HOW TO CHOOSE HOT IPO’s

A limited liability company that desires to expand the frontiers of its business is permitted by law to come to the public to raise funds. They can do so by declaring an initial public offering. The investing public is encouraged to buy shares of the company depending on allotted provisions of the company. However, it is incumbent on you to do your due diligence bearing on the claims of the company in its prospectus. To be able to discern the viability of the company, please take into consideration the following tips:

Tip 1

What is the purpose of invested funds? Find out what the company intends to do with the funds raised? Will the company be embarking on developmental projects, expanding the frontiers [Branches] of the company, is the fund going for procurement of equipments and personnel development, or is it going to be used to service debts arising from bad company policy/strategy, Take note.

Tip 2

Is the company indebted, This is very important, find out if the company is solvent? The financial position of the company will be reflected in the balance sheet, if the debt of the company is much, It can really turn out to be a serious problem for investors, since their funds can end up being channeled to servicing debts instead of using it for what it was proposed for.

Tip 3

Low share price. Note that if the offer price of a stock is low and the company has good fundamentals and technical strengths, investors will be at advantage. First, you can buy large quantity of the shares. Second, capital appreciation can double or triple your returns on investment.

Tip 4

What is the earning potential of the company? The financial earnings projections of the company speaks volumes of its ability to give high returns to investors. You must assess the earning potentials of the company vis-à-vis the bonus potentials.

Tip 5

Financial Summary Report. This shows the company’s financial history and growth rate for previous years. Things to look out for includes Gross earnings, Profit before Tax, Profit After Tax, Share capital net assets or total assets, Dividends possibilities, Earning Per share and per earning to ratio.

Tip 6

Pedigree of the company. Is it a brand or does it has the prospect of a brand? What is the antecedent of the company in terms of past performance? You must note the changes and developmental phases, does it have a track record of previous excellent performance.

Tip 7

Board Members. Check out the caliber of people on the board of the company, what is their pedigree, are there seasoned and brilliant administrators on the board, men who are versed in the art of running corporations. Also find out if the board members hold substantial stake in the company because that will compel them to sit up to manage the organization very well, because they won’t want to jeopardize their stake in the company.

Tip 8

Legal Cases. You must investigate if the company has court cases to settle, because it can lead to closure, liquidation or outright bankruptcy. Any legal proceeding in a court; can hinder the progress of the company.

Adhering to these tips will greatly enhance your possibilities, the next time you receive that prospectus, ensure you take time to browse through with the understanding of a prepared stock’s trader.

Notice - You are allowed to publish this article in its entirety provided that author's name, bio and website links must remain intact, active and included with every reproduction

Stock Trading- 5 Kinds Of Investors

© John Efetobor. All Rights Reserved http://stocktradingrevolution.blogspot.com

Investing in stocks is an art that has gained tremendous acceptance in recent years globally. Today, many a investors do trading online employing the services of stockbrokers via the internet, there are those that depend on online robots programmed to buy and sell stocks depending on trends per time. A vast majority of investors do offline investing which is more accepted, most investors are at home with offline investing since they are able to monitor almost directly their portfolio with their stockbrokers.

Generally, whether you do online or offline stocks trading, investors fall into five categories and they see stock investing from different perspective which I shall be highlighting in the course of this article. So let’s get you started, shall we?

SENTIMENT DRIVEN INVESTORS

The first kind of investor that form the bulk of the investing public are sentiment driven stock investors. These are men and women who depend on rumors, hype, manipulated articles of investment stock reports on some investment newspapers and magazines relating to specific stocks and the prediction of so-called experts for their investment choices.

EMOTION DRIVEN INVESTORS

Emotion driven investors are those who are emotionally attached to:

1. Certain stocks because they made profits from such previously

2. Certain stocks because they fall into a sub-sector or industry for which they have soft spot for.

3. Certain stocks because they have fallen in love with the products or services of the company.

4. Certain stocks because of their temperament and beliefs.


TRADITIONAL DRIVEN INVESTORS

Traditional driven investors are folks whose minds have been moulded by long years of outdated trading patterns that are no longer relevant in the present times of jet-age information. They refuse to accept modern sophisticated stock trading trends.

