What Stock Trends Are Taking Shape for this Year’s Summer Season?

 

Many stocks or industries have seasonal trends, and summer is certainly no exception to that rule. Historically the stock market slows during the summer season as families vacate their homes for road trips and visits to entertainment destinations. There is even a well-known saying among investors: “Buy in May and go away”.

Summer is Here – What Stock Trends Are Shaping Up?

Although trading seems to slow during the summer months due to vacations and other seasonal activities, those months have also been known to experience at least a respectable rate of growth during the same period.

Many large investors shed higher-risk elements from their portfolios as they prepare to take time off since they will not be as actively monitoring market activity.

What are the Bright Spots of Summer Stock Trends?

Over recent years, some of the winners during summer trading periods include segments in or closely tied to health care, utilities, and energy markets. Those markets that tend to drop are such stocks as material and industrial sectors along with a general lag in consumer discretionary spending. Some of these appear logical for many traders since travel and summer pastimes focus traders and their families away from large purchases as dollars are put to work elsewhere.

Sam Stovall of Standard & Poor’s Equity Research summed it up quite succinctly in stating “a lot of investors are more focused on their tans than their portfolios.”

There are certainly exceptions that tie to where families are spending those dollars: hospitality, entertainment venues, and travel. Whether that means an expensive trip abroad, vacations to popular theme parks, or just getting away from home for a few days, travelers hit the road or take to the air in droves while the weather permits and children are away from school for a few weeks or more. Companies engaged in these markets make a large percentage of their profits during the summer months, much as retailers look to the holidays for their primary revenues.

Other highlights for summer investors are outdoor outfitters such as Cabela’s and “big box” stores such as Lowe’s and Home Depot that supply consumers with grills and accessories, yard care equipment, and outdoor furniture.

Summer Stock Trends and Tools

Timing can be an incredibly valuable time as traders watch for lowering stock prices to time buys just as values will begin to trend up. That may mean waiting for the summer downward trend to begin its reversal and start climbing in the Fall.

If you’re a vacationing trader there are some tools to consider that can keep you in touch with your market segments while you travel:

Portable computers in the form of systems like the Microsoft Surface Pro or high-powered tablets and iPads that combine the power of a computer with the portability of a tablet.

AMPL Smart Bag – don’t worry about missing a trade due to low power when you latch on to this bag equipped with SmartBatteries to keep your tablet, smartphone, or laptop ready whenever you need them.

goTenna – if you have a device but no connectivity you can’t make your trades when the time is right. This simple and portable antenna-like device lets you sync your Android or iOS device via Bluetooth-LE to put you on the air for trading where there is no cell coverage or Wi-Fi available.

With devices like these, you’re able to access your online broker anytime, anywhere. Enjoy the summer season while staying connected to maximize your trading success.

SureTrader gives our clients the services and capabilities needed to optimize their trading activity. Our selection of trading platforms includes a free web-based trading environment supporting both Android and iOS devices. SureTrader’s desktop software has powerful advanced features that rank it as the best trading platform available.

Our superior level of support means contacts with real people to resolve trader problems quickly and to your complete satisfaction. Lightning-fast accurate trade execution is another advantage for SureTrader customers.

Contact SureTrader right away to get started investing online with the best in online brokers.

 

Disclaimer: SureTrader Blog is not intended for U.S. persons. Stock information is not to be viewed as buy or sell recommendations.

How to Identify Market Trends and Make the Most from Them

Just What Is Meant by “Identify Market Trends?”

If any given day trader or investor could accurately predict the direction individual stocks or market segments would take over even a short period of time, the potential for gains would be significant indeed. Unfortunately, the natural volatility of markets combined with myriad variables that can influence the prices of stocks or supply and demand for commodities makes such accuracy unlikely, if not totally impossible. This being the natural environment for investors, it becomes imperative to utilize every advantage and tool available to make such predictions reliable and consistent in order to maximize gains and minimize risk.

