stock market

Reasons Why You Shouldn’t Be Afraid of Trading on the Stock Market

Many people are afraid of trading on the stock market. It can certainly be a daunting task when you’re trying it out for the very first time. There is no denying that. But you shouldn’t let those feelings stop you from giving it a go. Investing is not quite as intimidating or scary as you might imagine it to be. Here are some reasons why that’s the case.

You Can Learn All You Need to Know

There are certainly many complicated aspects of investing. It’s not the kind of thing that you can just dive into without knowing the basics first. And there are many other things that you’ll need to learn besides the basics. But don’t worry. These things can all be learnt if you’re willing to put in the effort. You don’t need to be an expert to invest; you just need to be willing to learn. You can learn more about what it takes to succeed as an investor by reading online articles and delving into books.

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Investing Isn’t the Same as Gambling

Many people believe the myth that gambling and investing are pretty much the same. Planning and strategy play a much bigger part in investing than gambling though. Gamblers have no real control. But investors can shift their money, track investments and sell up at any time. On the other hand, gambling is pretty much all to do with luck. That’s not the case with investing. When you learn all the ins and out of investing, as I discussed above, you can make the right decisions. You have a lot more control than most people realise, so don’t rule it out on that basis.

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Investing is Better than Saving Right Now

At the moment, interest rates are at historic lows, and that makes it very difficult for you to see your money increase. That’s why so many people are not turning away from savings accounts and investing more of their money instead. It allows you to increase your money, and that’s something that nothing else will allow you to do. You should, of course, invest carefully because you could always sustain losses. But if you don’t take a few risks, then you’ll have to accept that your money simply won’t grow. If you ask me, investing is the infinitely better option for most people right now.

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You Can Take a Break At Any Time

It’s much easier to take a break from investing in stocks and shares than it is with other forms of loans. For example, if you invest in properties and have a large portfolio, you can’t just drop it and take a break. You have a commitment to look after those properties and the people renting them out. Whereas, when you invest in stocks, you can sell them up and leave the stock market behind for a little while. There is no need to make any big long-term commitment. So, if it gets too much for you or you decide it’s not for you, it’s easy to sell up and leave it all behind.

Top 6 ways to Survive a Volatile Stock Market

Top 6 ways to Survive a Volatile Stock Market

Do you have any plan on how to survive at the time when there is any difficulties in stock market. If it is your profession to deal with stock then you may face lots of uncertainties in your professional life. Sometimes the most reliable source on which we usually depend to get the proper information or forecast related to stock market, mislead or confuse us. One source forecasts that something disastrous is going to happen to the market while other sings the tune of opportunity. Therefore you always need to have a backup plan which will help you to survive in the uncertain stock market.

There are many who while facing difficulties in market try to survive by purchasing more shares which gets cheaper at that time. But this idea, though quite successful has become out of date these days. But now as we have grown up our income has also become limited thanks to all the personal and family and social responsibilities we have to manage. Though we invest our money in different fields but we continuously go through the tug o war within us.

Following are some tips which will be able to help you to survive in the volatile stock market:

Think positive

Your financial condition will not be affected much if you plan to focus on your future. You, as an expert  can only guess that if anything drastic happens to the economy  the stock market will show the symptoms in advance and you will get time to manage your finance. If you have a small or large business, it will not affect your potential of income. Credit card processing for small businesses are always on the safer side because you add importance to preserving Capital. If the stock market trend is having difficulties, opting for cash is the best option.

Understand the factors upset the market

You should observe the market thoroughly. A simple technical break in the movement of the market or a shift in the direction of the market can alert you to rewind the entire economic indicators. A number of experts will come up with different ideas which might confuse you but you can surf through the analysis and the news to get an idea of the overall economical condition. This information will at least help you to update yourself with latest market condition and you can be prepare for the worse in advance.

Wait for the opportunity to buy to improve equity position

If you are thinking of getting into equities then it is suggested that you should wait for the opportunity to purchase at the time when market weakens and utilize the opportunity of a developing market rectification.

Sell and ease your situation

You have the option to go ease with the investments which bear the more risk of losing money. Therefore you should step forward quite carefully only after understanding the latest condition of the national as well as world economical situation. You can avoid the risk by transferring your single stock investments into more expanded positions, for example, index funds.

