If you’re looking to take a risk, Terex (TEX) is a great opportunity for a beginner portfolio to capitalize on a turnaround stock. Terex produces engineering and construction machinery in the infrastructure equipment sector. During the economic downturn, construction companies have performed poorly, and Terex is no exception. In fact, they project a loss for 2010.

However, investors looking for quality value stocks in their portfolios should look no further. The company still has solid financials. And with the construction industry forcast to rebound in 2011, Terex expects to turn a profit.

This is a growth stock that should prove profitable over the next 5 years, with good potential at performing better than its competitors. There is risk of loss in all stock trading and investing. Commissions and fees vary per individual.

To see other great stock picks, check out my sample beginner’s stock portfolio.

Wells Fargo (WFC): Typically, when Warren Buffet picks a company for his ‘favorites’ list, you pay attention. This particular financial institution is one such favorite. Plus, shares are relatively inexpensive for as well-funded as this mega-bank is. If there were a financial stock to invest in, Wells Fargo is the one. The price is right, given its P/E ratio.

Round out your portfolio by adding a quality financial company like Wells Fargo to your portfolio.

This is a growth stock that should prove profitable over the next 5 years, with good potential at performing better than its competitors. There is risk of loss in all stock trading and investing. Commissions and fees vary per individual.

To see other great stock picks, check out my sample beginner’s stock portfolio.

Does the buzz about Apple (AAPL) ever seem to end? I didn’t think so.

Despite a wavering price (most recently due to the iPhone 4′s antenna glitches), Apple is still a strong candidate for a beginner stock portfolio. Their earnings are amazing and the fact that they have surpassed Microsoft (MSFT) in market capitalization really bodes well for Apple. Their share price does look expensive, but that’s certainly a reflection on their power in the industry.

If Apple continues to see big success from the iPad and iPhone, you can bet that the continued profitability will show up accordingly in their stock price.

This is a growth stock that should prove profitable for the next 3 to 5 years, with good potential at performing better than its competitors. There is risk of loss in all stock trading and investing. Commissions and fees vary per individual.

To see other great stock picks, check out my sample beginner’s stock portfolio.

Why does stock trading success seem so elusive to new stock traders? With so many aspects of the stock market to worry about, it’s no wonder that people get lost trying to figure out what to do. It doesn’t have to be that difficult, anymore. In just 7 simple steps, my latest special report explains how the professionals trade and what steps you need to take to get yourself to the next level.

Do you have trouble making regular profits from your trading? Are you frustrated because you find that ‘stopping your losses short’ or ‘letting your profits ride’ is actually harder than it sounds? You bet it’s harder than it sounds! What you need is a step-by-step walkthrough of the professional trading process. Seeing everything in a simple, in-depth overview will clear the fog that new traders get stuck in.

Your solution is a mere 12 pages long, so you won’t waste hours reading. This is information that can be applied right after you finish. To help you achieve success even faster, you also get a checklist so that you can take what you’ve learned and put it into action, immediately. Keeping track of what you’ve accomplished and what you’ll work on next is half the battle.

You will trade like a professional after you learn:

• How staying calm in a market nosedive leads to more profit
• How to clean house by simply setting up and tweaking your chart
• How to lock in your profits and then make them work for you
• How to develop your own strategy for stock trading success

…and there’s much more! You’ll even receive a notification every time I update the information. You get all updates free, for life.

You’re ready to advance, so why wait? This single report will accelerate you toward the financial freedom that you now deserve.

To get started, simply visit the Stock Trading Success page and claim your copy right now!

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Having a trading plan is a major step in trading logically and profitably. You’ve finally found a trading strategy that works for you. Now, you need to make sure that system continues to work for you. You will find that your trading plan will need to be revised from time-to-time. Thankfully, keeping your system current isn’t nearly as difficult as you might think. Here are some reasons why you’ll want to spend some time revising.

As traders find and revise their own trading plans, they find new indicator signals to base their trades on. As that happens, your indicators may become less effective at predicting your entry and exit points. Over time, that effectiveness can become weaker and weaker. If that happens, a change or tweak to your system may be needed. Your indicators need to give you clear signals, so your trades are as profitable as you can make them.

