Online stock trading tips

Here are some of the online stock trading tips that online stock trader can use in their stock trading strategy. There are certain parameters that need to be taken into account by the stock trader while doing stock trading. These parameters help significantly for stock trader to make a successful stock trade.

Momentum – Stock momentum illustrates you the velocity at which stock prices move happens over a certain period of time. High momentum stocks are highly preferable for trading stock on short term basis.

Volume – Volume is another parameter where one can easily make out to select stock for trading. Significant increase in volume against average volume in stock over the last 7 days can give you clear picture that there is more number of stock traders as well as stock investor’s interest in this stock and with the knowing of direction one can easily buy or can short that stock.

Direction – Direction is one of the most important things for trading stock. Stock volume, trend and direction moves hand in hand. Increase in volume and change in direction tells you to buy or to sell the stock.

Trends – Trend illustrates the pushiness of prices to move in a particular direction over a certain period of time.

Stock strength – Stock strength tells you the intensity of interest in a stock. High volumes specify more participants and therefore more strength.

Volatility – Volatility describes the degree of day-to-day stock price fluctuations. More volatility arise nervousness to stock investors but there is some community in stock trader who likes to do stock trading in highly volatile stock. Volatility increases the risk but also gives high returns.

Support and Resistance – Support and Resistance represent the occurrence of stock prices repeatedly rising and falling between certain prices levels. When stock prices breakout support or resistance levels, they tend to create new support and resistance levels.

Stock chart patterns – Chart patterns provides you hits of identifiable shapes on a stock chart. Certain stock chart patterns preempt changes in stock direction and price.

Cycles – Many a time some stock sectors show a propensity to move in cycle patterns. For example after a good participation in technology sector, the stock investor turns their attention towards any other stock sector say energy sector and after the momentum in finished in energy section their tends to move their attention in steel sectors and so on and this gives an opportunity for stock investors as well as stock investor to monitor closely the sectors which are presently performing well and tries to do stock trading or stock investing in such sectors as these sectors are in momentum chances of making money is good enough that sectors which are not showing any strength or momentum.

The above following online stock trading tips can be highly useful for online stock traders as well as stock investor to make vice decision to conduct any stock trading or stock investing.

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Growing fad of online stock trading in Europe

Online stock trading has now been in crazy stage now in Europe. After the worst carnage of dotcom bubble in 2001, many European individual stock investor’s money were completely washed out, while many of the brokerages lost out their multimillion dollar gamble that Europeans would embrace online trading, but recent survey done by to market researcher IDC (Internal Data Corporation) only about 14% of the 318 million people in Germany, Britain, France, Italy, Spain, and Sweden owing stock/share. In the U.S., by comparison, nearly 55% of the population of 300 million owns stock, but this trend is changing now. Europe's online brokerage sector, which is now adding customer accounts at a 7% annual growth rate vs. 4% in the U.S.

With the recent development of increase in number of personal computer use along with internet and use of employee-directed pension plans and a shift in responsibility for retirement from governments to individuals, Europeans are paying more attention to stock investing and to online stock trading. It clearly seems like European are gradually becoming aware of the benefits of electronic trading and changing their attitude toward their financial responsibilities.

According to the survey made by IDC there were about 17.5 million online stock trading accounts in Western Europe as of the end of last year and that could jump to 23.5 million accounts, and online trading will represent nearly a quarter of all retail transactions.

Special Attention:-
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Late stock trade burst the Wall Street

November 27, 2007

Fresh credit concerns, banking made the Wall Street to sell off sharply on Monday’s stock trading session. The Dow Jones industrial average fell nearly 240 points giving a rise to new lows. The Dow's fell its mid-October closing high is now 10.03%. The collapse to Wall Street comes as stock investors were nervy by more incoming statements that pointed to enduring problems in the credit, home loan debt going bad under the weight of a vacillating housing market; however Fed said it would inject $8 billion into the banking system on Wednesday to handle the credit market situation.

