Day Trading Strategies for Beginners

Day Trading Strategies for Beginners

Day trading is like starting a special career, there are a lot of things to put in mind, especially when you are new to it. Day trading is the process of buying and selling a financial instrument within a single trading day. It can also occur multiple times and in any marketplace, but most commonly in the foreign-exchange market, over the course of the day. It takes the benefits of small price moves, thus, making it a profitable game. However, like any other game, it can also be so risky for novice and for those who don’t follow a well-plotted method.

Day traders are normally refined and financially well-off. They use high amounts of leverage and short-term strategies in trading to capitalize on small price movements in highly-liquid stocks or currencies. They look to take advantage of volatility every trading day, and lessen overnight risk brought by events, such as a bad earnings surprise, that might occur after the markets are closed.

Now, let’s take a look at some of the strategies that can guide in the right path as you start your journey in day trading. Learn how to day trade like a pro.

  1. Make sure to prepare a target price before diving in

If you are planning to purchase a long position, think in advance how much return is acceptable, also a stop-loss level, if the trade turns against you. Afterwards, stick with your decisions.  This helps you to restrict your potential loss and keeps you from being greedy if price hits to an untenable level.

  1. Be enduring

It may appear ironic, successful day traders often don’t trade every day. They may be in the market, at their computer, but if they don’t notice opportunities that hit their criteria, they will not trade that day. That is far better than going against your own best decision out of an impatient desire to just do something.

  1. Be self-controlled

Remember that you have to prepare a trading plan and stick to it. If you are trading on your own, impulsive behavior can be your worst nemesis. Greed can affect you for too long and fear can cause you to give up too soon. Keep in mind that you don’t get rich in a single trade.

  1. Use situations where demand and supply are extremely imbalanced as your entry points

If the supply is close to exhaustion and there remains investors who are willing to buy, the price is more likely to go higher. However, if there are still spare supply and no willing buyers, the price will decline.

  1. Don’t be frightened to click the “order” button

Beginner traders often get paralyzed by analysis, because they get enfolded in looking at the candles on their screen and can’t move and decide immediately when opportunity suddenly knocks before them. If you are disciplined enough and you always work your plan, placing the order should be automatic. If ever you are wrong, your stops will get you out without major loss.

Day trading can be a difficult skill to master, it requires time, skill and discipline. The strategies mentioned above can guide you in developing profitable plans. With adequate practice and persistent performance assessment, you can greatly increase your chances of trading success.

How to Buy Stocks Online Without a Broker?

How to Buy Stocks Online Without a Broker?

You don’t need to have a broker to buy stocks, mainly if you don’t want any expert advice to guide you in choosing which stocks to buy or not, because brokers can sometimes cost extra money. It is true that the well-known way to buy and sell investments is by opening a brokerage account, but still, there are others who want to buy stock without a broker. If you want to go down this way to business ownership, you can do so, but with varying degrees of success – there is no condition that you have to work with a broker to invest in stocks mutual funds, particularly equity funds.

You have two choices if you like to buy stock without a broker: The first is to use a discount brokerage service online. The second is to buy stocks directly from the company.

However, direct investing offers some advantages and disadvantages, with which you will have to weigh things based on your personal condition. You will still need to decide whether such an approach is appropriate for you given your unique circumstances and preferences.

 BUY ONLINE WITHOUT A BROKER

  • Look for a discount brokerage that fits your needs.

Check the price of buying individual stocks directly and account minimums. Other companies provide discounted trades, if you maintain a high balance in your account. Oftentimes, there are hidden fees. When you differentiate companies, find the trading cost and search the section that reveals the fees.

  • Observe how hard it is to utilize the online broker’s software.

Other companies provide good buys in trading stocks, but sometimes it is quite hard to trade, unless you’re a technology-savvy. Some companies provide a spot to try their trading software. Use their demonstration model prior opening your account.

  • Open the account and send your check or money order.