Identifying trends can reveal the right time to execute buy orders in financial vehicles and just as importantly, this knowledge can trigger the right time to exit an investment or to avoid a purchase that had previously appeared attractive. Trends may be either static, upward moves, or declines. If a day trader is confident that a positive trend is taking place in particular biotech stocks or an individual precious metal such as gold or silver, a buy order can be placed with their online broker and then monitored closely for the anticipated trend to increase the value to a predetermined exit price. This is where the adrenaline begins to flow for traders; while tracking investments and exiting at precisely the right time – or at least while in positive territory.

Conversely, buying an asset then detecting a downward trend signals the trader to reverse direction and exit the investment quickly to minimize losses.

How Do Traders Identify Trends?

There are many tools available to investors and day traders that contribute to success in identifying market trends:

News – often, current and evolving global news events will significantly impact markets. Political unrest in countries that supply essential commodities such as oil or food products like coffee or wheat can drastically impact supply and with demand being relatively equal, prices can skyrocket. Getting into those markets at the right time can produce considerable profits.

Long-term trends are not the primary concern of the typical day trader who focuses on turning investments quickly – usually at least on the same day, and often within minutes or hours in a single trade session. There are a great number of indexes available for specific markets and also indexes that focus on overall performance or market volatility (VIX index). Monitoring indexes related to your chosen strategy can provide initial visibility to trends. There are a number of indicators commonly put to use by traders to identify trend movement, as well.

Charting – one of the simplest and most straight-forward methods for visualizing trends is a simple chart of an individual stock over time. This demonstrates clearly whether the stock is on an upward trend or a decline. Here again, past performance is not a guarantee of future results.

Corrections – Trend lines for any given investment can change on a moment’s notice and may or may not indicate a reversal of the trend. Day traders in particular need to take close notice of such corrections to determine if they believe there is reason to react or hold their position.

Online Brokers Help Traders Identify Market Trends

Online brokers may provide clients with tools that provide insight into market trends:

  • Graphing and charting tools – simplified visualization of trends in markets and individual stocks
  • News feeds – keeping customers up-to-date on evolving events, locally and globally
  • Stock information in the form of stock tickers, watch lists, and alerts

SureTrader furnishes every client with tools that maximize gains and trade efficiency. We provide multiple platforms to suit every need including our free web-based trading platform and our powerful desktop trading platform loaded with sophisticated and advanced features. Mobile platforms support both Android and iOS devices.

SureTrader’s award-winning support includes contact with actual people 24×7 to help clients with questions and to resolve every problem quickly and to the client’s satisfaction. Fast and accurate execution of trade orders enhances service to our clients.

Contact SureTrader right away to get started investing online with the best in online brokers.

Disclaimer: SureTrader Blog is not intended for U.S. persons. Stock information is not to be viewed as buy or sell recommendations.

Day Trading Software – Selecting and Using

Day Trading Software That Meets Your Needs

Day trading does not just happen automatically in that you just turn on a computer and wait for the money to start rolling in. It is an endeavor that requires discipline, education, an understanding of markets and trends, technology, and effective tools. Day trading software is the toolbox that traders need to apply their discipline, education, and understanding. Technology is simply the backbone that facilitates the use of that software regardless of the platform chosen for day trading activities.

For day trading to be a successful activity for both beginning traders and experienced investors it’s necessary to have tools at their fingertips that incorporate certain features:

  • Ease of use – if you don’t understand the software you won’t be able to use it to your advantage. Learn at least the basics of the software through tutorials, manuals, training, videos, and support contacts before you utilize the software for you first trade. You can grow into the more advanced features of the software as you gain experience and familiarity with the tools.
  • Cost – what is your cost for acquiring and using the software? Some may be provided by your online broker at no cost while other robust systems may require a monthly or use-base fee. Be sure you understand what you’re paying for, and that the features align with your cost.
  • Platform – online brokers provide day trading software on multiple platforms. Picking the one that meets your intentions for trading to maximize your use of the application. If most of your trading activity will be done on an iOS smartphone don’t focus on desktop Windows-based software.
  • Support – does the software vendor or online broker provide online or phone support to help you with questions about the software or to help you with problems?

