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Written by Anthony Green
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Closing Price
The final price at which a security is traded on a given trading day. The closing price represents the most up-to-date valuation of a security until trading commences again on the next trading day.
Dividend
A portion of a company's income that is paid out to shareholders on a quarterly or annual basis. The Board of Directors declares dividends. Dividends may be in the form of cash, stock, or property. Most secure and stable companies offer dividends to their stockholders. Their share prices might not move much, but the dividend attempts to make up for this.
Earning Per Share (EPS)
Suppose there are 2 companies- A and B. Both earn $100, but company A has 10 shares outstanding, while company B has 50 shares outstanding.
Which company's stock do you want to own?
It makes more sense to look at earnings per share (EPS) for use as a comparison tool. You calculate earnings per share by taking the net earnings and divide by the outstanding shares.
Using our example above, Company A had earnings of $100 and 10 shares outstanding, which give an EPS of 10 ($100 / 10 = 10). Company B had earnings of $100 and 50 shares outstanding, which equal an EPS of 2 ($100 / 50 = 2).
So, you should buy Company A with an EPS of 10, right? Maybe, but not just on the basis of its EPS. The EPS is helpful in comparing one company to another, assuming they are in the same industry, but it doesn't tell you whether it's a good stock to buy or what the market thinks of it.
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Written by Anthony Green
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If you want to start with stock market trading, you must know some of the aspect related to stock market. With no knowledge of stock market and the careful planning, there is very little success for stock traders. To find success in the stock market, a person needs to know the attributes and have a stock trading system. They are crucial to your stock market trading business and making a profit could be extremely easy.
Try to develop an edge and base your trade on technical reasoning rather than on hunches and long shots, using tools available. You will be successful, if you can develop an edge (however small). Unsuccessful traders emphasize on the -
first part of a trade – part accumulating information to decide what to do in the stock market and leave the last part of a trade – part involves getting out of a trade
Strategies
Swing trading Strategy
The reward/ risk profile of the stock trade is no longer the same. It may be best to pass on the trade, if a stock gaps over 3 percent. Enter one fourth of the intended position size, if a stock gaps 2-3 percent and if a stock gaps half percent, monitor the stock’s behavior and enter half of the intended position size.
Day trading strategy
When people use the term "day trading", they mean the act of buying and selling a stock within the same day. Most of the people incorrectly conclude that a day trading is a loser’s game when they hear statistics that claim that over 75% - day traders lose money. Exit the position, if a stock hits a new low or new high for the day if you are short. There is no purpose in widening stops to accommodate a stock moving in the wrong direction because it is intended for initial moves. Get out if the stock breaks a low as you can reenter the trade if it triggers again.
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