In present investment scenario, there are many different types of investments, and there are many factors in determining where you should investment your hard earned money.

There is no doubt that determining where you will invest first starts with conducting a research. Here you will be researching various types of investments, trying to figure out what your risk capability is, determining what your investment style is and finally what your investment goals are.

This is similar to buying a new car. It goes without saying that you will do some research before making a final decision. You will look over the car, and take it for a test drive before buying it. The same thing happens with investments.

Learning about the stock market and investments are time consuming. But it is time that is well spent. You can refer to numerous books and websites to educate yourself. If you want, you can even take a course at a local college. Thanks to the Internet, you can actually play the stock market with fake money to get a feel of how things work. This is possible by looking for Market Games or Stock Market Simulation on a search engine. This is an excellent way of learning about how investments work in the stock market. Investments other than the stock market have to be learned by reading. Here you can refer to books at your local library or read as much as possible on the various websites that are devoted to this topic.

If you have a financial planner, go visit him and inform him of your financial goals. Ask for his suggestion. Your financial planner will tell you where to invest your money and help you set a plan so that you reach your financial goals.

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Many people spend a lot of time doing research and selecting the right stocks to purchase. However, they often find it very hard to figure out when to sell the stocks. This is especially true for first time investors. The good news is that if you select your stocks carefully, there will be no need for you to sell them for a long time to come. But there might be instances when you will be required to sell your stocks before you reach your financial goals. So, how do you know when to sell your stocks?

Many people think that the right time to sell a stock is when its value drops. You might be given this advice by your broker. However, this is not necessarily the right thing to do.

Depending on the economy, stocks' value might go up or down. And the economy is dependent on the stock market. This ends up becoming a vicious cycle and it makes it hard to determine whether you should sell the stock or not. However, just as fast stocks go down, they also tend to go back up.

You have to do more research and keep up with what is happening in the company whose stock you have bought. Changes in the company can have a great impact on the value of the stock. For example, a new CEO can affect the value of the stock. A decline in the industry can also affect a stock. However, there are three good reasons to sell a stock and there are as follows:

• If you have reached your financial goals, you can sell your stock. You can take the money from selling and invest it into a safer financial vehicle.

• If there are major changes in the business you are investing in that cause or will cause the value of the stock to decline or drop, and you see no possibility of the value rising again, you should sell the stock before the drop in value starts.

• Supposing the value of the stock increases dramatically, you can sell it. You will make a tidy profit and you can reinvest the money.

If you are newcomer to investing in stocks, you should consult a qualified and reliable financial advisor or stock broker to help you make correct choices so that you can reach your financial goals without any problems.

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It only takes simple math to figure how penny stocks can make you rich. For all the non-believers there are plenty of experienced believers who have made a killing with penny stocks. You can listen to the skeptics or you can give it a try and find out for yourself. If you are looking for bad reviews then you will find plenty of them either from people who have never invested in penny stocks or from people who did not know what they were doing and got burned.

You dont have to have a lot of money to get started with penny stocks. Remember they are usually priced under $1 a share and you can buy one share if you so choose to. Of course its recommended that you start out with a little more than that if you want to realize some profits but the point here is that you don't have to throw down thousands of dollars to get started. Start small if the risks scare you and see how you feel.

Of course buying penny stocks can be very risky but the real risk only comes into play if you have invested money you cannot afford to lose. Think about it, if you are simply playing with money that you just consider to be extra after you have paid the bills and taken care of other priorities then there is not much danger in losing that money. So you can take a bit of a chance to make you money grow and maybe even double or more.

The basic principal of buy low and sell high will always apply and penny stocks are no exception. If you get in on a penny stock that is selling for $.0007 and it goes up to $.01 in a day then it might be a good idea to sell and take your profits. This is always a tricky situation since there is always the chance it could go up more and you could make more money. Just remember that you can only do so many day trades in a week without being flagged as a pattern day trader. The max should be about 3 day trades in a week. Anymore than that then you are taking a risk of you account being frozen for 90 days. This does not apply if you have a margin account with $25,000 or more in it. The SEC does this so people with smaller sums of money are not risking their life savings.

Its not difficult to get rich with penny stocks if you just gradually build up your gains over time. You can definitely get rich more quickly, not overnight, with penny stocks than any other type if you do it correctly. Always play with the houses money. What I mean by this is always play with the extra that you have made in the stock market if you can. This means you will always have backup money and always be taking the risks and making the money with money you have already made.

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There is nothing definite about investment. When you are investing, you are actually gambling, at least to a certain extent. When investing, it is not possible to know the outcome until the gambling game is over. It is only then you will come to know whether you are a winner or a loser. In order to benefit from investments you make, you need to have a good investment strategy so that you can be a winner most of the times.

Most people keep thinking that investment strategy involves a lot of work. However, this is not true. Investment strategy is about investing your money in diverse investment so that you can reach your financial goals within a predetermined period of time. Each type of investment has separate investments. For example, if you think about investing in stocks of electronic companies, this is an investment. Separate investments within the electronic companies will be shares of Philips or Zenith.

When conducting a research on the different types of investments, it is quite easy to get confounded with all the individual investments that are available. However, your investment strategy as to be such so that you can benefit to the maximum while taking into account your investment style and risk tolerance. Risk tolerance refers to the amount of money you might be willing to invest without feeling the pinch. Investment style is about either being conservative or aggressive. If you are conservative, you will opt for mutual funds; aggressive investor will for shares of companies.

Having a financial planner at your side is always helpful. He is the person who knows the ins and outs of investments. He will develop an investment strategy for you and advice you where to invest your money. He is one person who you should turn to when you have any queries or doubts about your investments. In order to work successfully with your financial planner, make sure you have a sound financial goal. Your strategy for investing will be developed based on your goal or goals.

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Nowadays, with more and more people taking control of their own financial future, a stock investing tutorial can prove to be very useful for them. This quote from Carl Icahn, a billionaire investor, can clear up the value of stock education. "Before anything, it's vitally important for anybody to realize the value of stock investing education and then it's fine to cultivate earnestly, aggressively, into a stock investor." There is nothing more important to us than financial stability. We work hard and strive to get those promotions in our careers so that we'll be in a position where money isn't a worry anymore. The future scares most of us because the thought of the unknown is always in our minds. And the only thing to ease that fear is knowing that money will never be an issue. However, there are several money making institutions that people can take advantage of that will grow income and provide us with that financial stability. The stock market is the best source to plan for your future and with the appropriate knowledge, everybody can be successful investors.

Stock Investing to Plan Your Future:

Like I said above, the stock market is an excellent way to plan your financial future, good for setting up any kind of fund (i.e. retirement or college). And by learning stock investing basics, all can take charge of their financial future that many badly seek. The problem is most don't have this knowledge so instead of trying to acquire stock investing education, they hire a financial planner from their financial institution. By buying mutual funds and/or ETFs, these planners that control of your funds and try to increase the money you have set for them to invest in the stock market. Why the stock market? There is plenty of money available in the market to be won for everybody and if you have the right knowledge, anybody can grow their money.

Don't Rely on Financial Planners:

If you can go ahead and hire a financial planner to take care of your money, why do the work yourself? I can go ahead and answer that question with three simple points.

1) What most don't know is that these financial planners don't consider your portfolios a first priority. These companies have an obligation to themselves to protect their company and the best way they know how is to reduce their risks. Therefore, they don't take your money and invest in any risky investments to avoid potential huge downfalls. This can be good sometimes for those who are older and wish to invest rather safely. But for others, they're missing out in a lot of money because by taking on more risk, they can be making much more money. Of course there is the possibility of losing money but those with the correct stock investing education will rarely fail.

2) If you chose to control your own stock portfolio, you can choose the investments that fit the best for you. A planner asks you a few questions and based on those answers, he invests in stocks and bonds that he thinks will work best for you based on their average clientele. Not very logical or personal.

3) The fees to hire these planners can get pretty pricey. The top notch financial institutions will charge you a flat fee regardless of your portfolio's performance. So if you're losing money, tough luck. The other planners charge you a percentage of the gains you receive during a particular period of time. What people don't understand here is that lots of times, you get charged more than once. Let's say during the first period, you investments grew so you pay your planner. The next period, the market drops so your investments come back to your original starting point. The next period, your investment rises up again to the same point of the first period. You get charged again over the same amount gained before. And because the market fluctuates so much, this happens a lot over the time your portfolio exists. Lots of money is lost that most people could really use.

