In case you want to be a smart investor in stocks one of the foremost things that you will have to learn is to gain knowledge in reading stocks. Reading stock not only involves knowing the price of the stock on a particular day but also knowing about the past and current trends of the stock in question. You can have a look at stock prices from different sources such as online stock sites, online business and news sites, business newspapers, etc. The best sources for reading stocks are online sites like Yahoo Finance as the prices of stocks get updated almost immediately.
You can also start reading sticks by following the tickers on news channels and stock sites. A ticker is an abbreviation for a stock and it is displayed in three or four letters. For example the stock of Microsoft Corporation is represented as MSFT. You can quickly find the company’s stock price and hence it will become necessary for you to at least memorize the tickers for stocks that you are dealing in.
You should also get access and learn how to read real time stock charts on business sites such as Yahoo Finance. The stock charts are in the form of graphs such as bar diagrams and line graphs that show the decrease or increase in stock prices over a period of time. Hence you can quickly come to know the trend of the stock prices. The most important question to be considered here is how to limit your data reading to what you think is important and profitable to you.
One good tip would be to sort about 75-100 stocks in descending of their prices and then check the percentage of increase or decrease of prices in these stocks. That way you will be able to decide which stocks you can buy depending on stocks that you will let you earn good margins.
Ads mentioned before you can have a look at charts that depict the overall movement of stock prices over a period of time. In the chart you will see different columns such as company name, high and lows, etc. The first two columns are usually the highest and the lowest prices at which the stock has been in the marker for the last one year. The previous day’s trading is normally excluded in these columns. The third column contains the name of the company issuing the stock. The fourth column contains the ticker symbol just like the ticker strip that moves at the bottom of the screen in stock news channels.
The fifth column shows the annual payment of dividend per share and the sixth column shows the percentage return on dividend. The seventh column shows the price to earning ratio which is calculate by dividing the present stock price by the earnings per share in the last four quarters. The eight column shows the total trading volume in a day while the ninth and the tenth columns the price range at which the stock has traded during different parts of the day. The eleventh column indicates the price at which the stock closed for the day.
Quick Stock Tip #1- What Is The BEST Investment Vehicle?
There are many investment vehicles you can use to achieve your financial goals such as Fixed Deposit, Treasury Bills, Gold, Bonds and Stocks. Based on historical data for the last 60 years, STOCKS have been deemed to be the best investment to put your money in. They have achieved a compounded rate of return of over 12.39% in the US market alone. At that rate, your money would double every 5.96 years! |
Quick Stock Tip #2- Who Is The Best Stock Investor?
The best way to learn how to invest in stocks is to learn from the BEST. The world's most successful investor is Warren Buffet. He has consistently achieve 24.7% annual returns on his stocks investments. That simply means that his money doubles every 3.4 years! |
Quick Stock Tip #3- Why Warren Buffet Will Not Buy A New Car?
Warren Buffet always thinks of expenses as a loss of future dollars. A car that costs $20,000 will be worth little in ten years. However, the same $20,000 that is invested at 24.7% annual compounding rate in Warren Buffet's stocks would be worth $158,518 in ten years. In thirty years, it would be worth $9,958,257- that to Warren is simply too much money to throw away on a new car! |
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