The Case for Value Stock Investing… What If?

740

Predicting the performance of individual issues is a totally different ball game that requires an even more powerful crystal ball and a whole array of completely illegal relationships. No one can predict individual issue price movements legally, consistently, or in a timely manner.

Value stock, Investing, investor, Wall Street, investment plan, economists, market timing, analysts, investment program, performance, market cycle, Selection watch list

Wall Street Institutions pay billions of dollars annually to convince the investing public that their Economists, Investment Managers, and Analysts can predict future price movements in specific company shares and trends in the overall Stock Market. Such predictions (often presented as “Wethinkisms?or Model Asset Allocation adjustments) make self-deprecating investors everywhere scurry about transacting with each new revelation. “Thou must heed the oracle of Wall Street? not to be confused with the one from Omaha, who really does know something about investing. “These guys know this stuff so much better than we do?is the rationale of the fools in the street, and on the hill (sic).

What if it’s true, and these pinstriped super humans can actually predict the future, why do you transact the way you do in response? Why would financial professionals of every shape and size holler “sell?when prices move lower, and vice versa? Would this pitch work at the mall? Of course not. Now lets bring this phenomenon into focus. Hmmm, not one of these Institutional Gurus ever doubts the basic truth that both the Market Indices and individual issue prices will continue to move up and down, forever. So, if we were to slowly construct a diversified portfolio of value stocks (My short definition: profitable, dividend paying, NYSE companies.) as they fall in price, we would be able to take profits during the following upward cycle?also forever. Hmmm.

Let’s pretend for a (foolish) moment that broad market movements are somewhat predictable. Regardless of the direction, professional advice will always fuel the perceived operative emotion: greed or fear! Wall Street’s retail representatives (stock brokers), and the new, internet expert, self-directors, rarely go against the grain of the consensus opinionÂ…particularly the one projected to them by their immediate superior/spouse. You cannot obtain independent thinking from a Wall Street salesperson; it just doesn’t fill up the Beemer. Sorry, but you have to be able to think for yourself to stay in balance while pedaling on the Market Cycle. Here’s some global advice that you will not hear on the street of dreams (and don’t get all huffy until you understand what to buy or to sell as well as when to do so): Sell into rallies. Buy on bad news. Buy slowly; sell quickly. Always sell too soon. Always buy too soon, incrementally. Always have a plan. A plan without buying guidelines and selling targets is not a plan.

Predicting the performance of individual issues is a totally different ball game that requires an even more powerful crystal ball and a whole array of semi-legal and completely illegal relationships that are mostly self serving and useless to average investors. But, again, let’s pretend that a mega million-dollar salary and industry recognition as a superstar creates Master of the Universe quality prediction capabilitiesÂ…I’m sorry. I just can’t even pretend that it’s true! The evidence against it is just too great, and the dangers of relying on analytical opinions too real. No one can predict individual issue price movements legally, consistently, or in a timely manner. Face up to this: the risk of loss is real; it can be minimized but not eliminated.

Investing in individual issues has to be done differently, with rules, guidelines, and judgment. It has to be done unemotionally and rationally, monitored regularly, and analyzed with performance evaluation tools that are portfolio specific and without calendar time restrictions. This is not nearly as difficult as it sounds, and if you are a “shopper?looking for bargains elsewhere in your life, you should have no trouble understanding how it works. Not a rocket scientist? Good, and if you are at all familiar with the retailing business, even better. You don’t need any special education evidentiary acronyms or software programs for stock market success?just common sense and emotion control.

Wall Street sells products, and spins reality in whatever manner they feel will produce the best results for those products. The direction of the market doesn’t matter to them and it wouldn’t to you either if you had a properly constructed portfolio. If you learn how to deal unemotionally with Wall Street events, and shun the herd mentality, you will find yourself in the proper cyclical mode much more often: buying at lower prices and, as a result, taking profits instead of losses. Just what if?

