A Guide To Stocks Investment
A Guide To Stocks Investment
Free Online Articles Directory
Why Submit Articles?
Top Authors
Top Articles
FAQ
ABAnswers
0 && $.browser.msie ) {
var ie_version = parseInt($.browser.version);
if(ie_version Login
Register
Hello
My Home
Sign Out
Email
Password
Remember me?
Lost Password?
Home Page > Finance > Investing > A Guide To Stocks Investment
A Guide To Stocks Investment
Posted: Nov 06, 2010 |Comments: 0
|
]]>
There are two major types of investments done in the stock-trading arena these days –short-term investments and long-term investments. If you find yourself overwhelmed and confused in choosing which type would be best, simply take note of the differences between these two varieties and consider the advantages and disadvantages of each to be guided in making the right decisions.
Basically, the major difference between the two investments is the fact that short-term plans are actually designed to show a substantial yield in a short time period. While long-term investments, on the other hand, are designed to last for quite a few years and present a slow yet progressive increase in its yield.
Let us discover more about the differences when it comes to the disadvantages and advantages of each type of investment.
Short-Term Investments
The major advantages of investing for a short-term plan are the potentials for growth at a very fast period of time, ranging from a few weeks to a few months. Although there may be fluctuating trends that could affect the market, short-term loans can still allow you more control over your money and you it is more likely that you can keep a more watchful eye on your investment.
However, this type of investment may be a bit riskier due to the fluctuations present in such a volatile stock market, as mentioned above. As compared to its long-term counterpart, this type of investment may much easily be affected by unpredictable circumstances because it is in a shorter period of time. And so, even if there is a very huge chance that you can make a lot of money in this type of investment, there are also great chances that you can lose a lot.
Long-Term Investments
For long-term investment plans on the other hand, there is a greater ability for this type of investment to gain small and distributed profits over a longer time frame. And because it has a slow-but-steady pace, it becomes more stable and involves fewer risks.
But of course, a disadvantage for the slow growth of your investments may indicate that you cannot expect to earn profit right away especially when you are badly in need of money. In addition, you may also have less control over your money because your investment would not mature right away.
Also take note that because investments may require a lot of fees to be paid as it progresses and due to occurring fluctuations in the market, most long-term investments may experience down time before they can actually climb up and become productive.
In choosing between these two major types of investments, the most important thing you have to consider in order to gauge which plan would become more beneficial to you is to contemplate on your reasons for investing.
If you invested in stocks with the ultimate goal to earn money fast then surely a short-term plan would suit you. But on the other hand, if you want to invest for future and insurance purposes like in cases wherein you want to have money when you grow old, then a long-term plan for investing is best.
Whatever your decision may be, always remember that there are advantages and disadvantage in all kinds of investments. And ultimately, to become successful in your endeavor, you must be willing to take on minimal risks and make smart decisions in order to manage your trades.
In the stock trading industry, many people have garnered a lot of money from futures markets. It is only in this arena where people who have limited capitals can actually make substantial profits even in a short period of time. But because like any other market, this involves a lot of risks and may cost you significant losses, people may often fear to get involved.
Despite its bad reputation however, many experts would claim that futures trading could only be as risky as you want to make it. And if you take on good strategies and give yourself the proper exposure, then this can make you very rich.
What Are Futures?
Futures are standardized and transferable contracts that require a buyer to purchase a stock at a specific sum and within a certain time period in the future. This contract gives the buyer the obligation of purchase, and the seller the obligation to deliver the specific asset traded. Unlike options, futures contracts obligate the traders to buy and sell instead of just merely giving them the right. People basically profit from futures by performing speculations in order to provide liquidity and to assume risks for price fluctuations in the market. These valuable functions provide them with substantial returns and potentially large gains. But take note that along with these, substantial risks are involved as well.
How And Why Are Futures Traded?
Trading futures has become quite popular in many markets, especially in day trading. These kinds of trades offer a wide variety of markets and it can be traded at a low cost. Futures can be traded in both up and down markets. If a particular trader expects the market to go up, a long trade is usually done wherein the trader buys a contract and then sells it. On the contrary, if a trader believes that the market will go down, and then he will most probably make a short trade by entering a trade through selling a contract and then exiting by buying another contract. With this system, traders are able to profit regardless of what direction the market trends are going.
This is the main reason why most traders are only concerned if the market is moving at all, instead of which direction it is actually going. In futures trading, instead of taking or making deliveries, a trader merely speculates his position in the market’s volatility by predicting directions of trends. If prices move in the right direction, then the trader would be able to profit. If this does not happen, then a trader would experience some losses. This particular arena in trading can be very promising, but it involves so many risks as well. But if you are well experienced in trading stocks and have adopted quite an understanding in the different trends, behaviors and strategies that the industry has to offer, then chances are, you may probably do well in this particular playing field.
