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How to Make Sense of Stock Market News

When you hear a news anchor on TV talking about stock market new developments, they usually include terms such as the Dow Jones, or the NASDAQ, or the FTSE in their report. What do these phrases and abbreviations mean?

These terms refer to stock markets or stock exchanges where a company is listed. A company must be listed on a stock exchange for its shares to be traded publicly. After a company’s shares are released to the public in an Initial Public Offering (IPO), they are then available for the general public to be traded at the stock market. New York Stock Exchange is probably the biggest stock market in the US, while the FTSE holds that honor for Europe.

When people ask: “how is the stock market doing? What are the latest developments?” they mean to ask how the stock market index is performing. Stock market indexes are the key indicators to the performance of any stock market.

A stock market index, at its simplest, is the cumulative stock prices of the companies trading divided by the number of stocks traded to achieve an average indicator of stock market performance.

 Examples of popular US stock markets indexes are the Dow Jones Industrial Average, the NASDAQ composite and the S&P 500.

The Dow Jones lists the stocks of 30 companies, ranging from food giant McDonalds to bankers like Citigroup to entertainment firms like Disney.

The Nasdaq composite tracks 5000 companies from different sectors, but its mainly focused on the technology stocks.

The S&P 500 measures the stock of 500 of the largest public companies. They are categorized as the largest according to their market value. The S&P 500 is actually considered a pretty solid indicator of overall stock market performance since they cover companies from a broad base of sectors.

Indexes form the basis of the stock market. New investors are often advised to invest in these “blue-chip” stocks that are traded on either of the above three stock exchanges because they offer great stability and the chance of a regular dividend income over time.

Some of the most popular international stock market indexes include the FTSE (Britain), the Nikkei (Japan), the Hang Sang (Honk Kong), the DAX (German) and the CAC (France).

Because stock market indexes give a great snapshot of the stock market, they are used as indicators to gauge stock market performance. Beginner investors that not only invest in individual stock, they can also invest in mutual funds, which are representative stocks of a certain stock market index. Mutual funds are marginally safer investments because they group together stocks that perform roughly the same way, and are professionally managed.

You now have a better understanding of the stock market, new insight into the workings of stock market indexes and an informed take on issues facing beginner investors. This knowledge will help you make sense of the financial terminology heard everyday on TV and read in newspapers so you too can become a savvy investor.


With Caution, High Yield Investments Can Bring Great ROI to the Investor

High-yield investment can turn out to be very rewarding for investors. Although there is a certain amount of risk involved in high-yield bonds investments, they can also be very profitable for investors if they are targeted towards companies that have the potential to recover from their financial instability.

A high-yield bond, also known as a junk bond or non-investment grade bond, refers to debt security that has a very low rating. High-yield bonds are usually rated below BBB (according to Standard & Poor’s) or Baa3 by Moody’s; therefore they have a rating lower than the investment grade. Investors have access to high-yield bonds either through mutual funds or through individual business investments. High-yield bonds investments through the means of mutual funds are considered to be a lot safer, as they considerably reduce the chances of investing in non-profitable business trusts or companies. High-yield investments can become very profitable, as they can sometimes produce returns higher than those of solid, above investment grade bonds.

Companies that experience a temporary regression, going through less favorable financial situations, usually offer high yields to investors, in order to gain their interest. The trick in high-yield investments is to choose the right companies! Target your high-yield investments towards companies that have the ability to recover from their financial difficulties. For instance, you should avoid high-yield bond investments in companies that are constantly having difficulties in maintaining their position on the market. It is advised to invest in more powerful companies that have the ability to overcome their financial crisis. By investing in such companies through mutual funds, the risk of failure is considerably reduced.

High-yield bonds are a great opportunity to increase investors’ profits and they are also a good way of expanding business portfolios. The interest rates of high-yield bonds are also a lot more stable than those of investment-grade bonds and therefore they can build a stable, predictable income. Although high-yield bonds are exposed to some risks, investors are the first ones to benefit from debt insurance, therefore minimizing possible financial losses in case of bankruptcy.

