Calalpa http://www.calalpa.org Communication and breaking news Fri, 02 Dec 2016 11:40:45 +0000 en-US hourly 1 https://wordpress.org/?v=4.8 UltraTrade: What Every Aspiring Professional Trader Should Know About Binary Options http://www.calalpa.org/finance/ultratrade-every-aspiring-professional-trader-know-binary-options.php Fri, 25 Nov 2016 10:30:00 +0000 http://www.calalpa.org/?p=93 There are tons of educational material that talks about trading binary options. Doing a search on Google or whatever search engine you mainly use, a proliferation of guides and tips will easily envelop your screen. But are they really worth your time? Below are 7 essential tips that every binary options trader should know. Each […]

The post UltraTrade: What Every Aspiring Professional Trader Should Know About Binary Options appeared first on Calalpa.

]]>
Trading binary options with UltraTrade

There are tons of educational material that talks about trading binary options. Doing a search on Google or whatever search engine you mainly use, a proliferation of guides and tips will easily envelop your screen. But are they really worth your time? Below are 7 essential tips that every binary options trader should know. Each tip points out a skill or resource that, when combined with others, can generate a realistic return on investment.

Capitalize on What Makes Binary Options Unique

Traditional financial markets like stocks and spot currencies have no predetermined limits in terms of risk and reward. In other words, you do not know how much you can profit or lose from any given trade. On the other hand, a binary options trade offers the ability to mitigate risk by presetting both potential gain and risk amount. Although potential gain is capped, your capital is protected from further losses in the event that you are unable to manually close it for whatever reason.

You Will Need a Broker

You will need a specialist like UltraTrade to process binary option trade orders for you in any of the financial markets you choose to trade. As a trading platform, UltraTrade has the infrastructure to manage trades in multiple underlying assets including stocks, currencies, indices, and commodities. Working with the right broker plays a vital role in your success as a retail trader in the binary options market. Order execution must be timely and reliable, rates must be fair and competitive, and customer support must be available 24/7 to address inquiries and technical issues.

Professional Trading Commands Practice

For traders who are completely new to the binary options market, the learning curve will usually be a stretch. Nonetheless, it is a path every serious trader should commit to. You can practice either on a demo account or a live account that contains a small amount of money you are comfortable risking. Most brokers allow traders to open a minimum account with no more than $50. Only after you have developed the techniques and the mental framework to trade professionally should you consider opening a live account with a larger amount of money.

Risk Management is Crucial

Perhaps the single most important aspect in trading is risk management. No successful trader has been able to profit consistently without a set of risk management principles they’ve acquired over their long career. One way to mitigate risk is by controlling the size of your positions. For example, if you are trading binary options by way of Forex, adjusting your position from 1 standard lot to 1 mini lot during volatile times of the day or week is a great way to protect capital.

More is Less, Less is More

This addresses the common misconception of new traders that the more they trade, the higher their ROI over time. On the contrary, frequent trading actually leads to more chances of losing. Overtrading exposes your capital to unpredictable short-term fluctuations. Instead, look for your sweet spot when it comes to time frame of your trade positions. Trading long-term preserves capital from trade losses and broker commission fees. It also causes less stress and frustration apparent in day-trading and scalping strategies.

Don’t Avoid Risk, Accept It

Risk is ever-present in the trading business. Irrespective of the underlying asset, time frame, position size, and the educational resources and technical tools you’ve used to acquire trade ideas and entry signals, risk will always be there to surprise you. Accept this fact and you’ll be better inclined to managing losing positions. If you try to avoid risk, you will always feel that your trade ideas are 100 percent winners and that you will never lose the trades you decide to take.

What You Do After Trading Matters

Regularly withdrawing money from your trading account is vital to growing it. After all, what’s the use of making money if you end up losing it in some other trade later on. You can schedule periodic withdrawals on a weekly or biweekly basis to emulate the payout of an actual job or business. How much you withdraw entirely depends on your investment goals. At least one-third of your profits should be withdrawn and saved on a separate bank account where it will accrue interest.

