Have you ever wondered what exactly is going on in the trading pits after you have sent to purchasing shares an order? You've undoubtedly seen online market quotations or even in the newspaper. Have you noticed that there are always two sets of prices given? What do these mean and where my order will get filled? Let's talk about the basics of the two prices you see.
Let's say you are trading stocks. The first prize (usually the one on the left) is a "bid". This is the price at which the market is offering to buy the shares. If you sell your stock on the market, this is the price you get. The second prize (usually on the right) is the "demand". This is the price at which the market will sell the stock. If you have an open to buy in the market to submit shares will get them for the asking price. Another element that comes into play sometimes the size of the bid and ask. Usually there is an order size that comes with the bid and ask. If this size is exceeded then the price will usually change - and, in general, will move slightly against you because you are creating a demand for that file small price change.
The difference between the bid price and the ask price is the "spread". If you look at the distribution of a large cap stocks that deals with one million shares per day, and compare that with a small cap stocks acting alone thousand shares per day, you can see see a big difference. Shares are more liquid (or more activity) will have much smaller spreads than those with less activity. Thus, you will get a more liquid. Better filling (or deal) for a stock market order A tool that you can use to possibly improve your price is to use. Limit orders If you want to buy more than $ 12 and the bid is $ 11.50 and the ask is $ 12.50, XYZ, you can place an order with a limit of $ 12. This means that the order is not completed, unless you can get it for $ 12 or better.
A word of caution with limit orders is that the market could walk away without you using a purchase order. And if your order is filled, you are buying the shares of a relapse, which means it could make a major step down. As a general rule, it is not a good idea to use in the sale of shares and the market could make without ever hitting your limit price and you would be stuck with a big loss. A great move against you limit orders
Chuck Cox is a technical writer and Industrial Scientist by professional with a background in statistics. He used mathematical and statistical methods to invest and trade in the stock, futures and options markets. Chuck has several companies owned and currently operates several websites. To investigate, visit his website, Stock Trading Reviews a new stock trading idea
Sunday 30 March 2014
Saturday 15 March 2014
Diversify
The best way to avoid severely affected by a stock market crash or another Enron / Worldcom fiasco is to ensure that you do not put all your eggs in one basket. Diversification helps to ensure steady growth of your net worth as you accumulate more power.
This idea is not limited to the stocks in your portfolio, but should include all of the components that are part of your net worth. For example, it is OK to take $ 5,000 and put it in a stock you want, as long as you have enough equity in other areas, such as home or property value, mutual funds, savings, etc. ..
However, if you are still in the early stages of building wealth, and you only have $ 500 in savings, and you rent an apartment and lease your car, you probably do not want to put in a stock. To $ 5,000 A good guideline is to keep from having more than 20% of your net worth in a particular asset, unless it is your home.
Here is a good example of a diversified portfolio wealthy for someone in their 30's:
Payment: $ 2,000
Emergency savings: $ 5,000
Regular savings: $ 3,000
CDs or T-Bills: $ 5,000
Growth stocks: $ 5,000
Net value of vehicles: $ 7,500
401 (k) plan: $ 15,000
Equity in house: $ 20,000
Other tangible net assets: $ 10,000
Of course, the amounts more or less, depending on your age and situation in life.
Also, do not forget to protect a number of long-term disability and / or life insurance, even when you're young. Your net worth Following these simple guidelines will hopefully help to achieve a decent age. Your retirement goals
Scott is in his mid-thirties and has a Bachelor's Degree in Accounting, with a minor in Decision Science. He entered the accounting field ten years ago when he started working for a software company, where he stayed for seven years. He is now the Inventory Control Manager for a large winery, and maintains his own blog on financial
This idea is not limited to the stocks in your portfolio, but should include all of the components that are part of your net worth. For example, it is OK to take $ 5,000 and put it in a stock you want, as long as you have enough equity in other areas, such as home or property value, mutual funds, savings, etc. ..
However, if you are still in the early stages of building wealth, and you only have $ 500 in savings, and you rent an apartment and lease your car, you probably do not want to put in a stock. To $ 5,000 A good guideline is to keep from having more than 20% of your net worth in a particular asset, unless it is your home.
