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Best Stock Market Tools For Stock Trading


An Overview of the Best Stock Market Tools For Stock Trading

Best Stock Market ToolsThe best stock market tools for stock trading are highly dependent upon a stock trader’s trading frequency.  If a trader occasionally trades stocks, there are a wide variety of free stock market tools that are suitable for infrequent traders.  For more frequent traders, such as swing traders and day traders, fee-based stock trading tools are available that provide more in-depth information about stocks and more control over executing stock traders.  Additionally, a stock trader’s trading style and methods are important considerations when one is looking for the best stock market tools.  For example, traders who focus on position trading may require different trading tools than momentum traders.

The Best Free Stock Market Tools For Stock Trading

Stock Market Tools
The great thing about being an occasional stock trader is that there are plentiful free stock market tools to assist casual stock traders with their trading decisions.  Mainstream financial websites, such as YahooFinance, GoogleFinance, MarketWatch, and Bloomberg provide a great amount of information about individual company stocks, including but not limited to:  current and historical pricing information, charts, news, United States Securities and Exchange Commission (SEC) filings, upcoming company events, analyst ratings, insider buying and selling transactions, and income and balance sheet information.

For traders that want to look at in-depth charts and use advanced charting tools to perform technical analysis on stocks they are considering trading, there are a number of free stock charting tools available to assist them.  Bigcharts.com is an example of a powerful free stock charting tool that is available to stock traders, which allows them to analyze the charts of stocks in many different ways from line charts to candlestick charts.  It also allows traders to compare the chart of a stock versus other stocks or stock market indexes.

For stock research and trading ideas, there are number of free stock market tools at the disposal of casual traders.  For traders interested in trading stocks listed on the New York Stock Exchange (NYSE) and NASDAQ stock exchange, sites such as Seeking Alpha and Silicon Investor offer excellent free articles and forums for keeping up with current stock events and finding stock trading ideas.  These sites also include occasional penny stock trading information and ideas; however, sites that focus mainly on penny stock trading ideas, such as Investors Hub are better suited for traders trying to find penny stock information and trading ideas.  For additional information about penny stocks, the stock quotation platforms that penny stocks trade on, including The Over The Counter Bulletin Board (OTCBB) and Pink Sheets (otcmarkets.com), offer a great amount of free stock market information that can be useful to stock traders.

Many online brokers offer a wide variety of free stock market tools that traders of all frequency levels may find useful, from trading simulators that allow traders to try out new trading techniques and strategies to back-testing tools that allow traders to see how their trading techniques and strategies have performed in a historical context.  Another useful trading tool that many online brokers provide is a stock market heat map that visually indicates which stock sectors are currently hot, so traders know where to look for hot trading action and opportunities.

The Best Fee-Based Stock Market Tools For Stock Trading

If a stock trader trades stocks frequently, fee-based stock market tools may be worth paying for, as they provide additional information and trade execution flexibility that can make the difference between a profit and a loss on a stock trade.  It is important to understand that the best fee-based stock market tools are highly dependent upon a stock trader’s frequency, style, and methods.  A trader that trades once per week may not need nearly as many fee-based stock market tools as an active trader that trades daily or many times in a single trading session.

Many fee-based stock market tools can be obtained through online stock brokerage firms.  This makes the task of choosing the correct online stockbroker very important since the trading tools offered by these firms vary widely and are often tailored to the trading frequency of traders.  For example, a very useful fee-based stock market tool for traders that trade many times each trading day is order routing to ensure that an order is routed to a particular Market Maker or Electronic Communication Networks (ECN) to obtain the best trade execution price.  However, an order routing tool may not be worth paying for if a trader only trades once or twice per week and holds their stock positions for several days, weeks, or months.

One of the most widely used fee-based stock market tools is Level II quotes, which provides real time sales and price data for all Market Makers and Electronic Communications Networks making a market in a stock.  Once again, paying for Level II quotes is more worthwhile for frequent traders verses traders that only trade once or twice per week, as the information provided by Level II quotes can be used to route an order to the correct Market Maker or Electronic Communication Network.

Another widely used and worthwhile fee-based stock market tool for frequent traders is real time stock news alerts provided by sites such as flyonthewall.com.  Information is power in the stock market, as mere seconds can mean the difference between getting into a profitable trade and missing a trading opportunity, which is why real time stock news alert sites are popular with frequent stock traders.

Stock Trading Tools That Every Stock Trader Should Know About

Online Broker Stock Trading Tools
Whether a stock trader trades once per month or once per minute, understanding how to use the various capital preservation and price level purchase trading tools is critical to successful trading.

