Archive for February, 2012


Graphene Investment: Insight Is The Key To Success

Filed Under: Stock Pick of the Day by Bill — Comments Off
February 23, 2012

There has been a whole lot of hullablloo on investing talk boards about the profit potential of the graphene revolution. Graphene is set to transform the manufacturing world and is expected to be the material of choice for a whole range of products, from solar panels to fabrics to computer chips. The expectations are high and the profit potential substantial, but behind all the chat and idle speculation remains the little discussed question of production.

Graphene production is perhaps THE place to direct ones attention if one is planning to invest in this world changing material. It is the one essential part of the process yet it is the one thing most people know little about. The big secret that remains unspoken is that whichever technique wins out in terms of quality and commercial viability will be the place to invest. With the graphene revolution thought to last another 20 odd years before the market slows there is plenty of time to get in early and scoop up some profit.

There are four basic production techniques that are regularly employed in the manufacture of graphene. Each one has its advantages and disadvantages and each presents an array of challenges that must be overcome before the material can be produced on an industrial scale. One company in particular, CVD Equipment Corporation, has stolen the march in this respect when it brought to market the first graphene products made from its chemical vapour deposition method of production. However, three other methods remain that could outclass this production method and leave early investors out of pocket. Mechanical exfoliation, chemical exfoliation and bottom-up production from nanoscale carbon molecules are all potential rivals in the graphene production stakes and any duly diligent investor would be well advised to look further into these processes.

Much has been made of high mineralisation graphite mines from which can only be obtained the high grade graphite flakes required of some process. Yet with alternative methods of production and new technologies arising regularly the requirement of such high grade primary material may be an anachronism in several years time. Investors are therefore advised to keep a close eye on developments in the field lest their sure bet graphite mine investment becomes a poor relation to more technologically astute investments.

Two caveats bare repetition, as always do your own research before investing and never invest more than you are prepared to lose. The graphene industry is sure to be here for many years to come, all that remains is ensuring that you are on the right side of the market.

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Use the Resources Available to You

Filed Under: Day Trading by Bill — Comments Off
February 14, 2012

If you have decided to become a day trader in today’s day and age, then you will see there is an enormous wealth of options for you to discover, process, and decide what will be best for you.  First you have to say to yourself, “What platform and I going to use with all there is available to me?”  There are tons of different platforms and I would highly suggest that you spend a few minutes to look into things such as, tradestation reviews to become fully aware of what other traders have to say about the platforms they use and why.

But this is just the beginning—just scratching the surface into all you would need to know about becoming a day trader.  All sorts of questions begin to arise as you take on this quest.  How do you determine what markets to trade? Should I choose a Black Box System over a Discretionary Strategy? Do I want to use tick charts or minute charts?  And what exactly are tick and minute charts?  It is almost enough to make you wonder if you chose the right path.

Luckily, you are not the first person to set foot in what may seem a little scary and definitely uncharted territories to you.  There are others, before you, who have had the same questions and had to carve out a way for not only themselves to understand, but for those who may follow their steps.  Chances are, they have even started a day trading blog in order to help those that may be struggling to see the light.They have taken their success and their mishaps and recorded them.  So, make sure you use your resources to see what those before you have encountered in order to help lead you to your success.

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Understanding Stock Market Trends Starts with Knowing the Stock Market Definition

Filed Under: Glossary by Bill — Comments Off
February 1, 2012

wrong stock market definition

There is a ton of buzz, romance, fantasy, excitement, and insanity around the concept of investing, trading, or gambling with the stock market.  The average person loves to think about returns, compounded growth, how fast a stock can double, and all those other sexy concepts.  Very few people really thinking about what the stock market definition is.  So before you read any further you probably want to know why you even care about understanding stock market definitions.

If you were like me, you probably thought of the stock market as a wizard behind the curtain.  Some magical or all powerful person or machine randomly moved the stock price up or down and people reacted.   If too many people bought or sold the computer would adjust.  Your job as an investor or trader was to react to the changing price accordingly.  In this mindset your stock market definition would be along the lines of:

The stock market is the mover a stock values which you buy to and sell to

In reality a stock market is a platform that controls the exchange of shares between different people.  The market is simply a medium between people.  These platforms often have rules and regulations that control how people can buy stock, how people can sell stock, and what companies can be exchanged on this stock market.  A key thing to understand is a stock market doesn’t actually buy or sell shares of stock people do.  Understanding this fact will help you be a better trader or investor because people change the whole game.  If you were competing against a computer you’d only have to learn the formulas, learn the rules, create your game plan and follow it until it quits working when you would evaluate to see if the rules had changed.  However, people have these funny things called emotions.  Emotions don’t follow the same rules as business, logic, or common sense.  In the end those things will generally play out because it’s about making money, but in the short term (which can be longer than you think) the stock market emotion of the buyers or sellers can override good thinking.  If you remember that for any share to be transferred there has to be a buyer and a seller you’ll understand the system better.

correct stock market definition

One Buyer one Seller

When a stock price is moving up it’s because there hasn’t been any issues finding new buyers.  As long as a trade happens quickly at a given price the price will move up, if there are still no issues finding buyers it will move up more.  If this isn’t the case then the price will start moving down until there issues finding sellers.  The stock market requires a balance.  Using this thinking I would state a better stock market definition as such:

The stock market is a entity that controls the balance of buyers and sellers through price control, regulations on buying stock, regulations on selling stock, regulation on stock accepted within the market.

So if price control controls the balance between buyers and sellers why does a stock market need to regulate buyers, sellers, and the shares themselves?

Stock Market Regulation of Buyers/Sellers

If a stock market doesn’t control who can buy and sell what stock and under what conditions you get the problem of manipulation.  If people who have information or influence on the information of a company more than the general public are free to trade within the system eventually no one will trade within the stock market because they will always lose.  If no is willing to trust the system you have no stock market at all and you lose one of the great advantages of the stock market which is liquidity.  Liquidity is the ability to convert your assets to cash or your cash to assets.  If you own a small business you may understand this already.  Your business might be worth $300,000 but only if you can find someone to buy it.  However, if you own $300,000 in stock of a company this is traded on a stock market, you can sell some or all of these shares, do what you need to do with the cash, and repurchase the stock the same day.  This is why maintaining the trust of the stock buyers and stock sellers is so critical.

Regulating the Companies’ Stock

How a stock market chooses to regulate a company stock is through validation of financial records, minimum earnings, minimum revenue, and minimum number of shares.  These are the big hitter issues.  If a company isn’t trustworthy and it’s legal documents are false it will not only crush the company when the news is brought to light, but give a black eye to the stock market as a whole.  If a company is too small it may be too easily manipulated by larger investors.  If there are not enough shares then a stock market may have a difficult time properly pricing the company through the required constant trading creating wild price swings or market manipulation.

In summary the stock market definition is an entity that publishes the going price for there to be both a buyer and a seller of a share of stock in a given company, prevents manipulation or fraud of the value of a company, and profits from the exchange in these shares by creating value to the customer by providing liquidity in what would normally be a hard to exchange asset.

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