What Stock to buy on 30th December 2016?

Wish You a Happy and Prosperous New year

Dear Friend!

Sorry, I am not a day trader or margin trader. I am a value investor. Therefore I cannot give advice what stocks to buy for a single day. The stocks that I buy and advise others to buy are meant to be held for lifetimes. However market conditions often make such stocks expensive and therefore I advise people to buy a few at times when they are expensive and desist from buying when they become expensive. Such advices generally hold good for a month or at least for a quarter. Thus I had already advised my audience to but three stock in December 2016. Perhaps they will be useful to you. So kindly read my post on my blog at “4 Stocks to Invest in December 2016.”

I do not know whether you indulge in day trading/ margin trading, but let me caution you that trading in stocks, commodities and currencies is not investing but dangerous speculation.

Thank you.

Shocked margin trader staring at losses

I wish you, your family and friends a Happy and Prosperous New Year 2017.

With Best Regards

Anand

Suggested Further Reading:

• Investing - Definition
• What Are Investments Actually?
• Day Trading Definition
• Margin Trading Definition
• What is Short Selling?
• Why Day Traders Cannot Quit?
• What are Good Resources to Learn Trading in Foreign Currencies?
• Is Algorithms Based Trading Safe?

What are Good Resources to Learn Trading in Foreign Currencies?

Margin trader shocked by speculation loss 

Actual Question

What are some of the good resources to study about Forex markets and Forex trading?

Answer

Dear Friend!

Sorry, I do not trade stocks, commodities and forex.

I also request you to kindly desist from doing so.

Actually it is not trading but speculating which is very dangerous.

The trading lots are very big and the margin is low, which magnifies the gains/ losses many folds. Mostly people incur losses only.

Very long time back I used to trade in stocks and incurred huge loss and since then stopped trading and became a value investor.

You want become really rich and accumulate a huge wealth you can surely and safely achieve these objectives through value investing.

I have suggested a few articles for you to read. They talk about stocks but not about forex and commodities but in reality when we talk about trading all are the same and all the risks are same.

Thank you,

With Best Regards

Anand

Suggested Reading:

• Day Trading
• Margin Trading Definition
• Can One Get Rich From The Stock Market?
• Is the Stock Market a Place to Make a Fast Buck?
• Is There A Mathematical Formula for Option Trading?
• How Can I Become a Millionaire Quickly?

Why Day Traders Cannot Quit?

A Day Trader/ Margin Trader Glued to The Trading Screen

‘Day Trading’ is a highly dangerous and speculative activity, not very far from being labelled gambling. Most probably day traders are addicted.

Another reason is gamblers invariably try to recover the gambling losses by doubling their bets - with the hope and self promise that once they have recovered past losses they will quit. In reality this does not happen and they sink deeper and deeper into losses.

These people do not understand the following simple and fundamental facts of stock market investing:

1. Actually stock investing is simple and does not require genius
2. What really creates wealth is time and not investment acumen
3. Price variation perse do not form the so-called returns from investments but dividends, price increase on the back of natural growth of revenues and profits of the companies are the actual reasons behind the attractive stock market investment returns.
4. Leading a simple life is essential to attain financial freedom
5. Conqouring greed and fear - the two dangerous emotions is essential
6. Staring young is indeed a great advantage

Further Related Reading:

• Miracle of Compounding
• What is Value Investing?
• How to Attain Financial Freedom?
• Early birds catch the prey
• Kill the urge to splurge
• Slay the Demons 'Greed' and 'Fear'; Become Value Investing Heroes 
• Trading/ Day Trading
• Margin Trading

Margin Trading Slide

Margin Trading

Day Trading Definition

Stock prices constantly fluctuate on the stock markets. A number of Speculators called day-traders try to make a living out of profits from these minor price variations. Their intention is not to hold the stocks for long nor to take delivery but to simply sell off the same day for a profit.

As a result of globalization and advent of fully automated screen-based electronic trading systems the margins have not only become wafer thin but steep market crashes on the back of global events have the potential to cause more losses to day-traders than gains

Since the price differences within a day are small, stockbrokers extend a facility called margin trading which is highly dangerous and must be totally avoided.

People engaged in such speculative activity under a respectable garb of trading in stocks have created misunderstanding in the minds of a number of citizens causing them to shy away from investing in stocks which when invested prudently and for ling periods of time is the sure vehicle to financial freedom and wealth.

A man engaged in screen-based trading in stocks

Attribution:

Image used here is an adaptation of Pictures/ Icons used here are produced by Freepik from www.flaticon.com