Coming next: Developing a Value Stock Watch List and Profit Taking Targets.

7 Online Banking Success Stories

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Online banking is here to stay. Let’s look at 7 winners capturing the attention of American consumers.

online banking, ebanks, savings, investments, MetLife Bank, ING Direct, loans, money, certificates of deposit, mutual funds, stocks, retirement funds, mortgages, equity loans, lines of credit

You have seen their ads and you may have wondered if they are worth a second look. What am I talking about? Online banks! Also known as internet banks, these are financial institutions who provide the majority of their banking services over the internet. Typically, online banks offer consumers high savings rates, low loan rates, and a mix of other services. Let’s look at 7 winners in this fast growing field:

1. E Trade Bank Part of E Trade Financial, the discount internet stockbroker. E Trade Bank offers checking accounts, money markets, and certificates of deposits as well as a VISA credit card.

2. Netbank Along with offering checking and money market accounts, Netbank provides mortgage and home equity lines of credit to customers. With tie-ins to affiliated companies Netbank also offers Auto, Homeowners, Condo/Co-op & Renters Insurance and Life, Health, Long Term Care & Dental Insurance.

3. Virtual Bank VirtualBank, a division of Lydian Private Bank, is a federally chartered bank regulated by the Office of Thrift Supervision. The bank offers checking, savings, and credit card services to customers.

4. Ever Bank This leading internet provider of banking services offers the most extensive, and varied services of any online institution. Ever Bank offers business and personal checking accounts, mortgages, home equity loans/lines of credit, reverse mortgages, a VISA credit card, and world currency accounts. This latter category is for investing in Deposit accounts and CDs denominated in any major world currency.

5. Emigrant Direct Part of Emigrant Savings Bank which traces its roots back to 1850 as a service provider to Irish immigrants. Emigrant has $10 billion in assets and more than $1 billion in net worth. It operates as a full service bank through 36 branches in the New York metropolitan area, and through EmigrantDirect.com. Emigrant offers only consumer services online; their high paying savings account is a chief investment vehicle.

6. ING Direct ING is a global financial institution of Dutch origin offering banking, insurance and asset management to over 60 million private, corporate and institutional clients in more than 50 countries. ING offers mortgages, loans/lines of credit, savings accounts, certificates of deposit, and money market mutual funds through another division.

7. MetLife Bank Yes, MetLife. A division of insurance powerhouse Metropolitan Life, MetLife Bank offers savings accounts, certificates of deposit, money market accounts, mortgages, and IRAs to consumers.

If you are banking exclusively with a “brick and mortar” institution you may be missing out on high paying investment options or competitive loan rates that easily undercut many traditional banking entities. These online banking success stories are only part of a growing number of savvy providers, some of whom are definitely worth a closer look by you, the consumer.

Understanding The Stock Market

524

Watching the numbers roll by on the bottom of your screen during a news cast might seem like nonsense to you. Those numbers are very important to many people because they make their fortune with stocks. They steadfastly watch the stock markets wanting to see how their investment is doing.

To understand the stock market you first need to understand what stocks are. Stocks are the capital raised by a company when they sell shares. Shares are offered through the stock market

stocks,finance,stock market

Watching the numbers roll by on the bottom of your screen during a news cast might seem like nonsense to you. Those numbers are very important to many people because they make their fortune with stocks. They steadfastly watch the stock markets wanting to see how their investment is doing.

To understand the stock market you first need to understand what stocks are. Stocks are the capital raised by a company when they sell shares. Shares are offered through the stock market and the money taken in from those becomes the company’s stocks.

There are several major stock exchanges in the world where shares are traded. Company’s stocks are increased and decreased each day.

One of these stock markets is the NASDAQ. NASDAQ stands for National Association of Securities Dealers Automated Quotations. The NASDAQ is a United States based stock market. It’s the world’s first electronic based stock market. It also trades more shares each day than any other stock market which means it has the most impact on stocks.