Other companies provide automatic withdrawal from a checking account, but most it needs you to mail in a check to put money in the account. You are ready to trade once the money is in your account.

  • Choose the stock and number of shares you want to buy.

You also need to decide on the cost you wish to pay. You can pick a market price or limit your order. A limit order means you will only pay a specified amount for a stock. If the stock did not drop to that price, you will not be able to buy it. Click on “Buy” after you decide all or nothing. This option just means you do not want a partial buying or if  you can’t get the order, kill it.

DIRECT PURCHASE PLAN

  • Find companies that provide the right to buy stocks directly from their transfer agent, the company that handles their stock. Often, you will see the information on the company’s website under investor relations and DRR or DRIP programs.
  • Look for the resource area to find a list of companies that give DRIP plans. Once you find the company, simply find their site and their minimums. Sometimes, there is a minimum investment with lesser amounts if you add to the account.
  • Open an account with the company’s transfer agent. You can buy anytime or have automatic regular investments.
FACTORS TO CONSIDER IN CHOOSING AN ONLINE BROKER

FACTORS TO CONSIDER IN CHOOSING AN ONLINE BROKER

As an investor, one of the most critical decisions you will make is on how to pick or choose a broker. Choosing the right online brokerage boils down to your priorities. Some investors are prepared to pay higher trade commissions for a state-of-the-art platform. There are a lot of companies providing a brokerage service on the web, and some of them are just as good or better than traditional. But the real question is how to choose which online broker is best for you? Settling on the best choice for you means considering different factors, which may vary from broker to broker.

Below are some factors you would want to consider in choosing an online broker.

1. Markdown is not always a good deal

If you are a neophyte investor, you may consider starting out with a full-service broker. It’s often best to help the beginners to build confidence and knowledge  about the markets. And as you become a more refined investor, you can move on to investing more of your money on your own.

2. Accessibility is the key

You may try to look at the company’s website at different times throughout the day, especially during the hours of peak trading. Try to observe how fast their site loads and check some of the links to confirm that there are no technical issues or difficulties.

3. Alternative trading offers flexibility

You may check the firm’s other options that they offer for placing trades. Other alternatives may consist of touch-tone telephone trades, fax ordering, or doing it the low-tech way of talking to a broker over the phone. You should make sure to pay attention to these alternatives because they often differ from an online trade.

4. Broker’s background matters

You should do some essential research about the broker’s background before buying a stock. As much as possible, you should find out everything about your broker.

5. Price doesn’t mean everything

The price may be an indicative of the quality. You should not open an account with a broker simply because it gives the lowest commission price. Company’s advertised rates vary between zero and $40 per trade, with the average around $20. You may find that the advertised commission rate may not be applicable to the type of trade you want to do.

6. Minimum payments may not be minimal

You may check how much of an initial payment the firm requires for you to open an account. Be cautious of high minimum balances, some companies require as much as $10,000 to start. This might be okay for some investors, but not others.

 7. Product choices are essential

When picking a brokerage, a lot of people are probably thinking initially about buying stocks. You should remember that there are also many investment alternatives that are not specifically provided by every company. This includes CDs, municipal bonds, futures, options and even gold or silver certificates. Some brokerages also provide other financial services, such as checking accounts and credit cards.

Online broker can help you buy and sell stocks effortlessly. The essential tools for the trade are vital to every progressive venture and searching for success in the market starts with choosing the right broker.

Reasons Why You Should Start Investing Now

Reasons Why You Should Start Investing Now

Investing lets you put your hard-earned money into something that has the great ability to earn strong rates of return. So, if you want to start building your wealth, start investing your money.

Indeed, there exist some reasons why other people don’t invest which might be your reasons for not investing, too. The uncertainty of  the last recession might remain high. People tend to get intimidated by the idea of congested trading floors and blaring traders. Most of all, there is a general lack of knowledge about how to get your portfolio started. But investing in the stock market is normally quite easy. What else, it is basically a very sensible strategy to guard your financial future.

