Title: Why You Should Buy In A Stock Market Crash

Word Count:
424

Summary:
When potential new investors are asked what they fear the most the answer is emphatically the worry of a stock market crash but it is only a worry if you are on the wrong side of the investment. Read on to find out why you should buy in a stock market crash.

Certainly if you are sitting with a nice portfolio and suddenly there is market crash you are going to feel the effects. But it’s a time with much potential which is why you should buy in a stock market crash. What a g…

Keywords:

Article Body:
When potential new investors are asked what they fear the most the answer is emphatically the worry of a stock market crash but it is only a worry if you are on the wrong side of the investment. Read on to find out why you should buy in a stock market crash.

Certainly if you are sitting with a nice portfolio and suddenly there is market crash you are going to feel the effects. But it’s a time with much potential which is why you should buy in a stock market crash. What a great time to add to your portfolio and benefit over the long haul. The modern day stock market crashes rebounds much quicker than the crash of 1929 which is another reason why you should buy in a stock market crash.

The crash of 1987 was a result of overvalued stock and a lack of liquidity. The crash of 2000 was the result of overvalued stock and corporate corruption. Many investors made themselves into millionaires during both of these crashes which is why you should buy in a stock market crash.

You might be surprised to find out that a stock market crash actually begins years before the actual crash. Prior to a crash there is a bull market with everything booming but at the end of every bull market is a bear market where things take a turn for the worst. That’s why you should buy in a stock market crash and then hold until it cycle back to a bull market.

Sometimes the market crashes because of a specific political or economic situation but generally a crash is panic generated by investors with no underlying reason. Smart investors get the checkbook out and start spending for you will definitely seek some nice financial rewards. It’s the reason why you should buy in a stock market crash.

During a stock market crash many loose big but there are also many excellent stock buys to be found. It’s a great time to have some extra cash kicking around even if it just a couple of hundred dollars. Now you know why you should buy in a stock market crash – the rest is up to you – just be ready for that next crash because it will come.

Now that you know why you should buy in a stock market crash you just need to wait for the crash.

Copyright © 2007 Joel Teo. All rights reserved. (You may publish this article in its entirety with the following author’s information with live links only.)

Title: Why Stock Market Timing

Word Count:
419

Summary:
Stock market timing can reduce your risk and amplify your gains by avoiding bear market losses.

Keywords:
stock market timing, timing the stock market, market timing

Article Body:
Copyright 2006 Equitrend, Inc.

It’s important that you understand the impact that a bear market has on your capital. The give and take of your investment capital is not equal. If you placed $100 into an investment and it declined 50% to $50, what is the rate of return you would need to earn back your original investment of $100?

Once you lose money, it takes a much greater return on the funds you have left to recapture your original investment. In this case, you would need a 100% gain on the remaining $50 to recapture your original $100 investment.

Looking at historical bear markets in the United States, we can conclude that the time to recovery from a bear market can take between six months and twenty five years! Declines in portfolio value have ranged from 20% to 86.7%! Not a good scenario for buy and hold investors. This is why you would be better off financially to never lose money in any one year and to only achieve half of the market’s returns in the positive years. Let us explain how this is possible. If you never lost money in the down market years, you would only need to capture 38.33% of the gains in the positive market years to equal a buy-and-hold position in the Nasdaq 100 index. More realistically, if your losses in the down market years were half the Nasdaq’s losses, you would only need to capture 63.37% of the Nasdaq’s gains in the positive market years to equal a buy-and-hold position.

The point we are making is that you don’t need to equal or outperform the performance of the market in the positive market years if you protect your capital in the down market years. Protecting your capital in the down market years has an exponential effect on growing your capital over time.

The objective of any stock market timing strategy should be to reduce risk and maximize returns – with risk reduction being the most important factor. All other things being equal, you want to invest in the least volatile, highest reward, lowest risk strategy possible.

You may be reading this today because you are tired of giving all of your own assets, or your client’s assets, away to a bear market. You may even be in the position where your retirement has been diminished to the point of having to change your retirement plans.

Whatever the reason, there are better ways to grow and protect your assets than the buy and hold (buy and hope) myth promoted by Wall Street.

Title: Why Learn to Trade Stocks?

Word Count:
411

Summary:
Stock trading has many benefits as a part time occupation. Compared to another job, there are no special qualifications to start. If you follow a few simple rules you can run your business as you want.

Keywords:
stock trading,stock investing,work from home

Article Body:
Stock trading has numerous benefits as a viable part time occupation.

