Category Finance

Important Skills You Need To Trade Stocks for a Living

Trading stocks for consistent profit, whether as an occasional dalliance into the market or as someone trying to make a living, is not easy. You must have both the knowledge and the temperament to do so.

⌘ Emotionally you will need the following qualities:
1. You need to be able to concentrate intensely.
2. You need to be able to withstand stress.
3. You need to be able to make decisions quickly and decisively, as they say, “to be able to pull the trigger.”
4. You need to refrain from becoming emotionally attached to a particular stock; when a stock is going down, you need to be able to sell it, even if it is your “baby.”

⌘ Intellectually you will need all the knowledge you can get and the way to obtain it is to study the best trading methods from professionals. Some traders rely on technical analysis, some rely on fundamental analysis, and others rely on both.

 

5. You will need a basic understanding of technical analysis which is the study of charts and indicators such as the MACD, the Stochastic, moving averages, Bollinger bands, Relative Strength Index, and more.

 

StockCharts.com - Chart School

 

 

 

6. You will need to learn how to read and interpret candlestick charts.

 

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7. For fundamental analysis, you should be able to read a company’s balance sheet and annual report, and understand earnings per share, net profit margins, return on equity (ROE), Price to Earnings Ratio (P/E), Price/Earnings to Growth or PEG ratio, Price/Book (P/B) ratio, and more.

 

8. It would be helpful to have an understanding of economics, particularly how the economy is doing in the United States and elsewhere in the world.

 

9. You should have knowledge of the various stock market sectors, and the industries in each.

 

 

10. You will need a knowledge of computers, monitors and data feeds, so that you can keep up with the market minute by minute, particularly if you are trading online, rather than placing orders through a broker.

 

11. You will need an understanding of the different types of orders: orders to buy, to sell, to place a limit order, to place a stop/loss order, and others.

 

12. You will need to understand commissions, your basis in a stock, and calculate your profit or loss for each trade.

 

Stock trading for a living, unless you are a professional, is a very iffy business. You can learn some of the things mentioned above by reading books and articles on the subject. Many of the major online brokerage firms have local offices where you can take a variety of courses, or you can take these courses online. Other financial organizations specialize more in teaching trading methods. There is absolutely no substitute for quality training from seasoned professional traders. Your best chance of success lies with taking a small, mentored class in trading methods, where you can participate in discussions and obtain one-to-one guidance from the class instructors, before you strike out on your own.

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Personal Loans and Money Lenders in Singapore

Singapore residents, who are short of money have someone to turn to. JR Star Credit offers short-term loans to help people through situations with emergency expenses. Things happen in life, and money is needed to help solve the problem. Not everyone, however, has the ability to raise cash quickly. Poor credit and few assets make a traditional personal loan in Singapore impractical.

This is why payday loans have become an important service to working people throughout the country. A person can apply for this type of loan and not have good credit or any credit at all. What a lending company is looking for is a person’s ability to pay back the loan. This simply means that you have a steady job, and an income that can be verified.

These loans are unsecured, and the amount the loan is kept below a person’s paycheck. Because of this, they are taking the form of a cash advance on a person’s next paycheck and are often called cash advanced loans.

How much money you can get will be dependent upon how much money an individual receives each pay period. The loans are usually from one to four weeks and are designed to fit into a working person’s pay period. Because these loans are for such a short period of time, the money charged is often quoted as fees. The annual interest rates associated with this type of loan has little meaning because the loan is paid back in a matter of days. Each person contemplating a payday loan should look at his or her particular circumstance and decide if the fee makes financial sense.

Citizens of Singapore need only provide their pay slips when applying for a payday loan. Non-citizens can apply for a foreigner loan with a passport and a pay slip. JR Star Credit will also accept a work permit or employer contract for eligibility.

JR Star Credit has an outstanding reputation in Singapore and is ready to help with a financial emergency today. Their process of applying for and getting approval for a loan of this type is quick and easy. There are no background checks, other than for identification, and they offer these loans 24 hours a day over the Internet.

Their fees are competitive and are among the lowest found in the industry. They have extensive experience in helping people through a tough time with short-term loans. They can be contacted through their website at www.jrstarcredits.com.

You should learn these 4 Crucial Clues to Spot a Fraudulent Money Lender.

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3 Stock Trading Tips for Newbies

Stock trading is not an easy adventure. Only the smartest and the brightest are able to make it in this industry. Of course, if you are the average trader, you can rake in some money here and there but if you really want to make some serious income by trading stocks, you need to put your mind and effort into it. If others can become millionaires just by selling and buying stocks, then you can as well. It’s through hard work and experience that you get to that point. There is no shortcut. Luck is of course a factor but you will surely fail if you put too much weight on it.

If you are just starting out in the stock trading business, here are some tips that can help guide you towards the right direction:

  • Do your homework and educate yourself about trading stocks before you jump into the mix. Online stock trading is a serious business. You can’t just barge in and do it in a trial-and-error basis. One small mistake in the trading floor can make you lose a fortune. That’s how sensitive the stock business is. So do yourself a favor and immerse yourself in “stock education” before you make your first trade. You don’t have to go to a university to learn the basics of the trade. There are a ton of tools and resources out there, especially online, that you can use for your education. Majority of these resources won’t cost you anything so use them fully. These include blogs, websites, webinars, newsletters, and even video games. You will be surprised how much you can learn from a simple trading video game.
  • Practice. Put your skills to the test by trying out some online trading first. There are numerous online simulations out there that you can take advantage of. These simulations allow you to trade virtual dollars. You have nothing to lose. If you get too many negative results from these simulations, then you are probably not yet ready for the real thing. So take your time to educate yourself some more.
  • Don’t put all of your eggs in one basket. When you are in the real trading floor, it’s never a good thing to put everything you have in a single trade. Diversify is the keyword here. Don’t spread yourself too thin.

These are the most basic things you need to remember if you are a beginner in stock trading.

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Forex Trading 101

Forex Trading is gaining popularity among investors because of its flexibility in terms of the amount that can be traded. Depending on the threshold of the traders, they can opt to start really low on investment and gradually increase the amount of the money once they are already familiar with how things work.

Forex Trading, also called Foreign Exchange Trading, is the act of literally exchanging currencies from different countries. Since the value of currencies fluctuates irregularly, this becomes a strategy game that actually involves so many factors aside from the actual cost of the currency. While we are only aware of the closing and opening value of currencies, this value may have fluctuated hundred times in a day. Although the fluctuation may only entail a couple of centavos, this fluctuation is important for traders who are trading for thousands of dollars.

In Forex Trading, part of the strategy is to analyse trends according to different factors that affects the value of a currency. If for example the currency that you are dealing comes from a country that is in the brink of war, then it is expected that the value of the currency you have will somersault in a matter of days, maybe hours. So once you have detected that a decline is on its way, trading for a more stable currency is advisable. There are also cases wherein you are holding a currency that may not be as valuable but a recent event makes its value to reach its all-time high. You can opt to take advantage and sell it to get a profit since it is higher compared when you purchase it, or you can wait some more to see if it will continue to increase.

This particular trading works simply through buying and selling. To be able to make a profit, you must buy it at a lower price and sell it during its peak price. There are many factors that can affect the variability of the value of currencies. It is important that you employ effective strategy in determining the profitability of the currency that you are trading.

You must also be quick to take action for every important movement that has happened. While there is no way that you will be able to predict the future, learning how to study trends and relating it to Forex is important. If you want to take part in this trading, it is also important that you make extra effort to learn history, economy and social events as these will be important in your trading strategy.

Visit Forex Malaysia for more resources.

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