Another large stock market that is United States based is the Dow Jones Industrial Average. You might hear someone say that the Dow is up or down this is what they are referring to. Many stocks are introduced on the Dow.

Many other countries also have a great impact on stocks. In Europe almost each country has their own stock market this includes Portugal, Germany and Lisbon. The people living and working there follow invest in the stock market there and just like in North America the stocks rise and fall.

The people who handle the buying and trading are called stock brokers. Their job is to sell and trade the shares that their clients request. It’s a demanding and rewarding job being involved directly in stocks this way. Stock brokers can make a lucrative income and the ones that study the markets and understand all the ups and downs have a definite advantage.

For the everyday person to get involved in stocks they need to do a bit of research. It might be wise if a large amount of money is involved to talk to a stock broker. Their job is related to stocks and no one is better qualified to assist you.

Stock brokers are paid on commission and therefore their drive is to invest in shares that will ultimately turn a profit. Often a stock broker has extensive knowledge with just a few stocks and he concentrates on those. If you decide to invest in a share that a certain stock broker is very well versed in, it might be prudent to have him or her handle your dealings. They can offer the best advice as to when to buy and when to sell.

There are other avenues available for people interested in stocks and that’s the online stock trading companies. Many of these companies allow anyone to sign up and buy and trade their own shares. This can be a great way for someone to be introduced to the world of stocks and with some research and practice they can make themselves a profit.

Penny Stocks ?Beyond the Pump and Dump

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Penny Stocks can be a great investment, but you have to know what to look for, or sometimes more accurately, what to look

Penny Stocks, Stocks

Penny Stocks can be a great investment, but you have to know what to look for, or sometimes more accurately, what to look out for. Buying Penny Stocks based on a recent email you received, or what you heard from someone you barely know, is not usually a good idea. Penny Stocks have historically been a source of wealth for many investors, but conversely have been the source of countless lost small fortunes. Determining what is good advice, mixed with all the hype, can sometimes be a very difficult process. You don’t have to be a stock market guru or brilliant investor to make a killing with Penny Stocks, but you do have to be willing to do your homework, and use a great deal of common sense to stay alive when you are swimming with the sharks in what can be dangerous waters.

There are many great small companies in existence today, struggling to stay afloat, that are tomorrow’s rising stars. Without the capital to grow and expand very few of our current generation of conglomerates would be more than a forgotten flash in the pan. Selling shares of a company can inject the needed capital into a niche business that may take it into the next level. However not all, if not most, of these tiny corporations will be around for very long. This creates an interesting situation for us, the investor or speculator. While the company in question may not be worth much today, what might that company be worth tomorrow? Hence the term speculation, which is the lifeblood of any Penny Stock trader.

Unfortunately, within this world there are a few unseemly characters, who seek to part you from your hard earned dollars. And, they will go to nearly whatever means is necessary to achieve their goal. PR firms, or Investor Awareness firms, are sometime hired to promote a small corporation’s stock in hopes of raising the share price. This in itself is not necessarily a sign of ill intent. Many times a small company may be very good at what it does, but for whatever reason finds itself unable to generate enough press interest in their successes to generate buying activity of their stock shares. However, this is occasionally done with the sole purpose of raising prices rapidly in an attempt to make quick profits on a very hollow company, one that has no real market or solid foundation. Hence the phrase, pump and dump. Pump and dump in a nutshell means, exaggeratedly “pumping” up the company in question with the primary intent of “dumping” their shares once the share prices begin to rise.

What can you do to protect yourself from being caught up in a pump and dump scenario? Most importantly you must use your own due diligence to wade through the hype. Ask yourself a few basic questions about the company in question. Are they making money? Are they creating new products? Are these new products going to be valuable in the future? The rules for trading Penny Stocks aren’t much different from those of trading large cap stocks. However, the risks can be much larger, but the rewards can be as well.

