Stock Market Winning Attitude

Not every investor wins in the stock market investment, some of them lost their money. That makes people wonder, what happen, is it based on luck? Is luck a significant factor of success and failure in the stock market game, as some people say that stock market trading is similar to gambling, both of them include a great deal of risk. To be successful or not in the stock market is not only depending on luck, but also it has something to do with qualified information and attitude.

Qualified stock market information has much to do with success or failure at the stock market. It’s the information that make stock market trading more than just guessing. By analyzing trends of the market and investment, investors can make an educated estimation of the future of their investments.

The proper attitude an investor must have towards investing often goes unseen. Investors often fall into the wrong investment attitude, which then leads them to the wrong decisions and make them doing impulsive buying or selling.

Understanding that reality, investor should take deep consideration about the winning attitudes and realize what attitude they should be avoiding :

1. Many Investors Present an Impatient Manner

Many investors get under the impression that they could get rich overnight by doing few stock market investments. They don’t realize that stocks need time to mature and appreciated. They become unfortunate because of their own thought to make quick money so that at last they make themselves discouraged or sell their shares for a lower price than it supposed to be.

2. Many Investors Look to Take the Risk to Be Millionaires Overnight

Warren Buffet, the Wall Street Tycoon share his secret that he has built his wealth over stocks that are stable and demonstrate continued growth over the years, these stocks are preferable over volatile stocks that could crash at anytime. He also advises investors not to bet all of their money into today's skyrocketing stocks.

A smart investor should split his portfolio into low-risk, medium-risk and high-risk investment and invest in such stocks depending on how much risk they are willing to take. Some investors fail to diversify their portfolios. Some of them take such a risky investment by putting their money on a high risk stock market investment. What is necessarily to consider is investor’s own risk tolerance to make the investments.

How to Avoid Stock Market Scams

Stock Market
As the prices increase fast nowadays, people would instantly like to grasp any opportunity that will make them money. This is a chance for deceitful people to take advantage of them.

There are many uncontrolled scams today that make people become so alert of them. Even when they realize that there is a constrain to be scammed out there, they still could not differentiate what is a scam and how they can avoid it.

Now, one of the proliferating scams is the stock market scams. A lot of people are getting tempted to join these, simply because their offer seems so hard to resist.

Why? Because who would refuse to accept a “get rich quick” strategy? These are just little things but are actually bigger problems than what you thought they are.

Here is a list of the common stock market scam lurking mostly in the internet today:
This is important for people to know what stock market scams are and how can they avoid them.

1. The “Pump and Dump” stock market scam

This type of stock market scam is mostly spread in the Internet. Here, people usually get to see messages posted in the Internet advocating them to purchase a stock at once. This type of scam also urges those who have stocks already to sell their stocks immediately before the value depreciates.

These misleading scammers claim that they have reliable sources about a bullying development. They even claim that they utilize a foolproof combination of the stock market and the trade and industry data so as to get some stocks.

The bottom line is that this type of stock market scam is harmful especially to those who are starting small. In reality, people behind this scam would want to manipulate the stock market through small businesses because small businesses are easier for them to manipulate.

2. Pyramid scam

Just like its motherboard, this pyramid scam in the Net tries to accumulate money from the consumers by letting them invest their little amount of money and grow it really big, provided that they recruit more people into the company.

These two are the most common stock market scams lurking in the Internet today, and the only way to avoid them is information. It’s a must that people should be aware of them, know their styles, and how they recruit people. If in case, they cannot determine if it is a scam or not, they should verify the claims from the right people. That’s the simplest thing to do to avoid getting trapped.

Minimize Your Risk in Stock Market Investing

Nobody wants to lose in trading on stock market. It doesn’t necessarily mean that to achieve good profits one has to invest heavily and risk greatly, although people say that investing money entails a great amount of risk.

A well-informed investor will make a good decision on how to make profits with minimum loss. The tips is to determine if the profit is worth the risk . Don’t ever take risk that will bring away your everything. This is not gambling. In stock market investing, people should ask themselves whether they want to take the risk.

And that’s why, before you start trading on the stock market, you should ask yourself about:

• What is your goal? What do you want to achieve by investing in the stock market?
  


• Are your investments going to lose money?
  


