.

Click here to read a review of the Stock Trading Nitty Gritty course, the new training course that teaches you how to successfully trade individual stocks.

Stock Market Bubble

A combination of forces such as rapidly increasingly stock prices, market confidence that the companies have strong potential of churning future profits, individual speculation at every corner, and a widely available investment capital create an environment which inflates the stock prices and gives rise to a situation that is termed as stock market bubble.

The most common question that occurs in our minds while talking of bubbles is that what actually causes the bubbles to form and then what is it that again causes it to burst. Interestingly, it has been noted that greed and only greed causes a bubbles and then fear lets it go pop. We are all aware that stock market is predominantly ruled or controlled by greed and fear.

A bubble will form without causing much ripple due to the influence of what is known as the herding effect. When a stock market hype starts, everyone gets a wind of the hot new stock in the market and tries to buy as much as they can. We sit back and enjoy as the profits shoot up with the skyrocketing prices. We then get more and more greedy and wait and watch but forget to sell.

Even the stock gurus and analysts who dominate the media add on to the hype and trendily pitch their latest stock picks. They show the rosy side of the picture with the aid of complex research analysis, flashy charts and attractive graphs. But what they do not do is remind the people to sell off and take home the profits. It thus takes time for the news of selling to reach the grapevine.

By that time however, the big-time investors or as called the smart money segment will have sold the shares and have cashed in some of those unrealized paper-only profits. The peak is thus reached as everybody is in and now the speedy downturn begins as the panic selling starts and stock prices tumble. This is exactly when it is said that the stock market bubble has popped.

The small and big everyday buy and hold investors get frustrated and shun away from the stock market. They walk away from the stock market with a determination to wait till the market psychology has regained its composure or never to return at all. But the illusions of euphoria, the pleasures of taking home high returns are too seductive for them to ignore the stock market for long. They thus come back and with a similar hope as in the time of the formation of the previous bubble and repeat the mistake of investing when the market is once again moving up and thus contributes to the next bubble.

During the times of bubbles, you ought to keep higher cash reserves than you hold normally. In order to reap profit out of a bubble situation you need to be careful and smart. You should invest only in those shares that aren't overvalued. It is easy to tell when you are in a bubble situation but difficult to time the burst. Bubbles may take a long time to burst and in case you are holding too long the continuous inflation may result in severe losses. Bubble investing is certainly different from bull market investing. Play safe and put only a fraction of your money in bubble play.

There are several examples of big time stock market bubbles that continue to intrigue the economists world over. To highlight some exceptional bubbles we should site the examples such as the tech or dot com bubble that peaked in 2000, the oil bubble that peaked in July 2008 when the oil prices had shot up to $147 per barrel and then the housing bubble that popped in 2007-2008.

However, instead of playing too cautiously or being too much wary about these bubbles one should just take some unprecedented and calculated risks and try and gain something out of the bubble situation.

SogoTrade stock broker: Stock brokers
Trading Packages at SogoTrade: Stock Trade

Retirement Income and Inflation Protection Strategy

Master limited partnerships (MLPs) are ongoing businesses which pay out most of the cash flow to investors. Master limited partnerships are like bonds in that they pay out regular cash to investors. However, they are unlike bonds in that the payout to investors has historically risen with inflation and through increasing profits. Master limited partnerships are also like stocks in that they are equities and trade on the New York Stock Exchange or NASDAQ. Unlike typical companies, the income of the MLP is not taxed at the corporate level. All the money that would have been taxed is passed along to the investors. The effect is that there is substantially more cash available to investors.

Investors seeking to build a MLP portfolio should consider the following:

• The balance sheet and income statements are reviewed for strength.
• Projections for distribution increases over the next three to five years are ascertained.
• Examine the ratio of cash flow paid out to investors with the amount that has been available to pay out.
• Divide the MLPs into three risk profiles which are as follows: Rock Solid, Secure and Other.
• Examine the percentage of the cash payment to investors that is tax deferred.
• Review research from a variety of companies and industry sources.

Unlike bonds, MLPs have a history of raising distributions at a faster rate than inflation. For example - Buckeye Pipeline, headquartered in Radnor PA, paid out $1.20 in 1991. Today, Buckeye pays out $3.71 per year, a 209 percent increase in nineteen years.

When people as me about the risks of MLPs compared to bonds, I ask them if they would be happy to be assured they would get their money back in a twenty year U.S. Treasury bond. If we look back over the last nineteen years, would you have been happy getting your money back from a triple A rated bond? A first class stamp was $.25 at the beginning of 1991.

