NetTrade

• Trading Psychology 101

  Whenever you venture out into trading, you should always be on the lookout for how well you know yourself. Every person has different strong points that he or she is able to profit from during trading. You should be able to know what those strong points are and use them to your advantage so that you’ll be able to react properly during different circumstances. If you are able to protect yourself from different damaging situations during trading, then you will be able to manage a trade with much ease, not to mention even greater profit.

  You should know that your biggest hindrance when you’re trading is yourself. You shouldn’t focus on the market or even the world events. If you do not look into psychology when you’re trading you will most probably make the wrong decision and eventually lose out on all of your savings and stocks in the long run. Here are just some of the concepts that you need to take note of when you’re dealing with trading psychology.

  Patience
  You should always remember that what goes up must come down. Therefore, whatever it is that you encounter within a particular trade, simply be patient enough to wait for the different positions to materialize after a trade, then you’ll be able to get all of the facts first. Be sure that you get all of the information straight first before you go make a trade happen. This will happen only if you decide to watch the market from the sidelines from time to time. You will be able to properly respond to the different types of surprises that will come your way.

  Make sure that you never fall in love with your stocks nor do the opposite and hate them. These stocks really don’t care that you own them and they certainly are not your friends. Be sure that you are detached from them so that you will be able to make decisions based on logical premises instead of emotional ones. Do not constantly check the share prices all day long  unless you really are day trading. If you get caught up in a particular stumper of a stock then make sure that your decisions are coming from your head.

  There you go—the basic principles in making wise, informed and logical decisions regarding stocks. In the realm of online stock trading be sure that you always lead with your head and not with your heart.

  Posted in Trading Basics

  October 24th, 2007 / No Comments

• The New York Stock Exchange In The 90s

  The New York Stock Exchange is one of the best online trading sites that cater to stock trading. The NYSE traces its origins to the time that New York City stockbrokers as well as different sellers signed the Buttonwood Agreement which essentially set into motion the assurance to investors and issuers.
  Here, we chronicle the different milestones and memorable moments for the NYSE in its very colorful and flourishing history.
  1990
  The NYSE conducts an industry-wide test which shows their capability to trade around 800 million shares a day. It was during this time that 51 million Americans owned stocks according to the census conducted by the NYSE
  1991
  It was the year when the NYSE held a symposium in order to amass data as well as a fresh perspective on how to improve director independence and other corporate governance issues.
  It was also during this time that the NYSE began its first off-hours trading sessions which started from 4:15-5 P.M.
  The Dow Jones Industrial average also exceeded 3,000 for the first time since its inception.
  1992
  It was during this year that the average daily volume surpasses 200 million. Former president Ronald Reagan and Mikhail Gorbachev toured the trading floor when they visited the NYSE to commemorate its bicentennial anniversary as one of the world’s most vital and enduring financial institutions.
  1993
  This year saw an integrated technology plan which saw to upgrade the trading floor networks which included the hardware and software to be able to radically improve the capacity, efficiency and quality of almost every aspect of trading floor operations.
   1994
  This was the year of the Market 2000 study which was conducted by the U.S. Securities markets. This is when the SEC approved a uniform shareholder voting rights policy to be used by the New York Stock Exchange as well as other securities dealers.
  1995
  An aggressive plan to re-engineer the trading floor to make it much more sophisticated with the use of the top-of-the-line technology gave the NYSE an upgrade. It was now composed of high-definition flat-screen technology as well as fiber optics and cellular communications.
  1996
  NYSE launched a real-time stock ticker on CNBC as well as CNN-FN. Before, the market data was delayed for 20 minutes. It was also in this year that a new volume share record was set on July 16 wherein it traded 681 million shares. This year also saw 59 non-U.S. companies joining the New York Stock Exchange which brought the total to a whopping 290 companies.