• Are you willing to take bigger risk for better profits? How big?
  

By deciding your own achievement goals, you will know how long you are willing to wait for a stock to gain profit. Also consider your own limit on how much you are willing to lose. It will bring you idea on how are you going to invest in stocks, to determine your stock investments strategy.

If you choose to invest in low return stock, it means to gain a considerable profits, you have to increase the amount or increase the length of time invested.

To complete your knowledge on stock market investments, here are some tips to minimize your risk:

1. Know when to invest
The best traders don’t trade everyday and all the time. Don’t get excited when your stocks go up or fall down, stock prices go up and down all the time, use 50% of the time for waiting and studying how a stock performs. Don’t make decisions based on a whim and factors that don’t usually affect a stock in the long run.

2. Try to be discipline
Wait for the best stock to come along. Don’t get over excited to trade on a stock that looks half-decent enough.

3. Watch out for big stocks and concentrate on a few
Don’t waste time by dabbling in so many small stocks with minimal profits. Make small moves but with big payoffs.

4. Don’t be emotionally involved
Losing money can get you depressed and making money excited. That’s why in stock market investing you should detach yourself from your emotions to make yourself looking at things objectively.

Trading stocks could be a high risk high return scenario.Take your time to study, research and be patient.
Don’t take unnecessary risk, it’s your money, your loss

Sustaining The Future Of Investor’s Stocks Market

Stock Market

By investing money into the stock market doesn’t mean the investment has a life on its own and would produce return money for the investor every month.

As an investor, you are the most important factor of the success of your investment, whether you are investing your money using stock broker or you do it yourself individually.

Here are some few investment tips that could preserve the money you are making from the stock market and prevent future losses:

Ø Stock listing.
To make the investment grow promptly, investor should have their own list of companies they have interest to buy shares on. This list make them be able to check up the profit of each company's earning every month.

Ø Proper timing.
Knowing the general market’s condition would play a critical role in the profit and lost of money invested. Although investor has invested on a company with stable earning sales, they are still not safe; investor can lose their money at anytime. When the market moves into the opposite direction, investor would not be making money. It is now their decision to buy or sell their stocks.

Note: Never be too emotionally involved with investments. Remember that stock market is a game that needs high mental capacity and less emotional burdens. Meaning, investor should begin to move on when they have been proven wrong with their timing. Accept the losses and try winning the money back.

Ø Buying and selling.
When investor has lost money from the companies they have invested on, don’t hassle. It is still in hands whether investor would continue to trust the company’s competence or not. Many brokers advice that cutting down the losses in investor’s list of stocks is significant for the future of their investment.

When buying for new stocks, it is reasonable to analyse the stocks first by investing a smaller amount of money. By doing this, investor would be able to analyze the market condition and if losses occur, it wouldn’t be too much of a load in their part.

Ø Balance.
To know which stocks are suitable to buy, investor should scrutinize the price, volume, and daily highs and lows in the environment of the stock market. By doing so, they would be able to know the market trends and analyse the prospect companies.

To provide investors with high ROI stocks, know the environment and trust their own judgment in deciding the right timing to buy and sell. By doing this, investor would ensure that the future of your investment would be in safe hands.

How Stock Market Trading Happens

Stock market trading is the buying or selling securities or commodities specifically in the stock market trading, also known as a market for the trading of publicly held company stocks as well as associated financial instruments such as stock options and stock index futures.

Each share of stocks represents a small piece of ownership in a company. The more shares somebody holds, the more part of the company he owns. And then it translates to the more dividends he can earn when the company profits.

Two basic methods of doing stock market trading:

1. Traditionally
Stock markets open while trading happens on the stock exchange floor. In which when it’s open, lots of people are seen rushing around, shouting and gesturing to each other on the exchange floor. Traders often seen talking on the phones, keeping a close eye on the consoles and entering data into terminals.

2. Modern Way
Here stock market trading happens through electronic exchanges where everything occurs online real time in the networks. This electronic market employs a vast network of computers to match buyers and sellers instead of human brokers. It’s faster and more efficient, investors get an almost instant confirmation on any trades done.

However, to get a stock market trading works, investor needs to get an investment broker first.

