Buying Shares Online – Enjoying the Benefits of a Modern World

There was a time when buy orders for stocks went out over the wires. They were passed on to brokers in the market place and executed. Today it is still very much the same. There are some wireless relays involved in many data transfers today no doubt, but buying shares online is quite similar to sending a telegraph or placing a phone call to your broker, but the full potential is creating a completely new experience for many people.

For some the possibility of buying shares online means that they have greater control over the performance of their savings and their retirement. For other it means that there is a new career possibility for them that they can pursue from home.

With the full potential of online trading you are capable of buying shares online, but you are also able to do all of the research that you need to do to prepare for those trades. The Internet is allowing us to transfer a more diverse variety of data much quicker than possible before. This means that you can view charts that track the stock price of stock FNBN over one year then overlay Bollinger Bands technical indicators within seconds. That is the potential of the Internet. You can calculate purchase points and sell points and develop your trading strategy all before buying shares online.

Then, of course, when it comes to placing the order you have the same speed at your disposal. From California to execution on the floor of the New York Stock Exchange in minutes or less in some cases. There are a world of possibilities, including foreign markets and after hours trading, that allow you to trade when you want and where you want.

There are still risks involved in investing though. The realities of trading have not changed that significantly. You can still make money with your trades, and you can still lose money with your trades. You are also free to seek out stocks that offer dividends that may represent guaranteed income or fixed income options. Nearly any financial option that you have had access to direct through a broker can be taken advantage of online. In most cases you will not have to open a new brokerage account. Most brokers offer the option of buying shares online with reduced commission fees.

You can access a wealth of financial research data and tools online for free. In addition a number of brokers offer specialized data and reports on specific stocks. These may be free to individuals that hold accounts with them. Some brokers and sites also offer stock tips for free. These should generally only be considered as recommendations. You should perform your own research to verify that the stocks are right for your investment goals and principles.

If you are ready for constant control of your money, the Internet has something for you. If you are ready to steer your finances at the speed of technology then online trading has something for you.

How to Buy Shares – Important Ways in Which to Reduce Your Financial Risk

There is a bunch of data out there on how to purchase shares. Here I will provide you with three easy hints which you should live by if you are considering buying shares.

1 Never Underestimate Research

As obvious as this sounds, it is important to remember. Do no rely on a single source of information as this may work initially but no one person is always right about the market, and if you are looking at trends then it is worth doing some of your own leg work.

2 Choose Your Strategy

Before you buy any shares you should decide on your strategy. There are three main strategies; value, growth and contrarian investing. If you are looking at purchasing shares because you believe that they are currently undervalued then you are ‘value investing’.

If you are looking to hold the shares for a long time and rely on market and economic growth, then you are growth investing. Finally, there is contrarian investing, this is about making your own way through the market and not always following trends – it does not mean that you go against the trend.

3 If you Can’t Afford to Lose It Don’t Trade It

An old one but a good one. There is no fixed date or amount of return on shares, so if you can’t afford to be without these funds indefinitely you should not be buying shares.

It is best to not factor the value of the shares into your monthly budget, then if you make money it is a pleasant windfall.

On the whole, if you disregard any of the above there is a possibility that you will become financially disappointed. A obvious eye for detail is vital to achieving financial success, but if you cannot follow all of these three easy hints laid out above then it is probably not the correct time to begin investing in shares.

How to Buy Shares – 3 Tips to Reduce Your Risk

There is a lot of information out there on how to buy shares. Here I have tried to give you three simple tips which you should live by when investing in shares.

1 Research Your Market

This may sound obvious, but you need to have as much information as possible to help you to make the best decision.

2 Decide Your Strategy

Decide your strategy before you buy your shares. The main strategies can be generalized into: value investing – where you purchase shares which you think are currently undervalued; growth investing – where you rely on long term growth, and finally, there is contrarian investing – this does not mean that you go against the trend, it means that you don’t necessarily go with the market trend. Always know your strategy before you part with your money.

3 Don’t Risk What You Can’t Afford To Lose

This is advice which you will hear all the time, but it is very important advice. If you cannot afford to loose the money it will affect your decisions. To buy and sell shares successfully you need to be able to follow your strategy without worrying about the bottom line figures all the time.

Too much pressure on bottom line figures may cause you to deviate from your strategy and to miss out on successful share buying.

Basically, if you ignore any of the above there is a good chance that you will fail. A clear mind and confidence are essential to success and if you cannot abide by the three simple guidelines above then it is probably not the right time or place for you to start investing in shares.

Buying Shares Online is Easy

The Internet has afforded many conveniences that can be done right from one’s very own home. In fact, even complicated activities like trading in the stock market can be done without having to leave the house, as there now exists a easy to follow and legitimate platform for selling and buying shares online. You can have a chat with a broker you’ve never seen about a product you’ve never held and still you make money without resorting to illegal means. This is what trading stocks online can do.

