STOCK TRADING: ONLINE & OFFLINE RELOADED

FAP TURBO ROBOT WONDER

noreply@blogger.com (John Efetobor - Stock Trading Strategist) — Thu, 15 Jan 2009 01:35:56 PST

Forex trading has never experience the kind of bang that FAP TURBO ROBOT brought to the industry. In thses articles I shall be sharing with you the amazing transformations that this amazing software brought to online forex trading Read On......

Forex; also known as the Foreign Exchange Market (or the "FX" Market) it involves in the buying of currency while at the same time, selling of another currency. A broker is an agent who works in the role of an intermediary between the trader and the client Read On.......

The first and most important tool you need is computer (desktop/laptop) with an Internet connection or virtual private server for remote trading is all that is needed to begin trading currencies. Fap turbo comes with full detailed instructions and directions; so no pre-forex knowledge is needed Read On.......

After you sign-up for FAP Turbo you'll receive your very own special personalized welcome package and access to your VIP Members area. From there you'll be given your unique license key for the robot. As soon as the robot is installed on your computer and is set, you’ll now be required to follow the step-by-step hold-me-by-the-hand simple training instructions Read On.......

Ever since the prelaunch date of FAP TURBO on the 20th of November, 2008 and the eventual launch date which was November 25th, 2008 9am EST of Fap Turbo robot; there have been so much buzz of excitement in the forex and investment world. These buzz have centered on 5 targeted areas which includes Read On.......

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There were many Forex Trading Robots that showed prove of excellent results through backtesting results. However, they do no show the real performance when being Live traded.

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The Pros Of Value Investing

noreply@blogger.com (John Efetobor - Stock Trading Strategist) — Fri, 09 Jan 2009 06:39:20 PST

In my honest and assured opinion, value investing is one of the best things to have happened stock investing. At least; Benjamin Graham agrees with me. Ask Warren Buffet, I know his opinion will not be any different. If your portfolio is going to stand the test if time; I must implore you to look the way of value investing. Before I dig into the pros of value investing, let me attempt a concise explanation of the meaning of the value investing.

Let me give a list of definitions, perhaps you will be able to identify with the one that most appropriately conveys the meaning to you.

Value investing is when an investor invests in a company trading below its inherent worth.
When an investor specializes in buying stocks that are grossly undervalued but have not lost their value.
Value investors buy stocks whose profit potential is far higher than its present price; that way they are able to grow their portfolio to enviable heights over time.
Value investing is the strategy of selecting stocks that trade for less than their intrinsic value.
Value investors believe in buying a stock when the selling price is low and sell when it is high.

To be able to excel in value investing; there are certain sure fire tools you must familiarize yourself with; they are tried and tested tools that great value investors have used and are still using.

Top on the list…

The price to earning ratio: The value investor uses P/E ratio to quickly determine the worth of a stock relative to how much a company is earning. The value investor believes the lower the ratio (less than 10) the better the deal.

Strong fundamentals: The value investor believes that for a company to a real bargain, the company must have fundamentals strong and healthy enough to imply that it is worth more than its selling price. The value investor views very strongly current price in comparison to intrinsic value and not to historic price.

Current assets vs. liability: The value investor weighs the size of the current assets over the liability of a company. The value investor is excited when he sees a company whose current asset is twice of current liabilities.

Earnings growth: Value investor believes earnings growth of a company should be al least from 7% - 10% per annum compounded over the last 5 – 10 years.

Earnings per share: The value investor considers EPS as a vital tool that helps estimate the value of a share in comparison ton the selling price. The higher earnings per share; the better the deal.

Why do value investors love value investing?

1.    It reduces risk: risk of a share underperforming is greatly reduced because of “guarantee indexes” explained above.

2.    Profit possibilities is  great and guaranteed

3.    The power of compound interest

4.    Getting stocks at discounted price.

The Importance of Long Term Trading

noreply@blogger.com (John Efetobor - Stock Trading Strategist) — Fri, 09 Jan 2009 06:36:27 PST

Long term trading is a very effective and reliable strategy to adopt if you desire to create wealth via the capital market. Take a look at the investors that are living testimonies of the glowing legacies of the stock’s market wealth; without fear of being contradicted are long term traders. Long term trading is a pattern of trading that allows an investor to invest in shares over a long period; during this period a lot of factors combine to enlarge the size of your investment or portfolio. In the course of this article, I will discuss some of these factors. But first; let’s look at WHY long term trading is highly recommended if you want create lasting wealth from the stock market.

INFLATION: long term trading allows you to beat inflationary trends in the economy. Inflation diminishes the size of your savings in a bank over a period of time. Let’s say you banked 10,000 in a bank and the bank gives you 5% interest at the end of the year; your savings would amount to 10,500. Inflation trends dangles between 8% – 12% within the year, imagine what that range of inflation would do to your savings over a period of 5 years. But if your invest that same money in a strong stock adopting long term trading, you are guaranteed returns ranging from 50% - 100% in a year from the forces of capital appreciation, dividends and bonus scrip over the period in discussion (5 years)

COMPOUND INTEREST: Compound interest is one of the most awesome wonders of investing. It is the process where the interest your invested capital earns in turn also begins to earn interest which is added to your capital and the process continues as long as it is allowed to continue. Compound interest only functions effectively around the atmosphere of long term trading. The power of compound interest is hidden in TIME.

DIVIDENDS AND BONUS SCRIP: As the months and years roll by; every unit of share you own in your portfolio is enlarged by the combined forces of dividends and bonus shares. Each unit of shares in your portfolio over time earns interest called earnings per share from the company you invested in. If the company’s business performs well; additional free shares will be added to your portfolio. Long term trading allows you to enjoy the fruits dividends and bonus issues.

RISK REDUCTION: Long term trading reduces all risk associated with stock trading. Every seasoned stock trader knows you can’t always beat the market. There are forces every stock trader has to contend with. Forces like price fluctuations, economic instability, bad news that cause stocks or investors to sometime overreact, liquidity, and other related forces that space will not allow me to include. All of theses forces can be corrected with long term trading unlike short term trading; long term trading gives you a balance. A balance that gives you peace of mind.

Why Does the Stock Market Price Rise and Fall

noreply@blogger.com (John Efetobor - Stock Trading Strategist) — Thu, 08 Jan 2009 10:48:19 PST

The question about what moves the tock market is quite complicated. There are several visible and invisible factors that cause the rise and fall in stock market. There are several issues on political, economic and social level that include inflation, change in interest rates, earnings of the people, oil and energy prices, war, peace and terrorism, political and domestic situation and so on. While some of these factors may have long-term consequences for the stock market, others may have only short-term implications.

What, however, drives the market crazy is the uncertainty factor. What the stock market is most sensitive to is the surprises. When something unusual occurs in the country, the stock market immediately reacts to it. Stock market radars are extremely sensitive to changes.

This can be illustrated by an example. If the Federal Reserve Board's Open Market Committee-Fed- thinks of raising the interest rates by one quarter percent, the stock market will not react much. If contrary to the expectation, the Fed raises the interest rate by one-half percent, the market will feel shocked.

So any news which can surprise the market can rattle it, be it on the economic front, terrorist attack and similar other incident. If the news is really good, it also shows its impact in form of rise in stock prices.

The cumulative effect of these factors, whether good or bad, creates market phases such as bulls phase, bears' phase or secular phase.