Making Use Of These 7 Tips

These 7 tips are not designed to make you a millionaire overnight or even after months of practicing them. Instead, they are designed to help novice and intermediate traders achieve a methodical approach to making money in binary options. What’s great is that the techniques and tips you acquire from this guide can also be transferred to other financial markets that you decide to pursue later on. Use them as a template to quickly cover the basics and build a foundation around your trading business.

 

The post UltraTrade: What Every Aspiring Professional Trader Should Know About Binary Options appeared first on Calalpa.

]]>
Binary Options Trading Explained http://www.calalpa.org/finance/binary-options-trading-explained.php Wed, 05 Oct 2016 10:00:14 +0000 http://www.calalpa.org/?p=87 The most simplistic way to begin is to ask ourselves whether we think a certain asset will be worth a certain amount by a certain time. For example: Will coffee be worth $1.12 a pound by 3:15 p.m. tomorrow? The answer being either yes or no is where the name, ‘binary option’ comes from: ‘bi’, […]

The post Binary Options Trading Explained appeared first on Calalpa.

]]>
TorOption Trading Education

The most simplistic way to begin is to ask ourselves whether we think a certain asset will be worth a certain amount by a certain time. For example: Will coffee be worth $1.12 a pound by 3:15 p.m. tomorrow? The answer being either yes or no is where the name, ‘binary option’ comes from: ‘bi’, meaning ‘two’. It also determines whether a trader will decide to make the transaction.

Based On Underlying Assets

Binary Options are based on what are called, ‘underlying assets’, which are the products or things that give value to an agreement. For example, when dealing with trading in derivatives, as with binary options, the value of the contract comes from a financial instrument which is underlying, such as a stock, commodity or currency. Determining what value a trader thinks a particular underlying asset will have at a certain time will determine whether or not he or she makes the trade. It is a way to trade the price fluctuations which occur in the market.

Trading In ‘Yes’ And ‘No’

In the scenario above as to whether a pound of coffee will be worth a certain amount at 3:15 p.m. tomorrow, the trader would make the trade if, in fact, he or she believed the price would be more than the proposed $1.12. If the trader did not believe it would make the agreed on price, then he or she could sell or simply not buy. The simplicity of the, ‘yes’, ‘no’ paradigm has made binary options a popular and simple financial asset for trading. Still, it is important to fully understand the system around which binary options are fitted.

Know The Market

TorOption broker provides on its site education, customer support and advanced security, as well as an innovative platform for trading. When considering trading in binary options, it is good to consider the pros and cons, as well as the market and the time frames in which you can consider trading. Although binary options are considered an ‘exotic option’, the risks, as well as the profits, remain capped.

Trading A Zero-Sum Game

If you decide that coffee will be worth more than $1.12 tomorrow at 3:15 p.m., and you want to trade, the price will always be between $0 and $100.00. The bid and ask price will vary slightly and will fluctuate until the offer expires. If you purchase the trade at $30 and coffee goes up in price tomorrow, you get $100. Every trade is a zero-sum game: you walk away with either $0 or $100. You either get what someone else put in or vice versa. The risks are calculated, but so are the gains. Traders can also purchase more than contract, if they should choose.

Odds Determine Price

Traders determine what their bid and ask prices will be, based on the probability on whether the underlying asset will be above or below a certain value at a certain time. The closer the bid is to $100, the more likely it can be assumed that the seller believes the asset will be worth a certain price at a certain time. They are taking a slight risk, believing the binary option will expire at $100. When the price is set to $10, the seller likely believes the underlying asset will not be worth a certain price at the time set and is risking $90 in order to gain $10. When the price is in the middle, the seller may be unsure of the risk, and hoping to break even. Knowing the market and studying up, as well as having professional help can assist in successfully traversing the world of binary options.

The post Binary Options Trading Explained appeared first on Calalpa.