Your trading strategy can stop working as more and more of the puzzle pieces in your system lose their effectiveness. It can be your chart timeframe, indicators, or even your profit and stop levels. Failing to address this issue is like leaving profit on the table. You may also simply be changing your trading style, in which case, a review and revision of the trading plan might be in order.

Even if your signals are still working for you, it never hurts to revise. After all, it’s likely that you could stumble on something even more effective than what you currently have. Even a simple period change on a moving average could help you time your trades better. If the goal is to get better and getting better means more profit, why not take a look at what parts of your system you could modify?

You can now see why it’s important to modify your trading plan. Making even subtle changes to your strategy involves honing your skills as a trader. Keeping things fresh not only improves your trading results, but it also improves your knowledge. It’s almost like going back to school for a refresher course. Stay sharp by keeping your trading plan and strategy in top-notch form.

Now learn how to properly revise your trading strategy.

Protecting your profits on the stock market is paramount to your success. As a trader, your goal is to make money, right? Protecting that money is part of the game, too. I know it may sound boring, but just an extra step or two in your trading process can mean all the difference. Take a look at why you need protection.

The stock market is prone to emotional swings (panic selling, etc.). Even though you’ve mastered your emotions, that doesn’t mean that everyone else has. Because of this, the direction of the market can change in an instant. One piece of news can quickly reverse things. If you don’t have the proper profit and loss levels built in, you may not get out of a stock when you need to. Profit protection from these wild and often unexpected swings can make or break your portfolio.

In the same vein, do you still trade while on vacation? My guess is no. Just because you’re out of town, doesn’t mean a stock will wait for your return. It won’t continue going in the same direction until you get back. If something happens to the stock, how are you going to make sure you can exit a trade with minimal (if any) interaction on your part? Adding profit and loss protection can ensure that trades are automatically executed while you’re away, guaranteeing you don’t miss out on any big moves.

I’m sure you have long-term financial goals. Are you buying a house, saving for your child’s college, or simply for retirement? What happens if you make a mistake, and that portfolio takes a devastating hit? With a protection plan in place, you would have had money in reserve to start over, if needed, or simply have it in other locations to minimize the loss. In any case, long-term financial goals are probably the most important reason that you need to evaluate your trading safety nets.

We’ve learned today why it’s important to protect your profits. Not doing so can be catastrophic on many different levels. Whether it’s a volatile stock market, your own planned vacation, or saving for the future, there is no excuse not to protect what you’re working so hard for. Simply take the time to find what protection strategy works for you, and put it into action.

Now learn how to develop your profit protection strategy.

What’s a stock chart without an indicator or two? It seems you never see a chart without some form of indicator along for the ride. Though it may not make immediate sense, you really should expect to see at least one indicator on every chart you look at. What’s the point? Let’s dive into the explanation.

Chart indicators can help you make sense of what’s going on with a particular stock. For example, when a stock’s price is swinging wildly, that volatility can be confusing. However, adding the right indicator or two will give you another reference point to help you make a better decision. Moving average lines can help you find out if the volatility has interrupted or reversed the stock’s trend, even though it might not be immediately clear by the price alone.

If you need to identify or clarify a stock’s direction or pattern that it’s making, you’ll find indicators helpful there, too. A stock may be heading down or sideways, but a Money Flow indicator might suggest that more money is flowing into the stock. It’d be wise to buy in, as the direction may turn upward very soon.

Additionally, chart indicators can assist in predicting tops and bottoms on a chart. Knowing this information can help you time your entry and exit. This type of data is invaluable because knowing the right entry and exit points can yield you a much better profit in a shorter amount of time. Price action, alone, just can’t do that for you.

As you get proficient at matching chart indicators with your trading style, you’ll gain a time-boost, too. Not only will your chart reading become better, but you will also be able to read the chart faster! Being able to tell if a stock is worth investing in at-a-glance is very beneficial. This is especially true if you get into day trading, where quick decisions are a must!

Adding indicators to a stock chart can be very helpful in developing your trading strategy and making you a better trader, overall. The extra pieces of information these indicators provide can help you make sense of the chart, when the price action gets a little confusing. Pick 2 or 3 indicators that work best for you and let them guide you toward more profit.