In contrast to a second job, there are no special qualifications to begin. The stock market doesn’t care about your level of success, education, ethnic origin or any personal characteristics. Complex employers, office politics or difficult employees do not play a part in trading. Additionally you have the freedom to trade from any location. If you follow a few simple rules you can run your business on your own terms.

The most important factor is to be clear about why you want to trade stocks. What do you hope to gain financially from learning to trade?

Are you looking to:

1. Create an enhanced lifestyle with supplemental income?

2. Replace a full time income with a passive income stream?

3. Become independently wealthy by creating a financial base independent of other income sources?

What would being a successful trader mean you? Imagine yourself making successful trades and gaining financially. Think about what it would feel like to have extra money in your bank account and to achieve your targets. With a clear picture of what you want and how that would feel you will be able to remain focused and motivated.

Your first task.

Your first task is to put one primary goal for your trading plan in writing. Additional goals you set can then support your primary plan.

Know Yourself

As well as learning to trade stocks it is essential that you understand yow you react under stress. Being aware of your own behaviour patterns and common causes of and reactions to stress when trading will help you to master stock trading.

The reason that many people lose money in the stock market is because they lack the proper knowledge base. Independent of trading styles there is one thing common to all successful traders; the use of a tested and proven system.

In learing to trade you must be willing to let go of pre-formulated ideas and start fresh, develop new successful habits, and the discipline necessary to trade successfully over time.

Are you willing to do this?

Successful stock market trading eludes many people because they don’t have contact with an experienced, successful trader or trading system that actually works. Going it alone can be potentially expensive when learning by trial and error. Investing in a solid education and taking advantage of the insights and experience of successful trader makes a lot of sense when learning to trade successfully.

Title: Why Land Beats Stocks And Shares

Word Count:
373

Summary:
As small investors look for ways to ensure a good return on their money, land sales are increasing in popularity. Profits, whilst not guaranteed, are often better than those from the stock market, for several reasons:

Less risk, more profit

Whilst some investors have a significant investment in the stock market, often with a comprehensive, well-managed portfolio, for most smaller investors, their experience of the market is limited to one or two companies and they are t…

Keywords:
land investment, buy land, land banking

Article Body:
As small investors look for ways to ensure a good return on their money, land sales are increasing in popularity. Profits, whilst not guaranteed, are often better than those from the stock market, for several reasons:

Less risk, more profit

Whilst some investors have a significant investment in the stock market, often with a comprehensive, well-managed portfolio, for most smaller investors, their experience of the market is limited to one or two companies and they are therefore more open to stock market fluctuations and risks. Company share prices can be affected by many external factors, often beyond the company’s control and, unless you are watching the market carefully day by day, you usually have to hold onto your shares for many years in order to turn a good profit.

By contrast, if you select the right land, or take the advice of a reliable land agent, you can realise potentially fantastic profits in a much shorter space of time. This is because the land that’s normally made available to smaller investors has been carefully chosen. Big land investors buy and then bank land that they think will be ear-marked for development in the future, and then either hold onto it, or parcel it up and sell it to private investors, who reap the benefits if planning permission is granted at a later date.

No maintenance required

Once you’ve bought your piece of land, you own it outright and can sell it whenever you choose. You don’t need to maintain it as you would a property and you don’t need to follow its fortunes day in, day out, to find out whether you’re making any money. If you need to raise money, you can sell your land quickly, whereas if your shares are at a low price, you won’t be able to make enough cash.

The best of both worlds

If you have thought of investing in land, but don’t want to get out of the stock market completely, then just broaden your portfolio by reducing your shareholdings and investing in land as well. You get the best of both worlds, and the chance to make a very health profit if you choose the land wisely.

Title: Why Forex Is A Better Investment Idea Than Stocks or Commodities

Word Count:
462

Summary:
The purpose of this article is not to go into the details of how Forex works, but to compare the benefits of trading in the Forex market versus trading the Equity (American stocks) or Futures markets (Commodities).

Keywords:
make,money,online,forex,trading,system

Article Body:
Forex, the Foreign Exchange Market, is a worldwide market for buying and selling foreign currencies. The major currencies that are traded include the U.S. Dollar (USD), Euro (EUR), British Pound (GBP), Canadian Dollar (CAD), Australian Dollar (AUD), Japanese Yen (JPY), and the Swiss Franc (CHF). The purpose of this article is not to go into the details of how Forex works, but to compare the benefits of trading in the Forex market versus trading the Equity (American stocks) or Futures markets (Commodities).

The Forex market is the largest market in the world with over 2 trillion dollars traded every day. This compares to the 200 billion dollars traded daily in the Equity and Futures market each. Because of this, the Forex market benefits from fairer prices, price stability, and better trade execution.