If you don’t invest, you could miss out some opportunities to increase your financial value. It is true that in investing, you also have the potential to lose your money, but if you invest intelligently, the potential to obtain money is higher than if never invest at all.

The good news is, it is never too late to start investing, and below are reasons why you should start now than later.

1. The stock market doesn’t differentiate people

Anyone can participate in investing. All you need is a measly cash to begin your investment portfolio, some stocks actually cost less than $20, and a basic knowledge of how the stock market really works. With those simple at hand, you could be on your way to effectively gaining profits and growing your investment in no time.

2. Your investment is composed to propagate

Compound interest is undoubtedly one of the most powerful wealth-producing process of all time. But in order for it to work its magic, you have to give it some time. For instance, if you invest $1000 at a 10% interest rate, after the first year you will have $1100. But next year’s interest will be on your original investment, plus the interest you acquired in the first year. So, instead of gaining another $100 in interest, you will now be earning $110. And each year, you have your money invested, the amount of interest you earn will grow also. Therefore, the sooner you start investing, the longer compound interest to grow.

3. Stocks can make you money regularly

Stocks can serve as a good source of regular income, in addition to long-term growth. Investors gain capital earnings from an increased stock’s price and some companies dispense dividends based on earnings to their investors at regular intervals. Otherwise, if you choose to invest in bonds, they will normally make you yearly interest.

4. No need to pick individual stocks

You can always invest in an index fund that traces the whole stock market. This kind of passive investing is far less dangerous than individual securities and doesn’t need any long research or interest in a business operation.

5. Choosing not to invest could be more risky

The simple fact of not investing is actually a financial harm itself. If you don’t invest, your money is not gaining any interest and your wealth is far from growing. In spite of the regular instabilities of the stock market, a strong portfolio has been proven to grow your original investment over time.

Investing can actually help you save for retirement, a new house, college tuition, starting a firm,and any other financial aims you might desire.

Investing is a very smart way of making your extra cash work for you. It actually doesn’t have to be so complex and unreachable system reserved only for high-profiled people. Through investing money wisely in different long-term stocks, all you have to do is sit back, relax and watch your investment cultivate.

BASIC RULES TO REMEMBER IN INVESTING

BASIC RULES TO REMEMBER IN INVESTING

Investing is like a game, it will require you to understand and master the rules to get into success. This is important especially for beginners in investing. For beginners, investing starts with an understanding that every price is determined by supply and demand.

Hence, we should understand that regardless of how young or old you are, learning the basics in anything is very important. Most people take lessons to master the process of doing a certain thing. Unfortunately, most people never learn the simple basics of investing before investing their hard-earned money.

The following rules are the basics which you have to remember about investing.

Basic rule #1. Understand the kind of income you are working for

Most people think is just to make money out of investing. They don’t come to think that there are different kinds of money to work for. There are three kinds of income, and they are as follows:

Ordinary earned income

            This is basically and generally the money you get from a job via a paycheck or payslip. It is the highest-taxed income, thus, the hardest to earn and build wealth  with.

Portfolio income

            This is derived from paper assets such as stocks, bonds and mutual funds.

Passive income

            This is derived from real estate, royalties and distributions. Compare to ordinary earned income, it is the lowest-taxed income, with many tax benefits, thus, it is the easiest to earn and build wealth with.

Basic rule #2. Transform ordinary income into passive one

Most people begin their life out by working for ordinary earned income as, of course, an employee. The way to establishing wealth, then begins with understanding or knowing that there are other types of income as resourcefully as possible.

Basic rule #3. The investor is the asset or liability

A lot of people think that investing is a dangerous thing. The reality, however, is that it is the investor who’s dangerous. Understand that the investor is the asset or liability. There are investors who lose money while others are making it. That is, in fact, a good investor love to run behind a dangerous investor because that is where the real investment bargains can be found.