]]>
AlfaTrade: The Impact of Brexit and What It Means For You? http://www.calalpa.org/finance/alfatrade-the-impact-of-brexit-and-what-it-means-for-you.php Thu, 30 Jun 2016 15:42:40 +0000 http://www.calalpa.org/?p=76   For months, political and financial analysts on both sides of the Atlantic Ocean had overwhelmingly considered it highly unlikely that British voters would choose to leave the European Union. And yet, as we learned near midnight last night, that’s exactly what the voters did. The Media’s Role The media, as usual, is making a […]

The post AlfaTrade: The Impact of Brexit and What It Means For You? appeared first on Calalpa.

]]>
 

For months, political and financial analysts on both sides of the Atlantic Ocean had overwhelmingly considered it highly unlikely that British voters would choose to leave the European Union. And yet, as we learned near midnight last night, that’s exactly what the voters did.

The Media’s Role

The media, as usual, is making a big deal about this news. But from an investment perspective, is it really worthy of all this attention? After all, the United Kingdom represents only 4% of the world’s Gross Domestic Product (it ranks a distant fifth behind the United States, China, Japan, and Germany), according to the World Bank. The U.S. generates a whopping 22% of the world’s GDP – more than the combined GDP of all 28 members of the EU, only four of whom are in the global top 10!

The Impact on Britain

The British are also certain to experience disruption. British Prime Minister David Cameron already resigned (others are expected, too), which will force the British to select new leaders. Then they must negotiate new trade agreements with more than one hundred countries, including new agreements with its former EU partners. All that will take years.

To Understand How This Happened, Let’s Look at the History of the EU

In order to combat the large economic powerhouses like the United States, Japan, India, and China, many of the European nations decided it was best to band together as states in hopes to achieve their own economic powerhouses.

The global financial marketplace is incredibly competitive. In theory, this act of coming together would work, however, the vast differences in culture and business practices made this agreement futile. The hope to emulate the American model of several states with similar laws and regulations were set to create another economic powerhouse.

But the EU’s founders failed to resolve one important element: Although they unified commercial policies across the continent, they failed to resolve political and social disagreements. This led the larger economic forces like Britain and Germany to take on the debts of other countries like Greece and Spain.

The economies of countries like Greece, Spain, Italy, and Portugal have not only proved to be disastrous to the EU, their politicians have also maintained their stubborn behavior. Their excessive spending and accumulation of massive debt continuously forced Britain and Germany to come to the rescue.

 

Alfatrade Fundamental Analysis

The Recent Vote Means One Thing: Britain Is Fed Up

The vast majority of the world’s analysts and pundits – and, for that matter, Las Vegas bookmakers – failed to appreciate the depth of British frustration. On Thursday, convinced that the proposal to exit the EU would be defeated, stock markets around the world rose dramatically.

But as soon as it became clear that voters defied predictions, global financial markets began to fall. Currency markets are gyrating; prices for gold, bitcoin and government bonds are jumping.

It seems no one truly understands what Brexit means for the average consumer. However, there are two facts we do know: uncertainty means volatility. And volatility can create opportunity.

Alfatrade is monitoring the situation closely for your benefit. The forex market is sure to fluctuate in the coming months and they will have up-to-date statistics that will help you garner the best results.

What Does This Mean For Stocks?

Investors are comfortable with good news and bad news. Good news means prices are on the rise. Some bad news is okay too because prices are going to fall. The perfect time to buy is during the bad times. This is because prices tend to equalize with time. Therefore, when an economic difficulty presents itself, it is a good time for investors.

The fruition of Brexit presents us with an unparalleled possibility for prosperity. However, in the short-term you should expect volatility. In the long run, you should expect profit.

The post AlfaTrade: The Impact of Brexit and What It Means For You? appeared first on Calalpa.

]]>
Overview of Scaffold Ladders http://www.calalpa.org/industry/overview-scaffold-ladders.php Fri, 17 Jun 2016 08:01:03 +0000 http://www.calalpa.org/?p=72 Introduction to scaffold ladders One of the most practical construction equipment products you can use is scaffold ladders. These are carts that enable construction companies to meet a variety of purposes. With these ladders construction companies can easily manage their tools and equipment during projects. As well as serving a variety of purposes they come […]

The post Overview of Scaffold Ladders appeared first on Calalpa.