Forex has the advantage of being open 24 hours a day. The Forex market opens on Sunday afternoon and remains open until it closes on Friday afternoon. The Equity and Futures markets are only open Monday through Friday 8:30 a.m. to 5:00 p.m. Eastern Standard Time. This gives Forex traders the opportunity to trade around their personal schedule. Also, liquidity in the Equity and Futures markets are reduced after regular trading hours.

When trading Forex, you will not incur the commissions or transaction fees that exist in the Equity and Futures markets. You pay a spread on the currency pair you are trading and costs are very low, especially when compared to the other markets.

Investment leverage in the Forex market can be as high as a 200:1 margin. In the Equity and Futures markets your average margin is 4:1. This means that you can control $10,000 worth of currency with only a 50-dollar margin.

In the Equity and Futures markets, investors are expected to fund several thousand dollars to open a trading account. In the Forex market, you can open a mini account for only 300 dollars and begin trading.

In the Equity market, short selling is very risky and comes with limitations. In the Forex market, you are able to buy long or sell short any currency pair with no limitations or difference in risk.

As an investor in the Forex market, you are able to concentrate on only a few major currencies. There are seven major currencies yielding four major currency pairs that most Forex investors concentrate on. Whereas in the Equity market, investors have over 40,000 stocks to choose from when contemplating where to invest their money.

There are many factors to consider when deciding on which market you want to spend your time and money. The Forex market provides many benefits over the other major investment markets that will allow you, the investor, to make larger profits, take less risk, and spend more time with your personal life and less time investing.

Title: Why Buy Stocks on Margin?

Word Count:
450

Summary:
Buying on margin means that you are buying your stocks with borrowed money.

Keywords:
stock,stock margin

Article Body:
Buying on margin means that you are buying your stocks with borrowed money.

If you are buying stocks outright, you pay $5,000 for 100 shares of a stock that costs $50 a share. They are yours. You’ve paid for them free and clear.

But when you buy on margin, you are borrowing the money to purchase the stock. For example, you don’t have $5,000 for those 100 shares. A brokerage firm could lend you up to 50% of that in order to purchase the stock. All you need is $2,500 to buy the 100 shares of stock.

Most brokerage firms set a minimum amount of equity at $2,000. This means that you have to put in at least $2,000 for the purchase of stocks.

In return for the loan, you pay interest. The brokerage is making money on your loan. They will also hold your stock as the collateral against the loan. If you default, they will take the stock. They have very little risk in the deal.

One way to think of buying on margin is that it is often comparable to buying a home with a mortgage. You are taking out the loan in the hopes that the value will go up and you will make money. You are in control of twice the amount of shares. All you have to see is the additional profit exceed the interest you have paid the brokerage.

However, there are risks to buying stock on margin. The price of your stock could always go down. By law, the brokerage will not be allowed to let the value of the collateral (the price of your stock) go down below a certain percentage of the loan value. If the stock drops below that set amount, the brokerage will issue a margin call on your stock.

The margin call means that you will have to pay the brokerage the amount of money necessary to bring the brokerage firms risk down to the allowed level. If you don’t have the money, your stock will be sold to pay off the loan. If there is any money left, you will be sent it. In most cases, there is little of your original investment remaining after the stock is sold.

Buying on margin could mean a huge return. But there is the risk that you could lose your original investment. As with any stock purchase there are risks, but when you are using borrowed money, the risk is increased.

Buying on margin is usually not a good idea for the beginner or normal, every day investor. It is something that sophisticated investors even have issues with. The risk can be high. Make sure that you understand all of the possible scenarios that could happen, good and bad.

Title: When To Sell Penny Stocks

Word Count:
533

Summary:
Penny Stocks can be a very effective way to provide you with a secondary income. They can be used to create passive income because they do not require you to be constantly watching over them. The problem that most people have when it comes to stocks is – not knowing the right time to sell.

Penny Stocks can rise very quickly but they can also fall quickly too. The reason that most investors hold onto a stock is because the fail to separate their emotions from their actions…

Keywords:
Penny Stocks, Investments

Article Body:
Penny Stocks can be a very effective way to provide you with a secondary income. They can be used to create passive income because they do not require you to be constantly watching over them. The problem that most people have when it comes to stocks is – not knowing the right time to sell.

Penny Stocks can rise very quickly but they can also fall quickly too. The reason that most investors hold onto a stock is because the fail to separate their emotions from their actions.

All of your penny stocks buying and selling should, of course, be based on sound research both of the market and the companies’ recent history. How the company is doing in terms of profitability, whether they are just about to, or have just announced profits, losses or new patents, discoveries and products, can all affect your decision on whether, or not, to buy.