If they are carefully speculated, high-yield bonds can become very lucrative and can also expand the investors’ business portfolios. High-yield investments should be always closed through mutual funds, in order to minimize the risks of investing in financially irregular companies. If they are targeted towards the right companies, high-yield investments can be very rewarding in time!


8 Stock Market Basics for Beginner Investors

What is the stock market? Why is it important? How can I make money learning stock market investing tips and tricks? As a beginner who’s interested in learning about the stock market you first need to familiarize yourself with stock market basics.

These 8 stock market basics are the foundation for understanding how the stock market works, why it’s important and how you, as an investor, can leverage it for profit. Read these tips to increase your knowledge of stock market basics.

What is Stock?

Simply put, ‘stock’ means to own a part of a company for personal profit and growth. Since you buy stock and therefore “invest” in a company, you also get to reap the benefits of earning a part of the company’s profits.

The Stock Market Defined

The stock market is a market where stocks are traded. Just like the super market is a place to buy and sell groceries, a stock market is a place to buy and sell stock.

What is a Stock Exchange?

A stock market is also called a stock exchange. You may have heard of the New York Stock Exchange (NYSE), the London Stock Exchange (LSE) or even the Honk Kong Stock Exchange (Hang Sang). So stock exchanges are international places where a company’s stock may be traded. They can be physical buildings but they can also be electronic exchanges, such as the NASDAQ, which is an online stock exchange.

What Types of Stocks are traded on the Stock Exchange?

There are basically two types of stock: common stock and preferred stock. Common stock, by definition is more common and it denotes variable dividend payouts and one vote per share to help determine a company’s managerial decisions. Preferred stock denotes fixed payout (called dividends) over the length that stock is held and may not have the same voting rights. Common stock is generally considered riskier because dividend payouts are dependent on the company making a profit. If the company goes bankrupt, common stockholders are amongst the last to be paid, if at all.

Why Do Stock Prices Go Up And Down?

Stock market basics tell us that stock prices fluctuate because at any given time, some people might be selling large quantities of stock (driving demand and prices down) while others might be buying stock (driving demand and prices up).

How to Pick Winning Stocks

Generally if you pick a company who’s doing well financially, is stable and has great growth potential, then your chances of picking a winning stock are high. You should also pick stocks in industries that are doing well, so for example if there’s a boom in the alternative energy industry, you might pick stock in a company harnessing wind or solar power.

What are Stock Tables?

Once you have picked your stock portfolio (made up of many stocks in various companies), you should monitor them on a daily basis via stock tables. A stock table is a summary of how your stocks are performing on any given day and can be found in your local newspaper or on online financial sites.

What Makes Stock Investing Risky?

If the company does badly, you could lose your investment, but if the company does well, you can exponentially multiply your profit. The skill in stock investing lies in understanding which stocks are too risky and which are relatively less risky. There is no such thing as completely risk free because you cannot individually control what happens to a company or to the economy.  You can only control your own investment decisions.

Before investing, every beginner should read up on these stock market basics because an informed decision is a potentially money-making decision. With these basics you are now ready to delve further into the lucrative world of stock markets!


How to Make Money in a Bad Market

Investors have plenty of choices when it comes to making money, so when one market heads south, they simply shift their investing strategy to an investment that will make them the most money and life goes on. Sounds easy and simple enough, right?

But how to make money in a BAD MARKET? I mean when all markets are bad at the same time?

Here are just a few of the investment choices you can choose from:

• Stock Market – Until recently it seemed like a good bet for rapid equity appreciation. Then the bottom fell out and depending on when you get into the market – you could lose money for a very long time.

• FOREX trading – Another choice that has gained in popularity during the past few years is currency trading. If you successfully place your bets you stand to make a ton of money fast.

• Franchising – When the market is bad, some investors decide to start a business of their own or buy into a franchise. Unfortunately, franchises will charge you up to $50,000-$100,000 for the privilege of putting up a sign.

