If you have not traded any stocks before and thinking of becoming a stock trader, there are many things to consider before you put money in stock trading. When it comes to stock market trading, investing or speculating books, there are thousands of them. Over the years, I have read countless stock market books and can only think of a handful of them that have been really helpful. There are no get-rich-quick stock market type books listed here, because that doesn’t really exist, unless you get very lucky. The way you get rich in the stock market is by learning and learning more, and staying in the game. Since the stock market does not always go up, these books will teach you how to profit during bear markets or stock market corrections. Finding a good dividend paying stock is not just finding the highest yields, since that can be very deceiving.
You will find yourself referring back to them again to make sure you understand each concept as you trade and invest in the stock market daily. The way the stock market fluctuates is enough to keep anyone awake at night wondering about their 401k plans, retirement and their stock portfolios. And the reason could be that the stock price recently fell dramatically and sooner than later, the dividend will be cut or eliminated. Investing in companies that pay dividends and reinvesting those dividends along with stock splits can add up nicely. Technical analysis can show you when to enter a stock or when to exit a position.
Another benefit of good dividend paying stocks is that they are usually older more established companies and these companies will sometimes do a stock split, which means you end up with more stocks over time accumulating more dividends. After reading this book, you will be as smart as any stock market advisor and competent to handle your own investments. Toxic-mortgages, the collapse of the housing market and highly rated junk bonds backed by these mortgages. Option trading can be very profitable and they can be used to hedge stock market volatility risks.
Right now there is talk about another housing bubble already and the stock market has certainly gone almost straight up. Most think the market has only gone up during this slow economic period because of Federal Reserve policy and when that changes, the market will correct by a large percentage. When you buy a call, you believe the underlying stock or index is going to go up in price by a certain date.
And when you buy a put option, you believe the underlying stock or index will go down in price by a certain date. Learning how to read a company’s annual and earnings report is crucial to understanding the financial health of a company and if you should buy stock in the company. Learning at least the basics of reading charts can be important showing you where the company’s stock has been and where it might be going. The Chinese government’s policy to boost stock prices succeeded beyond expectations as investors fuelled a speculative boom. The Chinese stock market increased in size rapidly, overtaking Japan to become the second largest stock market in the world.