Stock Market Tips That Can Work For The Average Consumer
Be patient, get familiar with each equity and monitor closely to succeed in your investment strategy. To learn more about successful investing, take a look at the following article for some excellent advice. You will be able to start earning money right away.
KISS (Keep It Simple Stupid) is a phrase that can definitely be applied when you are making stock market investments. Trading, making predictions or examining data points should all be kept simple.
Stocks are more than just paper money that you trade for fun. Once you own a stock, you now have partial ownership of whatever company is behind that investment. This means you are entitled to both claims and earnings. You can often make your voice heard by voting in elections for the company leadership.
Before you do anything that involves investing with a broker or trader, make sure you understand what fees you might be liable for. Look for exiting as well as entry fees. Over time, these things can add up, so double check to be safe.
Only allocate a tenth or less of your investment https://alpha.app.net/theciofund capital into a single stock. It is unwise to invest more in one place. With lower investment, you will greatly reduce your potential for losses.
It's vital to re-evaluate your portfolio's health, quarterly. This is because the economy is changing all the time. Some sectors may start to outperform other sectors, and some companies will do better or worse than others. Depending upon the economic environment, it may be better to invest in certain financial instruments rather than others. Keep a close eye on your portfolio, making occasional adjustments so that it continues to meet your financial goals.
When you first begin to invest in the stock market, it is a good idea to remind yourself frequently that overnight success is extremely rare. It usually takes quite a while for a company's stock to become successful, and a lot of people tend to give up. Patience is a virtue you need when investing.
To make your portfolio work for you, create an investment plan or policy and put the rules in writing. This plan needs to have things such as different strategies to use when buying and selling certain stocks. It should also clearly lay out what your investing budget is. This helps you make investing decisions using your head, rather than your heart.
Try to avoid investing heavily in your own stock. Investing in your company stock is acceptable, but a safer portfolio is one that is diversified with several types of investments. If your portfolio only consists of your company's stocks, you will have no safeguard against an economic downturn.
People seem to believe it's easy to become rich by using penny stocks, but they fail to realize that long term growth, with a focus on compound interest, is usually the better route. Although choosing businesses for possible growth is important, you need to make sure you keep your portfolio balanced with a few large companies as well. Find stock opportunities provided by companies whose numbers http://money.cnn.com/data/premarket/ are consistent across the board in terms of growth.
If you use a brokerage firm for investing, ensure it's trustworthy. There are lots of firms who promise to make you tons of money investing in stocks; however, a lot of them are nor properly trained to do so. Research the brokerage firm reviews on the Internet.
Make your first investments with the bigger, more familiar companies. A cautious portfolio that consists mainly of stock in larger companies will minimize the risk you are exposed to as a novice trader. You can start selecting stocks from smaller companies after you are familiar with the market and ready to branch out. Keep in mind that smaller companies have potential to provide fast growth, especially when these companies are considered to be hot. However, at the same time, these companies possess a higher loss risk.
Consider online stock trading to save money on fees. Online stock trading companies tend to be a lot cheaper than a traditional brokerage firm. Make certain that you have done enough comparison shopping to ensure you have gotten the best deal around. TradeKing and Fidelity are good examples.
Get a stockbroker. They can give you a quicker start with your stock portfolio, warn you about newbie mistakes and teach you a ton about making wise investment choices. Stockbrokers usually have insider information on mutual funds, stocks and bonds, which helps you make wiser investment choices. They can also assist you with your personal stock portfolio, which helps you keep track of how your goals are progressing.
When you analyze a business as an investment, you need to look at many factors that will affect its performance. If 5% of the shareholders control a majority of the voting rights, for example, this may be a bad sign. Situations like this should be avoided.
Don't fret if you make a few losing investments when you're just starting out. Many stock market beginners get flustered when it does not go well at first. It takes research, knowledge, experience and practice to become an investing professional, so keep this in mind before giving up.