Basic rule #4. Always get prepared

Most people try to anticipate what and when things will happen. But a real investor is always prepared for anything that can happen. If you are not prepared enough with everything around you, a great opportunity will pass you by. Always remember that it is now important to anticipate what will happen. Instead, focus on your own, on what you desire, to keep your eyes open to what is happening, most especially, to respond to every opportunity that passes you by. This can be done through continuously educating yourself and applying your knowledge.

Basic rule #5. Great deals attract money

One of the biggest concerns you might have as a beginner in investing is how would you raise money if you found a great deal. The thing goes with the previous rule. Be prepared, educate yourself and gain experience. With that, you can find a great deal, the money will find you or visa-versa, you will find the money.

Simple Things You Need To Know About Online Stock Trading

Simple Things You Need To Know About Online Stock Trading

Before, people primarily depend on the services of a stock broker, who would make buy and sell orders on the customer’s behalf. But today, stock trading has become easier and manageably faster and available to all in the last 20 years, thanks to online brokerages. Individuals of today’s generation are able to perform buy and sell orders themselves in a split of a second using computerized trading service.

However, even with the present technology,trading online can still feel daunting and hiring the right online broker can build a difference in the correct investment decision. Trading stocks online can be a good source of initial or incremental income as a work from home-based option. To become a successful trader and really maximize the opportunity, it is very important to know what online trading really means, the tools in trading, and the theory behind it.

Read on for the simple things you need to know to have a better experience with online stock trading.

SELECT THE RIGHT ONLINE STOCK TRADING COMPANY

Indeed, doing a  research about various online trading companies is a very important thing, for you to get a better financial return on your investment. Online investment research needs attaining important facts and empirical data to make good and sound investment decisions. Luckily, a lot of online brokerages offer online tools and information to guide and help investors in choosing where to invest.

For rookies, you’d want to do some initial research about the company’s reputation. You may read reviews and comments from customers by other investors, anything that depicts the issues of mismanagement of money and personal identity is a sure big red flag.

WATCH COMMISSIONS

Paying for a broker is more expensive than trading online. You wouldn’t want to pay or spend a large amount of money for a commission on every transaction. However,  large companies normally get a large commission compare to smaller ones, so it is hereby suggested to do a research carefully first.

WATCH UNSEEN COSTS

Although online trading causes you to spend a much lower amount than what you would pay for a broker, you should still have to watch for unseen costs and facts that are usually divulged in the fine print. For instance, you may need to save a minimum amount in your account balance, or else, you will be charged a regular maintenance fee. Make sure to know what you are getting when you trade online, because some mistakes can be costly.

PICK AN EASY-TO-NAVIGATE PLATFORM

Some of these online platforms can be daunting and complex. Whether you have an easy or a bit complicated trading want, you still need an easy to navigate platform to help get familiarized with the environment of online trading. Will you need any special software or online tools for trading? It is still good to pick or select one that is easy to navigate and utilize, so you completely focus on your trading needs that will fundamentally help you avoid errors and committing costly mistakes.

 SEARCH FOR A WIDE VARIETY OF GOOD ONLINE TRADING COMPANIES

 You should gain access to a wide selection of good  online trading companies to choose from to buy, sell and trade in order to optimize your return. You can do more than in this case, it is certainly better so you gain knowledge about various companies and select the best on for your investment.

Educate yourself fully when it comes to working with online trading companies. The more you idea and knowledge you possessed, the more confident you will be with your stock market endeavors.

Be SMART in setting your Marketing Goals

Be SMART in setting your Marketing Goals

Setting marketing goal is probably one of the hardest and toughest things marketers have to do, because the goals  should be suitable for and back up the overall business goals. Marketing goals are the building blocks or the foundation of the marketing plan, the starting point of the plan. In short, these are specific objectives plotted in a marketing plan which can be tasks, quotas, improvements in KPIs, or other performance-based benchmarks used to measure marketing success. They can be a big  number, such as a certain year-end revenue figure. They might be a smaller number over a shorter period of time, such as four new clients per month. When explicitly stated, the goals are simple statement of the business’ culture or attitude: to be number one in customer satisfaction in a particular industry.

