Posts Tagged ‘Investing’


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The Secret to Stock Market Investing and How to Be Successful

Monday, August 30th, 2010

To novices and the inexperienced, investing in the stock market can seem extremely intimidating. That is completely understandable. Trying to invest your money without knowing much about the market is akin to walking into a casino and dropping five hundred dollars on a single poker hand when you have never really played. In truth, purchasing stocks is quite easy. Investing them is the hard part. Well, really, it is more confusing than hard. Therefore it is crucial to learn as much as possible about the market and investing first. To that end, here are a couple of secrets which can really help you.

To begin with, as mentioned, investing is the hard part. Of course, you need to know a few things before buying as well. You need to start reading stock reports. See which stocks have done consistently well, which flounder, which ones are fickle, which ones seem doomed to fail, et cetera. A little research can go a long way – it can literally pay off, in fact.

So, just for argument’s sake, let us say that you have bought your stocks. They are good stocks and you want to do them justice – but you are not at all sure how to sell them. No problem! You do not have to make any faux pas that wind up losing you money. For one thing, never let fear hold you back. If you keep a stock just because you are afraid of what might happen if you sell it, then the market probably is not the place for you. You need to strip some emotions away from yourself, at least as they apply to investing. You need to get rid of all avarice.

You need to discard fear. You need to dump feelings of anxiety. You need to make nervousness take a hike. Believe it or not, doing these things can make all the difference in your success.

But how can get yet rid of these completely natural, understandable emotions? You just need to understand that sometimes, you may lose money. Not all of your investments are going to do well all the time. When they do not, you have to consider that an opportunity. The stock market presents a financial learning experience. Realize that losing money is as natural and expected as making it. Just by doing so, you may find that you win more often.

To that end however, you can implement some “insurance.” Simply put, you should never invest a load of money in just one stock. Spread your money around; that way, if one stock fails, you have not lost everything.

The types of stocks you choose to invest in are also important. You need to look for investments which carry a low risk. Some investors, fuelled by emotion, feel like they are not really investing if they do not take some chances. That is not true at all. Really, you are taking a chance any time you invest money in anything. Therefore, there is no reason to be foolhardy by putting all your eggs into one basket.

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The Skill of Using Stock Metadata as a Stock Market Investing and Trading Tool

Wednesday, August 25th, 2010

What Is Stock Metadata?

Simply stated, metadata is data about data. And when properly understood and interpreted, stock market metadata, also simply referred to as stock metadata, can give you the edge you need to help you picture what’s happening with a company’s stock. So if there’s a trading trend developing, one of the tools you can use to spot a trend as it moves along would be stock metadata.

Working with Stock Metadata?

When you go online, you find vast varieties of stock charts, current and historical stock market results, and an increasing number of online news sources. But finding anything on stock metadata is challenging.

In order to get more of a feel how stock metadata can be used, consider any of the following scenarios:

You’re planning to buy shares in a company and you want to have an idea during what 15-minute period of the trading day do shares statistically trade at their lowest points You want to sell your shares and you want to have an idea of the best time of the day to execute your trade You want to know the iterations of the various price range differences for a stock to help you time your trade and get a price that’s advantageous to you You want to buy or sell a large block of shares and you want to see a breakdown of the different times of the day when the volume of shares traded for certain stock is both at its highest and lowest

Answers to these and many other questions can be found by reading the topic on stock metadata reports.

Stock metadata reports are unique. For example, you can easily see the relationships that exist between the Open and Close values of stock prices for the day. You can also see what the values are for the other days, day after day.

These reports can cover a specific date range for the company being featured. And, with the availability of multiple arrays of values for the different group categories within each of the arrays, there’s more than a sufficient amount of data there to complete a thorough analysis. This is easy to see when you look at a report.

Stock metadata can also be used to show market trading activity for shares covering 15-minute blocks of time. Statistically speaking, you can quickly see

Time periods when highest and lowest prices were reached Time periods when highest and lowest trading volumes were reached

Metadata answers numerous questions spanning any period of time (days, months or years) like:

How many times during each of the 15-minute periods during normal trading hours have shares traded at the high of the day? How about at the low of the day? What times of the day recorded the highest volume of trades? How about the lowest volume of trades?

Why is this type of stock metadata important? Statistically speaking, it identifies the potential best time of the day to buy or sell shares. When you learn to use metadata, you come to realize that:

History tends to repeat itself Numbers don’t lie, and The trend is your friend.

These statements are easy to understand. Stock metadata makes it simple to prove them true.

Until now, the general public has not been able to easily locate a viable source for stock metadata and stock market metadata. That is until now with Stock-Market-Keywords.com and its Bulls-with-Bears page changing all that. And the good new is that Bulls-with-Bears page already has numerous links to different sources of standard stock market information and is unique with its offering of stock metadata reports.