If you invested $10,000 into a twenty year U.S. Treasury bond you would have received approximately $800 per year for twenty years. In January of 1991 you could have bought 3,200 first class stamps per year. Today you could only buy 1818 stamps per year. If you had invested the same $10,000 in Buckeye Pipeline, you would have received approximately $1000 per year and bought 4000 stamps. Today you could purchase 7026 stamps per year with the cash flow generated.

So, with Buckeye you could purchase 7026 stamps vs. 1818 stamps per year from the U.S. Treasury bond. The original investment was the same. When understanding risk, it is important to rank the risk. If you consider inflation as a risk over the next fifteen years, you need to own something that can raise prices and pay you an increasing return. Of course there is no guarantee that the future return from a portfolio of MLPs will grow at any particular rate. Just as there is no way to guarantee just how fast the purchasing power of the U.S. dollar will drop over the next fifteen years. I am willing to bet that you will buy fewer postage stamps in 2025 than you can today with the income you receive from U.S. Treasury bonds.

©DeWitt Capital Management

David T. DeWitt, CFP specializes in Creating Income for Life, Growth Stocks and IRAs. For our latest report, visit our website at http://www.incomingchecks.com

Day Trading Techniques - How to Exploit the Open to Make Money

Quite often the open is unusually high or low in relationship to a normal trading range a particular day, so called gaps. One reason might be that the market is overreacted on special news.

There is an old adage saying that "the market abhors a vacuum", meaning that most gaps (not all) eventually will be filled. In this regards, many traders exploit these gaps in the open to make a quick profit in a short amount of time.

Here's how you can do it if you have gaps on the upside:

If the stock opens unusually high it is telling you that the buyers are so motivated and they are prepared to pay more for the stock that day than they did throughout yesterday's trading range.

In this case you'll enter the market at a point close to the lower part of the gap and place stop-loss a safe distance under your entry position.

Here's how you can do it if you have gaps on the downside:

If the stock is open unusually low, it is telling you that the sellers are so fearful and they are willing to liquidate at prices well below yesterday's trading range.

In this case you'll enter the market at a point close to the start of the gap and place stop-loss a safe distance over your entry position.

Such positioning as pointed above is often low risk because you soon find out whether you are right or not. If you are wrong, the market will tell you by moving quickly beyond the gap areas. So, exploit the gaps in the open can often be a great way to make money day trading.

Do you want to learn more how to make a full time living trading stock and forex for profit? As a former stock broker I would recommend just learn from the foremost experts in the world.

You have probably heard about the legendary Larry King, John Bollinger, Jack Schwager, Tom Dorsey and Martin Pring...

If you want high quality education, then Siw Dahl invite you to take 4 of the seminars below:

Download for free here: "4 Video Seminars'. For more information you can also visit my website http://www.tradingbloggen.com

Day Trading, Buying and Selling Strategies

The term 'day trading' is used to define the act of buying and then selling a stock in the same day. A day trader tries to make a profit by taking advantage of small price changes in the market through leveraging a large amount of capital. There are a few common day trading strategies, and these have been listed below:

There are certain stocks that are great for day trading systems, and a trader may choose them depending on their price and availability. A trader will look for two qualities when daily trading a stock and those are its volatility and its liquidity. The volatility of a stock is its estimated price range for that day; this is the price range in which the trader will then operate. The more volatility a stock has the great the profit may be, and the greater the loss may be. The Liquidity is what allows you to exit and enter the stock at a quality price.

One example day trader strategy favorite is Sun Microsystems. The reason why many day traders buy this stock is because it is very cheap to purchase and very liquid and volatile. Other stocks like this are very convenient for day traders.

One of the most popular trading strategies is called Scalping. This practice sells the stock immediate after profit can be made from selling it. This type of trading tends to move very fast, with the traders watching the moment the stock becomes profitable so they can sell it.

Daily Pivots is a strategy that allows profits from the volatility of the stock. This is accomplished by buying stocks during the low time of the day and when the high time of the day comes, the stocks are then sold. When traders short stocks after they have had a rapid upward move, the process is called Fading. This strategy uses the assumption that the stocks have been over bought, and earlier buyers are already making profits from and selling they're stocks. In addition, they also try to scare out any existing or potential share buyers. This strategy is very risk, but if all goes well it can generate a huge profit.

The Momentum strategy utilizes strong trend moves or trading on news releases. The day trader will buy when there has been news releases and then continue on with they're trend until there are signs of reversal.