All of this may sound pretty easy at the moment, but if you are planning to engage in futures trading, make sure that you do your research and prepare yourself with the necessary knowledge and skills to successfully execute transactions. Along with huge profits possible, there are a lot of risks involved and trading futures without the right background can be very detrimental.
Retrieved from “http://www.articlesbase.com/investing-articles/a-guide-to-stocks-investment-3619920.html”
(ArticlesBase SC #3619920)
Need more traffic? No problem. Publish with us and see why everyone’s talking about Articlesbase.com
Liked this article? Click here to publish it on your website or blog, it’s free and easy!
Maxwell Praise -
About the Author:
Maxwell Praise is a web developer, internet market and webpreneur with over 8 years experience in Home/Internet Business. He is committed to helping people build a profitable and successful home/internet business. He is also the CEO of http://www.homebusinessguru.co.cc
]]>
Questions and Answers
Ask our experts your Investing related questions here…
200 Characters left
Why the people always fall to the trap of Free Stock Tips given by their stock brokers and finish mostly with an loss in their investment?
Since a week i am in loss of 200 – 800 per day on intraday. can u guide me which stock to buy and when to sell
What are the best stocks to invest in right now ?
Rate this Article
vote(s)
0 vote(s)
Feedback
RSS
Print
Email
Re-Publish
Source: http://www.articlesbase.com/investing-articles/a-guide-to-stocks-investment-3619920.html
Article Tags:
trading, investment, money market, stocks trading, stocks market, trading futures
Latest Investing Articles
More from Maxwell Praise
A real trader gives insight on what it takes to become a successful trader in this video from Lightspeed Trading’s Trader Talk Series. (02:08)
This video by TV360 offers you expert advice on stock options and what they mean. (00:59)
This video from Lightspeed Trading’s Trader Talk Series covers the “relationship” with stocks…when to try a new stock and when to let them go. A sucessful trader talks about what to look for and how to evaluate stocks. (03:23)
Here is a video from Lightspeed Trading’s Trader Talk Series. A successful trader describes his typical day, what stocks to look for and how to play against volume. (02:51)
The trader in the video from Lightspeed Trading’s Trader Talk Series talks about which sources he uses and what he looks for when researching stocks. (02:50)
Principal Investment to Make Money from Australia’s Stock Market
Australia’s stock market has many opportunities to offer. To make money from trading stock, you have to learn principal guidelines for your investment. Learn how you can make money from stock market.
By:
Andrew Helyl
Financel
Feb 24, 2011
It’S Totally Unsexy But Investing Money While In College Will Make You Sexy
College isn’t about parties, drinking and education. It’s about making money so you can leave a far wealthier graduate. Here are some tips.
By:
J Robinsonl
Finance>
Personal Financel
Mar 06, 2009
swing trading, investing tips, and investing journal
Swing trading is a popular method of capitalizing on the short-term price variations of the stock market. It has earned a reputation of being a powerful method of maximizing profits at lower risks. The best swing trading strategy involves choosing the right stock and the right market.
By:
Bruce Jackl
Finance>
Investingl
Mar 21, 2009
lViews: 327
investing tips, swing trading, investing journal
my $10000 dollars site provide information on swing trading, investing tips and investing journal. Learn original trading strategies, ideas, and concepts on oil etf, energy etf, investing the stock market, investing commodities.
By:
bruce jackl
Business>
Strategic Planningl
Apr 14, 2009
lViews: 150
make money with swing trading, investing tips and investing journal
Swing trading systems capitalize on the oscillations experienced in the stock prices. In this style of trading, the returns on a stock can be gained in few days. Traders employing this style can leverage on the short term stock movements without fearing any stiff competition from the big players in the market.
By:
Bruce Jackl
Finance>
Investingl
Apr 07, 2009
How to Invest Money in the Stock Market – A Basic Investment Guide
When you want to know how to invest money in the stock market you need to learn the stock market basics. It’s best to open a brokerage account ahead of time and learn how to place the order long before you begin to think of your stock portfolio. Knowing how…
By:
Scott Martinl
Financel
Nov 01, 2008
lViews: 653
Online Stock Trading Investing Day Trading
In the current financial crisis people are getting more and more concerned with their investments. For years all investment advisors kept telling us: ‘Just buy stocks for the long-term and you’ll be fine’ – ‘Stocks and real estate always goes up in the long run’. The investment environment has changed. No longer do investors have the trust needed to throw money at a company that they think ‘has a great story’ or that maybe in 3 years might be profitable.
By:
Wallyl
Finance>
Day Tradingl
Oct 20, 2009
Penny Stock Prophet – Stock Picking Robot Review
A number of shares programs on the market analytically there today, the process real-time market data and deliver what they claim, has to to earn his money profitably, chooses to that you not to do to do something about the adoption of the craft as they come to you.