Financial planners are the easy way out but are not very efficient. Most will be able to grow your investments steadily over a period of time until you need them. However, if you learned the stock investing basics, there would be no need to waste money in these institutions.

Stock Investing Tutorial:

There are three faults that deny the average person from taking care of their own finances: knowledge, experience, and laziness. However, now that I told you about the loads of money you're potentially losing from a financial planner, I think laziness might be slowly dissipating from most minds.

"Everyone has the brainpower to follow the stock market. If you made it through fifth-grade math, you can do it."-Peter Lynch, world famous mutual fund manager. Stock market investing isn't for those high-classed, well-educated individuals anymore. You don't even have to have any finance background to take part in this public market. As Mr. Lynch gently put it, you only need to have a brain. Yes there are some weird terminologies and difficult strategies but they are quite simple once you learned some stock investing education. And usually learning how to make money is something most will open ears to, trying to obtain important stock investing basics.

Stock Investing Tutorials Can Save You Money:

For those that haven't learned or dealt with any type of investment, there is no need to think that you can't do it by yourself. I was once in this position but I saw how much I was throwing money away and figured I can do it myself. And I did. Even for those who have some investing experience, whether you failed or succeeded, there will always be something in the market that you haven't learned about. Like the quote written in the first paragraph, said by Mr. Icahn, when it comes to investing in the stock market there is nothing more important than stock investing education. A stock investing tutorial can change your life into a money making machine and start you on the way to investing like the big guns on Wall Street.

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Stock market trading is often touted as something so simple anyone can do it and do it better themselves than if they used a broker. While this is true, it's important to keep an eye out for some of the common mistakes people make.

People are always advised never to invest money they can't afford to loose in the stock market. Even with the best decision, there's still a chance that things can go wrong, especially when emotions are involved. Pay attention to all the information you can find. Choosing a stock because its symbol is your initials might be a good sign that you need to double check how rational you're prepared to be about investing.

A rational investor has a plan. Knowing when to get out is as important as when to get in for a given stock. Planning your work and then working your plan isolates you from more volatile emotions and emotional responses. You're taking an active role in the stewardship of your finances; remember the long term goals you have.

But no plan, no matter now good will work all the time. Invest your money in discrete lots and never invest all your money in one stock. Yes, you're giving up the potential for gains but you're also providing a hedge against things going tragically wrong.

Understand that you're learning in this and set up a mock portfolio first to allow you to gain experience. The more experience you have the better you'll do at trading stocks. Getting better means you can make more profitable trades, trade more stocks - but you have to earn that experience. There is no substitute for it.

When we learned how to drive we didn't start off driving a Formula One car or a drag racer. Most of us learned with something that wasn't so dangerous to us and more forgiving of mistakes. The stock market should be treated like that. While it's possible to having amazing returns and success with the stock market, handled in appositely can lead to disastrous results. Before you play with your entire budget and exercise more complex options, be careful that you know how the basics work.

Like driving, investing in the stock market can become second nature and allow you to take into consideration more factors and produce better results. While you might feel out of your depth when you first start investing, you'll build up the experience to jump onto the highway with cars traveling 70 miles an hour and feel comfortable.

Keep in mind that it's a learning experience and don't be afraid to make mistakes. Also remember that it is game and the stakes are very real. When you do something, know why you're doing it Right down a log of your activities and your decisions and read and understand your environment. Darwin said that it's not the strongest species that survives, but the most adaptable. Survive and overcome the initial learning curve and you can succeed.

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1) Start with a small amount-

Remember when you invest in the stock market you can lose all of your hard earned money. And as a newbie you are likely to make all the wrong decisions. So till you gain some experience it is best to invest a small amount of money. Invest only that much amount which you are comfortable losing especially if you are investing for speculative purposes or quick profits. This will be your best strategy to minimize your losses as you begin investing in the stock market.

2) Keep an open mind and keep experimenting-

There is no single right or wrong way to investing in the stocks. Even if you follow some tips you have read on a website or have read a book on investing in the stocks or taken some friends advice, remember things don't always happen as you plan or wish. So remember to keep an open mind and experiment new things.

3) Don't be greedy-

We all have been taught this principle from childhood. So you may think why am I even mentioning it here. But greed forms a cloud on your mind that causes you to stop seeing the obvious and you don't see the pitfalls which you could have easily spotted otherwise. When I started investing the only thing I kept thinking about was how much profit I would earn quickly if I acted on a stock tip. Even though I thought, I might make a loss, at the back of my mind, I would completely ignore that fact and behave as if I would never make any loss. Be practical. Don't expect to earn $10,000 on your investment of $1000 in 15 days!

4) Buy the best stocks-

Trade only in the best stocks. Choose well established companies. There are some stocks that have high price volatility, which means there is a higher fluctuation in the daily price of such stocks. These stocks may give you higher returns but beware! There is a huge risk in investing in such stocks! You may make some profit on one day and the next day all your profits may get wiped off! So choose reputed companies even though they make have lower price volatility.

5) Use you own mind-

This tip is not meant to offend you. But this comes from my own experience. Do not blindly follow the tips given by friends, family, discussion forums or websites. Do not believe in rumors. I read the discussion thread on a forum and bought huge quantities of a particular stock. Now my stock has eroded 65% of its value. Only later did I find that the company I thought was going to give me huge and quick profits was on the brink of bankruptcy and was making straight losses for the last 4 years. All this information was available on the internet but it never occurred to me that I should do some research about the company I was going to invest in. So even if you have never invested before make your own mind and choose your stocks. Your guess is as good as anyone else and if you have followed tip1 you don't have much to loose. Don't forget to find as much information as you can, about the stocks you are planning to invest in, on the internet.

6) Don't buy at 52-week high price-

Many finance related websites and the stock exchange website displays some basic details about each stock like its current price, previous days close price, stock charts etc. In addition you can find the highest price reached by the stock in previous 52 weeks. I bought my loss making stock at its 52 week high price only to find later that the price started sliding downwards. This may not be true in all cases but its better to avoid buying a stock at its 52-week high price.

7) Don't pour more money to cover your losses-

There is a tendency to cover your losses by investing more money in some other stock you believe will earn huge profits. It's best to avoid investing more money to cover your losses till you get some experience of investing in the stock market. This is one mistake I did not make but some of my friends did. There may be some macro events at play that may be affecting the entire market or a particular sector. Some examples are fears of a recession in the economy, this event will affect all the stocks to some extent. Take another example, imposition of new taxes in the cement industry will affect all stocks in the cement sector. So if you pour in more money into some other stock and some of these macro events are at play you stand to lose money in these new stocks as well.

8) Use Stock Calc Widget-

When you buy 10 shares at $10 and sell them at $12 then you don't make a straight profit of $20! That's because you have to pay brokerage both at the time of buying and selling of stocks. Stock Calc is a web based widget that I have created and use regularly to calculate the net profit or loss in my stocks. It can also be used to find the right price to buy or sell stock depending on your expected returns. It's available to everyone for free on my website at http://www.bapatsoftware.com/stockcalc.aspx

9) Lookout for the hidden costs-

Look for other charges that your Broker charges you as well as the government taxes charged on stock transactions. Remember to factor that in your calculations as well.

10) Educate yourself-

Read a book or take a course in stock investing. This is what I'm doing currently.

Disclaimer: I'm not a financial advisor and this article is not financial advice. Please consult your financial advisor before making any stock or other investment decisions.

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So you have delved into the stock market in hopes of earning more than you are currently making. You have probably browsed the internet quite a bit in search for the right stock o invest in and the information to lead you down the right path of profit. Has it ever occurred to you during this search how you found what you found or how these companies came to you attention? Internet marketing is whole other beast when it comes to the stock market. It is a relatively new term and is still being adapted to within investing circles.

It is certainly not chance that has brought you to this article and it is definitely not change that introduced you to the stocks and investing services you have come across. That is the result of a highly targeted marketing campaigns directed at investors such as yourself. The Internet is full of data, especially data about web surfers. You can surf but you cannot hide. Those who would love your business know exactly what to do to get it. You are only going to buy into what you can find right?

There is nothing wrong with internet marketing it is just something you need to be aware of, especially as you search for investment opportunities or stocks with large returns. Be aware that perhaps you are not being presented with necessarily the best stock but the most marketed one. You have not been scammed necessarily but you have definitely been marketed to. This is mostly ok since most of the time the companies that have money to market are the companies you want to buy into anyway since they can afford to attract new investors and cause their share prices to rise.