Buying Shares Online

There are lots of platforms and sites online where you can buy or sell shares. Needless to say, because the Internet is an open venue for trade, you are not too well protected from potential scammers. The question now is how to shield yourself from people who are only out to get your money under the guise of a legitimate online trading company, and how to identify which ones will provide you with a scheme that would be win-win situation for you and for them.

First things first, find an online broker that you can trust. This is easier said than done because identifying who tells the truth online is quite a challenge. You can start with the national accredited list of online brokers to see if the person you are considering dealing with exists and is part of this legitimate list.

These are the individuals who are recognized by the government and given the authority to buy and sell shares online for you and will increase your level of protection under law. If you are talking to a person who is not part of this list, skip him or her and move on to somebody who is an official trader — no matter how great his or her sales pitch is. Scammers can be very convincing when they want to.

Broker Licensing

Make sure that your broker is licensed. When selling or buying shares on the internet, keep in mind that it is your money on the table so you must only work with someone who has actual experience on stock trading and not just some novice off the block. You will know you are protected by law because your broker not only helps you with selling and buying shares online, he or she will also provide you with sound financial advice. In short, every transaction you make with this person is clearly laid and out transparent.

Your broker should give you a detailed financial guide that will carefully map out the services he offers, the fees he charges, and he addresses grievances and complaints. You should also be aware of where to go in case you do have complaints; most likely this will be a third party institution who handles online stock broking cases that is also mandated by law.

Aside from the financial services, your broker must also give you a detailed statement of advice, which lays out and explains point for point why you need to buy a particular stake, sell it not, or not do anything. The broker you choose should be able to help you understand in the simplest terms possible where your trading activity is going and should never keep you in the dark.

Before You Invest

Of course, as with any other type of financial activity you enter, you have to first research even just the basics of selling and buying shares online. You can’t just leap into the industry with zero knowledge of the matter, or you’ll end up either taking too much to gain or losing entirely. You cannot simply bank all your trust on your broker, no matter how good he or she is. Because these are your financial goals and needs, it is you who has to be well-informed of where your money is going or not going.

Commodity Investing – Flaws of Buying Shares in Commodity-Related Firms

Under today’s harsh economic conditions, people have sought various ways to invest their money in order to survive. With many investors today interested in commodity markets, I believe it would be important for them to know how to avoid wrong ways for commodity investments.

Although riding the commodity bull today is good for investors to reap profits, buying shares in commodity-producing and service companies is certainly not a good way for inexperienced investors because of many latent risks involved. Thus, this article will address why it isn’t advisable to buy shares in commodity-related firms.

Today, one of the reasons why buying shares in commodity-related firms is not advantageous for the average investor is because shares are derived from the stock market, an entity which is usually directed by emotions and analysts. This affects the responsiveness of these stocks to the fundamentals of demand and supply.

As demand and supply are figures that can be reported quarterly, investors can have a quarter’s time to prepare themselves from change in trends of these fundamentals. However, if they invest in stocks of commodity-related firms, the scenario will be different because response to changes in fundamentals can be overly positive or negative.

For example, when China’s economy was growing rapidly from 2001 to 2005, its stock market declined during the period because the public overreacted to the negative news present, accelerating the trend of decline despite strong economic fundamentals.

As Paul Samuelson once said, the stock market has indeed anticipated 9 of the past 5 recessions. With such irrational reactions to news, do you still trust that your profits from stocks in commodity-related firms can be predictable and in line with changes in demand and supply? I think not.

To add on, commodity-related firms sometimes cannot profit when government policies can increase commodity prices. One example would be environmental regulations in drilling oil.

In this case, the regulations instead increase production costs for these companies. This would decrease net earnings and result in a decline in stock prices. However, supply of commodities gets reduced, causing commodity prices to rise. With this, buying stocks in commodity-related firms cause you to lose out instead of profiting from the expected rise in commodity prices.

Besides all these, scandals for these companies can cause stock prices to plummet while commodity prices rise. For example, the recent BP oil spill caused stock prices of BP to fall despite no fundamental changes in demand and supply of oil.

To make things worse, the negative impact of such scandals can reduce earnings of commodity-related companies, causing stock prices to fall further while allowing other of such firms to capture more market share. In this way, if the problem of such scandals does not get solved properly, holding stocks of commodity-related firms can cause investors to suffer while commodity prices continue to rise.

Furthermore, commodity-related firms can fake their balance sheets and report higher earnings to jack up their stock prices. Should the investor be careless and see this as optimism for the company, it could spell doom for him when such lies get exposed. This can cause the investor to bleed money while other investors rake in profits from the rising commodity prices.

