Best Stocks to Trade For Tomorrow with logic 05-Aug | Episode 569

Open your Trading account in mintues with Zerodha

The reason why you want to invest in stock is because you would like to earn more income than if you keep your money in any fixed income instruments. You would like to earn more than what your bank will give or the secure government bond will fetch you. After hearing more and more about inflation, you wish some avenues of investment which will be safe and yet protected from further shrinkage in the buying power of the currency.

Once you know how to pick the right stocks it can be easy to make money. Stock picking software can give you a massive head start on the stock selection process.

Stock trading is one of the last true meritocracies. All that matters for your success is your own decisions. It is inherently risky and you agree to assume complete and full responsibility for the outcomes of all trading decisions that you make, including but not limited to loss of capital.

Trading stocks is like trading any other goods, whereby it involves a buyer and a seller. A transaction occurs if the two parties agree on the price. The price at which the buyer wants to buy is called bid price, and the price at which the seller wants to sell is called ask price/ offer price.

Stock Trading is trading stocks and shares of different types of companies and organization at the stock exchange. In every country, there is a stock exchange where various companies get their shares listed, when they arrange for required funds by means of shares . Stock trading is a game in which you cannot afford to be average. Thousands of novice and “green” traders are being charged hundreds, even thousands of dollars by fraud artists and self proclaimed professionals for doubtful stock picking services and automatic buy and sell signal tools. Stock trading is something that interests many people because it offers them a chance to make lots of money. In addition, it has a lot of excitement attached to it especially when using short term strategies that help pit traders against the stock market.

This week featuring in Business week: “Warren Buffett visited Frankfurt, Lausanne, Madrid and Milan to assess the investment possibilities of Europe’s big family-owned businesses. He said he was not perturbed by the strong euro. Mr Buffett’s Berkshire Hathaway has so far made very limited investments outside the United States.”

I often wonder why it is people buy stocks at the point where everyone is hyping them up and explaining how they are ‘a sure thing’ then subsequently start to become nervous as the share price eventually falls during a market down period. In a really bad downturn such as the credit crisis some stock prices fell dramatically they can drop substantially and when they finally hit rock bottom the investor will then sell out.

Timing into the market can be one of the harder stock making decisions an investor can have. It is important to remember that when we are selecting stocks we should be picking for the long term mainly selecting companies that will continue to pay an ongoing dividend yield.

When it comes to trading on the stock market, there are two choices to make, either randomly choosing and hoping for luck or using strategies to determine what stocks to buy, when to sell and how to protect your investment dollars. There are a couple of methods that have worked well for many years. Beginners should first investigate these basic strategies to see how they perform, and then the investor may explore new methods.

For those that wish to enter the stock market, it’s not that difficult. If you are intimidated by unfamiliar stock symbols, stock prices, and investing procedure, here are 10 rules you can follow for investing in the stock market.