What are the Specific Functions of Day Trading Software?

Once you have the basic considerations behind you the next step is matching the software to your specific trading goals and strategy. There are multiple internet sites that help you select software features and they are a great way to at least become familiar with the differences between various day trading software tools. Some of the most important software features offered are:

  • Multiple platform support – use of tools from your desktop, laptop, or mobile devices
  • Charting – there are many charts available for day traders that make monitoring particular stocks or other investments simple and even customizable. Some allow you to select only the financial instruments you want to track and save your settings for quick reference on a regular basis.
  • Alerts – set your own alerts to price increases or decreases that allow you to make quick buy and sell moves at the exact time you’ve determined will provide the best opportunities for gains.
  • Watch Lists – most day trading software includes setting up lists of stocks that you want to watch more closely than the overall market. These help you identify trends and volatility that you can customize for your specific trade strategy.
  • Executing your trades – this should be a quick and easy function that allows you to place your buy and sell orders at precisely the moment you determine will benefit maximize your profits. This is what day trading is all about. If you can’t execute orders swiftly and reliably don’t choose this software or online broker.

Selecting the Best Day Trading Software – SureTrader

SureTrader offers customers the platform and features needed to make your trading sessions profitable.

SureTrader ActiveWeb provides a free web-based trading platform available from any mobile device including smartphones and tablets with any browser. Tools include real-time quotes and news feeds, watch lists, charting, trade execution, and much more.

SureTrader Mobile is the latest platform available for smartphones permitting free access to your SureTrader account with the ability to get quotes and make trades.

SureTrader Desktop is the most robust and sophisticated platform that puts a full-featured level II analytical tool at the fingertips of day traders making it the preferred platform among traders.

SureTrader provides the best array of day trading software and platforms for investing online with advanced software and quick reliable execution of trades. Their award-winning customer service and support are available around the clock to resolve any problems and answer questions.

Contact SureTrader right away to get started investing online with the best in online brokers.

Disclaimer: SureTrader Blog is not intended for U.S. persons. Stock information is not to be viewed as buy or sell recommendations.

6 Methods to Investing with Low Risk

Investments and Risk go Hand in Hand

No broker or investment advisor would (or should) ever tell you that they have the just the investment for you that carries no risk. All investments incur some level of risk regardless of past history or projected earnings. Most offerings will carry the well-known disclosure that “past results are not a guarantee of future performance” or similar representation of the risks involved with investing including lack of performance and loss of initial capital.

But there are steps and safeguards you can take to minimize your risk exposure. This is of course not a promise of some “hot tip” for an investment that can’t lose – it’s more of a common-sense approach to investing wisely and conservatively to reduce the likelihood of significant financial loss.

Risk can present itself in many forms that impact investors. This is not simply a case of a particular stock asset losing value whether short-term or over the long haul. Risks can materialize in several forms and for several reasons:

  • Anticipated company earnings not being achieved
  • Demand for a particular good, service, or commodity dropping
  • Supply for the same good, service, or commodity increasing
  • Political unrest in regions or countries that may result in economic impact
  • Government actions or decisions by regulatory agencies

Today’s global economy benefits investors through the opportunity to participate in markets and segments never available in years past. By the same token their investment results are subject to a wider range of factors that can influence financial results. Aberdeen Asset Management summarizes some risk considerations in a recent publication for potential investors.

