Learning to recognize trends is the secret to bigger profits.
There is a lot to learn about the stock market to be successful at investing in the right place at the right time. Your ability to recognize trends is a key factor in being successful. It can become a rather time consuming task to study the market and make good choices in selecting stocks to buy. But once you learn to do this properly can be quite lucrative for you. You will need to keep up with the news and watch the market closely and once you see and recognize a trend then taking action by buying or selling at the correct times is key to your success.
Some of the terms to watch out for are:
Blue Chip – This term describes a company with a history of strong earning, traditionally increasing dividends and an outstanding balance sheet. Blue Chip stocks include Exxon-Mobile, Coca-Cola and Wal-Mart.
Dividend – the portion of a company’s profit that is given back to the investors that is you. Such payments are made in two ways on either an annual or quarterly basis.
Market Capitalization – A company’s market capitalization, is also known and called market cap, is calculated by taking the no. of outstanding shares of stock multiplied by the current price per share.
Spread: This stock market term reflects the difference between the Ask and the Bid price for the stock.
Most folks in trust a broker to handle their investments but there are a lot of great software programs that can help you make big profits for yourself.