]]>
Introduction to scaffold ladders

One of the most practical construction equipment products you can use is scaffold ladders. These are carts that enable construction companies to meet a variety of purposes. With these ladders construction companies can easily manage their tools and equipment during projects. As well as serving a variety of purposes they come in certain sizes to make access and storage more convenient as well as being offered at a low cost. As a result this is one of the things that will greatly benefit construction workers and companies on a regular basis.

Purposes they are used for

Scaffold ladders serve a number of purposes for construction companies. These purposes include handling materials, storing objects such as tools and equipment and also transporting to various locations at a job site. These ladders are ideal for handling materials because they provide lots of support and space. Construction companies can store tools such as saws, electric drills, hammers and screw drivers. They can also transport these items from place to place when doing a job. This provides portability which will enable construction workers to conveniently transport and access these valuable tools and equipment.

mobile scaffold towers

Materials

Scaffold ladders are made up of strong materials that make them quite durable. They are made up of aluminum. As a result, they make a great item to use whenever construction companies are looking to store tools and move them to various locations on a job site. Since the material of scaffold ladders are very durable construction workers will have an item that is of very high quality and that will last for many years.

Size and measurements

The sizes and measurements of scaffold ladders usually come in a certain range. The height of these ladders is 50 and ¾ inches, 47.5 inches in length and 22.5 inches in width. These ladders also come with a folded width of 6 ¼ feet, a plank width of 17 inches and a plank length of 46 5/16 inches.

STRUCTURE AND SPECS

With scaffold ladders, construction companies will get an item that comes with things such as a central locking hinge, steel wrap weld construction, wheels and also two way casters. The ladders can hold up to 500 pounds in weight. Therefore this ladder is very strong and will enable companies to easily store and transport objects that are heavy as well as lightweight.

MARIO ORLANDO AND THEIR SERVICES

Mario Orlando is a construction equipment rental, retail and manufacturing company based in Italy. The company was founded in 1964 and has established itself as a leader in producing, selling and renting construction equipment such as scaffold ladders. With its devotion to customer satisfaction, Mario Orlando has kept its place as a leading company in the industry. With Mario Orlando, construction companies can either rent or buy various forms of construction products such as scaffold ladders, scaffold towers and stages. As a result, Mario Orlando is able to meet the needs of construction companies throughout the world with its products and services.

The post Overview of Scaffold Ladders appeared first on Calalpa.

]]>
Why Forex Trading is a Critical Piece of the Pie for Modern Investors http://www.calalpa.org/finance/forex-trading-critical-piece-pie-modern-investors.php Fri, 20 May 2016 09:48:44 +0000 http://www.calalpa.org/?p=66   Investors have a wide range of different options when it comes to growing their money. Many choose ultra-safe treasury bonds. Others choose individual stocks. They like the idea of getting behind Google or General Electric, growing their money slowly with these modern giants. Others still have taken their money out of commodities, choosing instead […]

The post Why Forex Trading is a Critical Piece of the Pie for Modern Investors appeared first on Calalpa.

]]>
 

Investors have a wide range of different options when it comes to growing their money. Many choose ultra-safe treasury bonds. Others choose individual stocks. They like the idea of getting behind Google or General Electric, growing their money slowly with these modern giants. Others still have taken their money out of commodities, choosing instead of invest in real estate, business franchises, or other options. It’s critical today to have your money working on your behalf. It’s important, too, to have short-term and long-term growth vehicles. This is where foreign exchange, or forex, comes into play. Investors need many options, and forex can almost assuredly fill this gap.

