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Investing in the stock market can be one of the best ways to earn return on your hard earned money. The decision to invest in the stock market may be a difficult one for you to make as there is so much risk involved.

There is the risk that the market will disintegrate. If this happened, it is likely that you would end up losing money.

There is the risk that you choose the wrong market to invest in. If this happened, your particular stock would cause you to lose money.

There is also the risk that you will be taken advantage of by a fraudster parading as a stock market expert. This can also cause you to lose a lot of money.

However, there are many things you can do to lower the risk you are taking when you invest in the stock market. These things may lower the risk enough that the investing will be worth it to you.

The first thing you should definitely do is some research on various companies that you are thinking about giving your money to in order to have them invest it for you. These companies generally will have more experience than you will in investing in the stock market and they can help you make wiser decisions that will result in more returns on your money.

However, the trick is in deciding that you can trust them as there are some companies that are pure scams. Most of the companies who can legally help you and who are trust worthy will be registered properly.

Go online and look up their history, policy, customer service promise, and whether or not they are properly registered. If you feel uncomfortable about anything you see or read, find another company to work with.

When you find a company you feel you can trust from everything you have discovered online, stop by to visit with the head manager or call and talk with him or her. However, before you call, make sure that you are prepared to say no if something comes up that you are uncomfortable with.

In addition, be prepared to deal with a sales man and his high-pressure tactics. If the company you call tries to force you into an immediate decision to invest with them, run away.

A salesman with ethics will understand that you need time to make a decision. Companies who try to force immediate decisions are trying to take advantage of you and they will not serve you, they will try to take your money.

If you do not have very much financial experience, it is particularly important to be cautious. Companies who work with finances everyday will be able to recognize potential customers who do not have any experience whatsoever.

As you do not have very much experience, you may feel talking to them is intimidating and overwhelming. However, ask questions and pursue understanding until you actually know what is going on with your money.

It can be very tempting to simply let the people you perceive to be financial professionals take care of it for you. This way you will protect your money and you will be more informed about what is going on with it.

Sometimes it can also be tempting to automatically trust someone with good manners. However, good manners do not mean that a person is honest.

Try to keep these two qualities completely separated in your mind. The best fraudsters are very polite and seem to be considerate.

Another thing you should watch out for is if the salesman is trying to scare you into investing. Fear is one of the most motivating factors when it comes to making a decision.

A very common thread of reasoning that they throw at you is that investing is a way to have a secure financial future. You already know this is not true, but if you begin to feel scared or greedy in relation to your investment, you may not make the best decision.

Another age group that should also be particularly cautious is the older generations. In particular, elderly women are the main target of fraudsters.

The best way to protect yourself is to talk to someone who is completely neutral to both your side and the company's side of the story. They will be able to take a step back with no emotions clouding their judgment and give you an honest idea of whether investing in this particular company is a good idea or not. [...] Read more!

A penny stock is a common stock trading at $1.00 or less. Penny stocks are sold at such low prices that they entice many investors, particularly first-time investors. These low prices allow novices to explore the markets, without risking an extensive amount of money. Furthermore, if the stock were to dip in price, the investor will not have lost excessive amounts of money.

Here are some ways to start investing in penny stocks:

1. Scroll through stocks

Scroll with the day's "most active" and also the day's "biggest gainers" on the NASDAQ and DOW. Links are provided within the Resource Portion of this article. Discover the stocks which are currently trading around the one dollar range $1.00.

2. Research companies

Investigate the companies with penny stock investing offerings that you like. This can be done by hitting the stock symbol and viewing charts or going directly towards the company website.

3. Start investing

Start an account by having an online brokerage firm; these are usually less expensive for trades than a local broker. You can also choose only to purchase stocks from companies with direct purchase options. This option can help you avoid brokerage fees. Navigate to the website and print a regular purchase form or request one to be mailed. Read the requirements such as minimum purchases, fill it out, attach a check, and mail it. Never invest a lot more than you can afford to get rid of think of this like a state lottery where 1 in a million win.

