Stocks & Share Investing: How to Get Started

141 Articles

• Investing
  • Planning Your Investments Setting investment goals
    Before you go straight ahead and invest your hard earned money, make sure you have an investment plan. What is your time frame? What is your risk appetite?
  • 8 Steps to Financial Freedom
    Do you have the dream of financial freedom? How do you achieve this goal? What are the strategies? Here are the 8 steps you can take.
  • How to Get Out of Debt
    There is nothing quite as crushing on a person’s spirit than the overwhelming burden of debt. So how do you get out of debt?
  • Dollar Cost Averaging with Example Calculations
    Dollar cost averaging involves buying assets at different prices by making regular deposits. As a result, the cost of investing averages out over time.
  • Which Credit Card Should I Get?
    Choosing which credit card to get will depend if you pay out your balance every month or if you carry them over.
  • Can I Retire on 1 Million Dollars? Is it Enough?
    One million dollars has been the benchmark for individuals saving for retirement. But is one million dollars enough to live comfortably on? You might be surprised by the answer.
  • Investment Vehicles Best way to invest your money?
    Before you can know how to best invest your money you need to first make a plan. Choose an investment vehicle/s that will best reach your invest goals.
  • How to Budget Your Money
    A budget will help you keep track of money, prevent overspending, stay on top of your monthly bills as well as plan for the future.
  • Choosing a Finance Advisor
    Unfortunately, finding a good financial advisor is not as simple as it should be. Where to look and questions to ask.
  • Asset Classes: Shares, property, fixed interest
    The 3 main type of asset classes includes shares, property, fixed interest. Each asset has an expected level of return and has volatility or uncertainty associated with that return.
  • The Magic of Compound Interest
    Albert Einstein called it the 8th Wonder of the World. Compound interest is one of the most basic and powerful concepts that can enhance the outcome of your investments.
• Shares
  • Stock Market Investing and Share Market Tips
    If I had to pass on a few tips that would help investors most, what would they be? The following stock market and share market tips should help keep you on the profitable side of the market
  • Short Selling Explained: What is Short Selling
    What is short selling? Why do we care? Short selling allows an investor to make money on both sides of the market action. Learn how shorting selling works and why you would short a stock. The rules and risks are also explained.
  • How to Trade Like a Professional Trader
    From choosing a broker to selling shares for profit, this is your quick guide to trading like a professional.
  • What are E Minis Futures? How do I Trade Them?
    What is an e-mini? Generally e-mini's represents a smaller sized contract, usually one-fifth of a major contract, when Index trading.
  • Diversification Learn how to diversify your portfolio
    One of the most effective strategies to reduce risk is through diversification. Learn how to diversify your portfolio.
  • What Is Ethical Investing?
    Ethical Investments are also sometimes referred to as Socially Responsible Investments, SRI. Some reports suggest that these types of funds will reach the value of 3 trillion dollars by 2011 in the USA and $15.73 billion in Australia. What are they and should we invest in ethical investments?
  • Creating a Trading Plan
    Before you start buying and selling stocks, you need to create a trading plan and consider three key areas: Core rules, Psychology, Risk management.
  • The S&P/ASX 200 Index (XJO)
    The S&P/ASX 200 is a list of the top 200 Australian companies that are large enough and trade with enough liquidity suitable for institutional buying.
  • Choosing A Broker
    There are 2 main types of brokerage firms, full service brokerage firms and discount brokerage firms (Online Brokers). Deciding which brokerage firm to use will depend on your trading style.
  • Guard Your Portfolio With Defensive Stocks
    When the market is choppy, trendless, or hard to define, what sort of stocks should you own as an investor? For many the answer is defensive stocks. What are defensive stocks, Why Invest in Defensive Stocks? What are examples of Defensive Stocks?
  • How Much Do I Need To Invest In Shares
    The minimum required to invest in a parcel of share in Australia is $500 however this is not advised as brokerage costs and transaction fees can eat into your capital.
  • Investing VS Trading
    While investing can involve some elements of trading, and vice versa, they are two different concepts.