If you aren’t willing to do at least a bit of homework, investing in any stock is not a good idea. Never rely entirely on anyone’s advice, especially when dealing with Penny Stocks. But, if you take the time to research your investments, investing in Penny Stocks can be a very financially rewarding experience.

What Happened To My Money?

771

Have you ever found yourself asking this question?

If you have you are not alone. There are thousands of people who find themselves looking at their bank statements or calling their banks and asking this same exact question.

personal finance, home budget, budgeting, personal budget, banking fees

Have you ever found yourself asking this question?

If you have you are not alone. There are thousands of people who find themselves looking at their bank statements or calling their banks and asking this same exact question.

The problem is two fold. By this I mean, as consumers it is our money so it is our duty to keep track of our finances not the banks or anyone else. Most people lack the knowledge to understand that we as consumer should not be calling the bank to ask this question, we should already know the answer.

Let’s discuss this a little deeper…

Why is it that most people don’t keep track of their finances? Some of the top ‘excuses’ I hear are:

1. Lack of time
2. “Forgetfullness”
3. Don’t know!

Lack of Time

Today it is not unheard of for people to complain about not having enough time in a day to do all of things we have to do. Between soccer practice, doctor’s appointments, and helping with homework and all of the other things we have to do in any given day it is no wonder we don’t have the time to do the simple things.

Keeping track of your account is really a simple task if you learn how to do it the right way.

The ironic thing about all of this is that the banks GIVE you the tools you need to effectively manage your accounts. But majority of use fail to even use a fraction of those tools.

For example, most banks offer some sort of online banking option. This option makes it easy for you to monitor your banking transactions from anywhere with an internet connection. You can also perform some basic maintenance task without ever having to call your bank.

What makes this such a great tool is that it is available 24 hours a day. So after you have had a chance to put the kids to bed and settled down you could balance your daily expenses using this helpful tool.

Note:
It is important to note here that any of the tools that the bank put at your disposal are just that… tools! They are not there to keep track of your account for you. That is your job.

Forgetfulness!

Let’s face it with all that is going on in our days how can we remember every single thing that we buy in a day. It is inevitable that we will forget something and that is one of the reasons that we find ourselves scratching our heads and asking the question “What Happend To My Money?”

Creating a system that allows for you to keep on schedule but at the same time keeping accurate records of your daily expenses is crucial.

Depending on your lifestyle you should examine your daily routines and find a way and/or time when you can track what it you spend your money on day in and day out.

Don’t Know

This one comes down to complete and total laziness. It just couldn’t be said any other way.

People get lazy. It is easier to not do it and expect someone else to do it than it is to take an interest in where your money is going every single day.

It goes without saying that being lazy almost always leads to more troubles. By not taking OWNERSHIP of YOUR finances you are leaving it in the hands of strangers.

My dear sweet Grandma used to say “If you want something done right… do it yourself!”

If that ain’t about right!

If you want to change your life financially you have to know where to start making changes. That simply cannot be done if you don’t already know where your money is going now!

Well now that we have covered some of the more common reasons most people don’t keep track of their finances what are some solutions?

1. Hire an accountant
2. Get off your lazy butt and do it.
3. Let things continue the way they are. (Not Recommended)

Take your pick. I suggest option #2.

If you would like to know just how myself and my wife started to keep better track of our finances visit the following link:

Budgeting Basics System

Not only will you learn how track your daily expenditures easily and quickly, but you will also receive additional tools and tips to help create the ultimate budgeting system that will have your bank account growing at an alarming rate.

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Mosiekk Conley is the owner and creator of the Budgeting Basics System that teaches you how to budget in smart and efficient manner. For more information:
Budgeting Basics System
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Seasonal Trading Strategy for Stock Funds and US Federal Employee TSP 401k Retirement Accounts

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Of course we know past performance does not guarantee future results but there is something here that makes this investor think that just maybe there is something more to the story this time.

stocks, funds

“Sell in May and Stay Away?Words to live and invest by? I don’t know who coined the phrase but I did a bit of research and yes this strategy would have worked out for you is you had implemented it over the life of the TSP retirement account. Of course we know past performance does not guarantee future results but there is something here that makes this investor think that just maybe there is something more to the story this time.