The game has not change but internet marketing has certainly influenced the stock market in recent years. Through advertising, search engine results, and email campaigns companies that before did not stand a chance are doing quite well. This especially applies to penny stocks as any kind of marketing effects their share prices.

The thing to be aware of when you are browsing the internet is that there are internet marketing bucks behind what you just found. With this perspective you can better judge if you are being misled by someone with bad intentions or not. Usually you can tell if someone is just trying to hype a stock up or it is a legitimate marketing campaign.

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By Investing in shares in a public company, which has registration in a stock exchange an individual can get a share in the future income and value of the company. The capital of the company's business is divided into a large number of equal parts called shares. The people who buy these are the shareholders of the company. Shares represent ownership in a company. It is also called as equity and preference shares. Investing in shares, you become a part owner of the company and have the share in future value and profits.

1. Your share value increases as value of the company increases.

2. Profits to share to the investors known as dividends. The income payments are the dividends. They do not take this money as reinvestment for the company.

3. These dividends are taxed effective.

4. If shares are held for more than 12 months a 50% discount on any capital gains tax payable.

5. Capital gains will be yours when you sell at a price higher than the price you actually purchased the shares at.

Since the shares are small parcels of different companies they can generate high returns and increase the value or decrease the original value of the company. Shares are generally best for investors having a long term saving idea, longer investment period and high returns for long-term investments. The performance that the company has grown is shown in the profits. Future prospects of the investment holders and the company will increase more. If there is a capital loss it is by the shareholders. This varies from share to share depending upon the company.

The prices of the shares vary from day to day and it may go up or down on the same day. Due to the rise and fall of the economic confidence or changes in a particular industry the increase or decrease in value occurs in the share market. When you make the share investments as long term investment you are sure to secure your future. If the requirement of a high amount of cash occurs all you have to do is sell your shares and get all the liquidity that you need.

Share trading agencies help in selling or purchasing the shares from the identifiable companies through demit accounts. Preferential and equity shares are issued by the company's at par and issue price is the par value or the face value of the share and the number of shares multiplied by the face value is the stock held by the shareholder. Every day the exchange quotes the market price and share brokers and mediators will become the causes for the odd fluctuations in the market. Discount sale occurs when market price is less than the face value. The share is said to be sold at premium when the market price is higher than the face value. Dividend given by the company is expressed in % .The shareholders can check their investments the daily i.e., Monday to Friday through newspapers, TV media and Internet.

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There are those who hate penny stocks and feel that they are too good to invest in them. Those who have had success with penny stocks would disagree though. To cut to the chase penny stock investing is about buying very low priced stocks and trying to make money fast. Penny stocks can be a lot of fun and are very exciting if invested in correctly since they have the potential to produce greater returns than typical stocks.

Risky? Yes of course, potentially very profitable? Most definitely! Investing in penny stocks can be very risky but the potential rewards are what keep people coming back. The biggest risk is that you will be investing in relatively unknown companies with little to no history. On the positive side we are talking about ground floor opportunities that most people don't care about.

A lot of people just assume penny stocks are worthless since they are priced so low. This is definitely some erroneous thinking since they don't realize the potential profits. It is not uncommon for penny stocks to jump 50% to 100% or more in day. They can of course jump down just as fast as they went up but this is not always the case. So you see there is quite the potential to double you money or better in just a matter of hours. That is quite exciting and sort of an adrenalin rush!

The goal here at Best Penny Stocks and Picks is to give you great free information so you can make better investment decisions. We also want to generate excitement and get you more interested in investing period if you have been sitting on the fence and scared to take that first step. We recommend just trying a little money in the market at first to get you feet wet and see if you like it. Heck, with penny stocks you can invest just $10 if you want. Who knows, maybe you will find it fun and see it as a new hobby.

Millions of people play the stock market every day. This includes people investing in penny stocks for quick profits. Many people still use brokers but more and more people are using online trading accounts now like ETRADE and Scottrade. We would hope that the information contained in this site will help you in your trading experience. Go ahead and explore all of the articles and use the information to your advantage.

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Trading on the stock market is much more than buying a stock, selling the stock and making an big profit. In fact, that scenario is not a very common one. Trading can be quite lucrative, but you need the proper tools in order to do it, do it well and show a profit. If you enter the market unprepared, you will be someone's lunch, no doubt about it. The smart trader identifies these potential pitfalls early in the game and sets about correcting them before laying down the first dollar. This list will give you the answers to some of the fundamental problems that many new traders (and some old hats too) often make.

Lack of Understanding of the Market

The stock market is not as simple as buying and selling stocks. There is a lot that goes into it and you need to understand the various facets of the market. The first thing that you need to do is educate yourself. Do you want to trade stocks? Forex? Mutual bonds? Do your homework and learn about each type of investment opportunity and see which one works for you and which interests you the most. If you decide to go with day trading, get all the information that you can and learn the stock market backwards and forwards. When you understand the market, its emotions, know a bearish market from a bullish one, and other intricacies, you will be well on your way to smart trading.

Lack of Discipline

When you have an understanding of the stock market it may be tempting to rush in headlong into trading. This, though, can get you into trouble. You may sell too soon or over sell and that will undermine your efforts, leading to losses. You took the time to learn the market, now slow down and discipline yourself to use your knowledge. Be patient and think before you hit that sell button. A lack of discipline can get you into a world of trouble, especially if your risk capital is very limited.

Lack of Research

Research your stocks before you invest. There are several sites that can help you with this. Market Watch is a great resource. Choose some stocks that interest you and do the research on them and the companies behind them. If you research the stocks that interest you, you can find ones that have a better possibility of making you a nice profit.

Lack of Money Management

This is one of the biggest problems that investors face. If you are going to trade on the stock market, you need to use risk capital. Risk capital is money that you can afford to lose. Even when you use risk capital, it is important that you still know how to effectively manage the rest of your money. Pay your bills on time and watch your spending closely. If you become careless with your money, you may find that your risk capital becomes very needed funds. In the event of a loss, you could fall into dire straits.

Lack of Confidence

Many new investors don't have the confidence to aggressively trade in the stock market. This lack of confidence results in losses and missed opportunities. If you have done your homework and educated yourself as well as researched various stocks, there is no reason that you can't trade with confidence. Stop second guessing yourself and get out there and trade.

If you can address these five problems, you will find that you are trading more effectively. You may even begin seeing the profits rolling in.

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Buying protective puts can be very useful in the stock market. Whenever the markets start to get volatile many traders will use this strategy as a way to protect them from any downward movement their stock could have. How can they do this you ask. It is actually really simple.

To understand how a protective put works you should first be able to understand what a put option is. When you buy a put what you are actually doing is buying the right to sell a stock at a given price by a given day.

For example if you buy the $40 DEC put for stock XYZ you can sell XYZ for $40 by the 3rd Friday of December. This is true even if XYZ is trading far below $40 by then.

Now how can you apply this to protect you from the downside? Say you own a stock. It is currently trading at $72. The market has been volatile lately and you are afraid that your stock is going to go lower.

What you could do is buy the $70 put options for your stock. This cost you about $1. Now if the stock goes down to say $63 it is not so bad. Because you bought the $70 put you have the option to sell your $63 stock for $70. You would take just a small loss of $2+$1=$3, as opposed to $9.

The disadvantage to buying protective puts is you spend money to do it. If your stock went up then you lost that $1. It really served no purpose. Your put just expired worthless. Some traders see it as buying insurance, just in case. If they need it then that's great, if they don't oh well.

Others will try to offset the cost of buying the put by selling a call. This is the opposite of a put. When you buy a call you buy the right to buy a stock. If you sold the $75 call for $1 that would have covered the cost of the put. The only problem with this is that you would limit your profit. If you sold the $75 call for $1 and the stock went to $80 you would have to sell it at $75.

In the end it all depends on you. The protective put can help protect you from losses for a small fee. It can be quite useful during times of uncertainty.

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If you are a fundamental trader, you need to research the Chinese stocks thoroughly. Always follow your trading plan and never trail off it. Below is a couple of tips on how you can pick the best Chinese stocks:

Read Financial News Sites

Don't just depend on market news and press releases from the company itself. There are plenty of financial news on the Internet like Dow Jones, BBC, Dow Jones and a few other trustworthy sites in the Asia and Pacific region. These sites will give you an overall idea of how the market is performing generally.

Understand The Company

You must fully understand what services or products the Chinese company provide. Get to know their business strategy and how good their managerial expertise are. A lot of the information are usually covered in their annual reports and via the general financial news media.