Knowing the right time to sell your penny stocks however can sometimes seem, as much an art as a science, although getting it wrong can be fatal. Many people seem to put all their research efforts into knowing what penny stocks to buy and when to buy them.

Investors seem to forget about researching to sell stocks. Instead, they let their emotions take control and sell at the wrong time. Investors selling at the “wrong time” fall into two categories. These categories are, The Runners and The Sitters.

The Runners like to take profit way too early. They see their Penny Stocks rise a little and sell because they don’t want to “risk too much”. I’ve seen it time and time again; these people set out to earn a 25% Return on Investment and end up taking profit at 1%. Someone who takes profit twice at 25% earns a lot more than someone who takes profit twice at 1%. Usually, as soon as they sell a penny stock, it will rise even further and they’ll be wondering why they sold so early.

The Sitters are the heavily emotionally involved in their penny stocks. They are gamblers at heart and just do not want to let go of a losing position because “it could bounce back any day now”. When they do let go of their Penny Stocks – there is virtually nothing left. The sitters like to sit on a losing position. They like buying but dislike selling.

Do you want to be a Runner or a Sitter? Well, I hope you are neither. You want to be a winner. A winner will separate their emotions from their investment thinking and will also research when buying and also when selling. They will buy and they are not afraid of selling.

There is great deal of profit to be made from trading in Penny Stocks. But you have to know not only what to buy but also how long to keep it and when the best time to sell. The answer, as with most things in the world of finance, is good information and research. But that doesn’t end when you buy. Find out why your penny stocks are rising and this will put you in a much better position to know when to sell.

Title: What Are Stock Market Crashes

Word Count:
735

Summary:
The phrase stock market crash brings to mind images of speeding ticker tape machines and panic on the trading floor. The common perception is that stock market crashes are random and unpredictable phenomenon. There is, however, a pattern to the markets larger fluctuations. The market crash is a familiar term but an unfamiliar concept.

To understand what happens in the market when a crash occurs, we first need to look to the period that precedes a crash. The cycle begins at…

Keywords:
online stock trading,stock market trading,stock investing,stock quote

Article Body:
The phrase stock market crash brings to mind images of speeding ticker tape machines and panic on the trading floor. The common perception is that stock market crashes are random and unpredictable phenomenon. There is, however, a pattern to the markets larger fluctuations. The market crash is a familiar term but an unfamiliar concept.

To understand what happens in the market when a crash occurs, we first need to look to the period that precedes a crash. The cycle begins at a time when the stock market is weak and people are generally pessimistic about the financial future of themselves and country. The bear market has caused most people to sell many stocks in order to save some of their investment. This is the point where the smart investors can pick up undervalued stock at bargain prices. These smart investors know that the market will be turning in the near future and they can resell these stocks for a much higher price. This accumulation of undervalued stock causes the market to start to rise. The rising stocks will attract the attention of mutual funds, and as the mutual funds invest in the stock, billions of dollars are reintroduced to the market place. Mutual fund investments cause the market to gain even more as do investments by institutional investors. At this point, the market has begun to stabilize and stocks are no longer at bargain prices. Stock prices most likely reflect the intrinsic value of the stocks. Those who invested early have large profits.

The average investor though may still be skeptical about the stock market, given the recent bear market. As the stock prices continue to stabilize and more institutional investors get re- involved in the stock market, the individual investors begin to notice. The individual investors began buying stocks the market is flooded with capital since the individual investors make up the cast majority of total investors in the market.

This bull market exists as long as the market is on the rise and all stock involved are all gaining in value. Bull markets make everyone happy. Investors and companies alike are making money and enjoying it. There is a kind of euphoria in the country, and a feeling that things will only continue to go up from here.

At the peak of a bull market, many companies go public or make stock available for purchase to the public. An IPO is the term used when a company goes public. The reason IPOs show up when the market is in a bull period is because companies want to benefit from investor confidence. When individual investors are more optimistic, the company can gain the highest possible stock price. Individual investors often buy into IPOs with dollar signs in their eyes and anticipating instant riches from getting in on the ground floor of a companys stock history. Investing in IPOs is traditionally the method by that most small investors make their money. The bull market is further fueled and stocks begin doubling and tripling in value.

At this point, those smart investors who purchased the undervalued stock at the beginning of the cycle are sitting in a prime position. At the perceived top of the bull market these investors can sell their now overvalued stocks before the prices start to drop. In the height of a bull market, there are often incidents of widespread greed. Corporate scandals arise, retail investors start to use margin investing to gain more stocks, and irrational purchases are made. The market is perceived to have no end to its growth so people start doing whatever they can to gain more stock with the false expectation that they will be able to sell for profit later.