In addition, the profits of such companies are very susceptible to unpredictable events like war. In such cases, profits for these companies fall, leading to a decline in stock prices.

At the same time, commodity prices can rise as war can increase demand for commodities and decrease the supply available. If this occurs, the investor once again loses out instead of profiting from the rising prices of commodities.

However, though all the above reasons given are important, this last reason I’m going to give will definitely shock investors on the demerits of buying shares in commodity-related firms.

The final reason why buying shares of commodity-related companies is not advisable is because they are constantly plagued by the problem of operational costs they have very little control over. Because of this, commodity-related firms have very little chances to profit fully from the rise in commodity prices even if they can do so.

For example, despite oil prices increasing by over 70%, Exxon Mobil only showed net earnings of $10.9 billion in the first quarter of 2008, a mere 17% jump from 2007. This clearly shows an inability for commodity-related firms to profit from rising commodity prices.

To convince you fully, let me quote another example using Alcoa. Despite aluminum prices tripling, Alcoa also reported very disappointing earnings due to high energy costs involved in mining and processing aluminum. One important factor was due to rising oil prices which led to rising aluminum prices where Alcoa couldn’t profit fully from.

To conclude, I believe that it is certainly not advisable for inexperienced investors use the purchase shares of commodity-related firms as a way to greater wealth. However, for those experienced and astute investors, it can be possible for them to profit but this is only for the small minority.

Secrets of Being Successful When Buying Shares Online

With the fast paced advancement and online trading on the rise each day, lot of people have resorted to buying shares online. There are lots of consulting services if you are looking to buy shares online. Their guidelines would be helpful in gaining high returns on your investments. They will be providing you user name and pass word enabling you to view the news letter sent by them every weekend, account activity and lots more.

Usually they will be sending you up to five stocks every week. They will be providing you analysis about every stock, including Equity, Book Value, Financial results for 5 years, Ratio analysis and rate of growth for 5 years, Latest quarterly results, 52 weeks High/Low, Latest earning per share, Share price graph for 1 year, Share holding pattern etc. They will suggest you when to buy shares online and how much to invest, most probably when you can get 25-30% return on any stock.

If you would like to get high returns on your small investments, you need to follow the suggestions given in their news letters carefully.

Furthermore you are expected to follow the below mentioned five pointers, along with the news letter guidelines when you buy shares online. They are as follows:

1. You will be given call put options inclusive of target, stop loss and elaborated analysis every week.

2. You will be given details on shares every week and their corresponding rating

3. Three different sectors that can perform well in the coming week will be informed.

4. You will be provided with I stock along with stop loss and detailed analysis every week.

5. You would be suggested how much you can invest in any multi-bagger stock every week.

If you follow all the above said information, you would be successful when buy shares on line.

Investing in Shares – How to Save $5,000 Every Time You Buy Shares

Are you tired of watching other people make a killing on the stock market? I was always worried about investing in shares and losing my money. You know, getting in at exactly the wrong time. But that was before I discovered the secret that less than 5% of stock investors know.

When you invest in shares there are lots of things to consider. But most people hit a brick wall because they don’t know the best time to invest. I was exactly like this; I was so worried about not getting in at a high price, that I ended up not getting in at all. And then I watched as other people made a killing and I was left disappointed. So let me give you these words of advice…you can take that stock investing leap and not come crashing down. You just need to know how.

Whilst a good Broker is worth his weight in gold and can give you sound advice on what stocks to buy and when to buy them, you’re still investing just like the novices. If you want to invest in shares the 21st Century way, you need to add some additional weapons to your arsenal.

My number one secret weapon to investing in shares is “Buying Shares at a Discount”. And when you do you can save $5000 or more. When you buy shares at a discount, you immediately reduce your risk because the stock price would need to fall a lot before you lost any money. This means that trying to pick the highs and lows (which is impossible anyway) becomes less important.

And when you buy stocks at a discount you effectively make an instant profit. This is not illegal and not a scam. So instead of going crazy trying to pick the exact time to buy stocks, you can mitigate the risk simply and easily with this strategy.

Now this strategy is something anyone can do, in fact those who know how use it all the time; but you won’t find many talking about it. We think the average investor should be able to enjoy this strategy. If you’d like to save $5,000 or more when you buy stocks, take a look at this free video… Investing in Shares

Why Are We Reluctant to Buy Shares When They Are Currently So Cheap?

Stock markets generally move in cycles. There are times when the economy is strong and share prices are trending nicely upwards, and conversely there are times, such as now, when the economy is looking weak and shares are trading at very low levels. So why aren’t we all rushing to buy shares in this current economic climate?

Well I think sentiment has a major part to play here. You only have to switch on the news to see jobs being cut, large companies closing down and the latest news of the upcoming recession on a daily basis. It’s all extremely depressing and is a major reason why people are not at all positive about shares. This is a common response to all the negative news being broadcast but it’s not necessarily the most rational response.

