Stock Market For Beginners - Your Guide to Stock Market Basics-SaveMoneyGuides.com

Stock Market For Beginners - Your Guide to Stock Market Basics-SaveMoneyGuides.com thumbnail

<>,Understanding the stock market for beginners starts with understanding some stock market basics.Buying a stock means that you own a part of a company. A stock is the smallest share that is possible. A stock is issued by companies who raise capital to sell a portion of their company. Those who hold stock also hold the right to voice opinions about how a company runs and share the profits (if any). Even though stock owners have some rights, they do not face responsibility if the company faces a la


Should You Buy Stocks on Margin?-SaveMoneyGuides.com

Should You Buy Stocks on Margin?-SaveMoneyGuides.com thumbnail

<>,Sooner or later many investors come across the concept of buying on margin, or using borrowedmoneyto purchase stock to get extra oomph in their portfolio. But new investors should think twice before taking the plunge.Brokers are only too happy to lend youmoneyto buy stocks and bonds if you open a margin account. You have to put up only part of the securities’ price, and your broker lends you the rest. You just sign a couple of forms, and your broker runs a routine credit check on you. Brokers ar


Stock Market For Beginners - Try Trading Penny Stocks-SaveMoneyGuides.com

Stock Market For Beginners - Try Trading Penny Stocks-SaveMoneyGuides.com thumbnail

<>,If you are brand new to trading stocks, you’re probably looking for one of those “stock market for beginners” type information.There is a ton of information out there.It can be an extremely confusing subject. You might want to think about the trading the penny stock market.There are some great advantages to trading penny stocks, especially if you are a beginner, which sounds like you are.First and foremost penny stocks gives you a lot more potential on your investment, through the use of leverag


Investing Psychology - Does Wealth Begin in the Mind?-SaveMoneyGuides.com

Investing Psychology - Does Wealth Begin in the Mind?-SaveMoneyGuides.com thumbnail

<>,Traditionally the study of economics and finance is based on the assumption that people always behave rationally. In reality people often behave irrationally, ie not in their own quantifiably best interests. Behavioral finance, the combination of psychology and financial theory, is now a growing academic discipline. This article reviews some of its key features and suggests why they should be important to every investor.It’s important to understand behavioral finance for 2 reasons. First, knowle


How Active Should You Be?-SaveMoneyGuides.com

How Active Should You Be?-SaveMoneyGuides.com thumbnail

<>,How active should you be in re-arranging your investment portfolio? For an ideal investor in an ideal world, the simple answer is as little as possible. But this assumes, of course, you always make the right decisions and that life is completely stable. In reality things change, in the economy at large as well as in your personal circumstances.Are you an investor, or a trader? These operators adopt very different strategies and it’s important to know which you are. This article is aimed at the i


Penny Stock Trading Vs Penny Stock Investing-SaveMoneyGuides.com

Penny Stock Trading Vs Penny Stock Investing-SaveMoneyGuides.com thumbnail

<>,It’s a common mistake. Many investors tend to use investing and trading interchangeably, but they are not the same thing. The goals of engaging in penny stock trading are very different than those of penny stock investing.Let’s break it down in a very simple manner.Penny stock TradingA stock trader is someone who buys and sells stock for a very short period of time-could be five seconds or five days.The goal of the stock trader isn’t to plantmoneyinto some stock, water it and hope it will one da


Indexing is King - But What Index?-SaveMoneyGuides.com

Indexing is King - But What Index?-SaveMoneyGuides.com thumbnail

<>,There is widespread agreement that index (tracker) funds produce superior returns to the average actively managed fund. That is, if you invest in a tracker you’ll most likely make more than if you invested in active management. It must be said that some active funds do beat the index; the problem is they can’t be identified in advance. Trying to find them is akin to playing roulette. The corollary of this is that the bulk of your stock portfolio be held in index tracker funds or Exchange Traded


How to Invest Directly in the Shares of a Company?-SaveMoneyGuides.com

How to Invest Directly in the Shares of a Company?-SaveMoneyGuides.com thumbnail

<>,Several great listed companies have a direct investment plan. This could take three forms. One could invest a fixed amount in the shares of a company. Let us say you like Wal Mart and want to buy its shares. You could write a cheque to the Registrars of the company (go to the company website, look for investor relations and see how this can be done). You could authorize the company to take a fixed amount fro your bank account every month and some companies would do this. The company will then bu


Three AMEX Oil

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Keeping a Good Risk to Reward Ratio-SaveMoneyGuides.com

Keeping a Good Risk to Reward Ratio-SaveMoneyGuides.com thumbnail

<>,Keeping a good risk to reward ratio is critical to the success of a stock market trader. This is something that most new traders will ignore.In fact there are people who will take a trade that offers them a $2 risk in order to make a $1 reward. The main reason for this is that new traders do not expect to be wrong. They believe that it is possible to be right all if not most of the time when trading.This thinking is more of a daydreaming philosophy. Anyone who is serious about stock market tradi