The ability to extract short-term gains

Investors today must develop strategies for accruing both short and long-term gains. Everyone knows that investing in blue chip stocks or putting money into an index stock market fund can lead to growth over the long term. What about growing your money over the short run? This is where forex can come in handy. It’s not unusual to grow one’s investment by ten-percent or more over the course of a week or a month in forex. You’ll have the ability to aggregate these gains and compound them many times, allowing for more aggressive growth. It’s certainly true that there is a place for long range investing. Investors should look for ways to aggressively grow their money, too.

Benefiting from macroeconomic trends

The ability to spot bigger trends in the financial world is a fine skill. It’s also a skill that’s not particularly easy to use as an investor. How the world economy is performing will have some impact on individual stocks, but many companies are able to buck these trends. If you have strong knowledge of foreign markets and fiscal policy, you can, however, know the different ways that various currencies are going to respond to the pressures and challenges thrust upon them. If you can anticipate trends, you can make money by investing in the right forex assets at the right time.

Low-cost trading platforms

One of the issues with traditional investing is that’s costly. Brokers take their cut. Financial advisers get their percentage. You’ll be lucky if you can run a profit after paying off everyone who took a part in your trade. Forex makes it much easier than this. You can trade right online without having to jump through complex hoops. This will make your life much easier overall and will provide you peace of mind as you put your money to work. By diversifying the amount of effort you have to put into the investing process, you can ensure that you’re not spending too much time working on a solution.

The ability to hedge

One of the best things about forex is that it gives you the unique ability to hedge your existing investments. If you’re like most investors, then you have stock positions that depend upon the strength of the US economy in comparison to the economies of other countries. If the US happens to suffer, your investment positions might take a hit. If you’re wise, you can use forex to hedge against that possibility. By investing in other currency positions, you can ensure that if something bad happens to the US economy, you’re benefiting from a rise in the value of your forex positions.

The post Why Forex Trading is a Critical Piece of the Pie for Modern Investors appeared first on Calalpa.

]]>
The Risks And Rewards Of Options Trading http://www.calalpa.org/finance/risks-rewards-options-trading.php Thu, 19 May 2016 14:38:31 +0000 http://www.calalpa.org/?p=63 An investment contract that provides a buyer the right to buy or sell an underlying asset on or before a specified date, for a specific price, is called an option. With an option, the buyer or seller is under not obligation to buy or sell the asset. It is a binding contract. There will be […]

The post The Risks And Rewards Of Options Trading appeared first on Calalpa.

]]>
An investment contract that provides a buyer the right to buy or sell an underlying asset on or before a specified date, for a specific price, is called an option. With an option, the buyer or seller is under not obligation to buy or sell the asset. It is a binding contract. There will be very well defined terms written into an options contract.

Versatility

The attraction of options contracts is their versatility. They make it possible for an investor to adjust or adapt their position based on any situation that may occur. Some options are based on risky and speculative investments. Others are based on extremely conservative investments. An investor can prevent their position from declining as well as bet on the movement of the index or market. They are also complex securities that can provide significant rewards with extreme risk.

Basic Option Trading

When an investor anticipates a stock price to rise or lower in value, they can call an option that would enable them to pay for the stock at a fixed price at a later date. This makes it possible for them to avoid paying for the stock outright. This would require the investor to pay a premium. They would not have to purchase the stock; the investor only has the right to buy or sell it at or before the determined expiration date. The risk of loss would be limited to the premium paid. The profit or loss could be significant if market performance is unanticipated.

Long Put Option

An investor who anticipates a stock price to go lower can purchase a put option. This would enable them to sell the stock at a fixed price at a future date. The investor does not have to sell the stock. Should the stock price be less than the exercise price at its expiration, and the value is more than the premium paid by the investor, profit will be realized. Should the stock price be above the exercise price, the investor can let the options contract expire. They will then only lose the amount of the premium they paid.

Short Put Option

When an investor anticipates a stock’s price to rise, they can buy the stock. They can also write a put option. The investor has an obligation to purchase the stock at a fixed price. If the price of the stock is higher than the fixed price, the investor who wrote the put will make a profit in the amount of the premium that was provided. Should the stock price at expiration be below the fixed price, in excess of the premium provided, the investor will lose money. They could lose up to the fixed price less the premium.