There are five funds available in the Thrift Savings Plan.

The C Fund is based on the S&P 500
The F Fund is designed to match the bonds in the Lehman Brothers U.S. Aggregate (LBA) index.
The G Fund invests in short-term U.S. treasuries
The S Fund follows the Wilshire 4500 index
The I Fund follows the EAFE index

From its inception in 1988 through the end of 2005 the C Fund (based on the S&P 500) has averaged 12.61556% per year. In the months October through May it averaged12.87611%. From June through September it averaged -0.26056%. For the same 18 year period, the F Fund averaged 3.356111% for the four months June through September. Had you sold all of your stock C Fund on May 31 and moved all your money into the F Fund and then moved all of your money from the F Fund back to the C Fund on September 30th, you would have realized a 3.616667% per year increase in your rate of return over 18 years. Let me repeat this, a 3.616667% annual increase based on only two trades per year.

From 2001 through 2005 the C Fund (based on the S&P 500) annual average was only 2.22%. Its average gain October through May was 9.24% while it’s June through September average was an appalling 7.02% loss. Utilizing the same strategy as above, our average rate of return would have jumped from an anemic 2.22% to a healthy 11.38%. That is an amazing increase of over 9% based on just two trades per year.

Since its inception in 2001 the S Fund (based on the Wilshire 4500 index) has averaged 9.314% and the I Fund (based on the EAFE index) averaged 6.56%. They show the same pattern of gains October through May, with gains of 14.05% for the S Fund and 10.368% for the I Fund annually during those eight months. They also continue the S Fund pattern of losses Jun through September, a 4.736% loss for the S Fund and 3.808% loss for the I Fund. Using the same strategy of eight months in the S and I funds and four months in the F Funds, you would have realized additional gains of 6.336% for the S Fund and 5.378% for the I fund brining your rate of return to 15.65% for an S+F strategy and 11.938% for an I+F strategy.

What do you think about this? Join the TSPcenter forum and let me know. My gut tells me we are in for a bad summer. Of course that could be a result of the pepperoni pizza I just ate.

Profiting From A Personal Finance Checkup

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Making sure that you’re on the road to financial security can start with a personal finance checkup. A financial checkup allows you to periodically review how you’re doing in light of your finance goals.

Profiting From A Personal Finance Checkup

Making sure that you’re on the road to financial security can start with a personal finance checkup. A financial checkup allows you to periodically review how you’re doing in light of your finance goals.

Taking the following steps can help put you on the course to financial wellness:

• Evaluate your goals. How are you measuring up to the goals you set for yourself? Are you successfully putting money toward saving and investing? Are you saving enough in your 401(k) to get your company match contribution? Where are you falling short and why? Are there changes taking place in your life that will affect these goals, such as a healthy bump in your salary or the birth of a baby? For better or worse, it may be time to adjust your goals.

• Assess your investments. Look at the return on each of your investments and make sure they are rebalanced. Are you satisfied with the performance compared to what the market is doing? Consider getting some advice.

You can also find free investment advice tools online, such as ShareBuilder’s PortfolioBuilder (www.sharebuilder.com). The service provides a customized portfolio based on your budget, investing goals and risk tolerance.

• Set your investments on autopilot. Regular investing is a key to reaching your goals. If you’re serious about a saving and investing strategy, but find it is the last thing on your mind every month, start an automatic investing plan. You don’t need a big lump sum to get the ball rolling. Services such as ShareBuilder have no account minimum and allow you to set up a program and contribute a set amount of money, such as $100 per month, on a regular basis. The money will be automatically transferred from your checking or savings account so it can be invested.

