Trading Tips For Beginners

Most of the people physically go to their bank and investing in stocks. But the internet has democratized the stock investment and there are so many online trading services available right now anywhere in the world. They put it at our disposal; interfaces to purchase on a click of our mouse button and thereby increase responsiveness. The support is very important for this kind of virtual accounts. Most of the agencies offer online training and are furnishing stock analysis also. If you are a fresh hand then definitely you should join the forums to gather the user reviews about the market trend and the individual script. Before joining to any of the online trading services you compare the pricing, brokerage fees and other hidden charges. There are expenses that are applied to any order, either a purchase or a sale. Most of the online brokers give you access to different in vehicles, each of these has its own tax and service charges. Select the best which suits you. There are some specific rules to follow: Do not invest all your money at a stretch. Diversify your portfolio in different sectors. Do not set your goals too high (Don’t be Greedy). Learn how to make gains by selling even the market is weak. Keep up to dated in the market news and be responsive to that. Don’t follow the herd, judge and make your own opinion. Don’t hesitate to get the expertise suggestions and information.

Most of the people physically go to their bank and investing in stocks. But the internet has democratized the stock investment and there are so many online trading services available right now anywhere in the world. They put it at our disposal; interfaces to purchase on a click of our mouse button and thereby increase responsiveness. The support is very important for this kind of virtual accounts. Most of the agencies offer online training and are furnishing stock analysis also. If you are a fresh hand then definitely you should join the forums to gather the user reviews about the market trend and the individual script. Before joining to any of the online trading services you compare the pricing, brokerage fees and other hidden charges. There are expenses that are applied to any order, either a purchase or a sale. Most of the online brokers give you access to different in vehicles, each of these has its own tax and service charges. Select the best which suits you.

There are some specific rules to follow:

 

Do not invest all your money at a stretch.

Diversify your portfolio in different sectors.

Do not set your goals too high (Don’t be Greedy).

Learn how to make gains by selling even the market is weak.

Keep up to dated in the market news and be responsive to that.

Don’t follow the herd, judge and make your own opinion.

Don’t hesitate to get the expertise suggestions and information.

Stock Trading Tools

Before venture into share trading you have to know the basics of technical analysis. There three basics in technical analysis. The first and for most one is Japanese candlesticks. The graph of the stock price gives us some information. It rises and falls in a zigzag manner. The main advantage of Japanese candle sticks is, it provide us a direct reading about the psychology of the traders. This can decrypt the price movement over a given unit of time and can infer, in which side the market is in favor of? i.e. in favor of buyer or the seller. To construct a candle stick we have to connect the opening price at the closing of a trading secession usually daily. What we call this as true body if the market is bullish the graph is white and if the trend is bearish the candle will be black. From the color variation we can distinguish whether the market is increasing or decreasing. The extremes of the market session are represented by the thin lines called shadows. Form the different forms of the candlestick we can judge the market trend.

 What is interesting is the combination of Japanese candlesticks. For example, assume three Japanese candlesticks in succession, therefore the ‘real body’ is becoming smaller and the shadow is longer and longer. This implies the buyers are losing hand to the sellers and the reversal is going to happen naturally.

 Apart from this, for a better trading we need to know the market namely, the areas on which course many buyers appear and where the sellers offload. The support level is the price level which is horizontal where by the market is sufficiently attractive to the current buyer develops.

Resistance is opposite of the support level of prices where the selling price mounts which leads to the decline in the price. The support and a parallel resistor forms a channel, that is why we say buy at support and sell at resistance. A support and a parallel resistor form a channel. It is for this reason that they say you have to buy support and sell resistance.

 Other one we should know in the stock market reading is Moving averages. A simple moving average is an arithmetic average of the last x periods. For example a fifty days moving average is equal to the arithmetic average of the last fifties taken daily. It is called moving because in each period the new one replaces the course of the old one and this process continues. When the price breaks to increase the level of the moving average we can say the short term trend is reversing towards the trend is increasing in the medium term. This trend is favorable to the buyer. Conversely, when the price breaks down the level of the moving average, we say the short term trend is reversing towards the trend towards lower medium term which is favorable to the seller.

Don’t Buy Gold!!!