A bull market is also referred to as a bull run. A bull market is characterized by a rise in stock prices. It keeps most investors happy. It creates and strengthens their confidence and makes them optimistic about the returns on their investments. Therefore they tend to invest in stocks in the hope of making big in the near future.

A notable example of bull market was in the 1990s when the US and several international markets had a very happy time because the financial markets went up very rapidly. The US stock markets had a bull run from 1983 to 2007 except for brief periods of slumps.

Bear market is associated with fall in prices and lots of pessimism. Investors fear losses. A negative sentiment prevails in the market and investors want to sell their stocks fearing further downfall.

The most glaring example of bear phase in the history of United States was after the Wall Street Crash of 1929 that continued from 1930 to 1932 generating what was called the Great Depression. A milder version of bear market occurred from about 1973 to 1982 when the economy became stagnant. It resulted in energy crisis and high unemployment in the early 1980s.

A bear market is often characterized by the constant price fluctuations. A bear market does not mean just a simple fall in stock prices. It may result in substantial price fall. Although you cannot give a clear definition of bear market, it is often characterized by a fall in price by around 20% in a period of two months. A recent example of bear market is current state stock markets of world in the year 2008.

A bear market should not be confused with a period of correction. Correction also results in fall in stock markets, but a period of correction is usually short lived. Moreover correction usually occurs during the bull phase. The price fall does not surpass 15-20%. The bear markets last longer and suffer much greater price falls from top to bottom.

A period of correction in stock prices is usually a welcome opportunity for smart stock market investors. They try to buy high value stocks when most people try to sell them away at reduced prices. The profit from their sales as soon as the correction period, which is usually short lived, is over.

When the stock market price shows downward trend, the analysts begin to debate whether it is actually a correction, a rally, or the start of a bear market or even a bull market. In any case it is usually impossible to arrive at any correct decision. In fact, whether the market is actually passing through a correction or a truly bear phase can be determined only after that phase is over.

It must, however, be noted that a bear market howsoever depressing it may be, rarely wipes out the real (inflation adjusted) gains made during the previous bull market. On the other hand the bulls that succeed the bears often make up for the real losses of any bear market.

By Micheal James

How I Make Money From Stocks in a Falling Market

noreply@blogger.com (John Efetobor - Stock Trading Strategist) — Thu, 08 Jan 2009 10:47:15 PST

I have been making some great money from the stock market over the last few weeks. In this article i will explain my strategy and disect how and why I have been making money despite global indices falling as the full effect of the credit crisis sinks in to the financial world.

The media is absolutely full of doom and gloom about the worlds stock markets at the minute. Most of the major indexes like the Dow Jones or FTSE have fallen significantly over the last few weeks. Many people will tell you that it is the worst time to be owning stocks in years. This is not exactly true. What is not publicised by the media is that volatile markets such as these present very strong opportunities to make money from the markets. I will explain how below.

Many of the markets that focus on smaller companies (non banks) are not affected by the negative news coming out of the banking sector. As a result my penny stock investments have been unaffected by the current crisis. In fact they have been doing better than usual, I suspect as a result of many investment managers moving some of their portfolio funds from major indices to smaller cap firms and penny stocks in order to limit their losses.

My investment strategy is very simple. I am subscribed to a stock list that provides me the results of a detailed computer program/analysis tool. This gives me a massive head start to picking winning stocks as it saves me wasting the majority of my time investigating stocks that I end up not investing in. This subscription (which cost me under $100) dramatically improved my investment success alone.

Once I have the shortlist I simply hit Google and look at recent articles about the company in the press. Key signals I look for are recent announcements concerning new contracts signed, possible take over targets, anything really that indicates they are a company on the rise. Next i usually head to their website and compare it to their competitors sites. I ask myself the simple question "if i was a possible customer, would I choose them or their competitors?". If I choose them I will go ahead and invest once the stock reaches the target price in the list I received as mentioned above.

The great thing about this strategy is I no longer get bogged down in all of the details and numerical analysis I used to spend days and days performing.

By James McKerr

The Best Investment To Own Right Now

noreply@blogger.com (John Efetobor - Stock Trading Strategist) — Thu, 08 Jan 2009 10:46:09 PST

I didn't want to find myself in this position.

Hank Paulson looks awful. He's sweating, uncomfortable, and clearly would rather not be where he is. He looks like he has a gun to his head. Maybe he does... judging from his choice of words-"quickly," "action is needed," "strongly urge"-something dire is about to happen.

Indeed, Paulson's got himself into a real fix. In July he asked Congress for a blank check-a "bazooka" as he called it-to potentially bailout Fannie and Freddie. At the time, his argument was that if the market perceived him as having this "bazooka" he wouldn't have to use it.

Well, Hank DID have to use the bazooka... the bazooka didn't do anything... and now Hank is back asking for a nuclear warhead. And this time he wants it without any judicial review or oversight.

Rather than delving into the actual testimony of the various officials, I'd rather focus on the subtext or real message they were trying to communicate without doing so explicitly. That message is the following...

We have lost control.

For decades the market has operated under the notion that the Federal Reserve would be able to solve its problems by controlling the money supply should things turn for the worse. We are now finding out that assumption was blatantly false. The Fed and the Treasury have done everything they can-including several actions that are not in their charters-to strengthen the financial markets.

All of their efforts have failed.

We are now at a CRITICAL point. Even if Congress DOES grant the regulators the $700 billion in funds they've requested, it won't necessarily re-instate confidence in the credit, bond or stock markets. The trust is gone. And investors are panicking.

According to the New York Post money market funds were hit with $500 billion in sell orders last Thursday. The Post wrote that the Fed's pumping of $105 billion was "just enough to keep key institutional accounts from following through on the sell orders..."

To give you an idea of the seriousness of this statement, consider that collectively money market funds control over $3 trillion. So $500 billion in sell orders represents nearly 15% of this market trying to liquidate at once. We were literally on the brink of a full blown systemic collapse.

Investors are now trying to find safety anywhere they can. It's proving difficult. Last week the yields on Treasuries fell to their lowest levels since the Great Depression. At one point, investors were willing to lend to the US government for a paltry 0.4% in interest-they were essentially lending their money for free, just to insure that the principal was safe.

However, the interventions-particularly the proposed $700 billion-are not exactly dollar positive. Every bailout the US engages in means more debt on the US balance sheet and more money printing. Small wonder that yesterday the dollar posted its biggest single day decline since the Euro was introduced.

And then there's gold...

Gold has staged an incredible turnaround as investors turn to value and safety again. There are even rumors that foreign central banks are buying. Hank Paulson might not like the position he's in... but gold investors are loving it.

By GrahamSummers

Making Money in the Stock Market Crash - How I Am Doing It

noreply@blogger.com (John Efetobor - Stock Trading Strategist) — Thu, 08 Jan 2009 10:44:28 PST

You do not have to look very far to see news about the turbulence on the stock markets over the last few weeks and months. Few people will have escaped the recent falls in stock prices without some losses in their stock portfolios. In this article I will explain the investing strategy I have used to navigate my portfolio through the crisis and still return a profit of over 10% over the last two months.

If you are thinking about investing in the sock market or want to know where to invest your portfolio or savings in these turbulent times then this will hopefully be the most important article you have read for a long time. In it I will share the exact methods I have been using to make money during the credit crisis.

