Learning to trade stocks in the financial reality of today


What is share price?
In Dollar terms it would be 426.90 per share, if you bought ten shares you would be buying 4269 dollars worth of stock in that particular company. The share prices changes based on what people are willing to pay at that time to acquire the shares. If the demand is high the price will be increasing if demand is less the price will stagnate or fall.

The share price is the total value of the company or market capitalization divided by the number of shares outstanding. The company may buy back shares which may help increase the stock price or the company may sell additional shares which would dilute or lower the price in most cases, at least for a short time because it increases supply. If the company issues more shares and the stock prices goes up the demand for the stock is particularly high.
You can read more at:
Learning to Trade Stocks website. 

think the best thing to do at a younger age is to get an online stock account and start learning about stocks and options. The idea is that at a young age it is worth the risk because you have a longer time frame to work with the money or to get it back in the event of a loss.

You can easily get an account at one of the online brokers and start using Yahoo finance to follow the market and begin your education. Investors business daily is a great newspaper on line or offline. It is an excellent educational tool. You will benefit greatly from learning about investing and it will serve you well for many years. If you are interested in more information on trading stocks and options go to http://financialrealityrevisted.blogspot.com and see the learning to trade stocks page.

Bear Market Trading

Bear markets are difficult. Earning a living during a bear market is hard work and extremely frustrating. Numerous times I have given back small gains by trying to turn them into bigger gains. I have gotten burned so many times when a stock goes well for a time and then immediately does a complete reversal for no apparent reason other than drastic short term profit scalping. The term scalping is occasionally used to describe day traders or hourly traders who like to scalp profit quickly by buying and selling in very short intervals. It adds to market volatility and can greatly increase the risk for individual traders. The only ways to profit from this method is buy buying large numbers of shares or buying the most extremely volatile stocks. Scalping is a legitimate way to make money in the market but it is risky because if you are wrong about direction the losses will increase rapidly. I have repeatedly made the mistake of going back to the well one more time after scalping a gain. After buying in again and trying to add to my position a slight decrease in price with twice the shares will erase the gain. I you don't have to trade in a bear market it is better to sit tight and wait. If you want to trade in a bear market anyway just make sure you can survive a drastic reduction in capital.

You can read more at:
Learning to Trade Stocks