Compare Companies

Always compare the Chinese company against other Chinese company in the same field. Furthermore, compare that Chinese company against the whole Asia-Pacific region. You be surprised that sometimes the stocks are outperforming all the other companies in the same industry.

Get A Chinese Friend In China

The really good way to invest in China and have an idea of any breaking news is to make friends with a Chinese in China. It is really hard for a foreigner to know exactly the mood of the country. Your Chinese friends could also give you a good stock tip and potential company collapse before major mainstream media companies inform you. Try not to make friends over the Internet because there are a lot of con-artists. Instead, make a trip to China and visit some of the factories and companies that you are interested in.

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Making money selling short in stock is a prediction that a stock pick will fall in price, and you make money by predicting this fall. You will stand to earn the difference in the price you sold the stock for when you borrowed the stock to sell, and buying it back again at a reduced price.

Here's an example of that statement.

You borrow the shares of a stock that you think is going to fall and sell the shares at the market price. Lets say each share is $50. You sell this at the market price, and need to return this shares to the owner at a period in the future. When you need to rebuy the shares which you had sold, if the price you buy it now is $20, then you would have earned $30 ($50 - $20).

Who are you borrowing the shares from?

The borrowed shares may be coming out of another trader's margin account, out of the shares being held in the broker's inventory, or even from another brokerage firm. These stocks are held by a broker and the broker has authority to loan out these shares to traders to perform short sells. Investors, when they sign a contract to open an account, provides the broker the rights to loan out these shares.

Best way to make money selling stock short?

Short selling involves many unique risks and pitfalls to be wary of. The mechanics of a short sale are relatively complicated compared to a normal transaction. And, as always, the investor faces high risks for potentially high returns. It's essential that you understand how the whole process works before you get involved. You should have a good exprience with short selling, a good broker, or a system that analyzes historical data that at least provides you an informed decision to profit in a bearish market.

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The stock market is an equal opportunity for anyone to make money with. Whether you're inexperienced or seasoned player of the stock market, you have as good a chance to make money with online trading. It can be said to be a highly competitive yet lucrative field.

You will make money in stock trading because the rules, news and opportunities are same for all. You can make a trade by picking a stock and make some money with it, or lose when there is a downturn on the market.

I've come across subject matter that seem to assist you in making a killing in the stock market. The truth is that quite a number of these books were authored many years ago. Since knowledge is power, having the latest up to date information on how to trade stock is essential, especially since the stock market is in constant flux.

There are many incredible systems that offer the magic pill, teaching you how to trade stock, but from experience, my own and others, systems cannot be fool proof.

An example of a good trading system should be practical. A system that is too complicated will not help your stock picks because this will slow you down when you need to make your decision.

Systems that can generate data based on historical values will provide you trading strategies that are recent and real time. This way, you can use it as a source of info to see which stocks are gaining momentum, and can make your decision in real time and quickly.

You can then take advantage of certain stocks with momentum, while limiting your risk.

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How do you choose the funds in your investment portfolio? Do you choose funds from many different families, or, for the sake of convenience, have you contained your investments to just one fund family? This article will examine some of the stock funds that Fidelity has to offer to see if all of your financial needs can be met using just this one fund family.

If you're like most investors, you will want a variety of different stock funds to choose from. Fidelity offers more than one hundred different stock investment funds, including the Fidelity Select family, which consists of more than 40 different funds in itself. Most of the funds are domestic sector funds meaning that they are the stocks of companies in one certain industry or sector. Unlike many other exchange traded funds, Fidelity's domestic sector funds are actively managed. Due to this fact, you can end up with above-average returns.

Many momentum investors favor sector funds, because even though the market is on a down trend, sector funds will manage to hang on. A good example of this happened in 2002 in the middle of the last bear market. All the major market indices had fallen at least 10%, yet Fidelity still had funds that were up for the year.

If just including sector funds doesn't provide enough diversification, you can also look at Fidelity's numerous international funds. They offer regional funds, such as Latin America and the Pacific Basin, as well as many single country funds including China, Japan, and Germany.

Fidelity also has a large number of fixed income funds including money market funds, municipal bond funds, government bond funds, and long-term corporate bond funds. In fact, they offer something for every investor looking for fixed income investments.

If you happen to be looking for an easier type of investment, you might try either Fidelity's Freedom funds or Asset Manager funds. Since both of these funds will take over the job of asset allocation for you, you just have to sit back and watch your money grow.

If you still haven't found just what you're looking for after examining all of the funds listed above, you might decide to buy one of Fidelity's several thousand mutual funds. These funds are part of the no transaction fee program. With most of these funds, all you have to do is hold them for a specified period of time, and then they can be traded without fees.

In our discussion of the various funds offered by Fidelity, we haven't even touched on a great many services they offer such as retirement accounts, college savings plans, insurance, and annuities. Once you take a look at everything Fidelity has to offer, you may decide you've found everything you want for your investment needs all in one neat package.

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When you go for best online stock trading then you should have a good knowledge about the stocks and the market. You have seen many people who earn a lot of money by investing in shares and stocks. They have a good knowledge about the current market situations and they know the right time when to invest in shares.

Life is full of ups and downs. There are people who have gone through a lot of hardships in life. It is not that people always get higher returns by investing in shares and stocks. You should be very careful in every step you take because one wrong decision can make you go bankrupt. So you should always go for best online stock trading.

When you wish to trade online, it is always better to consult someone who has a good knowledge of the market. There are stock brokers who can help you and also advise you in investing wisely. But you must be very careful when you chose your broker because there are many brokers who claim themselves to be an expert in the field but by the end you are bankrupt and you do not have any other way to get the money back.

Another important thing that you need to know when you go for best online stock trading is that you should be sure that the site you are visiting is a secured one. Nowadays there are lots of unsecured sites, which also provide you with the wrong information on stock trading companies. So, you should be very careful when you go for stocks and shares. There are people who think that investing in stocks help them in multiplying their money. But this concept is wrong. The main important thing is that you need to have a good knowledge of the stock market.

So, if you are really looking for some investments then you should consult a good broker or you can even consult your good friend who is a regular investor in a stock market.He or she can guide you in the right direction and you can get some idea about the market.

If you are looking to invest in online stock trading then you should go for websites that deal with stocks. Do not get mislead by the words of the people that you always get good returns by investing in stocks. Online trading has become very popular these days. It offers some sort of online service. You can choose your stocks online.

Internet stock trading has proved very useful for investors who can have all the latest updates on the market. So it has become very popular in today's life. You can use the internet to invest online. So, make sure that you get all the knowledge of the stock market.

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There are a number of reasons why one should create a mock stock portfolio. Here are my top 3:

#1: Find out how good you really are

Of course we're all good at picking stocks - we're intelligent and have a unique perspective that leads to the way we picking stocks. But is there an objective, scientific way of knowing that you'll make more money investing in stocks yourself, rather than investing in mutual funds or ETF? People may point to research that shows that ETFs and mutual funds perform better than the average investor. But am I really just an average investor? What if Warren Buffet fell for that line without trying?

Mock stock portfolios are one of the better ways to find out. You don't risk any real money and can still find out how good you are. Create one and measure yourself against some of the alternatives like an index fund or a few mutual funds. Don't measure yourself against stock investment newsletters that report their own performance - you can never be sure how accurate their numbers are.

#2: Learn from your mistakes

Having a mock stock portfolio, lets you learn from your mistakes without actually losing any money. You'll learn if you buy too early or too late, sell winners before you should or hold onto losers for too long. You'll know if you tend to focus too much on a few sectors, making your portfolio volatile. If someone offers you a free no risk trial period with your portfolio, wouldn't you accept it? A mock portfolio is quite the same. Even though you're giving up potential real profit, it's worth the effort.

#3: Test different strategies

Maybe you have different theories on what will make the most money. Should you pick growth stocks or rely on dividends? Follow the Dogs of the Dow or the Alphabet Portfolio? Each strategy has different ways of being implemented. You could rebalance the Dogs of the Dow every year so that all positions are equal, or you could choose not to. You could choose stocks that have a good dividend yield either because they increase how much they pay or because their stock price fell. Using mock portfolios will help you see how you perform with each strategy.

There are a number of websites where you can create mock portfolios. Make sure to choose one where you can place orders just like you would at a real stock brokerage. This lets you try out market and limit orders and allows you to test your money management skills. Xearn.com is a great place to create to create a mock portfolio. In addition to 3 benefits above, you also get to showcase your abilities and maybe even make some more money.

