Stock Market For Beginners – Bull And Bear Markets

A bull market is when everyone is positive about the stock market and wants to buy stocks. A bear market is the opposite as the stock market keeps going down no matter what and people want to sell.

The stock market for beginners is a place where you need to pay attention to what is going on. During a bull market, you can probably make money from almost any stock. Everyone will want to give you their stock pick and chances are the stock will go up. All the pundits on TV will be pumping out their stock picks and you can most likely make money on any of them. Even your hair stylist may want to give you a stock tip.

If you start investing in stocks during a bull market you may get over confident. You may make money right away and think it is easy. This is something to be weary about if you are just starting to invest in stocks. It is not easy and things can turn around in a day.

During a bull market, everyone wants to sell. The stocks you own may go down 4 out of every 5 days. You will be confused and want to sell and wonder whether you should. Remember 9/11 when the stock market went down huge and kept going down for months after? Do you sell or do you hold? Will the stock market ever turn around? Do you buy more at a lower price? These are just a few of the questions that you will be faced with in a bear market.

Most of the time the market is somewhere in between a bull and bear market. Usually the better stocks go up over time and the stocks of companies doing poorly go down. It is best to always try to pick stocks of companies that are doing well or will do well. The stock market for beginners can be a confusing and scary place that takes a lot of time and experience to get used to.

How Do You Short A Stock? And What Does “short Squeeze” Means?

How do you short stocks, and what does a “short squeeze” mean? And when does a squeeze generally occur?

Shorting or Selling short is a way some investors make money on stocks they believe are going to decline in price in the near future.

So how to short a stock? First you need to borrow the shares from your broker, and then sell the shares in the open market at the bid price and collect the profits or premium from the sale. But wait don?t spend it! You need to hold the money and wait hopefully the stock to will fall. If your prediction is right and it does fall, you then buy back the shares at the lower ask price and give them back to your broker, who gets a commission and interest.
So for example, you borrow 100 shares of ABC at $100/share from your broker, then sell them for $10000. If ABC continues to fall, example drops by 10% to $90/share; then you just need to buy back the shares back for $9,000. You then pocket the different of $1000 and return the shares back to your broker. Of course, minus your broker’s commission, depending on your brokers, different rates apply.

But wait! What happen if your prediction is wrong?! If you happen to make a wrong bet and short a stock whose price rises later, then you are in trouble. Either you can choose to wait to see if the stock will decline, or cut loss and buy the stock back at a higher price than you sold them and give them back to your broker, along with the commissions. Also when you return the shares to the broker, you have to pay any dividends the company hands out.

There are some requirements to remember for shorting stocks:
1. You need to open a margin account.
2. You can’t short-sell stocks that are trading below $5.
3. The price at which you short a stock must be at the market price or higher.
4. Most short sales must be executed in round lots of 100 shares.

In order to short stock, your broker will require you to take up a margin account. A margin account serves as a credit that has to be repaid at some time, depending on the decision of your stock broker firm. An initial investment of $2,000 is mandatory to set up a margin account. While margin requirements may vary at different brokerage firms, according to the rule, you must deposit at least 50% of the stock price in the margin account.

If the stock you have shorted rises later, the account will be subjected to a maintenance margin. You will need to put more money into the margin account. Currently the regulations governing margin accounts are very stringent. For every 20% gain in the stock price, you have to add another 30% into the margin account.

Now when you decided to take profit and close out your position, or when you sense the stock is having a bull run; this is the time to close out or cover your shorts. You repurchase the shares at the ask price and give return to your broker. Covering your short position at a loss can be a hair raising experience. During a bull run, not only short-sellers like you out there trying to buying back the shares, many more investors also jump onto the ship and start buying! This is where you experience ?A squeeze?. This will greatly putting greater upward pressure on the stock price! During a bull run, the upside potential may be ?unlimited?; just look a GOOG and BIDU. It is very important to remember is that shorting, while offering a smart way to make bearish bets, carries very great risks when prediction goes wrong!

Despite in depth analysis of a company fundamentals, prediction can sometime be wrong. You should protect their short bets should consider two simple measures. First, set a stop-loss limit on how much you are willing to lose on a short bet, and stick to it. Second, you should seriously consider hedging their bets by buying call options, which increase in value when a stock goes up.

Best Penny Alerts Review Start Making Profits With Penny Stocks

Investing for most people is all about trying to exploit money with the littlest investment. This is why penny stocks intrigue the average trader, because they do not require a large investment on a per share basis, but can provide large returns if the stock increases in benefits. While not foolproof at all, there are ways to choose the best penny stock when to invest.

