Title: The Abcs Of The Stock Market

Word Count:
410

Summary:
A recent study indicates that Americans are saving less these days than they were 10 years ago, except for entrepreneurs and corporate executive and in one particular segment – young middle-managers who are about six to 10 years into their careers and only beginning to make headway into the higher echelons of their particular industry.

Are you one of these people? If you are, then chances are that you are currently in the process of planning or expanding your base of inves…

Keywords:
Stock Market, Investing, Finance, Business

Article Body:
A recent study indicates that Americans are saving less these days than they were 10 years ago, except for entrepreneurs and corporate executive and in one particular segment – young middle-managers who are about six to 10 years into their careers and only beginning to make headway into the higher echelons of their particular industry.

Are you one of these people? If you are, then chances are that you are currently in the process of planning or expanding your base of investments. You have probably given real estate a good look and determined that, although attractive, it is more ideal for a full-time real estate investor because it demands a lot of effort and time. You also probably have a tidy little sum invested in various banking tools like savings and time deposits as well as common trust bonds and government securities. That’s all well and good and your money is safe right there. But now you want to shoot for the moon, mainly by investing in the kind of company and industry that you may be familiar with. You are eager to try the stock market.

Here are a few basics about the stock market business.

The stock market is mainly a place where you sell or trade a company’s stock. These stocks are small shares in the company which it sells to the public in order to raise capital to finance its other ventures. Of course, you already know that capital is the money that a company spends for producing, improving, expanding, distributing and promoting its products and services. If you buy a company’s stocks, you are one of its shareholders.

The use of the term stock market also applies in reference to all the stocks that are available for trading (as well as other securities) as in the statement “the stock market performed well today.”

You can also trade bonds on the stock market. Bonds are a business IOU that indicate that the bond issuer holds the bond holder a debt. Bonds are traded directly between two parties over the counter.

You may opt to trade commodities on the stock market. The term commodities refers to agricultural products (coffee, sugar, wheat, maize, barley, cocoa, milk products) and other raw materials (pork bellies, oil, metals). For example, if you feel that the price of coffee will increase next month, you buy the coffee commodity now and reap the benefits of the price increase next month when you sell.

Title: The 1% rule — Stock Market Insiders Are Richer than European Royalty!

Word Count:
526

Summary:
Stop thinking like a cow to become wealthy in the stock market!

Keywords:
stock market, stock investing

Article Body:
I was watching Oprah the other night. She was covering the reality of the crappy lie called the American Dream that says just work hard and everything will be Peachey keen in the land of the free and the home of the brave. She pointed out that 1% of the U.S. population now control 40% of the all American wealth. If you are not born into that 1% today, she pointed out, then it is much harder today to work your way into it. You have to work a lot more hours for a lot less pay and your extra hours are just making the 1% richer. Meanwhile if you have the right connections — especially if you are able to enter that special band of thieves called corporate insiders and play your corporate politics right — then you are instantly propelled to the top. Today with our hideously corrupt corporate governance system supported by divisions of corporate attorneys serving insiders and paid by unwitting public Joe shareholders membership pops you right into Oprah’s 1%.

So what can you do if you weren’t born into the Johnson & Johnson family and don’t have a “richer than God” old money American dream trust fund? The answer is you have to learn to buy very low and sell very high like the robber barons did in the 1800s. I know times are tough on the American middle class but there are ways for you to get ahead. First of all you have to stop chasing pipe dreams. Ignore the get rich schemes like multilevel marketing, derivatives, and real estate short selling junk people will bring your way — all endorsed by some major public figure that make the con artist at the top rich to suck you in.

Learn to take your financial future in your own to hands and make the market pay you. How do you do this? Well, first you have to stop thinking like a cow. Most people in the public make all of their opinions based on what the group has decided is right. You have to stop doing this and take the attitude that the public as a group is a pretty stupid mass of livestock heading up the cattle chute into the inside corporate executives financial slaughter house. Right now the chute is closed because the stock market has recently crashed making stocks cheap —insiders are loading up while the media is strangely bereft of “stock market rags to riches dreams” it hyped up to suck people in to the market in 2000 when insiders were dumping on the public.