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It takes an incredible amount of effort, dedication, and persistence to move your company from a general success to a thriving business. Most of that is in your control- you can work hard, pitch your company, and market yourself with the best tactics in the business. But what will really put your company over the edge and make it flourish? Exposure. The key is to get your company in front of as many investors as possible! Get big investors interested in you and the sky is the limit!

What Are Small Cap Stocks?

Small cap stocks are stocks of companies that have small capitalization; small in terms of market value, generally with market capitalization below $100 million.

What Will A Stock Promoter Do For Me?

Basically, stock promoters give you that ever-so-coveted, yet elusive exposure every business owner strives for. They will put your company out there in front of millions of investors. Making huge volume of potential investors aware of your company and what you do. With volume like that, your company can sell stock shares and raise its capital! In turn, you can use that capital to take your business to new heights and do things with your company that you otherwise couldn’t afford to do! The number of public companies is growing every day, and attracting the investors your company deserves can be difficult. A stock promoter can open your company up to investment opportunities and help you turn those investment dollars into working capital!

So, How Do They Do It?

1. They will use a Professional Research Report to showcase all of your key company aspects. This incredibly beneficial report is put in front of hundreds of thousands of subscribers!!

2. You also get unlimited company news releases that will be sent to those same subscribers. Allowing you to have unlimited and constant exposure.

3. The key is to not only get the investors’ attention, but to grab and hold it! You don’t want them to see your company and keep moving. You want to captivate them and impress them. A stock promoter will link your company’s investment opinions with other successful companies (large and small), giving your company almost instant exposure and volume.

What Should I Look For?

When seeking the right stock promoter for you, there are a few thing things that you should find out first. One promoter is not as good as the next. Do your homework.

• Find out how well they are doing for themselves. How many hits does their website get a day? If they are not successful, you will not be successful using them.

• Do they have a large volume of active subscribers? They can’t expose you to hundreds of thousands of investors if they don’t have hundreds of thousands of investors using their services to find companies such as yourself. Again, your success will be on par with their own.

• Social Networking is an increasingly valuable tool for any company owner. A nice feature you will benefit from is chat rooms, message forums, and blogs. These elements put you that much closer to your investor.

• Find out what kinds of success they have had with companies similar to your own.

Questions To Ask:

• How long did it take to increase their capital?
• How much added exposure were they able to achieve?
• How has that company changed since they started using their services?

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Options VS stocks, which one is best for you? This Get rich quick people looking for big gains will tell you options are the best. Longer term individual who can wait will tell you stocks are better than options. But what is the best way to invest your money in the stock market? Each of them has an advantage and a disadvantage over the other.

Options have higher leverage than stocks. Say you find a stock that you thought would be a good buy. You buy it at $50 and a month later you sell it for $60. Not bad a 20% increase in 1 month. Now say instead of buying the stock, you bought the $50 call option for $5. When the stock went up to $60 you sell the call for $10. This gives you a 100% increase in the same time frame.

With this extreme leverage working for you the option defiantly has a greater profit potential than the underline stock. It is what makes those traders who earn several hundred percentages off their money every year able to do that.

Now before you go out and buy options on every stock you think might go up let's look at the flip side. If options can make you huge returns they must also be able to deliverer huge losses. If the stock above went from $50 to $45 your options could be worth $0. When you invest in an option you have a max loss of 100%. If you would have invested in the stock instead you would have only lost 10% of your investment. That doesn't hurt you nearly as much.

Another advantage of buying the stock is you have a long time for something good to happen. When you buy an option it expires at a certain date. If the strike price of your call is higher than the price of the stock by that expiration the call expires worthless. If you owned the stock however you have eternity for the stock to go up. It doesn't matter what the stock does in the near future as long as it goes up in the long run.

Still the temptation of unlimited returns drives many investors to become purely option traders, and rightfully so. A few good option trades can have an enormous effect in your account. Probably the best thing to do is to have a mixture of both stock and option plays. Designate a large percentage of your account to stock plays and a smaller percentage to the high risk high reward option plays.

Everyone will have a different opinion on this. If you don't feel comfortable trading options, don't. If you want to make the big returns in option plays try it, just be prepared for the risk.

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In the penny stock trading business, it's not enough to know how low the shares are. These prices can change even at the last second. It's a never ending raise against who gets the hot penny stock trade of the day. Almost everyone loves financial freedom and would do almost anything to get that. Put down to a specific scenario and you can have the stock market as one example.

The whole thing operates on a very simple principle. You buy a share or shares from a small cap company. Then you stock it and wait for it to go up. When it does, your hopes will be to get that profit at the end of the day. Sounds like fun isn't it? Well it isn't really that simple when you're actually in it. Important decisions are made. Money must be prioritized and accounted for just like you do budget at home. If you slip, you might lose a great sum of money from the hype.

The complication begins with the fact that a hot penny stock is not sold to you alone and you alone. There are many other investors who would buy some shares. The volume of investors against penny shares greatly affects the behavior of stock trading. This can either create demand or not.

Furthermore, you have to consider the scoundrel in the trade or those who pretend to be legit stock brokers. Their modus operandi is they tell you that a hot penny stock is ready to launch and that you must get it while the prices are low. Typically how a real and credible stock broker does. If you are gullible, you may end up spending on a bogus trade and lose your money. To avoid this, don't talk to strangers and believe in too-good-to-be-true invitations.

You have the last say even if you have brokers and advisers. To support your investment, you must have a healthy knowledge of the penny stock market. Here are some tips on where to get additional information about what's current in the stock trade:

- Read articles, blogs, forums, or message boards. Join these online stock trading communities. Understand some stuff there. Although it's not required that you trust those avenues fully. It's best to know what's going on in both sides of the bargain.

- Penny stock newsletters. A little warning on this: Some newsletters are given out for free. In this business, information is delicate and precious. There is money at the end of the line. Stay alert for free information. If you can afford to pay for a newsletter subscription, do it. Your chance of getting a hot penny stock tip is better here.

- Learn how to read quotes and charts. Keep track of the trend. Observe the shares before you trade. A great deal of knowledge is what you need to make sound decisions. It's your best trading ally. Before you get into this business, get a dependable stock broker to do the other half of the work for you. Their advice is most often aligned with your interest. When there's a hot penny stock trade going on, you'll be the first to know. Then the rest is up to you.

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Long investment positions of corporate common stocks carry inherent risks. Advisers, agents like to avoid this subject as it requires more profound considerations via the client investor, and understanding it would reveal the often unjustified entry-costs and management fees.

Risk of General Market Downturn

The stock markets have a positive correlation to general economic swings, and wield at least a couple of bearish years each decade. This leaves the probability of stock markets ending each year at higher levels of 70-80% at best. The industry analysts, advisers or brokers facilitate public ignorance of this easily in bullish periods, where any stock seems to rally effortlessly with the illusion that no forms of risk exist.

Realistically, just the opposite is true. The longer a certain stock has rallied continuously, the more likely institutional holders look to take profit (i.e. sell) before the bearish period commences, or perhaps they know something that the public does not. Of course they need chumps to provide liquidity and buy off them, the role usually played by the general public; this is where the financial advisers and brokers do their magic and sell the "risk-free" sentiment, where "Of course it'll go up!"

Risk of General Volatility Even In Bullish Periods

Prices do not move in nice smoothed curves, but rather ugly zigzags as result of constant quasi-auction based trading on the exchange floors. Even in a bull market, the general fluctuations occur and the simple attitude of ignoring this risk and "focus on the far horizon" typically ends in mediocre or terrible performance.

Accurate assessment of potential loss due to volatility could require a lot of number crunching, but simple methods exist as well. The ATR, or Average True Range, for the historical annual price ranges provides a rough estimate. Most of the free web based price charting services provide this one of many available volatility indicators.

Risk of Corporate Bankruptcy

Stocks from Enron or WorldCom had performed well in the bull market of the 90's, and their demise never appeared obvious until the selling began. This risk always exists in long term long side stock investments, and it increases with length of holding period.

In other words, longer held stock positions carry higher risk of losing close to 100% of the associated value according to historical statistics. Longer held short positions face higher risk of getting squeezed short, i.e. the original lender of the shares demand them back, but even that has a lower loss potential than the upside bets.

Consistent Investment Profit Takes Work

Solutions exist to mitigate or limit the above mentioned risks. Taking short positions, applying market-neutral strategies, arbitrage schemes are some of the many options available to the retail investors. Investment managers who does not acknowledge or disclose these issues imply incompetence or dishonesty, and probably do not deserve the hefty fees.