See today’s featured company. Not only are links included to some of the best sites for stock market information, you can access up to 5 distinct stock metadata reports shown listed below for each company being featured there today. These reports are published every day of the week, Monday to Friday. Click on any of the report titles below for a complete description of it.

Daily Historical Metadata Detail Daily Historical Metadata Summary 15-minute Metadata Detail 15-minute Metadata Summary 15-minute Hi-Low Counts

Furthermore, while you on the Bulls-with-Bears page, you can also get to previous featured companies and find their corresponding reports for them.

Does Using Stock Metadata Work?

Stock charts present graphical images about a company’s stock performance. There are multiple patterns to learn about. These must be understood and correctly interpreted. When used properly, they can be quite effective for stock trading and investing purposes.

The advantage of stock metadata is that it uses something that you have been using all of your life: numbers. If you know how to do simple addition and subtraction, and you know how to count, then you can use metadata.

Here’s actual proof of stock metadata producing results. Check out the following link to the Yahoo! message board for Morgan Stanley stock. It’s a direct result of the analysis I completed using stock metadata as my source.

After lunch on Friday, October 9, 2009, I submitted my prediction regarding the closing price of the day for Morgan Stanley shares. I developed the number by using specific selection criteria against the Daily Historical Metadata Detail report for MS stock. When you read the entry I posted, you’ll see I stated that if Bulls ruled at the end of the day, the stock would close at 32.18.

Well MS actually closed at 32.09 but a few seconds later, the first transaction in after hours trading was at, are you ready for this, 32.18. Talk about making an accurate prediction. I’ll let you be the judge.

Stan Pokutylowicz

Senior Information Technology Specialist and stock market trader/investor

Techniques For Investing in The Stock Market

Monday, August 23rd, 2010

Techniques for investing in the stock market come in a variety of flavors. Every investor has its own way of investing. When it comes to stock  investing there are many techniques as there are many investments  to choose from. To help you find and define your style, in this article we will cover the following basic investment styles:
•    Value investing
•    Growth investing
•    Technical investing.

Value Investing
The objective of value investing is to find  the bargains – cheap stocks that are overlooked by  the market.Value investor  look for companies that are financially strong ,with low stock prices compared to their intrinsic value (their growth and earnings).

Growth Investing
In contrast to value investing, growth investing  favors  stocks of companies whose earnings or revenues are growing faster than  the industry or the overall market.  The price-to-earnings(P/E) ratios is very important in the work of growth investor .Growth  companies often have higher P/E ratios which  means higher stock prices.

Technical Investing
Technical Investing is based on the use of technical analysis. Technicians study the charts of stock historical price and volume patterns  as guide to future stock price direction. Such investment style is built on three principles:
- Stock prices and volume patterns are predictive of others
-Stock prices and volume activities have a tendency to follow trend.
-Prices reflect all the available market forces at any given time.

Technical investing, by comparison to value and growth styles,  relies heavily on non-economic factors.

These basic techniques for investing in the stock market  are not for everyone. An investing technique can work for one investor and fail for the other. However, just  remember there are  no perfect techniques and that all these investment styles are complementary to each other. They all give insights about an investment. From these basic techniques, you can define and design your own techniques for investing in the stock market .

Christian Bayonne is a do-it-yourself investor, who has been investing in stocks for the last decade. He is also the co-founder of Stock Picks Canada, Europe, US.

Want a Stock Market Investing and Trading Tool? Try Stock Market Metadata

Monday, August 23rd, 2010

What Is Stock Metadata?

Simply stated, metadata is data about data. And when properly understood and interpreted, stock market metadata, also simply referred to as stock metadata, can help you picture what’s happening with a company’s stock. So if there’s a trading trend developing, one of the tools you can use to spot a trend as it moves along would be stock market metadata.

Working with Stock Metadata?

When you go online, you find vast varieties of stock charts, current and historical stock market results, and an increasing number of online news sources. But finding anything on stock metadata is challenging. In order to get more of a feel how this type of information can be used, consider any of the following scenarios:

You are planning to buy shares in a company and you want to have an idea during what 15-minute period of the trading day do shares statistically trade at their lowest points You want to sell your shares and you want to have an idea of the best time of the day to execute your trade You want to know the iterations of the various price range differences for a stock to help you time your trade and get a price that’s advantageous to you You want to buy or sell a large block of shares and you want to see a breakdown of the different times of the day when the volume of shares traded for certain stock is both at its highest and lowest

Answers to these and many other questions can be found by going online and searching for it. I use Google and look either for the terms stock market metadata or stock metadata which returns links to all of the pertinent information.

Stock metadata reports are unique. For example, you can easily see the relationships that exist between the Open and Close values of stock prices for the day. You can also see what the values are for the other days, day after day.