Minimizing Your Investment Risk

Once you’ve come to the realization that all risk cannot be avoided it becomes a challenge to the investor on how to best minimize the exposure to as much risk as possible. Here are some tips to reduce risks inherent in your investment strategy:

  1. Diversify – this is a time-proven strategy to safeguard your portfolio from impact of loss from any particular asset. Through a mix of financial instruments you “hedge your bets” against a downside that severely impacts your overall capital.
  2. Bank savings accounts and CDs – probably one of the safest financial instruments available to you, these products also produce returns which to many investors are almost painfully low – today typically returning only 1% to 2%.
  3. Invest in bonds – to be sure, bonds carry a very low return and to profit from their low return you need to retain them to maturity. But the risk is undeniably about the lowest among investment products.
  4. Mutual funds – mutual funds typically provide good returns in good times and minimal loss in bad times. They vary in their risk exposure to investors, so a good guideline is to evaluate funds that Morningstar rates at 3 out of 5 stars and demonstrates consistent returns.
  5. Fixed Annuities – the benefit of such annuities is a guaranteed, predictable return. You are buying annuities from an insurance company, so the safety of your investment is typically protected by insurance boards. On the downside the annuity is less liquid than other financial tools such as savings accounts, bonds, or CDs.
  6. Get educated and use the knowledge to your financial benefit. While investing in low-risk instruments ensures low risk it also frankly guarantees low returns. Better than low returns is becoming educated in how to analyze annual reports and scour news reports for items that are likely to generate financial impact and react accordingly. By gaining a real understanding of analytical tools and their information you can minimize investment risk through applying your own knowledge. Knowledge and experience are your best tools to build confidence and success in your trading approach.

Downside of Low-Risk Investing

There are detractions from taking too little risk when investing. You will find that in general the lower the risk the lower the returns on your investment. Bank savings accounts and certificates of deposit provide some extremely low-risk potentials yet also return very low profits. You may even experience negative growth with such financial instruments, in fact. If your savings account pays a 2% return during a period of 3% inflation, for instance, your results are a net 1% loss in spending power.  Not exactly the return you’re looking for.

With these points in mind don’t ignore the fact that lower risk as a rule results in lower return. The risk/reward ratio should be a consideration when you select the financial products to invest in. A lot depends on your risk tolerance of course. How long to you plan to be in the market? If you’re in for the long term you can afford to suffer short-term losses on the premise that your portfolio will rebound over time. Someone in their 30’s investing with a mind toward retirement obviously has more time to make up temporary losses than an individual approaching retirement. A day trader looking for short-term gains or quick profits will not be inclined to consider savings accounts or CDs.

Moving Forward

Once you’ve formulated the investment strategy that will achieve your investment goals select a broker equipped to execute your plans effectively and accurately. Online brokers provide real-time tools for analyzing your proposed trades and allow you to monitor stock tickers. Be sure to consider the broker’s reputation and business practices.

SureTrader is a leading online broker for day trading that can provide you with reliable and honest services for your trading activities. SureTrader also offers consistent courteous support for your trades including fast order execution and mobile options for traders using both iOS and Android devices.

Disclaimer: SureTrader Blog is not intended for U.S. persons. Stock information is not to be viewed as buy or sell recommendations.

Stock Market Day Trading Tips You Can’t Afford to Ignore

All investments incur risks to some extent but armed with the right technology, analytical tools, and up-to-the-minute market information, day traders can limit their risk exposure and significantly improve the likelihood of financial gains.

Here are some of the tips that a day trader needs to pay particular attention to both before investing and during their stock market trading activities.