The present fact looking at the Wall Street clearly demonstrates stock investors are becoming too sentimental and caution and trying to pull out their cash at every rise. I will be waiting for Dow Jones to hold 12,500 marks but this possibility is also very less for me. At this point I would like to stay on a sideline and will wait for few days how the market pans out from stock investor as well as from stock trader points of view, however I would be monitoring my favorite internet as well as energy related stocks and if I find any good opportunity I would like to do stock trading but will avoid to do any kind of stock investing.

Free stock trading game

As it is known that stock trading is highly risky and difficult task and to cope with this situation every novice needs to have deep knowledge and strong experience. Experience is a thing which comes with practice and this practice can make a novice highly skilled and knowledgeable stock trader but to gain this practice and experience many a time many novice stock trader looses considerable amount of their hard earned money in stock trading and also maximum of them is forced to say good bye to this field.

But to cope with this situation every novice need to gain practice, experience and knowledge via some developed technology by which they can trade the stock and at the same not losing a penny to become a skilled stock trader and for this Wall Street Survivor™ has launched an online Fantasy Stock Market Trading Game product.

After registering with Wall Street Survivor you will be given a virtual cash money (not real money) of $100,000 to trade the stock. You can manage your own fantasy stock portfolio and execute trades in real time, while competing with other registered stock trader community.

This product is highly valuable for novice as well as who has basic knowledge of stock trading. By participating in this Fantasy stock market trading game one can easily gain knowledge, experience and also top scorer is awarded with cash prices of $25000.

Benefit of participating this online Fantasy stock market trading game
• It is free.
• You will be allotted virtual cash money of $100,000 to trade the real stock.
• You will be able to trade stocks in Real Time.
• You can practice and can learn how to trade stock.
• You will understand every aspect of stock trading and over a period of time you will get considerable amount of experience and knowledge.
• You can socialize with other stock traders and can pick up quick stock tips and strategies.
• You can experiment with different stock trading strategies
• Citizen from any country will be able to participate in this fantasy stock market trading game.

For registration click here Traders Wanted - Play $25,000 Stock Trading Game

Free Canadian stock market training and tournament

Shareowner - A Canadian independent investment-education and portfolio-training company had announced stock trading and stock investing training and Tournament for Canadian residential. The good grades are rewarded twice with Grand Prize $10,000.00 and Total Prizes $20,000.00

To mark its 20th anniversary, ShareOwner is providing university and college students with a free, one-time use of its reality-based Growth-Stock Education and Training Course.

Highlights
Education. Course materials, video instruction, monthly webinars and stock-study software are employed to teach students, without charge, how to select and build a portfolio of large-company growth stocks.
Reality-Based Training. For low-risk portfolio training, students operating individually or in small groups can experience buying and selling growth stocks by investing a total of $1,000 in 10 -20 growth stocks of their choice.
For example, students can divide their money as they choose investing $50 in a bank, $60 in an insurance company, $75 in a technology company, and so on.
Investor Protection. Whole and fractional shares are credited to the student's training account administered by our affiliate, Canadian ShareOwner Investments Inc. a member of the Canadian Investor Protection Fund.
Free Services. All buying and selling is without charge through our affiliate's co-operative investing service. There is also no charge to open or close the training account.

Eligibility & Enrollment
There is no fee or charge of any kind to enroll in the Course. To enter and be eligible to win, a person must be a resident of Canada (excluding the province of Quebec) who has reached the age of majority in his/her province/territory of residence and who is enrolled at a Canadian university or college.
Enrolment Period: Monday, October 15, 2007 to Friday, December 14, 2007
Course Start Date: Wednesday, January 2, 2008
Course End Date: Friday, November 28, 2008

For more information for this stock training and stock investing course visit

Stock trading software

What is stock trading software?
Stock trading software is definitely a new generation tool which has helped many stock traders to execute their option trading, day trading as well as short term stock trading positions.

Who can use this software?
This software can be use by a person who has basic knowledge of stock trading and one who knows every aspect involved in it. By using this software it does not mean that you will be able to make money very easily without any efforts, but instead this software will ease your work quite considerably and will assist you to take the stock trading decision more precisely making your trade successful.

Many of these stock trading software are fully automatic and also semiautomatic and just by defining your requirements the software will scan and will find out perfect stock pick that are based on your requirements. The automatic software also has a capability to automatically execute your buy and sell signal stocks which need to be programmed by you depending upon your requirements.

