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making money on stock market

3 Methods for making money on the stock market

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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

starbucks stocks split history

Starbucks stocks still a safe investment?

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starbucks stocks

Hi guys,

 

Today we are going to take a look on Starbucks stocks. We are going to look at three things.

 

Number one:  Stock performance of Starbucks

 

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

 

Number three: Speculation on Starbuck stock price

 

Starbucks stocks performance

Starbucks stocks price movement

Starbucks stocks price movement. Source: finance.yahoo.com

If you look at the chart, you will notice that the stock price movement has been really small in the last two weeks. Which means that the current trend of Starbucks stocks is sideway’s. It doesn’t really go up big or go down big.

 

So far this year Starbucks stock price hasn’t performed well compared to last year. But it didn’t performed worse as most of the oil companies. Since the stock split last year, the price value of the starbucks stock has increased with roughly 23,67% .

 

If you take  look again at the last two weeks performance of the starbucks stock price it seems that we are about to change the trend. Meaning that we might go up again. The volume of trading starbucks stock have dropped significantly. As you see, the lower the price go , the lesser investors are willing to sell their  stocks.

 

How is the company doing in term of business?

 

According to their last announcement on 11 August 2016, Starbuck is going to expand their distribution center with a extra of 1.2 million square feet. With this expansion, the distribution centre capacity will be increased with 35%! So this means that Starbucks is expecting that their business will grow more. Which is good news for investors like us.

 

So let’s take a look of how the business was doing in the third quarter. We see that sales in the US has increased with 4%, In China had has increased with 3% and in Europe there was a decrease of 1%.

The net revenue grew with 7% to a record of 5.2 billion dollars. And 474 new Starbucks stores were opened in this 3rd quarter.

starbucks stocks q3 results

source: investor.starbucks.com

So we can safely say  that the business of starbucks continued to grow. But it hasn’t grow as much as it did in the previous quarters. If you look at that chart. You will see that sales growth has been decreased. According to Howard Schultz , the CEO & chairman of Starbucks,  sales growth will back on his normal track of 5% or more soon. So how is this going  to reflect on the future stock price?

 

Speculation on Starbucks stocks price

 

When the third quarter results of starbucks was release, the stock price went down with 4%. And since then it kinda got stuck on that price level of 55 usd.

After the dividend pay out of Starbucks earlies in august, it seems that stock price is consolidating at a price range of 55 dollars and 56 dollars. If  this is so , then it means that the price range of 55-56 dollars will be the new support level for the starbucks share price. The only way to get this confirmed is to watch the stock price of Starbucks bounce off that price level a few times. If this going to happen then we may  see that the stock price of  starbucks will move into a bullish trend. And i believe that once the stock price close above the 60 dollars. That we will go into a strong bullish trend.

 

If you are looking for a long – term perspective. I think that the fundamentals of Starbucks stocks is solid and with stores expansion and adding new products such as recently gluten free products and Almond milk. I am confident that the Starbucks share price will eventually go to newer heights.

 

And one more thing… If you had bought the  100 Starbucks stocks  at ipo for a total investment of 1700 dollars in total. ( that was the introduction price). Then you would now own more Starbucks stocks because of the stock splits, that has happen a few times. But your current value would be around 300.000 dollars. As long as Howard Schultz remains CEO , then we all will be fine.

starbucks stocks split history

starbucks stocks split history

 

 

Source: investor.starbucks.com

 

Newsource: https://www.thestreet.com/story/13676975/2/almond-milk-other-non-dairy-products-could-stir-up-starbucks-profits.html

 

finviz.com

Current Starbucks stock price:

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