Avoid These Common Investing Mistakes
Not doing personal market research before investing can prove to be a big blow to your investment. Going by the words of your trusted sources, such as, friends, experts, brokers might pay at times but ultimately it’s your money that you are risking in the stock market and thus your personal touch to the investment portfolio might make a big difference to the profits incurred at the end of the day.
2 Rules of Preserving Capital in Stock TradingSuppose you have a clear understanding of the current stock market such as the direction of the long term trend, the current level of risk, the strongest and the weakest sectors and the clues that the charts are giving you but you may still be wrong about the future. Always remember you cannot predict the future 100% correctly, 100% of the time. So what you can do? You can structure your portfolio in such a way to add two more levels of safety. What are these two capital preservation rules?
Focusing on Sector Analysis in Stock Trading – There is Always a Place to ProfitWhen you are trading stocks, sector analysis is probably the most important consideration that you need to focus on. For example between the period April 2005 to April 2008, S&P 500 Index moved up 18% while in the same timeframe the energy sector moved up by 75%. You should understand the 4 stages of sector analysis that can help you understand what sectors are the best to invest. There are 3 main benefit of focusing on the sector strength!
An Investor’s Guide to the Cash Flow StatementThe cash flow statement is one of the three major financial documents that every public company is required to publish. If properly understood, it can help you to better understand a company’s financial position and therefore become a better investor.
A Tale of Two Stock Markets – How to Read the Internal Strength of the Stock Market With S&P 500One is the external stock market that most investors see day in and day out. This includes the S&P 500, Dow Jones Industrial Average and other stock indexes that you see daily in financial news and CNBC. This external stock market is what most people tell what has already happened. This external stock market is the very same market responsible for most investors losing their money on the vast majority of the trades. But right beneath the surface of the external stock market is the internal stock market.
Understanding Current Stock PricesHave you ever thought about investing in the stock market? Does the whole complexity make you a little nervous. You are certainly not alone.
How to Become a Stock Market GeniusStock market trading is very popular among investors. However, ups and downs in the market make several investors reluctant to enter the stock market trading. Everyone knows about the potential of stock markets that has the caliber to make anybody millionaire overnight. The game of market pays you extremely well and requires very less time input from you. Even if you are new to the markets, you could become a stock market genius by following some easy tips.
Amazing Reliability of Candlestick PatternsJust because a particular pattern signaling a reversal of trend emerges, this doesn’t mean that the predicted move is “real”. While some Japanese candlestick patterns are more reliable than others, no model is completely foolproof. That’s why it is important for you to look for confirmation with other technical analysis tools.
The Power of Understanding Candlestick Reversal PatternsCandlestick reversal patterns are one of the most powerful tools to identify the start of a new trend. Becoming proficient in recognizing these power patterns is crucial to a lucrative trading endeavor.
What Are Candlestick Chart Patterns?Candlestick chart patterns offer independent investors and financial institutions a way to look at price fluctuations from a unique perspective. These charts are most commonly used for day trading stocks, commodities, and currency (forex).