4. Disseminate your investments

Purchase small cap stocks from the 3 companies. You never know if these businesses will succeed or fail, so do not invest your eggs into one basket, diversify. Enjoy investing in penny stocks, sort of like playing "Life" or "Monopoly." [...] Read more!

This is a general article about the NYSE and NASDAQ that should answer several questions about investing in the stock market. What kind of “traps” might come in the way of investors when they begin to trade in the U.S. stock market? Which opportunities should you should seize and which should you ignore?

New York Stock Exchange (NYSE) - the largest stock market in the world. Most companies listed on NYSE belong to the US economy, but companies from other countries are listed here as well. The exchange quotes 3,500 tickers, half of them are most of the time liquid.

NASDAQ (National Association of Securities Dealers Automated Quotation) is an electronic stock exchange. In the very beginning, it was the stock exchange for technology companies stocks only, but now a lot of companies from various sectors are listed on NASDAQ.

On both exchanges ECN (Electronic Communication Network) system plays an important role. This electronic system executes orders automatically. Thanks to ECNs all buy/sell orders are executed according to the FIFO principle (First In, First Out).

The NYSE and NASDAQ maintain programs of funds insurance and control over all traders and financial institutions. SEC (Securities and Exchange Commission) observes every transaction and stops abuses and manipulations immediately.

One of the disadvantages of the NYSE and NASDAQ is the information overflow. There are hundreds of websites providing market analysis, various strategies and blogs, as well as daily reports, free research and surveys from the leading investment companies and analyst firms.

Moments on U.S. stock exchanges that are dangerous for novices: better stay square.

A company’s earnings is a number that comes from the company’s quarterly earnings report. It seems that buying stocks before a company’s forecasted good Earnings and adding to this position after the confirmation of this data is a good idea, but at the same time, you should keep in mind that the most terrible statements of the company may also provoke incredible growth and vice versa.

Upgrades / Downgrades. Forecasts of the biggest investment companies about the particular stocks value in the future. Prices can sometimes gap and reach the amount of several dollars, and dates of these announces are not set clearly. Even if you have a paid subscription to Goldman Sachs advices, positions opened during such an event can bring heavy losses.

Dividends. First, it is not easy to catch the dates when companies pay dividends. Even if you catch the moment, sell a few stocks, and earn on a price down-move (after the dividends are paid, stocks become cheaper for the amount of the sum paid as a dividend), at the end of the month your broker will charge this sum from your account to pay the shareholders their dividends. And nobody can say for sure if the price will continue to move lower. Good dividends might attract the attention of other investors which may lead to a significant stock price growth.

Economic Calendar. Simple logic: lower oil prices will make the stocks of oil companies grow and, and the stocks of airlines fall. But there is no direct correlation between such things as potential earnings and a stock price. Sometimes the market can grow at falling home sales and rising unemployment.

IPO (Initial Public Offering). Initial public offering of securities: offering of the stocks of the company that haven’t been listed on the stock exchange before. First, don’t try to “short” stocks on IPO, stock prices can move up very quickly. You should know the company’s owners personally and have full information about the company’s products and perspectives, otherwise do not try to participate on IPO.

Here are a few common issues that you should know before making your first steps on the stock market. [...] Read more!

Studying the stock market can be very frustrating. There are just so many different factors that can contribute to fluctuations in the market.

There are people that make careers out of predicting where the stock market will be in the next day, month or even year. If you can get good at predicting about where the stock market will go you can make a lot of money by investing in the stock market.

Learning to understand the trends of the stock market takes time and expertise. There are some basic concepts about the stock market that will help you as you try to predict what is happening with the stock market.

Learning to identify and interpret the signs that the stock market gives is crucial. You must pay attention to the stock market and invest time in learning about the stock market.

We will talk about bull markets and bear markets. These are terms that have been coined to describe upward and downward trends in the stock market.

If there is increased investor confidence and increased investing in anticipation of future price increase then you have a bull market. A bullish trend will usually start before the economy begins to show the same upward trend.

The opposite is true of a bear market. When there is widespread investor fear or pessimism and the market shows a general decline over a period of time we would classify it as a bear market.