  • What does ex dividend mean? How to ensure you receive your dividends
    What does it means when a share goes ex-dividend? Learn the important dates of a dividend, ex-divided, record date, payable date and ensure you receive your dividends.
  • If I Could Only Invest In One Thing...
    If I could only pick one investment to put my money into – what would it be? If I am to make one investment it will be with people and not a product.
  • What Are Shares Dividends?
    Dividends are the distributions that are paid using profits companies made during the year - it is like a reward to investors who have chosen correctly.
  • Dividend Imputation System & Franking Credits Explained Calculations
    The dividend imputation system allows investors who have been paid a dividend to take a personal tax credit (franking credit) since the company has already paid tax (30%) on this dividend.
  • What is the 'Market'?
    Whether you've read about it in the finance section of the newspaper or heard it on the news, have you ever wondered what they mean by "The Market"? Why is it so important?
  • What Shares Should I Buy?
    Although you have likely gained some knowledge about the process to buy and sell shares, here are some publicly traded companies in the Australian Securities Exchange (ASX) to get you going.
  • How to Buy Shares, placing an order
  • Building a Investment Portfolio Strategy
    Portfolios do not come with a cookie cutter suitable for every investor. We need to analyze the investor and then select stocks that match the profile. To do so we need to consider three main areas: time, risk, reward. Learn how to build a customised portfolio.
  • Trading the ASX 200 Index: ETFs, CFDs, Futures and Options
    The S&P/ASX 200 Index represents the top 200 companies in Australia. How do I buy or short a large basket of 200 stocks in an efficient manner?
  • Creating a Trading System
    How do you go about creating a trading system? Here are some checks and balances that you can employ to raise the odds of it being a winning system.
  • Understanding the Share Language & Jargon of the Share Market
    It is important that you understand the language & jargon of shares, as your evaluation of a company may be dependent on one vital piece of information.
  • What are Income Stocks? Best Income Stocks for 2010
    What are income stocks and which ones are ripe for the picking for 2010? An income stock is a quality blue chip stock that will maintain its value while paying dividends. Here is out top 10 best income stocks for 2010.
  • How To Pick Growth Stocks?
    Want to find stocks that will rocket in value? Learn how to pick growth stock by identying criterias such as EPS, P/E, Revenue & Book Value.
  • Wesfarmers (WES) vs Woolworths (WOW)
    In another exciting round of publicly traded companies dueling it out – which of WES or WOW will come out on top?
  • David Jones (DJS) VS Myer (MYR)
    With these two companies competing for your investment dollars – which should you buy, DJS or MYR? Let’s examine them both...
  • Benefits of Investing in Shares
    There are many benefits to investing in shares and we will investigate how this common form of investment can be an effective way to make money and dilute the risk.
  • How to Make Money In Shares
    The aim of StockWatch is to help beginner's learn about investing. These articles will teach you why investing is important, how to invest in shares, finding a broker & how to buy shares.
  • How to Treat Trading Like a Business
    If you treat trading like a business, you will have better odds of being successful with a rewarding career.
  • BHP vs RIO
    As mining stocks continue to be in the limelight – which one will come out on top as the winner in the ensuing battle? BHP or RIO?
  • Making Money In a Bear Market
    How can long-term investors play this bullish market to protect capital and even make a little extra profit?
  • Investing in Cloud Computing Stocks
    What is cloud computing and how might it change the way we go about business? Is it a good trend to invest in? Which are cloud computing companies to watch?
  • High Dividend Stocks
    The process of picking high yielding dividend stocks is not nearly as simple as grabbing the one with the highest yield. Certain stocks have higher dividends than others. What types of stocks would these be? Here are example of quality stocks with high dividends.
  • Make Money Trading the Share Market
    Making profits in the market is not easy and requires that we control behavioral problems. You will need to adapt your techniques for a bull and a bear market.
  • ANZ vs CBA vs NAB vs WBC
    Is now a fine time to invest in banking shares? If so, which of ANZ, CBA, NAB, WBC is well positioned fundamentally?
• Funds
  • Managed Funds Choosing the best fund for you
    Managed funds, also known as unit trust or mutual funds, allow investors to pool their money together and buy different companies.