    Why should we not buy gold? There are so many reasons not to buy gold. One of the first reasons is that gold does nothing, and it remains in the bank or in our locker. The only reason we are buying gold is that we are very sure that we can sell it to the higher price in future. In very recent article Warren Buffet said that the growing fear of loss and confidence in the market has motivated the practice of buying gold. Since the financial crisis of 2008, the gold prices have continued to climb. The lack of confidence in the global financial markets has let people to want something more concrete that cannot fail has placed gold into that place. As on June 2012 one kg of gold was about 41,525 Euros.

     Since the people hoped that future economic policies and the continued push for the progress will make gold as a profit buy. We don’t know when it will plunge. This is a risky game investing in gold. Globally the central banks of each of the county don’t want their people to invest in gold which openly displays how their people reject their paper money and hence they will act swiftly on day or the other. If the trend continues to be volatile then the governments will announce a very debilitating tax on this yellow metal to break the upward movement. If the gold market tend to monotonically increase then it will be good to the investments in stock markets. If the stock markets continue to fall then it will ensure a good appreciation in near future. Since the stock market is unpredictable when compared with the gold trend which followed a significant increase that lead to a bubble.

 Most of our readers aware that market is drive by the two namely fear and greed. Now we are in the middle of fear cycle. When it ends the cycle of greed starts immediately. If the gold bubble happens the gold price will fall and people will sell in bulk and they will forced to buy securities and therefore the stock’s price will increase. Hence it is ideal to buy gold as a small portion of our assets.

What strategy to be followed in Stock trading?

           Generally most of the large traders and share market investors had gained some shots of huge money. It is not a mere coincidence that those rich people are skilled somewhat, the fact is those rich people used the leverage provided by the financial markets. The great people such as Warren Buffet have been followed successful investment strategies which allowed them a great success in the market. Many books have been published about them and their trading secrets and technique and countless of peoples analyzed the secrets of their technique in stock trading.

      Apart from them hundreds of thousands of people around the world claim to have the best trading strategy to generate steady gains, if it is so then what is the correct key to wealth? And what is the best investment strategy to follow? Most of the successful personalities give the following tips: Diversity is remarkable investment strategy to follow. This illustrates the fact that it is not a holy grail. Hence we can conclude not a single investment strategy is better than the others, hence we have to shape our personal investment strategy accordingly to move towards the success.
    
Your own strategy will not be best suited to your fellow trader, hence everyone have to be very comfortable with the technical analysis of the market to tailor his own strategy. The technical analysis helps you to find out the clear picture of the company, their organization, their financial activities and others, their strategies etc. The technical analysis further helps you to predict the future trend in stock price. This kind of approach leads you towards success and success alone. A good investor should have a long term vision but he must be aware of both short term and long term views since both of them have their own merits and de merits. Once you are accustomed with your own technique for successful trading then stick on it and make necessary adjustments now and then if needed and over the time you refine your strategy of trading and knowledge then Success will be at your door steps.
                                                Happy trading!!!

Financial deregulation and Housing Bubble

From 2007, the outstanding performance of the financial institutions gave way to the bursting of the housing bubble. Real estate whose fees have a permanent character and recurring such as rental management and property administration resisted but the pace of transactions and starts declined sharply. This has caused an awareness on the part of banks reacted in: Stopping the acquisitions or investments in the real estate sector; Closing some real estate agencies; Restructuring their activities to promote consistency and readability of various trades; In addition, buyers found that they could not (for regulatory or governance) or failed to make the synergies that were announced and anticipated between the Bank's businesses and real estate. The real estate crisis has significantly slowed the enthusiasm of Banks. However, they must adapt their distribution model to the development of brokers. Indeed, the market share of the brokerage has grown steadily in recent years at the expense of traditional banking channels to locate currently around 22% of loans in Europe. This reflects an underlying trend as evidenced by other European markets where brokers capture 30% market share in Germany, 55% in Spain, 60% in the Benelux and even 66% in Britain. This figure reaches 70% loan in the United States. Brokers will therefore still snatch market share to banks pocketing pass finder's fees and thereby reducing margins to bankers. The temptation to control the upstream chain is always present. For this purpose, banks may acquire brokers. However, this strategy undermines the necessary independence of brokers and therefore generates a significant commercial risk (which could partly explain the current difficulties in the online broker). The alternative lies in the implementation of partnerships as do several networks developing funding in areas such as real estate agencies. Some banks even completely integrate the entire chain, from start to finish, offering new "space property" bringing together in one place all relevant interlocutors customers for their real estate projects. These "megastores estate" virtual or physical, may well be the response of banks to prevent erosion.