Learn to get really excited about the market when everyone hates it. Right now the stock market has crashed and you don’t hear any good news out there. Ever wonder why? The big forces behind Wall Street, the secret buying consortiums, the inside corporate executives, and the experienced individual investors who are smart enough to know to buy, buy, buy when stock prices are extremely low and the Wall Street media machine is strangely quiet. There are a lot of really good companies out there at extremely low prices ripe for you to buy, buy, buy!!!

Title: Ten Common Investment Errors: Stocks, Bonds, & Management

Word Count:
961

Summary:
Losing money on an investment may not be the result of a mistake, and not all mistakes result in monetary losses. Compounding the problems that investors have managing their investment portfolios is the sideshowesque sensationalism that the media brings to the process. Avoid these ten common errors to improve your performance:

Keywords:
investment,investment guru,stock market,money,asset allocation,diversification,Wall Street,stocks,equities,fixed income,income investing,investment plan,commissions,taxes,Working Capital,

Article Body:
Investment mistakes happen for a multitude of reasons, including the fact that decisions are made under conditions of uncertainty that are irresponsibly downplayed by market gurus and institutional spokespersons. Losing money on an investment may not be the result of a mistake, and not all mistakes result in monetary losses. But errors occur when judgment is unduly influenced by emotions, when the basic principles of investing are misunderstood, and when misconceptions exist about how securities react to varying economic, political, and hysterical circumstances. Avoid these ten common errors to improve your performance:

1. Investment decisions should be made within a clearly defined Investment Plan. Investing is a goal-orientated activity that should include considerations of time, risk-tolerance, and future income… think about where you are going before you start moving in what may be the wrong direction. A well thought out plan will not need frequent adjustments. A well-managed plan will not be susceptible to the addition of trendy, speculations.

2. The distinction between Asset Allocation and Diversification is often clouded. Asset Allocation is the planned division of the portfolio between Equity and Income securities. Diversification is a risk minimization strategy used to assure that the size of individual portfolio positions does not become excessive in terms of various measurements. Neither are “hedges” against anything or Market Timing devices. Neither can be done with Mutual Funds or within a single Mutual Fund. Both are handled most easily using Cost Basis analysis as defined in the Working Capital Model.

3. Investors become bored with their Plan too quickly, change direction too frequently, and make drastic rather than gradual adjustments. Although investing is always referred to as “long term”, it is rarely dealt with as such by investors who would be hard pressed to explain simple peak-to-peak analysis. Short-term Market Value movements are routinely compared with various un-portfolio related indices and averages to evaluate performance. There is no index that compares with your portfolio, and calendar divisions have no relationship whatever to market or interest rate cycles.

4. Investors tend to fall in love with securities that rise in price and forget to take profits, particularly when the company was once their employer. It’s alarming how often accounting and other professionals refuse to fix these single-issue portfolios. Aside from the love issue, this becomes an unwilling-to-pay-the-taxes problem that often brings the unrealized gain to the Schedule D as a realized loss. Diversification rules, like Mother Nature, must not be messed with.

5. Investors often overdose on information, causing a constant state of “analysis paralysis”. Such investors are likely to be confused and tend to become hindsightful and indecisive. Neither portends well for the portfolio. Compounding this issue is the inability to distinguish between research and sales materials… quite often the same document. A somewhat narrow focus on information that supports a logical and well-documented investment strategy will be more productive in the long run. But do avoid future predictors.

6. Investors are constantly in search of a short cut or gimmick that will provide instant success with minimum effort. Consequently, they initiate a feeding frenzy for every new, product and service that the Institutions produce. Their portfolios become a hodgepodge of Mutual Funds, iShares, Index Funds, Partnerships, Penny Stocks, Hedge Funds, Funds of Funds, Commodities, Options, etc. This obsession with Product underlines how Wall Street has made it impossible for financial professionals to survive without them. Remember: Consumers buy products; Investors select securities.

7. Investors just don’t understand the nature of Interest Rate Sensitive Securities and can’t deal appropriately with changes in Market Value… in either direction. Operationally, the income portion of a portfolio must be looked at separately from the growth portion. A simple assessment of bottom line Market Value for structural and/or directional decision-making is one of the most far-reaching errors that investors make. Fixed Income must not connote Fixed Value and most investors rarely experience the full benefit of this portion of their portfolio.

8. Many investors either ignore or discount the cyclical nature of the investment markets and wind up buying the most popular securities/sectors/funds at their highest ever prices. Illogically, they interpret a current trend in such areas as a new dynamic and tend to overdo their involvement. At the same time, they quickly abandon whatever their previous hot spot happened to be, not realizing that they are creating a Buy High, Sell Low cycle all their own.

