Stocks have been on rampage since they hit their lows in 2009. Just in 2013 alone, the stock market gained 30%. And because of the recent gains, more individual investors have been getting into the market. And if you are one of the new investors, you will probably make a few mistakes before finally figuring out how stock investing works. Here are six of the biggest mistakes that new investors make in the stock market. I am guilty of all of these mistakes when I first started investing in stocks.
Jesse Lauriston Livermore, the famed stock market trader, also known as the “Great Bear of Wall Street” made his fortune by shorting stocks during bear markets, primarily during the 1907 and 1929 bear markets. In 1940, he wrote down 21 rules that he lived by during his stock trading career. The rules are as follows:
To significantly gain from investing in stocks, one has to be equipped with different strategies or approaches. The two main schools of thought any amateur investor needs to be familiar with are fundamental analysis and technical analysis. Each approach has its own advantage. But how do these differ from each other? An investor would want to know which can be the faster way to earn from the stock market. What type of analysis should be used if an investor is looking for a long-term investment? Read through this article about these two major approaches that are used in analyzing stocks and other securities to find out the answers to these questions.
The foreign exchange market, most commonly known as the Forex market, is home to the global decentralized trading of international currencies–specifically where trillions of U.S. dollars are traded each day. If you need Japanese yen, you buy it through the Forex market. Participants trade not in one huge platform but rather through electronic communication networks (ECNs) or phone networks in different markets across the globe. Dubbed by investopedia.com as the largest financial market in the world, the forex market works round the clock five days a week: from Sunday (5 p.m. EST) to Friday (4 p.m. EST). It is also the most fluid and most accessible market because of its scope and size. But how does this huge market really work? And why is there a need to trade currencies?
Can you make money in the stock market? Or is it all just one big gambling scheme? The short and unequivocal answer is: yes can make money in the stock market. Otherwise, happenings at the New York Stock Exchange won’t make any difference on day-to-day economic events. You may have already learned from history that stock investment has been the more productive way to park your money compared to, for instance, bond investment. Even with a very volatile stock market or amidst a period of recession, the market continues to lure investors.
Investing in stocks have never been easier. You no longer need to get on the phone with your stock broker. All you need to do now is log online and open an account with a discount online brokerage. So that means gone are the days when you have a personal stock advisor or a stock broker on retainer—you can invest in stocks immediately and cheaply. So if you are looking to start investing your money in stocks, here are the 10 best online stock investing sites for the individual stock investor:
Many people who have not experienced investing in the stock market may find it too complicated, that it is meant only for the smart, white-collared geeks, and corporate moguls. But the stock market works quite simply; it serves as a place where people trade stocks or shares of ownership in a desired company and where they can either win big or lose disastrously. In the US, there are two dominant stock exchanges – the New York Stock Exchange (NYSE) and the NASDAQ. This article briefly notes, in a simplified way, how the stock market operates.
If you want to purchase something now but do not have the cash to spend, what you can do is to borrow it. This borrowing does have a cost though, it is called interest. It is an amount that you have to pay on top of the money you have loaned– the principal amount. The rate of interest is often expressed as an annual percentage of the principal. To illustrate, if you have borrowed $1,000 with an interest rate of 10 percent per year payable after a year, you will pay a total amount of $1100 at the end of the year. Loans can be short term or long term, hence the borrower is said to pay either short term interest rates or long term interest rates.
The buy-and-hold strategy of stock investing has long been the mantra of sustainable portfolio growth. The basis of the strategy is to buy a good company and hold onto it for years until it turns a profit—because it is a good company and the average stock return historically has been 8-10%. The best investors have long advocated this strategy, from famed value investor Benjamin Graham, to billionaire Warren Buffett, and to pretty much any traditional stock investing book you pick up.
Like any form of money or asset, the bitcoin has its own share of booms and busts. This article walks you through into the timeline of the most prominent and popular virtual currency ever made – the bitcoin.