KNOWLEDGE DRIVEN INVESTORS

Knowledge driven investors Intelligent Stock Trading. They are those who by reason of knowledge and understanding gained by consistent personal education in stock trading trends have been able to reduce risk to the barest minimum. Knowledge driven investors take responsibility for their trading actions and decisions; they don’t entirely leave their stock picking choices in the hands of stockbrokers, because they recognise that courses like Market Master Trading Course. have proven invaluable and have equiped them to be able to analyze and pick stocks that sells. They have a direct input in the direction of their portfolio; they see the input of a stockbroker and analyst as complementary rather than authoritative.

In conclusion, I submit that with what is obtainable worldwide as far as stock trading is concerned, it will be of tremendous benefit to you, if you can spare some time and money to invest first in stock trading education, because in the long run, you shall be better off for it.


Notice - You are allowed to publish this article in its entirety provided that author's name, bio and website links must remain intact, active and included with every reproduction.

Stock Trading- 6 Keys That Influences Investors Sentiments Globally

© John Efetobor. All Rights Reserved

It is important dear stock investor that you understand that irrespective of what stock trading experts have put forward as the sure-fire reasons responsible for picking hot stock’s, one foolproof truth that you need to understand, is that it is investor’s sentiment towards a stock that ultimately drives the price of a stock either up or down.

Therefore, it is imperative that you should familiarize yourself with this great but mostly overlooked fact that has a great influence on the direction to which investors tilt their focus. If investors are favorably disposed towards a stock, they will generally patronise a company's stock, conversely, they will demonstrate indifference to such a stock if their sentimental drift says otherwise.

1. One of the principal reasons my friend you should not forget, that attract
investors towards a particular stock, is that investors always react favorably to companies that has consistently given increased dividend and bonus to their shareholders.

2. When a company’s product or service is widely accepted by consumers,
investors believe that such a company will always produce high returns for investor’s
portfolio.

3. Whenever an institutional investor invests into a company, investors' interest are awakened because they think that the price of such a company most likely will appreciate, so there will be rush to buy the shares of such a company.

4. High earning per share has always attracted the attention of investors. When you discover a company’s profit after tax standard is higher than the corresponding previous year, know that investors will react positively; the effect is that the price of the stock will rally upward.

5. When a well respected expert predicts or picks a stock for his list, the word
goes round quickly; people begin to buy more of that stock which invariably jerks up the price of the stock. Don’t you ever undermine the power of word of mouth advertisement, its influence is awesome.

6. The announcement of the latest trading style or trading software has a great influence on the sentiments of investors. The way investor's sentiment works is amazing, when information gets to forums and communities online, or an investment newspaper carries a bold headline like... Stock Trading Robot Capable of Cranking High Returns to Your Bank Account... as its headline, investors reacts the way ants are drawn to sugar.

Understanding the underlying reasons responsible for the direction or flow of the
sentiment of investors is a great and valuable asset that you must cultivate; keeping tabs on the factors that influences the sentiment of investors, will be an invaluable tool that will always assist you to enlarge your portfolio.

Stock Trading- Tips On How To Avoid Losses Trading Stocks

© John Efetobor. All Rights Reserved

There is one undisputed law that every rational investor, stockbroker and expert analyst globally have all accepted, and that is price of stocks rises and falls depending on the prevailing indices per time. By that I mean that stock price rises and falls every now and then due to market activities and forces that take place within and outside of the capital market.

If this is true, then every investor must be abreast with certain undercurrent negative and sometimes very dangerous human emotions that lurks around ever ready to pounce on unsuspecting investors, leaving behind bitter tales of woes in the mouth of it’s victim, Intelligent Stock Trading. can help you avoid loses. Let’s begin to itemize these danger signals or red flags if you like.

IGNORANCE.

Research have shown that when an investor is ignorant of basic stock trading skills that affects the swings of the prices of shares on the stock exchange, they always end up being slaughtered as chickens in the chicken farm. If you are interested in improving your stock trading skills, try reading Secrets Of Successful Traders and How and how they succeeded in yheir career.