• Just do it. People often hesitate or postpone their investments because they don’t think they have enough to start or it’s just not the right time to invest. In reality, it’s always a good time to start investing. The first step is to develop a long-term saving and investing habit as early as possible. The value of compounding over time is irreplaceable.

Once you get started, it’s a good idea to review your investments at least every six months.

Stock market guide

589

Stock market is an inquisitive place for many. It is because the place has given birth to many millionaires and is also responsible for turning millionaires to locals.

stocks,history,finance,wall

Stock market is an inquisitive place for many. It is because the place has given birth to many millionaires and is also responsible for turning millionaires to locals. Thus the bulls and bears have always been charismatic. Now millions of people invest in the stock market to make good money. The aura of the place is such that it is swarming with people any hour of the day and any season of the year. But only few know that how the stock market came into existence or what actually are its origins.

A short encounter with the past

The oldest stock certificate was issued in favor of a Dutch company in 1606. The purpose of this company was to benefit from the spice trade between India and the Far East. During the 18th and the 19th centuries the trade of spices drifted to England when Napoleon reigned over the place. With the development of United States of America as a colony to British and Alexander Hamilton (the first US secretary of the Treasury) flourished the American Stock Exchange. Hamilton played a crucial role in encouraging the trading in the Wall Street and Broad Street in New York. The New York Stock and Exchange Board now popularly known as the New York Stock Exchange was organized by the traders of New York in 1817 when trade and commerce bloomed there.

A precise survey of the Western stock market

?The Wall Street- a place where the whole of 18th century trade and commerce took place, Wall Street is a recognized place across the globe. The street was termed as Wall Street since it ran alongside a wall that was taken as the northern boundary of New Amsterdam in 17th century.

The Wall Street is known for the J.P. Morgan’s million dollar merger that created US Steel Corporation, the ruinous crisis that resulted in Great Depression and the “Black Monday?of 1987.

?The NYSE or the New York Stock Exchange is perhaps the foremost and so the oldest stock exchange in United States that is believed to be born in 1792. The significant aspects related to NYSE include the Buttonwood Agreement when 24 stockbrokers and traders of New York signed this accord and established the New York Stock Exchange and Securities Board which is now recognized as the NYSE; the considerable swings that the NYSE saw during the 20th and 21st century; the hitting of the 100 and later even 1000 mark by the Dow around 1971 and the mark of 10,000 that the Dow scaled in 1999.

?NASDAQ is the National Association of Securities Dealers Automated Questions. It is an apparent or virtual stock market where all trading is done through the electronic media. NASDAQ, the global and the largest electronic stock market today was first established in 1971 in United States at the time when computers were not as developed as they are today and it was very difficult to compute. The main exchange of NASDAQ is in United Sates while its branches can be found in Canada and Japan and it is also linked to markets of Hong Kong and Europe. NASDAQ functions by purchasing and selling the over- the- counter or OTC stocks.

?AMEX-was discovered in 1842. The putative father of the institution is Edward Mc Cormick (the commissioner of SEC) who endowed it with its current name. It started its journey as the New York Curb Exchange and its name is factual. The AMEX in contrast to the NYSE operates with the small and more dynamic companies some of which even make it to the NYSE board.

Why Learn to Trade Stocks?

411

Stock trading has many benefits as a part time occupation. Compared to another job, there are no special qualifications to start. If you follow a few simple rules you can run your business as you want.

stock trading,stock investing,work from home

Stock trading has numerous benefits as a viable part time occupation.

In contrast to a second job, there are no special qualifications to begin. The stock market doesn’t care about your level of success, education, ethnic origin or any personal characteristics. Complex employers, office politics or difficult employees do not play a part in trading. Additionally you have the freedom to trade from any location. If you follow a few simple rules you can run your business on your own terms.

The most important factor is to be clear about why you want to trade stocks. What do you hope to gain financially from learning to trade?