Just sit doing nothing

It is a privilege which you can avail while the market starts getting unraveled. This is the time when you can analyze the entire financial situation and reevaluate the way you can capitalize the situation in the ground of finance and investments.

It completely depends on your targets whether you need any change or edit in your portfolio. But initially you need a review of your portfolio to check whether you have sufficient funds to make any additional investments. If we direct our fears into some fruitful actions then it will also be helpful for our economy to head towards the right path.

Top 5 Android Apps for Stock Investments

Top 5 Android Apps for Stock Investments

Android has immense popularity, and that’s caused it to be used for everything from television watching to casual reading. Its use as a financial tracking tool has only become more pronounced in the last couple of years, as developers have realized that a small device with a perpetual Internet connection is useful for investments. Hundreds of stock-related apps have flooded Google Play, but here are our top five.

Stock Widget

One of the defining features of Android as an operating system is its support for widgets, so it’s only appropriate to get started with an app that focuses on widgets. Stock Widget lets users select different stocks from their portfolio, as well as other financial instruments. Once the stocks are selected, the app is set up and ready to use. Android users just need to add the widget to their home screen in order to have at-a-glance updates on their stocks. With more than five sizes of widgets available, Stock Widget will have something to suit every investor.

Yahoo Finance

Some people swear by Yahoo Finance. It’s certainly been around for a long time, so having a dedicated app on Android is welcomed by many. Like its website counterpart, the Yahoo Finance app offers the ability to log in and immediately track a portfolio. Other data from the Yahoo Finance website, such as videos and news bits, is also available. Anyone who uses Yahoo Finance on their computer needs this app, but even users of other platforms should check it out.

Charles Schwab

Schwab customers will love using their Android app. Users of the app can access their accounts and immediately view pertinent information, such as balances and portfolios. Even better, the app provides the funcitonality to trade stocks and get real-time news and quotes about different stocks. The features of the app are almost identical to the website, making it an overall solid app. The only major limitation here is that you must be a client of Schwab’s in order to use it, but most of the features would be useless to non-members anyway.

Stocks by Dato

For simple access to stock quotes and data, Stocks by Dato is a very viable option to consider. Its interface is minimalist, making it easy to switch between different screens in the app without suffering from information overload. It has support for multiple profiles, and users of Google Finance will love that it’s able to sync up with their accounts for hassle-free setup.

Stock Alert by PocketTools

Stock Alert is an app that does what its name says: Load in a few stocks that you want to keep an eye on, and the app will let you know if their price hits whatever level you designate. It’s an excellent tool for investors who like to keep an active portfolio. Overall, the app makes it much easier to take a long or short position and then act accordingly. With its white-on-black color scheme and tabbed layout, the app is stuck in 2008 in terms of design. Still, it’s a solid app that’s been around for years, and it deserves to be in every investor’s app drawer.

These apps are ready to help make a pro investor out of any novice. Between being able to read news headlines, load up charts and make trades on the go, there’s no need for anything else. Smartphones are well on their way to replacing stock brokers.

Lindsay Weir is a corporate accountant and contributor at, a site with resources and guides to the best online accounting programs.

The History of the Stock Exchange

The History of the Stock Exchange

Today the stock market is an integral part of our economy, and it is hard to imagine a time when it didn’t exist. That time was over 300 years ago. But, towards the end of the 17th century, when trading started in Jonathan’s Coffee House, situated near the Exchange Alley in the city of London, things began to change. In 1698 businessman and coffee drinker John Castaing issued a document called The Course of the Exchange and other things‘ which was essentially a list of goods which could be bought or sold. Of course, people have always traded goods for thousands of years but this is first official record we have of any sort of organised and premeditated buying and selling.

The word spread fast and soon people were flocking to Jonathan’s Coffee House to do business. This carried on for a few years until men were regularly being thrown out for fighting and so the trading filtered down into many other coffee shops in the city. By the end of the 17th century there were over one hundred companies buying and selling stocks in the city of London with more popping up at an alarming rate. John Castaing, who was a Huguenot broker, was now publishing his document on a Tuesday and Friday and this was used for pricing and exchange rates. Coffee shops and traders relied on this for years and he became the industry leader, possibly due to his connections with the shipping trade.