  • S&P/ASX 200 ETFs: STW, IOZ, VAS
    Index trading is becoming increasingly popular due to its broad exposure to the market. Here are three Exchange-Traded Funds (ETFs) for the S&P/ASX 200/300.
  • Managed Funds or Direct Shares
    As with many investment decisions, your personality, combined with your financial goals and needs, will largely determine whether you will be better suited to investing in managed funds or direct shares.
  • ETFs (Exchange Traded Funds)
    An exchange traded fund (ETF) is a cross between an index fund and a stock. It combines the low fees and diversification of an index fund and the liquidity of stocks.
  • Introduction to Index Funds
    An index fund works by buying all the securities that make up a specific index, for example the S&P/ASX 200 index. Find out if you should invest in a Index Funds VS Managed Funds.
  • ETF Trading
    Unlike managed funds, ETFs can be bought and sold short. They are traded on a stock exchange, have prices that change throughout the day, can be purchased through a brokerage and often have lower management fees.
• Fundamental Analysis
  • Fundamental Analysis of Stocks: Qualitative Factors of the Company
    Fundamental analysis includes looking at qualitative factors of the company. These factors can include the management team, the business model, competitive edge & corporate governance policies.
  • Fundamental Analysis of Stocks: Qualitative Factors of the Industry
    Fundamental analysis includes looking at Qualitative Factors of the industry. When looking at Fundamental Qualitative Factors consider the following areas Sustainability of Industry, Growth of Industry, Company’s market share of industry, Amount of competing companies & Regulations surrounding the industry.
  • Fundamental Analysis: Quantitative Factors, Book and Price to Book Ratio
    Fundamental Analysis. Looking at Qualitative Factors including Book and Price to Book Ratio. Learn how to dissect a company and try to add the sum of the parts.
  • Fundamental Analysis: Quantitative Factors, Earnings Per Share (EPS)
    Understanding earnings per share (EPS) is one of the most important aspects of fundamental quantitative analysis and is the basis for numerous other ratios such as growth.
  • Fundamental Analysis: Quantitative Factors, Price to Earning (P/E) and PEG
    Knowing the P/E and the PEG are two important aspects of fundamental analysis. These ratios can tell you the relative valuation of a stock as compared to its industry, the market, and its own future growth.
  • Fundamental Analysis: Quantitative Factors, Short Interest
    What could possibly cause a stock to double its value in one day? The answer: the short squeeze. We will now analyze this interesting phenomenon by looking at the underlying cause of such a boost which is the "short interest".
  • Warren Buffett: A genius investor, a philanthropist, and a role model for citizens
    Warren Buffet has a magical blend of qualities that every investor covets: he can discern value, has unending patience, and iron-will discipline. Warren has the uncanny ability to pick a winning stock amidst thousands of lack-luster ones. Here are some Warren Buffett famous quotes.
  • Benjamin Graham: Father of value investing
    Benjamin Graham is another one of those founding fathers to the fundamental analysis practice we have today. Warren Buffet himself, the richest man in the world in 2008 with a net worth of over 62 billion dollars, described himself as "85 percent Graham".
  • Phillip Fisher
    Another legendary titan in the investing arena was a man by the name of Philip Fisher. By many he is considered to be the founding father of high growth investing. His book Common Stock and Uncommon Profits published in 1958 propelled this highly intelligent investor into the limelight.
  • Peter Lynch
    Peter Lynch is undoubtedly one of the greatest investment minds alive today. To sum up the style of investment by Peter Lynch is not easy. He tirelessly works to ensure each stock is up to his very high standards.
• Technical Analysis
  • Charting
    • Technical Analysis: Charting: Line Chart
      In the world of charting, the line chart is the most basic and easy to read. Line charts can be used by investors just learning to use charts, or by someone who only wants a passing glance at the chart without the extra details.
    • Technical Analysis: Charting: Bar Chart
      The bar chart is one of the most commonly used stock charts. The reason for this is that it contains a wealth of information about price action while keeping the chart uncluttered and easy to read.