It having said that maximum of the active stock trader uses this software more often to buy/sell their stock position.

Benefit of using stock trading software
• The software will help to quickly find out the perfect stock pick which best fitted your requirements in terms of price level, volume, liquidity, etc
• The software will help you to manage your stock portfolio.
• It will help you in assisting which stock to buy and which stock to sell at their specific price.
• • It also helps how many quantities of stocks to buy and how many quantities stocks to sell with stop loss order price for avoiding any further loss.
• It will help you to avoid entering in bad trade
• It will constantly help you to find the trend of the stock either in downward direction or upward direction to take precise decision.

Wall Street- Tough stock trading session ahead

November 22, 2007

The present situation clearly seems like Wall Street is in heavy pain and going forward it seems like to continue due to growing uncertainty in US economy, sub prime issue and wilting mortgage market bringing the stock market investor sentiment down.

Looking from the technical analysis perspective after the breakdown strong support of 13k in Dow Jones, the market is now clearly headed towards the very important and main support level at 12,500, if unfortunately the Dow Jones breakdown the 12.500 level then this market clearly seems to be intermittent bear market and the next level will be hard to judge.

At this point, I will wind my long position and will sell all the highly vulnerable stocks which are picked for stock investing and will look for fresh stock trading position at level of 12,500 in only selected stock.

The Dow Jones fell 211.10, or 1.62% to 12,799.04, S&P 500 index dropped 22.93, or 1.59% to 1,416.77 and Nasdaq composite index tumbled 34.66, or 1.33% to 2,562.15.

Taking clue from Wall Street all the major stock market indices of the world mainly from Asian and European stock market suffered a great loss on Tuesday and also were in red territory on today’s trading session.

Support – An excellent buying opportunity tool

Many of the technical analysis gurus recommend buying stock at support level and they believe that this as a very effective stock trading strategy or this can also be treated as excellent tip.

Support level is believed to be a stock trader tool. Stock trader who mostly believes in technical analysis looks at the stock chart pattern and discovers the support level of the stock and decides this support level as buying opportunity. It is having said that support level is a best point where one needs to take a buying decision as downward risk is less, while upside is quite significant.

Buying and selling is a part of stock trading as well as stock investing and finding out exact buying point of stock is definitely a very difficult and complex task; however with the help of stock chart the task is quite easy, as the stock chart gives clear picture where the support level of the stock lies.

Typically support level arises from resistance level. If XYZ stock break out its resistance level with significant volume, then that resistance level act as a support level for that stock in future. For examples

XYZ stock is in trading zone of $52 to $55 for quite sometime and suddenly the stock breaks $55 with significant volume and makes it’s upward tread say to $60 and if from $60 the stock gets corrected or move downward then that stock probably finds its support level at $55 and if that stock bounce back from $55 then $55 becomes its support level and $60 as its resistance level.

Tips - Buying at support level and selling at resistance level

While doing stock trading the one of the tips or strategy could be to buy stocks at support level and sell stock at resistance level. Normally any stock tends to trade in a narrow range with very limited liquidity and volume. At such situation maximum of the stock investors avoid entering in these stocks but stock trader thinks this as good stock trading opportunity as long as these stock are trading in their specific price zone range. Stock traders always keep monitoring these stocks and enter in such stock pick at their support level and normally exit at their resistance level.

Say for example XZY Company stock is roughly trading in a very narrow range of $52 to $55. Stock trader immediately enters in such stock at $52 and exist their position near to $55.

Now you might be thinking of how stock trader makes out to enter in this stock at $52? Looking to the previous chart history of this stock the stock traders immediately make out $52 as strong support zone. In many previous sessions this XYZ stock had came near to $52 and had bounce back and not made a downward breakout of $52. Whenever this XYZ stock had touch $52 or is very near to it a significant buying had emerged and stock has bounce back from $52 and this gives a clear indication that at $52 the XYZ stock has strong support which could be a buy signal at anytime if this stock touches or is near to $52.