Here is a good example of a diversified portfolio wealthy for someone in their 30's:
Payment: $ 2,000
Emergency savings: $ 5,000
Regular savings: $ 3,000
CDs or T-Bills: $ 5,000
Growth stocks: $ 5,000
Net value of vehicles: $ 7,500
401 (k) plan: $ 15,000
Equity in house: $ 20,000
Other tangible net assets: $ 10,000
Of course, the amounts more or less, depending on your age and situation in life.
Also, do not forget to protect a number of long-term disability and / or life insurance, even when you're young. Your net worth Following these simple guidelines will hopefully help to achieve a decent age. Your retirement goals
Scott is in his mid-thirties and has a Bachelor's Degree in Accounting, with a minor in Decision Science. He entered the accounting field ten years ago when he started working for a software company, where he stayed for seven years. He is now the Inventory Control Manager for a large winery, and maintains his own blog on financial
Saturday 1 March 2014
My Way Or The Highway: Give Your Financial Professionals A Good Talking To!
All this talk about Investing is encouraging lately. In recent years, more people have become interested in the duty to invest money, than ever there. However, when you follow most investment offers to their logical conclusion, they are disgusting pointless.
Yet, many people take these "offers" anyway. Why?
As I said in the opening remarks. We are really not interested in investing, the compounding we want. The composition of our seed capital over a certain amount of time that produces results for us. When most people refer to investing, they really mean compounding their money.
The government approved investment advisors and other financial instruments paper hawkers offer 7% compounding wherever you go. Do not tell anyone we dont live for 200 years? That's how long it would take to see all reasonably attractive return. Even then, in 200 years, inflation would eat half of the profits. Why so much pleasure with this performance?
Maybe a lack of choice. But I think we have just swallowed the rule "the higher the reward, the higher the risk" Therefore, the logic goes, to settle for a very small 7% compounder, and my money will be safe. (Whether or not, is a matter of the Gods)
It's just not so. Many low-yielding investments are highly risky.
Want to know what they really mean by that statement? "The more in control of your own investments you are, the higher the reward and the higher the risk TO US-our work, our profit" (the investment advisors jobs, investment advisers profits)
CONTROL is the financial key to a rapid growth of assets ... compounding. It's just so confusing to most people. They see the polished brochures, and marble floor offices, and the pristinely manicured secretaries, and believe that these guys must be good. Yes, they are good, they are good in business for themselves. So we work very hard in our jobs / small businesses, trying to aggregate together to hand over to them. Several funds
Well, those of us who refuse to professional investors anyway.
YOUR control of your money
The absolute truth. Completely unbiased, pristine, honest sacred, highest accuracy truth is that you are 100 times better than what is on offer can do. It is possible, it happens and you can also happen.
Risk is a doable factor, which can be denied to almost zero.
"Low returns and risks in relation to the exact degree we relinquish control of our assets to another". (I hope you know that last statement, hear his key phrase on this page.)
The further we get from the composite control of our assets (money), the higher the risk, the lower the return ..... guaranteed.
If you could compound at a rate of ten times, (or 1.000%) for 48 months, starting with only $ 1,000 money would 10 million dollars in four years. (Try it yourself, just a calculator and multiply $ 1,000 by ten, then multiply the result by ten to four times.)
At 7% over 48 months, you would end up with the total of $ 1,310.79 (Try it yourself, but instead of ten, multiply by 1.07 representing 7%)
It's a big difference is not it?
What is necessary to multiply by 10 per year, consistently your money? Or even 5 for that matter would be very acceptable 3 times? Yes, yes, and yes. They are possible and available to you.
If control is the key, how can we physically make concrete these results? If it is not in the "closed shop" of the worlds stock markets, where?
Are all around you. Spare value is everywhere, waiting to be scooped and resold for a profit. At every price imaginable. You can start with $ 20 or you can start with $ 20,000 your account size and comfort zone, your only limitations.
There is a lot to all of this. It is beyond the scope of this short article. The key point here is that the "professionals" in charge, so they get paid first, and in some cases-the most. You gave them power over your money by signing their forms. She scooped the cream off, even though ARE YOUR MONEY who did the work.
Its easy to understand if you will just have to be honest with yourself. Prepared Investing is a lot of fun. Especially when you know a few things about it.
