Learn what stock trading is all about

Author: jacob

You may have heard the terms and phrases, 'stock trading', 'buying shares', 'investing in the stock market". If you are not a stock trader or are a beginner in the arena of stock trading, you may want to understand what stock trading is.

In this article, we shall endeavor to explain 'stock trading' in a manner that is easy to understand for novice stock traders.

So, first of all, what is a stock?

A stock, also known as a share or equity, is a minute share in the ownership of a company. When you buy a stock, you become a partial owner of the company whose stocks you have purchased. With this partial ownership, you become entitled to a portion of the company's profits. These profits may be paid to you by the company in the form of 'dividends' or gained by you in the form of 'appreciation' (an increase in price) of the company's stock.

In other words, if the company does well, you can sell the purchased stocks to another trader at a higher price than what you got them for and make a profit out of it. Also, in case the company goes bankrupt, you have a claim to their assets after the creditors of the company get paid off.

Debt financing vs. Equity financing

Let us try to understand why companies sell stocks.

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How does a company raise money?

It can do so by either borrowing money or raising money by selling stocks.

When a company borrows money to aid its growth, it is known as 'debt financing'. It may borrow from a bank or from the public. The public can purchase 'bonds' which are, essentially, a kind of loan that the bondholder will receive an interest on. At 'maturity', the bondholder is returned the original money loaned to the company.

When a company raises money by selling 'stocks', it is called 'equity financing'. It sells out its 'ownership' to the public and, in return, guarantees them neither interest nor a payback. Why would you buy a stock if you aren't assured of being paid interest on it?

As mentioned earlier on, when you buy a stock, you may receive a regular 'income' from the company in the form of dividends, if the company is doing profitable business and is stable. If the company is a high-growth company, implying that it believes in re-investing its profits into its growth instead of sharing the profit with its stockholders, you can still benefit from buying their stocks through the possible 'appreciation' of the company's shares.

Basically, you buy a company's stocks in the hope that the company will prosper and the prices of its stocks will increase.

For novice stock traders, it is advisable to hire a full-service broker who, other than acting as a 'salesperson' in the stock market, also gives the trader tips and advice on how to trade stocks.

Now-a-days, 'online' stock trading is quite common as a means to trade stocks. This means that instead of having to be present at a physical exchange (a place where sellers and buyers meet) such as the New York Stock Exchange, you can trade stocks over the Internet.

Online brokerages/brokers charge varying 'commissions' for each trade and may or may not offer additional services. The line between the online stock trading industry and the sites that offer the technical know-how of stock trading is blurring. You can expect the services of a 'full-service broker' from online brokers as well in a lot of cases.

To enlist for stock trading tips and the creation of an online trading account in its affiliate online brokerages, you can visit www.otcbully.com

Article Source: http://www.articlesbase.com/day-trading-articles/learn-what-stock-trading-is-all-about-7193614.html

About the Author
The author has a degree in finance.

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Commodity Tips - When to Buy or Sell

Author: rahul

During my previous trading career in the Stocks, Futures, Currency and Commodities, I have come across several methods, techniques and many of Commodity Tips, Stock Tips and MCX Tips. Most at first glance emerge intriguing, but soon exposes, it becomes the evident that all those good lines do nothing more than decorate the screen and put a drain on your share market trading account.
In this blog, I am going to discuss with you one simple method that I have found to be worth for the purpose of selecting whether to be bearish or bullish (or neither) most freely traded markets. This simple technique is not meant to be utilized alone, but in conjunction with a timing technique for a real entry. In other words, you would utilize this method to first your market trend bias (bullish, neutral, bearish) and then you would then use whatever technique you have found helpful for deciding when to trade.

With my personal trading and that of my market trading clients, we can use turn dates called Future Dates (FDates) along with a simple graph or chart pattern for our trade setups. But we need to firstly decide whether we wish for to trade Sell setups or Buy setups, and this is based on our way bias. So let me now share one technique for doing this.
Using a WEEKLY and DAILY price chart, where each and every price bar represents a week of the trading, you want to apply an easy MACD indicator. Along with the good Oscillator and Signal lines, that you generally get with the MACD, having the Histogram on it is extremely helpful also.
The line we feel like to pay attention to is the main Oscillator line, which is the line that is typically above the Signal line when they are together, moving upward and is below, the Signal line, when they are both moving downward. You wish for to note if the Oscillator signal line is moving downward or moving upward. If it is moving sideways, then no market trend bias is generated.

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Suppose Oscillator line is moving upward. This is the primary signal indication that our bias may be bullish. To confirm this, we also wish for to note whether the final SWING is a bottom level or top level. If it was a bottom level, our trend bias is the BULLISH and we then only wish for to trade Buy setups on the regular chart or graph, when we get them. But if the final SWING is a top level, we remain neutral as our trendy way bias, looking for the trades elsewhere.
A SWING is, for those who may not understand this term, describe to confirm top level or bottom level. For a Swing Top level, you have a price chart, bar with a high-higher than the earlier bar high level, followed by a price chart, bar that is not very higher than at this bar, but makes a lesser low. This lesser low can come in as soon as the next price chart bar, or later on. When it does, that higher level high bar is called a verified Swing Top level. The reverse is factual for the Swing Bottoms, where you initiate with a lower-low bar, ultimately followed by a higher level-high bar.
Here is a good example of having a bearish market trend bias. You can note on the MACD, that the Oscillator signal line is moving downwards positions. If you also note, that the final confirmed swing was a top level, you have a bearish market trend bias and should see for only the selling opportunities on the daily bases chart.
I have used this easy & simple method for a few times with very good outputs. Of course, it is very important to have a good timing technique for your actual Buy & Sell setups. Without that the, this method would have limited time value.
Top Trading Principles::
Always Use capital you can afford to lose - Never utilize money that you cannot manage the losses. The trading & investing have to be tension free. Using currency that you cannot manage to lose introduces fear; this cloud your judgment and can paralyze you from taking advantage of opportunities accessible.

