Posts tagged: trading

Aug 22 2011

Stock Market Trading



stock market trading

Stock Market Trading Strategies

Stock market trading involves the buying and selling of a company’s shares on the stock market. In addition to actual ownership of a company’s stock, traders could  spread bet on the rise or fall of a company’s share price.

In spread betting , you speculate on the underlying value of a share. Consequently you do not actually own any company stocks.

Many stock traders ‘buy’ and ‘sell’, or open and close positions, according to a strategy. There are many possible stock market strategies that you might want to develop over time. One of the most important factors in any strategy is an understanding of the company whose stock you are trading, the wider stock market and the larger factors such as the economy.

A company that has just announced, for example, a long-term restructuring plan may be on the road to recovery, in which case you may consider a long-term ‘buy-and-hold’ strategy. The general aim is to sell your holding when it is in as profitable a position as possible, however if you are not making a profit, you may need to sell your shares in order to limit losses.

Fundamental analysis can be a useful tool when developing a stock trading strategy. Fundamental analysis, when it comes to share trading, involves trying to determine a stock’s intrinsic worth.

Fundamental analysis of a stock’s worth can be undertaken using factors such as the company’s financial statements, its profitability, the strength of its executive team, its competitive strengths/weaknesses and its position in the overall market.

Although fundamental analysis can be highly intensive, at its heart it is a simple idea. If the current share price is lower than what you believe the stock is actually worth, you may seek to buy its stock in the anticipation that it will move closer to the true value.

Stock trading strategies can also be aided by technical analysis. Technical analysis differs to fundamental analysis in that it relies on an interpretation of past price movements.

If a share price has been consistently rising over a period of time, you may decide this trend will continue. Technical analysis, therefore, leads to a stock-picking strategy that relies on the idea that the past can be, to some degree, a guide to the future. This is, of course, not always the case.

Trading can, for many market participants, be affected by impulsiveness, greed and fear. Traders may decide to abandon a long-term strategy in favour of short-term trading in response to a bull or bear market.

Investors might believe that a share price will fall, so they may sell en-masse, and consequently the share price falls. This is not of course always the case.

Be aware that spread betting does involve a high degree of risk to your funds and you can lose more than your initial stake. Please ensure that it matches your investment requirements as it might not be suitable for all classes of investor. Before making any trades, make sure that you fully appreciate the risk. Only spread bet with funds that you can afford to lose. Obtain independent financial advice if necessary.

About the Author

Situated in the centre of London’s financial district, Daniel Jones is a seasoned spread betting professional and commentator on some of the leading financial spread betting sites.

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If someone told you they knew a better way to make money in today’s stock market, would you believe them? What if they said their approach, which only takes a few hours a week to maintain, could double your net worth every three to four years and keep your downside risk extremely low? While this may seem impossible to most investors, author Michael Turner—a civil (and then software) engineer turned professional portfolio manager—has accomplished this objective, and with his new book 10: The Essential Rules for Beating the Market, he’ll show you how to do the same.After selling his successful software company in 1997, Turner entrusted his nest egg to one of the biggest investment firms on Wall Street. And over the course of two years, they proceeded to lose almost half of it! That’s when Turner decided to see what he could do on his own, and that’s when he discovered that the key to capturing consistent profits in the stock market is having a well-defined set of trading rules and the discipline to follow those rules. With this in mind, he developed a straightforward investment strategy—one based on ten specific rules—that allowed him to build a world-class portfolio of stocks and generate significant returns in any market.Filled with in-depth insights and practical advice, 10 takes you step by step through the process of creating and managing a market-beating stock portfolio with this proven approach, and shows you how to select and trade stocks using a combination of both fundamental and technical analysis. Following the rules and methodologies outlined throughout these pages, you’ll quickly learn how to get into a stock at the right time and, more importantly, when to exit that position. You’ll also discover how to view the market—as well as the various industry sectors within it—and interpret what is happening on a broader scale, so you can maximize profits on individual positions and boost the overall performance of

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New – The key to making consistent profits in the stock market is to have a well-defined set of trading rules. This book explains how to develop an investment strategy for building a world-class portfolio in any market.

 10: The Essential Rules for Beating the Market


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$24.95


If someone told you they knew a better way to make money in today’s stock market, would you believe them? What if they said their approach, which only takes a few hours a week to maintain, could double your net worth every three to four years and keep your downside risk extremely low? While this may seem impossible to most investors, author Michael Turner—a civil (and then software) engineer turned professional portfolio manager—has accomplished this objective, and with his new book 10: The Essential Rules for Beating the Market, he’ll show you how to do the same.After selling his successful software company in 1997, Turner entrusted his nest egg to one of the biggest investment firms on Wall Street. And over the course of two years, they proceeded to lose almost half of it! That’s when Turner decided to see what he could do on his own, and that’s when he discovered that the key to capturing consistent profits in the stock market is having a well-defined set of trading rules and the discipline to follow those rules. With this in mind, he developed a straightforward investment strategy—one based on ten specific rules—that allowed him to build a world-class portfolio of stocks and generate significant returns in any market.Filled with in-depth insights and practical advice, 10 takes you step by step through the process of creating and managing a market-beating stock portfolio with this proven approach, and shows you how to select and trade stocks using a combination of both fundamental and technical analysis. Following the rules and methodologies outlined throughout these pages, you’ll quickly learn how to get into a stock at the right time and, more importantly, when to exit that position. You’ll also discover how to view the market—as well as the various industry sectors within it—and interpret what is happening on a broader scale, so you can maximize profits on individual positions and boost the overall performance of

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New – The key to making consistent profits in the stock market is to have a well-defined set of trading rules. This book explains how to develop an investment strategy for building a world-class portfolio in any market.

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New – The key to making consistent profits in the stock market is to have a well-defined set of trading rules. This book explains how to develop an investment strategy for building a world-class portfolio in any market.

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New – The key to making consistent profits in the stock market is to have a well-defined set of trading rules. This book explains how to develop an investment strategy for building a world-class portfolio in any market.

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