The recent crash in the worlds stock markets have manly been due to the faltering banking sector. The cause of the problem is that the banks in recent years had invested huge sums of money in sub prime mortgages. Once house prices started falling in the US people started defaulting on their mortgages making these investments turn heavy losses.

The above sub prime mortgage crisis was the start of the problems. As time progressed in the latter half of 2007 various banks started announcing huge losses as a result of their investments in the sub prime mortgage market. As more announcements were made banks suddenly became very wary of lending money to each other because they did not know how big the potential losses were on each others sub prime investments. Banks rely on borrowing off each other to fund their activities (such as giving us mortgages) so suddenly banks were unable to borrow money to fund their activities and as we are seeing now many filed for insolvency.

So how does all of this relate to my stock investments? Well the above credit crisis has manly affected the major indexes such as the Dow Jones and FTSE. What has not really been publicized is that the impact on smaller companies has been minimal because they rely far less on funding their activities from the large banks.

Finding information about these small cap companies can be a challenge. I am subscribed to a service that sends me a short list of companies that are undervalued. The list is produced by a computer that analyzes company data of thousands of firms looking for signs that they are undervalued. This saves me a huge amount of time that I would have otherwise wasted investigating stock I ended up not investing in.

Of the stocks in this shortlist I then conduct my own analysis on each company, filtering out any stocks related to banking or financial sectors. I do basic research such as look at their websites, gauge professionalism by clang their HQ and requesting a copy of their annual reports. Google can tell you may things about a company in just a short period of time. Use this tool to your advantage.

In addition as investors sell their stocks in major indexes some of the funds is being invested in these small cap companies, pushing the prices up, making me more money.

Good luck and I wish you profitable investing!

By James McKerr

How Low Will the Stock Markets Go?

noreply@blogger.com (John Efetobor - Stock Trading Strategist) — Thu, 08 Jan 2009 10:42:58 PST

With the demise of Lehman Brothers stock markets around the world have taken another major nosedive, it was not quite another Black Monday however it was not far off. The credit crunch is now in over drive with many people asking just how much lower can and will the stock markets go?

Even today as stocks and shares from around the world continue to plummet there are many people talking up the state of the markets. These will be financial advisers, stock brokers, people who are not wanting to lose face. They do not want to be seen to have given any form of bad of advice. In reality it is not their fault that the markets have fallen in this way and it can be quite difficult to second guess which way the markets are going to go. As long as people are being given full advice as to the fact that stocks can fall as well as rise then there should be no problem. In fact people who are investing on a regular basis rather than in lump sums may well actually do very nicely out of the current climate as the lower the stock markets go the more units or shares your money will buy. This becomes of benefit to you when the stock markets start to rise again.

The main players in the financial sector are fully aware that we may not have seen the worst of this credit crunch as yet and that stock markets could well have much further to fall. Just think for a moment, what would happen if AIG were to fall into administration or a bank in the UK such as HBOS? I hope you are not laughing as this could well happen.

I personally think that we have a long way to go before we do reach the bottom of the market. I am however a speculator and am currently investing on a monthly basis into some very dicey waters, that being the Russian, Indian and Chinese stock markets. Am I brave or rather foolish? Well we will have to wait and see. It is all a bit of a gamble at the end of the day.

By Steve Hill

The Stock Market Drop - How to Make Money in a Tough Economy

noreply@blogger.com (John Efetobor - Stock Trading Strategist) — Thu, 08 Jan 2009 10:41:46 PST

Multiple Trading Approaches

Imagine your friends laughing when you say you made a lot of money as the stock market dropped. Then imagine their faces when you show them your incredible gains.  They won't laugh any more. They'll beg for help.

Everybody loves it when the stock market goes up. Many people panic when it falls. But they don't need to. An American market exists that allows traders to make money regardless of whether stocks are going up or down.

Professional investors know how to hedge their bet. They take precautions because they know the economy will move through various cycles.  What goes up will eventually come down.

The common man and woman are different.  They assume investing is difficult so they don't take time to learn simple methods that might benefit their lifelong effort to get ahead. They throw their money into mutual funds or a 401-K account and hope for the best. This may work when things are going well in the financial markets. In a crisis, this method will be the cause of many a sleepless night.

Every family could use some extra money each month. And it's not a pipe dream, if you are capable of taking simple direction and absorbing new information.

Here's how you to make money when the stock market falls: hedge your bet by trading the mini-sized Dow Jones futures market.  I know what you're thinking.  Futures?!  Isn't that a great way to lose money?  My answer: Have you ever lost money in the stock market?

Today's economic conditions should be a reminder that our money is always at risk.  Yesterday's victories may be tomorrow's defeats.  All the more reason to hedge - always - your most important investments.

The mini-sized Dow Jones electronic market is global and stays open for business throughout the night and into the next day. It closes briefly at the end of each business day, all day Saturday, then opens again late Sunday afternoon. Plenty of time to access and manage your online account.

One significant reason for learning this market is its simplicity. You can learn to trade the market up and down - and it's all legal.  For people who have only traded stocks, it is sometimes difficult to understand how a futures trader can make money when a market drops. But it's true, it can be done, without breaking any laws.

This is not true of some "short selling" that takes place in the stock market. Some rogue brokerages break Securities and Exchange Commission rules and in the process rob good, honest investors. That is not what I'm suggesting. But that illegal practice is precisely why you would be wise to learn how to hedge your stock portfolio with the mini-sized Dow Jones futures market.

There are many tutorials to help you understand how to trade this market.  Google "mini-sized Dow Jones" or "the mini-Dow" and you'll have plenty to choose from.

But don't fall for offers that ask you to pay big bucks for software and platforms you won't need.  I'm not suggesting you day trade - not at first anyway.  So choose a guidebook that is modestly priced and then learn as much as you can from it before buying your next book.

The Chicago Board of Trade and the CME Group Exchange websites offer good, free information to help you understand the basics of trading futures. Take full advantage.

Finally, be a specialist. Master the one market that can do you the most good. The mini-sized Dow Jones stock index will be enormously beneficial if you have long-term or short-term stock investments.  You'll soon realize that by concentrating on one market you don't have to be Warren Buffet to make smart moves.

By Douglas Glenn Clark

Multiple Trading Approaches

noreply@blogger.com (John Efetobor - Stock Trading Strategist) — Thu, 08 Jan 2009 10:39:59 PST

There are literally hundreds of different trading strategies out there. Some have their advantages over others. But no one strategy is perfect. Trading multiple strategies can allow you to help other strategies weaknesses.

For example say you like to trend trade. But during a volatile market when the market is not trending you can focus on day trading, or use some other approach to handle the volatile times. This allows you to switch back and forth between strategies to allow you to make the most at your given time.

You probably want to have a couple different trading strategies out there that you prefer to use. Personally I like the high probability of option selling and the huge short term profit potential of swing trading.

You might like different things in your trading. The point is you probably want to find a couple strategies that work for you and fit your personality.

But be cautious. Trying to trade too many different strategies at once can actually be harmful. If you try to copy every new strategy you find you will never be improving.

Instead try to find just a couple strategies that fit you well and learn them inside and out. This has the advantage of letting you improve those couple strategies over time. The market will teach anyone who is persistent enough to stay at it.

In fact you might even decide to learn to trade just one approach when you first start to trade.  Learning just one approach gives you an advantage by allowing you to focus more on that single strategy. Just using one strategy can allow you find ways to produce a profit more often as well as find out how to cut losses shorter.

