stock market recommendations

stock market recommendations
stock market recommendations

When analyzing a stocks value, or more to change the point at the price (to most investors, the most important number), there are two simple factors that enter into consideration: the change in points and percentage change. Most reviews, ratings, recommendations, thoughts, ie in the stock market, which I have see are particularly concerned percent, easy to understand and very helpful factor. However, watching the market in this way is inherently limiting in populations can be considered. The inclusion of a measure of change Point offers a complete, more diverse view of the market, often overlooked by many investors.

For example: If you buy a stock at $ 50 and sells for $ 55 that you made a percentage increase of 10% and a gain of $ 5/share point. The concept major / difference in the use of these two parameters is that one (percent) is based on the dollars that have been implemented and the other (points) is related to the number of shares. Pretty obvious, but the devil is in the details interesting.

If I'm buying stock in the conventional method of buying low and selling high, as shown in the example of the change is obvious. But what if it is to exploit the change in price in the other direction ($ 55 to $ 50 or buy short)? Again, on the basis of points, I 5/share $, BUT, by percentage was only 9.1%.

Also, if I can change my example a little and say that people only increases in value to $ 51 when I have sold only 2% on my investment. For someone who only spent $ 4,000 to start the return is a disappointing $ 80 ($ 60 after you pay for the trade). This will keep me in Lattes for the next week or so, but is barley enough so that the risk is worth it. However, if I were able to buy 5,000 shares, so I can be very much at Starbucks for $ 5k.

Investing with the concept instead of percentage points is therefore useful if you have large amounts of money to put in a bag and / or if you are looking for profit in a declining market. These concepts define two types of investors: those who are primarily concerned with the% change (I'm not talking about you, but this is me) with reasonably small amounts of money who wish to take advantage of, and stakeholders with a point, with a lot of money investing heavily (at least for me).

The important point I want to emphasize is that although the concept of investment is not as useful points directly to small investors, helping them get their "head around" what great investors, who are often in a specific price control measures, they are doing. Therefore, it is very useful bit of information to keep handy while watching an action and try to figure out what to do next.

Conclusion: If you have small amounts of money for investment is almost certain to seek profit percent. However, those with larger amounts of points based trading can be quite successful and allows the investor make better use of the various changes that occur in the market.

Finally, if you are watching the bulk market and the definition of action only by the percentage change usually only see the smallest change shares held by any significant amount. To include higher-priced stocks, and become familiar with its volatility, it is necessary to observe the changes from the perspective of the points. What is interesting is the fertile ground of the prices when they often cross (somewhere around the range of $ 50) two. Here the prudent investor, this convergence of knowledge to support the above, can make gains decent.

Alan L. Goosedanger
Stock Calculations is a complete macro research package. We’ll do the macro, you do the micro. When it comes to manipulating stock data, StockCalculations is a real time saver. Your follow up with specific information on individual stock, provide to complete the total package for wise investing. Visit to explore all that Stock Calculations has to offer!

What is a good action really reverse the software?

I am a novice investor but it is really serious about being a huge success stock market. I'm looking for recommendations on software quality stock (the price is not a problem) that helps me do the fundamental analysis and technical and provide information on the position of a company in its sector, buy and sell signals, undervalued or overvalued, etc. Anyone have any recommendations? Thanks in advance!

Elite Bloomberg.

02/01/10 S&P Emini Stock Index & Futures Recommendations

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