Online brokers allow traders to enter limit and market stop loss orders that automatically execute if a stock reaches a predetermined price level below the price at which it was purchased to ensure that the stock is sold before incurring significant losses and a potentially having significant impact to trading capital.  Stop loss stock orders can also be used to track a stock as it increases in price to ensure that if it falls, a stock position will be sold and profits will be locked in.  This is known as a trailing stop.

A price level purchase limit order is a stock order that is set above a stock’s current price level or trading range.  With a price level purchase limit order, a stock will be automatically purchased if the stock trades above a specified price.  A price level purchase limit order is used to automatically capture a stock’s upside breakout move before it moves significantly higher to ensure a breakout is not missed.

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Stock Trading – A Brief Overview

Stock Trading

Stock Trading and Taxes

Many investors look upon stock trading as an easy way to grow their wealth, which is certainly true. However, this form of investment, like any other, attracts a certain amount of tax and it is vital you know about these before you begin stock trading.

Tax on Short-term Capital Gains in Stock Trading

Active traders need to pay a tax for all the profits they make out of investing in the stock market. This short-term capital gains tax is calculated on the basis of your profits on the stocks you hold for less than one year. This may not be a huge amount if you rarely trade but if you belong to the top brackets, it is quite likely to be a significant figure.

Tax on Long-term Capital Gains

People who have retained stocks for a minimum of one year and then sold them, need to pay the tax on capital gains derived from long-term trading activities. This is likely to be a lower figure as compared to the short-term capital gains tax and, therefore, many people with experience in stock trading will hold on to their stocks for longer.

Tax on Dividends

People who own stocks for which they receive a dividend need to pay a tax on this income they receive each year. If you have multiple such stocks, the tax will be calculated based on the sum of the dividends you received.

Stock trading may be a breeze once you get the hang of it; however, calculating the taxes you need to pay is not so simple. The price you paid for the stock, profits you earned and the brokerage commissions you spent on are important factors that affect your tax. Unless you provide correct information and pay the right amount of tax, you could invite penalties from the IRS that offset all the profits your stocks generated.

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Stock Trading Generates Big Profits Working from Home

Stock Trading

Investors Use Online Resources for Stock Trading

Amateur investors and people with moderate incomes increasingly choose self-directed stock trading to help them save for retirement, pay for college educations and meet other financial goals. Online trading equalizes investing opportunities for people from all work backgrounds, educational levels and ages. Internet connections allow people to invest full or part-time, work from home and take advantage of unprecedented trading opportunities.

Online stock trading gives investors the ability to make money quickly, buy stocks with minimal commissions and choose their risk level. Although higher risks often generate bigger payoffs, many stable stocks offer steady growth and reliable returns. Free research tools help to find, analyze and track stocks by companies, industries, countries and other criteria.

Studying market sectors provides clues to performance so that stock trading efforts could focus on consistent winners in active subsets. Quotes, charts, corporate intelligence and expert analysis help to lower risks and identify trends that offer better dividends than simple interest generates.

Penny Stock Trading Provides Experience with Minimal Risk

Inexpensive stocks make great investments for beginners, and these penny stocks often trade quickly and deliver exceptional profits. Nervous investors could begin by trying small investments until they develop greater financial knowledge and stock trading savvy. Working with premium suites of investor tools, sound advice and diversified stocks, beginners can earn dividends just like experienced investors.

Screening programs, newsletters, webinars and product coaching liberate investors from the burdens of paying large commissions and management fees, making it easy to invest all over the world from home computers or mobile devices. Modern trading has removed time constraints, minimum investments and broker control. Of course, all stocks carry some degree of risk, but people can limit their losses by choosing only to invest discretionary income that they could afford to lose. Boundaries on how high stock prices might rise have no limits.

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Pharmaceuticals Stock Trading Could Offer Lucrative Opportunities

Stock Trading

Peregrine Difficulties Make Pharmaceuticals Stock Trading Volatile

Stock trading opportunities include medical marijuana companies and pharmaceutical manufacturers that have shown extreme volatility recently. Investors need to monitor stocks very carefully because even small upticks in trading volume could cause prices to soar or plummet. Investments generate risk, but stock prices respond to supply and demand pressures. The greater the demand, the higher the prices rise. Savvy investors make money when stocks plummet or skyrocket.