    • Technical Analysis: How to Read a Candlestick Chart
      Candlestick charts along with the bar chart are the most popular charts for share trading. They provide a wealth of information and are very easy to read and interpret.
    • Technical Analysis: How to Read Point and Figure Charts
      While computer charts can easily create flashy charts, there are some distinct advantages to the Point and Figure charts. In this lesson you will Learn How to Properly Read a Point and Figure Chart.
    • Technical Analysis: How to Draw Trend Lines On A Stock Chart
      The concept of a trend line is a simple one: connect two points together with a line. Correctly drawing it requires a bit more skill. Below are the 5 steps to drawing a proper trend line.
    • Technical Analysis: What are Stock Gaps & How to Trade Them
      When prices jump right up through a trading range this is called a gap-up. Learn the four major types of gaps and the numerous ways to trade them.
    • Technical Analysis: How to Read & Trade Chart Patterns
      A chart pattern is simply a recognisable trading formation with a predictable outcome. Learn how to read the most common chart patterns and how to trade them including.
  • Technical Analysis: The Secret of Moving Averages Explained
    Moving Averages are powerful indicators. They can tell you about trends and buy and sell signals generated. Continue reading to learn the secret of Moving Averages.
  • Learn How To Trade Support and Resistance Levels
    Perhaps one of the strongest concepts in technical analysis is support and resistance. Support and resistance are great clues as to profitable entries and exits, and particularly powerful when combined with other indicators in a complete trading strategy.
  • Technical Analysis Indicators: Leading versus Lagging Indicators
    Technical analysis indicators come in two basic varieties: leading and lagging. A trending market works well with lagging indicators, while a trading market more profitable with leading indicators.
  • Trend Following Indicators Part 1: What Is a Trend?
    Learn about trend following indicators, ADX, Wilders DMI, Aroon and MACDs. Being able to determine a trend is one of the most important concepts in technical analysis.
  • Trend Following Indicators Part 2: Trading The Average Directional Index (ADX)
    The ADX is an oscillator type indicator that is used to determine the strength of the trend. Learn how to trade the Average Directional Index ADX.
  • Trend Following Indicators Part 3: The Directional Movement Index (DMI)
    The most common way to trade the DMI indicator is to enter a trade at the crossover point. When the red crosses above the green, go short. If the green crosses above the red, go long.
  • MACD Indicator Explained
    The Moving Average Convergence Divergence (MACD) is a combination of moving averages designed to signal a change in trend. Learn the 3 three common approaches when trading the MACD.
  • Technical Analysis Momentum Indicators: ROC, Stochastic & RSI
    Momentum in stocks usually refers to a rate of change, an increase or decrease in pressure. The most popular momentum indicators are Momentum, ROC, Stochastic and RSI.
  • The Relative Strength Index RSI Indicator Explained
    The Relative Strength Index (RSI) is a popular momentum tool. It can be used with trend following tools, but more often with volume tools to validate a signal.
  • Stochastic Indicator Explained
    The goal of the Stochastic Oscillator (Fast, Slow, and Full) is to determine if the stock price is in the upper or lower trading range over a set amount of time. Learn the three basic ways to trade the Stochastic Oscillator.
  • Momentum Following Indicators: The TRIX Indicator
    The TRIX indicator has become a well used method for momentum traders to determine buy and sell signals. The goal is to super smooth the data security to reduce the volatility and whipsaws.
  • Volume Following Indicators In Technical Analysis
    Many volume trading indicators exist such as the Money Flow Index, On Balanced Volume, Accumulation and Distribution. Whatever methods are employed to track volume, a careful study into how volume works will greatly improve your trading.
  • Volume Indicators: On Balanced Volume (OBV) Indicator
    There are a few ways to profitably trade the OBV: divergence and crossovers. Whether you use OBV to spot divergences in prices, or to play smaller volume breakouts, this tool is best used in conjunction with other tools.
  • Volume Indicators: Money Flow Index (MFI) Indicator Explained
    There are three key signals to use to trade profitably with the Money Flow Index Indicator: divergences, overbought / oversold signals, and crossing of the 50.