When the investors transition from having an attitude of optimism to pessimism we are usually going to be faced with a bear market. Later when we use these terms you will understand what we are saying.

The majority of stocks move with the trends of the markets. When we are in a bull market or when we are in a bear market we will see that most trends will follow the upward or downward trend.

This proves the point that it is important for us to always know what trends are currently affecting our stock market and what trends will be happening.

Price and volume are the two key points to look at when you are trying to determine where the market is headed. When you put these two key pieces of information together you will get a picture that tells you whether there are more sellers in the market or more buyers in the market.

The volume will tell you whether there is movement in the market and the price will tell you what direction. If you find a trend, you will need to capitalize on the trend.

The three big indicators for this formula are the Dow, the S&P 500 and the Nasdaq. These markets will be your source for price.

They will help you decide whether the market is going to continue its current trend or it if is trying to reverse course. We chose these markets because they are the leading markets in our economy.

The indicator for the volume comes from the daily sales volume. IF the market has a high-volume day and prices are up, you will be looking at mutual funds and institutional investors buying , which is a sign of an up market trend.

But if you see that one day there is a high-volume with lower prices that could mean that there is a downward trend. Usually big players will be backing out of the market at this point.

Remember to use your common sense as you are watching the trends in the market. If you have three or four days of high volume rising prices, it is not unusual to hit a high-volume day where the prices fall off.

If you begin to see the up days too much in a market that has been moving down, you may be noticing a sign that the market is about to reverse course or stall. The same is true of noticing down days in an up market.

A market that is showing sharp price movements in either direction without corresponding volume increases is sending false messages that should be watched carefully. You need to be wary of these changes.

Understanding that you should not try to swim upstream is crucial. The obvious forces of supply and demand will drive the market.

When there are more buyers than there are sellers the market will go up. When there are more sellers than there are buyers the market will go down.

It is when you find a prevailing trend of a different price and volume than the rest of the market that you may know to expect change. [...] Read more!

Share dealing is one from the most flexible markets to generate substantial profits and build a diversified financial portfolio. There are numerous investing tools and principles that the stock market trading investor must fully understand and take into account to achieve success. When a company wishes to boost capital to allow for growth they'll sell shares; the shareholder actually will become part 'owner' from the company.

A sensible investor will first investigate the stock they would like to buy; examining market trends, watching the movements of the particular stocks and evaluating the high price and the bottom prices of the particular company. Stock market trading could be tricky to any investor; the market is full of volatility as the price of shares would depend on supply and demand.

The share dealing investor will develop some criteria which will help these phones choose which stocks and shares will meet their financial expectations. They're going to have analyzed facts for example the other investors will pay for that stock, what are the percentage of growth they're expecting, and also the time period they be prepared to see it. They have fully monitored historical graphs, trends and prospects. As a result market analysis you can select stocks that have withstood some time and different financial situations, in addition to come with an exceptional balance sheet.

The supply to obtain more information is becoming highly accessible because of the introduction of online stock market trading news an internet-based brokerage firms at one's fingertips twenty-four hours each day seven days a week.

Over the last decade more investors do online share trading, as it they can make faster trades and may control their portfolios better. They still will require a dependable stock broker and brokerage firm; one in which could handle transactions quickly, as well as a broker they will fully trust with a highly regarded reputation.

The successful trader has also learned they shouldn't pay attention to rumors or hot tips but should use true facts and historical data when share dealing. Additionally, they understand that you should first preserve their capital after which make profit; meaning they know when you should sell so when they ought to buy and they do not over-trade nor will they invest their capital into 1 market.

In closing, the important thing to successful share dealing is to understand the marketplace as well as the companies you intend to purchase your stocks in. Knowledge is a powerful tool and one that will help you in your endeavors for high returns. [...] Read more!

Most people know that one of the best ways to make real money is to invest in the stock market, trading and selling stocks with great rates to make money. Some people are able to do this; they are able to easily purchase stocks at low rates and sell them at a higher rate.

People that are able to do this make money that will provide them with the means to really enjoy their lives. If you are interested in making money, you may want to consider buying, selling, and trading stocks. If you know how to choose the right ones, stock trading is an excellent way to make money.

