Stock Investing - One Cent At A Time

The Stock Market Made Easy

October 30, 2018 1 Comment

I am sure you’re anxiously seeing the stock indices volatility and gross downturn past few weeks. Is it abnormal? Naturally, stocks do vary. For example, there are dividend stocks or defensive stocks. A good beginning stock is dividend stocks which give buyers a long-term return. A defensive stock is a good beginning stock for a long-term investment like water, electrical, or utility stocks.

The Stock Market Made Easy

I am not panicking with the recent market downturn. Neither should be you. We need to understand how these markets work. The loss you are seeing now re all paper loss, you don’t make a loss till you sell your positions. I am holding tights on to my stocks and funds.

6 Stock Trading Books You Should Read

July 7, 2016 4 Comments

I personally trade stocks very rarely and try not to advise my readers to trade. But those who can afford to trade, that is taking on more risk, can do well by reading about the trading first before venturing into the field. it’s always better to do your homework before you start stock trading

6 Best Books on Stock Trading

There are a lot of stock trading books out there which could already equip you with all the things you need to know about the stock market and the career in itself. In this article, we highlighted the top six books on stock trading that every successful trader has already read – and you should, too!

Letting Experts Manage Your Investment Dollars- A Case for Funds

February 25, 2015 Leave a Comment

I was once an avid self-investor. I used to be the investment advisor for my colleagues. I was successful at it, till I compared my return with that of some mutual funds I bought on the side. It was a pleasant awakening; I was nowhere close to their performance. Then came 2008 when I watched my investments in Washington Mutual bank stocks disappear within few minutes, in front of my eyes!

Trading via Funds

It didn’t take it long to realize I was not a great expert in stock picking. Fund managers were far better. Since then all of my new investments have been either in Mutual Funds or in Exchange Traded Funds. Not only these two, there’s another kind of fund that is still out of my reach, for not having enough investible asset, the Hedge Funds.

Precautions before You Trade in Penny Stocks

October 13, 2014 8 Comments

Trading penny stocks is considered a risky business for many and there are reasons why this is true and reasons why it is still a good option for making money. Experts define penny stocks as company shares below $5 each. Even though beginners start trading with these cheap stocks, they experience the volatility and risk immediately. However, before you start investing, take heed of these common precautions to start trading in a prudent and reasonable way.

Penny Stocks

Trading in itself is a risky proposition, trading in penny stocks is more so. Low liquidity, dependence on momentum and manipulative nature makes penny stock trading a riskier option than normal stock trading on stock exchanges through your broker.

4 Deadly Stock Trading Mistakes to Avoid

October 2, 2013 21 Comments

To date, my biggest stock trading mistake was to put all eggs in one basket, meaning I invested in a single company again and again, Washington Mutual to be particular, while the price was falling down. When the WaMu was declared bankrupt I had a major loss. I attribute the loss to speculation and over confidence – too big to fail confidence. I had a dream of being rich with WaMu shares, one day!

Although practically everyone who decides to start trading goes in with dreams of success, there are plenty of common mistakes that traders of all levels make. Discover these four deadly stock trading mistakes to make sure you know what not to do when trading to increase your chances of success.

Setting your Mind Before starting with Online Stock Trading

September 20, 2013 4 Comments

If I say finance is pretty much a mind game, would you agree? You are financially as fit as you manage the balance between your income and spending. Your future will also depend on how well you manage risk to get higher return of your investment. Saving the money in retirement account or going for an expensive vacation is all about mind game. Similarly buying individual stock vs. buying index fund is also a mind game.

So, when you start with online stock trading, how well you’ll perform depends on how well you play this mind game. Resisting temptation to buy one particular stock, which may be a risky decision, is a difficult mind battle you’ll have to win. One of my biggest financial mistake was to repeatedly invest in a falling stock, which ultimately went for bankruptcy.

Forex Trading vs Stock Trading – Where to Expect Higher Return

July 14, 2012 4 Comments

Few months back I talked about forex trading, here is a guest post which compares Forex trading with stock trading. I am personally not a big fan of either. I am better off with index funds and mutual funds. Enjoy the post if you have risk appetite for trading.

Forex trading chart

Forex trading and stock trading are two different forms of financial trading. They may both represent two different ways to make money from the financial markets, but they have some subtle differences which may or may not work in the trader’s favor.

How to Control Stock Trading Impulses

May 21, 2012 21 Comments

Hope you haven’t frowned seeing the title. There are many who invest in stocks out of compulsion or impulses. This article is for those. I generally tend to write about people who are like me, middle class, having some money to enjoy life but, mostly trying hard to maximize money’s worth.

People like us, do not usually have money for buying stocks on impulse. Still, it almost happened to me last week. I was on the verge of buying into Facebook on the opening day.

In the end, I did resist myself against buying the Facebook stock. Not that Facebook is a bad investment but, the whole affair was nothing else than impulse buying. I didn’t study the valuation, I wasn’t reading analyst reports. I was just buying it, for the sake of it. Giving in to the hype and hoopla.

Get Excited By Red and Depressed By Green

September 30, 2011 15 Comments

I am not talking about traffic signals – I mean the stock market and its movement upward or downward. I get excited when I have money to invest in a market and it goes into the red. I worry about my investable income when I see the market in the green for an extended period.

In plain language, I am just in my mid 30’s so now, I am not bothered at all about the market being low. I don’t buy and sell frequently on every ups and downs, I don’t care by how much stock market goes up or down every day. I hate frequent stock trading.

“Wall Street makes its money on activity. You make your money on inactivity.” – Warren Buffett

How Can I Time Stock Market Correctly?

August 31, 2011 16 Comments

Millions of investors ask the same question over and over again: ‘How can I time the stock market?’ You have seen a stock or fund’s 52-week high and 52-week low, and if you are like me, you’ve probably wondered why you didn’t buy at the lowest and sell at the highest.

Every stock I see on Yahoo! finance makes me sigh… If only I could have bought the stock at such-and-such date and sold on such-and-such date. I could have been a multimillionaire by now had I timed the market correctly.

Various fools and alphas have written tons of articles on timing the market.

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