  Posted in Stocks

  October 17th, 2007 / No Comments

• Scam 101 - Short And Distort

  One of the things that you have to watch out for whenever you’re trading online stock is the many different online scams that these con artists and scam artists pull off. One of the classics of online stock trading is the traditional pump and dump. This is done with the use of different promoters who try to talk to investors about parting with their money to simply make money off the fall of a specific stock price. When you’re talking about online investments, you will probably hear of the Pump and Dumps sister, the Short and Distort. This pertains to the “short selling” that is done by the scammers. What happens is the short selling happens when it is done by another investor who does not own the stock that he or she is selling. There are several stages of the “Short and Distor” scam and we’ve outlined them for you so you will be able to know when you’re being scammed and how you can avoid it in the future.

  We have set out below, the various stages of the Short and Distort.
  Stage  1: Research. The short and distort scammer will find different stocks that might be overvalued and focus his or her attention on those stocks.
  Stage 2: Short Sell. When there is some slight of activity regarding a particular stock because of some bit in the news, the short seller enters the market with the intent of and selling stock (which he does not actually own) short
  Stage 3: Rumour Mill. This type of scam has a different type of approach. Unlike the scammer in the Pump and Dump scheme, the this Short and Distort scammer will now enter into campaign to weaken the worth of the stock that he is interested in. He eventually is able to make it sell short by spreading several rumors. He accomplishes this by posting several negative replies or comments on a particular message board or chat rooms and several other newsgroups. This plan targets different investors and entices them to simply let go of their stock with the implication that people might lose money if they don’t let go of their stock in the long run. The tactic that revolves around this is inciting fear in the different investors instead of excitement.
  Stage 4: The Cover
  The scammer will then buy some stock and will then have some of his fellow-scammers cross stock with each other so that people will notice that there is a great deal of selling that is happening right now which means that one should not hold onto the stock for too long.
  Stage 4: The Loss
  The investor who once bought the stock at elevated prices, sold his stocks at a lower prices on the mistaken belief that the stock was worthless based on the distortion campaign.

  Posted in Stocks

  October 11th, 2007 / No Comments

• Steps To A Scam-Free Stock

  Trading stocks online is quite profitable for anyone if they know what to look for. It’s important that every person who’s decided to go the online route will be giving enough attention to the little details and subtleties that go into stock trading. Because the potential for scams is quite larger, you may not be able to immediately jump into trading as safely as possible.
  There have been instances wherein people who have prematurely jumped into online stock trading without asking around about the pros and cons of the business have succumbed unknowingly to different scams. They might have spotted the stock of a thinly-traded corporation and along with a bogus website’s tip or maybe a forum member’s egging the person eventually leads the person to buy a lot of the stock. Then after the hype is through, the scammers eventually sell their stock and they get rich afterwards while the poor unfortunate soul that they leave behind becomes a few hundred dollars poorer.
  In order to not get scammed online, you should assume that the things that you see on the Internet, especially those which are related to online stock are not always true. A good rule of thumb is that you should assume an offer is a scam until you can prove through your own research that it is a legitimate offer and transaction. Otherwise, you’re setting yourself up for disaster and a hard-earned lesson. There are sites which have paid promoters who tell you in the forums that you’re able to profit a lot of money of you trade stocks with them or if you buy a specific stock. Be wary of these so-called traders because they do not have your best interests in mind.
  Another good thing you can do whenever you’re dealing with stocks is to research where these stocks are traded. Most of the smallest and most thinly-traded stocks typically do not reach the listing requirements of the Nasdaq Stock Market or a national exchange such as the New York Stock Exchange. These thinly-traded stocks trade “over-the-counter” and are seen to be quoted on OTC systems. Those stocks which are traded in these types of systems are found to be the most risky and most susceptible to manipulation. So be sure that you’re always on the lookout for what you’re actually trading or you just might end up helping a swindler get rich while you, on the other hand, get poorer.

  Posted in Stocks

  October 3rd, 2007 / No Comments