ENTRY AND EXIT SKILLS

When an investor is ignorant of the best time to buy a stock and the best time to exit from such stock, they end up having their fingers burnt severely. Per time, every stock has its period of performing well, you must find out the suitable and fitting time to invest in a stock. Every stock has a peak price when equilibrium is achieved; at that point the rising of stock prices begins to dip. How do you know, the stock at this point ceases to gain the minimum 5% capital daily appreciation. If you are a trader, this is the best time to bail out.

GREED

Every investor including you that is reading this write-up is like the proverbial Oliver Twist, we always want more whenever we make profits from our trading, and it is a human emotional weakness every investor must watch. Let me paint a picture to drive home my point.Mr. Smith (imaginary) buys Fidelity shares for $4 and the price rose to $12. The increase came sooner than his projected time and price, he had projected $10, but because of the emotion called greed, he defied the wise counsel of his broker cum analyst to sell at $10, without understanding the factors that was driving up the price of the stock, he thought the upward rise will continue to $20, unknown to him the stock had reached its equilibrium at $14 and suddenly began to dip at a frightening pace down to $2. Please remember you cannot always beat the market.

OVER DEPENDENCE ON STOCKBROKERS

Stockbrokers are fantastic people, in my world; the importance of a stockbrokers cannot be overemphasized. My organization work hand in hand with them.There are definitely stockbrokers that knows their onions; nevertheless I submit that to overly depend on them, can sometimes be detrimental to the health of your portfolio. Some stockbrokers will offload their ignorance, fears and burden on you if they notice you’re equally ignorant of stocks investment skills.

In this information age, it will be to your immense benefit, if you can sacrifice time and cash to posses useful stock informational materials that have the capacity to turn things around for you.

Stock Trading- Stock Trading Sentiments You Must Avoid

© John Efetobor. All Rights Reserved

Four kinds of sentiments you must avoid as an investor if you want to make fabulous wealth from the stock market.

1. Sentimental attachment

2. Sentimental Rumor

3. Sentimental feeling

4. Sentimental hastiness

Sentimental attachment is when you have fallen in love with a particular stock to the point that you can no longer be objective in terms of current market facts that counts against one patronizing such stocks, listen dear investor you cannot afford to fall in love with any equity as a stock trader, it is absolutely dangerous to the health of your portfolio. Please avoid it like a rat avoids a cat, Do Intelligent Stock Trading.

Sentimental rumor. Avoid at all cost, the dangerous habit of trading or buying stocks on the basis of unsubstantiated rumor, note rumors are good when they’re supported with solid fundamental facts. Sentimental rumor can be liken to the herd mentality... follow the direction that everybody is following... Don’t form the habit of trading or buying stocks because you see everyone buying a particular stock, please know the true facts behind the rush before you pitched your tent. Get Market Master Trading Course. It will transform your attitude to stock trading.

Sentimental feeling. Avoid trading or buying stocks on the basis of what you feel about a particular stocks, My wife loves Close-up toothpaste with a passion but that cannot translate to making Unilever a sure-fire buy if the company does not have a strong fundamental credentials to encourage me to do so. Your feeling only counts if it is hinged on sound trading ethics or know-how.

Sentimental hastiness
The hasty spirit makes one to act irrationally, when it comes to making quality decision. The fact that you bought a stock for 15 and it begins to make a loss does not mean that one should rush to sell. I bought both Lasaco and Cornerstone insurance for 3.15 and 4.28 respectively on the 11th of July, 2007, by September both had dipped to 2 and 3, I never panicked because I knew two things. One, that prices of stocks rises and falls according to the dictates of demand and supply. Secondly, I knew by available indices before me that the next sector that will experience a bullish session will definitely be the insurance sector on the basis of solid facts that were available to me, many investors panicked and sold, they recorded huge losses in the process, by the end of November the Federal Government had released the financial reserve of insurance companies back to them. I sold Lasaco 4.85 and cornerstone at 5.20 and both were still rallying up as at the time of writing this article in early January, 2008.

Stock trading realities supports that before you invest in any stock, you must first and above all things sit down and do a thorough analysis on all fronts before staking your money to a stock, this will aid you to be composed and confident. Your trading should be based on sound foolproof facts and not presumptions. I want you to Profit From Day Trading Penny Stocks.