While stock market investment is an option anyone can take advantage of, only those who prepare and educate themselves properly will see the best results. Take the time to educate yourself on the stock market and the companies involved before you start throwing your money into it. Keep these tips in mind so you can start investing today!
Daily Agenda: Australia Latest U.S. Ally To Consider AIIB
Kraft and Heinz to merge; Bank of China acknowledges more bad loans; Orange juice futures on rally.
Tony Abbott, Australia's prime minister, gestures as he speaks during a news conference at Parliament House in Canberra, Australia, on February 9. Abbott stated today that Australia would consider joining China's AIIB. Photo credit: Mark Graham/Bloomberg
In another blow for U.S. foreign policy, Australian Prime Minister Tony Abbott stated today that Australia would consider joining China's Asian Infrastructure Investment Bank, provided that there are assurances that China would limit its political power within the organization. Media outlets in Australia have reported that the cabinet has approved an initial memorandum of understanding for joining the bank. For the U.S., which under the administration of President Barack Obama has sought to shift to a more heavily Asia-centric trade and diplomatic tilt, the stakes are high. After securing trade and defense agreements with India, the attempt to stymie Beijing's financial influence by lobbying trading partners to abstain from the new bank initiative is a clear message that Washington intends to continue to increase its influence in Asia. For now, though, China's economic clout appears to be winning out over the U.S. political agenda.
Kraft announces merger with Heinz. Suburban Chicago-headquartered Kraft Foods Group is to merge with H.J. Heinz to create North America's third-largest food and beverage company, with combined revenues of about $28 billion. Brazil-based private equity firm 3G Capital was part of a consortium that took Heinz private in a $23 billion transaction in 2013; the deal announced today marks Heinz's return to public trading.
Bank of China doubles bad loan hedge. Fourth-quarter profits reported by Bank of China rose by nearly 5 percent year-on-year, with net income totaling 38.5 billion yuan ($6.2 billion) for the period, the bank's slowest fourth-quarter net profit growth in six years. Critically, the bank saw an increase in its ratio of nonperforming loans, with the total earmarked for bad debt rising to over 100 billion yuan, or 1.2 percent of total outstanding debt.
German business confidence spikes. Data released today by the IFO Institute showed a significantly improved mood among German business leaders. The expectations subindex reached 107.9 versus 106.8 in February, while the current assessment measure rose to 112 from 111.3 the previous month.
Plane crash investigation continues. The search for evidence at the site of yesterday's crash of Germanwings Flight 9525 continues. French authorities have recovered one of the Airbus A320's black boxes as recovery teams navigate mountain terrain. German insurance giant Allianz announced yesterday that it was the primary underwriter for the aircraft.
Orange crop in peril. Orange juice futures contracts have staged the largest three-day rally in 16 years with contracts for May delivery up over 20 percent from Friday's session to Tuesday. Unseasonably cold weather and so-called greening, or premature fruit, on trees in Florida this winter have raised concerns regarding production levels there.
U.S. economic indicators on deck. Durable goods orders for February and the critical Energy Information Administration oil inventory levels will be announced today. The pace of orders is expected to slow dramatically from January's sharp rebound, which was driven largely by the transportation sector.
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switching gears to Price Action via SLA
So I'm starting a journal as a way to track my SLA (straight line approach) journey to becoming a successful trader. I have quite a road ahead of me. Yup - I've been looking at the market for some time, have a lot of ideas and theories in my head and have some repeated failure in my history, so I've got to work at ridding myself of learned behaviors, letting go of ego/fear and sticking to a predetermined plan.
I will be posting my understanding of SLA, a plan for trading and my thoughts as I learn to read the market.
I admit that I'm not well-versed in Support Resistance, but I absolutely CAN draw a straight line!
To give a better idea of the path being taken and what I'm hoping to get out of this, dbphoenix has suggested that the following questions be answered:
What do I want to accomplish?
I want to learn how to read the market in real time and make consistent and appropriate trading decisions based on my read of the market.