On traditional exchange floor, the broker orders the department to send an order to the clerk on the floor, after being asked to buy shares at the market. This clerk alerts a trader to find another trader who is willing to sell the shares the investor requested. When two traders agree on the price of the stocks, then the deal can be closed.

Notification is sent back the same way until the broker calls the investor to inform him on the final price. This process may take a while depending on the market and stocks. Days later, the investor receives the confirmation mail.

The electronic counterpart is less complicated because the stocks buying and selling are matched by computers in real time. And investors get instant updates on what happens to his stock trade.

The Danger of Online Stock Market Trading

Reading the title above, maybe you become curious why an online stock market trading can become such a dangerous transaction?

Almost everybody, from novice investors to expert day traders, can participate in online stock market trading, as online stock market trading has made it possible for millions of individuals, especially those who are not keen or experienced on investing in stocks the traditional way, to play in the risky stock market game.

Online stock market trading has many dangers for those inexperienced and if you are not so careful you could find yourself end up losing money instead of earning large sum of it.

Online stock markets trading allow individuals to participate in the stock markets at greater speed. But this flexibility also make it easier to make investment mistakes. Therefore, the fundamentals of smart investing should still be applied in online stock market trading to avoid falling into traps.

One of the most common problems with first-timers in online stock market trading is they think they can make a lot of money online even without any investment skills and knowledge. This is probably brought by stories of overnight successes. They must keep in mind that for every ten investors that makes lots of money from online stock market trading there are at least ten who lose money.

The reason why new online stock market traders think that they could survive in online stock market trading without any investment skills and knowledge, is because markets have been bullish recently. For the past six or seven years, common investors made significant profits from any buy and hold strategy. Investors only start to realize the importance of being financially savvy when markets show bearish signals. That’s the only time they employ smart financial planning through diversification.

What potential online stock market investors need to realize is that online stock market trading is really no different from traditional stock market trading. The web hasn't changed the fundamentals of smart investing, The flexibility of online stock market trading only has made it easier to invest for investors. Individuals – like most professional day traders - should still have a set of rules and guidelines to help them avoid the dangers of online stock market trading.

Like in traditional stock market trading, the first thing you have to do is to prepare yourself with basic information about the company you’re investing into, so you could avoid “gambling.”

Investors should do some research in performing some fundamental analysis to determine if the stock they want to buy is worth the price. There are good source of information such as websites of major brokerage houses, finance publications and mutual fund companies.

As online stock market trading is easier, it becomes more tempting for individuals to trade often. But investors must realize that it's tough to beat the market on a consistent basis. For the long term investment, a buy-and-hold strategy is the best way to invest even in online stock markets trading.

The Stock Market System

stock

As a corporation is formed, its initial shareholders are able to acquire shares of stock from the point of subscription when a company is created. The stock market system is an opportunity for the trading of shares of stock of listed corporations.

When a company starts to be traded to the public, the primary market comes in where those who subscribe to the initial public offering (IPO) takes on the shares of stock sold from point of IPO. When investors who bought into a company at IPO point of view decides to sell their shares of stock to other people, they can do so by going to the stock market.

The stock market is a secondary market for securities trading wherein original or secondary holders of a company’s shares of stock can sell their stocks to other individuals within the frame work of the stock market system.

The stock market has buyers of stocks or those who want to own a part of the company but weren’t able to do so during the initial public offerings made by the company to the public when it has decided to list itself as a publicly listed company.

The secondary market or the stock market allows other individuals to sell shares of the company when the initial shareholders may have realized that they want to sell their shares after gaining either significant profit or realized significant loss from point of acquiring a company from its IPO price.

As the stock market has developed and progressed over the years, the way stock shares are transferred from one individual to another has become more complex and more challenging to be regulated. Technology has aided in providing more efficient ways of transactions. Front and back end solutions are put into place that helps direct the exchange of shares of stock in timely and secure manner.

Public education over how the stock market works is one of the primary concerns of the investing public in order to promote the trading activities of the stock market to other individuals who may also benefit from doing transactions over this secondary type of equities market.

With the large quantity of relevant company information on performance of publicly listed companies, this information will help the investors to become more aware of the directions of the companies where they have share of stocks on and this will also aid them in directing their investment strategies.