The secret to successful investing comes from anticipating these changes by researching the market and companies. Currently, volatile stock trading involves pharmaceuticals, pain management, and cancer-treatment technologies. Peregrine Pharmaceuticals’ stock rose dramatically in September due to reports of a successful cancer-treatment drug. However, the company admitted on September 24th that certain study results about the drug bavituximab contained discrepancies, so stock prices plummeted in early trading by over 83 percent.

Questcor Pharmaceuticals’ stock has also declined due to a possible U.S. government investigation involving promotional prices. Fast drops in stock prices offer investors opportunities to buy shares at artificially lower prices. Current stock trading opportunities include competitors of Questcor and Peregrine, which could receive price boosts because of these companies’ troubles.

Stock Trading to Watch Includes Medical Marijuana Companies

Medical marijuana stocks have steadily increased, and bad news for cancer research could prove good news for pain management companies and the medical marijuana industry. Regardless, investors should always study each company carefully before making investment decisions. Volatile markets offer opportunities, but investors must stay attuned to market fluctuations and take advantage of stock bargains. For example, many people predict bankruptcy for Peregrine, but the company has weathered crises before and could well rise from its recent setbacks. People who carefully watch stock trading learn to anticipate trends and leverage profits with astonishing insights.

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The Position Trading Strategy

Position Trading Basics

The Position Trading StrategyFor traders who do not have the stomach or the time to engage in day trading, Position Trading is an attractive alternative that can be a highly profitable way to trade stocks.  Position trading involves positioning oneself in a stock prior to an event to take advantage of an anticipated move in the stock’s price either higher or lower.

Although position trading requires a trader to keep an eye on events affecting a stock and the overall stock market, it does not require constant attention to a stock or the stock market.  Position trading opportunities include a wide variety of stock moving events from new product rollouts to earnings reports.  The key to position trading is to buy into or sell short (if you are anticipating a price drop) a stock position far enough before an event to take advantage of anticipation buying or selling that may start causing the stock’s price to increase or decrease before the expected event.

Setting a target price to exit a position trade is just as important as ensuring that the entry into the trade is made at the right time and price.  Set a realistic target price by using a limit order, so that if the position trade works out as anticipated, you will be able to get out of the trade with a profit without having to keep a constant watch over the stock’s movement.  To preserve position trading capital, it is important to set a stop loss to protect a position trade position from unexpected events that could cause an unanticipated move in the stock’s price.

Position Trading Example

The Apple Computer (AAPL) Annual Worldwide Developers Conference is a good example of how position trading from both the long and short side of a position trade works.  In the days leading up to this widely followed technology conference, Apple’s stock usually makes a noticeable move higher in anticipation of technological announcements being made at the conference that could move the stock higher.  Buying AAPL a few weeks before the conference is usually a profitable position trade, as anticipation buying before the conference causes the price of Apple’s stock to rise.  Conversely, once the conference is over, the price of Apple’s stock often drops if there is no significant news from the conference, as traders and investors exit their positions.  This price drops offers a position trading opportunity to play AAPL from the short side, by shorting AAPL immediately after the conference and covering for a profit after the ensuing selloff.

The stock market offers provides ample opportunities for position trading.  Most of the time required to be successful at position trading involves the time necessary to research stock market news and events for suitable positions trades.

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5 Tips for Trading Stocks Successfully

 Top Tips for Trading Stocks Successfully

Tips for Trading StocksTips for trading stocks are easy to come by, as many investors will happily brag about what brought about their personal success. Typically, however, people will not share their detailed strategies or give you any really helpful information. These provided tips will help you to understand some valuable principles of investing.

Top 3 Tips for Trading Stocks

You can find a lot of useful tools for investing on the internet. The following 3 tips for trading stocks are based on some important financial principles.

•             Set your limits. Setting limit orders on fast-moving stocks rather than market orders will prevent you from buying higher than you wanted to or selling at a price lower than you wanted. For example, you do not want to buy a stock for $20 a share that was previously $7 a share, or sell it for $17 a share when it was selling at $85 a share earlier that day. Setting limit orders provides limits on both buying and selling prices to avoid these situations.

•             Even online trading is not instant. Internet traffic slows the process. A broker might also have limiting hardware. Even if your own computer is speedy, do not expect trades to happen immediately. This also means that you need to ensure that a canceled order goes through before placing another trade.

•             Cash securities must be paid before sold. If you are using a cash account, you must pay for the trade, before you can sell it. Doing otherwise is called free riding, and may cause your account to be frozen for 90 days by your broker.

These tips can help any investor to set guidelines for successful trading in the stock market. These are elementary trading principles that every savvy investor should know. As basic as they are, these tips for trading stocks can make a big difference in cleaning up your trading practices.

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