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Trend Trading Part 1 – Consolidations, Pause Or Breakdown of Trend?

Trend trading is immensely popular and a good trend trading system with a proper trading plan can be very profitable. One of the questions I get asked a lot is something along the lines of “How do you know if you’re in a sideways pattern, if it’s a pause or a breakdown in the trend?” It is a very good question and we’re going to go over that very quickly here.

Options 101 – What Are Stock Options?

What are stock options? Stock options are merely contracts to purchase or sell 100 shares of stock in the future. Since stock options aren’t actually units of ownership, like shares of stock, and their value relies on the price and trend of stocks, stock options are additionally referred to as “derivatives”.

How to Calculate Earnings Per Share

Earnings per share is the allocation of a company’s net income to each outstanding common share of stock. Earnings per share is used by Wall Street & other stock market analysts to measure the profitability of a company versus another company in the same industry, plus is a way of evaluating quarterly financial results of the company.

How to Interpret the Price/Earnings Ratio

Price to Earnings ratio is a valuation model used to determine how expensive or cheap a stock is trading for. The P/E ratio is a model for valuing a company’s performance because it compares current stock price divided by the company’s earnings per share.

Stock Basics: Part I

The thought of investing in stocks can make people’s eyes glaze over. Given the power of investing, and how you can make your money grow though investing in stocks, it’s puzzling why people wouldn’t want to know more about how to “do that.” Again, the problem lies in lack of financial education.

Share Investment: A Wealth of Information From Wealthy Investors

The 2009 World Wealth Report from Capgemini and Merrill Lynch, a survey of high net wealth investors around the world that have US$1 million of net financial wealth excluding their primary residence, outlines where these people invest their money. On average, the 10 million people globally that fit this definition of having ‘high net wealth’, have 29% of their capital invested in shares, 31% in bonds, 17% in cash, 18% in real estate and 6% in alternatives like hedge funds, commodities and private equity.

Investing in Shares: What Works and What Doesn’t

There is no ‘right’ way to invest in shares, but there are some methods and strategies that tend to work better than others. Investing is like town planning, in that it has to look forward. Try as we may with tea leaves, weather maps and computers, humans struggle with guessing what the future holds. In the field of investing the best we can do is look backwards and see what has worked in the past and hope a similar pattern occurs in the future.

Learn How to Pick The Best Penny Stocks

If you want to kick start your investment portfolio and are looking to invest in Penny Stocks then check this guide on how to find the best penny stocks to buy. Finding profitable penny stocks can be a challenge but not impossible! Once you’ve made the decision to investigate penny stocks start off by learning about value investing.

Spread Trading Leverage and Margins

Spread betting offers an investor the opportunity to trade on market movements in many sectors such as indices, commodities, interest rates, bonds, currencies and individual shares or stocks. When selecting a bookmaker it is important that you check the range of markets covered. Not all spread betting brokers will offer all markets.

Learn to Trade Stocks in Four Easy Ways

Stock trading refers to the buying and selling of shares and stocks within the stock market. It is essentially a numbers game, because each decision involved is based on a great deal of calculation and analysis. Although some may say that others have the knack for trading, one’s success mainly depends on one’s knowledge, skills, and expertise. If you want to learn to trade stocks, there are now so many options available to help you gain mastery of this numbers game. Fortunately, current technological developments have made it possible even for laymen to become expert traders.