Generally, daily trading requires the same tools that are used when trading normally. Buying shares is quite the same as normal trading, but the exits are very different. Most of the time, you will want to exit when interest of the stock has decreased. With day trading, investors are more vulnerable to quick price raises and drops, much more so than normal trading. Trading can be a very difficult thing to master, and there are many who try it and fail. But if you create one or more good day trading strategies, with practice and persistence you can stand to make a great amount of profit.

The author has spent a lot of time learning about stocks for cheap and how to find value stocks. Read more about stock trading investments at John Espinosa's website.

This article shows you one of the many techniques employed by professional traders when executing their trading strategies. There are many trading methods, systems, techniques and strategies used by professional traders -- from basic moving average-based methods to high-speed, high-frequency quantitative trading strategies. Trading is trading. Whether the instrument is futures, Forex, indices, commodities, interest rates or individual stocks that make up the stock market; there are common elements to all of them. One common element is how professional traders trade these separate instruments. Because of this it is possible to identify the techniques professional traders employ to boost your own success in trading. The most significant goal that every trader is continually aiming for is reduced risk and increased reward on every trade. This leads to the following... Professional Traders Trade COUNTER-TREND This may seemingly go against what you already know about trading -- that you "must" trade with-the-trend to have any chance of success. Now, trading just plain counter-trend would kill any traders' account in no time -- professional trader or not. This is known as picking-tops and picking-bottoms (link to another article perhaps). Professional traders will generally have a trading strategy, method or system that underlies the actual taking of trades -- they are not just rolling a dice or trading when they feel like it. There is structure. There are essentially two types of market scenario traders must deal with: #1 - Ranging #2 - Trending Professional traders treat #1 -- ranging markets -- in various ways. Some will aim to only trade ranging markets, some will aim to stay away from ranging markets and the rest will try to adapt to what the market is throwing at them. Figuring out when a market is likely to range, and likely to continue ranging, is larger in scope than is possible to talk about here. But simply put, if the market is ranging, and you're trading counter-trend, it is in fact very easy to make money. The focus of this article is #2 -- trending markets -- and the-how-and-the-why professional traders trade counter-trend when a market is trending. Going back to what is the common goal among traders -- reduced-risk and increased-reward on every trade -- this is the modus operandi, or underlying goal in-mind while trading. Markets don't trend in a straight line. They flow. They move, they come back a bit then they move again. Even when the trend is identified it is still about getting the risk down and the reward up. Going back to the original premise of, 'Professional traders trade counter-trend'. The risk is generally not worth it unless the trader gets a bargain price. In other words, the potential risk must be small and the potential gain must be large. If the market is in an uptrend, the trader will not try to fight it by selling it. He will trade, what can be regarded as counter-trend, by buying when the price goes down -- anticipating that the down-move is temporary before the trend resumes. The same goes for the market in a downtrend. He will trade this in a counter-trend manner by selling when the market makes a rise - anticipating the down-move to continue. This may sound very simple -- and it is. But there is something more to be read into it. So the professionals are essentially just buying 'dips' and selling 'rallies' -- that's old ancient trading "advice". Here Is The Secret... The professionals will never be caught buying-the-high or selling-the-low. The amateur trader is seduced by seeing charts where the market makes a new high, keeps going and never looks back; this looks like a no-risk trade. And it was -- on THAT trade. What the amateur misses is the many times a new high was made and the market came right back. The professional trader is reluctant to "pay-up". So he misses the one "no-risk" trade where the market makes a new-high and keeps going. So what? He never missed all the low-risk bargains each time the market pulled back. This article was not about a strategy in the typical sense. But to become a professional trader, you must start thinking like a professional trader. Most professional traders do not have "fancy", "secret" systems. They see the market for what it really is. Yes, they know things that amateurs do not know. Yes, they do things that amateurs don't do. And yes, these things can be learned. James Macdonald REAL Market Trading Learn how to trade at a professional level by going to http://realmarkettrading.com/REAL-Trading-Course.html

The most important rule concerning day trading of stocks in the United States is called the Pattern Day Trader (PDT) rule. Approved by the SEC, this rule states that you can only perform three day trades within a rolling five-business-day period if you have less than $25,000 in a cash or margin account. However, if you have more than $25,000 in a margin account, there is no legal limit on the number of day trades you may make.

Definition of Day Trading
A day trade is the buying and selling (or shorting and covering) of the same security on the same day.

Penalty for Violating the Rule
You will be flagged as a Pattern Day Trader by the brokerage for that account. Your account will be frozen (no new positions can be added) for 90 days or until you deposit enough cash to get your account value above the $25,000 minimum level, whichever comes sooner. Some brokerages will warn you ahead of time when you are about to be flagged as a PDT, while others will not, so be careful if you trade a lot!