  • Strategy – No one should expect to be an expert in every nuance of the stock market and all day trading techniques. Find the strategy that works best for you. Listening to “hot tips” from a friend, relative, or even news agencies is not a strategy. Types of investments you lean toward (large cap stocks, Forex, global markets, etc), timing you determine is effective for your trades, and tools to be used for analysis and decision making are strategic elements that you need to adhere to. When you find what works for you stick with it.
  • Know when to bail out. No investment promises gains, and your trades will be no different. There will be wins, losses, and break-even events in your trades. When you identify the trades that will not be paying off for you, cut your losses before they become disasters. Your intent is of course for the gains to far outpace the downside, so when you become aware that your trade is going the wrong direction sell before a small loss becomes a significant financial tragedy. By the same token you must recognize the signals that indicate gains are likely to stabilize or even reverse direction so that you take your profits while you can. Set your target sell point in advance so that you don’t allow greed to make you hang on to an investment so long that it becomes a loss. Every trader, whether day trading or long-term investor has stories of the stocks that he should have gotten out of while he had the chance, but incurred higher losses due to hanging on too long.
  • Realistic expectations and anxieties – If day trading or the stock market in general were a sure thing, everyone would be exuberantly day trading and getting wealthy beyond their wildest dreams. Keep your mind focused on making profitable trades based on research and your proven successes. Don’t allow anxiety and fears of loss prevent you from making the financial moves that make sense for you. The old saying “nothing ventured, nothing gained” is certainly applicable to day trading. All investments are at risk and subject to influences outside our control that may also be totally unexpected – even by the best minds in the business. Natural disasters, political unrest, CEO resignations, fraud charges, and many other circumstances can influence the value of stocks that you may have just purchased, with either positive or negative impact on your holdings. Understand that you have no control over such events. Roll with these fluctuations and move forward.
  • Do your homework – financial analysts make a living doing detailed observations of many factors that impact the stock market throughout the day and over long periods of time. You should likewise perform a respectable level of due diligence for the trades you plan to make. Through your broker or online sites you can investigate the financial reports of publicly-traded companies to make decisions as to the level of confidence you have in the company’s performance and position in their market segment. Observing the continuing stock ticker information for real-time stock value is also critical to daytrader choices, both buying and selling.
  • Keep your gains – This sounds like an obvious point, but many individuals who begin day trading hang on to stocks longer than they should, looking for the “big win”. Often that turns the gains into losses. Know your exit strategy as well as your purchase strategy, so that you get out while the profits are still there for you. Remember that you will sometimes be right on a buy order, and others will not turn out so rosy. Enjoy the wins, and learn from the losses.
  • Patience and discipline – these go hand-in-hand with strategy, but they’re worth mentioning separately. Once you’ve determined what your price point is for buy orders stick to it. If nothing is available that meets your guidelines at any given point in time wait for the next opportunity, rather than altering your strategy. Be sure not to exceed the capital you determine is within your investment budget. Remember that investing on a “hunch” is not disciplined investing – it equates to gambling. Wait for the circumstances that fit your strategy and budget. Patience will pay off.
  • Online broker selection – Regardless of your level of buy and sell activity the common factor is that day trading requires the use of a broker to actually exercise the order. Technology has introduced tremendous advantages for day traders through the use on online brokers. These online brokers are not equipped with the same tools and features. Each has their own particular offerings for your consideration. Decide what matters most to you before selecting the online broker for your investments. Such functions as analytical tools for clients, technical support, and mobile applications for trading may be just as critical to you as economical trade fees and low commissions.

Summary

Bloomberg Business Week elaborates further on some day trader tips, and Trading Academy offers advice particular to beginning day traders. Day Trader Bulletin likewise covers a wide variety of topics of interest to day traders of all levels.

Each of these tips deserves your consideration and evaluation for whether or not it applies to your investment strategy.

Important considerations:

One of the most important tips for investors – particularly day traders – is to select an online broker that provides the tools, execution options, support, and reliability that can make you a profitable investor. SureTrader is a leading online broker for day trading that can provide you with advanced technical capabilities and support for your trades, including complete mobile options for traders on the go.   

Disclaimer: SureTrader Blog is not intended for U.S. persons. Stock information is not to be viewed as buy or sell recommendations.

 

Category: Trading Tips
Stock trends

What Stock Trends Are Taking Shape for this Year’s Summer Season?

Stock Market Day Trading Tips You Can’t Afford to Ignore

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