9. Many investment errors will involve some form of unrealistic time horizon, or Apples to Oranges form of performance comparison. Somehow, somewhere, the get rich slowly path to investment success has become overgrown and abandoned. Successful portfolio development is rarely a straight up arrow and comparisons with dissimilar products, commodities, or strategies simply produce detours that speed progress away from original portfolio goals.

10. The “cheaper is better” mentality weakens decision making capabilities, leads investors to dangerous assumptions and short cuts that only appear to be effective. Do discount brokers seek “best execution”? Can new issue preferred stocks be purchased without cost? Is a no load fund a freebie? Is a WRAP Account individually managed? When cheap is an investor’s primary concern, what he gets will generally be worth the price.

Compounding the problems that investors have managing their investment portfolios is the sideshowesque sensationalism that the media brings to the process. Investing has become a competitive event for service providers and investors alike. This development alone will lead many of you to the self-destructive decision making errors that are described above. Investing is a personal project where individual/family goals and objectives must dictate portfolio structure, management strategy, and performance evaluation techniques. Is it difficult to manage a portfolio in an environment that encourages instant gratification, supports all forms of “uncaveated” speculation, and that rewards short term and shortsighted reports, reactions, and achievements?

Yup, it sure is.

Title: stockstutor

Word Count:
94

Summary:
stockstutor is leading stock based website which includes investing and trading,economics and finance and the Sheer Madness of Markets.

Keywords:
stocks,Finance,How To Buy Stock?,International Stock,Buy Stock,Stock Investing,Buy Stock Online,Stock Purchase,Stock Market Chart,stock market advice,investing stock tips,share mutual fund,Economical Investment,business services

Article Body:
stockstutor is leading stock based website which includes investing and trading,economics and finance and the Sheer Madness of Markets.
The mission of stockstutor.com is to provide our audience with what’s relevant behind and beyond the headline.
These thoughts utilize the 40 years of Wall Street experience we’ve amassed to share what our considerable contact network from all over the world is telling us.
You’ll get a viewpoint that is anything but narrow and will come away with a clearer perspective on what makes the markets (stocks, bonds, currencies, etc) tick.

Title: Stocks -What Key Factor Separates A Winning Trader From A Losing Trader?

Word Count:
410

Summary:
What separates the winning traders from the losing traders in the stocks and futures markets? Discover what you must know and do in order to be a profitable trader.

Keywords:
profitable trader, trading plan, entry and exit levels, stop loss point, technical analysis, fundamental analysis, swing trading

Article Body:
Often, I receive requests from members of my stock market trading discussion group to give my views on technical analysis of stocks that they are watching. In the course of discussion, I discovered one common factor which separates the winning traders from the losing traders.

In general, both group of traders like to scan their lists of active stocks to uncover possible trading candidates. However, the traders in the winning group are specific about their trading, and have their entry and exit points well spelt out in a specific trading plan.

In their trading,they have precise entry and exit points…so that the trade is unemotional. After they have entered a trade, either they are correct and ride the trend or they are wrong and you exit with a loss that has been predetermined. There is nothing vague in their trading.

In contrast, those who are losing money in their trades invariably do not have a trading plan, or at least a semblance of a trading plan. This group of traders jump on tips provided by others without being able to check or verify the tips from some analysis, whether technical or fundamental. They do not have any idea of when to enter the trade or to exit with a stop loss.

Again, when the winning traders have computed their entry and exit and stop loss points, these traders can approach their
trading day with guarded optimism, watching whether an expected rally is on the cards or not. By watching pre-determined price points, the trader can know whether a rally has in fact begun and to start to trade in a more aggressive manner or to stop trading on wrong expectations which comes soeasily by being influenced by tips here and there. If the trade goes against them and hit their stop loss, they take their loss unemotionally and are out of the market, thus limiting their losses.

Remember, you involve hard earned money into your trading and investment.There is nothing VAGUE about trading. Every entry and exit points is calculated before hand to enable you to control your risk, if you are to become a successful trader.

Learn how to do this well and you will be a consistent trader. Test every tip and breathe specifics into your trades and you can make profits. In every profession, it is the specialist who makes the most money. Learn to excel in your trading and you will be profitable.