These reports can cover a specific date range for the company being featured. And, with the availability of multiple arrays of values for the different group categories within each of the arrays, there’s more than a sufficient amount of data there to complete a thorough analysis. This is easy to see when you look at a report.

Used as an analysis tool, stock metadata can also be used to show market trading activity for shares covering 15-minute blocks of time. Statistically speaking, you can quickly see

Time periods when highest and lowest prices were reached Time periods when highest and lowest trading volumes were reached

It also provides clear answers to questions spanning any period of time (days, months or years) like:

How many times during each of the 15-minute periods during normal trading hours have shares traded at the high of the day? How about at the low of the day? What times of the day recorded the highest volume of trades? How about the lowest volume of trades?

Why is this type of information important? Statistically speaking, it identifies the potential best time of the day to buy or sell shares. When you learn to use stock market metadata, you come to realize that:

History tends to repeat itself Numbers don’t lie, and The trend is your friend.

Previously, the general public has not been able to easily locate a viable source of stock metadata and stock market metadata. Now that has been changing. When you do a search for either of those specific terms, you’re sure to find the information presented from the source sites or through links to articles written about this topic.

Look for sites that also present features on companies being traded on the major North American stock exchanges. This includes numerous links to key sources of standard stock market information as well as including a selection of stock market metadata reports.

When you choose to examine a featured company, make sure links included are to some of the best available online sites of key stock market information. Do they also have stock metadata reports for each company being feature there by them?

Look for reports that are published every day of the week, Monday to Friday. Typically, the standard report titles as listed below, also have corresponding links to site pages that explain and describe the content of each of the reports.

Daily Historical Metadata Detail Daily Historical Metadata Summary 15-minute Metadata Detail 15-minute Metadata Summary 15-minute Hi-Low Counts

Does Using Stock Metadata Work?

Stock charts present graphical images about a company’s stock performance. There are multiple patterns to learn about. These must be understood and correctly interpreted. This can get quite complicated. But when used properly, they can be quite effective for stock trading and investing purposes.

The advantage of stock metadata is that it uses something that you have been using all of your life: numbers. If you know how to do simple addition and subtraction, and you know how to count, then you can use and understand metadata.

Some people even boast of using stock metadata to predict price results. Check out the following link to the Yahoo! message board for Morgan Stanley stock. It was submitted after lunch on Friday, October 9, 2009, to this Yahoo! message board in regards to the closing price of the day of Morgan Stanley shares.

It was developed using specific selection criteria against the Daily Historical Metadata Detail report for MS shares from stock metadata reports available online for people to use. As you read the entry, you’ll see that if Bulls ruled at the end of the day, the prediction was the stock would close at 32.18. Well MS actually ended the day at 32.09 but a few seconds later after closing, the first transaction in after-hours trading was at, are you ready for this, 32.18. Talk about making a good prediction. I’ll let you be the judge.

Stan Pokutylowicz

Stan Pokutylowicz is a Senior Information Technology Specialist and stock market trader/investor

http://www.stock-market-keywords.com/

http://www.stock-market-keywords.com/bulls-with-bears.html

http://messages.finance.yahoo.com/Stocks_(A_to_Z)/Stocks_M/threadview?m=te&bn=11978&tid=80865&mid=80865&tof=8&frt=1#80865

Stock-Market-Keywords was set up with the purpose of presenting some frequently used keywords and keyword terms with corresponding links used by people online to learn about the stock market. The topic of Stock Market Metadata (also referred to as Stock Metadata) was added shortly after the first major construction phase of the site had been completed.

Winning Strategies in Stock Market Investing

Saturday, August 21st, 2010

Throughout the years, ever since the stock market concept has been introduced, the number of investors has increased in great numbers. There are instances of many reaping big profits and becoming millionaires in no time. And there are also examples of many turning bankrupt after repeat losses in bulk investments. Guesswork is a spoilsport in the true sense of the term. It should not be followed in the stock market aspect otherwise it will ruin you. Guesswork may turn out to be lucky for you once out of ten investments. And the loss factor in the profit loss ratio becomes so high that you will have no other option than exiting from the stock market.

Many an investor selects stocks at random based on the latest market statistics without actually going into the details of the market realities. And instead of careful speculation, they go by rumors. Nothing substantial can be gained following this method. The current economic situation, though fast recuperating from the big recession, yet is subject to risks. Your investing goals can be given shape only by following a methodical approach, keeping a close watch on the live stock market, and market statistics.

The stock market in India is slowly gaining its lost glory with the NSE and BSE exhibiting rising index figures. Stocks that were being sold few months ago in low prices in most sectors are currently fetching good prices and most sectors will continue witnessing an upward trend for some time. So, the future for you will seem profitable, especially related to long term investments. But one word of caution – do not just blindly buy the stocks; do consider all conditions and conduct a thorough research based on the latest market statistics.