I have much to say about these matters, so keep an eye on my articles here, or visit our website now for a lot of free insights and open content pages.
(C) Martin Thomson 2005.
Martin is an investor who is also part of a team that has a website for ordinary people to have a quick source to find ways to preserve wealth. With quality content heavily slanted toward common sense, risk-investor.com is the exclusive place on the web to get the acclaimed work by Millionaire Investor Hayden Muller. "The Trade Secrets of an Ethical Opportunity Investor: A Step-by-Step Guide." copyright 2005 revised edition. Hayden Muller.
Yet, many people take these "offers" anyway. Why?
As I said in the opening remarks. We are really not interested in investing, the compounding we want. The composition of our seed capital over a certain amount of time that produces results for us. When most people refer to investing, they really mean compounding their money.
The government approved investment advisors and other financial instruments paper hawkers offer 7% compounding wherever you go. Do not tell anyone we dont live for 200 years? That's how long it would take to see all reasonably attractive return. Even then, in 200 years, inflation would eat half of the profits. Why so much pleasure with this performance?
Maybe a lack of choice. But I think we have just swallowed the rule "the higher the reward, the higher the risk" Therefore, the logic goes, to settle for a very small 7% compounder, and my money will be safe. (Whether or not, is a matter of the Gods)
It's just not so. Many low-yielding investments are highly risky.
Want to know what they really mean by that statement? "The more in control of your own investments you are, the higher the reward and the higher the risk TO US-our work, our profit" (the investment advisors jobs, investment advisers profits)
CONTROL is the financial key to a rapid growth of assets ... compounding. It's just so confusing to most people. They see the polished brochures, and marble floor offices, and the pristinely manicured secretaries, and believe that these guys must be good. Yes, they are good, they are good in business for themselves. So we work very hard in our jobs / small businesses, trying to aggregate together to hand over to them. Several funds
Well, those of us who refuse to professional investors anyway.
YOUR control of your money
The absolute truth. Completely unbiased, pristine, honest sacred, highest accuracy truth is that you are 100 times better than what is on offer can do. It is possible, it happens and you can also happen.
Risk is a doable factor, which can be denied to almost zero.
"Low returns and risks in relation to the exact degree we relinquish control of our assets to another". (I hope you know that last statement, hear his key phrase on this page.)
The further we get from the composite control of our assets (money), the higher the risk, the lower the return ..... guaranteed.
If you could compound at a rate of ten times, (or 1.000%) for 48 months, starting with only $ 1,000 money would 10 million dollars in four years. (Try it yourself, just a calculator and multiply $ 1,000 by ten, then multiply the result by ten to four times.)
At 7% over 48 months, you would end up with the total of $ 1,310.79 (Try it yourself, but instead of ten, multiply by 1.07 representing 7%)
It's a big difference is not it?
What is necessary to multiply by 10 per year, consistently your money? Or even 5 for that matter would be very acceptable 3 times? Yes, yes, and yes. They are possible and available to you.
If control is the key, how can we physically make concrete these results? If it is not in the "closed shop" of the worlds stock markets, where?
Are all around you. Spare value is everywhere, waiting to be scooped and resold for a profit. At every price imaginable. You can start with $ 20 or you can start with $ 20,000 your account size and comfort zone, your only limitations.
There is a lot to all of this. It is beyond the scope of this short article. The key point here is that the "professionals" in charge, so they get paid first, and in some cases-the most. You gave them power over your money by signing their forms. She scooped the cream off, even though ARE YOUR MONEY who did the work.
Its easy to understand if you will just have to be honest with yourself. Prepared Investing is a lot of fun. Especially when you know a few things about it.
I have much to say about these matters, so keep an eye on my articles here, or visit our website now for a lot of free insights and open content pages.
(C) Martin Thomson 2005.
Martin is an investor who is also part of a team that has a website for ordinary people to have a quick source to find ways to preserve wealth. With quality content heavily slanted toward common sense, risk-investor.com is the exclusive place on the web to get the acclaimed work by Millionaire Investor Hayden Muller. "The Trade Secrets of an Ethical Opportunity Investor: A Step-by-Step Guide." copyright 2005 revised edition. Hayden Muller.
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