What kind of trading is most comfortable to me?
Short-term day trading
Time of day to trade?
First few hours surrounding the NY open
Instrument to trade?
Futures - NQ
Timeframe to trade?
Primarily 1-min, but also use the 5-min and hourly timeframe to provide a larger scope of what's happening
Edit: 1-min refers to a bar interval.
System to use for trading?
SLA. Want to concentrate initially with exiting at the break of a supply/demand line, but get more comfortable with my price reading to allow price the opportunity to resume initial trend movement.
Strategy to use?
Spot retracements and enter in the direction of the trade. Reversal and breakouts will be used after comfort with retracements occur.
Timeframe to trade?
Primarily 1-min, but also use the 5-min and hourly timeframe to provide a larger scope of what's happening
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"Timeframe" refers to the span of time in which you're interested: a day, a week, a month, etc. The 1m, 5m, etc, refer to the bar intervals to be used to illustrate the price movement within the timeframe of interest.
Trading should be like going to a game where you know nothing about either of the teams and couldn't care less who scores, much less wins. Having a trade on makes this more difficult, but the principle remains. To do otherwise implies trading with the ego, and that state clouds perception and judgement.
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This was posted in "game's" making of a method thread and it really resonated with me. I've never thought of it that way because I always assumed/wanted/hoped that price would do 'such and such' because it's what I wanted or needed. Enlightening stuff...
I worked through the morning of 12/3/13 to watch price and see how it behaves. Attached is my chart with areas marked and what was going through my head at those places. I can honestly say that I don't know if my SL and DLs are drawn correctly, if I've fanned when appropriate, if I've assumed a real direction change when I should have still been considering the previous direction. But here are my thoughts:
EOD on 12/2/13, there was a pretty aggressive down move.
Bit of a rebound overnight, but the balance seems to favor the sellers before the open.
The low from 12/2 had been met, exceeded, bounced off of, etc. (solid red line). That price point was returned to repeatedly. Will that be a point of congestion going forward?
Buyers and sellers have settled into a 3-5 point range in the few hours prior to the open (dotted red line).
First breakout of that range occurred at 0918. Buyers trying to take the lead.
Trendline break. Not sure if it can count as a DL yet as it's the first time price exited the prior range.
HH - seems to validate the DL
Immediate DL break
HH - price moved above and below the DL
Price is quite a distance from DL, but fanning it would seem to defeat the purpose of having it.
Price retreats all the way back to the original DL.
Feels like the bottom dropped out. Definitive break of DL and down TL can be drawn.
Red line again met and exceeded
SL break but couldn't make LL
Significant retrace followed by LL
SL broken, retrace and the dog barked - DL in place
Minor retrace - well inside the DL
HH and DL break
Definitive DL break
Same high - fan DL or only do so if HH?
Retrace, but couldn't go lower than LSL
HH - permission to fan DL - big price push - would tend to expect seller pressure in response
DT?
Exits DL, but now lower than LSL
Can draw down trend line. Definitive DL exit. Sharp price rise. Thinking RET, but not sure if it would be for an up move or a down move. No certainty felt here.
If turning south, strong pressure to bring prices back up, but no HH.
HH - expect decent pull back. With new HH, drew 'revised' DL from #21 area.
Close outside revised DL
RET for either up or down
LL - dog barked??
Immediate SL break
DT or previous up thing?
Feels like a hinge
Hinge fakeout?
SL break
I'm trying to draw conclusions regarding price movement. Drawing conclusions is not so I can predict patterns, but so I can be aware of behaviors. When an aggressive move occurs, there tends to be an equal, but opposite movement. Looking for that opposing movement helps me to feel more comfortable with it rather than fear it. I need to keep working with that thought in mind. I used the word, 'expect' in that regard as it helps me to plan for it rather than be surprised/disturbed by it.
I welcome comments from those working with SLA on my thought process.
Just some minor advice, try not to extend the lines once you daclare them broken, that used to cause a lot of confusion at first for me.
