Trading - 2/3 - One Cent At A Time

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.

The Advantages of Binary Option Trading

February 15, 2015 Leave a Comment

Like most people, you may be skeptical when you hear about the supposed benefits of binary option trading. Every form of trading has its proponents and the ones who prefer binary options tend to be very loud and passionate, which means many people are quick to think that it’s a bunch of hype. Make no mistake: binary option trading is nothing to rush into. However, for those who take their time learning how this method works, it can offer the following advantages.

High Returns

We’ll talk more about this in a minute, but trading options definitely comes with its fair share of risks. Fortunately, it’s also very generous with its rewards. Pulling in a winning option can net you up to 90% of your investment. Even something like Forex typically doesn’t get higher than 10%. It’s hard not to get excited about this kind of potential.

(See Also – 3 Trading Mistakes to Correct 2015)

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.

How To Trade In Penny Stocks For Profits – a Reality

September 15, 2014 1 Comment

Penny stocks are shares of companies trading below $5. They have market caps of under $200 M and compared to typical stock, come with their higher share of risk. But that is not to say that they don’t have an allure. Penny stocks promise a big return for a small amount of investment. That’s why experienced traders and investors have penny stock trading in their portfolio.

Penny stocks, like any other business venture, demands the know-how. To make your penny stocks venture a profitable one, you need the wisdom of the trade. It will crucify you if you don’t. Here’s a good guide to picking and trading a potential penny stock.

Get Your Mindset Right for Successful Forex Trading

May 21, 2014 2 Comments

Forex trading is all about mind set. Setting your mind from stocks and in to Forex. A little bit of diversification helps, isn’t it? You may want to read my post – Can you Profit From Forex Trading? and Forex Trading or Stock Trading, where to expect higher return. In this post we will look in to the mind factor while trading Forex.

There are several paths towards successful trading in the financial markets, each one with its own blend of techniques, methodologies, and skills, and it is only natural that many people not involved with trading view it as an unreachable activity. The markets and the trader can be compared to the open ocean and a sailor.

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.

Penny Stock Trading for a Profit

September 2, 2012 3 Comments

Penny stocks are a risky proposition, not for faint hearts and definitely not for people in debt or who struggling to keep us with saving money. Penny stock trading for one who’s built up sufficient emergency fund, retirement fund.

Penny Stock Trading for a Profit:

Rather like the stories of sailors being drawn to the call of sirens, the lure of penny stocks calls out to many investors who are tempted by the prospect of turning a small investment into a sizeable profit when the stock takes off.

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.

Massive Increase in the Number of Women Traders – A Good Sign

June 26, 2012 1 Comment

The issue of gender equality is under scrutiny in every business sector. It’s widely believed that the opportunities afforded to women to become successes in their chosen industry aren’t as great at those given to men, but the tide is beginning to turn. One such area is trading on the stock market, an activity seen as being almost overwhelmingly male. With accessibility to trading increased through various outlets such as the internet, more people are getting involved in trading.

As the below infographic from City Index shows, there has been a massive increase in the number of women traders, many of whom starting because of the massive potential gains involved in certain types of trading such as spread betting. Many new female traders are at or near the top of the hierarchy with their current employers, with many making annual profits from trading activity totalling thousands of pounds. It could be said that new female traders are trailblazers, especially if the figures displayed are anything to go by.

Female Trading Infographic

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