  • Volume Following Indicators: Percentage Volume Oscillator (PVO) Indicator
    Just like the MACD, the Percentage Volume Oscillator starts with the 12 day moving average and subtracts the 26 day moving average. Here three main signals are generated with the PVO.
  • Technical Analysis: Parabolic Stop and Reversal (PSAR) Indicator
    Developed by technical analyst Welles Wilder who also made the RSI and ADX indicators, the Parabolic Stop and Reversal system has proved a worthy indicator for expert traders. The goal of the PSAR is to determine a trend, and then establish buy and sell signals on that trend.
  • Technical Analysis: Stop Loss & Trailing Stop Loss Orders
    Having an exit strategy is vital to the success of any trader. While a variety of methods exist, a stop-loss order is a simple and proven method to capture gains and limit loss.
• Commodities
  • Should I Invest in Gold? Pros and Cons of Precious Metal Investing
    The price of gold has rocketed over the past years. Should you buy gold or pass on it? What are the pros and cons of such an investment?
  • Should I Buy Gold Now?
    Over the past 10 years gold has rose over 6 times in value. However more recently, gold has made a pull-back. Is now a good time to buy gold?
  • Investing In Silver 7 Methods to Gain Exposure to Silver
    There are many reasons to invest in silver - from diversification of portfolio to having physical currency. Here are 7 methods for you to gain exposure to silver.
• Day Trading
  • Common Day Trading Myths and Lies Debunked
    Day trading is one of the most exciting yet misunderstood forms of making money from the stock market. Here are some common day trading myths exposed.
  • Day Trading Rules Part 1: Setup Long
    Learn the precise moment to enter a long position with these basic entry rules for day trading.
  • Day Trading Rules Part 2: Setup Short
    Learn the precise moment to enter a short position with these basic short entry rules for day trading.
  • Buying and Selling With the Trend
    For trend trading, I recommend using 5 minute charts – if not a longer time frame. If you use too short of a time frame you will encounter a lot of ‘trading noise’.
  • Day Trading: The Art of Controlling Your Emotions Part 1
    If you have not yet experienced day trading let me walk you through a typical trade and the emotions you will feel.
  • Day Trading: The Art of Controlling Your Emotions Part 2
    Learn how to separate your self-esteem and worth from a trade. A trade is just a trade – nothing more and nothing less
  • Intermediate Setups and Creating a Bias Part 1
    Learn how to create setups and bias using trendlines and the moving averages (10,20ema).
  • Intermediate Setups and Creating a Bias Part 2
    Learn how to use the 10 and 20 period moving averages on the 5 minute chart to identify profitable day trading zones
  • The Art of Channel Trading
    What is channel trading? Learn two techniques to play a channel trade.
  • Day Trading Example: Walking Through a Trade – Part 1
    We will walk through an example day trade as to how our thinking process works and the considerations a daytrader needs to make.
  • Day Trading Example: Walking Through a Trade – Part 2
    There is so much more to day trading than watching bars in real-time. There are headfakes, periods of low volume trading and so much more. Lets walk through an example trade.
  • Can I Make Money Day Trading? How to Become a Day Trader?
    What is the reality behind day trading? Can people make a living at it? What skills and training is necessary to be successful? Is it for you?
  • Tracking the Market and Day Trading Your Stock
    When you track an index you get a clear picture of what the broad market is doing. Keep your eyes out on popular index when deciding whether to buy or sell intra-day.
  • High Frequency Trading
    High frequency trading (HFT) is a new type of trading that involves using computer algorithms and programs to make automated trades in the market.
  • What is a Trading Robot? Should I Use One to Trade?
• Forex
  • How to Trade FOREX – Beginners Guide
    The FOREX market is the most traded financial market in the world. What exactly is the FOREX? Can you really make money from it?
  • Trading Forex
    Do you love keeping up with current international events in the political and economic realm? Then you might be a good fit for being a currency trader. Here is how to start...
• Derivatives
  • Options
    • Options Trading: Call Options Explained
      Call Options Explained with example. Call gives you the right to buy a stock, but you are not obligated to do so. The contract is worth a certain amount of money which we will call extrinsic value.