The disadvantage to just using one strategy is that you will have to benefit to switch over to another strategy when it is working better. Ultimately the decision of how many trading approaches to use is yours.

By Shaun Rosenberg

An Investment Strategy That Can Make You Millions

noreply@blogger.com (John Efetobor - Stock Trading Strategist) — Thu, 08 Jan 2009 10:38:47 PST

If you are learning how to invest stock all by yourself and doing it all by yourself, then you are going to have to look at some strategies to choose your shares. There is only one thing that you are actually certain about when looking to make money via stocks and shares, and that is the certainty of losing money by choosing your shares by random choice and emotions. In this day and age, there is absolutely no need to guess and pick your shares, we have the resources and data that can lead us to the decision. Sure it will take much longer this way, but you can bet yourself you are going to make much more money that way.

Being able to choose shares that are going to be winners by a gut feeling is an incredibly hard (and probably stupid) thing to do, even the legends of the investment market do not go about this kind of action, so there is absolutely no reason for a new investor to take such a hazardous step. We are in the process of learning how to invest stock, so we would rather set up a bunch of rules and a guide for ourselves to follow each and every time we go to make an investment and achieve a much better set of results at a consistent pace. Here are some key things to consider to no how to invest stock:

Have independent values and goals

For a new investor the market can be a petrifying sight. When you look into a company as a beginner it is very easy to become overloaded with information. So much information can eventually lead to the wrong decisions if we do not follow a persistent game plan that has been put in place.
A clear strategy and planned investment decisions can lead to excellent results. In order to be a successful investor you must stick to your own philosophy and develop it further while you learn how to invest stock.

What strategy should you follow?

When learning how to invest stock you will find that every investor has different investment strategies. Knowing your strategy is good will depend on you building on your strengths and weaknesses through your career. You will most certainly fail a few times before learning your strategy, but remember that in order to become a successful investor you must first learn how to fail. This is key for learning how to invest stock. Make sure you do not get negative through the process either, because failure is just a evil word for learning. That does not mean you just keep failing though, because when you do you must understand what it is you have done wrong. So keep fine-tuning your strategy until you are happy with the results you can produce. This industry is all about educating yourself and being smart.

There are several strategies you can take, it is just a matter of learning how to invest stock for your personal style. Everyone will be different. One method is value investing, which is simply buying the shares when they are cheap. This is a fantastic method because it is almost a known fact that over time share prices will increase. So if you buy at a low price, you are almost telling yourself that you are going to earn loads more in the future.

Another strategy is when you can focus in on one particular sector of the market that you yourself feel comfortable with and know very well. The basic concept is similar to the 80/20 rule. You put in 100% effort into learning about one particular section of the market and become a master in the field, which will provide you with an immediate edge over the other investors. This is hard work but the rewards pay off very well and failure is never really in your way.

A similar method to this in the investment industry is known as 'top down investing'. With this you are picking up on what you think is going to be a massive social trend, and then pick the best companies in that sector. For example back when the DVD player was just an invention, if you had faith in this device and invested into major companies like 'Sony' and 'Samsung', you can be sure that you would of made a killing. Do not worry though, opportunities like these will always come up, that is the importance of educating yourself on how to invest stock.

So make sure while you learn how to invest stock you can find your investment style and strategy, and make sure you stick with it until you perfect it to the maximum for the best results. Good luck with your ventures.

By Ajay Sahota

How to balance your stock portfolio Pt 3

noreply@blogger.com (John Efetobor - Stock Trading Strategist) — Thu, 08 Jan 2009 10:36:17 PST

Have you heard of the saying do not put all your eggs in one basket because you stand to loose all your eggs. The same is true of your stock portfolio. In this final part of the article I want to share with you time tested and proven strategies that will ensure you have a balance stock portfolio.

Do you know that if you understand the art of balancing your stock portfolio; you will be immune from the swings of the economy and of course capital market. Let me quickly add here that you cannot build a balanced stock portfolio overnight; it takes much effort over time, once you have established your balance please don't stop there. You should continually study it in order to keep this balance. It may seem a difficult task, especially when the market is moving upwards or downwards. Otherwise you may expose your portfolio to higher levels of risk than you are willing and able to take

First, let me share with you 5 uncertainties you should watch closely; that is what your balancing art should strive to overcome:

The swings of the economy. 

The swings of the bull and bear sessions. .  

The swings of inflation.  

The swings of the emotions of greed and fear. 

The swings of demand and supply.  

Strategies for balancing your stock portfolio

This strategy is taking into consideration your age profile, the size of your understanding of stock trading skills, your goals, your plans, and your heart. To have a balanced portfolio, you need to spread your choices around these scopes:

 Small-cap – stocks-30% For the purpose of growing your portfolio; when the bull market sets in small cap stocks (value stocks, growth stocks, speculative stocks) with strong fundamentals tends to grow ten times higher than other stocks. Your prospect for profits is higher here.
 Mid-cap-stocks-15% Invest in medium cap companies that are not easily affected by changes in both the economy and capital market. When the bear session creeps in, such stocks are able to cushion any slight depreciation you may encounter with small cap stocks.
 Large-cap- stocks-25% Blue chips stocks guarantee your portfolio of steady dividends and scrip bonus. The size of your portfolio is enlarged over time with your investment in large cap stocks. They are a good compliment to any risk you may be exposed to with small cap stocks.
 REIT (real estate investment trusts) - 15% Channel some of your funds to real estate investments trusts an a complimentary option to your efforts above. Your returns here are steady though not too handsome.
 Foreign stocks - 15% 
 Keep in mind that these strategies and figures are only an illustration, not a recommendation or a must. You must constantly strive to improve your knowledge of stock trading; also work at your effort at fine tuning your portfolio.

Please don’t speed read this article, be sure to bookmark this site, so you can return to it again and again. Many visitors begin their days by spending 15-30 minutes here and report that it helps them become more focused, motivated, and confident. 

How to balance your stock portfolio Pt 2

noreply@blogger.com (John Efetobor - Stock Trading Strategist) — Thu, 08 Jan 2009 10:33:04 PST

Balancing your stock portfolio to me is an interesting game. When you consider and understand the dynamics involved you will appreciate that it is not one of the easiest of chores. There are different shades of opinions and suggestions as to the best strategies to adopt when it comes to balancing your stock portfolio, the intention of this article is not to take side or disagree with any camp but as the theme of the article suggests; to show you practicable, workable and objective tactics you can employ to balance your stock portfolio.

For your stock portfolio to be balance, there are very vital points you have to take into consideration; points in my opinion that really ensures that your balance is balanced.

The first is the dynamics of the human emotion of greed and fear: If you are an objective and realistic investor, you cannot discountenance this powerful influence in the art of balancing your stock portfolio. A swing in either of these emotions can tilt the balance of your stock portfolio. Talking about greed and fear; there are some factors that influence over these emotions you might be employing in your stock decisions.

One of them is the age profile of investors. The way an investor whose age range falls into say 20-45 years will behave, think, react, decide about portfolio choices will be different from an investor whose age bracket falls into 46-64 bracket ditto for an investor whose range bracket falls into say 65 years and above.

Let’s look at their different behaviors when it comes to balancing their stock portfolios:

20-45 years bracket

They are risk tolerant; they are not averse to risk. There are very adventurous in their mindset; they view risky stocks as opportunity for profits. They are given to amassing stock information that is why you will find them at seminars, they buy stock books more, and they have more presence in the internet. Suffice to say they are more voracious or do I say greedier.

