Currency News Info » Investment

Investment Research

admin — Tue, 19 Jan 2010 07:17:13 +0000

Certainly the most popular type of research is technical analysis but the fundamental analysis looks at many factors that can help you make a good choice when buying stocks. You begin by looking at the economy. Is it doing well or is it rough? Notice the economy where the company does its business, not just where the company is located. You can always look at government decisions like fiscal and monetary policy.
Once you have an idea as to how the economy is doing, next will be to look at the general industry of your target stock. If the company you are researching happens to make steel for automakers, look into how the auto industry is doing and not just other steel fabricators. Then take a look at the company and their experience in that industry. How is their financial history and do they have diversity. How does the public view this company?
This all takes time in the beginning, but after you have educated yourself in that industry it will take just a couple minutes to monitor it each day.

Martingale Systems

admin — Sat, 26 Dec 2009 07:15:21 +0000

One of the oldest strategies of betting this the Martingale system. At first, it was a 50/50 chance of winning like in roulette and can be adjusted for us in stock trading. The idea is similar to a coin toss where you will either double your money or lose it all.
Each time a player loses, he doubles his bet with the Martingale system. It doesn’t matter how many prior bets were lost, this system will produce a net profit. This sure sounds like easy money doesn’t it? In actuality, this is a betting disaster. The reward ratio is a risk because no matter how many bets are made before a winner finally arrives, all profits will be gone in the long run.
When applied to stocks, this system would keep the trader increasing with each trade with no way of predicting how many loses would take place before a win. And in the end, the reward is limited to the position size of the beginning trade. With stocks there are always fees for brokers and some taxes as well, and this is not included here.

Buying Stocks

admin — Sun, 22 Nov 2009 07:13:18 +0000

Before jumping into buying stocks, there are some facts that you should know about. The great stocks will increase in value over time which is what it is all about. Take time to look them over before you decide. Look at the history of the stocks and notice if it consistently improved over time because that will give you a clue that it will probably continue. This is the stock that will give you better stability for safety but lower returns.
Then, take a look at the company. Do they don’t have a good strategy plan for business, then profits are unlikely. Without a good plan, growth or profits will be lacking. Then notice if the owner of the company shows a history of success. The directors and the CEO should run this company well but if a new CEO has just come in, there might be changes coming and it could be a good stock to purchase.
Once you have checked these areas, then ask for opinions from others. Opinions are just the thoughts of other and should not directly effect your choice of stocks. Read books and talk with others before you begin in the stock market.

Market Choices

admin — Sat, 07 Nov 2009 07:11:49 +0000

Auction markets and dealer markets are the two kinds of markets in the investing world. Most investors are familiar with the auction market where, on an exchange, stocks and traded in transaction that is auction styled. But those not traded on an exchange is the over-the-counter or dealer markets. The transaction is done between dealers and the prices are not posted.
If the listing requirements cannot be met, they are called Over the counter investments or they can just choose not to be listed. Because of this, OTC is seen as a higher risk investment. Pink Sheets and over the counter bulletin board are the two players in the OTC market.
Based in New York and privately owned is Pink Sheets and it competes with the OTCBB. This is not new, it has been around for a long time but only since June of 2000 has it had the name Pink Sheets LLC. A trip to their website will show quotes for unlisted stocks along with others that fail to meet reporting requirement. For those looking for higher risk investments could take a look at what is offered on Pink Sheets.