Precautions to take
Stock trading has always been risky as no person in world would give you 100% prediction. Now in above example XYZ stock shows strong support at $20 but unfortunately if the stock breaks $52 and moved further down with significant increase in average volume clearly gives a signal that this stock had break its support level of $52 and at such point making a stop loss near to $50 to $51 could be a very good sensible strategy for avoiding any significant money loss.

Late trade on Friday surge the Wall Street market

November 17, 2007

After a significant volatile week the Wall Street end-up in positive territory! thanks to surge in late day trade on Friday giving a sense of relief to stock investors as well as stock trader, however it will be too early to say from stock investing point of view, is this a perfect buy opportunity in stocks from long term investment perspective but according to me there are few stocks which are showing strong momentum and which could be a strong buy signal from medium as well as long term stock investing as well as stock trading perspective such as

Agilent Technologies Inc. as company is going to buyback $2 billion in stock which shows a strong faith of management in the stock, which is very good for value investor from stock investing point of view.

Salesforce.com Inc. which showed a higher subscription and support revenue growth and there is strong possibility at least this growth will continue in next coming quarters.

The Dow Jones industrial average rose 0.51% or 66.74 to 13,176.79. Broader stock indicators also recovered. The Nasdaq composite index rose 18.73, or 0.72% to 2,637.24. The Standard & Poor's 500 index rose 7.59, or 0.52% to 1,458.74.

Looking from the short term to mid term Wall Street market perspective, it shows that market is trading in zone of 13k to 14k not giving a clear breakout either in downward direction or in upward direction. As long as 13k strong support to Dow Jones is intact there is not too much of worry. At this point I will not be having any fear entering in the market for stock trading with short term and mid term intention.

Stock trading

Stock trading is said to be one of the highly respected and highly skilled business opportunity. With the recent development in the technology of internet maximum of the peoples or stock trader prefers to do online stock trading. Unlike any other business online stock trading should be deserve to have high skill requirement to execute it.

Online trading stock is basically a deal done in stock market by buying and selling or selling and buying of stocks. I am not highly delighted to say that this is very easy and quickly understandable job as it requires definitely a very hard work, deep understanding, thorough knowledge and a very cool mentality to accept losses also.

Trading stock is basically done with the help of some of fundamental as well as lot of technical analysis. If you want to be the master in this business opportunity you should be ready to study all aspect of technical analysis and much of fundamental analysis, without which it is quite less possible for you to be a successful stock trader in online stock trading.

Stock Trading is quite different from stock investing as stock investing is basically done on a long term basis and having basic knowledge of stock or stock market can also be workable in stock investing but it is not the same case with stock trading. Stocktrading need very deep study, excellent knowledge and a creative idea to develop strategies which will work and which will facilitate you consistently with high profit margin.

Now you might be thinking of how one can gather enough knowledge and expertise in this wide based great money making business of online stock trading! As I have mentioned above it is definitely not an easy job but instead it requires high skill and this can only be developed by following the list as mentioned below but not limited to following. It is having said that developing skills in trading stock has no end, a highly developed and skilled stock trader also keep updating his strategy and finds out new and new method to make consistent profit from this business.

• Gaining proficiency through reading high quality stocktrading books written by highly professional and stock market gurus.
• Become proficient in technical analysis and should be able to read and understand charts, graphs, etc.
• Should be able to identify the support level and resistant level of stock.
• Should be able to implement strict stop loss strategy.
• Should be able to pick up high momentum stock at right price.
• Should be able to pinpoint the exact entry point and exact exist point.
• Updating daily with stock market news.
• Keep daily track of your favorite stock portfolio by personally monitoring the stock movements during market hours.
• Start stock trading at initial stage only on paperwork and not with real money
• Refer views and statement made by highly professional stock market gurus that are telecasted through CNBC news channel and other financial related TV channels.
• Try to give maximum of your initial time in studying strategies related to trading stock by referring different book written by stock market gurus.



Stock Trading Practice

Stock Trading Strategy

Skills require for mastering stock trading

Stock Trading Tips

Stock Trading Software

Stock Trading Do's and Don't Do

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Bear market

In a financial market the bear market is said to be a condition in which maximum of the stocks as well as overall stock indices are making lower lows. Bear market is said to be an inappropriate period for making any stock investing but with strict discipline and proper strategy one can still easily make money through stock trading.