46-64 years bracket

They are risk intolerant; they are very critical of opportunities that make themselves available at the capital market, sometimes for good reasons. Investors in this range bracket most times like to sit on the fence; why the 20-45 age bracket are very offensive in their approach to stock balancing, 46-64 age bracket are defensive in their mindset, speed and choices.

65 years and above

Investors in this range bracket depend more on experience to aid them in their approach to balancing their stock portfolio. They are passive and completely averse to risk. I know investors in this bracket who see investing in small cap companies as a death trap; they would rather spread their portfolios around fixed investments (bonds), large cap companies that holds the assurance of dividends and bonus scrip for them.

Please don’t speed read this article, be sure to bookmark this site, so you can return to it again and again. Many visitors begin their days by spending 15-30 minutes here and report that it helps them become more focused, motivated, and confident.

How To Balance Your Stock Portfolio

noreply@blogger.com (John Efetobor - Stock Trading Strategist) — Thu, 08 Jan 2009 10:30:39 PST

Your stock portfolio is a list of stock investment held by an individual or other financial institution. It is an array of different categories of stocks in the list of shares held by an individual or an institutional investor.

Your portfolio as a stock trader is the life blood of your investment career. It shows the direction of your investment journey. Your portfolio should be a mix of stocks that cut across the different kinds of stocks. Your success or failure as a stock trader depends on it. When properly blended can be a great source of joy to you.  Before I get to telling you how to balance your stock portfolio, I want to intimate you with a few advantages of having a balance portfolio.

A balanced stock portfolio will always ensure that you make consistent profits from your investments. This is traceable to the fact that your investment cut across the divide of different shades of shares. You make profit per time irrespective of whichever stock is performing in the larger market. With the wisdom of a balanced stock portfolio, you are able to position yourself in such a way that no matter the swings of the economy, of bears with the bulls, and other swings that are associated with the capital market, you are always in step with the market.

A balance stock portfolio reduces your risk as opposed to making looses in the capital market. The point is the slight loss in a particular stock is cushioned by the gains of your interest in another company.

You can almost beat the stress that is associated with a harsh bear session, especially a prolonged bear session. If you have the combination of stocks that are immune to the swings of the economy and stocks that have very strong growth prospect spiced with stocks that earns steady dividends by the reason of strong fundamentals which immunes them from occasional downward swings of profits of the market generally, you are guaranteed profits per time.

To have a balanced portfolio, your stock-list must comprise-

= Stocks that pays steady dividends and/or bonus scrip

= Stock that is immune to changes in the economy

= Stocks that have high growth prospect, i.e. stocks that sell below their real value

= Low priced stocks that have strong fundamentals that encourage profits.

Understanding how to balance your stock portfolio is an invaluable skill that every serious stock trader should take to heart.

What To Look Out For In A Credible Stockbroking Firm Pt3

noreply@blogger.com (John Efetobor - Stock Trading Strategist) — Thu, 08 Jan 2009 10:25:30 PST

A credible stockbroking firm is pride to any nation. Stockboking firms primarily were designed to be a vital platform upon which investors should be able to create wealth from the capital market. A stockbroking firm worth its salt ought to be where investors should receive information and enlightenment about stock investment. Stock firms are designed to assist their clients pick stocks for investment.

Unfortunately, stockbroking firms have abdicated these important functions. Many firms have been distracted from these primary functions and are now pursuing other activities that have no bearing on their visions and missions. That is why it has become necessary for you to do a thorough research before pitching your tent with any firm.

Guiding Lights To Look Out for Includes:

Customer General Satisfaction: Are clients satisfied with the services they are receiving, in other words, do you observe clients dissatisfaction whenever you are around to do business. It is not difficult to find out, by the time you spend 10-20 minutes in the reception hall of an average firm will tell you a lot. You will either find very satisfied and cheerful customers or disgruntled and nagging clients venting their disappointment because of the inability of the firm to satisfactorily meet their expectations.

Integrity And Honesty: Check the past performance of the firm.
Have the firm been involved with malpractices and untoward activities? The easiest way to know is to find out if the firm has any court cases or litigation. You can ask the stockbroker to give you a list of those who currently do business with it for you to confirm the caliber of clients they are attending to, if you cannot find any credible investor in the list given to you, please think twice. You must also keep an eye on newspaper reports on the firm. You can check the compliance department of the Securities and Exchange Commission (SEC) or by asking the appropriate departments of The Nigerian Stock Exchange.

Reach: You should check how widespread the reach of the stockbroking firm in terms of branches is especially for those who live outside Lagos. Does the firm have wide branch network around the country? Are these branches functional? Crosscheck to confirm. Ensure that you don’t transact business with any agent of the company outside Lagos without confirming his or her status with the head office. If the firm has functional and vibrant network of branches, It only shows how prosperous the firm is don’t you think?

Competent Research Department: How sound is the research department of the stockbroking firm you are patronizing. Remember, your stockbroking firm is supposed to be your backbone in terms of stock picks. For you to benefit from the huge profits that are available in the stock market the stockbroking firm must have a sound research department.

What is the qualification and competence of those running the research department of the firm, how many people have benefited from their recommendations in the past? Are they competent in stocks analysis?

If from your investigations, you have any reason or reasons to doubt the credibility of the stockbroking firm, I suggest you look somewhere else for your peace of mind as far as investing is concerned.

What To Look Out For In A Credible Stockbroking Firm Pt 2

noreply@blogger.com (John Efetobor - Stock Trading Strategist) — Thu, 08 Jan 2009 10:23:30 PST

Presently, there have been serious revolutionary and audacious changes that has taken place in the capital market by the regulatory authorities to protect investors and ensure that there is a level playing ground for investors to do business, but despite all of that, it is incumbent upon investors to do a thorough due diligence before pitching your tent with any stockbroking firm, it is this important subject that this article sets out to address. I am optimistic that the information. You’ll get from this article will open your eyes to be able to effectively filter the charlatans and fraudulent operators in our market from the genuine ones.

Guiding Lights To Look Out for Includes:
Status Of The Operators: Find out who are the directors of the firm and their backgrounds, this can be done online at the appropriate channels. In fact, confirm if the officers of the company are registered with the Chartered Institute of Stockbrokers (CIA). Find out if the management staffs are qualified and well trained to handle the responsibility of a stockbroking firm. How many duly licensed and qualified stockbrokers are trading for the company?

Vision Of The Firm: Every responsible stockbroking firm will normally have at a very visible position especially at the reception hall it’s vision Read through it to ensure if the firm is vision oriented and purpose driven., see to it that the vision of the firm aligns with your expectations. Ask for the profiles of the company to enable you assess the mission statement and possibly the core values of the company. Don’t be shocked to find out that some stockbroking firm don’t know where they going and don’t understand why they are in business.

Solvency: Find out the ability of the stockbroking firm to meet maturing obligations as they come due. Once in a while regulatory authorities may prevail on firms to beef up their operating capital base to meet up with the times. Find out if the firm can meet such emergencies. Find out the firms forthrightness in meeting financial claims of its clients, some firms have been found to divert checks meant for clients to themselves.

Dear investor. ensure you find out every important details about the stockbroking firm you intend to do business with, this can save you avoidable setback.