• Know yourself - be well disciplined, know your all weaknesses, control your every emotion. You have to be disciplined to stay alive in this 'business'. You require the discipline to stick to your trading method.
• Start small - Try and expert the mechanics at first. Most of people jump into the trading risking their all life savings. You have to initiate small and learn the basics. The real truth is if you can't build money using a small amount of the capital, you would never creating money with a big amount of capital.
• Don't over commit - A trader or investors once said to a fellow buyer & seller, "I can't snooze at last night because of my exact trade positions in the marketplace His close friend replied by saying "Sell down to a good level that would permit you to sleep at night".
• Isolate your market trading from the desire for profit - try to reduce "hope" from your trading technique.
• Don't form innovative opinions during market trading hours - do not let the day to day movements change your whole plan.
• Take a trading break - Trading each and every day may cloud your judgment.
• Don't follow the crowd - More than eighty percent of traders or investors in the stock market are not always correct. Identify what task for you and always stick to it.
• Block out any other opinions - Don't be influenced by the others once you form any opinion. Never seek for any of Stock Tips, MCX Tips and Commodity Tips.
• When you aren't sure, stand aside - it is OK to be in the money and not in the share market.

In share market trading, if you adhere to this type of basic principles and follow diligence, profits always will come.


Article Source: http://www.articlesbase.com/day-trading-articles/commodity-tips-when-to-buy-or-sell-7207428.html

About the Author
Trifid Research is a SEBI registered Company in India, represented commodity, stocks, currency, futures and options. Uses the strategies, techniques and principles, he will provide Commodity Tips and MCX Tips of the world's top traders & investors.

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Commodity Tips and Trading Plans of the Market

Author: rahul

What are Commodities?
The commodity are all types of goods that are in exchange broad demand and are pretty stable and don't differ much in terms of the quality. For case in point, gold is always gold whether it's mined in Australia or Africa.
Because of this, standard level in quality, these types of goods becomes very useful tools for the investment and the trading. When you purchase a barrel of the crude oil for example, you recognize what you are getting and you won't obtain short changed.
Examples of the goods and products that can be bought and sold as commodities include:

• Precious metals such as Silver, gold & copper.
• Agricultural commodity products such as rubber, corn, rice & sugar.
• Energy & industry resources such as coal, crude oil and aluminum.
• Nontraditional "resources". Entrepreneurial populace has started talking about the "natural capital" & trading carbon emissions and weather.

Trading Commodities
When the people talk about the trading commodities, the most popular of them aren't actually buying one ton of sugar and then bending it a week later on.
Commodities are usually traded using the derivative tools and important Commodity Tips such as the futures. Buying a futures agreement of an underlying commodity product means you are purchasing the right to purchase the commodity at a share price at a definite future date. In the real-time, the actual rate of the commodity goes upward and downward from day by day. This movement makes the future agreement, either goes up or down in rate depending on which way the underlying commodity's rate goes.

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The Commodity Market
Commodities are bought and sold internationally, and are traded on several exchanges around the whole world. Examples of these involve the Australian Securities Exchange, Chicago Mercantile Exchange and Tokyo Commodity Exchange. These commodities exchanges act as the marketplaces where commodity future agreements can be traded & exercised.
The rates of commodities rise & fall. Some are recurring, while others depend on the present economic outlook and political state of affairs. For example, the rate of agricultural products like rice and corn fluctuates depending on the time of the year,
On the further hand, commodities such as gold and crude oil are extremely dependent on economic & political circumstances. For example, if there's political volatility such as war or any government problems in the East (where the most oil producers are), the rate of crude oil would increase. And the rate would rise if the financial system and industry are very strong and energy utilization is high; and vice versa.
Commodity investing is a good investment that can create you some good profit with the help of experts providing NCDEX And MCX Tips. But of course, they also take some peril. Learning how to get ongoing with commodity market trading and how to buy & sell right will provide you the least amount of the risk.
There are all types of the websites that offer the commodity market trading online. Generally there is an average fee for build up a trading account. Some even have a very less amount that you should put in your money account. Mainly of these sites have a host of all tools to help you study how to obtain started with the commodity trading and to assist you make the top trades possible.
The commodity trading training online is a lucrative business and if you mainly would like to shift yourself into a diverse earnings class may we advise you learn how to acquire started with commodity market trading.
Why trade Commodities?
The cyclical and good trending natures of the commodities provide trader or investors with the chance to trade in the commodity futures. Traders are able to make from trading the commodity futures by being capable to predict the cycles and earning during economic & political upheavals.
Commodity futures could also be bought and sold to hedge against the opportunity that the underlying commodity does not produce expected production in the current cycle. All companies whose business includes that commodity would then hedge alongside that and make some money from the commodity futures although their products do not sell well.
For traders and casual investors, commodity trading stands for another technique of the trading other than shares. The risks & rewards are similar; distinguish by the underlying commodities being bought and sold.
If you want commodity trading, you will require doing some Commodity Tips on the commodity you wish for to focus on, and research how its rate varies depending on year cycles as well, political and financial changes.


Article Source: http://www.articlesbase.com/day-trading-articles/commodity-tips-and-trading-plans-of-the-market-7233387.html

About the Author
Trifid Research is a SEBI registered Company in India, represented by the Commodity Tips and Mcx Tips specialist Commodity Tips Provider team. Please direct call, press queries to advisory Team. Email::info@trifidresearch.com or call +91 887 899 8007

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