The Art of Investing

For many years cities and nations have been doing trade with each other. As the years have gone by, the trade market has changed. Yet, the basics are the same. But it is different on certain parts. Through research, we have discovered that there are certain types of people who are players in this game of trading. Which becomes The Art of Investing. Find out more click bottom.

FundamentalsTop
Fundamentals are the basics of investing. When you look at your portfolio. There are entries called: fundamentals. Here is a list that you will find in your portfolio.

• Name
• Symbol
• Last Price
• Market Capital
• Average Volume
• 52wk High
• 52wk Low
• EPS Ratio
• P/E Ratio
• Beta

Name

In this area called: Name. Is the name of the Company Stock. This is where you will find all your investments or lists of investments according to the company that you want to invest into.

Symbol

This area called: Symbol. Is the abbreviation of the Company Stock which is on the stock market. It is a short-cut that is used by the SEC (Securities Exchange Commission) that gives a company its stock ticket to be traded in the open-market.

Last Price

This area in your portfolio is called: Last Price. This is the are where you will find what your stock or a stock that you want to invest into. Has its price list. This will describe the companies last price change since its first opening date. Or since the beginning of the week or before closing.

Market Capital

In this column you'll find each companies gross income or gross revenue since opening day. Or you'll find that it illustrates the companies earnings of total investment volume.

Average Volume

Here you will find information about each companies trading activities. You will discover who has the highest trade flow. This is where we believe you can make the most of your money in the stock market. The higher the volume in a companies trade flow. The more money can be made.

52wk High

In this area, you will find the companies last traded open/close. Which is the bid/asking price of a stock. This is where you can gauge a companies strategy. Here you can win the game of investing by looking for stocks that have a high price change. Here you'll find the companies historical buying. Note:companies that have a cheap price, are usually companies that come out as big winners in any portfolio. You don't have to follow the masses, in order make a money.

52wk Low

In this area, just like the 52wk High, above. This is where you will find the companies last traded open/close. Which is the bid/asking price of a stock. This where you can gauge a companies strategy. Here you can win the game of investing by looking for stocks that have a low price change. Here you'll find companies historical sales. Note:this is where you can make moves. It illustrates how much of stock any typical company has traded.

EPS Ratio

Here you'll find is what a company(ies) is paying out. Whether it be capital gains or dividends. Here you can gauge your long or short-term investing.

PE Ratio
In this section, you will find what a stock is typically doing. A PE Raito is; profit/expense ratio. What this is, is that a company that you want to invest into illustrates exactly what they're doing with their money. Its like, what a typical banker may ask you when you're trying to get a loan. Basically, its a company(ies) financial statement. It shows its cash-flow and net-worth. to figure this out? I will explain more on this in a later blog.

Beta
Beta is defined as:
A measure of the volatility, or systematic risk, of a security or a portfolio in comparison to the market as a whole. Beta is used in the capital asset pricing model (CAPM), a model that calculates the expected return of an asset based on its beta and expected market returns. Information via Investopidia.com.

What you will find, when you look at the Beta section is that, you can gauge whether a stock is a good investment or not. What is the stocks volatility is; it means that a stock can be very sensitive with earnings and expenses(or more of income and expenses,yet when it is towards businesses,earnings and expenses is what investors look for). Although, according to the market. A stock that is volatile is a stock that can be a high or a low risk. The higher the Beta, the higher the risk. Therefore, companies that have a high risk tolerance also have a higher pay-out performance. Look at the figure below.

You will find that as you read your investment portfolio. As we have listed above, the name of the stock, the symbol of the stock, last price, market capital, average volume, 52wk high, 52wk low, EPS, P/E and Beta.

Figure 1.1

The information provided above. Will help you to understand and how to read your portfolio. The above figure is an example of how your portfolio would look like. But, what you see above is a snippet from google.com/finances

Performance

Figure 1.2 Image courtesy of google.com/finance

In figure 1.2. You will find the listing to be almost the same. Yet, not all portfolio's are the same. But, in figure 1.2 illustrates the basics of what you would be looking at, at a portfolio. First, you have the name of the stock, the stock symbol, the last price, change, shares, cost basis, market value, gain, gain percentage (%), overall return.

As above, here's the list:

• Name
• Symbol
• Last Price
• Change
• Shares
• Cost Basis
• Market Value
• Gain
• Gain Percentage (%)
• Day's Gain
• Overall Return

Name

This is where you have the description of the company stock. The name of the company which you have invested into.

Symbol

This is the symbol of which a company stock you have in your portfolio. And its the symbol that is used in the SEC (Securities Exchange Commission) to be traded on the open market. Like the New York Stock Exchange (NYSE) or National Association of Securities Dealers Automated Quotations (NASDAQ) and Dow Jones Industrial (DJI), Standard and Poor (S&P) 500. More on these later.

