Your Questions About Successful Trading Companies

Mary asks…

what are good companies to purchase stock from?

What are some good companies to purchase their stock ? What’s the symbol of the company and what’s its field of business? Thank u

John answers:

I see that you are about to do something that you will regret for a very long time here. Asking for FREE, Off-the-street advise is a highway to disaster and is something every beginner MUST avoid! If success in the stock market is as easy as posting a question like this here, why are so many people still poor??

There are quite a number of things you need to learn before you can even start thinking of the stock markets …

1. You need to understand how the stock market works and what it is exactly about.

2. You need to know what are the different styles of trading in stocks and shares.

3. You need to read about why so many people lose their shirts in the stock markets so that you can avoid their mistakes and also decide if this is a risk you want to take.

For all these issues and more, you can read about them from some of the articles that I wrote at http://www.mastersoequity.com/articles.htm

After you are adequately armed with the basic concepts and ideas, you need to know how to find profitable stocks to trade or invest in. You can do that the easy way by subscribing to stock pick services (example http://www.stockpickmaster.com ) or you can learn to use charting tools and softwares to find stocks with parameters that you can pre-define. (example http://worden.mastersoequity.com/ )

Remember, the slogan “Just Do It”, Just won’t do for the stock markets. If profiting in the stock markets is as simple as buying a single stock , then why are so many people still poor?

After you have all the above mentioned knowledge, you need to ask the following golden questions before you can decide whether a stock is worth buying or not :

1. Why are you of the opinion that this stock will rise?

2. Is your opinion valid in the first place?

3. When are you expecting it to rise? Can you hold on for that period of time or longer?

4. What is your expected entry price? After what price would your expected profit margin be too thin to enter upon?

5. Where is your expected stop loss point? What is your stop loss point based on? Where will you tell yourself that it is time to take a loss and get out?

6. Where is your expected profit taking point? What is your profit taking point based on?

7. Does the way you are buying the stock allow you to hold on until your expected profit taking point?

8. How much of your money should you dedicate to this one trade?

9. What is the level of primary, secondary and idiosyncratic risk you are undertaking when deciding how much of your fund to use?

10. What is your cashflow need? Does your cashflow needs allow you to hold the full lifetime of the stock?

After you are able to answer all these questions confidently, THEN you are ready to… PAPER TRADE your stock strategy. Yes, even at this point, you are NOT READY to trade for real. You should trade on PAPER for at least 6 months and become consistently successful BEFORE you take your stock strategy into real life.

Then.. You are ready to start… But there is still no guarantee of success as paper trading is very different from real trading. You will need another maybe 1 year or 2 trading very little money and be consistently successful BEFORE you are ready to increase your stakes.

So, as you can see, success in the stock markets is not easy at all the the less knowledge you have, the more risk you undertake. I lost hundreds of thousands in the stock markets before I become successful.

Take heed and good luck.

All in all, investment and trading is a lifelong education and non stop learning. No one is ever done learning and catching up with changes in the markets.

If you care to read about how I went from completely broke to retired millionaire trading stocks and options by 28 years old, you can go to http://www.mastersoequity.com/

Hope these information helps.

Http://www.optiontradingpedia.com/

http://www.mastersoequity.com/

.

Donna asks…

What do companies look for in a prospective area?

I’m doing research for a company called AEON, and I need to know what they would look for in a community before building a supermarket, like Jusco, there.

John answers:

They would want to look at total retail sales for the trade area of the community.

They would also look at:

1. Consumer spendable income per capita
2. Grocery spending per capita
3. Population trends for the area served by the community.
4. Any signs of growth in the market from new housing starts and new subdivisons.
5. Any quantitative and qualitative data on the competitive stores.

There could be several other factors. They also may have other particular demographic and lifestyle statistics that they can index to their other stores (especially the most succesful ones) to see if the area matches up demographically and lifestyle wise with their other successful stores.

Helen asks…

What are the advantages of public limited company advantages and the disadvantages?

What are the advantages of public limited company advantages and the disadvantages?