Regarding fanning, you need the trend to prove itself, therefore you need a HH or LL before fanning, sometimes a steep trend might turn into a microTC your lines must allow you to see that change in momentum, some other times the trend will launch into a parabolic move and your lines wont be of much help, also take that into account.
I'm trying to draw conclusions regarding price movement. Drawing conclusions is not so I can predict patterns, but so I can be aware of behaviors. When an aggressive move occurs, there tends to be an equal, but opposite movement. Looking for that opposing movement helps me to feel more comfortable with it rather than fear it. I need to keep working with that thought in mind. I used the word, 'expect' in that regard as it helps me to plan for it rather than be surprised/disturbed by it.
I welcome comments from those working with SLA on my thought process.
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This is the phase that I wish so many others would not skip. I know people who've been at this for months, or more than a year, who don't see what you see because all they can think about is entries.
Take care, however, that you not become so entranced with the lines that you forget to think about who's in charge. The lines are there to help you do that, but they can easily become an object in themselves, which can take on all the aspects of a game of Twister.
For instance, when you find yourself with a series of overlapping bars, the lines don't matter so much as the fact that you have overlapping bars, i.e., nobody's in charge, nobody has the upper hand. On the other hand, if a line is broken, who's in charge? If a lower low is made, wic? If that lower low is rejected as if price had touched a hot stove, wic? If price runs for daylight, wic? That doesn't mean you know where to take a trade, or even if you should take a trade at all. But you're laying the groundwork for the hypotheses you'll be testing when you get around to looking at what's worth taking a chance on and what's not, after which you'll be looking at exactly where those entries should be taken and how the trade should be managed.
Just some minor advice, try not to extend the lines once you daclare them broken, that used to cause a lot of confusion at first for me.
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Thanks for that advice - will do. As I indicated above, I'm still not 100% sure if the lines are 'correct' as Demand and Supply lines. But I'll keep working at it - and work on highlighting the current rather than focusing on what came earlier.
Take care, however, that you not become so entranced with the lines that you forget to think about who's in charge. The lines are there to help you do that, but they can easily become an object in themselves...
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I could see that happening. I'm not nearly comfortable to think about a chart with ZERO lines, but I also don't want my screen to become cluttered and ONLY see lines and not see behavior.
For instance, when you find yourself with a series of overlapping bars, the lines don't matter so much as the fact that you have overlapping bars, i.e., nobody's in charge, nobody has the upper hand.
On the other hand, if a line is broken, who's in charge?
If a lower low is made, wic?
If that lower low is rejected as if price had touched a hot stove, wic?
If price runs for daylight, wic?
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The questions you've asked are all things that I think I should know, but I don't. Is context involved in all of those situations? I mean, lines are broken quite a bit, but often it's just a tease (action/reaction kind of thing) and price resumes the original direction. If a LL is made, I'd assume for that a certain amount of time, sellers were in charge. But if the LL were made and the bounce off was as you said, "like touching a hot stove", I'd say that buyers were in charge. If price runs for daylight, I'm thinking that buyers are again in charge.
I guess I'll have to keep watching and get a feel for what happens. I went and looked at this day afterwards and price just kept going down and down and down. One pullback early and another around the red line, but mostly just down movement. In some ways, I'm glad I looked at the open as nothing (to me) was definitively clear. For trading purposes, the trending days are great. For learning really and truly what you're looking at and what your hypotheses might be, this was a good exercise.
Thanks for taking the time to read what I've posted.
Is context involved in all of those situations?
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Pretty much. If price breaks through a line, it does so because the balance between buying pressure and selling pressure has shifted. That shift may have something to do with what's gone before, or it may come out of nowhere. What is most important in the moment, however, is that the balance has shifted. Eventually you'll have to figure out what to do about that.
Thanks for taking the time to read what I've posted.
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Happy to. It's unusual to see somebody going through the process rather than rush ahead.
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