Stock Market Investment Strategy 2

stock market

With the advance of information technology, people from all over the world go crazy over stock market investments. It’s all because of the convenience of information technology are found its place in the world of investments and computing.

Although some financial experts often say that jumping into a lucrative but challenging world like stock market investment isn’t made for the faint hearted people, today stock market investments are selling like hotcakes.

For those people who want to get the best stock market investments, they should look into the following advices:

• Don’t gamble, stock market is a risky business
  Buying stocks isn’t as easy as 1-2-3, although it does for some people who are capable of doing it. Not many people know when to wait or when to sell. That’s why it’s best not to gamble everything you have on stock market investments. It’s better only to lose a little and only as much as you can afford.

• Know your own strength, the exit strategy
  Where liquidity of their stock market investments is extremely vital to people’s business, they should know that whatever liquidity they have can be easily converted into cash. Many stock market investors ride their stock prices high and maintain an exit strategy when things get out of their hand.
  

• Be comfortable with the sum you invest in
  Even if the stock market investments offer once in a lifetime opportunity return, just make sure only to invest in with the sum you are prepared to lose. Don’t take unnecessarily risk that you can’t afford later on an attractive IPO (Initial Public Offering) of a huge company.
  

By paying attention to the advices above, hopefully people can invest wisely in stock market investments. Know how to play is as important as know when to wait and when to stop.

Stock Market Investment Strategy 1

Stock market investment is a risky business, but it can’t stop any aspiring investors from jumping into it, taking his first step in the investment. How the investor will try to work on the investment lies upon themselves, therefore they need to know and equip themselves with stock market investment strategy, which are:

1. Knowledge

Smart investors would take a deep view of the past records, current performance and future plans of the company they want to invest their money in. They will learn about all the necessary and crucial information about the company.

Wise investors must know the fundamental value of stocks they are going to buy. Considering some difficulties in locating the right stocks that going to give big return, sometimes investors should consider looking for stock market investment advice from the expert.

It’s a smart step to invest in a company which belongs to a familiar industry for the investor. Investor supposed to have a good understanding of the business in order to realize more about the real value of the stocks. This understanding will make investor less dependent to analysts and advisers.

Investor should avoid investment tips that offered by people with vested interests, therefore they must carefully choose the sources of information they can rely upon.

2. Long-term goal

Investors suppose to consider a long-term goal in making stock market investment. This long-term goal would determine the approaches to be taken and influence the decisions investor should make.

The keenness to that long-term goal would ensure regularity in instances of uncertainty when the stock market twirl comes to play. It would avoid capricious decisions unfavorably disturbing the finances. A long-term goal could result to a more stable financial future through steady purchases investments. The investment key word here is consistency.

3. Calculated Risks

There are some risks in any business accomplishments. However, this must be calculated to minimize the probability of loss and to increase the probability of profits. Speculating or gambling is not an option.

It’s very easy to buy stocks but your lost money would be difficult to gain back. Investors are supposed not to afford costly mistakes. They are not expected to take unnecessarily risks.

The established system in realizing the long-term goal must be strictly followed to reduce the probability of putting too much money just to sustain big losses.

4. Discipline

In making stock market investment, investor must have appropriate determination and discipline.

Investing in the stock market, the investor himself must have the appropriate determination and discipline to constantly continue in realizing the long-term goals.

Today’s stock market investment requires enthusiasm and courage to come out as a winning investor. The stock market gives the opportunities; all that is required of the investors are being careful and sensible.

Pros and Cons of a Stock Market

stock market

Pros and cons of the nature of the stock market don’t have to be confusing to us, as many people who are interested in investing in stock market are afraid that they have to understand a complete range of stocks and marketing terms

But some people could saw behind the appearance of all these economic nonsense, and saw the potentials of what they could get from investing in the stock market.

In simple way, the stock market is the market to buy and sell stocks and shares. This is where company stock gets traded. The term is also used to describe the totality of all stocks in one country. That is why we hear reporters talking that "the stock market was up today" or that "the stock market went down after the poundsterlings fell to the dollars."

So what are the pros and cons of the stock market?

We need the stock market because it is an important factor for the country economics system to operate. Through the stock market, companies will improve their financial feasibility and expand their operations by raising funds from selling their stocks. Without the stock market, our companies become slower in their growth and might stagger in the increasing competition in the US as well as against international companies.