If you violated this rule accidentally and you have no intentions of being a day trader, you have the option of informing your brokerage of the situation and they have the ability to remove the PDT flag from your account.

Why Do They Have This Rule?
The goal of this rule is to protect beginners and those with little cash from participating in risky trading activities that could lead to significant losses in a small amount of time.

Example 1: Safe from PDT Rule
1. Monday: Buy and Sell MSFT
2. Tuesday: Buy and Sell GOOG
3. Wednesday: Buy and Sell F
4. Next Monday: Buy and Sell GM
Result: 3 trades in a 5-day period

Example 2: Violation of PDT Rule
1. Thursday: Buy and Sell MSFT
2. Friday: Buy and Sell GOOG
3. Monday: Buy and Sell F
4. Tuesday: Buy and Sell GM
Result: 4 trades in a 5-day period

Three Days for Settlement
There are several other federal regulations that affect day trading, and the settlement period is one of them. Whenever you buy or sell a position, it takes up to three days for the trade to "settle." This is similar to a check taking a few days to clear at your bank. In the first three days after a sale, your brokerage may or may not allow you to trade using the money from that sale, since it has not settled yet. This restriction only applies to cash accounts though. The way to get around this problem is to not spend all of your money on one trade. This will make sure you always have some settled cash to trade with. If you have a margin account, your brokerage will lend you the money during the settlement period so that you don't have to wait before you trade again.

Nicholas Swezey is the creator of the free stock market game on his site, http://www.HowTheMarketWorks.com.

Trading Strategies of the Professionals

This article shows you one of the many techniques employed by professional traders when executing their trading strategies.

There are many trading methods, systems, techniques and strategies used by professional traders -- from basic moving average-based methods to high-speed, high-frequency quantitative trading strategies.

Trading is trading. Whether the instrument is futures, Forex, indices, commodities, interest rates or individual stocks that make up the stock market; there are common elements to all of them. One common element is how professional traders trade these separate instruments.

Because of this it is possible to identify the techniques professional traders employ to boost your own success in trading.

The most significant goal that every trader is continually aiming for is reduced risk and increased reward on every trade.

This leads to the following...

Professional Traders Trade COUNTER-TREND

This may seemingly go against what you already know about trading -- that you "must" trade with-the-trend to have any chance of success.

Now, trading just plain counter-trend would kill any traders' account in no time -- professional trader or not. This is known as picking-tops and picking-bottoms (link to another article perhaps).

Professional traders will generally have a trading strategy, method or system that underlies the actual taking of trades -- they are not just rolling a dice or trading when they feel like it. There is structure.

There are essentially two types of market scenario traders must deal with:

#1 - Ranging

#2 - Trending

Professional traders treat #1 -- ranging markets -- in various ways. Some will aim to only trade ranging markets, some will aim to stay away from ranging markets and the rest will try to adapt to what the market is throwing at them.

Figuring out when a market is likely to range, and likely to continue ranging, is larger in scope than is possible to talk about here. But simply put, if the market is ranging, and you're trading counter-trend, it is in fact very easy to make money.

The focus of this article is #2 -- trending markets -- and the-how-and-the-why professional traders trade counter-trend when a market is trending.

Going back to what is the common goal among traders -- reduced-risk and increased-reward on every trade -- this is the modus operandi, or underlying goal in-mind while trading.

Markets don't trend in a straight line. They flow. They move, they come back a bit then they move again. Even when the trend is identified it is still about getting the risk down and the reward up.

Going back to the original premise of, 'Professional traders trade counter-trend'. The risk is generally not worth it unless the trader gets a bargain price. In other words, the potential risk must be small and the potential gain must be large.

If the market is in an uptrend, the trader will not try to fight it by selling it. He will trade, what can be regarded as counter-trend, by buying when the price goes down -- anticipating that the down-move is temporary before the trend resumes.

The same goes for the market in a downtrend. He will trade this in a counter-trend manner by selling when the market makes a rise - anticipating the down-move to continue.

This may sound very simple -- and it is. But there is something more to be read into it. So the professionals are essentially just buying 'dips' and selling 'rallies' -- that's old ancient trading "advice".

Here Is The Secret...

The professionals will never be caught buying-the-high or selling-the-low.

The amateur trader is seduced by seeing charts where the market makes a new high, keeps going and never looks back; this looks like a no-risk trade. And it was -- on THAT trade. What the amateur misses is the many times a new high was made and the market came right back.

