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Monday, December 7, 2009

Stock Investing 101

By Ahmad Hassam

The whole point of investing in stocks is to choose one that has the greatest chance of a rising share value. Don't we all look for a stock that we could buy for $10 and later on sell for $300 per share? Well, how can we proceed to accomplish such a feat? What would make a stock rise so much?

So if the company does well, its stock will go up in price and if the company does poorly its stock will go down in price. Buying a stock is essentially buying a small piece of the company and its future potential for growth and profits.

The marketplace is in fact buyers and sellers, individuals and organizations that want to buy stocks or sell them. Now why does the stock goes up and down with the performance of the company. Actually the real force behind the stock rise and fall is the market place.

This buying and selling of stocks can only take place in exchanges like the New York Stock Exchange and over the counter markets like NASDAQ. If there are more buyers of the stock, its value will go up and if there are more sellers in the market, the stock price goes down.

Markets are a totally unpredictable beast. You never know how the market will react to a news item. Sometimes you will find that the company does well and is posting good quarterly earnings but still its stock price goes down. What's the reason behind this? Now it doesn't mean that if the company does well and is showing good profits and earnings, its stock price will go up.

In reality the price of stock depends on the investor's expectations. The price of a stock goes down because there are more sellers than buyers. So why is it so? The stock price does not go up or down just based on the company's present performance. Stock price goes up and down because of what the buyers and sellers expect will happen with the company in the near future.

However, the performance of the stock and the performance of the company over the long term have a logical relationship. In the short term, the behavior of the stock price is irrational and it can behave in crazy and illogical ways.

Focus on finding companies that are strong, well positioned in the right industries and have solid fundamentals like a good management, good product, good service, growing industry, rising sales, increasing profits and so on. The bottom line is don't worry about the short term gyrations of the stock price. Sometimes the industry and the economy matters more than the company. Picking a stock doesn't happen in a vacuum. Understanding the company's industry and the overall economic environment is critical to stock picking process. - 23159

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International Standard Of Morocco Hotels With Moroccan Tradition

By Clark Ericson

The morocco hotels are strategically located to be proximate to the airport, commercial centers, restaurants and recreational areas for the convenience of the guests. The rates are fairly affordable and facilities are at their best. All of these hotels are well-engineered with architectural designs which are of international standard with mixture of the Moroccan tradition. In the Kingdom of Morocco these towering structures are erected which are rated from three-star to five-star.

The rooms are furnished with sophisticated pieces of furniture and furnishings fit for royals. Staying in any of these morocco hotels gives you the feeling of relaxation and a warm atmosphere. The rooms are equipped with air-conditioning units, elegantly crafted bathrooms with hot and cold showers, cable television sets, telephone lines, internet access and other amenities that make your stay comfortable.

These morocco hotels are frequently visited by tourists coming usually from neighboring European countries like France, Spain and Italy not to mention the Canadians and Americans who love the warmth of sun. The influx of tourists into this Kingdom has paved way to the rise of its tourism industry into some tremendous heights. The booming tourism has lead to the rise of the real estate business, the construction of hotels, lodging houses, villas, apartments, and condos.

All these guesthouses accord their guests with five-star accommodation and extra services that they may request. The terraces are architecturally designed to face the beautiful and breathtaking views of the country. Everything you need is just at your fingertips. All you need to do is call for room service and well-trained room attendants will immediately attend to your needs. The construction of morocco hotels in different key cities of Morocco has greatly contributed to the popularity of the Kingdom.

You can have your reservation booked if you are planning for a grand vacation to the Kingdom of Morocco. There are websites on the internet with qualified representatives that can readily address your concerns. Travel guides shall be offered to you and your arrival at the Morocco airport is being facilitated by attendants or representatives from any of the morocco hotels. - 23159

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Getting Started With Investing For Your Retirement

By Darek Smith

Most individuals out there don't really take the time to plan for their retirement and the ones that do don't start early enough. You can start planning for your retirement early enough in your life and in the end every penny you save counts. Think about it like this, the sooner you plan for your retirement the sooner you will be able to afford not to work or even have the ability to make calculated risks to help your wealth grow.

Planning for ones retirement must start as early as possible. It doesn't matter if you are saving a few dollars a month it all counts. Your savings should also be growing year by year in a way that will satisfy your target down the line. Saving however is not the only step you will need to take so that you have enough money to retire on. You will have to invest your savings as well.

There are many options for someone who is considering investing for their retirement these days. Simply placing your funds in a bank account is not enough and figuring out whether an investment is good or not can take a lot of work.

The investments for your retirement must be secure. The last thing you want to see is your hard earned and saved money disappear in a day due to market problems or bad choices. This has been a big problem for people recently with the financial crisis. Playing it safe and investing wisely is the best way to go.

