Terms used in Stock Trading

By Mara Hernandez-Capili

If you are new to stocks trading then it is imperative for you to read this article. This article is written to provide you with the usual terms used in stocks trading. To give you a fresh recap: stocks trading is the buying and selling of stocks. When you buy a company share or stocks you are considered as a part-owner of the company where you get to enjoy privileges like voting rights.

A capital gain is the term used to describe the increase that your capital received because of the increase in the companys profits. It is usually what investors are after that is why they invest through stocks. Stocks can have high capital gains depending on how many shares were purchased. The higher the shares, the greater the capital gains if the market increases value.

A buy and hold strategy is the term to describe when an asset is bought and hold for a long period of time because of predictions or assumptions that a company will perform best in a few years time. Some people exercise this strategy while some dont, for they would not want to wait long enough to access their capital gains. This strategy remains the capital untouched regardless of the rise and fluctuations in the market.

Current market value is the term used to describe the current worth of a share in the market. This is not fixed in value because fluctuations in the market generally affect the price of shares. A strategy most people like to use is to buy shares from a newly established company where the rates are at a minimum. If the company starts to gain its value in the market, shares dramatically shoots up leaving the investor happy with high capital gains.

The last term is the aggressive term. It is used to describe the way an investor invests in high risk shares. The greater the number of shares you purchased, the higher the risks involved. This is mostly played by sophisticated investors. - 23221

About the Author:

Mara Hernandez-Capili is a writer and a researcher on Business and Finance. Learn more on how to increase your financial I.Q. by learning about emini trading today. Start earning extra income by making your money work for you through the emini trading system. "Start your journey to financial freedom not tomorrow, not next week, but today.

The Truth About Forex Scams

By Jack Sawyer

What makes for Forex scams? A lot of people think that any Forex trading system, informational product or service which fails to make them rich beyond their wildest dreams overnight must necessarily be a scam. These are generally the same people who flee from get-rich-quick scheme to get rich quick scheme, constantly disappointed because they fail to get rich. These people are unwilling to spend ay kind of time or effort learning how to make a product or service work for them and they just accuse them of being Forex scams. There is no such thing as a system which will make you rich overnight. Think about it for a minute ? if there was such a thing, wouldn?t we all be using it already? This system would also not continue to work so well for long ? it?s a matter of elementary economics.

If there is money being made, it is coming from somewhere. Unlike technological innovations which can create wealth through new production models, all currency trading is a zero-sum proposition. If someone is making money, someone else is losing money.

There are always losses being taken by individuals and institutions who are either unaware of the currency exchange market or cannot for one reason or another allow exchange rates to dictate their activities. You wouldn?t put off a vacation because of exchange rates ? and businesses also cannot wait for favorable currency exchange rates to import or export goods. It?s just not a possibility for each and every Forex investor to get rich ? simple as that.

The next time you?re reading through a web forum on the topic of Forex and you?re trying to decide whether or not the negatives you?re reading about a given product or service mean that it is one of the Forex scams, you should think about how things work in the ?real? (offline) world.

Let?s say that you buy a book on Forex trading from your local bookstore. You read the book, apply what you have learned and find that it doesn?t work for you. Maybe the information here is out of date, or it simply didn?t work for you for another reason. You?d probably just chalk it up to a lesson learned and try something else. What you wouldn?t do is to angrily run down to your local bookstore and accuse the owners of operating a scam.

However, if this same bookstore was urging people to pre-order a new book which they were hyping up and you were to show up on the day of sale to find the bookstore had closed up and the owners skipped town; now that would be a scam.

A scam, according to the dictionary, is 'a fraudulent business scheme; a swindle'. A scam involves fraud and an intention to deceive. Scams are illegal. It is not correct to use this word to describe something offered and delivered in good faith.

With the word ?scam? being thrown around so often, it can be hard to know what products are legitimate and which are not ? this makes people, already a little hesitant of buying online even more nervous. In many cases, products are accused of being scams simply because they didn?t work the way a customer expected. You may take their advice and not want to buy these products; after all, not every legitimate product is a winner ? but it would be wrong to call these products or services Forex scams. - 23221

About the Author:

Author Jack Sawyer has some great suggestions on finding the greatest Forex Software. To learn Forex Trading Online go to http://www.forex-product-review.com.

Trekking the Rough Trading Waters

By Rick Amorey

The world of stock trading may seem amazing, especially in this day and age. With the rise of the Internet, investors can now place their purchases online, which will then be directed to a broker for approval. You can also monitor the market from the comfort of your own home; making the whole process of making money simpler for those looking to invest.