What does it mean to be SMART in setting your Marketing Goals?

Goals are great, but the thing is, they can be of no use if they are not grounded in reality. That’s why it’s very critical to set SMART goals.

Setting a SMART goal should be:

  • Specific

Set real number with real deadlines. Avoid unclear-set goals.

  • Measurable

Make sure that you can track your goal. Do not hide behind buzzwords like “brand engagement” or “social influence.”

  • Attainable

Work toward a goal that is arduous, but possible to achieve. Do not try to take over the world in one night.

  • Realistic

Be honest with yourself, because you know what your abilities are, and your team’s. Do  not forget any challenges you may need to overcome.

  • Time-bound

Give yourself a deadline. Do not keep pushing yourself towards a goal that you may “hit someday”.

Simple Steps in Goal Setting:

Step 1: Start with situation analysis

This first step defines your company, products and services, then shows how the benefits you provide set you apart from your competition.

Make your situation analysis a succinct overview of your company’s strengths, weaknesses, opportunities and threats. Strengths and weaknesses refer to characteristics that exist within your business, while opportunities and threats refer to outside factors. To determine your company’s strengths, consider the ways that its products are superior to others, or if your service is more comprehensive, for example. What do you offer that gives your business a competitive advantage? Weaknesses, on the other hand, can be anything from operating in a highly saturated market to lack of experienced staff members.

Next, describe any external opportunities you can capitalize on, such as an expanding market for your product. Don’t forget to include any external threats to your company’s ability to gain market share so that succeeding sections of your plan can detail the ways you’ll overcome those threats.

Step 2: Describe your target consumers or audience

You can describe prospects in terms of demographics—age, sex, family composition, earnings and geographic location—as well as lifestyle. Ask yourself the following: Are my customers conservative or innovative? Leaders or followers? Timid or aggressive? Traditional or modern? Introverted or extroverted? How often do they purchase what I offer? In what quantity?

You may define your target audience based on their type of business, job title, size of business, geographic location or any other characteristics that make them possible prospects, if you are a business-to-business marketer. No matter who your target audience is, be sure to scarcely define them in this section, because it will be your guide as you plan your media and public relations campaigns.

Step 3: Write your marketing goals

What do you want your marketing plan to achieve? For example, are you hoping for a 20 percent increase in sales of your product per quarter? Write down a short list of goals—and make them measurable so that you’ll know when you’ve achieved them.

Step 4: Create the marketing communications strategies and techniques you’ll utilize.

This section is the heart and soul of your marketing plan.

A good marketing program prospects at all stages of your sales cycle. Some marketing tactics, such as many forms of advertising, public relations and direct marketing, are great for reaching cold prospects. Warm prospects—those who’ve previously been exposed to your marketing message and perhaps even met you personally—will respond best to permission-based email, loyalty programs and customer appreciation events, among others. Your hottest prospects are individuals who’ve been exposed to your sales and marketing messages and are ready to close a sale. Generally, interpersonal sales contact (whether in person, by phone, or email) combined with marketing adds the final heat necessary to close sales.

To complete your tactics section, outline your primary marketing strategies, then include a variety of tactics you’ll use to reach prospects at some point in your sales cycle. For example, you might combine outdoor billboards, print advertising and online local searches to reach cold prospects, but use email to contact your warm prospects.

Step 5: Set your marketing budget

You will have to dedicate a percentage of projected gross sales to your yearly marketing budget. Of course, when starting a business, this may mean using newly acquired funding, borrowing or self-financing. Just bear this in mind—marketing is absolutely essential to the success of your business. And with so many different kinds of tactics available for reaching out to every conceivable audience niche, there’s a mix to fit even the tightest budget.