• MLM – Some investors decide to take a whirl at making money with one of the multi level marketing schemes only to discover the truth: While you can make money in MLM, most don’t.

These investments can be more than a little scary , so a lot of would-be investors turn to REAL ESTATE for solid growth opportunities and the hope for a more profitable future.

So if you are asking yourself how to make money in a bad market, look into real estate. Even in a terrible market, you can make money in real estate investing.

By investing smart, you can reduce much of the risk that real estate can pose. And real estate investing makes it possible to turn a profit at every turn – when you buy, if you hold, and again when you sell.

Probably the best reason for pulling the trigger today on real estate investing is the fact that you’re in control every step of the way.

So turn the corner today and start reaching for your financial goals. Real estate investing is the vehicle you’ll use to reach your financial destiny. So get in, buckle up, and hang on!

How to make money in a bad market? Do NOT gamble! Put your money on a sure winner. Real estate investing has created more millionaires with less risk than any other investment out there. Will you be the next one?

How to make money in a bad market in real estate? Opportunities are everywhere – foreclosures is the big one. Discover more about auctions, foreclosures and how to increasy the property value.

Having the Right Attitude when Investing in Real Estate

With the right methods, coupled with perseverance and hard work, investing in real estate is a great way to improve your financial status. You can earn a considerable amount of money without having the need to work at least eight hours a day. If done correctly, there is a big chance that you can be among the richest and wealthiest in the country.

Being a real estate investor is really not that complicated. You don’t need a doctorate degree from some prestigious university or become a rocket scientist just to make it big in the real estate investing business. In fact, some of the most successful investors in the country today are college dropouts and they are still doing great despite their lack of formal education.

If you plan on investing in real estate, meanwhile, here are some traits and qualities that you should consider developing to ensure your success:

  • Willingness to learn – while it is true that some veteran real estate investors were not unable to finish their schooling, it doesn’t mean that they stopped expanding their knowledge the moment they left school. As the saying goes, knowledge is power and having this power can help you reach new heights and overcome difficulties easily.
  • Have self-confidence – having a profound belief in yourself can make significant contribution to the advancement of your career. Just like what the experts used to say, what the mind can conceive, the body can achieve. So if you think that you can make it big in the real estate investing business, then you can really make it happen.
  • Goal-oriented – Those who have become successful at investing in real estate knows the importance of having a goal and working towards the fulfillment of that goal. Thus, to make sure that you will reach your target, you have to make a sound plan and do the things you have to do to make it work.
  • Have people skills – when investing in real estate, it is important to develop social skills because it can help you negotiate with home buyers and sellers easily. Befriending your fellow real estate investors can give your real estate investing career a boost because they can give you various hints and tips.
  • Possess patience and dedication – like in any other profession, being committed to your chosen line of work can definitely help you reach the top.
  • If you find this article helpful, you can read more information on real estate investing on www.Rehab-Real-Estate.com. The website is home to quality articles and videos that can help you become a better real estate investor.

    What is the Stock Market and How Can it Make You Money?

    The stock market is a great place to make money using sound financial decisions and market research. It is important to know what the stock market is all about and how it can help you retain and build wealth.

    When a company is doing business and doing it well, at some point they think about expanding their business to attain greater profits. Business expansion requires more money or capital expenditure. There are two ways a business can get this money: either though a bank loan or by making the company public (“going public”).

    “Going public” means that the company is inviting the public to own a share, also called stock, in the company. How does the company get this stock to the public? It does it by offering it at a stock market.

    What is the stock market? A stock market is a place that brings together many different companies selling shares and many different buyers buying shares. It is convenient to carry out this exchange in a stock market rather than go through the hassle of negotiating and bargaining with each buyer and seller individually.

    What is a stock exchange? A stock market is also called a stock exchange. Companies list their shares on the stock exchange so that buyers and sellers can easily and conveniently trade them. The New York Stock Exchange and the NASDAQ are examples of stocks exchanges in the US. Shares are traded (bought and sold) at the stock exchange without the direct involvement of the company. The buyers and sellers of shares can use a stock broker to buy and sell shares. A stock broker is a person who earns a commission for performing this service: he buys and sells shares on behalf of shareholders.

