Archive for November, 2011

November 30th, 2011 Investing No Comments »

Investing in the Stock Market Without Spilling Your Drink

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Want to know a secret? No telling OK? OK, I can trust you – Im about to let you in on a few tips so that you can begin investing in the stock market and finally start to see some cash back in your pocket. That means you can afford one of those gorgeous lounge pool thingies with a drink holder so you can lie back in the sun while you watch your investments increase in value and make you some lovely profits. Because I wouldnt want you to spill your drink in the pool would I – that wouldnt make any sense at ALL in an article about investing in stocks.

Cool. Now obviously Im going to make this easy for you – Im all about making things easy – (but that doesnt mean that I AM easy, OK?)

Firstly you need to pick some stocks. Duh! But not anyone old stocks of course. I recommend just choosing those that are listed within the S&P500 list since they contain the top 500 companies based on market capitalisation in the U.S. That just means that they are the biggest and most well known and therefore the ones that you should concentrate on.

Or if you are incredibly lazy like I am, you can just choose the stocks within the Dow Jones instead – because there are only 30 companies in the Dow – and therefore FAR less to choose from and so your research time will be cut way down (and so more time for pool sunbathing).

You might wonder why Im not suggesting that you pick some small obscure company at random to invest in, and basically its because the bigger companies are considered much safer than the smaller unknowns. Sure you could choose the winning stock and triple your money overnight, but its just as likely as you could lose your money as well – and you dont want that.

So trust me and stick to the bigger, more well known ones.

The next step is to have a look at those companies financials to find out how well they are doing for their stock holders. I know – it sounds incredibly boring to want to look at a profit and loss sheet without being tied to a chair against your will – but if you are going to be a serious investor it has to be done.

What you should be looking for is a company that fits certain criteria such as a good return on equity, positive earnings and one that doesnt carry too much debt.

You can avoid choosing really bad stocks by checking out whether the company is doing really well financially or not. For example did you know that you could have avoided disasters like Enron just by looking at its debt to equity ratio? True!

By understanding what you are looking for youll be investing in the stock market like a pro in no time. Now if youll excuse me Ive got another drink to pour.

Tracey Edwards is the sassy author of “5 Simple Rules for Investing in the Stock Market.” Find out more about investing in the stock market at her blog and dont forget to say hi when you drop by. http://simplerulesbooks.com/investing-stock-market-hard-not/

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November 29th, 2011 Investing No Comments »

James Connelly – Penny Stock Prophet Newsletter

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Its quite an amazing story but James Connelly started out as a humble student trying to make a living. He started out with a modest amount of money trading stocks and over time formulated a system that he never sold. This system has enabled him to make over a million dollars in just 13 months by trading stocks.

He achieved really good results by trading normal stocks, but when he switched to trading penny stocks he observed that his average returns were even higher.

Secret Trading Formula

If youve traded stocks for any length of time youll find that certain traders develop systems over time that work for them. Obviously when someone is making money they arent actually going to tell you the minutiae of how their system works because that is their advantage for making money as a trader. James Connelly has a system that works by identifying 4 key variables which identify whether or not a stock is about to break through.

In his system he combines psychological support level (PSL) with those 4 variables to predict bullish trading patterns in those stocks prior to them even happening. On average his system predicts these gains 24 to 48 hours in advance, so he can effectively cash out within 2 days and keep the funds moving to place new trades. This is essentially what makes his system so powerful because he does not have patient money waiting in stocks. Instead, his system identifies imminent movements so he can place his trade just before the stock moves decisively.

Penny Stock Prophet Newsletter

Although James Connelly has never actually sold or revealed his system to others, he continues to use it to this day to pick and profit by actively trading penny stocks. He conducted a test over a 30 day timeframe for members of his newsletter and achieved 45% average returns and all trades led from inception to exit in 24-48 hours.

His newsletter is a limited opportunity that members can join in order to trade alongside James Connelly by utilizing his personal penny stock picks that he shares with this private group. Members of his newsletter gain access to penny stock alerts as they happen and his research on these stocks. The good thing about this newsletter is that you get stock trading picks selected by someone who has already made a 7 figure sum by trading actively, so you can follow in his footsteps.

Find out how you can start trading penny stocks successfully with James Connelly and read our full consumer review of the Penny Stock Prophet at http://www.pennystockinvestingtips.com

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November 28th, 2011 Investing No Comments »

7 Rules for the Novice Trader

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The Stock Market is an exciting place and with the internet being what it is today this excitement can literally be brought to each and everyones living rooms. That, now, is the beauty of the Markets. Anyone can do it and I strongly advise that everyone try it. Trading Shares give you better returns than any bank could ever offer, if executed correctly.

Here are a few Rules I have put together for the Novice.

Rule # 1: Only invest money that you can comfortably afford after you have met your personal and household expenses. Do not put your family at risk which brings me to Rule # 2……..

Rule # 2: Never trade on borrowed money or money you cannot afford to lose. This is a recipe for disaster and you are failing before you even begin. Decisions must be based on insight and research. If you use money that is not sacred to you, the fear of losing money will not be a problem. Making a profit will outweigh all previous loses.

Rule # 3: Remove emotion from decision making. Difficult one this but essential, once again, decisions should be educated ones and not ones of hope. If you do not remove emotions you will be changing your mind every few minutes as there are so many things happening in the market at the same time. You will have untold sleepless nights!

Rule # 4: If you are unsure stand aside or reduce the size of your trade.

Rule# 5: Start small. Dont even trade at all. Get into the market as an observer only. Learn the terminology and familiarise yourself with systems.

Rule # 6: Form your own opinions. Everybody has opinions and you cannot let someone elses opinion cloud your own judgment. Do not allow yourself to be easily influenced by others, no matter how logical they may sound.

Rule # 7: Patience. Do not expect overnight windfalls of money. Take a break.

My advice to novice traders is to buy Penny Stocks. These are low priced shares selling under $5.00 a share. You do not have to fork out too much money to buy and they have huge potential to reward you with gains of 10%, 20%, 100%, up to 500% within weeks. That being said, with high reward comes high risk.

Alternatively buy shares in what we call Blue Chip Companies. These are big name brands. Stock is a lot more expensive and your gains a lot smaller, maybe 1% to about 3% within a few weeks but they are normally a sure thing.

Mike Champion has put together a short E-Book to help Novice Traders enter the exciting world of Share Trading. Please visit http://www.easitrading.com to receive your complimentary E-Book.

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