Once mutual funds and individual investors have fully invested their capital, the market becomes overbought. At this point the market can only go down. The speed of the downward trend is determined by the amount of negative news. As there are negative reports about stocks losing value, this causes more investors to sell and the cycle expands exponentially. The market always falls quicker than it has risen. If everyone tries to exit at the same time, there are no buyers for the stocks. If there is enough of a lack of buyers, the market can crash entirely. The capitulation of the market occurs when a massive amount of individual investors leave and the market bottoms out.

Title: Wealth Is Made By Focusing In Stocks

Word Count:
289

Summary:
STOP.

STOP trying to create the perfect trading system. There isn’t one.

Phew..what a relief. Stop spending all those hours creating more and more trading rules and realize this:

Money creation in the stock market is made from CONCENTRATION. That’s right. Trading the very best stocks atthe right time with enough capital to make a big difference.

You must go from wealth CREATION to wealth maintance in this game. Unless you plan on “investing” for the next 25+ y…

Keywords:
stocks

Article Body:
STOP.

STOP trying to create the perfect trading system. There isn’t one.

Phew..what a relief. Stop spending all those hours creating more and more trading rules and realize this:

Money creation in the stock market is made from CONCENTRATION. That’s right. Trading the very best stocks atthe right time with enough capital to make a big difference.

You must go from wealth CREATION to wealth maintance in this game. Unless you plan on “investing” for the next 25+ years and building wealth slowly.. this is my plan of how you can make millions in the stock market:

In Darvas’s book “How I Made $2 Million…”

How many looked at his position sizing? In his early trades Darvas only trade 1 or 2 stocks at any one time on MARGIN! Only when he got upto over $500,000 did he start diversifying a little. Most people overlook these facts.

MY Momentum Stock PLAN:

CONCENTRATION BUILDS WEALTH DIVERSIFICATION MAINTAINS WEALTH

END GOAL:

$2 MILLION+ ACCOUNT MAKING 20-30% P.A

Start with:
$50,000 Trade 2 stocks with half capital in each.

RISK Per TRADE = 5%

When at $100,000 Trade 3 stocks with 1/3 capital in each.

Risk Per Trade = 3%

When at:

$500,000 Trade 5 stocks with 1/5 capital:

Risk Per Trade = 2%

When at $2 Million Trade 8 stocks with 1/8 capital:

Risk Per Trade = 1.25%

You first have to create wealth in order to maintain it. Whilst trading only two stocks at a time may be deemed to “risky” by the “professionals” you must be very selective on the stocks you trade. Quality beats quantity. Especially when you concentrate so much.

This is the only way a small account can break into the big time. You must not only focus your efforts in the early stages but you must also onlytrade the top 0.1% of stocks in the marketand get yourtiming SPOT ON.

Title: Want to Trade Stocks? Get Your Free Stock Quote First

Word Count:
362

Summary:
Free stock quotes are valuable for looking at your investments and determining whether or not you want to trade in the stock market. There are several free stock quotes online and one of the most popular is Yahoo Finance.

Keywords:
free stock quote, stock quote, investments, stocks, finance

Article Body:
Free stock quotes are valuable for looking at your investments and determining whether or not you want to trade in the stock market. There are several free stock quotes online and one of the most popular is Yahoo Finance. This site will allow you to search your stocks to see the growth or decline and determine if you want to buy or sell. Free stock quotes are ideal for the novice investor. They can practice their skills without investing any money until they are comfortable enough to actually invest. Once you decide to invest, though, you will need to get with a broker and there are additional fees associated with trading. However, there are many do it yourself places that only require a small fee and will often have valuable articles and free stock quotes so you can watch your portfolio continually to ensure you have made sound investments.

Before investing in the stock market, you should be aware of the basics of stock trading. This can be learned by doing some research online or by getting a book at your local library. Once you know the basics, you can start looking for individual investments. It is recommended that the novice investor start off with only the amount of money they can afford to lose. There are no guarantees you will earn money and sometimes you will lose it. So, it is important to carefully watch the stock market by looking at free stock quotes each day. You may want to buy or sell your stocks depending on how well the individual stock is doing and what forecasts are for the stock.

Free stock quotes are also great for classes in finance or the stock market. This is ideal for investor clubs, high school classes or college projects. You can either use mock money to track an investment from start to finish without actually putting in money or you can use pooled money to determine which investment you will watch and what you will do with it. This is a great way to have a bit of fun with a group while learning about investments and possibly making a bit of money.