Stock Market Basics

last updated 13 May 2015

Diversify Your Investment

Diversify Your Investment
An investor who places all his funds in a single stock is naturally more at risk than one who spreads his investment cash between several stocks. As the old saying goes, all ones eggs should not be placed in a single basket. Company fortunes fluctuate, not only with the economy, but also with performance of management and sales staff, reception of ...
What Causes Stock Prices To Change?

What Causes Stock Prices To Change?
Stock Prices change every day from market forces present in the world. Share prices fluctuate because of supply and demand. If there are more people interested in buying a stock than selling, the price will move up. If there are more people wanting to sell a stock than buy, the stock price will go down. That is the main cause of price movements up ...
How to Value a Share Price

How to Value a Share Price
A share price value can be determined in several ways. The share value is the price of one share of stock. The buyer of the stock is the shareholder, after the sales transaction is completed. The company, that presented the stock certificate for sale, is called the issuer. A company can issue share certificates in several ways. Usually, the corpora...
Stop reading. Start Paper Trading

Stop reading. Start Paper Trading
For some reason, the general perception of trading, is that it's a fun, fast paced, excitement filled skill of the few. To the uninitiated, they do not usually associate it with work. Trading actually is a precise and unfortunately boring activity. For the few who manage to master the basics and earn a living, the rewards are fantastic. These cleve...
Dangerous Mistakes of Beginner Investors

Dangerous Mistakes of Beginner Investors
The past couple of decades have seen a rise in the number of discount brokers online. Now days, anyone with access to the internet, and some money in their bank account can start trading stocks. This has enabled many people to invest in stocks who couldn’t have before, before the days of the internet. This has encouraged people to invest in stocks ...
Why you should NOT download historical data from yahoo finance

Why you should NOT download historical data from yahoo finance
Today I will be looking at historical data from yahoo finance, and why you should not download from yahoo. For comparison, I went and downloaded historical data from yahoo finance for IBM. The screen shot of the data is below.I also downloaded IBM data from the daily download page in Metastock format. The screen show of this is also shown below. Le...
Trading is a Small Business

Trading is a Small Business
The common knowledge is that most small businesses fail. They fail rapidly, and fail spectacularly. Trading is also a small business. The knowledge that most new traders do not survive the year is not a comforting fact. Many innocent people are lured by the seduction of the market. The majority of people who enter start trading have been successful...
Three Steps to Outperform the Stock Market

Three Steps to Outperform the Stock Market
Every year people come to the market thinking that they will strike it rich quick, yet statistics show that most new traders fail. The fortunate ones that do make it come from diverse backgrounds and seem to have nothing in common on the surface, so how do they outperform the stock market? People in general look to make things complicated, but the ...
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