The professional trader is reluctant to "pay-up". So he misses the one "no-risk" trade where the market makes a new-high and keeps going. So what? He never missed all the low-risk bargains each time the market pulled back.

This article was not about a strategy in the typical sense. But to become a professional trader, you must start thinking like a professional trader. Most professional traders do not have "fancy", "secret" systems. They see the market for what it really is.

Yes, they know things that amateurs do not know.

Yes, they do things that amateurs don't do.

And yes, these things can be learned.

James Macdonald
REAL Market Trading

Learn how to trade at a professional level by going to http://realmarkettrading.com/REAL-Trading-Course.html

Forex Trading Software - How it Can Significantly Boost Your Earning Potential

The most successful Forex traders today are generally using Forex trading software when doing trades at the foreign currency market. This is due to the fact that most of these robots are able to generate more reliable and credible analysis that can significantly boost the earning potentials of several investors in foreign currency trade.

Most Forex trading software is generally programmed to read complex algorithms and data that allow them to generate excellent reports and analysis based on market trends over the years; as well as on other factors that affect the performances of each currency. It can significantly save you a lot of time and efforts in digging through heaping piles of relevant information and come up with credible analysis.

Another positive side of using these Forex robots is that they are devoid of emotional influences and personal preferences; it simply generates reports based on facts and trends, and possible outcome. However, on the negative side of using the program, you cannot purely on it to do the trade for you. Your expertise and skills, as well as your Forex trading strategies, are still required for complete success in this venture.

Bear in mind that the Forex trading software is an excellent tool for you to improve your success rate; and boosts your earnings in just little time compared to investors doing the trade without using one of these products to aid them. Hence, having one of these robots to support you in your investments in foreign currency market gives you significant edge over other traders who are not using the product.

Therefore, if you are harbouring some thoughts on investing some of your extra money in foreign currency market, make sure to get Forex trading software like the FAP turbo robot to support you in your venture if you want to have some gains from your investments.

Get more advice on how to get more gains in foreign currency trade at Foreign Currency Trading and start generous income from this business.

Penny Stock Investing Vs Trading

When most people think of getting rich with Penny Stocks, they are actually thinking of investing in Penny Stocks, NOT trading them. They are actually very different.

When you invest you are generally investing for a reason, you may like the companies' fundamentals, you may like the technology, the management, there could be a multitude of reasons which you want to invest in the company.

When you are looking to trade, you have an idea of what you are going for. You can make a certain percent on the move, you generally set a stop and a target. You have a defined time period, whether it is 5 minutes, the end of the day, a month, etc. There are many different types of trading that one can do, fundamental, swing, position, pairs, etc.

When trading penny stocks you generally look at it a bit differently. You will not ask yourself, "how will this company do in 10 years?", instead you will most likely say something like "this company is breaking out, what's going on?", you then look up the news and find out whether it's something which you would like to get into or not. You make your move, or you get stopped out, and then you continue. You do not hold it hoping that it turns into the next Microsoft, which it may very well do.

Penny Stocks can work well both as an investor, or as a trader. One is certainly not better than the other, investing is longer term, without a finite life, your risk is usually higher, but you will be able to make it big. When you trade, you will make a large percentage much faster, but you will usually never be able to catch the stock that most people only dream of, which is actually fine for me. I do not need 100000% my return, a much lower percentage will make me a very happy man.

Milton Matthews is a trader who spent his free time writing articles for http://pennystockfinds.com on his free time. For more information on this, please check out http://pennystockfinds.com/penny-stock-investing.php

Day Trading Penny Stocks

So you want to day trade? Do you know what day trading is? Do you know what penny stocks are?

If after knowing what all of those are, you still want to do it, you must know that you are taking some serious risk. The rewards are great, the rush is amazing, but you have to be prepared. You are either stupid or confident, hopefully confident in yourself. Confident that you know what you have to do, willing to be patient and wait.

You cannot day trade any penny stock, you cannot day trade the same penny stock everyday or else you must be prepared to get killed. There are certain days when a stock makes a move which you must be willing to trade it that day. If you catch it early enough, you can buy it and go with the momentum on the upside.

Do not just buy it, sell it, buy it, sell it, you'll get chopped up and there will be nothing left. You have to be very patient, careful, pick your entries and exits. This is much different than if you were going to day trade a regular stock, you can trade it a multitude of ways, but you cannot really scalp penny stocks. You have to hold it for more of a move. Every time you get in, you must be willing to lose money.