Someone seriously thinking of going into stocks may think that this is the perfect business. There are no employees, no customers, and no products to sell. All you have to do is use your money to make money, knowing when to buy stocks and when to sell them. But while all this is possible in the stock market, this isn't something that can occur overnight. In fact, around ninety percent of investors will end up losing money.

However, even with this deterrent, a lot of people are still interested in going into the trading business. If you are one of them, you don't have to worry as not all is lost. You just have to remember that it's not going to happen within a short period of time. Just be focused and disciplined if you want to get into this business. Yes, you can go into trading, but if you make decisions hastily without any research or consultations from qualified brokers, you'll probably suffer big losses.

And the state of our economy today does not help, either. There's not a more difficult time to get into trading than now. But there is still opportunity to be had even in a time of financial crisis. If you have the discipline to study the current trends, and make the right decisions based on that, then you'll do okay.

The stock market is a bit irregular these days, but it doesn't mean that it's impossible to push through. As a matter of fact, when everything starts to pick up, people with a solid investment portfolio will find themselves at the best position to make money. - 23221

About the Author:

Rick Amorey does not advice you to go for get-rich-quick schemes that are rampant on the Internet! With the help of Emini Trading, you will learn a sound, well-built plan to slowly but consistently earn more and more with trading. Be a part of the Emini Trading System now!

Stock Market Software Info

By Gilbert Stockton

Technology can play an important part in investments today. There are many different types of stock market software out there that helps to reduce investment risks.

Keeping track of all your stock transactions can be very important for tax purposes. It can be difficult to remember all your trades without technology. Excel is fine for keeping track. There was a program created by StockTick to manage your portfolio and keep track of all your transactions called Indigo Wind.

Another type of stock market software keeps track of a stocks growth potential. It helps you decide whether or not sell or hold onto the stock. The fundamentals of a stock are tracked and processed to calculate stock movement. One type of program uses the CAPM, capital asset pricing model, to predict capital return. It can also use sales per/share and profit per/share.

And yet another type of stock program is used for day traders or short term investors. It will use graphs to track stock ceilings and floors to analyze if a stock will increase or decrease. These types of programs can be difficult to use and have more variance in stock prices which involves more risk for the investor.

Some sites offer newsletters to help people determine which stocks to purchase. Often these stocks are chosen by stock market programs and robots. The robots themselves can be very expensive so that is why the newsletter is offered. Often you have to pay a monthly fee to be on such a list. But it is usually cheaper than purchasing the software yourself.

For the novice investor you should do your research before purchasing a stock market program. Read testimonials and talk to other investors who have used the software. Stock market programs can be very useful if you do your research and pick a solid program. Make sure you do your research as a wise investor first though. - 23221

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Learn How To Pick Penny Stocks. Can You tell What Are Penny Stocks?

Moving On With the Trading Race

By Rick Amorey

It's a new and possibly intimidating year, this 2009. The economy is down for the count, insurance companies are screwing people over, and the light at the end of the tunnel is a tiny pinprick in the distance. While the new president in office promises to make great things happen, he's still new at the position, and mistakes will surely come his way. In other words, we may be here for a while. But recovery is going to come.

What does this financial recession mean for the average US citizen? The most glaring repercussion of the financial crisis is the fast drop of available employment. Of course, unemployment is expensive. If we are used to a particular spending habit, old habits are hard to break, and we may find ourselves out of money before getting a new job.

I don't need to say it, but frugality is the word for these troubled times. Cutting back costs on things that aren't really necessary will help, but try to keep a few expenses to keep you happy and sane. As for the funds you have saved up, set aside what you can for mortgages and other necessities, and the rest may be used for minor investments.

You may be asking; what possible investments can one go into in these times? You don't have to be an expert broker to know that most stocks are really low in the stock market. But even though prices are way below and may still drop, you'll notice that things are a bit more stable now than when the crisis began. And when recovery starts, and it's inevitable, cheap stocks of today will steadily push upwards.

Understandably, the unfamiliar stock environment means that things are very hard to predict. In the end, what's important is to plan your steps, and then make them. Everybody did stumble in the race, but if you stop to groan at your wounds, then you will still get left behind. - 23221

About the Author:

Rick Amorey does not advice you to go for get-rich-quick schemes that are rampant on the Internet! With Emini Trading as your guide, you will learn a sound, well-built plan to slowly but consistently earn more and more with trading. Join the Emini Trading System now!