    You can also bypass a stock broker and buy and sell shares directly through an online stock market. You simply make a free online account on a site like Ameritrade and start trading – setting up is that simple!

    How can you make money from the stock market? The basic reason for understanding the stock market is so you can make money from it. Since you buy shares in a company, you are entitled to receive a part of the company’s profits. You can also lose money on the stock market if you buy shares in companies that are not doing well or go bankrupt. You want to maximize your profits by buying only those shares that are likely to appreciate (increase) in value. You also want to minimize your risk by buying shares in companies that will be likely to do well.

    What is the stock market analysis? A stock market that is trending upward, where share prices are rising and earning money for stockholders is called a bull market, whereas a stock market that is slumping, with plummeting share prices and a gloomy outlook is called a bear market.

    Generally speaking, the longer you hold on to stock, the better the chances of profiting from it over the years. Holding stock for the short term (1 year or less) is considered volatile and risky, whereas holding stock for a long term is considered an investment.

    Understand what is the stock market and you will understand how to use it for investment purposes. A wise investment made in the stock market today can bring you a stream of money for years to come!

    Investing in Penny Stocks

    Penny stocks investing is sometimes considered “risky”. These stocks have the potential to make great sums of money in a short period of time. On the other hand, you can lose money rather quickly too. All too often, people invest money into these stocks thinking they are going to get rich overnight. They pick their stocks based on a gut feeling and end up losing money on their investment. Why do these people lose money? Because they aren’t doing the proper research.

    Stock investing software is a great tool to enhance penny stock success. The most important thing in penny stocks investing is research, and these software programs can perform a substantial amount of it. In fact, they can outperform a professional stock analyst ten fold. Stock investing software is a sure way to get ahead of the game.

    Which stock investing software you use will determine how profitable you will be. However, keep in mind that no software program can guarantee success. The program is simply making predictions based on the stocks trends and history. Therefore, like all investments, there is the chance of loss. For the most part these programs will greatly increase your chances of success.

    If you are currently involved in penny stocks investing, or if you want to get into it, this tool will greatly increase your success rate. If stock investing software cost too much for you I suggest subscribing to a penny stock newsletter. If you don’t have the knowledge to personally research the stock market to find a profitable stock, I recommend using one of these useful resources.

    Learn To Invest In Penny Stocks

    More and more people are interested in investing in the stock market to improve their financial gains. However, there are literally thousands of stocks to invest in the stock market and most people have a tough time picking the best companies. This is especially so for newcomers to the investing world. Many people, especially newbies to the stock market, have started investing in more small-capital, or penny, stocks. There are various penny stocks that are available for people to trade, although the danger is much higher than with the many other typical big-board stocks on the market. If you have also made the decision to invest in penny stocks, you will want to know which ones are the best to invest your money.

    It is imperative to know before you start trading penny stocks that the top penny stock picks can change quickly from one day to the next. Of course, this means that the volatility of penny stock trading is much higher than usual, but you can use some techniques to find the best penny stocks that are worth the time and effort to invest in the stock market. Rule number 1 is to do your due diligence on any company that you are thinking about buying or selling. This is a good rule to follow when you are making any trade in the stock market. Look for penny stock companies that have good, and preferrably audited, balance sheets (which can sometimes be impossible to locate). Strong cash flow, a decent net income and assets that have been stable for at least three years are all excellent qualities that should begin to calm your ‘is this a scam?’ fears. Research the stock through several different sources. Their own web site is always a first place to start. You should also find information, such as a variety of financial statements, at the Securities and Exchange Commission site. Never invest in any stock that you have not yet researched and analyzed for yourself.