Please don’t speed read this article, be sure to bookmark this site, so you can return to it again and again. Many visitors begin their days by spending 15-30 minutes here and report that it helps them become more focused, motivated, and confident. 

What To Look Out For In A Credible Stockbroking Firm Pt1

noreply@blogger.com (John Efetobor - Stock Trading Strategist) — Thu, 08 Jan 2009 10:21:07 PST

Stockbrokers are vital links in the chain of our investment pursuit. The way trading and investment is designed, an individual cannot transact business direct with the Nigerian Stock exchange except through a stockbroking firm, so that makes stockbroking firms very important as far as investment is concerned.

Unfortunately, many stock broking firms nay, stockbrokers have taken undue advantage of unsuspecting and sometimes gullible investors. There is no doubt that the stock market has generated so much excitement on account of the more than normal returns on investment for players in it. This has attracted many investors in to the capital market, many of them unenlightened. Expectedly, the market has attracted stockbrokers who take advantage of ignorant investors. There have been cases of stockbrokers and fund managers that have ran off with investors funds.

This article is divided into THREE parts. Each complementing and synergizing to produce maximum results for you; Let's zoom our lense on the guiding lights to look out for which lncludes:

Updated Technology: find out if the firm has a vibrant and functional customer-friendly. and updated Website with vital facilities? For instance, can you check for current price list of equities? Can you get the prospectus and registration forms of important companies coming to the Nigerian Stock Exchange to raise funds? Can you get important company news from such website? Is the website updated regularly with current information? Can you transact business online without having to physically visit the firm? Can you check your account online? Is there any kind of alert incases of emergencies or investment opportunities that always make themselves available everyday?

Functional Customer Service: The customer service of any stockbroking in my opinion is a very vital link between the firm on the one side and the clients on the other side. As an investor you need to be concerned at how swift the customer service of the firm you you intend to deal with responds to your enquiries in an effective, courteous and matured manner. Important signals you want to look our for includes: How responsive is the customer service? does the customer service evade or give excuses to enquiries? Are they responsive to calls? Find the attitude of the customer service to small investors in comparison to big investors.

Legal Status: Please find out if the firm is currently registered and licensed by the regulatory authorities like the Nigerian Stock Exchange and Securities and Exchange Commission. Every legitimate stock broking firm operating in the capital market is licensed by the NSE and SEC. Do a further due diligence by going to the website of the Nigerian stock Exchange or the Stock Exchange facts book to confirm if the firm is currently licensed and recognized. Furthermore, ensure you find out if the firm is registered by Corporate Affairs commission.

Dear investor please you cannot afford to hinge your investment the assumption that because a firm has a beautiful with excited and zealous staffs can automatically translate to credibility. Many a investor have been brutally deprived of their hard earned cash because of this oversight.

Stock Trading- Red Flags To Look Out For Before You Sell

noreply@blogger.com (John Efetobor - Stock Trading Strategist) — Thu, 08 Jan 2009 10:18:26 PST

© John Efetobor. All Rights Reserved

The primary motivation at the back of every investors mind for buying any stock is profit, whether you choose to sell immediately or wait for a longer time before you sell to access your profit is a matter of choice, a decision I think you should take responsibility for instead of leaving it in the hands of your broker.

There are clues ever present in the capital market that tells you when to sell your stock, when fully understood can save you from loses and can also make you get the benefits for which sake you invested your money in the first place. You have to constantly be on the look out for these red flags or signs that remind you it is high time you bail out of certain stocks in your portfolio, 

Let's get you started, shall we!

SELL WHEN YOU REACH YOUR TARGET PRICE

Before you buy any stock, you must settle in your mind by reason of sound facts available to you a target price that you intend to sell your stock for an appreciable return. When you reach your projected price, once you reach your objective that is the best and most reliable time to sell.

SELL WHEN YOU OBSERVE FUNDAMENTAL CHANGES

Changes that affect the fundamentals of a company must be taken very seriously. When you observe that the fundamental of a company is weakening or depreciating in terms of profit capacity, when a company profit potential has reached its peak and it starts declining is time to consider offloading your shares in such a company.

SELL AFTER THE CLOSURE OF REGISTRAR

If you are a stock trader, one who buys and sells stock actively in short durations; you might consider selling after the closure of registrar. If your goal of dividends and possibly bonus scrip in a company has been achieved, in other words, you bought into a stock because you want to avail yourself of dividends and possibly bonus, after closure date of registrar is a good time to sell, because other stock traders like you will also be selling which can cause the price of the stock to rally down.

The bottom line of stock trading is acquainting you with the appropriate time to buy a stock and the most suited time to sell, that in my humble opinion is the crux of stocks trading.

Stock Trading- 5 Kinds Of Investors

noreply@blogger.com (John Efetobor - Stock Trading Strategist) — Thu, 08 Jan 2009 10:14:57 PST

© John Efetobor. All Rights Reserved

Investing in stocks is an art that has gained tremendous acceptance in recent years globally. Today, many a investors do trading online employing the services of stockbrokers via the internet, there are those that depend on online robots programmed to buy and sell stocks depending on trends per time. A vast majority of investors do offline investing which is more accepted, most investors are at home with offline investing since they are able to monitor almost directly their portfolio with their stockbrokers.

Generally, whether you do online or offline stocks trading, investors fall into five categories and they see stock investing from different perspective which I shall be highlighting in the course of this article. So let’s get you started, shall we?

SENTIMENT DRIVEN INVESTORS

The first kind of investor that form the bulk of the investing public are sentiment driven stock investors. These are men and women who depend on rumors, hype, manipulated articles of investment stock reports on some investment newspapers and magazines relating to specific stocks and the prediction of so-called experts for their investment choices.

EMOTION DRIVEN INVESTORS

Emotion driven investors are those who are emotionally attached to:

1. Certain stocks because they made profits from such previously

2. Certain stocks because they fall into a sub-sector or industry for which they have soft spot for.

3. Certain stocks because they have fallen in love with the products or services of the company.

4. Certain stocks because of their temperament and beliefs.

TRADITIONAL DRIVEN INVESTORS

Traditional driven investors are folks whose minds have been moulded by long years of outdated trading patterns that are no longer relevant in the present times of jet-age information. They refuse to accept modern sophisticated stock trading trends.

KNOWLEDGE DRIVEN INVESTORS

Knowledge driven investors do Intelligent Stock Trading. They are those who by reason of knowledge and understanding gained by consistent personal education in stock trading trends have been able to reduce risk to the barest minimum. Knowledge driven investors take responsibility for their trading actions and decisions; they don’t entirely leave their stock picking choices in the hands of stockbrokers. They have a direct input in the direction of their portfolio; they see the input of a stockbroker and analyst as complementary rather than authoritative.

In conclusion, I submit that with what is obtainable worldwide as far as stock trading is concerned, it will be of tremendous benefit to you, if you can spare some time and money to invest first in stock trading education, because in the long run, you shall be better off for it.

Stock Trading- 5 Kinds Of Stocks You Must Understand

noreply@blogger.com (John Efetobor - Stock Trading Strategist) — Thu, 08 Jan 2009 10:12:25 PST

© John Efetobor. All Rights Reserved

Basically there are two groups of stocks, preferred and common stocks. Preferred stocks are comparable to bonds because their returns are fixed. Preferred shareholders get first dibs on dividends in good times and in assets if peradventure the company goes under. In other words, the risk of a preferred shareholder is limited, they are mainly interested in dividends. Very few companies issue preferred stock.