In 1748 Jonathans was burnt down by a huge fire which swept through Change Alley, burning down many of the coffeee shops which hosted stock trading. The stockbrokers, now with no where to go to trade, funded the rebuild of numerous coffee houses including Jonathans which was aptly renamed The Stock Exchange.

Meanwhile in America, which was, surprisingly, slightly slower than us to catch on, was waking up and smelling the coffee literally. The first stock exchange was the Philadelphia Stock Exchange but when the New York Stock exchange opened it quickly superceeded Philadelphia and soon became the most powerful in the world. By this point trading was spreading like wildfire and in 1801 what was formally Jonathan’s Coffee Shop, where it all began, started a membership scheme and, unless you were a member you couldn’t offically trade.

By 1836 the stock market was already an integral part of the worlds economy with several exchanges in American and England. At this time a rule book was also written up and more and more stockbrokers were trading officially within an exchange. After WW1, the economy was becoming stronger and stronger and business with foreign countries was becoming more and more frequent. Measures were put in place so that dealing with overseas clients was easier and countries such as Brazil and Chile were trading with the UK daily.

However, with this new emerging foreign market comes the possiblity of fraud and over the last fifty years foreign exchange fraud has become rife. It works by scammers convincing traders that they can make a fortune by trading in the foreign exchange market. There are many many schemes but they all work in a similar way; traders are promised a huge return for an initial investment of normally between $5,000 – $10,000. They happily stump up the cash but never see the returns. By this point the scammers are away with their money.

With trading becoming more and more sophisticated as the years go by, and organisations attempting to whittle out fraud, the stock market is stronger than ever and will continue to be one of the most important aspects of the modern world.

4 Reasons Why You Should Invest in the Stock Market

4 Reasons Why You Should Invest in the Stock Market

A lot of people think that investing in the stock market is risky. And it is – if you don’t know what you are doing. Because the truth is anything is risky if you don’t know what you are doing. With the world wide recession going on today the stock market is seen as an even greater risk. Stock prices have been fluctuating like crazy. Companies are going bankrupt left and right. Why put your money at risk? The bank is safer, right? Wrong. Despite the craziness that has been going for quite sometime now, the stock market is still a very good investment vehicle. Here are 5 reasons why you should invest in the stock market.

The stock market has good interest rates. I have nothing against banks – except their low interest rates. You only get about 2% tops if you put your money in the bank. Time deposit gives you around 6 or 7%. The stock market, on the other hand, has an average interest rate of 18% per annum. Now that’s a lot better than 6 or 7%, don’t you think?

Leverage. When you invest in the stock market you get to make use of the most powerful form of leverage in the word – compounded interest. Compounded interest is when the interest is added on the principal amount and it starts earning as well. In a way, your money starts earning you more money.

Diversification. The stock market allows you to diversify. A good investor knows better than to put all his eggs in one basket. You never know what’s going to happen. So play safe and invest in several good companies. Of course, don’t diversify too much or you won’t be able to enjoy good returns. Invest in good stable companies and you can be sure that you will end up with a comfortable nest egg to retire on.

You can grow your wealth slowly but surely. Investing is not like winning the lottery. It’s a process that takes time and effort. The revenue your get from your stock investments can increase over time. The market may fluctuate and there may be times when you hit negative, but as long as the companies you have invested in are good companies they’ll rise back up.

When it comes to investing in the stock market, time is your greatest ally. The earlier you start the better. However you should also watch the companies you invest in. The current market conditions make investing in the stock market a bit risky – especially if you don’t know what you are doing. So the best thing to do is to study the market so you can take calculated risks.

Amy C. is an interior decoration aficionado and online marketer.  Aside from being an avid reader, she also likes testing and trying new home and office decorating themes.  In addition to being an interior decoration hobbyist, she enjoys designing accent tables and candle lanterns.