Short Call

When an investor anticipates a stock will become lower in price, they can sell the stock short or write a call. The investor is obligated to sell the stock to the call buyer at an established fixed price. Should the investor not own the stock at the time of the option being exercised, he is required to purchase the stock from the market at the current market price. Should the price of the stock go lower, the investor who wrote the call will make a profit in the amount of the premium paid. The seller could lose money, and the amount of such a loss could have no limitations.

The post The Risks And Rewards Of Options Trading appeared first on Calalpa.

]]>
Making the Stock Market Simple http://www.calalpa.org/finance/making-stock-market-simple.php Thu, 19 May 2016 10:19:39 +0000 http://www.calalpa.org/?p=58 Summary Over the years, I have been asked by young people and old people alike, “What is the stock market? And how does it work?” What most who ask me this question don’t realize is that, truly, they are asking an incredibly complex question. So, today, we are going to break the stock market down […]

The post Making the Stock Market Simple appeared first on Calalpa.

]]>

Summary

Over the years, I have been asked by young people and old people alike, “What is the stock market? And how does it work?” What most who ask me this question don’t realize is that, truly, they are asking an incredibly complex question. So, today, we are going to break the stock market down into as simple of a definition as possible and then attempt to explain how it works.

What is the Stock Market?

As a most basic definition, the stock market is any place where two or more individuals come together to exchange ownership in a public company, or companies, by trading “shares” in that company. A share represents one unit of voting power within that company, and the person who holds it can attend shareholder meetings and vote on policy for the company. It also usually entitles the holder to receiving a portion of the company’s earnings, which are called “dividends”, but this is not always the case.

Stock Brokers

Of course, there are legalities involved in exchanging shares in a public company. As a result, each country has a governing body that determines how and where the trading of these shares can take place. In America, this ruling body is the Securities and Exchange Commission (SEC). The SEC only allows certain groups called “broker-dealers” to facilitate the trading of these shares. Examples of broker-dealers include Schwab, Fidelity, Ameritrade, and others.

What is a Stock Index?

The second most common question that I get is “What is a stock index and how does it work?” The answer to this question is a little more complicated. Basically, there are different sectors for stocks. For example, there are energy stocks, industrial stocks, retail stocks, large-cap stocks, small-cap stocks, and there are many other “dividers” that we call sectors.

An index attempts to take a couple of stocks from each sector and use those as a representation of how the entire sector is performing at any one period. For example, the Dow Jones Industrial Average (DJIA), which is one of the largest US stock market indices, takes the 30 largest companies within the US and allows people to view their performance as an indicator for how the US economy is doing as a whole, since the 30 largest companies’ performance should be fairly representative of total US outlook.

What Makes the Stock Market Perform Well or Poorly?

The third most common question, then, is “why is the stock market (usually meaning the US stock market) performing so poorly or so well?” This question’s answer is directly linked to the performance of the companies that make up the stock market. If each company that makes up the stock market is increasing sales, generating greater revenue each year, and actively innovating, then the US stock market will undoubtedly increase in price. On the other hand, if US companies are not (on average) performing well year after year, it is likely that the price of the US stock market (which is usually measure by the S&P 500 Index) will decrease.

Of course, there are a wide variety of international factors that can affect domestic stock market performance as well (such as wars, natural disasters, poor international economic news, etc.), but these only do so by affecting the projected performance of US companies as they are affected by this news.

Conclusion

We hope that this explanation of the stock market has served to improve your understanding of how the market works, as well as given you some insights into what the surrounding terminology means!

The post Making the Stock Market Simple appeared first on Calalpa.

]]>
Five Steps for Buying Stocks http://www.calalpa.org/finance/five-steps-buying-stocks.php Wed, 18 May 2016 15:21:51 +0000 http://www.calalpa.org/?p=55 If you decide that you want to buy stocks, the process doesn’t start by simply entering a ticker symbol and executing the trade. The process actually begins with research. Stock buying step 1: Research an industry Unless you’re day trading or high-frequency trading, you probably want to get a handle on the various industries or […]

The post Five Steps for Buying Stocks appeared first on Calalpa.