What you invest in should be something secure. Your savings will be essential for your survival in the future. You have worked hard to save the money and you must make the right decisions when investing it. The recent financial crisis has made the potential risks even more apparent.

For best results start saving and investing as early as possible. The more you save and invest the better chances you have of living a comfortable life in the future. The best way to do so is to consult a financial planner or an investment adviser to help you with making the right choices in planning for your retirement. - 23159

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Growth Stocks

By Ahmad Hassam

Capitalization or cap refers to the combined value of all the share of a company's stocks. The division between large cap, mid cap and small cap are often blurry and not sharp. When you start looking for good stocks, you often come across these terms like large cap, mid cap, small cap, growth and value. Let's discuss these terms for a moment.

However the following divisions are generally accepted: Large caps are companies with over $5 Billion in capitalization. Mid caps are companies with $1 to $5 Billion in capitalization and small caps are companies with $250 million to $1 Billion in capitalization. Anything below $250 million can be considered as micro cap. Now the most important term that you come across is growth stocks and value stocks. How do you determine this is a growth stock or a value stock? Perhaps the most important ratio is the Price to Earnings Ratio (P/E).

You must have often heard of the P/E ratio of a stock being talked about the analyst on CNBC or Bloomberg. Perhaps the most important ratio is the Price to Earnings Ratio (P/E). Now the most important term that you come across is growth stocks and value stocks. How do you determine this is a growth stock or a value stock?

Now the higher the P/E ratio, the more growth the company is supposed to have. So it can be either the company is growing real fast of the investor have high hopes of its growth. Now these hopes can be realistic or foolish, you never know!

The lower the P/E ratio, the more value the company has. Low P/E ratio companies are not considered to be the movers and shakers in the market. Now, if you follow financial news than you must know that the large growth companies always grab the headlines. But do the growth stocks really make best investment? According to Fama and French, two famous researchers who did ground breaking research on stocks, over the last 77 years, large growth stocks have only seen 9.9% annualized rate of return as compared to 11.5% for the large value stocks.

So most of these growth stocks become highly popular in a small period of time! Everyone rushes to buy these growth stocks thinking that they are great investments. The most probable cause seems to be their immense popularity. Since most of the headlines are captures by high growth companies, investors seem to think that they are the best investments. Now intuitively you might have thought that growth stocks are better. What can be the reason for their lower performance over the years?

Think about Google, how its stock price shot up within a matter of weeks after it hit the market. Weeks after that it began to cool off. So large growth stocks tend to get overpriced before you are able to buy them! - 23159

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ETF Trading Strategies For Everyone

By Patrick Deaton

There are many ETF trading strategies that offer a person just entering ETF the opportunity to reap great rewards when they are successfully used. However, in order to make the strategy perform at the level one desire, it is important that the correct strategy be paired with the style of trading that will be done.

There are some safety nets that a person can establish that will keep them protected when first trying out an ETF strategy. By having a plan and a safety net in place a person will be able to experiment with ETF trading strategies and find the one that is best for them without committing to the strategy before they are ready.

In most cases, when a person finds the strategy and method that works effectively for them, they stick with it. This is the result of trying different strategies and discarding those that don't work. The strategy that will be most effective will depend in large part on the kind of trading that a person is going to do. The needs of a very active trades will be different than those needed by a person who is not regularly making trades.

People who trade ETFs for long term investment, may look at, and trade ETFs on a yearly basis when they review their mutual funds and the rest of their portfolio. These individuals do not need the type of ETF strategy that a person who is getting in and getting out on a regular basis needs.

The knowledge and skills that an individual needs to be effective with a trading strategy will impact their return on trading. When a strategy or method is being considered, it is important to take time to research the strategy and find out how it has performed historically.

If a strategy is being considered that has no history of consistent effectiveness, there is an added element of risk in trading. When a person is involved in a riskier ETF trade, such as Leveraged or Inverse ETFs, this added risk is unacceptable.

One of most used ETF trading strategies for low risk trading is the Buy and Hold Strategy. This provides profit from many sectors and limits the overall portfolio risk. Many financial advisers recommend this strategy because it is designed for long term investing and fewer trades. The person using this strategy chooses a fixed income or steady portfolio growth that includes almost any financial product.

For a beginner who wants to take a more active role in trading there is a variation of this strategy that can be effective. The Active Long-Term Trading Strategy is a lot like the Buy and Hold Strategy but the trades worked with more frequent trades or periodic portfolio rearrangements.

The ETF strategies that are available provide a person with many opportunities to make gains in their trading. However, research and knowledge of the ETF and how it works is an important part of pairing the most effective trading strategy with the type of trading that a person does. When deciding on the strategy that will be most effective for one's needs it will be very helpful to talk to an individual who has expertise in both trading strategies and ETF as a whole. - 23159

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