John answers:

A public company has several advantages. It is able to raise funds and capital through the sale of its securities. This is the reason why public corporations are so important, historically; prior to their existence, it was very difficult to obtain large amounts of capital for private enterprises. In addition to the ease of raising capital, public companies may issue their securities as compensation for those that provide services to the company, such as their directors, officers and employees. While private companies may also issue their securities as compensation for services, the recipent of those securities often have difficulty selling those securities on the open market. Securities from a public company, typically have an established fair market value at any given time as determined by the price the security is sold for on the stock exchange where the security is traded. Another advantage is an increased public awareness of the company because IPOs often generate publicity by making their products known to a new group of potential customers.

Subsequently this may lead to an increase in market share for the company. An IPO also may be used by founding individuals as an exit strategy. Many venture capitalists have used IPOs to cash in on successful companies that they helped start-up.

Even with the benefits of an IPO, public companies often face many new challenges as well. One of the most important changes is the need for added disclosure for investors. Public companies are regulated by the Securities Exchange Act of 1934 in regard to periodic financial reporting, which may be difficult for newer public companies. They must also meet other rules and regulations that are monitored by the Securities and Exchange Commission (SEC). More importantly, especially for smaller companies, is the cost of complying with regulatory requirements can be very high. These costs have only increased with the advent of the Sarbanes-Oxley Act. Some of the additional costs include the generation of financial reporting documents, audit fees, investor relation departments and accounting oversight committees.

Public companies also are faced with the added pressure of the market which may cause them to focus more on short-term results rather than long-term growth. The actions of the company’s management also become increasingly scrutinized as investors constantly look for rising profits. This may lead management to perform somewhat questionable practices in order to boost earnings.

Carol asks…

How can I begin promoting my company to the corporate world?

I’m asking this one on behalf of my dad. He runs a successful company promoting the strategy game of Go- Working for many years as a teacher the transistion to educational events has been much easier than corporate. Can anyone suggest a way to branch out bringing this positive work to companies too? The company is http://www.ZenMachine.co.uk

With the number of institutions praising the work ZenMachine has done and the backing of MPs and education professionals what is the next step?

The project works but education doesn’t have the money to take the business to the next level – I am attempting to promote the company but it’s not as easy as I would have thought!
The company has a website www.zenmachine.co.uk and is well known it the education environment with projects like the National Academy for Gifted and Talented Youth… the problem is how to expand into corporations. I think it would be very well received in the IT industry but we don’t know who to contact or how to do it…

John answers:

Figure out how the corporate community can use this game in their environments. Get an understanding of which corporations this would work with, possibly even which departments would use this. Develop some articles that would promote the attributes of your software and submit them to trade magazines that would be read by purchasers in the departments of those corporations that would use the software. Consider developing limited access trial versions for those corporate departments to try out (find out who would be responsible for purchasing). Network with people in these departments at industry events. Sign up as a vendor at those events too in order to have on-site demonstration of the software to potential buyers.

David asks…

What does it mean when the employer tells you that they want for you to meet the team?

I had two successful interviews with the same company. First, with the HR Recruiter and lastly, with the VP handling the department for the position I interviewed for. After a week I get a call back from the recruiter telling me how the VP would like for me to meet the team and to schedule the best availability to come in this week.

Does this mean I got an offer?

Thanks!

John answers:

I worked for a Fortune 400, publicly traded company and whenever I met with a VP, it meant I was going to get the job unless I REALLY blew it in the meeting. But now I work for a private company and meeting the team means you have passed the first round, but if key personnel don’t put their stamp of approval on you, you’re not going to get the nod. I would attend the “meet the team” meeting relaxed and ready to do just that, “meet the team”. This is the group you could potentially work with, so get to know them just like they are trying to get to know you. Take a look at Dale Carnegie’s, “How to Win Friends and Influence People” for some great tips on first impressions and interaction with the group. Good Luck!

Powered by Yahoo! Answers

This entry was posted in Uncategorized. Bookmark the permalink.

Leave a Reply

Your email address will not be published. Required fields are marked *