Now find out how to use chart indicators properly.

Online stock trading is very easy, however, many people are confused when trying to pick out the very best online stock trading broker. What you should know is that there is no best broker out there. You can only do your own research and find the one that fits your needs. Read on for three guidelines to follow.

The first thing you should investigate is the online stock broker’s list of services. How does it compare to what you want to do? You certainly do not want to pick a broker that only offers stock trading, when you may want to also open an options or IRA account. Perhaps you may want to investigate foreign exchange trading in the future, as well. Make sure that the broker offers everything that you will need.

The second thing is to take a look at the commissions that the broker charges. Make sure that they are affordable and that you understand whether you pay them per transaction or per round-trip. Some brokers actually offer discounted rates if you trade a minimum number of times per month or quarter. Others will offer discounted rates if your portfolio value is kept above a certain minimum. Make sure the prices are affordable, as you’ll be paying commissions every time you trade.

The final thing you should investigate is the online stock broker’s customer service. Do they have multiple ways of contacting them? This can include a toll-free phone number, instant message, and email contact forms. You also want to make sure their hours suit your schedule, too. At least one form of 24-hour support is desirable.

After considering these three factors, you should have just a couple of online stock brokers left. At this point, any one of them should serve you well. You have done your research so you have eliminated any possible problems. Pull up their website and check out the site’s layout. Pick whichever is easier for you to navigate and apply for your account. Congratulations, you’re ready to trade!

For more stock trading tips, sign up for the free newsletter.

Are you in need of a paper trading worksheet? I thought so. Whether you’ve never traded a single stock in your life or an advanced day trader, you can benefit from the use of a paper trading worksheet. It can track all of your stocks, buy and sell dates, entry and exit prices, and can even show you a running total of your profits. You’re in luck, because it’s finally available!

I’ve been using this for almost as long as I’ve been trading, and I couldn’t live without it. Being able to see that status of my portfolio (past and present) at a glance really helps me keep my trading goals organized. Not using a trading worksheet in the beginning was one of my biggest stock trading mistakes I’ve ever made. Over the years, I’ve tweaked it to track more and more information and I feel that it’s so important, I’m giving it to you. I even have a couple of instructional walk-through video so you can watch, over my shoulder, exactly how I use it.

The real bonus with this powerful worksheet, is that there’s no need to print it (although you can do that, too). This is set up as a spreadsheet so that you only type a few pieces of information, and your computer calculates everything else for you! Use it as a digital index of your entire stock trading portfolio. There’s no need to worry about keeping a calculator and an eraser nearby, I’ve got that taken care of for you.

I’ve just emailed information on how to get this paper trading worksheet to all of my subscribers. If you haven’t subscribed yet, you can do so at the top-right of this blog, or when you leave a comment on this post.

Let me know how the using this paper trading worksheet has helped you, down in the comments!

Did the most recent change in the stock market trend take you by surprise? If you had been reading my posts, recently, you would have seen me mention the old stock market saying:

Sell in May and go away…

While we can’t count on a downturn every summer, the coming of May should have made you reevaluate your positions. You would be in a better position now, if you had done so. My guess is that most of your current stocks have lost a few percent, due to the change in the broad stock market trend. I know it’s difficult to stay true to your trading plan, when the markets get this volatile. Did you end up selling because of the drop? Are you still holding?

Now, I’m not here to say “I told you so,” but if anything, this should serve as a warning. Yes, economic stability is still questionable, at best. Yes, the charts showed that we were due for a correction. And yes, we’re still in the month of May. Obviously, this was not purely the result of the typical doom and gloom that May brings, but I have no doubt it played a part in this stock market trend reversal.

How long will it last? That’s a good question. If you’re into Elliott Wave Theory (which I highly recommend you learn about), the latest buzz indicates that this will be over fairly quickly. Predictions suggest that the market will rally from June through late Summer, before turning bearish once again in the Fall. While I cannot guess at how powerful the stock market trend will be during the Summer and Fall, I do feel that the current down trend will be over within the next couple of weeks.

How long do you think this will last? Let me know what your indicators tell you, in the comments.