However, choosing the right stocks to trade is one of the biggest issues to contend with. All kinds of people have owned stocks for years and have never made much money from them. This is because they remain in the same place. Others select the wrong stocks and wind up with stocks that aren't worth anything or their profit margins drop.

Stock trading can be very difficult to get the hang of, and it can be time consuming. Therefore, something that you need to think carefully about is how you can play the stock market without needing to worry about which stocks to buy and which to sell. A trading robot is something that can be very helpful. One thing that can really help is a trading robot.

If you purchase a trading robot, you will have some options. A stock trading robot will help you be sure you're making the right moves. When you precisely follow the directions given by the stock trading robot, you have the potential to make enormous profits within a few days. You can continuously make money in the stock market as long as you follow the instructions and suggestions given by the trading robot.

You will definitely want to investigate a trading robot if you are going to play the stock market at all, but you'll have to understand how it works. It's a program that's been created and loaded with mathematical information regarding stocks. A good stock trading robot is able to recognize trades that are worth less as well as those that are worth more.

A trading program can access the current price of stocks which means it will have information about stocks that should be kept, those that should be sold, and the ones that will make money quickly.

When using a trading robot, there will be a program on your computer that's actually the robot. The program will store your information in addition to information about stocks you currently own. Every day the robot will make suggestions about the stocks you should buy as well as how many you should purchase. The trading robot also makes recommendations when stocks should be sold.

When you use a trading robot it will be just like somebody that knows all there is to know about the market is guiding you. It has all the brains and intelligence of someone that's played the market for many years, but is will to tell you exactly what to do.

As long as you can follow the directions the stock trading robot gives you and you heed these directions, there's a very good chance of your drawing the right conclusions about what should be done when playing the stock market. [...] Read more!

Trading robots are computer programs that are said to help investors get an idea what stocks will most likely make them profit. These robots are under a lot of scrutiny from potential investors and critic alike and of the biggest questions are as to whether it works or not.

Before one can understand what a trading robot is, it is first important to gain an idea of what trading is and how can investors make money of it.

Trading is the practice of buying and selling stocks with the goal of making a profit out of the difference between purchase and selling price. This type of financial trading used to be exclusively handled by banks and other financial firms who employed all sorts of trading strategies. With the advent of online trading, however, more and more people are able to participate in it.

What is a stock trading program?

A stock trading program is computer software that has been programmed to study stock market trends. It predicts and sends out tips to its users on what stocks are more likely to rise and on which stocks the investor can make the most money from.

The story behind the origin of the stock trading program varies from promoter to promoter. Some claim that an ex-stock trader is behind its creation, while others claim that software geniuses were the ones behind its invention. Nonetheless, these robots all have one goal and that is to help investors make money.

When an investor purchases the rights to use a stock trading program, they are either emailed stock tips or are given access to a website where they can get tips and information on trends. The investor then decides whether he/she wants to invest on a stock touted by the this robot. The buying and selling of stocks may also be done via the stock trading program. The result of the investment will also be delivered to the investor via the stock trading program.

Does it Really Work?

A stock trading program does work, but with a catch. Investors do see increases in their stocks, but some are concerned with the mechanisms of how the rise in stocks occurs.

The thing is, stock trading programs employ a trading strategy of investing in 'penny stocks'. These are common stocks that are traded over the counter and sell for less than 20 cents a share. These stocks are known for being volatile and investing in them is considered a high risk trading strategy. Their small size means that even a small amount of buyers will reflect as a significant raise in their stock rating. Inversely, penny stocks also fall rapidly when investors sell.

Another issue with a stock trading program is whether or not the software program really predicts stock increases. Some experts argue that the increases seen with a trading robot is just the effect of an increase in investment as a result of the tips sent out. [...] Read more!

There are many reasons why people decide to trade in the stock exchange. One of the biggest reasons is to get the income they earn and save to work better for them by yielding returns on investments. Nowadays more than ever before, people are finding it easier to invest in the stock market through company shares as a result of the increased awareness of the fortunes available in the stock market.