]]>
If you decide that you want to buy stocks, the process doesn’t start by simply entering a ticker symbol and executing the trade. The process actually begins with research.

Stock buying step 1: Research an industry

Unless you’re day trading or high-frequency trading, you probably want to get a handle on the various industries or sectors with tradable stocks within them. From retail to manufacturing, media to tech, there are numerous industries that have publicly traded companies within them. The reason you want to research the industry is to get a handle on the trends and buy stocks that you think are value priced now and have the ability to appreciate. This isn’t as likely to happen in an industry that’s depressed with no forecast of improvement.

Stock buying step 2: Research a company

After you’ve narrowed your industry choices down, it’s time to look at the performance of the individual public companies within those industries. There are a number of ways to approach this, and the way that you choose will depend on whether you prefer technical analysis or fundamental analysis, and what kind of trader you are. For example, a value trader might look at the company stock’s earnings and price and analyze the resulting price to earnings (P/E) ratio. If they find that the price is low compared to the company’s earnings, they may decide that the position is undersold, making it a solid buy if it’s in an industry with lots of growth potential.

Stock buying step 3: Read the news

Being a trendspotter is a valuable trait for investors. When you read the news, try to read between the lines and think about how the various stories will effect other industries, products and companies. Analyze this information and think about what it means about the growth potential of various stocks you’re thinking about investing in.

Stock buying step 4: Choose a brokerage

Stocks need to be bought in an account held by a brokerage. There are many different brokerages to choose from. Some are discount brokerages with low commission fees but few bells and whistles while others are high-end firms with lots of opportunity for hand-holding and personal advice. Choose the firm that’s right for you and your personal investing and trading needs and be sure to consider the impact of commissions on the profits you’re trying to gain.

Stock buying tip 5: Choose what and how much to buy

Once you’ve done all your research and chosen a brokerage, it’s time to actually purchase stocks. You will want to make sure you create a well-diversified portfolio with many different industries and types of companies so that if one sector experiences an unexpected drop in business, your entire portfolio won’t crumble. You’ll also need to think about how much risk you want to take on with each individual position, meaning how many shares of each stock to buy.

Buying stocks can open up an entirely new opportunity for asset accumulation, growth and income. However it’s not something that should be taken lightly. Choosing the wrong stocks or making uninformed choices based on spurious tips you’ve read online can take money directly out of your savings and put it in the pocket of another, better-prepared investor. Do your research, find the right brokerage, and trade stocks with confidence.

The post Five Steps for Buying Stocks appeared first on Calalpa.

]]>
7 Tips for Choosing and Buying Stocks http://www.calalpa.org/finance/7-tips-choosing-buying-stocks.php Wed, 18 May 2016 12:56:06 +0000 http://www.calalpa.org/?p=52 The stock market can be confusing for many people. This has been especially true during the last few years since the markets have been so turbulent. There are some general guidelines, however, that can make selecting and trading stocks easier to understand. The following are 7 tips for choosing and buying stocks. 1. Do Your […]

The post 7 Tips for Choosing and Buying Stocks appeared first on Calalpa.

]]>
The stock market can be confusing for many people. This has been especially true during the last few years since the markets have been so turbulent. There are some general guidelines, however, that can make selecting and trading stocks easier to understand. The following are 7 tips for choosing and buying stocks.

1. Do Your Homework

Before jumping in and buying stock it’s important to become as informed as possible regarding current stocks, stock market trends, and how the whole process works. Start out by studying the market indices. This includes the Dow Jones Industrial Averages, the S&P 500, and the Nasdaq.

2. Don’t Buy for the Wrong Reasons

It’s never a good idea to buy a stock simply because a friend or a co-worker recommends it. Even if other people have made money on the stock it may no longer be a good deal a few weeks or even a few days later. If at all possible you should avoid buying or selling during desperate financial situations. This will almost always lead to paying too much or selling at a loss.