When investors talk about investing in stocks, they are referring to common stocks. The vast majority of investors are found in this class, common stockholders take on a few dimension of risk compared to preferred shareholders though common share holders command more voting power at annual general meetings.

The five kinds of stock in discussion fall under common stocks. An understanding of these stocks will greatly enhance your stock trading prospect. I don’t know your goal when it comes to investing, one thing I know however is that you will be able to find one among the five stocks that fits your goal and temperament.

GROWTH STOCKS: Are stocks with great potentials for growth, they grow faster than the economy and sometimes than the stock market itself more often than not. The risk level is minimal; investors are attracted to it because they have good earning growth over the long run. Investors in this stock know that over the long term their portfolio is secured.

INCOME STOCKS

Investors who buy into this kind of stocks do so because it doles out a large portion of its profits. Income stocks pay as much as 60% to 80% to investors as dividends compared to other stocks. Income stocks are almost immune to changes in the market because investors are confident that they will receive dividends.

BLUE CHIP STOCKS

Derives its name from the poker game, the blue chips usually have the highest value. They are sector or industry leaders. They are big companies that have been around for a long time, they have strong fundamentals. They pay steady dividends and most times bonus scrip. Though their prices don’t grow very much, they are good options for retirement portfolios; they are best suited for the long term.

VALUE STOCKS

Are under priced stocks that have great potential for growth; look at it this way, value stocks sell below their real value which makes them very attractive. If you compare the low price of value stocks to its earnings, you will understand why stock traders are attracted to it. They are good options for investors interested in growing their portfolio.

RECURRING STOCKS

These are stocks whose performances are affected by the swings of the economy. When the economy goes up or down a recurring stock responds likewise. Their performance depends on the dictates of the economy; therefore, the best time to invest in recurring stocks is when the economy is performing well.

Your investment options ultimately boils down to you knowing what your goals are in the first place, that way you can hold a combination of these stocks in your portfolio for the purpose of balance.

Factors responsible for bear market

noreply@blogger.com (John Efetobor - Stock Trading Strategist) — Thu, 08 Jan 2009 10:09:12 PST

© John Efetobor. All Rights Reserved

The bear market is the interval in the capital market characterized by falling prices for securities. It is a period that separates the men from the boys in the art of stock trading; it is the season when investors who are unsure of the reason why they hold a stock sell out of panic. It is a period when most of the prognosis of stockbrokers and experts are thrown into the winds and are torn into shreds. I am amazed at the way most investors are taken unawares by the bears; it ought not to be, because there are always loud signs that always herald a bearish season, unfortunately, only the seasoned stock traders doing Intelligent Stock Trading. that are able to see them afar off.

I want to show you warning signs you should look out for, that should prepare you before the bear market sets in, remember there will always be a bull and bear market as long as the forces of demand and supply continue in the capital market.

Massive profit taking

Profit taking is the name of the game; stock traders generally look forward to selling off their stocks once their objective for buying into a stock is achieved, but when this action is carried out en masse it can trigger off a bearish session. During the bull market stock traders take advantage to sell of their stocks, the massive shedding will eventually have its toll, so watch out when you observe there is massive effort by stock traders to sell their stocks, know the bear market will come knocking.

Active and prolong primary market activities

The primary market is the other half of the secondary market, both markets function in diverse ways. The primary market is where the vast majority of investors do business, the reason is not farfetched; it is an all comers market. For this reason whenever there is prolong activities in the primary market, in other word, if there are so many initial public offerings and private offerings, investors will channel their funds to the primary, sometimes they may even withdraw their funds, the effect there will be more sellers in the secondary in the secondary market than buyers, supply will outperform demand thereby driving down the prices of shares.

Massive panic selling by emotion driven investors

One of the feature of a bearish a bearish market, is the reaction of emotion and sentiment driven investors. The bearish season over the years from my experience analyzing and trading stocks have always beaten uninformed investors who have not imbibe the entry and exit strategy that I know has most of the time protected wise and seasoned stock traders. When the vast majority observes that the prices of stocks are rallying down they react by selling off their which affects the stability of the secondary market.

The bear market when fully understood can be a great opportunity for wise and seasoned investors to create wealth. Remember during the bear market, you can easily find stocks which had been hitherto scarce and expensive available and affordable. During the bearish market, you will find securities with very sound fundamentals selling below their real value, which means if had prepare yourself in anticipation of a bear market by your understanding of the activities discussed above, you could be your way to making awesome profits.

HOW TO CHOOSE HOT IPO’s

noreply@blogger.com (John Efetobor - Stock Trading Strategist) — Thu, 08 Jan 2009 10:06:20 PST

A limited liability company that desires to expand the frontiers of its business is permitted by law to come to the public to raise funds. They can do so by declaring an initial public offering. The investing public is encouraged to buy shares of the company depending on allotted provisions of the company. However, it is incumbent on you to do your due diligence bearing on the claims of the company in its prospectus. To be able to discern the viability of the company, please take into consideration the following tips:

Tip 1

What is the purpose of invested funds? Find out what the company intends to do with the funds raised? Will the company be embarking on developmental projects, expanding the frontiers [Branches] of the company, is the fund going for procurement of equipments and personnel development, or is it going to be used to service debts arising from bad company policy/strategy, Take note.

Tip 2

Is the company indebted, This is very important, find out if the company is solvent? The financial position of the company will be reflected in the balance sheet, if the debt of the company is much, It can really turn out to be a serious problem for investors, since their funds can end up being channeled to servicing debts instead of using it for what it was proposed for.

Tip 3

Low share price. Note that if the offer price of a stock is low and the company has good fundamentals and technical strengths, investors will be at advantage. First, you can buy large quantity of the shares. Second, capital appreciation can double or triple your returns on investment.

Tip 4

What is the earning potential of the company? The financial earnings projections of the company speaks volumes of its ability to give high returns to investors. You must assess the earning potentials of the company vis-à-vis the bonus potentials.

Tip 5

Financial Summary Report. This shows the company’s financial history and growth rate for previous years. Things to look out for includes Gross earnings, Profit before Tax, Profit After Tax, Share capital net assets or total assets, Dividends possibilities, Earning Per share and per earning to ratio.

Tip 6

Pedigree of the company. Is it a brand or does it has the prospect of a brand? What is the antecedent of the company in terms of past performance? You must note the changes and developmental phases, does it have a track record of previous excellent performance.

Tip 7

Board Members. Check out the caliber of people on the board of the company, what is their pedigree, are there seasoned and brilliant administrators on the board, men who are versed in the art of running corporations. Also find out if the board members hold substantial stake in the company because that will compel them to sit up to manage the organization very well, because they won’t want to jeopardize their stake in the company.

Tip 8

Legal Cases. You must investigate if the company has court cases to settle, because it can lead to closure, liquidation or outright bankruptcy. Any legal proceeding in a court; can hinder the progress of the company.

Adhering to these tips will greatly enhance your possibilities, the next time you receive that prospectus, ensure you take time to browse through with the understanding of a prepared stock’s trader.