Title: Stocks vs. Bonds: Differences and Risks

Word Count:
1020

Summary:
In the world of investments, you’ll often hear about stocks and bonds. They are both feasible forms of investment. They allow you the opportunity to invest your money with a specific company or corporation with the possibility of future profits. But how exactly do they work? And what are the differences between the two?

Keywords:
trading

Article Body:
In the world of investments, you’ll often hear about stocks and bonds. They are both feasible forms of investment. They allow you the opportunity to invest your money with a specific company or corporation with the possibility of future profits. But how exactly do they work? And what are the differences between the two?

Bonds

Let’s start with bonds. The easiest way to define a bond is through the concept of a loan. When you invest in bonds, you are essentially loaning your money to a company, corporation, or government of your choosing. That institution, in turn, will give you a receipt for your loan, along with a promise of interest, in the form of a bond.

Bonds are bought and sold in the open market. Fluctuation in their values occurs depending on the interest rate of the general economy. Basically, the interest rate directly affects the worth of your investment. For instance, if you have a thousand dollar bond which pays the interest of 5% yearly, you can sell it at a higher face value provided the general interest rate is below 5%. And if the rate of interest rises above 5%, the bond, though it can still be sold, is usually sold at less than its face value.

The logic behind this system is that the investors deal with a higher rate of interest then the actual bond pays. Thus, the bond is sold at lower value in order to offset the gap. The OTC market, which is comprised of banks and security firms, is the favourite trading place for bonds, because corporate bonds can be listed on the stock exchange, and can be purchased through stock brokers.

With bonds, unlike stocks, you, as the investor, will not directly benefit from the success of the company or the amount of its profits. Instead, you will receive a fixed rate of return on your bond. Basically, this means that whether the company is wildly successful OR has an abysmal year of business, it will not affect your investment. Your bond return rate will be the same. Your return rate is the percentage of the original offer of the bond. This percentage is called the coupon rate.

It is also important to remember that bonds have maturity dates. Once a bond hits its maturity date, the principal amount paid for that bond is returned to the investor. Different bonds are issued different maturity dates. Some bonds can have up to 30 years of maturity period.

When dealing in bonds, the greatest investment risk that you face is the possibility of the principal investment amount NOT being paid back to you. Obviously, this risk can be somewhat controlled through the careful assessment of the companies or institutions that you choose to invest in.

Those companies that possess more credit worthiness are generally safer investments when it comes to bonds. The best example of a “safe” bond is the government bond. Another is the blue chip company bond. Blue chip companies are well-established companies that have proven and successful track records over a long span of time. Of course, such companies will have lower coupon rates.

If you’re willing to take a greater risk for better coupon rates, then you would probably end up choosing the companies with low credit ratings, companies that are unproven or unstable. Keep in mind, there is a great risk of default on the bonds from smaller corporations; however, the other side of the coin is that bond holders of such companies are preferential creditors. They get compensated before the stock holders in the event of a business going bankrupt.

So, for less risk, choose to invest in bonds from established companies. You will be likely to cash in on your returns, but they will probably not be very large. Or, you can choose to invest in smaller, unproven companies. The risk is greater, but if it pays off, your bank account will be greater, too. As in any investment venture, there is a trade-off between the risks and the possible rewards of bonds.

Stocks

Stocks represent shares of a company. These shares give part of the ownership of the company to you, the share-holder. Your stake in that company is defined by the amount of shares that you, the investor, own. Stock comes in mid-caps, small caps, and large caps.

As with bonds, you can decrease the risk of stock trading by choosing your stocks carefully, assessing your investments and weighing the risk of different companies. Obviously, an entrenched and well-known corporation is much more likely to be stable then a new and unproven one. And the stock will reflect the stability of the companies.

Stocks, unlike bonds, fluctuate in value and are traded in the stock market. Their worth is based directly on the performance of the company. If the company is doing well, growing, and attaining profits, then so does the value of the stock. If the company is weakening or failing, the stock of that company decreases in value.

There are various ways in which stocks are traded. In addition to being traded as shares of a company, stock can also be traded in the form of options, which is a type of Futures trading. Stock can also be sold and brought in the stock market on a daily basis. The value of a certain stock can increase and decrease according to the rise and fall in the stock market. Because of this, investing in stocks is much riskier than investing in bonds.