When you go day trading penny stocks, it is day trading, but it's not the same as any other type of stock. There is a special way you have to do it, there is a special method, it is a unique beast. You may say, okay, I am willing to lose 5 percent to make 30 percent. Something like that is more understandable, you can have a plan for every entry. Day Trading Penny stocks are very risky, but the percentage rewards are huge. You have to find a method which you feel is believable.

Lastly, don't think you will be able to day trade it every day, every day you day trade is different than the next. Tomorrow won't be the same as today, and neither will the day after. What this means is, not just the same stock, but penny stocks as a whole there are many days when absolutely NOTHING happens in the market. You have nothing to do, so you must sit on your hands and be patient, wait. The turtle wins the race.

Milton Matthews is a trader who spent his free time writing a few articles for http://pennystockfinds.com/ hoping that people will not make some of the same mistakes he has made. For some information on day trading penny stocks, please see his website http://pennystockfinds.com/day-trading-penny-stocks.php.

Indian Stock Exchanges - Basics For Beginners

In 18th century, East India company established Stock exchange in India. In 1860, exchanges had 60 brokers and it was going very well, in 1874 with the rapidly developing share trading business, brokers used to gather at a street (now well-known as "Dalal Street") for transacting businesses. In 1946 India had only seven exchanges and in 1995 constricted to 22 exchanges.

Stock Exchanges are organized marketplaces, either corporation or mutual organization, where members of the organization gather to trade company stocks and other securities. Indian stock market have 23 exchanges, in which two stock exchanges are most powerful, they are BSE (Bombay Stock Exchange) and NSE (National Stock Exchange).

BSE, Bombay stock exchange established in 1875, and have listed 4700 companies. BSE is the oldest exchange in all over Asia, other name of BSE is BSE-30. BSE index is managed by Top 30 companies and most of Indian investors and foreign investors are investing their money in BSE. All the activities are performing by BSE under the SEBI rules and regulation. The values of all BSE Indices are updated on real time basis during market hours and displayed through the BOLT system, BSE website and news wire agencies and all BSE Indices are reviewed by the BSE Index Committee. The timimg of trading in BSE is from 9 am to 3:30 pm and we can trade only Monday to Friday.

NSE, National Stock Exchange established in 1992 and it have 1587 numbers of listing. NSE consists as main indexes like S&P CNX NIFTY, CNX NIFTY JUNIOR, S&P CNX 500. It is the largest exchange in India in terms of daily trades and turnover and expected biggest exchanges in India in terms of market capitalization. NSE is set of leading financial institution, insurances companies, banks and other financial organizations but, all rules and regulation followed are handled by NSE committee. NSE is the third largest Stock Exchange in the world in terms of the number of equities and trades, It's the second fastest growing stock in the world with a recorded growth of 16.6%. NSE consist five major market these are Future & Option market, Equity, Retail & Debt, Wholesale Debt, Currency Future market. The timimg of trading in NSE is from 9 am to 3:30 pm and we can trade only monday to friday

Apart from that some other exchanges are also existing in Indian stock market has known as regional exchanges named as Madras, Delhi, Jaipur etc. In India there are some other exchanges also, which are totally different with these stock exchanges known as MCX exchange, NCDEX exchange.

If anyone wants to invest or trade in Indian stock market, then he must have a demat account in relative bank, after having a demat account anyone can trade in stock market. You can trade or invest in stock market under the rules & regulation declared by SEBI. You can trade with any of the broking firms which are listed in exchanges and get free stock tips from different advisory firms running in the market.

PREM SHARMA
E Marketing Executive
Capitalvia Global Research Limited
You can make a call at 0731-6680000 or Login on http://www.capitalvia.com.

The Many Facets of the Indian Stock Market

The concept of trading in the Indian stocks market has been over a century-old phenomenon. It is true that initially for several years, there were no online trading; hence, the number of investors was limited. Investors completely relied on stock brokers for all their investing decisions, besides tickers and news updating them about the latest conditions of the market.

But with the advent of Internet technology, things have altogether changed. The stock market in India witnessed a dramatic growth with the number of investors increasing in huge numbers. It is the convenience of online trading, facilitating investors to trade from the comfort of their space anytime anywhere. Whether it is trading in the NSE market or BSE market, you should be equipped with the nuances of trading.

To enter the stocks market, you need to have a trading account. This is called a demat account, equivalent to a bank account where you will have to deposit enough funds for trading. Whatever transactions are made for buying, selling including adding of profits in the stock market are recorded in detail; the investor can view the same as required.

