Saturday, January 31, 2009

Stock Market Trading: How To Make The Most Money

By: David Baxwell
Investing in the stock market is an easy way to make some quick cash as long as your are patient and you have some idea of what you are doing. There are many ways to go about doing stock market trading, but if you are looking for a get rich quick scheme, better play the lottery.
Penny stocks are considered to be another investment vehicle. Keep in mind that these stocks are not traded on the NYSE, instead they are traded on what is considered unregulated markets. You can purchase 400 penny stokes for as little as $100, while this does appear to be a great investment and an easy way to make money, you should be careful not to be tricked. Keep in mind that these stocks will collapse resulting in a loss of money.
A safer bet for stock market trading would be stock options trading. The safest of these would be Exchange Traded Options, whose value is listed and known on the exchange. What is beneficial about options is that it is a contract between two individuals that says that if the stock goes up, you will be paid a portion of the profit. These futures are definitely beneficial as a stock market tool, and are a great and safe way to make money as long as your are diligent.
The MACD indicator is a useful approach to judging how a stock might possibly perform down the road. It differentiates between a rapidly changing exponential moving average and a lethargic one. If the tracings cross a 0 line upwards, you should invest. If, however, they cross in a downward direction, you ought to sell. That principle, when applied in a sound market, generally results in significant profit to the investor.
However if you try to use this in which the volatility is high, you will end up losing money as this indicator does not perform very well. This is a way to make money that is used in day trading, so the risk is high but so is the reward.
Stock market trading is a fantastic way to build capital, but only if you are in it for the long run. Short term investments have a built in danger to them. The rewards might be large but the hazards are as well. Over the long haul, the stock market leaning has been in the positive direction, so putting your money into it can be a secure choice. It is just a matter of time and tolerance to watch your money accumulate, just be vigilant and remove it once you think it has achieved its peak.

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