By:
jsieiwl
Finance>
Day Tradingl
Jan 23, 2010
Tips for successful private placement trading
Maximize the amount of investment with private placement programs. You can get good returns with private placement trading including private placement programs.
By:
Get Leads Fastl
Finance>
Investingl
Mar 02, 2011
Depending on which binary options investments that you want to take on, you have a choice of stocks, forex, indices and commodities.
Finance>
Investingl
Mar 02, 2011
Share Market Knowledge, The NSE Of India, And BSE Of India
Interested to invest in the equity shares? If you have the interest you should also develop the passion for learning. The more knowledgeable you are the more informed will be your trading decisions. When there is a wealth of information available online, you need not worry about gaining of knowledge.
By:
Nirmal Kumarl
Finance>
Investingl
Mar 02, 2011
Market Analysis, online Stock Trading And The Live Stock Market
How do you determine the profitability of a stock in India in the long run? This means considering the profitability of the company associated. Analysis of the market is a must. Identifying the position of the company the stock of which you are going to invest, with regards to its sustainability then becomes easy.
By:
Nirmal Kumarl
Finance>
Investingl
Mar 02, 2011
The American Eagle Bullion program was started in 1986. When it began it consisted of gold bullion coins and silver bullion coins, although platinum bullion coins were added in 1997.
By:
andreajohnl
Finance>
Investingl
Mar 02, 2011
Understanding Different Kinds of Stocks
There are many different kinds of stocks in the stock market. Learn how To tell them apart
By:
Alex Beckerl
Finance>
Investingl
Mar 01, 2011
Penny stocks are stocks that can be traded in the stock market at a very cheap price. The investor who decides to buy penny stocks should have a substantial intellect of the market and should be bequeathing to possibly suffer a loss in money.
By:
Rich Smithl
Finance>
Investingl
Mar 01, 2011
Agricultural Commodity Prices Find Support
Sara Nunnally explores the difficult investing world of commodities specifically agriculture.
By:
Sara Nunnallyl
Finance>
Investingl
Mar 01, 2011
If you are one of the many people who want to alleviate your stress, you can learn some simple techniques to help you get out of the vicious cycle of leading a stressful life. Your stressful life does not just affect you, but everyone around you. It affects your relationships as well as any children or co-workers. Most of all, it can actually make you physically ill.
By:
Maxwell Praisel
Health>
Mental Healthl
Nov 05, 2010
Where to Get the Best Hip Hop/Rap Beats Online
Need instrumentals? What if I told you about a website where you could download unlimited amounts of the hottest hip hop and R&B beats and instrumentals just for being a member? What if I told you that at this same website, members get to download and use blazing hot production sounds and access the best record labels and managers? You probably would want to sign up right? Well it’s actually happening at one website.
By:
Maxwell Praisel
Arts & Entertainment>
Musicl
Nov 02, 2010
Add new Comment
Your Name: *
Your Email:
Comment Body: *
Verification code:*
* Required fields
Submit
Your Articles Here
It’s Free and easy
Sign Up Today
Author Navigation
My Home
Publish Article
View/Edit Articles
View/Edit Q&A
Edit your Account
Manage Authors
Statistics Page
Personal RSS Builder
My Home
Edit your Account
Update Profile
View/Edit Q&A
Publish Article
Author Box
Maxwell Praise has 3 articles online
Articles Categories
All Categories
Advertising
Arts & Entertainment
Automotive
Beauty
Business
Careers
Computers
Education
Finance
Food and Beverage
Health
Hobbies
Home and Family
Home Improvement
Internet
Law
Marketing
News and Society
Relationships
Self Improvement
Shopping
Spirituality
Sports and Fitness
Technology
Travel
Writing
Accounting
Banking
Credit
Currency Trading
Day Trading
Debt Consolidation
Insurance
Investing
Loans
Mortgage
Personal Finance
Real Estate
Taxes
Wealth Building
]]>
Need Help?
Contact Us
FAQ
Submit Articles
Editorial Guidelines
Blog
Site Links
Recent Articles
Top Authors
Top Articles
Find Articles
Site Map
Mobile Version
Webmasters
RSS Builder
RSS
Link to Us
Business Info
Advertising
Use of this web site constitutes acceptance of the Terms Of Use and Privacy Policy | User published content is licensed under a Creative Commons License.
Copyright © 2005-2011 Free Articles by ArticlesBase.com, All rights reserved.
Maxwell Praise is a web developer, internet market and webpreneur with over 8 years experience in Home/Internet Business. He is committed to helping people build a profitable and successful home/internet business. He is also the CEO of http://www.homebusinessguru.co.cc