Sunday, July 25, 2010
The Stock Market for Beginners
From Stock Trading Info
Next you will need to understand what fundamental analysis and technical analysis is:
The Stock Market For Beginners can seem like a place to make some easy money fast. You often here in the news how a stock went up four points, and say to yourself, if I had gotten in on that one I could have made a killing. Fast easy money is far from the truth when it comes to the stock market. But you can make money in the stock market. Slow and easy is the way to go, and if you start at an early age, a fast and easy retirement is a reality.
Beginners at stock trading should take the time to get the education they need in order to succeed. You do not see a surgeon pick up a knife and become good at surgery overnight. It takes time and knowledge to be good at anything in life. To begin with, make sure you understand How The Stock Market Works. Start with the basics and work your way up. You did not pick up a book one day and start to read, first you learned the letters of the alphabet.
Decide how you are going to trade. Making this decision is going to tell you what you need to be reading to learn about it. Are you going to scalp, day trade, swing trade, or buy and hold for the long run. Scalping involves buying large quantities of shares in a stock, and you are just looking for a small move in the stock price. Day trading is similar to scalping but you are looking for bigger moves in the price, and you do not hold the stock overnight. Swing trading is when you buy a stock and hold it for a short period of time looking for a substantial move in the price. Buy and hold is when you plan on holding on to the stock for a long time. You believe the company is going to grow in value and the price is going to go much higher.
Next you will need to understand what fundamental analysis and technical analysis is:
- Fundamental Analysis relies on economic supply and demand information, such as a stocks annual growth rate, and quarterly earnings. This can be very time consuming reading each company's financial reports. There is a paper called Investor’s Business Daily to help with this. If you are going to be trading in the markets you should not be with out this paper.
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Technical Analysis is the study of time, price, and sentiment. The tool used for this is charts. Charts show a stocks price history, and with practice we can see everything we need to know about a stock, just by looking at the chart. Click here for more information about Reading and Understanding Charts
The next thing you are going to need is a Stock Trading System. When you go on a vacation you do not just jump in the car and go. You look at a map, decide when you are going to leave, when you are going to start to head home etc. The same is true with the stock market. Many beginners jump in without a plan, you must have a plan in place, why and when you are going to enter the trade, when you are going to get out, and you must stick to the plan. Practice trading on paper before you open an account to see how well you are doing. Once you are doing good on paper then it is time for the real deal.
- Source vss2000 -
- Source vss2000 -
Welcome to Australian Stock Exchange
The Australian Stock Exchange (ASX) is the main stock exchange in Australia.Other mirror exchanges exist but they simply mirror the Australian Exchange. The Stock Exchange started off as individual exchanges in different states which were established as far back as 1871.
Trading on the stock exchange is all electronic not like in days gone by where it was all manual and left up to humans. The system responsible for was called SEATS but has since been taken over by a new, far superior electronic system capable of many more transactions per second called ITS which stands for Intergrated Trading System.
The current Managing Director of the Australian Securities Exchange is Robert Elstone who was appinted in 2006.
There are four major index's which are regularly quoted and these include the All Ordinaries, The Top 200 (list of the top 200 stocks),the Top 100 (list of the top 100 stocks and the ASX 50 which contains the top 50 stocks.The most common indices which we often here on the news are the Top 200 and the All Ords. They are still watched by investors as the bench mark indices and are an indication of where the market is traveling. The Australian Securities Exchange is a public company and is listed on it's own Exchange. Every stock listed is assigned a three letter code.
The current market capitalisation is believed to be about 1 trillion dollars with approx 2200 listed companies to date.
The Stock Exchange trades approx 500 000 trades a day.
The mining stocks make up a very large portion of the index especially with the recent Mining resource boom.Some of the biggest stocks traded that make up the index include,Rio Tinto, BHP Billiton, National Australia Bank and Telstra.
There are many rules regarding listing on the Australian Securities Exchange but this can be a great way for companies to expand and get new funds into their coffers.
For ASX Share Prices please go to our share prices page.
Saturday, July 24, 2010
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