Understand that penny carries by financial definition are any stock priced at fewer than $10. Many people hear this phrase “Penny stocks” and additionally think these stocks put up for sale for pennies per share but marriage ceremony the correct definition.

Evaluate the balance covers and income statements on each penny stock. Make sure the revenues for every one of the last three years are generally increasing. Some of these stocks still may have more debt than revenue nonetheless they at least must be close to emerging from this debt to create a profit in the near future.

Research the underlying business plan and services or products for each penny share. Some of these bargain priced stocks may boast a great new product or service but have an incoherent company plan, which prohibits the stock’s forthcoming growth. Conversely, a penny stock company can have a fantastic business plan but a product that will generate consumer interest and company increase.

Review the industry in which each penny stocks underlying company operates to determine if you will encounter growth in that industry. There are industries similar to the music industry, which is quickly changing as a result of technology and may not necessarily experience significant growth from now on. However, there may be a cent stock within that industry which could revolutionize and revive which industry. Don’t discount all penny stocks which reside in some sort of stagnated industry; still, do the necessary homework before you decide to invest any money.

Go to penny stock forums using the web and make note involving any penny stock generating positive reviews. Beware though that most the different members of these forums are untrained or starter investors without much experience or real familiarity with these stocks. However, these forums can create useful penny stock ideas so you might research.

Now, let’s talk about Best Penny Alerts created by David Roy and just how it might help you. I hope this short Best Penny Alerts Review will assist you to differentiate whether Best Penny Alerts is Scam or a Real Deal.

We will give you exactly your entry (Buy) amount, stop loss and ones exit (Target) price so there’s never any speculating on the direction to go. The info you can receive from us is simple to implement and simple to stick to. You will be given emails including buy price, sell price. We’ll get you on your feet in a matter of moments. Seriously, it’s as simple as opening a brokerage balance, sending them a check to advance your account, and clicking the “buy” and “sell” buttons inside the brokerage account for individual penny stocks that you will be trading. It doesn’t matter if you start investing with $100 or $10, 000. The gains still mount up very, very quickly. Of course not 100% in the hot penny stocks picks written from our newsletter induce net gains but a high goal is still very reachable in a short period of time even each time a few net losses need to absorbed.

Discount Broker

All About Discount Brokers

online brokerage price war gives investors a great chance to make maximum profit of their online stock investing. With so many discount brokers offering attractive rates for trading stocks online, small investors are attracted towards stock trading in big way. In fact, lower broking rates offered by the discount brokers have been the most instrumental factor in the immense popularity of online stock investing. Lower broking percentage is possible for online stock investing for so many reasons. Minimum or no paper work and no middleman are the major factors that have made the low broking rates possible.

Apart from just lower broking rates online stocks trading has got few more advantages. The best part of the online stock trading is that you do the trading yourself. Just like online banking, you maintain your online trading account according to your convenience from your home or office. No middleman, no paper work and just a few clicks and you are done. This hassle free and transparent process is also a major factor of the popularity of the online stock investing.

Discount brokers not only offer you low commission rates, but also provide some convenient options for trading in online stocks. You can invest in stocks for short term or long term and intermediate time span as well. The short term trading, day trading or the marginal trading offers even lower interest than long-term investments. Even some discount brokers are also offering a fixed rate for online stocks irrespective of your volume of investment.

Fractional stock is another profitable way of investing in the stock market, especially for small investors. In this process, you can buy portions of a high price stock and make profit with an affordable amount. Discount brokers also offer automated investment plans in which you can instruct the service provider to buy stocks of your preferences by automatically transferring funds from your bank account. So, you don?t need to leave your other engagements for your stock trading. The broking house will take care of that on your behalf and according your precise instructions.

Most of the online broking houses have professional research and analysis services. Their experts keep a close watch on the stock markets and industries. They provide the investors with detailed insight of the market and valuable advice on stock trading options. So, even if you are not able to do the research yourself you will get profitable tips and advices from your online broking service providers.

To make the maximum profit from your stock market investments, you need to choose a trustworthy and professional online brokerage service from so many discount brokers. Please remember to select the right service provider and it would not be wise to be lured only by the attractive brokerage commission rates offered by the discount brokers. Consider other factors like the reliability of the broking house, security of their online systems, account options and trading options before you make the final call.