Trading Library

So you want to start trading but don't know where to start? You're already on the right track, because you're asking questions and doing research before playing with the big boys. Nobody's going to hold your hand so you might as well put in the effort.

Arm Yourself with Education

You can never bee too educated about the stock market. If you think you have enough knowledge, curve balls can hit you without warning.

There are various methods in navigating the stock market. Even though it can be very unpredictable there are tools that you can use to help you gain insight on a particular stock that grabs your interest. One of the main methods in evaluating stock is technical analysis. This is used by traders to analyse the supply and demand of stocks in the market to determine their trend. The trend provides the traders signals on how the stock price will behave in the future. This can be very convenient in a highly uncertain market that enables traders to be one step ahead of the game.

Consider the many factors that affect returns like timeframes, trading strategy, your particular portfolio, and social and economic upheavals. A stock may outperform 20 percent in a given year and maybe even 10 years, but this is the exception. Anybody can also get a one-year, one-time 20 percent return, but to expect the same rate year in and year out leans more toward the unrealistic. Learn more here.

Market returns fluctuate like the tides. Consider the many factors that affect returns like timeframes, trading strategy, your particular portfolio, and social and economic upheavals. A stock may outperform 20 percent in a given year and maybe even 10 years, but this is the exception. Anybody can also get a one-year, one-time 20 percent return, but to expect the same rate year in and year out leans more toward the unrealistic.

The market is a murky place, and sharks—also known as people who trade for a living—swim in the infested waters. Do not be the crustacean. Unless you pay someone to do it (and maybe not even then), no one can really tell you the exact time to enter the market, and you will likely get different opinions. This is particularly true if you have a hazy goal in your head.

If you're asking questions about timing, chances are you have not done your homework. There are many 'number one' rules before trading, one of them is research. Spend time—and if you can afford it, money—to educate yourself about investing, strategy, trends and stocks.

You can also learn from the numerous free trading resources on the web. A review of recent and accurate market patterns should get you started and help you make an informed decision.

Traders come from all walks of life. Some may start early with a finance degree under their belt. Others may start a bit late to earn extra income and study on their own. Whether you’re a newbie or a mum and dad investor, deciding on your trading capital is an integral part in the beginning.

Stock market trading is a big risk. No matter what your trading capital is money lost is still money lost. So before you buy any stock it’s always important to know if it’s worth your hard earned cash. The problem is with a variety of stocks and the uncertainty of the stock market, its not easy to pull out the good ones from the bad. Fortunately there are ways to find out if a stock has potential.

Intrinsic Value

How long you want to own your shares will depend on what's your goal. If you bought a fully franked stock and want to receive the full dividend amount, you have to hold the stock for 45 days. This excludes the day you made the purchase and the day you sold the stock. More importantly the 45 day rule (plus 2 days) makes you eligible to receive franking credits, if your imputation credits entitlement totals more than $5000. The key is to own the shares in 45 days after the ex-dividend date. You will need 90 days for preference shares.

Under the 45 day rule applies for larger shareholders if the investor wants to be eligible for franking credits on any franking credits from their dividend. If their total of imputation credits entitlement exceeds $5,000, then they must hold the shares for 45 days + 2 days. This basically means that you can't just buy shares just to get a franking credit and sell them afterwards.

Check these Circumstances

The stock market is an unpredictable world, profits can soar and drop like dead weight in a matter of minutes. Traders employ their own personal tactics and make profit as much as they can. With a consistent strategy, any John Doe can make money in the stock market. One of the most popular gearing form is instalment warrant, coupled with dividend yield play you can make some smart moves at a fraction of the cost.

Shares are a unit of account in corporations, and include stocks and investments. Common and preferred are the two main types of shares. Shares are issued to raise money for the company. Along with shares, shareholders get other benefits from company like the rights to get dividends or the right to share in the capital. Shares vary, and so do entitlements that shareholders get.

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