There are several trading options of BSE stocks. If you want to make some quick money, you can opt for day trading and invest in accordance with the rising and falling NSE market and BSE market. Register yourself at an online trading platform to get day trading recommendations from market experts. Applying your own judgments as well as considering the recommendations, you can take wise decisions and gain a lot from your day trading. Besides getting tips and recommendations at an online platform, you also can take a glimpse of what is really happening in the stocks market via stock news, gainers, losers, and lot more information. It is only a blend of definite goals and pre-determined strategies following which you will be able to make a mark in the NSE or BSE market.

To be at the winning edge in case of day trading, the exact entry price point or exit price level of BSE stocks should be identified on time. This will help you earn profits on a daily basis no matter whether the market is rising or falling. To avoid losses, you should be able to manage your risks. Managing risks is not that easy; you can follow risk management techniques for the same. Other trading options include short term and long term investment; you cannot expect quick gains in the latter choice and you will have to wait with patience. In both the cases investors buy BSE stocks or NSE stocks or other stocks at low price and sell them at high price at an opportune time.

As aforementioned, given the many investment options, you can choose any or all; do consider the real time price action of all the stocks you buy. Most investors are driven by the wrong notion that falling markets mean losses, but it is not so. Many people earn by leaps and bounds at this stage too.

Nirmal Kumar is author of market analyst and is writing reviews articles on stocks and shares, stock investment, Online Share Trading, online trading, shares trading, BSE Stocks, online share trading platform.

How to Start Investing in the Indian Stock Market

How should I start investing in Share Market? This is the question which comes in the mind of those who are not familiar with stock market and who are not directly related or deal with the field of finance. But believe me investing in stock market is not that tough, like any other skill it can be learned with gaining enough knowledge about companies and doing some analysis.

For beginners I recommend to start with virtual 'demat account' and start trading there to gain some knowledge about trading and in which sector you should invest. You can sign up for virtual trading accounts at nseindia.com and moneycontrol.com. When you are confident enough of yourself then you can open demat account with any of the brokers or in the bank and start investing with small amount first and under someones' guidance who has some experience in investing. That someone could be your friend, colleague or family member.

Recommended Stocks to Buy

The next question which comes in the mind of beginners is 'Recommended Stocks to Buy'. There are various sectors in Stock Market in which you can start investing. Some of them are Oil, Banks, Telecommunication, Real Estate, Construction, Finance, Refineries, Steel, Broking firms, Food and beverages, Metals, Jewellery, Consumer Goods etc. To decide upon the sector to invest in you must see the fundamentals of the company, turnover, volumes traded, balance sheet and so on.

One more deciding factor is term of investment; you can either invest for short term or long term. Short term investment are those in which investor buy shares and keep in his/her portfolio for 3-6 months and long term investments are those in which investor buy share and keep those in his/her portfolio for more than 6 months. If you want to invest for short term then you should choose critical moving sectors or stocks and you should not follow any third party recommendation blindly. If you are going for long term investment then you should analyze the pure fundamentals of the company, the dividend amount it pays to the share holders, the capital and the percentage of share ratio between the company and the public.

Some popular Stock Exchanges and Share Trading brokerage Firms

Share trading is done electronically through stock exchanges and brokerage houses. Two most popular stock exchanges in India are Bombay Stock exchange (BSE) and National Stock Exchange (NSE). Multi Commodity Exchange (MCX) and National Commodity and Derivatives Exchange (NCDEX) are exchanges for bullion and agri market investments respectively.

Some of the well known brokerage houses in India are Angel broking, ICIC Direct, Reliance money, Sharekhan, HDFC Securities, India Infoline, Mangal Traders etc.

Thus to Start investing in stock market you should keep these things in mind:

Get educated by reading articles about stocks and commodities, watch financial news on television, visit financial websites etc.
Develop investment strategy and financial goal.
Read annual and quarterly reports of companies and do some fundamental study.
Invest in what you know i.e., invest in those companies with which you are familiar and in which you have confidence.
Diversify your investment and avoid putting all your money in one or two stocks.
Do not rely on third party stock tips unless and until it is given by a certified technical analyst.
Aditya Todawal
e-Marketing Executive
CapitalVia Global Research Ltd.
http://www.capitalvia.com/

How to Start Trading in Indian Stock Market

Free Investment Advice.New To Investing In Shares? Let Our Experienced And Easy Guide Help YouSharekhan-FirstStep.com

Demat AccountTrade Stocks listed at NSE & BSE. Open Account & Earn Trade Rewards.www.ReligareOnline.com

Share Trading TipsEarn Upto Rs.5,000/- Daily in Share Market Day Trading. Visit Now!OnlyProfitsNoLoss.in