Bear market is much played with the sentiment of economy. Any recession or possibility of slowdown in economy gives rise to bear market and this period is worthless for making any short term or mid term stock investing, however one can take long term view for stock investing by finding out excellent stock which can show strong growth potential even if the economy is in recession stage.

In bull market there could be a significant correction which only could be called as short term “stock correction” but it can’t be called as bear market because the tendency of stock which are corrected bounce back immediately at the same pace and again resumes their bull trend.

Unlike the bull market bear market is very harmful for stock investors as it becomes a very difficult task to make out perfect stock for stock investing which will give high returns.

Bull Market

What is bull market?
Bull market is a condition in stock market where maximum of stocks make all time highs along with the index and this phenomenon continues for many days, weeks, months and even years. As long as the overall main index of stock market is making new highs one can easily call it as bull market. Maximum of the stock investors rush in for stock investing in bull market.

It is having said that no one can make out or predict exactly how far the market remains in “bull” stage but as long as overall indexes and maximum of stocks are making new highs it gives out a clear indication that market is in bull stage. It also does not mean that bull market has no correction and no stock can make news lows but companies (stock) which are showing bad performance in terms of their year-on-year or quarter-on-quarter profit margin performance are beaten down significantly and companies which are showing high growth potential are preferentially given thumbs up.

In a secular long term Bull market there can be many small bear market which can last only for few days or few weeks or few months and this may be mainly due to some external factor affecting the stock market but overall the bull market resumes its upward move again and makes its new high.

Maximum of the stock traders as well as stock investors make significant money in bull market through stock trading and stock investing.

Stock trading strategy

Stock trading is a quite a different job as compared to other job categories. In-fact it is not a job but it is a business which involves millions and billion of money executed in buying and selling of stock. Daily billions of dollar money is coming in and going out of the stock market and you need to have best stock trading strategy in place which will help you to pull out the money from this stock market for yourself.

The task to pull out the money through stock trading is definitely not an easy job but instead it consumes lot of deep knowledge, perfect strategy and very accurate and immediate decisions. Stock trading strategy is something which needs to be implemented in more creative way and which should be perfected accordingly the situation arise.

It is having said that one has to go through many different situations which arise while conducting stock trading at every time interval and you need to know which strategy will be useful for each of such situation. The final goal should be to make consistent money by implementing perfect strategy.

Stock trading only consists of risk and more the potential risk more will be the returns.

Skills required for mastering the stock trading

Stock trading is very complicated and stressful job but with lot of hard work and gathering of deep knowledge and understanding the details of stock can make one successful in mastering the stock trading. There are various factors that need to understand for a person who want to develop the skill and master the stocktrading to make consistent profit.

Stocktrading is not a clerical or simple job which requires same repetitive thing to repeat again and again to execute it but it needs things such as

• A will to study the stock trading thoroughly
• Strong discipline, patience and very cool mind which are strong points of very good stock trader.
• To adjust the stocktrading strategy accordingly the need arise
• Strong money management skills
• Strong stock market knowledge along with knowledge of stock behaviors
• Strong technical analysis skills
• Strong ability to learn and keep updated with stock market news, resources, etc
• Creative mindset and ability to think properly and exactly to take immediate decision accordingly the need arise.
• Ability to detect and avoid getting in bad stock which will make you loser
• A newbie should devote maximum of his time to master trading of stock by studying, executing initial stock trading through paperwork and devoting several months to this until he collect enough experience and expertise to start stock trading through his real money.
• Ability to understand the mindset of other stock trader as well as stock investor is a great plus. Knowing the strategy of other will gives you enough room to adjust your strategy.

Stock trading versus stock investing

In my previous post I have detailed about stock trading and stock investing, but still once again I would like to summarize it in brief.

Stock trading is basically and usually done from short interval of time. Stock traders who usually prefers to do stock trading buys the stock for very small interval of time and exist immediately once their target price is achieved or their predetermined profit get triggered while stock investing is done keeping in view the long term returns which is basically performed by stock investors.

