Friday, September 30, 2011

How to Start Investing In Stocks!_PRICE FIELDS_BULL And BEAR

 Start Investing In Stocks!

Do you want to be an investor in stocks? Stocks are a lucrative way of making money and every investor who has been there and done that knows it very well. One of the smarter ways to make money is to trade stocks or simply buy them. Yet before getting there, you first need to learn the ropes and prepare yourself to be a smart investor and this is can be easily achieved by taking the correct courses. First of all, you would need to understand the changes in stock before investing in them and it is a well known fact that the stock market amends itself on a frequent basis, there could be a good day for a particular stock and the next day could be miserable. Hence one needs to find the right stocks and this can be quite a discouraging chore especially if you are inexperienced.

A number of ideas and concepts on how to treat the stock market are widely available. A few people have more customary methods of investments, like investments in long-term stock. This could be waiting for investment to mature for the next five years in some cases yet there is another rule for stocks: No smart investor invests in a traditional way!

Firstly, if you are interested in trading the stock market is finding yourself an adviser. If not, then you will have to get the professional help of someone who knows the market very well. However, there is no experience better than practical experience and the same goes for learning the intricacies of stocks, it is better to find someone who is already occupied in trading the stock market and get the right counsel from them. While investing you need to find out the type of investments which make the right sense. Not all investments that you find will be positive and not all that you have let go will be negatives. Here discretion is better than valor and you need to make things work in your favor. As a smart investor you will have to sum up all the risks before you start investing and find out how much you will actually gain or lose from an investment.

Apparently, if the risks are more and the benefits are less then it is definitely not a good investment for you and when you find it to be vice-versa don’t think twice and take the plunge as you might not get another shot at the same stock again in the near future. While trading in stocks there is a thumb rule to follow, and that is trading stocks in five year intervals. Thus, while investing you need to always keep watch on what you stand to benefit from the stocks in the next five years to come.

Technical analysis is based almost entirely on the analysis of price and volume. The fields which define a security’s price and volume are explained below.
This is the price of the first trade for the period (e.g., the first trade of the day). When analyzing daily data, the Open is especially important as it is the consensus price after all interested parties were able to “sleep on it.”
This is the highest price that the security traded during the period. It is the point at which there were more sellers than buyers (i.e., there are always sellers willing to sell at higher prices, but the High represents the highest price buyers were
willing to pay).
This is the lowest price that the security traded during the period. It is the point at which there were more buyers than sellers (i.e., there are always buyers willing to buy at lower prices, but the Low represents the lowest price sellers were
willing to accept).
This is the last price that the security traded during the period. Due to its availability, the Close is the most often used price for analysis. The relationship between the Open (the first price) and the Close (the last price) are considered significant by most technicians.This relationship is emphasized in candlestick charts.
This is the number of shares (or contracts) that were traded during the period. The relationship between prices and volume (e.g., increasing prices accompanied with increasing volume) is important.
Open Interst
This is the total number of outstanding contracts (i.e., those that have not been exercised, closed, or expired) of a future or option. Open interest is often used as an indicator.
This is the price a market maker is willing to pay for a security (i.e., the price you will receive if you sell).
This is the price a market maker is willing to accept (i.e., the price you will pay to buy the security).
These simple fields are used to create literally hundreds of technical tools that study price relationships, trends, patterns,
Not all of these price fields are available for all security types, and many quote providers publish only a subset of these. Table 1 shows the typical fields that are reported for several security types.

Bulls And Bears!

 who has been or seen the game at a Stock Market or even tried their hand at the Forex can definitely guess where this is headed to. Being in Stock market is same when you find yourself in Forex; it is just that you are the Bull and the Bear. You have a proposition as to choose when you need to be what. However, one can be in a mess if you have no clue where you are headed to. This is where you get clear and what you need to catch up and when. It goes without saying that Being Bull refers to the selling and the opposite for being the Bear. But then you will understand on the onset of your journey to making money that Forex; like any trading has its rules. Practice makes perfect. This is one line that has no meaning in reality in the case of a market. There is no ideal in the first place since there is absolutely no Genius out there where this game is headed to. There might be days when you really felt you had a landslide and there are those when you shuttled yourself over to moon .Nevertheless, once you develop your own style at going around, I strong believe you will stick on. Any financial planner or consultant or even a Stock broker is just your gate pass into the World of Bears and Bulls. And all of them will agree that there isn’t rules; all that’s exists are guidelines and regulatory Functions. First and foremost is to have a trading plan to succeed. A good plan will remove all your emotions form your trade. “Unpredictable” is the word of the market and you will need to prepare yourself to live it day in and day out. Do not buck the trend. When the market is bullish, go long. When the market is bearish, you short. Never go against the trend. If you stick my some “gut feeling “, you may find yourself lucky or even have your guts spilled out. The reason for the last statement is primarily the word “Doubt “. When in doubt or not sure about where the hell you or the market is headed to, stay sidelines. Sometimes doing nothing is the best thing to do. One of my friends suggests that keeping a trading journal is one of the best things to do. How will you arrive at your style when you don’t keep a track of how and what are you doing?  Always wake up and realize that the undeniable fact is that you need to preserve your capital. If you don’t do this, you will be history in no time. Simply put being emotionless, trendy and informed can take you places. Improve on your mistakes, keep learning and keep improving. Take the profit when the trade is good and know when to cut loss. Know why are you trading and do not do it for the sake of it .So what are you waiting for go try on a free account now and let the games begin.