Sunday, October 25, 2009

How to use Google Finance to track stocks

If you are into any type of investing or are interested in the stock market at all, you are likely going to want to track stocks, at least to some degree. Fortunately, there are a lot of different options out there for you. You can go to the NASDAQ website itself to look up stock quotes. Yahoo! Finance is another popular website for those looking to track stocks. Another popular and effective website is Google Finance.

Google Finance is set up very nicely and intuitively. Right on the front page at http://www.google.com/finance there is a chart showing you a summary of how the market performed that day. This is good to see the overall trend of the market, and if you have any type of fund that tracks the market, you might not even need to do any looking beyond this. This front page will also give you articles showing some of the top news of the day.

If you scroll down, you can get a quick look at how the different sectors in the stock market performed for the day. If you own stocks in the basic materials or technology sector (or any other sector) you will be able to see very quickly how that sector of the market performed. Once again, this could also be important if you own a mutual fund of a particular sector, as it is important to see how things are going over time.

If you are looking to track an individual stock, it is fairly easy to find. There is a search bar at the top of the site, and you should be able to type the ticker symbol (for example, GOOG for Google) or the company name itself, and it will take you right to the stock information for that stock. On that page, you will get all of the key information that you need.

First and foremost, that page will tell you the stock price, and how the stock performed that day. It will tell you how many points up or down the stock is, and what percentage it is up or down by. It will also tell you important information about the company, such as the number of shares and the EPS. You will also be able to easily be able to see a graph of the stock price over any length of time, from the past day to the life of the stock. Everything about the stock is all in one place, making it extremely handy to use.

Google Finance is one of the best sources for users to track stocks on the internet. With just a few clicks, a user can see a graph of the entire stock market, see how each particular sector of the stock market performed, how different world markets performed, or all the information you would want to know about any particular stock or about the company itself. With all of these options, Google Finance is a great tool to use if you are interested in tracking stocks.

Saturday, October 17, 2009

Understanding investors' stock market choices

The stock market is a paradox. It is a big mystery to those who don't understand how it works. Yet it is actually as simple as ABC to those who are used to it and can understand its highs and lows.

Therefore, the first step in understanding the choices that stock market investors make is to understand the stock market as a concept.

As the name implies, the stock market is actually a market. It is an avenue whereby individual and corporate investors come is the middleman between the buyer and seller of a stock. The stock broker is licensed by the Stock Exchange to buy and sell stocks. For each transaction, the stock broker gets a commission called a brokerage. together for the purpose of buying and selling stocks. It works like this: Mr. a has some stocks to sell. Mrs. B wants to buy those stocks. However, the two people above cannot deal directly with each other. They need to use the service of a stock broker. The stock broker

Meanwhile, stock market investors are not fools. Nor are they gamblers buying stocks just for the hell of it. They are shrewd business men and women. Therefore, it is to be expected that there are certain parameters on which stock market operators base their decisions.

These parameters include the ones discussed below;

1) Information:

Information is vital for stock market transactions. Investors keep themselves well-informed about what goes on in the global economy. Positive information makes them go after a particular stock. For example, information about a possible merger between a small company and a bigger one will make investors buy stocks of the smaller company because the prices are likely to rise.

2) Season:

Some stocks have an almost predictable seasonal cycle of high and low prices. For this reason, investors buy stock of certain corporations at certain times of the year and sell them at certain times too. The trick here is to buy when the price is low and sell when the price rises.

3) Innovation:

We live in a dynamic world. Change and innovation are very important aspects of life in the modern era. Therefore, investors are likely to invest in the stocks of a company with a new invention or new product. This is because, initially, the price of such stocks will be relatively low. As the product gains acceptance, the price will begin to rise.

4) Blue Chips:

This is the last refuse of the conservative investor. Blue chips are tried and tested stocks with reputable companies and products behind them. As a result, investors go after these stocks because the risk of loss is almost non-existent.

Of course, it goes without saying that there may be other reasons but the ones above are the reasons for investor's choices or the stock market.

Saturday, October 3, 2009

How to get going in the stock market

We all know that the way to make money is to buy low and sell high. In this article I will show you a method of trading that will not allow you to miss out on any opportunity to make a profit.

Markets are driven by two emotions. Fear and greed. When the stock market is going up people start hearing about all the money that everyone else is making. They want to be in on the easy money so they buy shares causing the prices to go higher. This is greed. Soon enough the shares are over valued and people are making unwise decisions in buying as the market reaches the top. When the market is going up people believe that it will keep going up forever.

On the other side when the market is going down fear takes over. People start to see their hard earn cash disappear. So they sell, causing the prices to drop even further. Then the penguin syndrome takes over. As people see others selling they start selling as well causing the prices to drop even lower. Soon the shares are at a bargain and under valued. When the market is going down people cannot see the bottom because they are afraid to look down.

People are creatures of habit. And people are followers. That's why you only see a small percentage of people that are truly wealthy. To become wealthy you have to do what everyone else is not doing or is afraid of doing. You have to buy when everyone else is panicking and selling and you have to sell when everyone is excited and buying.

Now here is where you are going to have to follow me a little. Pay close attention. Re-read if you have too. The company you are investing in isn't as important as you think. Sure you want to pick one that's not going to go bankrupt but a majority of the companies that you invest in you will be selling shortly. You just want the money. So pick five companies that have good PE ratios (anything under 20 is good). The price doesn't tell you how expensive or cheap a stock is, the PE ratio tells you that. Make sure you have just as much money sitting on the sideline in cash as you have invested in the stock, your going to need it. Say you buy 100 shares in Apple at $90 a share. If the stock goes down to $87 buy another 100 shares. If the market isn't doing to well and people are selling the price will drop some more. So you buy another 100 shares at $84. Eventually the market will pick up because that's what it does, it moves up and down. The day the market stops moving we will have far worse problems than making money, the world probably just ended. So when the market goes back up and Apple moves to $87 again you sell the 100 shares that you bought at $84, taking $300 for yourself. Notice you do not sell unless its for a profit. If it goes back down, you buy some more. If it goes back to $90 you sell what you bought at $87. Get it?

You do this for as many companies as you like. Just don't panic and don't break down. If the market seems like its never going back up again just relax and buy some more cheap stock. And don't get greedy when your stock is going up. Don't think your stock will continue to go up forever. Sell it if you can make a profit. Don't think of the market going down as a bad thing, think of it as an opportunity to make money. And that's why you buy and sell the same stock on many different levels. This way you don't miss an opportunity to make some cash. Don't just buy and hold, that will get you average results. Do what others aren't doing and you will be where others are not.