Well, here we are one week later and I’ve decided to close the stock trading survey. As you can see from that survey link, you can no longer give your feedback to my questions.

Now, let me say ‘thank you’ to all of those who gave their feedback. I did my best to make the survey as quick and concise as I could, while still collecting a good deal of insight. I got quite a few responses and I had a few, distinct  paths. However, there are a couple of common themes that will greatly help me choose a direction and timeline for this blog. As you read this, I’m working on great content to help you along your stock trading journey. While the new blog engine fires up, enjoy your reward for completing the stock trading survey. I know it was well worth those 3 minutes spent.

For those of you who didn’t fill out the survey, you can still let me know what you’d like to see here at Powerful Stock Tips. Just add a comment to this post and I’ll take your input into account. As for the reward, it’ll be available soon, at a price. You’ll receive word via email, so sign up and I’ll get you on my notification list. You can sign up at the top-right of this blog. Just fill in your name and email address, then click the “Yes, Keep Me Informed” button. After that, you’re all set!

As the content rolls out, I may issue a follow-up stock trading survey or two. That’ll help me gauge your satisfaction, and subsequently, fine-tune this new focus. I hope you enjoyed the blog so far, as it will only get better from here.

Keep your eyes peeled, as we’ll be moving forward very soon.

A lot of effort goes into the articles that I post here and in my stock market lessons. After some deep thinking (yes, even a stock market type, like myself, does it), I’ve found that I’m covering too many topics and without enough depth, at least as far as the blog is concerned. Rhyme and reason as to the order of the posts doesn’t quite compute, either. Focusing down on one topic at a time would certainly make the most sense…not to mention, applying focus makes it much easier for you to digest and recall.

I’ve put together a survey and you’re going to want to look at it. Let me know what you want to learn, and I’ll put together some great stock market lessons for you.

It’s only 5 questions and it’ll only take you 3 minutes to fill out. Plus, there’s a free gift involved. So just click the link below to get started. Thank you for your participation!

Click here to let me know what you want >>

In the spirit of yesterday’s ‘may day’ post, I’ve found a few examples of stocks that you may want to get rid of, this Spring. Not only is it May, but these companies also have some other troubles that may be reflected in the near-term stock price. Let’s take a look, shall we?

Build-A-Bear Workshop (BBW): Just like Cabbage Patch Kids, Beanie Babies, and others, novel and cuddly concepts just don’t have much staying power. Physically making and customizing your very own stuffed animal was a great idea. It appears that this craze is now beginning to die out, however. The company’s profits and revenues have been sinking year after year, and they’ve lost millions of dollars just in the last year.

Moody’s (MCO): Moody’s was responsible for taking junk securities (millions of them) and assigning AAA ratings to them. That sounds pretty fraudulent, to me. That’s one of the contributing factors to the financial crisis. Even though the banks took the heat, the ratings companies were just as guilty for falsely representing the value of the securities with inflated ratings. Can we expect the Feds to crack down? Time will tell, but I don’t believe it’s worth hanging onto the stock while we find out.

Amazon.com (AMZN): Yes, yes, I know. I just listed one of the top retailers in the country. My reasoning is this: Amazon has reported fantastic growth and revenue quarter after quarter after quarter. Can they continue? With such momentum going, how will the market reacts when Amazon doesn’t beat expectations yet again? Belief in continued success is priced into the stock, and any sign that their streak may be weakening might send the stock into a tailspin.

AOL Inc. (AOL): With subscribers, cash flow, and revenue sinking quickly, there’s not much left for this former giant. Adding insult to injury, it’s showing no earnings growth and also has to compete with the likes of Google and Yahoo for ad revenue.

Toyota Motor Corp. (TM): I’ll bet some of you guessed I might put Toyota on this list. Their recent quality issues have brought on a number of lawsuits. They may be committed to fixing their problems, but I don’t like the fact that the problems stemmed from management turning a blind eye to potential problems. Who’s to say that won’t happen again? The trust factor just dropped a few zillion points.

To see great stock picks, check out my sample beginner’s stock portfolio.

What do you think? Are there any stocks you’re selling for any reason? Let me know in the comments!