I had been writing several articles that gave a comprehensive introduction on how to invest in the Philippine stock market . Focus was given on the basic principles that each prospective investors should know. In this article the advantages of investing in the stock market will be given focus.
This is part 2 of the four part series on the discussion of principles of investment in the stock market. In the first part, the first principle involved realizing that the stock market is just another investment vehicles and that before you start investing in the stock market, you must realize that there are other vehicles of investments. We continue by discussing the next two principles. If you wish to view the entire article, please visit my blog.
In my previous article, the first part on the advantages or the reasons why you should invest in the stock market was discussed. Three points are highlighted, mainly potential for greater returns, part ownership of the company you are investing and belonging to a special group of people. This is the second part of this two part series. Check out my blog should you wish to view the article in its entirety.
In this article we will be discussing the last three principles of investment in the stock market. In the past articles we have already discussed the first seven principles. If you want to see the entire article, visit my blog.
Investing money can be a lucrative yet tricky process. It certainly isn’t for the faint of heart, especially in regards to stock trading. People that buy and sell shares of companies in certain markets, for example the NASDAQ or New York Stock Exchange (NYSE) are stock traders.
In order to do any forms on transactions on the stock market, one of the people you will need is a stock broker. A stock broker is basically someone who is licensed to perform sales and purchase of securities listed in a stock exchange. They take several tests before getting the license to do the transactions. Normal people who do not have the license are not permitted to do the exchange. This is to ensure that the people performing the transactions have at least the basic experience and understanding on what they are doing.
How would you like to learn the real secrets of how to trade options successfully? Well, there are many options courses out there, and here are some tips on how to select the best course for you. Ask, is the course taught by someone who trades for a living? Are there live classes each week? Does the course offer videos as well as live instruction? Are there references that you can talk to before joining and is their customer service good?
Let’s discuss the complexities of options and how they differ from trading stocks. First of all stocks are simply one-dimensional trading vehicles, the dimension of “price movement.” For example, one can go long a stock if he/she is forecasting a rise in the price of the underlying asset. The stock trader doesn’t need to worry about time or changes in volatility affecting the outcome of his trade. The stock trader only needs to focus on the asset’s price movements.
The ascending triangle can be traded on the short side entering the trade as the stock breaks out of the pattern to the downside. The pattern forms when the two boundary lines that contain the price movement converge to a point. The bottom line slopes up toward the top line which is horizontal.
I’m going to do something that is unheard of in stock chart and market analysis. I’m going to tell you exactly what I look for in a stock and how I find picks for one of the most popular stock blogs on the Internet.
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