It takes dedicated self-education, then planning and flawless execution to win in this game. Like many other good things in life, complex, but not impossible. I will discuss some of these solutions in a future article.

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There are an infinite number of smart stock investing tips out there. An hour spent on the internet would find you thousands. However it does not take much to figure out that they can not all be the successes they claim to be.

Below is a rough set of tips or guidelines to help you figure out your own stock picking system.

Do not believe every stock tip you see

One great tip is not to go into Google, search for hot stock tips and buy a load of stocks that show up in the results. Such a strategy could be compared to gambling. Every such stock tip that you read about should be treated exactly as any other potential investment. In other words research it like you would any other company. Also do not be scared of missing the boat or being rushed into any investment. All of the best investments tend to appreciate in price over a long period of time. Do not be rushed into investing your money.

Never stop learning about the markets

Research is your friend. Ask friends about the companies they work for, read the papers, take some financial books out of the library, research on the internet. Familiarity breeds knowledge so the more you can read about the stocks you want to invest in, the more of an informed decision you can make.

Take your time before buying

Often if a stock suddenly becomes attractive, maybe due to some recent news released it does not always pay to buy straight away. Often the price will spike for a few days before falling back a little as some investors take some profits.

Do not be stubborn

If you have made a bad investment and lost money do no be afraid to sell the stock and take a loss. It is better to lose 10% than 50%. Always set a stop loss to minimise your risks and re-evaluate the stock if the limit is reached.

If you are unsure seek advice

If you are unsure then do not be afraid to seek advice prom a professional financial advisor or broker. Be aware that they will likely be seeking commission so take any advice with a pinch of salt, however do not always ignore it.



Many investors mistakenly believe that stock market trading is the only way to profit. That way of thinking is great if the market is trending upward, but what happens when the indices slide down? As too many investors know, markets fall down more quickly than they ascend.

If you include an option trading strategy, you can earn money whether the market is up or down. In case you are not conversant with options, they allow you to decide whether or not you wish to purchase or unload the shares of a particular stock for a set price within a set period.

Unlike stock market trading, options can make you money whether the market is moving up or down with two basic tools: calls and puts. Calls are typically bought when you feel bullish about a particular stock, sector or index, or expect it to go up. Puts are generally purchased when you are bearish about a certain stock, sector or index; that is, you expect it to go down.

Even though any investor can derive benefits from an option tutorial, it is important to keep in mind that all calls have strike prices, which are basically the prices at which you will choose either to buy or sell the underlying stocks. Options also have expiration dates, which is the same as saying that options are wasting assets with inflexible time limits.

You have to pay a premium with a call to confirm your right to purchase a stock at a set price. The premium is generally ranging from 1 cent to hundred dollars. It depends on the stock. As you confirm the price, you need not worry about its price in the future.

What does it mean? It means that if you buy the stock XYX $ 10 calls, you bet that on or before the January expiration day, i.e., the third Friday of the month, trading will be effected for more than $ 10. In other words, your call option confirms your right to buy shares at a discount.

On the other hand, when it comes to a put, it costs you more to guarantee that you will be able to unload a stock at a fixed price rather than at its market price down the road. If you purchase ABC February $20 Puts, you are wagering that on or before the February deadline, ABC shares will be going for less than $20 so that you can realize a profit by selling them at $20.

While an option trading strategy requires a little know-how, it takes less capital to start than stock market trading and it allows you to profit in any market. And unlike buy-and-hold stock investors, you'll actually come to welcome the volatility in the markets

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The stock market trading is an open field for those who want to join in the stock trading. Unfortunately, not all stocks are affordable. But there are basically three levels of stock investments to choose from. There is the large cap investment for multi-billion firms. Then there's the medium cap shares investment. And lastly the there's the small cap trading commonly known as penny stocks. Some inventors choose to trade penny stock.

There are many names for penny stock. Some stock market people would call it microcrap stocks, some would say small caps. Others would also refer to it as nano caps. The closest term used is penny shares. Occasionally it is also referred to as emerging growth. This trade penny stock article will use three variations - small caps, penny shares, and penny stock for the purpose of easy recall.

Why do some traders prefer penny stock trading than other stock investments? Here are some of the obvious reasons:

- It's cheap and thus affordable. The trade is usually pegged for a starting value not exceeding five dollars per share. In fact, the most frequent practice is priced at three dollars, one dollar, less than a dollar. The only hitch is that not many investors frequent this investment because it is less liquid. Also if these stocks are derived from pink sheets, it's normally lacks important information vital to your decision making.

- More prevalent press releases than large and small cap stocks. Yes, there are more press releases with penny stocks than the other two stock investments. Penny stock promoters do this to expose the information to the public thus attracting more investors. The downside is that, many of these press releases are abused by fraudsters and over hyping them. Fortunately, if your source is credible, media exposure increases the value of your trade penny stock thus an opportunity for profit.

- Penny stocks offer relatively high potential return of your investment. Yes this is true. While the dangers of the small caps investments are often forewarned, there is still good money that can be made here. When you understand the trade enough to have that level of confidence, you will see the benefits. The right attitude should be to remember that every investment has risks.

- Some emerging companies or new products use penny stocks as a launching pad. Well some but not all. If new products are launched, there is no surety about its success yet. Your only way to determine its probable success is to check the manufacturer's background. In this trade penny stock business, you have to do your own research extensively. Many successful small cap investors spend about five hours per day working and digging information.

If you want invest in stocks and you don't have enough money yet, try to opt for the small cap investment. Then when you learn the trade penny stock loops, you can always work you way up. Your success can be determined by how much you are willing to work for it. Just stay with accurate facts and be smart with your decisions.

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If you keep losing money in your stocks and you fill that something is wrong and probably you are missing some point by reading this article it will open you a door to the information that is known for just few specialists traders that are making money.

I was myself in the same situation and I had the same fillings till I was exposed to the Day trading methodology that I've learned from one of the top Day trader's person.

I've searched for a very long time an equities mentor that will guide me and I've looked for a person that uses this stuff for his day time living.

I've learned all Day trading tactics and methodologies and I've practice it for a long time and proof to myself that this is actually working.

It becomes evident for me that only too few people and mostly the big financial companies are the only ones that make a lot of money from stocks trading. I understood that you need to know better how the "Experts" works in order to make money in the stocks market.

Hereby I'm going to give you some valuable tips that will help you understand better how it works.

Lets moves over the basics: Longs positions are bunch of stocks that we are buying and which we expect the stock price to raise in order to gain profit and the opposite goes for Short positions.

I found out that not too many traders knows much about short positions and how much can you gain by being short on downtrend stocks in downtrend market.

First of all the most important thing is to trade only in respectively to market direction, I know that you probably have heard of that, but you need to keep that in mind while managing your positions.

Second, is to prepare stocks picks based on Daily candlesticks charts over 6 months period, before the stocks exchange market opening. The stocks picks need to rely on good technical structures as higher high break out lines for longs positions or lower low breakdown lines for short positions. I can recommend you a great site with free stocks picks www.winstocks.net, which publish stocks picks based on technical structures on daily based.

Third, when market starts watch your stock picks along with market index. I recommend watching SPY symbol (ETF of S&P500 index) in order to see the market direction. If the market is up use the Longs position otherwise use the Shorts ones.

Do not use your Long positions if the market is down and vise versa.

Place stop loss command around 15 cents below the entering price in longs or above the entering price in shorts in order to protect your self. Don't move this stop loss command down in longs positions it's the same as your Car breaks.

Use one of the online trading brokers, which allow you to buy stocks with very low commission directly during market time while getting online quotes.

I will give you some more tips in the future.

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A lot of beginning investors and veteran traders alike believe that any stock that has more than 30% of their shares owned by institutional traders is an enviable situation. If the big boys like it then it must be a good stock. On the surface who can argue with that logic. Everybody knows that the big money would never invest in a stock that had not been thoroughly evaluated.

The problem with institutional ownership is not when the big boys love the stock; the problem is when they all of a sudden don't love it anymore. Institutional ownership can be a two edged sword, knowing how to wield this two edge sword should be an important element in any ones trading strategy.

On one side, when the big boys love a stock, they can support it through the rough times. They can offer a certain amount of liquidity when the individual investor wants to liquidate. And quite frankly, everyone loves to own the stocks the big boys do.

However, on the other side, what happens when the big boys no longer like a particular stock? What happens if a lot of institutional money decides to close a position or take profits? If 30 or more percent of the shareholders decide the investment isn't "working out" and they decide to liquidate their position the price of the stock will ultimately decline.