The is a huge difference between trading in stock and investing in stock

• Trading in stock is basically a business done on day to day basis to make profit while investing in stock is an investment done in stock only for long term returns.
• Trading in stock involves lot of risk while investing in stock has low risk if the stock pick is just right.
• Trading in stock done by stock trader does not make use of Fundamental Analysis of stock but they usually like to use Technically Analysis to predetermine their entry and exist point, while stock investor who usually invest in stock make use of Fundamental Analysis and very less of Technical Analysis.
• Trading in stock requires very high technical skill, experience, patience and mentality to accept losses if the stock triggers against their way, while stock investing requires basic fundamental knowledge and person from any category can do it very easily.
• % of success in trading stock is less while % of success in investing stock is very high.
• Stocktrading needs continues monitoring and needs to keep in touch with their stock portfolio on day to day basis while Stockinvesting does not require that much of monitoring or does needs to be in continuous touch with their stock portfolio.

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Stock trader

The person who performs stock trading is basically known as stock trader or stock market trader. The stock market trader is one of the vital and most essential elements in stock market. Stock traders are the peoples whose intention is mostly to perform stock trading and very less or some of stock investing. Stock trading is normally buying and selling of stock done for short period of time may be for days or for few weeks while stock investing is generally done for long period of time means after buying the stock it is hold for few months to many years and then it is sold or kept in hold as long as that stock is performing exceptionally well.

Stock market traders are basically high risk taker individual who actively participate in stock market on almost daily basis. The maximum of the stock market trader treats the stock market as their regular business work and considers this as their only mainstream income source.

The stock market trader buys the stock and usually holds them for very short period of time may be for a day, or a week or mostly for couple of months, beyond that then they could be recognized as stock investor. There is a category in stock market trader mainly called as “day trader” who usually executes the stock trading in only one day. They have the authority to short the stock means they can sell the stock which they are not holding and can cover their position by buying those stock again in the same day…..means taking the profit or loss to their home in the same day itself.

Previously in the old days the stock market trader were very less in number and the process to execute the stock trading was a very complicated process but with the discovery of superb electronic technology and internet the number of stock trader have increased significantly. With the recent development of technology now peoples from all categories are taking use of internet and are becoming regular online stock traders. Online stock trader are now able to execute the stock trading through their home with the help of internet and with the help of same technology they are able to get any information related to stock market or of any stock at their fingertip facilitating them to execute the stocktrading process in efficient way.

Stock investor

Stock investor is a character (individual or firm) who buys and sell stocks in stock market. The stock investor is differentiated in many different terms according to the activities they perform in stock market.

Some of the stock investor are recognized as follows... such as retail stock investors, high net individual stock investor, foreign institutional stock investor, domestic mutual fund stock investors, etc. These stock investors can be differentiated in other terms also as short term stock investor, mid term stock investor or long term stock investor depending upon the horizon they have kept in their mind while making any activities in stock market.

Depending upon the functionality the stock investors plays an important role in keeping the stock market workable. With the absence of stock investor the stock market will stop to function and it will bring a big financial crisis in the economy of the country. As it is evident that stock market is a heart of each countries economy and if it stopped to function then it will make an adverse effect on economy and so the stock investors are very valuable.

Quarterly result

What is Quarterly result?
Quarterly result is an announcement made by the company after every 4 months about the company’s overall performance to shareholder.

Quarterly result is most importance aspect of fundamental analysis. It has been mandatory for all the companies listed on stock exchange to make the public announcement of their company's quarterly results so that the company shareholder comes to know how the company is performing. At the time of declaration of quarterly result the company gives its overall performance of past quarter and at the same times gives future guidance by which the shareholder can clearly get a company’s overview how the present performance of company has been and can predict future performance from the company’s guidance.

While announcing the quarterly result the company has to provide all important information to shareholder such as quarter-on-quarter overall profit, net profit, expenditure, quarterly sales, annual sales, information about clients, % of market holding, expansions, organic growth of company, inorganic growth of company and many other things which gives a clear picture about companies performance.

Long term investor usually waits for quarterly result of company and for future guidance and then decides to make any stock investment in that company or not.