Online Stock Trading Tips

The investing scenario goes like this: You save hard earned cash from your years of hard work either as an employee of a company or from a small self employed business. Now you finally decide to invest some of your money in stocks. It is because you have read that stocks has high rate of return as compared to a traditional bank account, time deposit or even buying treasury bonds or bills.

You read some tutorials online about stock trading; it sparks your interest a lot. But time will time when you are about to pick your stocks. This is complicated and riskiest part of the investing process. Why? It is because when you pickup stocks, not all companies will succeed, in fact only a few made after 10 years in the business.

If you invest a substantial portion of your savings to stocks and you pick the wrong one, then you are going to lose a lot of money. Therefore caution must be practice when you are about to select stocks.

However, picking stocks can be very confusing. In fact in the US, some are picking very low priced stocks what called as “penny stocks” , sometimes these stocks are manipulated and traded outside the New York stock exchange, therefore it is highly recommended that you will review what you trade or better not trading at all penny stocks. (more…)

Toyota is experiencing a big problem. There have been massive accusations of Toyota delivering a faulty accelerator/brake system that leads to massive car recalls worldwide (mostly from United States). Of course, when events like this happen; stock price will fall because stock investors are not confident of the situation.

Quick question: What can one investor profit from massive car recalls? Of course, it is not like you own one Toyota and you return it to the Toyota then asked refund. I am talking about investing in stocks.

With respect to investment point of view, the best time to buy stocks is when it hits a real low. It is because the price of stock is very low and when stocks are purchased at real low, Toyota stocks (being the leader in the automobile industry) will have a tendency to bounce back to become another bull trend.

Right now the stock market price of Toyota is down, if one can analyze and determine that Toyota stocks is at the lowest and at the same time starts to climb up, is where one can profit much in this car recall event.

Are we targeting the bottom (real low)? The answer is not, because low is still low and it would be risky to buy this point when stock price is not certainly to go up. Of course no one knows the real lowest point of the Toyota stock price. When it went bearish, it might continue to go bearish. Therefore one might asked, how can one determine the best buy entry for long trend?

First, you need to observe the trend of Toyota stock price. When it starts to form V, this is called the V bottom, a good sign of trend reversal. (more…)