Archive for 'Investors'

Learn from Seasoned Traders

 

Those people who are new to stock trading will often make mistakes that those before them made.  Some mistakes can be avoided by learning from others but some people must learn by making that mistake, it's just human nature.  There are three common mistakes that newbie investors make.  Trading too often is a big one. They get a hot tip from someone and because they are insecure with their position, they will feel they need to sell right away. This is where your broker gets rich off all our trading fees. 
 
Becoming panicked is another common occurrence which can make investors buy high and sell low. Caution and prudence are very important to the mind-set of a trader.  Being greedy is another down fall.  There is a saying by Jim Cramer that says, bears make money, bulls make money but a hog will get slaughtered.
 
Anyone can go online and read more tips and techniques so they are better prepared for this arena.  Trading is not for everyone so test the waters before you jump in.  You can also visit discountvouchers.org in search of finance and money coupons to save on things like insurance, credit and financial products.   

Are you an Investor or a Speculator?

A successful stock market shareholder is financially literate and does not simply do guesswork when s/he trades stocks. In other words, a single stock purchase for the real investor means a comprehensive understanding of the company’s operations as a whole.

A speculator, on the other hand, sees the stock market as simply a floor full of fluctuating numbers. As a speculator, you make trade decisions based on instinct. When the numbers go up, you sell your share and you purchase when the prices of potentially valuable stocks go down.

Some people ask if it matters if you’re an investor or a mere speculator. There are a lot of speculators who get lucky on the floor, after all.

It’s probably less significant when you spend most of your time simply staring at numbers. However, the dedicated investor would still try to ground his trade decisions based on reality.

Sometimes stock price movement can be predicted based on current events. In fact, when the effects start reflecting on stock price movement, it’s probably a signal that you’re already too late to act on it. The “wave” has come and passed, so you can no longer ride it.

If you’re a sensitive investor, you’ll see the first signs of a company’s rise or fall before anyone else does. This requires extensive research and full manipulation of different market tools.

In other words, you’re a true blue investor when you’re able to spot a stock market indicator before it moves the price of your stock share.