Are you looking to:

1. Create an enhanced lifestyle with supplemental income?

2. Replace a full time income with a passive income stream?

3. Become independently wealthy by creating a financial base independent of other income sources?

What would being a successful trader mean you? Imagine yourself making successful trades and gaining financially. Think about what it would feel like to have extra money in your bank account and to achieve your targets. With a clear picture of what you want and how that would feel you will be able to remain focused and motivated.

Your first task.

Your first task is to put one primary goal for your trading plan in writing. Additional goals you set can then support your primary plan.

Know Yourself

As well as learning to trade stocks it is essential that you understand yow you react under stress. Being aware of your own behaviour patterns and common causes of and reactions to stress when trading will help you to master stock trading.

The reason that many people lose money in the stock market is because they lack the proper knowledge base. Independent of trading styles there is one thing common to all successful traders; the use of a tested and proven system.

In learing to trade you must be willing to let go of pre-formulated ideas and start fresh, develop new successful habits, and the discipline necessary to trade successfully over time.

Are you willing to do this?

Successful stock market trading eludes many people because they don’t have contact with an experienced, successful trader or trading system that actually works. Going it alone can be potentially expensive when learning by trial and error. Investing in a solid education and taking advantage of the insights and experience of successful trader makes a lot of sense when learning to trade successfully.

Understanding The Stock Market

524

Watching the numbers roll by on the bottom of your screen during a news cast might seem like nonsense to you. Those numbers are very important to many people because they make their fortune with stocks. They steadfastly watch the stock markets wanting to see how their investment is doing.

To understand the stock market you first need to understand what stocks are. Stocks are the capital raised by a company when they sell shares. Shares are offered through the stock market

stocks,finance,stock market

Watching the numbers roll by on the bottom of your screen during a news cast might seem like nonsense to you. Those numbers are very important to many people because they make their fortune with stocks. They steadfastly watch the stock markets wanting to see how their investment is doing.

To understand the stock market you first need to understand what stocks are. Stocks are the capital raised by a company when they sell shares. Shares are offered through the stock market and the money taken in from those becomes the company’s stocks.

There are several major stock exchanges in the world where shares are traded. Company’s stocks are increased and decreased each day.

One of these stock markets is the NASDAQ. NASDAQ stands for National Association of Securities Dealers Automated Quotations. The NASDAQ is a United States based stock market. It’s the world’s first electronic based stock market. It also trades more shares each day than any other stock market which means it has the most impact on stocks.

Another large stock market that is United States based is the Dow Jones Industrial Average. You might hear someone say that the Dow is up or down this is what they are referring to. Many stocks are introduced on the Dow.

Many other countries also have a great impact on stocks. In Europe almost each country has their own stock market this includes Portugal, Germany and Lisbon. The people living and working there follow invest in the stock market there and just like in North America the stocks rise and fall.

The people who handle the buying and trading are called stock brokers. Their job is to sell and trade the shares that their clients request. It’s a demanding and rewarding job being involved directly in stocks this way. Stock brokers can make a lucrative income and the ones that study the markets and understand all the ups and downs have a definite advantage.

For the everyday person to get involved in stocks they need to do a bit of research. It might be wise if a large amount of money is involved to talk to a stock broker. Their job is related to stocks and no one is better qualified to assist you.

Stock brokers are paid on commission and therefore their drive is to invest in shares that will ultimately turn a profit. Often a stock broker has extensive knowledge with just a few stocks and he concentrates on those. If you decide to invest in a share that a certain stock broker is very well versed in, it might be prudent to have him or her handle your dealings. They can offer the best advice as to when to buy and when to sell.

There are other avenues available for people interested in stocks and that’s the online stock trading companies. Many of these companies allow anyone to sign up and buy and trade their own shares. This can be a great way for someone to be introduced to the world of stocks and with some research and practice they can make themselves a profit.