Predicting Activity After Stock Price Declines
The way stocks react to significant price shocks is important for finding good entry and exit points. A common question traders and investors ask themselves is whether to purchase after a stock takes a big fall on a bad earnings report, for example.If we're to believe the efficient market hypothesis then the shocked stocks price is reflective of all new information so wouldn't warrant a purchase (based solely on the price shock.) However, if there are exceptions to the EMH, or if it takes time f...
Penny Stock Research Guide
Penny stocks also referred to as small caps, micro caps and nano caps are low-priced issues, often highly speculative and selling less than $1 a share. Initially penny stocks were mostly a matter of derision but gradually over the years some of them have developed into investment caliber issues. ?Penny stock is a high-risk stock that has a short or erratic history of revenues and earnings.?A broader definition of penny stocks refers to the company?s market capitalization instead of its stock pri...
Stock Rotation
Whether the market is exploding higher, diving or just treading water, traders tend to be nervous about the action in the next day, week or month. A bit of anxiety comes with the territory.One indication that the market is getting into nervous territory is the tendency for traders to jump in and out of high-flying stocks while spending most of their time parked in less volatile issues or cash. It?s called ?rotation.?When markets are stuck in a funk, chances are good for managers to sell somethin...
The Seven Mistakes All Novice Traders Make And How To Correct Them
We learnt the following the hard way! If any of these things applies to you, don't worry ? there is an easy solution!MISTAKE ONELack of Knowledge and No PlanIt amazes us that some people expect to trade the stock market successfully without any effort. Yet if they want to take up golf, for example, they will happily take some lessons or at least read a book before heading out onto the course.The stock market is not the place for the ill informed. But learning what you need is straightforward ? y...
Online Discount Stock Brokers
Discount stock brokers are the most common type of brokers but there are other brokers like full service brokers and money managers.Just about thirty years ago there were only full service stock brokers, offering order execution and investment advice at extremely high costs. Then the first discount brokers came in with low fees just for trade execution. They gained market share pretty quickly because many investors were making their own investment decisions and were just looking for cheap order ...
Valuation
Every day I hear from the ?experts? on CNBC-TV and the radio gurus that the way to buy stocks is find value. One man?s Rembrandt is another man?s connect-the-dots and fill in the spaces. Valuation is like beauty. It is in the mind of the beholder.If valuation is the key to buying stocks then there should be some kind of a formula to determine what is undervalued and over-valued. In every industry there are formulas for standards of performance. For cars we want to know the zero to 60 miles per ...
Top 25 Growth Funds
On Monday, November 25, 2000 Investor's Business Daily listed on page B1 the Top 25 Growth Mutual Funds for the last 36 months along with their performance for the year 2000 to date. Only four showed a profit this year of 21% and the other three had increases of 12%, 5%, and 5%. Fifteen had loss of from 10% to 28% and the other 6 were down slightly.In the column next to them there is a list of Top 25 Growth Funds for the past 3 months for the year 2000 to date. Only 2 had increases in price for...
How To Play News Blurbs For More Profits
What is the first step (and often last) for the new daytrader? Turn on CNBC and wait for the news, of course (don?t deny it, you have been there). Then when you hear the late breaking ?real time? news, you buy good news (or sell short bad news) in an attempt to beat the other 8 million listeners. Sound like a winning plan?After realizing that is kind of hit or miss, you decide to fire up the ?real? real time news service. Of course, at this point, it hasn?t dawned on you. It is not just the fact...
Stock Market Guide
Stock market is an inquisitive place for many. It is because the place has given birth to many millionaires and is also responsible for turning millionaires to locals. Thus the bulls and bears have always been charismatic. Now millions of people invest in the stock market to make good money. The aura of the place is such that it is swarming with people any hour of the day and any season of the year. But only few know that how the stock market came into existence or what actually are its origins....
How To Find Value In No Load Mutual Fund Investing
What are you thinking when it comes to your no load mutual fund selections? Are you saving pennies and sacrificing dollars?Are you spending your time looking at expense ratios, analyzing Morningstar ratings and searching for funds with low fees and no 12b1 charges? If you are like most people, you know these things in and out. You've spent hours evaluating them, and your chosen mutual funds cost little to purchase and maintain. But they still don't perform to your hopes and expectations.So, why ...
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