Another reason for the existence of the stock market is that it also has a role in personal financial planning, because many individuals buy stock shares as part of their personal financial strategies. More importantly, most people, especially Americans have a stake in the stock market because retirement programs invest in stocks. It has shown that retirement programs earn a lot more by investing in common stocks than other options such as saving the funds in banks.

Of course, the stock market also has its downsides. Remember that the stock market is not a tool for immediate success. True, there are stories of one getting wealthy by investing in the market, but this involves investing shares in various company stocks, which means a lot of research, time, and money. Investor also gets rich when some stocks become "hotter" such as the "dot-com" bubble in the nineties, but when the initial buzz around these stocks stagger, the value of these stocks tend to crash.

Stock Market for Beginners

Stock market for beginners, every beginning is difficult like the saying say, the same as investing in stock market for the new investors.

When you feel you want to play and try your luck in the stock market, and don’t know how and where to begin. What will you do?

The first relevant thing the new investor should do is asking the basic question of what a stock is and its implication.

A stock is a symbol ownership of a company. Some people view stock as certificates. Actually the more stocks people own of a particular company, the more share of the company they own. And the more the company they own, the bigger the influence they have in running the company. This is called equity investment.

The next thing to do is familiarize newcomer investor with financial terms such as ‘price-earnings ratio’, ‘margin’, ‘option’, ‘earnings per share’ and ‘leverage’.

After that, it’s on to knowing where and how to actually buy stocks.

There are two ways to buy stocks:

1. brokerage service
   
2. online exchanges.

Brokerage services are rendered by brokers. These middlemen do all the work for the investors. They do research in the stock market, give advices, also buy and sell stocks according to the wishes of their clients. These brokers earn a commission from the stocks bought or sold.

Exchanges are services that allow investors to access stocks all over the world. Here, investors can buy and sell stocks without the need for a broker. Certain banks allow you to set up your own stock portfolio and buy and sell stocks online using the money you have in these banks.

Once you have chosen how to buy and sell stocks, the next thing to do is to open an account. As stated earlier, exchanges allow you to monitor and control your stock portfolio personally. If you choose to enter the stock trade with a bank, then ask your bank the specifics of setting up your own account.

If you choose to trade stocks via a broker, find a reputable broker and ask them to open and manage an account for you.

After investors have successfully set up an account, it’s time to study the stock market and plan your strategy: will you be conservative in investing your money? Or will you be aggressive? Are you in it for the long term? Or are you a day trader (short term investor)?

After you have identified your plan, it’s time to do some research on the stocks offered in the stock market. Having a broker will significantly make it easier for you as they will do the research and give you advices. But, it is still best to study the stock market yourself.

Remember that the stock market is volatile. Be prepared for a roller-coaster ride.

Stock Market Investments Mechanism

stock market

Each time the stock market investment hits a high or a low, people hear about it. Daily statements are also issue the activities of the stock market and its relevant economic implications. People hear about stock market everyday. But what are stocks? What is a stock market, really ? And why people want to do stock market investments?

The stock market is a market place where trading of company stocks happens. Stock market investments allow companies and private individuals to get a share of ownership in large corporate. It’s also a way to gather large sum of investment capital which is difficult to produce if the business is solely owned. The large capital comes from the stock market investments.

Stocks are shares of a company or business which gets on sale in the stock market. Stock market investment happens when a person or institution buys a share of a company’s stocks that were put on sale in the stock market. And this investment will give the investors an equal share of profits by the end of the year and an equal vote in the company’s business decisions.

In the past, stock market investments were done by individual buyers and sellers, but nowadays the market participants evolved from individual investors to large corporations. This change in the stock market investments activities has also helped to control movements in the market.

To encourage stock market investments, a business that wishes to sell its stock to individuals and corporations should become corporation first.

The individual investors and big corporations who buy the shares of a business or corporation are called shareholders. They own the new incorporated business. Their stock market investments give them the authority to claim ownership of the business, they can now decide whether to privately or publicly hold their corporation.

In privately held company, the shareholders are few and probably know one another. And in the publicly held company, the shares are owned by a large number of people who do stock market investments on the public stock exchange.