Last Price

Here is the list of the price of the stock that was traded before closing.

Change

Here you will find information on a stock that was changed since the market had opened and after it closed.

Shares

Here is a statement of how much shares you own in any particular stock, ETF or Mutal Fund.

Cost Basis

This is an area where you will find that a particular stock is worth when you have the option to sell your stock. More on this later.

Market Value

This is a statement that describes your investment on which it is worth on the open market.

Gain

This is an are where it describes your investment on how much points a particular stock rose up or loss during the open market.

Gain Percentage (%)

Here you will find that a particular stock either have rose upward by a certain percent or fell to a loss by a certain percent.

Day's Gain
In this section of a portfolio. Is the day's gain. It illustrates the performance of a stock according to the day's trading. Whether a stock rose higher in points or fell lower in points.

Overall Return

In this area, you would most likely to see which of your stock has performed by issuing capital gains or dividends that are being paid-out or an illustration on how many transactions were made during the trading date or during the open-market.

Basics

These are some of the basics of reading your portfolio. Here you can either gauge which stock, ETF's or Mutual Fund you can invest into. You can work it out to what kind of return you will get on your investments. Google Finance is a helpful tool to plan ahead. Since the stock market is always volatile. You need a safety net to be ready when things get sour. And just like with anything in this world. You need the the fundamentals to gauge your skills and to become a professional trader or investor.

The difference between an investor and a trader. Is that, 1) an investor; invests for long-term.

2) a trader; invests for the short-term.

So, if you have a mind-set to invest into your retirement. Then you are an investor. If you seek to have income today. Then you are a trader. There is nothing wrong between theses two. Its just that, if you are a trader. Then be prepared to pay taxes on your investments. And to be a trader, you have to have a higher investment account. To be an investor, you can start out investing with as little as $100 dollars or less. As to which being a trader, you have to have at least $500-$1,000 dollars. To begin making money.

Market Trends

Moreover, you have to know what Bear Markets and Bull Markets are. To me; Bare Markets are the ones that make the most money. That they're like investors. They gather up all their investments and wait until winter and hold on to it. And when spring comes around, then sell every investment that you built on to make a profit. As to Bull Market, you gather as much investments as you can, at the same-time short selling your way to make profits. Yet, that's what I thought. Until I learned more about investing.

Bear Markets and Bull Markets are a market trend of a stock. If a stock goes down its on the Bear Market trend.

If a stock goes up. Its on the Bull Market trend.

But, not all stocks behave the same way. All stocks goes up and down, like an ocean wave. You just have to find the right time to get in and get out. Or if you do get in, how long will you hold onto that stock?

Tip: If you are going into a stock to hold for the long-term. Invest into stocks that pays out huge dividends.

Shareholders

Not everyone likes shareholders. Shareholders are people, just like you and me. Who own a portion of a company by investing their dollars so that people can have jobs and businesses thrive. In society, people are blinded by the fact that being a shareholder has its advantages of shutting down a business. Not so much as bankers do. Yet, most investors or shareholders act like bankers. And that is one of the reasons that makes a shareholder look bad.

In reality, shareholders are investors to a company. For example; if you were to put your money into your friends business. You are a shareholder of that business. You might consider yourself as a loan-or, yet you have a part ownership of the company. If the company does well, they pay you back for the money that they borrowed. Yet, here's the difference between a Banker and a shareholder.

A banker; is a person or an entity who gives a person or a company money to start off with. As to which a shareholder; buys a portion of a company via stock ticket or a promissory note in which the company is selling for.

Here is the definition of a banker and Shareholder:

A Banker:A special type of banker that is created by a group of banks. Bankers exist for the sole purpose of servicing the charter banks that founded them. These bankers do not service the public in any fashion, but are designed to provide community banks that would usually only be available to national and international banking conglomerates.

A Shareholder: Any person, company or other institution that owns at least one share of a company’s stock. Shareholders are a company's owners. They have the potential to profit if the company does well, but that comes with the potential to lose if the company does poorly. A shareholder may also be referred to as a "stockholder".

That is why the economy needs Shareholders or Stockholders to keep businesses afloat, instead of bankers. Yet, be warned. Bankers do mask themselves as Shareholders or Stockholders of a company. A banker looks to see if a company or a business will fail.

Making Your Money to Work for You
You can make your money work for you. The matter of it working for you, is based on the knowledge that you have about a certain company that you want your money working with to work for you. Millions can be made, if you find the right vehicle to use.

Here are some of the investment models that you can use:

• TD Ameritrade
• E-Trade
• Sharebuilder
• MotleyFool
• T. Rowe Price
• Scott Trade
• Trade King

Just remember: Do your research before opening an account.

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