One of the very first things an aspiring trader or investor must do before attempting to invest in the stock market is to equip himself with knowledge. Some people just think I'll get a stock broker to do everything for me. This method of approach is wrong as the stock broker has other clients to attend to. The major service the stock broker renders is helping you manage your sells and buys on the stock exchange; although they could advise you on the potential benefits of buying a particular stock as against another.

One of the basic knowledge an aspiring trader, broker or investor must have is the two major forms of stock analysis. This knowledge is the root of all the necessary knowledge needed to survive and make profits in such a fiercely competitive market. After all is said and done, most finance and stock brokerage experts will tell you that these two forms of analysis is what would ultimately save the day. These two forms are known as the Technical Analysis and the Fundamental Analysis.

Technical analysis involves the manner of playing the market with assumes that non-random price patterns and trends exist in markets, and that these patterns can be identified and exploited. While many different methods and tools are used, the study of charts of past price and trading action is primary. It maintains that all information is reflected already in the stock price, so fundamental analysis is a waste of time.

Trends are your friend and sentiment changes predate and predict trend changes. Investors' emotional responses to price movements lead to recognizable price chart patterns. Technical analysis does not care what the value of a stock is. Their price predictions are only extrapolations from historical price patterns.

However this is different from what is obtainable in fundamental analysis. Fundamental analysis takes a critical look at the performance history of a company, the method of management, market share and how much profit it has made in at least three years. Also included in the indices used as measuring yardstick is its future projections and how it intends to execute all stipulated projects. The aim of all these is to ascertain the company's potential risk, make conclusions based on its present performance, and to forecast its possible profitability and increase in stock prices.

Those are the major differences between the two methods of analysis. The key is to finding that which suits you. You can use technical analysis if you plan on investing for short amount of time weeks maybe even months but not years.

Likewise you don't want to be a Fundamental investor unless you plan on investing for months and months. Some people though use the two methods when appropriate. But in all, choose what works best for you. [...] Read more!

The most used words of the stock market jargon are 'Bulls & Bears'. These words represent the market trends of a particular stock or stock exchange. In the stock markets, buyers are represented as bulls and sellers as bears. It becomes obvious that a bullish market correspond to a booming economy and a bearish market testifies for a bad economy looming with recession.

Market trends are described as periods when bulls (buyers) consistently outnumber bears (sellers), or vice versa. A bull or bear market describes the trend and sentiment driving it, but can also refer to specific securities and sectors ("bullish on IBM", "bullish on technology stocks," or "bearish on gold", etc.).

Bull market

A bull market tends to be associated with increasing investor confidence, motivating investors to buy in anticipation of further capital gains. The longest and most famous bull market was in the 1990s when the U.S. and many other global financial markets grew at their fastest pace ever.

In describing financial market behavior, the largest group of market participants is often referred to, metaphorically, as a herd. This is especially relevant to participants in bull markets since bulls are herding animals. A bull market is also described as a bull run.

Bear market

A bear market is described as being accompanied by widespread pessimism. Investors anticipating further losses are motivated to sell, with negative sentiment feeding on itself in a vicious circle. The most famous bear market in history was 1930 to 1932, marking the start of the Great Depression.

Prices fluctuate constantly on the open market; a bear market is not a simple decline, but a substantial drop in the prices of a range of issues over a defined period of time. By one common definition, a bear market is marked by a price decline of 20% or more in a key stock market index from a recent peak over a 12-month period.
[...] Read more!

A stock market is a private or public market for the trading of company stock and derivatives of company stock at an agreed price; both of these are securities listed on a stock exchange as well as those only traded privately. Trading in stock markets is one of the most popular investment methods.

A “stock” is a share in the ownership of a company. A stock represents a claim on the company's assets and earnings. As you acquire more stocks, your ownership stake in the company becomes greater.

Note: Some times different words like shares, equity, stocks etc. are used. All these words mean the same thing.

Here's a basic guide about stock trading. If you are considering investing in the stock market, you MUST read it.

• Part I: Introduction


• Part II: Need for Stocks


• Part III: Understanding the Markets


• Part IV: Important Investment Basics


• Part V: Stock Trading Strategies