As beginners, go for small investments rather than bulk investments. Even experienced traders face risks and novice stock market traders are no exception. Hence, if you face loss, the amount gone won’t affect your budget or mar your investment strategies. This way, you will gradually learn about the nuances of trading. To take a glimpse of the up-to-the-minute market statistics or the live stock market, you can rely on a business news portal.

Sourav Sharma is freelance market analyst and is writing reviews articles on Market Statistics, Stock Market , Live Stock Market.

Mohnish Pabrai on the Value Investing Congress

Thursday, August 19th, 2010


Twice a year some of the world’s brightest value investors converge at the Value Investing Congress. Hear what Mohnish Pabrai of Pabrai Investment Funds has to say about this invaluable event. www.valueinvestingcongress.com

GARP Investing

Sunday, August 15th, 2010

Growth at a reasonable price (GARP) investing seeks to find companies that have strong earnings growth at a good price. GARP investing blends growth and value to create a better way to invest. How does it work?

As defined by Investopedia, “value investing is the strategy of selecting stocks that trade for less than their intrinsic value. Value investors actively seek stocks of companies that they believe the market has undervalued. They believe the markets overreact to good and bad news, causing stock price movements that do not correspond with the company’s long-term fundamentals. The result is an opportunity for value investors to profit by buying when the price is deflated.”

So what determines value from an investor’s perspective? That usually depends on the perspective of the investor. Some look at current measures such as the Price/Earnings ratio (P/E) and other measures that focus on the current financial situation. Others look to future cash flows discounted at some rate to arrive at a value estimate based on future financial performance. The point of this analysis is to try to find stocks cheap in comparison to what they should be worth.

Although it is often said that growth investing and value investing are diametrically opposed, a better way to view these two strategies is to consider a quote by Warren Buffett: “growth and value investing are joined at the hip.” Another very famous investor, Peter Lynch, pioneered a hybrid of growth and value investing with what can be termed as Growth At a Reasonable Price (GARP) investing.

Mr. Lynch followed a set of rules when looking for growth and value or GARP investing opportunities. Here are a few of his rules:

They need to have a reasonably healthy balance sheet and are generating profits. The business should be relatively simple that can be easily understood. For the most part avoid the “hot” industries, and instead find those that are in the sectors that are out of favor. The PE ratio should be at or near the growth rate of the company. The growth rate should be accelerating.

So how does an investor, who recognizes that GARP is a rational way to invest, get started? The first thing to understand is just how efficient are the markets. When you sell a stock, somebody else believes in the stock and buys it. Conceptually, one of these investors is wrong about the stock. This is not always true, as one investor could be in for the short term and the other in for the long run and both can win. The investor selling might need the money for another investment. However, in many cases the market is efficient, with one investor right and the other wrong about the stock. Therefore, if you want to win most of the time, you want to structure things so you are on the right side of the trade.

Benjamin Graham was probably the first investor that fully understood this aspect of the market. That is stocks and markets can get oversold and present opportunities for value investors to get into quality companies for a low price. Not only do you want to look for cheap stocks, but also you want to find the ones that are out of favor, the ones that no one else is examining. They might be boring or last year’s hot stock. The ones that people are ignoring yet have solid fundamentals and a special factor that can trigger renewed growth in the price of the shares. Psychologically people have shied away from these stocks so they have become oversold.

The questions a GARP investor needs to ask are where I can find the best opportunities and how can I get on the right side of the trend. This isn’t just buying the cheap stocks that have a chance to move up based on statistical probability. A GARP investor is looking for companies that meet proven value assessment criteria and that offer the best potential for growth.

At Trading Online Markets, we search for quality companies that are out of favor, yet still possess good fundamentals and that offer a catalyst for growth. You want to find good bargains. As Bruce Greenwald, a Professor at Columbia says, “You also need to answer the question from the stand point of the market psychology. Why am I the only one looking at this stock? Is there something wrong with it, or does the market just not understand it?”

The search for growth at a reasonable price or GARP investing can use a number of criteria. The strategy is to look for good businesses that earn more relative to the price being paid than others. Then they look for a reason the company will grow their revenues and earnings more than is currently expected.

Principle: Hans E. Wagner, CEO of Trading Online Markets LLC and Peregrine Advisors LLC
I began investing in high school and have remained active in the markets. A graduate of the US Air Force Academy with an MBA majoring in Finance from the University of Colorado, I continued to invest throughout my career in the US Air Force, Bank of America, Coopers & Lybrand, and working for Ross Perot before retiring at 55. During that time I have gained a very good understanding of what works and what doesn’t. I hope to impart that knowledge to others, so they can achieve financial independence as well.