The Wrap-Up

Both stocks and bonds can become profitable investments. But it is important to remember that both options also carry a certain amount of risk. Being aware of that risk and taking steps to minimize it and control it, not the other way around, will help you to make the right choices when it comes to your financial decisions. The key to wise investing is always good research, a solid strategy, and guidance you can trust.

Title: Stocks to Buy for Bear Markets

Word Count:
588

Summary:
When stocks are bullish – that is, when prices of the stock market in a steady rise – it is pretty easy for anyone to make money on Wall Street

Keywords:
loans

Article Body:
When stocks are bullish – that is, when prices of the stock market in a steady rise – it is pretty easy for anyone to make money on Wall Street. Studies have any shown that in certain kinds of easy-money markets, novices did just as well as pros when it came to picking hot stocks and reaping fast profits. But the veterans of the stock market game say that the real test comes when there is a bear market and stocks fall into a general slump. Those who can make money under those conditions will gain the respect of even the most seasoned investors. But to do it requires patience, research, and discipline.

Picking the right stock for the economic climate is not impossible, however. One way to get a handle on which stocks will perform best during a bear market is to look at the overall picture of how the stock market behaves. Usually bull markets are periods that also see a strong manufacturing sector. Houses are built, cars are manufactured, and goods like appliances and clothes fly off the shelves. The companies that make and sell those consumer products do well, and those who buy their stock to share in that success drive stock prices higher. But when the party is over and inflation kicks in, we begin to budget our money. Sales volume declines, and many factory workers find themselves out of work as consumer demand slackens. As wages stagnate, so do purchases of high priced items like cars and homes, and this helps to accelerate the decline of the stock market.

But those who buy stocks that perform well even in this kind of economic recession – the stocks known as “recession-proof” stocks – can usually do relatively well, even during sluggish bear markets. Which stocks continue to reward shareholders in a recession? Generally speaking, those that are tied to fundamental basic necessities of life. We may not buy designer jeans and sports cars during a bear market, but we still buy heating oil and we still use electricity to light our offices and homes. So utility company stocks generally fare well during bear markets, as do companies that sell other basic commodities like gasoline. Gold and silver and other precious metals are also a good choice for a difficult stock market season, because when people are nervous about the future of the economy, they tend to invest in things of universal value, like gold. It provides a sense of security, because if all else fails to attract consumers, gold will still glitter and be considered an item of special value and significance. And if you buy gold before the bear market sets in, you can probably sell it for a profit once the demand for it increases.

In summary, stocks that provide a sense of stability and security through ownership of those basic necessities of life are usually a good place to invest during a bear market. And buying stocks whose prices have fallen to bargain basement prices is also a smart strategy. Many perfectly good stocks with underlying value and strong earnings get dumped when people pull their investments away from the stock market en masse. Those who are patient can buy these at wholesale or below wholesale prices, and then watch their purchases rise in value once others realize that these stocks are good buys. When the stock market begins to climb again, those stocks that are undervalued will rise quickly and you will be left holding winners that you bought at deeply discounted prices.

Title: Stocks Look Pricey

Word Count:
1025

Summary:
The first quarter of 2006 is over. Now is a good time to reflect on stock prices and the opportunities they present.

Bargains are scarce. Equities are expensive. In recent weeks, I’ve heard several fund managers say valuations are still attractive. I don’t agree. Generally speaking, valuations are unattractive. Returns on equity are higher than historical levels. A market-wide return on equity of 15% is unsustainable. Price-to-earnings ratios may not fully reflect how expe…

Keywords:
value investing blog, value investing podcast, value investi

Article Body:
The first quarter of 2006 is over. Now is a good time to reflect on stock prices and the opportunities they present.

Bargains are scarce. Equities are expensive. In recent weeks, I’ve heard several fund managers say valuations are still attractive. I don’t agree. Generally speaking, valuations are unattractive. Returns on equity are higher than historical levels. A market-wide return on equity of 15% is unsustainable. Price-to-earnings ratios may not fully reflect how expensive stocks are. Price-to-book ratios are more alarming.

There are two additional concerns. Most discussions of the relative attractiveness of equities focus on the S&P 500 and forward earnings. The S&P 500 is not the most representative index. It may not be the best index to consider when looking at market-wide valuations.

Forward earnings are (necessarily) estimates. Where current returns on equity are unsustainable, projected earnings that use similar returns on equity may overstate the earnings power of equities in general. This can occur even where the estimates appear reasonable given current earnings. If you start with unsustainable base earnings, you are likely to overestimate future earnings even if you truly believe you are assuming very modest earnings growth.