Trading with Bank ofMaharashtra easier now with MahaeTrade, Enquire Now!www.mahaconnect.in

Equity BrokerageEquity Brokerage Services With Great Research And Advice.www.PPfas.com/StockBroker

Open a Demat AccountLearn the investment basics from our step-by-step guide.www-sharekhan.com

Online Share TradingTrade at Lightning speed Brokerage 0.15 % & 0.02%www.Ventura1.com

Meet your Financial GoalsWith HDFC Bank- Winner of Euromoney Best Private banking Services Awardwww.hdfcbank-euromoney.com

95-99% Accuracy tipsEarn Rs150000/month in Equity and Commodity call (0281)6455555www.shyamadvisory.com

Zero Account Opening FeesOpen a trading & demat account for Free & pay upto 50% less brokerage!Sharekhan-Zeroaccount.com

How to Start Trading in Indian Stock Market

Today Indian stock market is becoming really huge. If we talk about state level exchanges there are 'n' numbers of stock exchanges but if we have a look of all exchanges in India there are two main exchanges - NSE known as national stock exchange and was opened in India in1995 and BSE known as Bombay Stock Exchange and was first recognize in India in 1970. 93% volume of stock market comes from NSE and rest 3% volumn comes from BSE.

If some person wants to trade in Indian stock market the big issue which appears before him is how to start?

Anyone can go and trade in stock market but first of all he has to open his demat account.

Now the question arises whats this demat account is?

It's the account stands for dematerialized account. It is necessary to trade in stock market. Without this account one can't trade in share market.The main owners of this account are national depository security known as NSDL and central depository security known as CDSL. All banks are depository participants of NSDL and CDSL.

How one can open his/her demat account?

To open it first one have to open his/her saving account in the same bank where they want to open there demat account.

After opening a saving account he/she has to give application for demat account and same documents are required which were required to open saving account.

The bank then after verifying all the documents would open your account.

After doing so bank would link your account with your saving account, because no monetary transactions would be there in your demat account all monetary transactions of your shares will be through your saving account.

In this account the entries of your purchasing and selling of shares would be there.

Types of demat accounts?

There are mainly two types of demate account which you can open:

Online demat account -Online account is that when you can directly do trading through Internet. The limit in online demat account is 5 times of money which we have in our account.

Offline demat account-offline account is that when we don't trade directly, we do it through other broker through phone or by visiting broker's office. The benefit of offline account is the limit given on it. Generally brokers provides trading limit of 5 to 6 times of our money which is in our saving account but if we request to broker to increase our limit he can do so if he thinks it's right.

Charges of demat account?

Different bank charges differently for demat it. They usually takes annual charges for it. So before opening of demate account one should must have a look on charges which all banks are taking. Here is list of some bank charges on demat account:

SBI charges-400/- per year
HDFC charges-500/- per year
CITY bank charges-250/- per year
Share khan charges-75/- per year
ICICI charges-500/- per year

So once you have open your demate account you can go for trading in stock market.

As you are just entering in market you are not aware much about stock market, it's policies, position of stocks in market, so you can take help of research firms who research in stock market and keep there eye on each movement of stock and provide stock tips.

These stock tips can be vary beneficial for you as you are fresher in stock market and will help you to invest in right stock at the right time so that you can enjoy profit in stock market.

There are various research firms who provides stock tips CapitalVia is one of them and It's the leading company in all advisory firms and provide accurate stock tips.

Investing in the Stock Market

Ads by Google

Hot Stock TipsTop Free stock tips. Sign Up now for Freewww.claritireasearch.com

Best Stock Market TipsFrom Anand Rathi, Motilal Oswal & KRChoksey. Only For Rs 8000 p.aBestStockIdeas.co.in/FreeTrial

BSE & NSE Free Stock TipsOnline Stock Tips Through SMS Messenger and E-Mailwww.nsemumbaibull.com

Free Penny Stock ProfilesWhich Penny Stocks Will Explode? We've Got The Answers. Free Alerts!www.otcreporter.com

Free Investment Advice.New To Investing In Shares? Let Our Experienced And Easy Guide Help YouSharekhan-FirstStep.com

Stock Market on MobileLatest Stock Market Updates Anytime Anywhere on Mobile for Free!Welcome.to.AngelBroking.com

Equity BrokerageEquity Brokerage Services With Great Research And Advice.www.PPfas.com/StockBroker

Execute Trades OnlinePowerful trading tools Free Demo + A/c opening , Apply Nowwww.Ventura1.com