Notice - You are allowed to publish this article in its entirety provided that author's name, bio and website links must remain intact, active and included with every reproduction

Stock Trading- 5 Kinds Of Investors

noreply@blogger.com (John Efetobor - Stock Trading Strategist) — Tue, 05 Aug 2008 11:42:55 PDT

© John Efetobor. All Rights Reserved http://stocktradingrevolution.blogspot.com

Investing in stocks is an art that has gained tremendous acceptance in recent years globally. Today, many a investors do trading online employing the services of stockbrokers via the internet, there are those that depend on online robots programmed to buy and sell stocks depending on trends per time. A vast majority of investors do offline investing which is more accepted, most investors are at home with offline investing since they are able to monitor almost directly their portfolio with their stockbrokers.

Generally, whether you do online or offline stocks trading, investors fall into five categories and they see stock investing from different perspective which I shall be highlighting in the course of this article. So let’s get you started, shall we?

SENTIMENT DRIVEN INVESTORS

The first kind of investor that form the bulk of the investing public are sentiment driven stock investors. These are men and women who depend on rumors, hype, manipulated articles of investment stock reports on some investment newspapers and magazines relating to specific stocks and the prediction of so-called experts for their investment choices.

EMOTION DRIVEN INVESTORS

Emotion driven investors are those who are emotionally attached to:

1. Certain stocks because they made profits from such previously

2. Certain stocks because they fall into a sub-sector or industry for which they have soft spot for.

3. Certain stocks because they have fallen in love with the products or services of the company.

4. Certain stocks because of their temperament and beliefs.

TRADITIONAL DRIVEN INVESTORS

Traditional driven investors are folks whose minds have been moulded by long years of outdated trading patterns that are no longer relevant in the present times of jet-age information. They refuse to accept modern sophisticated stock trading trends.

KNOWLEDGE DRIVEN INVESTORS

Knowledge driven investors Intelligent Stock Trading. They are those who by reason of knowledge and understanding gained by consistent personal education in stock trading trends have been able to reduce risk to the barest minimum. Knowledge driven investors take responsibility for their trading actions and decisions; they don’t entirely leave their stock picking choices in the hands of stockbrokers, because they recognise that courses like Market Master Trading Course. have proven invaluable and have equiped them to be able to analyze and pick stocks that sells. They have a direct input in the direction of their portfolio; they see the input of a stockbroker and analyst as complementary rather than authoritative.

In conclusion, I submit that with what is obtainable worldwide as far as stock trading is concerned, it will be of tremendous benefit to you, if you can spare some time and money to invest first in stock trading education, because in the long run, you shall be better off for it.

Notice - You are allowed to publish this article in its entirety provided that author's name, bio and website links must remain intact, active and included with every reproduction.

Stock Trading- 6 Keys That Influences Investors Sentiments Globally

noreply@blogger.com (John Efetobor - Stock Trading Strategist) — Thu, 08 Jan 2009 10:01:35 PST

© John Efetobor. All Rights Reserved

It is important dear stock investor that you understand that irrespective of what stock trading experts have put forward as the sure-fire reasons responsible for picking hot stock’s, one foolproof truth that you need to understand, is that it is investor’s sentiment towards a stock that ultimately drives the price of a stock either up or down.

Therefore, it is imperative that you should familiarize yourself with this great but mostly overlooked fact that has a great influence on the direction to which investors tilt their focus. If investors are favorably disposed towards a stock, they will generally patronise a company's stock, conversely, they will demonstrate indifference to such a stock if their sentimental drift says otherwise.

1. One of the principal reasons my friend you should not forget, that attract
investors towards a particular stock, is that investors always react favorably to companies that has consistently given increased dividend and bonus to their shareholders.

2. When a company’s product or service is widely accepted by consumers,
investors believe that such a company will always produce high returns for investor’s
portfolio.

3. Whenever an institutional investor invests into a company, investors' interest are awakened because they think that the price of such a company most likely will appreciate, so there will be rush to buy the shares of such a company.

4. High earning per share has always attracted the attention of investors. When you discover a company’s profit after tax standard is higher than the corresponding previous year, know that investors will react positively; the effect is that the price of the stock will rally upward.

5. When a well respected expert predicts or picks a stock for his list, the word
goes round quickly; people begin to buy more of that stock which invariably jerks up the price of the stock. Don’t you ever undermine the power of word of mouth advertisement, its influence is awesome.

6. The announcement of the latest trading style or trading software has a great influence on the sentiments of investors. The way investor's sentiment works is amazing, when information gets to forums and communities online, or an investment newspaper carries a bold headline like... Stock Trading Robot Capable of Cranking High Returns to Your Bank Account... as its headline, investors reacts the way ants are drawn to sugar.

Understanding the underlying reasons responsible for the direction or flow of the
sentiment of investors is a great and valuable asset that you must cultivate; keeping tabs on the factors that influences the sentiment of investors, will be an invaluable tool that will always assist you to enlarge your portfolio.

Stock Trading- Tips On How To Avoid Losses Trading Stocks

noreply@blogger.com (John Efetobor - Stock Trading Strategist) — Thu, 08 Jan 2009 09:58:02 PST

© John Efetobor. All Rights Reserved

There is one undisputed law that every rational investor, stockbroker and expert analyst globally have all accepted, and that is price of stocks rises and falls depending on the prevailing indices per time. By that I mean that stock price rises and falls every now and then due to market activities and forces that take place within and outside of the capital market.

If this is true, then every investor must be abreast with certain undercurrent negative and sometimes very dangerous human emotions that lurks around ever ready to pounce on unsuspecting investors, leaving behind bitter tales of woes in the mouth of it’s victim, Intelligent Stock Trading. can help you avoid loses. Let’s begin to itemize these danger signals or red flags if you like.

IGNORANCE.

Research have shown that when an investor is ignorant of basic stock trading skills that affects the swings of the prices of shares on the stock exchange, they always end up being slaughtered as chickens in the chicken farm. If you are interested in improving your stock trading skills, try reading Secrets Of Successful Traders and How and how they succeeded in yheir career.

ENTRY AND EXIT SKILLS

When an investor is ignorant of the best time to buy a stock and the best time to exit from such stock, they end up having their fingers burnt severely. Per time, every stock has its period of performing well, you must find out the suitable and fitting time to invest in a stock. Every stock has a peak price when equilibrium is achieved; at that point the rising of stock prices begins to dip. How do you know, the stock at this point ceases to gain the minimum 5% capital daily appreciation. If you are a trader, this is the best time to bail out.

GREED

Every investor including you that is reading this write-up is like the proverbial Oliver Twist, we always want more whenever we make profits from our trading, and it is a human emotional weakness every investor must watch. Let me paint a picture to drive home my point.Mr. Smith (imaginary) buys Fidelity shares for $4 and the price rose to $12. The increase came sooner than his projected time and price, he had projected $10, but because of the emotion called greed, he defied the wise counsel of his broker cum analyst to sell at $10, without understanding the factors that was driving up the price of the stock, he thought the upward rise will continue to $20, unknown to him the stock had reached its equilibrium at $14 and suddenly began to dip at a frightening pace down to $2. Please remember you cannot always beat the market.

OVER DEPENDENCE ON STOCKBROKERS

Stockbrokers are fantastic people, in my world; the importance of a stockbrokers cannot be overemphasized. My organization work hand in hand with them.There are definitely stockbrokers that knows their onions; nevertheless I submit that to overly depend on them, can sometimes be detrimental to the health of your portfolio. Some stockbrokers will offload their ignorance, fears and burden on you if they notice you’re equally ignorant of stocks investment skills.

In this information age, it will be to your immense benefit, if you can sacrifice time and cash to posses useful stock informational materials that have the capacity to turn things around for you.