All posts by Gurtrude Stonke

Stock Trading

Tips And Tricks To Find The Next Great Stock

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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.

Prior to me getting into the tips I would like to first ensure that you know what the next greatest short term stock is going to be. In my opinion the next best short term stock will have a very short window where the price increases an incredible amount. Something that I would strongly caution you on is trading penny stocks that look like they are a fly by night company and the reason is because these are the companies that scammers target to try to get you to lose your money while they make even more.

Tips On Locating The Next Greatest 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. What you need to understand is the lower the price to book ratio is the better the share will do in the short term trading market of $10 and under stocks. If the price is over then you will want a higher number, my advice is to get something with a number lower than 1 for stocks under $10.

Look At 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. My advice would be to look and see how the company has been doing and if they have a negative return then you might want to consider looking elsewhere. 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. Always check the market to see what it is doing because the share prices will go up and down on a day to day basis.

When it comes to stock trading one of the things you need to understand is the more you know the more money you will make. Most people don’t understand all the signs of a successful stock trading but that is ok as long as you know the basis of trading stocks.

Stock Trading

Tips To Be A Successful Stock Trader

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If you have done stock trading before then you know it can be difficult but just know that it is not as hard as you are making it out to be. Something you need to understand is that trading stocks is more about reading the charts than it is about the actual trading that goes on during the day. The reason I say this is because if you can read what some of the stock trading charts are saying and if you can evaluate a company then you will be able to make money time and time again in the stock market.

What a lot of people don’t know is that trading stocks should not be done on a daily basis and the reason is because day trading is very risky and if you do not know what you are doing you may end up losing all of your investment. Where most people go wrong with stock trading is they think that if they can find a day trend forming then they can make money but the problem is not all day trends go on overnight and some of them will go back to normal before the close of the market. Just do yourself a favor and stick to weekly trading as opposed to day trading, the longer the timeframe the easier it is to make a decent amount of money.

Advice on trading stocks successfully

Purchase lower priced stocks – What you need to understand is the lower the stock price is the more you can buy and the nice thing about this is the more shares you have the less the price has to increase for you to make money. The issue that you will face with buying shares that are higher than $30 is that you will need to buy a bunch of shares in order to make a decent amount of money from a average size gain.

Understand stock charts – As a trader the main thing you need to know is how to read and understand stock charts. The reason why you should understand how to read a stock chart is because making money is all about learning where the company is headed and how you can capitalize on it.

If you want to be a successful trader then you must know what you are doing and that means you need to know what is going on with the market every single day. The worst thing that could ever happen as an investor is that you don’t know much about the stock and because of that you are trading on pure speculation.

When it comes to stock trading one of the things you need to understand is the more you know the more money you will make. Most people don’t understand all the signs of a successful stock trading but that is ok as long as you know the basis of trading stocks.

Stock Trading

How Penny Stocks Make So Much Money

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I am pretty sure that you know what penny stocks are but just in case they are simply companies who’s shares are trading below $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.

The first thing you need to understand about penny stocks is there is no such thing as a sure thing and because of that some of them might be 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. Just know that every stock has the ability to go down and that is why you need to make sure your risk is not greater than your 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.

What you must do in order to earn a decent return on these trades is to figure out which direction the company is moving in and whether or not the shares are undervalued, the trick here is to learn to read stock charts easily and efficiently. 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 want to learn to trade stocks then click here. Just know that trading in the stock market does take some practice but once you are good at it you will be able to invest in stocks without any problems.

Stock Trading

Two Stock Investing Strategies That Investors Need To Be Aware Of

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Now that stocks are starting to make people money again I want to make sure you are aware of the 2 best stock investing strategies. What most people don’t realize is that stock trading is not what it used to be and because of that you need to always be on your toes and watch what you are doing at all times.

The primary goal of stock trading is to take a position at the right time, that doesn’t mean you need to resort to day trading but you do need to make sure you are aware of the positions that are out there on a day to day basis. What you need to make sure of is that you don’t think of your stocks as money earned until you actually sell them, this is where most people make their biggest mistakes when it comes to general investing. Remember this because this is where most people mess up and later really hate themselves.

2 Stock Investing Strategies You Have To Know

Don’t Time The Market

Have you ever heard of an individual say they time they market and that is how they make money? This is not true, nobody can accurately time the market day after day and the reason is because the market is not always the same. What most people think is if a stock went up one day and the next day it is doing the same thing then it will do it again. When it comes to stocks they all will ride a trend once in a while and in order to trade using the trends you have to be very good at reading stock charts and knowing when to make your move.

Utilize Cost Averaging

People use cost averaging quite a bit and all this means is that instead of buying all your shares at one time you average yourself into position. All this means is that you buy and sell stocks over a period of time as opposed to all at once. For example, if you are going to sell 100 shares of ABC stock then you should sell 25 one week, 25 the next week, 25 the next week and then 25 the final week. This is how you average the cost. All you are doing here is making it where you don’t buy at the highest point and you don’t sell at the lowest point, you average your transaction in.

The last thing you need to know about stock investment strategies in general is there are tons of them and it is up to you to make them work the way you want them to. What most people don’t understand is that investing is all about strategies and how good you follow yours.

If you want to learn to trade stocks then click here. Just know that trading in the stock market does take some practice but once you are good at it you will be able to invest in stocks without any problems.

Stock Trading

Advice On Reading Stock Charts

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Why do you trade stocks? Do you trade them because you wish to earn cash and eventually retire? The purpose for trading stocks isn’t crucial, the critical thing is you know how to trade them and get a good sized return.

In regards to viewing stocks charts there are some things that you have to learn and understand. Being an active trader is very important because not everyone will be active and not being active means that you are not following along with the stock market.Believe me, in order to earn some cash with stocks you need to follow them daily in the market.

Advice to understanding stock charts

Understand any trends – The first thing you should do in order to make money with stock charts are to understand the trends that are forming. A lot of individuals do not even try to search for trends and the simple reason is because they just can’t understand them. If you want to earn cash in the stock market then you need to understand how they operate.

Learn candlesticks – Something a lot of traders learn really fast is how easy it is to earn cash in the stock market once you figure out how to read a candlestick chart. If you haven’t figured out candlesticks yet then you must hurry and learn them, you are missing out on some huge money while you’re waiting. The most important part of reading candlesticks is understanding open and closed candlesticks and knowing the difference among long-tail and short-tail candlesticks.

Check your work – One tip that you should understand is that you always have to double check your chart readings. The purpose for double chekcing your chart readings is because charts will change frequently and you do not want to pursue a trade on a decision you made hours before.

Always use a chart – The last tip to viewing a stock chart is to never move forward without confirming your analysis with a stock chart. The reason you must never want to make a trade without a chart is because not confirming it one way or another is a sure sign that you’re doing a bad trade. Just remember that stock trading trading begins and finishes with stock charts.

When it comes to stock trading one of the things you need to understand is the more you know the more money you will make. Most people don’t understand all the signs of a successful stock trading but that is ok as long as you know the basis of trading stocks.