Another problem with strong institutional ownership occurs during a strong market rally. When the market is strong and institutions own 60 percent or more of the underlying shares, the stock might not move much during the market rally, simply because the institutions trading strategy focuses on a more "buy and hold" outlook.

Since the majority of the shares are "long term" positions there will be low "trading" activity because the volume of the shares being traded is hindered by the institutional holders. The problem now is when the institutions decide that their "long term" position is not participating in the market rally, because of this, they may decide to pull their investment dollars out of the stock, which isn't moving, and reposition themselves where the action is currently taking place. This sudden liquidation of a "non-performing" stock could be severe to our institutionally owned stock.

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Investing is an activity that many people, worldwide, take part in. It is a way to gain income and plan for retirement. Many people who invest also find it fun to be a part of. The saying goes, the more risk you take, the more you stand to make. This is especially true for investments such as option trading.

This style of stock trading is risk-prone, especially for those who are not familiar with it. Most option trading contracts have disclaimers upfront that tell the investor to not use funds except for what is called risk capital. A lot of money can be made very rapidly with option trading. Conversely, a lot of money can also be lost.

So what precisely is an option, and how does one go about trading them, and why? All of these are important questions and issues to look into prior to deciding whether or not to join in on option trading. Although most people never go so far as to invest in options and their trading, it is extremely important that you find out more concerning them prior to making a choice. Obtain a stock option education through learning everything you can about options and the people who trade in them.

An option is a contract that gives you the opportunity to buy an asset at a specified price until a certain date. Even though you are given the right to purchase you can decide not to do so. If the purchase cut date has arrived and you feel this is not a good purchase you can decline to make the deal. However, you will lose whatever money was set aside to make this purchase with.
Even if the value of the asset is found to be worth far more than the buyer or seller previously believed, the seller is still obligated to sell the asset to the buyer at the price stated in the option. This is due to the fact that an option is still considered a contract, and as such is bound to the agreed upon stipulations.

Option trading requires a large amount of option strategy. Because there is so much money to be made in this sector of investing, it can become a very volatile investing environment. It is vital, to this end, to make sure you are aware of what you are doing or enlist the help of a professional in the field to help you. The internet is full of resources for those who want to learn about this part of investment.

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Many people define the best penny stocks by how much they cost per share. It is not reliable to pick a penny stock based on this method. There are much better criteria for analyzing such high risk stocks. Even if you do find the greatest stock pick in the world there is still risk involved. So dont ever think that any stock is a sure thing. Learn a bit about the stock market first and understand fluctuations. Then understand that those fluctuations are amplified ten fold or more with penny stocks. No joke.

There are quite a few companies out there selling services offering advice on penny stocks. The number one out there is Mr. Peter Leeds. Think about this for a second. How did he become number one? Is he stock market savvy? Does he really know what he is talking about? Yes and no. The point I one to make here is that of course his picks are good picks. Think about it, he is so well known now that tons of people follow his picks and jump on them at a moments notice. This of course causes a demand and price surge in any stock he recommends as penny stocks take relatively little activity to react in a positive direction. So it always looks as if he has a flawless record of stock pick recommendations and his service subscriptions continue to sell like hot cakes.

Here at Best Penny Stocks and Picks we track hundreds of penny stocks and make judgments based on sound analysis and then email this out to a select group of individuals every morning before the stock market opens. We do not profit from out services except to charge for advertising and promotion. We have relatively few clients in comparison who range from very savvy to completey uneducated concerning stocks. The common thread among all is they dont just jump on every recommendation we make. Thats completely fine with us and we advocate such investment behavior.

There is nothing wrong with sitting and watching to see what would have happened to your money IF you had invested in any particular stock. We have recommended all along that you take your time and get to know the stock market and have even recommended using practice trade accounts. These are accounts that use fake money to trade with using real stocks. It really helps you get a feel for the market and see what you are comfortable with.

Its ok to follow other peoples recommendations if you yourself dont have the time to do the research. You just have to make sure you have been following a reputable service and not someone just trying to make a quick buck. Penny stocks seem to be alluring to all the bad guys on the internet. Its not uncommon to come across an email or website purporting to be just the source of information youve been looking for. Just take you time and be cautious until you get a feel for whats legit and whats not.

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Have you been thinking about a career in the stock market? Do you have the drive and ambition it takes to make bold and unpopular decisions? Then this just may be the right career path for you. While there is no cookie cutter mold you have to match up with to be successful in the stock market there does seem to be a common thread among those who have succeeded in this career. We are talking mostly personality commonalities here. So lets see if you have the right personality for this job.

First off do you think you can speculate with the best of them? We are not talking about uneducated speculation here; it could be called analysis in fact. The art of predicting the future has to be the number one character trait common among those who have been wildly successful in the stock market career path. Ask anybody who has been successful in the stock market, either broker or investor, and they will tell you it was because they were able to get in early on something before public awareness made it explode in profits.

That my friend is the ability to predict and speculate. That is what will bring home the bacon. Nothing ranks higher on the list of desirable skills than this. This is not something you learn overnight but it definitely helps if you fell you have a knack for it. Over time you will gain more and more experience and will refine those speculating skills. Who knows, maybe you will become the next Warren Buffet/Oracle of the stock market. Dont underestimate yourself by no means even if you feel you only have a small ability in this arena.

Varied education abounds among stock market professionals. Many stock market professionals have humble beginnings. Of course there are those who went to well known schools to get where they are at but the point is that is not completely necessary. Education will certainly help in the long run but it is not required. If this is going to be your passion and life pursuit I would say go ahead and get school out of the way. It would just pay dividends, no pun intended, in the long run.

Are you a leader among followers? Profitable decisions are usually the least popular. Read that again because that will be your motto and the varied interpreted motto of all successful professional working with the stock market. Are you easily swayed by peer pressure or could you care less? Be honest, if the pressure is on and you have limited maneuverability, will you clear your own path and make the decision with the most opposition? This is not to say that the best decision will always be the most opposed but it certainly happens.

Take all these factors into account as you consider you future career in trading stocks, investor relations, or being a broker. From large-cap to penny stocks these traits are all important.

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There is no doubt that penny stocks are a risky and thinly traded breed of stocks issued by relatively tiny companies. Also, the SEC does not require penny stocks to follow their reporting rules. This combined with unclear or unverifiable financials can make this stock seem like something to avoid altogether. Penny stocks can be dangerous for investors of all experience levels but especially for amateurs just getting their feet wet. Here are five tips to help find the best penny stock picks.

1. Profit

First off is the company you are interested in investing in experiencing any sizeable profits. Better yet is their profit to debt ration favorable. Youd be hard pressed to find one of these little companies without debt but that doesnt mean you cant be picky. In this case the least amount of debt with the most profit will be a better investment. Another thing to watch is how progressive the debt payoffs have been. This would be a sign of good or bad financial management.

2. Industry Trends

This is one of those methods that almost all people use anyway. If there is a high demand for oil then people instinctively want to go buy oil stocks. The only problem with this kind of trend analysis is it really isnt forward looking analysis. This is just waiting and seeing which doesnt get you in on the ground floor of and investment before the public takes notice. Investing ahead of an industry trend is far better. So look for stocks in industries that are the edge of more demand.

3. Personal Interest

Theres a saying that you do well at things you enjoy to do. This makes logical sense and it works with stocks as well. If you invest in something that actually interests you then you will naturally be more studious and make more of an effort to choose the best stocks. It can be very boring researching stocks that dont interest you and you are likely not to be as thorough as you should be.

4. Tenure

How long has the company been in business? This is not to say that investing in newer companies is a bad idea but its more likely to be safer investing in a more established company with some kind of track record.

5. Bad Behavior

Last tip is an obvious one. Stay away from companies whose operations or transactions have been questionable. Even if the bad press is not completely true it will be difficult for a company to recover in the short and maybe even long term.

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Investing is the act of dealing with the extra money you have made in an intelligent manner. I say intelligence because it is certainly smarter to have you money working for you than just sitting in an account that is barely earning you any interest whatsoever. If you are not making more money from you money then you are doing it all wrong. Capitalism is fueled by investing. If you want your piece of the pie you have to jump in the mix and put your money to work.

Dont count on your companys retirement plan to put you up in the Bahamas after your working days are over. Investing is most definitely an art 90 percent of the time and if you have the gift of speculation you are perfect for the stock market. So why not give the market a try and put your money where your skills are. Even if you dont have this gift you still can profit quite handsomely from a trend that is hot. Whats hot? The stock market is, even when it is down. We live in a market that affords so many with the opportunity to do more than just sit around and watch their money be spent at WalMart.