    • Options Trading: Put Options Explained
      Put options are purchased when you feel the market is going to cool off. Let us go back to our real estate example that we started in part 1 to explain how a Put options contract works.
    • Options Trading: Why Trade Options?
      With so many different products on the market, why choose options? Here are a few compelling reasons: leverage, passive Income, risk management, diversification, small capital outlay
    • Components of an Option
      Learn about the components of an option. What are Underlying Asset, size of contract, expiration date, exercise price
    • Understanding Option Pricing Fundamentals
      Learn the fundamentals of options pricing. It is important that we clearly understand what factors go into an options premium or value. What is intrinsic value or time value?
    • Options Trading Examples
      We will now walk through an actual example of trading a call option and a put option. Going through will give us exposure to how a trade really works, and the profit versus risk of each
    • Options Trading Strategies
      Learn options trading strategies; covered call strategy to earn income, hedge to protect shares and use it to leverage
    • Options Trading Risks
      All investments carry risk. Although the risks are somewhat low in this example, the rewards are likewise comparative. What sorts of risks are associated with options trading?
    • The Covered Call Strategy
      The Covered Call Strategy is a simple and effective way to make money in the stock market that reduces current risk to share holders. It is straight-forward and lucrative for anyone who trades shares.
    • Trading Options Seminars: What You Will Learn in a Teaser Seminar
      Some may choose to buy a book and others prefer the person to person contact that can be had at an options trading seminar. What really takes place behind the closed doors of these elite training sessions?
  • CFDs
    • What are CFD's? Why Trade them?
      What are CFD's? Why Trade them? the leverage can be 20 times or greater that of the asset holder. With so many advantages attached with a Contract For Difference, they are definitely worth further investigation.
    • CFD Types: Direct Market Access (DMA) VS Market Maker (MM) The Pros & Cons
      Two major types of CFD models exist. One is called Direct Market Access (DMA), and the other is termed Market Maker (MM). They each have their own advantageous and disadvantageous. Here are the pros and cons of each
    • CFD Margin Requirements Initial and Variation Margin.
      Buying a Contract For Difference uses margin to create massive leverage. The two types of margin that exist are initial margin and variation margin.
    • CFD Trading: Calculating Overnight Interest Payments (Financing fees) with example
      Learn how to calculate overnight CFD interest (financing fees) for a long position. If we trade our CFD intra-day, we do not pay financing fees.
    • CFD Trading: CFD real life examples with calculations (Long & short)
      Here are some real life CFD trading examples. First we will examine a long CFD and then finish with a short example where we anticipate a drop in the market.
    • The Pros & Cons of Trading CFDs
      There are many reasons for an investor to trade CFD’s, and a couple of reason why they may choose not to use them. Here are a list of examples. A prudent investor will weigh out the pros and cons of this investment vehicle.
    • CFD Trading Risks: Learn the risks associated with trading CFDs
      Contracts For Difference have some unique risks associated with them, as well as some general dangers common to many investment types. Here are the top 7 risks associated with trading CFDs.
    • How to Choose the Best CFD Provider for You
      No doubt you want the best rates, the most reliable providers, trustworthiness, and a wide range of options on CFD’s. Learn how to choose the best CFD provider for you.
    • CFD Trading Top 5 Trading Mistakes
      These 5 mistakes are some of the most common ones that many CFD traders make. Avoid these and place yourself in the 10 or 20 percent of traders that are successful.
    • CFD Tax Treatment
      How do I tax my CFDs? It is gambling and therefore not taxed? Is it a regular business or is it a capital gains investment? What is the ATO Australia Tax Office ruling?
    • Learn How To Trade CFDs: Developing a system that should make us money
      Trading CFDs profitably require a careful risk management plan. Learn how to systematically look at CFD’s in bite-sized portions to develop system that should make us money.
    • CFD Trading Example Flight Centre (FLT)
      Here is a recent example of a CFD trade where I made 150% profit in 9 days. The company is Flight Centre (FLT).