If you take a step back and look at the current share prices of a few of the largest and most profitable stock market listed companies, you will probably notice how low their share price is currently trading at, particularly when compared to a few years ago. Now take a look at how their profits (and future predicted profits) correspond with these same profit levels of a few years ago. In a lot of cases you will see that these companies are now valued far too low, even allowing for a tougher trading environment in the next few years.

Therefore this means that a lot of these companies are hugely undervalued and yet there are still very few people actually buying, so is negative sentiment and the threat of a recession the only reason why this is the case?

Well I think another reason is because there are fewer genuine investors operating in the stock market nowadays. In this era when short-term trading facilities are available to almost everyone, a lot of people buy and sell shares over a shorter period of time and speculate on the short-term price of a share using things like options and spread bets. Indeed some people believe the days of traditional buy and hold investing are behind us.

As with society in general, we are all so impatient nowadays and few of us like to buy shares and hold on to them for years and years like Warren Buffett, for example. I still think this is a decent investment strategy but there’s no doubting the appeal of short-term trading because in this volatile market, shares can now move 10-20% in a day quite easily, and yet this used to be completely unheard of.

So overall I think there are a number of reasons why investors are not rushing to buy shares. Negative sentiment and the threat of a recession is the main reason, but I think the availability of short-term trading is also a factor.

How to Buy Shares Using Stock Trading Software

One of the best way to make good decisions when buying stocks is by using stock trading software. This is especially important for someone taking the final steps in jumping into the world of trading stocks. These often easy to use products can do a great amount to take the guess work out of buying shares by doing most of research you need to make sounds financial decisions.

Often when first learning how to buy shares, a person is usually overwhelmed with the amount of information they have to comprehend to just buy a single share of stock. Without stock trading software, a person could spend countless hours researching investing without any success. At this rate it is very easy to become discouraged and give up on stocks all together.

This is not the case with stock trading software. A complete beginner with no prior knowledge of the stock market can start making researched backed decision about their portfolio in no time. With a few clicks and setting modifications a good stock trading software can analyze stocks all over the world market and give you essential feed back you NEED to know before you start investing.

On top of this, the information it gives you is current and in the moment. This is crucial for making informed stock trades since the market is extremely dynamic. If you spend 3 days researching a stock before you buy it, there is a very good chance you might miss out on a great chance to buy and make some quick cash. This problem is quickly solved with stock trading software however. You will be up to date at all times.

Because of all these outstanding reasons I HIGHLY encourage you to check out some investing software when learning how to buy shares

A Beginner’s Guide to Buying Shares Intelligently

Practically everyone takes a flawed approach to buying stocks. So, practically everyone ends up with a rotten loss-making portfolio.

So here’s a beginner’s (or for that matter, even an expert’s) list of dos and don’ts…

But remember… you have to do lots of “donkey” work to become a successful “bull” on the stock markets. You must also have monumental patience and play stocks with a long-term perspective. Hoping to multiply money in quick time is a definite recipe for disaster.

1. First and foremost, you have to understand and appreciate that when you are buying stocks you are NOT buying some symbols on the screen. Instead, you are buying an underlying business. You are becoming a partner in that business. Therefore, you share its profits and its losses. That is why the term… shareholder.

2. It is but obvious that you have to buy sunrise businesses. If the products and services of any industry are not in demand, it would be foolhardy to become a partner in such businesses.

3. However, quite often, two companies in the “same industry” follow diametrically opposite paths… one profitable and the other losing money. The answer to this oddity lies in the quality of entrepreneurship. Good managements make good businesses. Bad managements fail frequently. Backing proven managers is, therefore, the most sacrosanct and inviolable principle of investing in stocks.

4. Sometimes even good managements and good businesses go through tough times. Therefore, apart from ascertaining that the company is running a good business and managed by a good team, you have to ensure that it makes good sales and earns good profits. Never invest in a loss-making company, unless you see strong signs of a turnaround in the near future.

5. Operational performance is one part of the story. The other significant aspect is its financial foundation. All businesses have to withstand the vagaries of the economy. For example, too much debt may not be an issue during good times. But it can seriously threaten even the existence of the company when economic conditions turn bleak. As such, strong balance sheets always make a dependable choice.

6. Wait… a company with excellent business, excellent management, excellent financial strength and excellent profits, is not the green signal to cut your cheque. No. There is one more critical parameter – its market price. If the price is too high relative to its underlying valuation, even excellent shares will not make money for you. A reasonable PEG ratio determines a reasonable stock to buy.

This is the safe, sensible and steady approach to buying shares. It would surely give you a lot more winners than losers. And, to succeed you don’t need ALL the players to do well. A few good performances, backed by at least average play from others will definitely win you most matches.