Posts

making money on stock market

3 Methods for making money on the stock market

Ever wanted to make money whenever and wherever you want? Start trading now and receive a 25 dollar welcome bonus

making money on stock market

Today i am going to share with you my knowledge on making money on stock market.

Making money on stock market: Method 1

The first method on making money on stock market is to invest in stocks for the long term.  like Warren Buffet. Look for a good company and invest for long term. Every time a company performs well and the results are better than expected then the value of the stock of that company will increase. So you will have to do a good research on that the company and the market that they are active in.

When you do a research you have to look at the potential of what a company can be. After all investors invest because they believe they will make a good profit in the future. So when you invest in a company make sure you know exactly what the potential of the company is and know if the current CEO and his/her management team can make this potential come true. As you all probably know, a company can only grow if they have a good CEO with his/her management team.

How to recognise a good management team?

One of the best way to know if the management team  is good, is to check the company’s quarterly results and see if the management team of that company  have achieved their goal or  did they do better than what wall street analyst had  expected. Most companies have we website with a section investor relations. You can find the quarterly results on the investor relations section. Or just google for it.

Now a example of a company that has a clear potential is Starbucks. Starbucks potential is that they can open thousands of store in the future where consumers can enjoy their Starbucks products. So it is easy to understand that the more stores they open, the more money they can make. And thus the value will go up in the future.

A example of a company that doesn’t have a clear potential is Twitter. For me I don’t see or understand what the potential of twitter is. Like all social media, their revenue is relied on ad revenue. To earn more ad revenue, twitter needs more unique users. At this moment I don’t see how twitter is going to create a large base of unique users compare to Facebook and snapchat.

 

Making money on stock market: Method 2

When you buy a stock, you can buy a dividend stock. A dividend stock gives investors a piece of the company’s profit. In the video How make to make a passive income with dividend, i explain more about this subject.  

Making money on stock market: Method 3

The third method on how to make money stocks is by going short. You probably have heard the term of going short on the market. This one of the few ways of making money when the stock market goes down. Meaning that you can earn a profit when the stock price value goes down.

So how does this work? When you are going short, you are making a deal on contract with a buyer. In this contract you have a deal that the buyer will buy the stocks of you for the current stock price where you have just gone short. So if the price dropped in the future then you are making money. However if the price goes up then you will be losing money. Because when you go short , your broker buys the current stock and hold it for you. So when the stock price goes up , you will have to pay the difference to your broker. This procedure is called margin call.  Each broker have their own margin call policies. In  margin call you have a deal with your broker , that if price goes over % of the stock price value of your short position. Then you have to pay for the difference.

So guys these are the three methods were professional traders, investors make money on the stock market. If you have any questions or remarks, please put it in the comments section. We will get back to you as soon as possible. Thanks for reading and good luck with making money on the stock market.

Read more about CFD Trading: How to make money with CFD Trading

facebook stock

Facebook stock is moving into a Bullish Trend

Facebook stock

Hi guys,

Today we are going to take a look on Facebook stock. We are going to look at three things.

 

Number one:  Facebook stock performance

 

Number two: How is the company doing in term of business

 

Number three: How to make money on Facebook stock

 

Facebook Stock Performance

Facebook stock screen-shot-2016-09-06-at-15-33-49

Facebook stock screen-shot-2016-09-06-at-15-33-49

 

Facebook stocks have been doing good this year, in comparison to  the general stock market is facing challenges during the year. Facebook stocks remained steadily in a bullish trend. How ever if you look at the table.

You will see that FB stocks are currently moving in range of 123 usd and 126 usd. Which is a pretty small price range movement. And with this movement it indicates that we are in a sideway trend.

 

How is Facbook doing in term of business?

Facebook mission is to give people the power to share and make the world more open and connected. So far Facebook has been doing really well to executing that mission. If you take a look at the table then you will that they are succeeding in getting  new people to use their social network platform and getting more people to stay engage and being active on their platform.

Facebook stock active users screen-shot-2016-09-06-at-15-42-29

For example in June their daily active users rose to 1.13 billion active users. That is pretty impressive. If you compare that to the competition like twitter, who are struggling on getting more daily active users.

For Facebook business it’s that the more active users they have , the more advertisers are willing to spend. The more profit can be made which leads into a increasing value of the Facebook stock.

And Facebook is trying to get more users all over the globe and building his presence in the 3th world countries. So that as soon as people have internet they can open a Facebook account. And they are  doing that by offering free internet in those countries.

Recently a rocket exploded at SpaceX. That rocket was supposed to launch a new satellite for Facebook. That satellite was suppose to give internet to area’s where it is difficult to get internet. With this rocket explosion it will probably cause a delay in the plans of Mark Zuckerberg  to get new users for his platforms.

Back the business side. Fb is has increased his revenue in the 2nd quarter with 68%. And if you continue to look at the table then you will see that in overall they increase their revenue and profit.

Facebook stock balance screen-shot-2016-09-06-at-15-42-02

Facebook stock balance screen-shot-2016-09-06-at-15-42-02

 

Speculation on the Facebook stock price

 

Currently Facbook is still in the sideway trend but is slowly moving into a bullish trend. Facebook was moving in the price range of of 123 USD and 126 USD. But recently is has breakthrough the resistance level of 126 USD. But it doesn’t to be a strong push. So let see if Facebook is going towards the close of above 127 USD. Before we can confirm that it is in  a bullish trend. So for right now I am staying on sideline for a bit or i might buy  few CFD’s on Facebook shares. Because those Facebook CFD’s shares gives me a higher profit then with the normal Facebook stocks. For more info trading Facebook CFD’s share click here: Plus500 stocks CFDs. And if you want to know more about Plus500 then check our brokers review.