Assets in general are pricey. Value investors have few places to turn if they continue to insist upon a true margin of safety.

Bonds are unattractive. Long-term inflation risks make U.S. treasury, corporate, and municipal bonds a fool’s bet. There is little to gain and much to lose. The know-nothing investor who buys a top-quality bond today and holds it for decades may very well find his purchasing power diminished.

There may be some select opportunities in foreign equities. But, these are difficult to evaluate. Foreign government obligations are also difficult to evaluate, but that isn’t much of a problem for value investors, because most foreign government debt is priced to perfection. You’ll have to be willing to take a lot of uncompensated risks if you want to own such bonds.

Of course, there are exceptions to every rule. There may be a few bonds out there that are attractive. There certainly are a few attractive stocks out there. But, even those stocks that look very attractive relative to their peers don’t look nearly as attractive when compared to past bargains.

Value investors face a difficult choice. They can assume stock prices will return to historical levels, and hold cash until the correction comes. Or, they can accept the reality they currently face.

There is no logical reason stock prices must necessarily return to historical levels. During the twentieth century, real after-tax returns in diversified groups of common stocks were very high relative to other investment opportunities. There have been various reasons given for why this occurred. Many have said these returns were possible, because of the higher risks involved in holding equities. Over the long-term, risks were somewhat higher than today’s investors seem to remember, but they were hardly severe enough to justify the kind of performance spreads that existed during much of the twentieth century.

True, if you bought at inopportune times, it was possible to remain in a fairly deep hole for a fairly long time. But, if you gave no real consideration to the timing of your purchases or the prospects of the underlying enterprises, you did better than many bondholders who chose their investments with the utmost care.

This is a disconcerting problem. It may be that most investors are overly sensitive to the risk of an immediate “paper” loss in nominal terms, and therefore overlook the much greater risk of a gradual loss of purchasing power. Issuing fixed dollar obligations may be the best bet for any business or government that seeks to swindle investors.

For the sake of the common stockholders, I hope many of the best businesses continue to issue such obligations when money is cheap. Corporate debt gets a bad name, because it tends to be overused by those who don’t need it and shouldn’t want it (and, of course, by those businesses that do need it but won’t survive even if they get it). The businesses that would benefit the most from the use of debt usually appear to have more cash than they could ever need. But, it’s best to think ahead. For truly high quality businesses, the cost of capital will fluctuate far more wildly than the likely returns on capital.

If, during the last hundred years, stocks really were far cheaper than they should have been, is there any reason to believe stock prices will return to past levels? The past is often a pretty good predictor of the future – but, not always. It’s difficult to say whether, over the next few decades, valuations will, on average, be higher or lower than they are today. However, it isn’t all that difficult to say whether, at some point over the next few decades, valuations will be higher or lower than they are today. The answer to that question is almost certainly yes. They will be higher and they will be lower. Maybe for a few years or a few months. Maybe for a full decade. I don’t know.

What I do know is that value investors will have opportunities to make investments with a true margin of safety. But, should they wait?

That’s the most difficult question. Today, I am not finding opportunities that look particularly attractive when compared to the best opportunities of past years. But, I am still able to find a few (in fact, a very few) situations where the expected annual rate of return is greater than 15%.

That will be more than enough to beat the market. It will also likely be enough to provide a material increase in after-tax purchasing power. That’s not guaranteed, but it hardly seems holding cash would offer the better odds in this regard.

So, is an expected annual rate of return of 15% good enough? Is it reasonable to bet on the good opportunity that is currently available instead of waiting for the great opportunity that may yet become available?

I’ll leave that for you to decide.

Title: Stocks Bonds Investing-Which Is Better?

Word Count:
436

Summary:
Many investors are looking into stocks and bonds investing for their financial needs. So which is better-stock or bonds for investing? When it comes to this form of investment, it is really all about your personality and individual needs.

First of all, bonds are almost always a safe investment, at least when you do so with a reputable company that is making good money. When you take out a bond, you are essentially lending money to the company, in exchange for getting your …

Keywords:
stocks bonds investing

Article Body:
Many investors are looking into stocks and bonds investing for their financial needs. So which is better-stock or bonds for investing? When it comes to this form of investment, it is really all about your personality and individual needs.

