Investing Tricks That All Stock Traders Should Know

Every stock investor wants the same things, to make a decent profit on their investments and that is what I want to help you with today. What most traders deal with is they don’t have a foundation to begin on and that is the same issue that I had a while back when I first started.

Stock Investment Advice That Every Trader Needs To Know

Past trends normally continue

The first tip that you need to know is that many past trends will continue if you let them. The great thing about trends is that you can see them from a mile away and you only need a limited amount of capital in order to trade on those stocks.

Take your earnings and run

Something that every investor needs to learn is that you have to take your earnings and scram every once in a while. If you are like a lot of other investors then you will get greedy and hold your position too long which will ultimately result in the stock price dropping and you losing the money that you could have earned. Just remember that greed is one of the emotions you need to check at the door before you make any trade.

Follow Your Gut

Have you heard the expression, follow your gut? This is especially true in regards to stock trading and the reason is because your gut will tell you when you need to get out, which trades might be profitable, and what you should look out for. My suggestion is to equip yourself with the right tools to go along with your gut because when it comes to stocks you have to know more about the company than others do.

Buy on value

When it comes to buying stocks you need to make sure that you are buying things of value. What most traders do is they buy based on current price but the problem with this is if for some reason the trade you just made goes south you will want to know that the company is still valued and it won’t go under. Something that I would highly recommend is that you learn how to tell the intrinsic value of a company so that you don’t get stuck with a fly by night stock.

If you are going to be successful at stock investing than you need to understand just how much value different companies have. If you want to be the best you can be then you need to find some stock trading training course to help you make the best trades possible.

Advice On Locating The Next Best Stock

Are you tired of not making money in the stock market? Do you want to do something that is going to change the way you look at stocks and your portfolio in general? The first thing you need to realize regarding stock trading is that you have to know more about the company and the way they are headed than the next guy, this is how you will have your leg up on the competition. Something that you must consider with every stock is whether you are going to take a long position on it or a short position.

Before I get into the tips I first want to make sure you know what the next best short term stock is. In my opinion the next best short term stock will have a very short window where the price increases an incredible amount. What you must watch out for are penny stocks that are hit and miss because often times these will get boosted by fraudulent traders and beginning traders. Remember if you want to trade stocks effectively you need to get some decent stock trading training.

Advice On Locating The Next Best Short Term Stock

Low Price To Book Ratio – If you want the next best stock then you need to get one with a low price to book ratio. You don’t need to know a lot about price to book, just know that the lower it is the better the stock is as long as the price per share is under $10. Just watch out for stocks that have a high price to book ratio because they can lose all your money very quickly, my suggestion is to only trade stocks that have a ratio lower than 1.

Check 5 Year EPS Growth – If you don’t know what EPS is it is simply “Earnings per share” and the reason why you need to look at this is because it will give you an idea how much the shares will increase year after year. If you are looking at a stock that has a negative 5 year EPS then I would recommend looking somewhere else until they can prove their worth to you. Just remember, most shares will not increase 100% like you will want them to, you will most likely find shares that have increase 10% over the 5 years and that is a good sign of slow and steady growth.

The final thing you need to know is that there are many great stocks out there, you just have to find them. Stock prices go up and down on a daily basis so the stock that is the best one today might not be the best one next week.

Why Everybody Should Trade Penny Stocks

By now I am sure that you know what penny stocks are, they are simply stocks that are trading under $5. If you are thinking that $5 is more than just a couple pennies then you are right but in relationship to the market these stocks are trading pennies compared to some of the bigger companies. What most people don’t understand about penny stocks is if they are too good to be true or not.

What you must remember is there is no such thing as a sure thing and with that you need to understand that some penny stocks will seem too good to be true. With that said you need to approach a penny stock the same way you would with any other one, you need to do your research and decide if the shares you are thinking about buying have a potential upside. What you must keep in mind is that every stock can drop in value and that is why you need to do all you can to ensure that your risk is not greater than the possible reward.

Just to answer your question, “Penny stocks are not too good to be true, they are the real deal and people are making money with them on a daily basis”. What a lot of people like abut penny stocks is they are very cheap to buy which means that the share price doesn’t have to increase that much in order to make a decent return on the trade.

My advice when it comes to making decent trades with $5 and under shares is that you need to figure out how to read the charts and look at the fundamentals in order to tell whether the company is an undervalued stock or not. My suggestion would be to only trade stocks are not trading at their current value since these will go up much higher in a very short time. What most people don’t realize is that trading shares under $10 means that you will look at the company in a whole different light and that will require you to change the way you read stock charts.

The last thing you must understand about penny stocks is they have a lot of benefits to them but the problem with them is a small dip in the share price will result in a good sized loss. Don’t think that these shares are immune to the actual markets movements because they are not, they follow along just like every other stock on the market. If you are ready to start making money then start today with some decent stock trading training.

Will Buying Cheap Stocks Make More Money

Everybody knows that when it comes to buying stocks it is much easier to buy stocks that have a lower value since you will be able to buy more of them. What most people like about cheaper stocks is the price does not need to go up that much in order for them to make money and that means that they can leverage the money much further. Just know that stocks are not what they used to be, in today’s economy it is the movers that make the most money.

What most people don’t realize is that you can profit from both increased share prices and the dividend that many companies pay out to their investors every year. What you will love about getting a dividend each year on top of the increase in share price is that your stocks will not have to rise as much in order for you to make a decent return on your investment.

Advice On Locating Great Cheap Stocks

Concentrate on the charts – The primary thing that you need to watch is the charts of the company that you want to buy into just to ensure that the price does not drop once you buy it. What you should look for are signs that the high price is pressing over and over again because after just a few times the share price will most likely drop significantly.

Wait for the share prices to fall – Where most people make the biggest mistake is they don’t all know how to buy stocks that have had a recent drop in price. The problem that most people face is they don’t want to be late on the buy-in so they jump at the chance to buy too early, wait for the share price to stabilize at the low and the buy when you see signs of an increase. What you must understand is that if you are not keeping an eye on the stock then you will miss the chance of buying it when the price is at the lowest point.

Something that you must understand regarding some cheap stocks is that they are not always the best ones to buy, sometimes you have to spend a little more money to really earn a decent income. Sometimes companies share prices will drop because of the company doing poorly and if this is the case you should stay away from them no matter what. The bad thing about most of these companies is their share prices will most likely drop even more after you buy them. Just know that in order to make money in the stock market you need to be active in the market and watch what is going on. If you are ready to start making money then you first need to see about getting some basic stock trading training.