/Lydia Wanjiru/ -- Diversification is a risk management strategy and a key parameter to consider before you invest in stocks. It is a technique that plays a major role in mitigating risks by allocating investments among various securities in industries, geographical regions and more. Diversification mitigates unsystematic risk events in a portfolio. It is basically compared to “not putting all your eggs in one basket” and aims to maximize returns by investing in different stocks that would react differently to the same event. US stocks are exposed to market and economic forces in the U.S and they will react differently when exposed to the same events. To build a diversified portfolio, you need to know the various types of diversification available.
Oct. 19, 2017 /Lydia Wanjiru/ -- Investing in stocks is one of the best ways to build and grow wealth. Although all investments carry some degree of risk, investing in stocks can result in great gains if done appropriately.
Sept. 28, 2017 /Lydia Wanjiru/ -- According to a recent survey by bankrate.com, only 26% of Americans below 30 years are investing in stocks. Lack of financial knowledge was a topmost reason why most millennia’s are not investing in stocks besides lack of finances. Lack of information was another reason cutting across all age groups.
There are a numerous number of stock trading articles available on the internet. Will you rely on any articles online? Probably you will not do that because you have a brain. When it’s about trading it’s obvious that you will have to face both profits and losses. The ‘risk tolerance’ is the crucial part in trading in the competitive world. You should be able to increase your average profit per trade, so here is the best way to do it. The best way to increase your average profit is by calculation. We consider that the calculation would increase the average profit of your stock trading if you do it properly. Moreover, you should understand the ways to manage your money while trading but how can you do it? Let us help you with few unique concepts.
A plan is a must for any kinds of activity, if you do not have a plan there is a high chance for you to screw the work. A better plan will always take you higher. Even if you are not a plan-type person if you want to trade then having a plan is a must. To be more specific having the plan is as if being on the safe side. Are you planning to analyze the market for 24 hours a day? Are you planning to sit in front of the PC, or laptop from the time you work up? Obviously, it will be insane if you are planning to do such thing. Looking at the PC or laptop to spot a trade is not the right way to do it; in fact, it will drag you down to an inappropriate trade. You must use your brain to have a plan before you trade.
Trading the stock market is very much popular in today’s world. There are many professional stock traders who are trading different stocks and making millions of dollar in the financial industry. But if you think that trading the stock market is a pretty easy job and consider it as a get rich quick scheme than bad days are waiting for you. Trading the financial market successfully requires an extreme level of patience and dedication. If you truly want to become a professional stock trader in the financial world, then you need to adapt the traits of the professional stock traders. In this article, we will be sharing the top traits of the professional stock traders in the market.
July 7, 2017 /Finance Attitude/ -- Trading the financial instrument be extremely difficult if you don’t know how to trade the market properly. Most of the novice stock traders fail to make money in the stock market since they don’t know how to execute the best setup in the market. If you truly want to become a professional stock trader then you need to have strong determination, devotion, and dedication. Those who are trading the stock market for a long period of time and making consistent profit follow strict trading discipline in the market. In this article, we will be discussing some of the most common mistakes in stock trading.
June 27, 2017 /Finance Attitude/ -- There are many different ways of making money in the global market. Some prefer day job and some go for the stock trading to earn their living. Trading the stock in the financial market has its own advantage along with drawbacks. However, the pros are extremely high compared to the drawbacks in stock trading. As a professional stock trader, you will always have the freedom in your working hours. You don’t need to be worry about your 9 -5-day job. Most importantly you will be responsible for you own earning in the market.
Many gurus will tell you that the secret of success in share trading is to know when to buy and sell stocks-timing is everything. While this is undoubtedly true, it is even more important to choose the right stocks. The basics of a stock dictate their long - term potential, but very few people - including many experienced investors - have a clearly defined strategy for the selection of stocks that may be overcome failure. While there is never any guarantee, here are five things that you should look at when deciding where to invest your hard-earned money.
When you buy a stock, you are buying a part of a company. Imagine a fictional company that has sales of $ 20,000,000 and net income of $ 2,000,000. To raise funds to expand, the creators of the company arrange the public sale of shares. As they think that their growth rate is not so high, they set a price that implies that future investors will earn 9% of their investment plus the growth that is obtained.