    To find good ideas on where to start to invest in the stock market, you can always consult newsletters, online forums, and blogs as well. It is imperative for you to remember that all of the information that you find on these forums, blogs, and newsletters may not be correct. Therefore before you invest in the stock market, you must always do your own due diligence to follow up on the information you find on forums, blogs and newsletters. There are times when you will find accurate information and good leads on these web sites, but you must remember to never make an investment blindly. As with investing in any sort of company in the stock market, you will want to look for chart patterns within the penny companies. Many movements of penny stocks are predictable and you need to be able to recognize these movements and use them to your advantage. This will not be an easy project, of course. Researching stock statements and patterns in the stock market can take weeks or months, but your patience will reward you.

    Picking Penny Stocks

    Before investing your hard-earned cash into penny stocks, it’s important to research the penny stocks you want to invest in before committing any cash. You want to find profitable penny stocks. To do this, you’ll need penny stock leads. Leads are just names of penny stocks that you are thinking of investing in.

    There are many ways to get penny stock leads. For example, searching the internet (blogs and forums), joining a penny stock mailing list or keeping an eye out on the news. The main idea is to build a list of around 5 to 10 quality leads that are worthy of your money.

    After you have a list of leads, you’ll want to choose one or two of them. You’ll need to go through your list and discard stocks which do not meet your criteria. This process can be tedious but it will be well worth it in the end.

    The criteria to look for includes – company history, business plan, opinions of individuals and experts, financial information, competition, track record of the board of directors, company reports and broker recommendations. Using the variables, you can quickly establish whether a particular stock is worth investing in.

    Once your list has been cut down to 1 or 2 stocks, ask for opinions from other people to confirm your selections. It is very important to listen to the views of other investors because, in most cases, they’ll have something valuable to contribute to your research. Perhaps, you missed out a vital piece of information which other investors could highlight for you.

    Now that you have 1 or 2 stocks out of your original list of 10, you should feel confident that you’ve done your due diligence and you should be ready to invest. If you use this process every time you’re investing in penny stocks, it should prove to be simple but profitable.

    How to Read Stock Charts: A Stock Trading Guide for Beginners

    If you are a newbie in the exciting world of stock trading, then one of the first things that you must do is to learn how to read stock charts. In fact, stock charts are the first items that will hit you as soon as you start working with stocks. It is crucial that you develop the competency in reading and interpreting stock market charts as these are your veritable lifeline to a financially rewarding stock trading activity. It is important that you are able to get a clear understanding of historical information and trending in the stock market.

    Before you even have to start learning how to buy stocks, it is essential that you consider those huge number of stock market charts that are extensively being used by stock market experts in predicting future stock prices. In fact, their expert opinion and recommendations are largely based on the trends indicated by these charts.

    The phenomenal leaps and advances in the field of information and communication technology has brought about a more convenient setting by which we can access the critical information and data related to stock trading. In fact, there is now a wide array of online programs and software applications which can churn out a wide range of stock charts that you need with the use of appropriate stock quote or symbol.

    Further, we are now seeing the emergence of more complex stock charts which cover figures and data beyond the traditional 60 and 90-day stock price trends. This means that learning how to read stock charts is not only an exclusive concern by beginners as even the seasoned players in the stock market need to keep up with these major developments in accessing and interpreting more sophisticated sources of information.

    For instance, you will need to use advanced applications if you pursue interesting details like the use of the Fibonacci sequence in predicting stock reversals. So before you start thinking of the best way on how to buy stocks, it is incumbent upon you to start looking for the right tools in accessing the appropriate stock charts that you need in making an informed choice.  As a starter, your standard will be the stock market charts that will provide you stock prices based on a defined timeframe. You will also have to look at stocks charts that give you the Dow Jones 30 or S & P indices.

    The truth of the matter is that learning how to read stock charts will slowly become an art form. There will always be an opportunity for you to learn new things. Even financial experts believe that it will take several years before you can become a master in reading and interpreting stock charts. You might be wondering if there is a really need for you to learn how to read stock charts. The answer is a resounding YES. Stock charts are your way in determining what those “big money earners” are presently doing. Your interpretation of the information you get from these stock charts shall be your basis whether it is safe to invest your money on a particular trade or not.


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