Plan for Losses: The Key to Sound Trading

Plan for Losses: The Key to Sound Trading

Risk lies at the very core of trading. Without risk profit would not be possible. On the flip side of the coin, because of that risk there is the danger of big losses befalling you. However, as necessary as taking risks is if you’re to turn a profit, by using stop losses intelligently, you can protect yourself from the nasty surprises that compromise an unavoidable part of trading.

Indeed, employing stop loss orders properly is a function of having the right mental attitude to be a successful trader; knowing that you cannot and will not win every time. Putting on a seatbelt when you step into a car isn’t something you do because you are expecting to crash, or because you doubt your own abilities as a driver. You do it (aside from the fact that it’s illegal not to) because you are acknowledging that out there on the roads there are forces which are simply beyond your control.

Give Yourself a Safety Net

By using stop loss orders cautiously and tightening them when things look uncertain you can make sure your losses are minimised. Furthermore by using a stop loss order, ahead of time you reduce the chances that you will succumb to the trader’s great enemy; hope. Whilst hope could cause you to keep a losing position open longer than necessary, a stop loss order can act as a signpost definitively telling you when to get out.

This has a double benefit, in that big losses hurt you not just financially but psychologically, which can lead to more problems further down the line. Making money trading is about consistency, not making one off miracle trades. However, if you have big losses to make up you are much more likely to be drawn into bigger gambles or “revenge trades” where you try and get your own back on your misfortune.

The core of a good trade plan is to pick your exit point at the same time as you decide on an entry point that you’re happy with. Stop loss orders help you stick to such a plan. This may sound limiting given how fast markets can move, but using a trailing stop loss order, you can automatically have your exit point move up behind the price as it rises (assuming that it does!).

Exceptions Prove the Rule

Of course, there are some trades where you may have a decent reason to leave a stop loss out your strategy. If for example you’d picked up an extremely volatile stock due to a conviction that it would, overall, go up in price over a period of years, you’re going to be ignoring month by month fluctuations in price, even if they do take a considerable tumble. In this scenario, given the risk you’ve taken on, a stop loss is unlikely to be much use to you.

However, unless this is your mindset from the very outset, before you even by the stock, you shouldn’t adopt such a tactic. Don’t babysit a bad trade out of pride or frustration at the way prices are going in the vain hope that the situation will soon be reversed.

One of the most important mental attributes a good trader needs is the ability to take a (preferably minimal) loss, learn from it and move on. Stop losses can help you do just this, by alerting you early on to a trade that just isn’t working out.

The Power Of Compounded Interest

The Power Of Compounded Interest

Someone once said that the greatest power in the world is the power of compounded interest. This is the interest that is put on top of the principal so that the interest then starts earning interest. Through compounding your money is able to grow much faster. If you want to become financially free then this is your greatest weapon.

Young people often put off starting a retirement account. They think that they won’t need to start until they are 30 or 40. But this may be the biggest mistake you can make. Why? Because the best time to start investing for your retirement is NOW.

Now the question is how can you make use of the power of compounded interest? You can do this by putting your money in vehicles that can give you good interest rates. One such vehicle is the stock market. You do not have to invest huge sums of money. To start investing in the stock market you only need a minimal amount. Then you can slowly add to your investment each month. If you think stock is too risky then you can play it safe and buy mutual funds instead. It has a lower interest rate but it is “safer” since there’s a fund manager who will be managing your investments. Then there are also bonds and T-bills.

There are actually many investment vehicles that you can use. It all depends on your preference and expertise. The most important thing is that you know what you are doing. Or if you don’t – find someone who does.

To maximize the power of compounded interest it is best to start early. When it comes to compounding time is your friend. The earlier you start the better. Investing at a young age gives your money more time to grow. Next, invest regularly. Make it a habit. Allot a portion of your income for your retirement fund and be disciplined enough to follow through. And of course, be patient. The power of compounding is only effective when you give it enough time to grow.

If you are not accustomed to saving and investing then this may seem difficult at first. But as long as you discipline yourself enough to follow through and make it a habit then it will get easier with time.

Amy C. is an interior decoration aficionado and online marketer.  She also likes testing and trying new home and office decorating themes.  In addition to being an interior decoration hobbyist, she enjoys designing calming solar fountains and glass art.  Amy invites you to browse her delightful collection of glass vases

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