Investing is a way of looking into o the future and predicting a profit. Predicting your own profit that is. No you dont become a fortune teller but you do become a sort of an entrepreneur. Like it or not you are taking risks that a majority of others are just too scared to take. In fact, once you start investing you will find that many people look at you with a sort of admiration and will even often talk about how they should invest, yet they never do. People in your work place will see you as the Mr. Miyagi of money. If they only knew it wasnt that difficult.

We are not talking about trading here. Thats a whole other animal. Trading is typically buying and holding for relatively short periods of time while investing is studying and strategically holding for the long term. There is money to be made in both methods but investing is certainly less effort and stress for the most part. If you get a thrill out of buying and selling then maybe trading is the better option. However, if this does not get you juices flowing and you just want a nice retirement egg then investing is the right choice.

Investing in the stock market is definitely one way to accomplish you financial goals. We all have bills. We all have extra cash, whether small or large. Why not use this extra money you have after paying the bills to increase you money even more than what a savings account would. There does seem to be some emotional barriers to overcome if you have never invested before. For some reason, if it is your first time investing, you will feel much internal opposition. Its just not easy to give someone hard earned money and trust that you will make more on a smart investment.

Is investing for you? Well sit down and write down your income and bills. What do you have left over? Do you have even a little money you could try out the stock market with? You dont need much. Give it a try.

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There are many different trading types can help you to make money in the market. If you are just starting out it can be confusing. You may be asking yourself, how do I make money and what is the best trading system for me? Here I have composed a list of different trading systems that have been proven to make money in the stock market. Study them and find out which is the best for you.

1. Trend traders, these are traders that simply buy up trending stocks and sell down trending stocks. An up trending stock is a stock that keeps making higher highs and higher lowers. What a trend trader would do is get into this stock at their low and hold onto it until it stops making higher highs and higher lows. That is it. They do not necessarily have to look at the company's fundamentals. If it is going up it probably has good fundamentals anyway.

2. Swing traders, these traders play off of support and resistance. Support and resistance are imaginary tops and bottoms of stocks. For example if a stock is bouncing between $42 and $50, $42 would be its support and $50 would be its resistance. What a swing trader would do is wait until this stock goes down to $42 then buy it. They might place a stop at around $40 so if it breaks lower they will only lose $2. Then the swing trader waits until it either hits his stop or resistance at $50. Let us look at what could happen here. If you are right you make $50-$42=$8 if you are wrong you lose $42-$40=$2.

That means you have a 4/1 risk reward ratio. If you win only30% of the time with a 4/1 risk reward ratio you still make money. Risk reward is very important in swing trading most traders will not take less than a 2/1 risk reward ratio. Also because in a swing trading you will be wrong more than you are right you will need to only risk a small amount of your money in any 1 trade.

3. Break out traders; these are the opposite of swing traders. They want to buy stocks that break above resistance and sell stocks that break bellow support. Let us say the stock in the example above broke out to $53. It is now above its resistance of $50 now old resistance becomes support and it will probably go higher.

A break out trader would buy it here and follow the stock up. They would a stop bellow $50 and move it higher and higher as the stock goes up. Your trade ends when you get stopped out. How much higher to place your stop when a stock moves up depends on the trader. Some traders use a trailing stop that can put a stop a certain percentage below the stock's price. Others, like myself, prefer to manually set the stop were they think is best. It depends on the trader.

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Many people believe they can become a great trader overnight. They also believe that it will not take that much work. This is simply not true. There are many steps you must take in order to become a great stock market trader. Here is a step by step way to become a great trader.

1. You must first learn how the stock market works. Whatever you are using to trade the stock market, fundamentals, technical analysis or something else, you should first learn about it. Learn how you can decide if a stock is a good buy. To do this you should read websites and books that are written by people who are already making money in the stock market. See what they think is important and try using their systems yourself.

2. After you have a firm understanding of how the stock market works it is time to develop your own system. Make a set of rules for you to follow when trading. Buy when a stock does this, sell when a stock does that. These rules need to be precise so you will not have any trouble down the road.

3. After you have developed a set of rules for yourself the next step is to open a paper trading account. Practice trading with your rules in your paper trading account. Follow your rules strictly. If you make money in your paper trading account, great, it's time to move on to step 4. If you haven't been able to make money with your rules go back to step 2 and develop a new system. Keep doing this until you are making money.

4. If you have a system that is making money in your paper trading account it is time to trade real money. Be careful when trading real money. Most traders will let their emotions control them when they are trading with real money. If you want to make money you have to get in and out when your system tells you to. It might be good to start trading with just a small amount of your portfolio until you can trade your system without letting emotions get in the way.

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Stock Options are wonderful! This clever derivative of the equities market has to be one of the most ingenious inventions of modern times. For the trader who can learn how to win at trading options there are many luxuries in life that can be experienced.

Success in options trading requires a consistent approach for long-term success. This statement is not meant to be grandiose, idealistic comment made by some 'trading theorist', rather, it is a statement born out of the hard knocks and success experiences of the author and many other long-term, successful trader contemporaries.

This "consistent approach" to options trading can also be called a "trading system", or an "options trading system" in this case. The term "trading system" is not necessarily confined to a series of computerized "black box" trading signals. A trading system could be something as simple as "buy an option on a stock in an uptrend that breaks the high of the previous bar after at least two days of pull back down movement that make lower lows." A trading system is simply an organized approach that takes advantage of a repeated pattern or event that brings net profits.

Since an Option is a "Derivative" of the stock you must derive your options trading system from a stock trading system. This means your trading system must be based around actual stock price movement. That said, your trading system doesn't need to work for all stocks it just has to work for certain types of stocks, certain volatility of stocks and certain price levels of stocks etc... So focus your trading system on certain stocks that have price behavior that is predictable to the net results you wish to abstract from a stock.

You can develop a trading system, a trading approach, and a trading methodology by identifying a price movement pattern (or lack of price movement pattern) or some event that occurs on some sort of regular basis. This means you can trade price behavior patterns on price charts such as: traditional chart patterns, trends, swings, pivot points, boxes etc... or you can trade events that motivate stock price such as earnings runs, post earnings runs, stock splits, seasonal factors etc.... Bottom line to make the maximum profit in options trading you want your stock to move in your favor fast and you want it to move far. Just a relatively small movement in the price of a stock can double your money in options!

There are so many different strategies and combinations that you can trade with options. You can buy calls and puts for directional trades. You can employ call spreads and put spreads to trade directional movements with a buffered risk, and profit. You can sell or purchase spreads to receive the credit of the premium decay by options expiration. You can trade straddles and strangles if you expect a big move but are not sure in which direction. You can also get into ratio back spreads, condors, and butterflies... And if you're really feeling crazy you can sell 'naked' options (just better use a stop loss or you'll end up like one of my old trading buddies who ran an account to $20 million then gave it all back selling naked options.) You can go to cboe.com for more information on options trading.

Directional options trading systems are the best. Keep it simple, buy calls for and upside trade or buy puts for a downside trade. But this means you need a directional stock trading system in order to trade directional options.

Here are a couple of different approaches for directional systems:

Develop an options trading systems that trades the swings in stock price movement. There are many good swing trading systems available today. We suggest you obtain one. Bottom line with swing trading is that you want to swing trade with the trend. Options brokers these days have advanced order technology that will allow you to enter swing trades based on the price movement of the stock so you don't have to watch this stock all day. That huge advancement to swing trading options.

Swing trade the day bars. Most swing trading systems are based on daily bars on the stock price chart.

Swing trade the Intra Day Bars! Their other fantastic systems based on intraday charts that pin point swing trading entries.

Develop an options trading system that trades three to six month trends. This is where the big money is. Trading the large trends is where many are able to place larger sums of money to develop their net worth.

Develop an options trading system that trades pivot points. Pivot point trading is arguably the best way to trade options, because price action usually is explosive, and happens quickly in our direction when a trade works. This is good because you can use shorter-term options and leverage yourself a little better. And it's also nice you can make great gains in five days to four weeks on average so time decay issues become less of a worry.

There are many different directional trading methods you could use to trade options. You need to pick one, work it, and never use more than 10% options position size per trade on small accounts 1% to 5 % max position size on larger accounts. This methodical way of money management trading options is the fastest way to potentially rapid account growth, helping you avoid needless set backs.

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