3. Develop Your Trading Style

If you’re going to be an online day trader this means you’ll close out every trade by the end of each day. You can also focus on weekly or monthly trading. Day trading means you’ll be required to sit at the computer for several hours at a time. Long term trading normally won’t require as much day to day attention. If you use a broker, find one you feel comfortable with and shares your overall trading philosophy.

4. Determine What a Stock is Actually Worth

This takes some finesse since stock prices fluctuate so easily. There are a few ways, however, to determine if a stock is currently over or undervalued. One is by estimating the future prospects of the company. Another way is to compare the price of the stock to those of other companies that provide similar products and are equal in size.

5. Set a Price Range for Buying the Stock

Once you’ve decided what type of stock you’re interested in buying and what you think the general value is it’s important to determine how much you’re willing to pay for it. Set a general price range for buying the stock. This needs to be balanced against how high you think the stock may go so that you can eventually sell it for a profit.

6. Stage Your Buys and Sells

This basically means don’t buy everything at once or sell everything at once. No matter how tempted you may be, the odds of selling or buying at just the right time to make the maximum profit are dramatically against you. Selling and buying in calculated increments will help you make a profit over time and will reduce your chance of any dramatic losses.

7. Don’t Buy Right When the Market Opens

Prices often pop up right when the market opens and then start fading in a few hours. It’s recommended to buy about an hour after the market opens and about an hour before it closes in the afternoon. Selling is usually best right when the market opens and in the early afternoon, Eastern time.

The post 7 Tips for Choosing and Buying Stocks appeared first on Calalpa.

]]>
Different types of online trading http://www.calalpa.org/finance/different-types-online-trading.php Mon, 02 May 2016 15:10:07 +0000 http://www.calalpa.org/?p=48 Online trading has mostly replaced broker directed trading for the vast number of people due to the convenience, affordability, and better trade execution common with it. Part of the benefit of online trading is the vast access of different online trading investment options, strategies, and markets that it grants to you. This article will highlight […]

The post Different types of online trading appeared first on Calalpa.

]]>
Online trading has mostly replaced broker directed trading for the vast number of people due to the convenience, affordability, and better trade execution common with it. Part of the benefit of online trading is the vast access of different online trading investment options, strategies, and markets that it grants to you. This article will highlight some of these types of online trading.

Investment Options

When you trade online you will gain access to a vast number of different investment options. Stocks and bonds are two of the best known investment options, but there are many others. An online trader can own and trade online in an mutual fund, electronically traded fund (ETF), commodities, options, and master limited partnership, just to name a few. These options allow online traders the ability to truly diversify their holdings into a wide range of different investments.

Investment Strategies

Online trading provides investors with the ability to trade in a wide variety of different investments and to employ a wide number of different strategies while doing so. Online traders can go long or short on various investments, or on the market in total, and can trade unique things with options trading. An example of an option trade that is unique and may not correlate with other trading strategies is betting on the volatility of a stock or index. If a stock does not fluctuate significantly, either up or down, you can set up an investment that bets that this will not happen for a specific time period by writing option spreads on either side of the investment. While this may be an more exotic trade scenario for many people, it goes to show that there are a wide range of different trade strategies that an online trader can implement.

Markets

While people in the United States will commonly think of the New York Stock Exchange as the be all and end all of the stock market it is really only one of a number of different markets where you can trade around the world. As an example, there is the London Stock Exchange and Shanghai Exchange, each of which provides greater access to international markets. Many online trading sites allow online traders to access these international markets.

Summary

Ultimately, online trades are able to gain access to a wide range of different investments, strategies, and markets which were never previously accessible to anyone but the most sophisticated and wealthiest of investors. These expanded choices allow online traders with the ability to exert greater control over their finances in ways that were previously unimaginable.

The post Different types of online trading appeared first on Calalpa.

]]>