The most important reason why investors seek information regarding market capitalization of a company before taking investment decisions is the commonness in performance of similar sized companies. Understanding market capitalization is no big deal, it’s the total number of outstanding shares of a company multiplied by the current stock price. In this post I will try to explain the key benefits of investing in companies according to their market capitalization.

This article attempts to bring to you knowledge of how to avoid losses that occur due to some common investment and trading mistakes. Many of us who invest in the market use techniques like stop loss etc to avoid major losses but still suffer from losses though they might be just minor losses. The strategy of using pullbacks as a timer to prepare to buy into a stock is a very successful strategy and utilizes [...]

This article attempts to enlighten the reader with a few well chosen tips to ace the stock market using stop loss orders. In this post we will talk about stop loss strategies and how to deal with capitulation. These strategies if used together can reap riches for you and the best part is that you will never risk beyond what you should.

The Bear market in 2008 and the first half of 2009 shook many investors. They sold their mutual funds and stocks without thinking and rushed with the crowd. Since then the S&P index has doubled. Missing a golden opportunity which could have been milked, many investors are still waiting on the sidelines. Should they wait more or is it time to start investing in stocks?

Which is a better investment option between common stock and preferred stock ? An investor who would want to stay safe and not take any risk will go for preferred stock over common stock. He would take refuge in its safety and overlook its low profitability. An average investor on the other hand might find common stock more attractive and may be willing to take the risk of common stock in hopes of high returns.

Traders across the world would agree that ‘market timing and staying in the market’ both are important in their own way. Studying the market to determine the right and almost perfect time to exit is important. Most investors and traders keep waiting and holding on to stocks thinking that the market will appreciate. Speculation may lead to profit or may also lead to loss. Hence, it is important that one strategically exits a particular stock, [...]