First of all, bonds are almost always a safe investment, at least when you do so with a reputable company that is making good money. When you take out a bond, you are essentially lending money to the company, in exchange for getting your money back with interest at a certain date.

Most of the companies on the stock market are relatively safe in this form of investing. It certainly isn’t 100% guaranteed, especially if the company goes into bankruptcy. However, you can be reasonably sure of turning a profit.

A bond is really best if you want some short term money, in order to make a purchase, preferably within the next couple years. The reason these are great for an upcoming purchase is that you can be almost sure of making money in return. With a stock, you aren’t so sure of making a gain short term.

However, when you are investing in stocks the right way, you can be just about guaranteed to make a profit, albeit long term. Here’s how to do that: first of all, limit your investing to companies that have exhibited a long and profitable history, and eliminate the companies that haven’t.

Most investors have the mistaken belief that you can only make a fortune investing in the smaller, riskier stocks. In reality, whenever you invest in these smaller companies, you run a big risk of losing a lot of money, because they haven’t proven they can be successful over the long run.

Sure, some of these companies may turn out to be the next Microsoft, but it is very difficult to spot these diamonds in the rough beforehand; you always are at a big risk with newer, unproven companies. Once you’ve limited your search to a specific range of well run companies, then look at the stock price.

If the company is selling at a low price relative to it’s overall worth, then invest in it, and hold it for the long term. You wouldn’t want to use this strategy if you need money within the next few years, because short term the market always values companies according to how investors feel about them; however, in the long run, companies are always valued according to their profitability. Therefore, determine what your financial needs are, and make your stocks and bonds investing decision accordingly.

Title: Stocks And Shares – How To Trade Profitably In A Bear Market

Word Count:
527

Summary:
Many traders find they can make money trading in bullish markets, but when there is a major correction underway or when the market has turned bearish, they literally freeze and are unable to trade successfully or find profits in their trading. Discover how you can trade profitably in a bear market and not be slaughtered.

Keywords:
trading in bearish markets, bear market trading, market collapse, downtrend trading, range trading, swing trading for gigantic profits, range trader, Swing Ranger software

Article Body:
Trading in a bull market is easier than trading in a bear market. Many traders find they can make money trading in bullish markets, but when there is a major correction underway or when the market is bearish, they literally freeze and are unable to trade successfully or find profits in their trading.

First,when a market has collapsed, it is important to accept the fact that the market trend has changed from bullish to bearish. It is human nature to find scapegoats or to find a “reason” or to rationalise away the fact that the market trend has changed. But unless the trader accepts the fact that he is solely responsible to trade his way out of a bearish market, he will find his position untenable and discover losses that add up daily as the market bearish sentiments continue. It does not pay to refuse the responsibility of your own trading action and put the blame on your broker or your friend who has given you the “tips” that led to your losses.

If you are faced with losses from a sudden collapse in prices, accept that it is your responsibility to now institute action to get out of this situation with profits.

Secondly, while in bullish markets it is easy to trade by just buying stocks that are in initial outbreaks and just holding them and coming back again after a few days to reap profits, you cannot do the same during bearish markets.

In bullish markets, you trade with the trend, and as long as the trend is up, you stand to make easy profits. On the contrary, in bearish markets, the market goes into consolidation, and trends are “shorter” in duration or the market will go into a sideways direction, with prices oscillating between ranges. During bearish markets, we are more biased towards range trading rather than trend trading. So if you do not know how to change from using trend trading to range trading, you can be caught with short term trend changes and suffer whipsaws and lose money trend trading during bearish markets.

Dealing with traders who have gone through a series of major market corrections since 1987 has led me to conclude that there is no room for lackadaisical trading during bearish markets. The margin of error for a trading signal is much lower when trading in a bearish market. I have seen traders who are able to quickly change or adapt from longer trend trading to trading shorter swings in the market or range trading to be able to make money from their trades. In bearish markets, they are contented with smaller profits, but trading more often and in higher volumes. To aid in their margin of profits, they are able to negotiate the lowest brokerage terms possible with their brokers or to use discounted online trading platforms.

In bearish markets, the trader who range trade will be the one who is best positioned to take advantage of the shorter and faster rebounds that occur as stocks get oversold and retrace upwards. Accepting personal responsibility and adapting to range trading will improve his chances to make money during bearish markets.