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Friday, March 23, 2012

The Highest Earning... Or Losing... Stock Trades Ever!

Most day traders have amassed their own collection of war stories about their most profitable trades ever, and at the same time have their sob stories over the “sure thing” that could have gone sour. Here, we have collected 10 of the most profitable stock trades ever. They are, of course also 10 of the least profitable stock trades in history.... had you been on the other side of the trade! We aren’t including anything like blue chip or high dividend-paying sites in this list... just the 10 biggest winners (or losers) in recent history!

Buy Medifast Inc, 1999.
As a small medical equipment company in the 90's, Medifast was barely on the radar at 20 cents per share. A series of lucrative contracts aided by lucrative patents had it trading at $30.58, a staggering profit of 16,000% to a long term investor! While a short stellar would have stopped out early, the pangs of regret would have been as painful as any financial loss.

Buying Ebay, 1994
Some thought the idea of auctioning off people's junk was ludicrous. Others just didn't see where the profits would come from. One of the few .COM sensations of the 90's to mature into a a stable investment, ebay was certainly helped along by the fact that its payment processor, paypal, essentially became the international standard for online transactions. Ebay's rise was typical of .coms at the time, opening at $2 per share in September of 2008, reaching an early peak of $10 per share by December. During the ensuing .com recession, ebay bucked the odds by hitting $56 per share in November 2004, a profit of 2800% for 1st day investors! Short sellers, of course ate their hearts.

Buy Google, 2006
Offered at a near blue-chip price of $80 per share during the 2006 IPO, Google has, since then, surged to over $600 per share, making the undisputed king of the Nasdaq.

Shorting the Dow on September 3rd, 1929.
Most trading historians would regard the Stock market crash of 1929 as one of the biggest catastrophes in history. However, a trader able to read the signs (Overheating economy, high volumes of risky trades on high margin, and a complete lack of oversight) opening a short-sale futures position on the index would have seen the index drop from 381 to 198 by November 13. An investment of $100,000 with 30% margin posting would have witnessed a 178% profit. Betting the market would have gone higher, of course, would have made you a candidate for that autumn’s fad of window-diving.

Friday, March 16, 2012

Investing


As an existing or potential investor in the stock market, you may certainly be wondering as to which stocks are the most commonly invested. One potential source for this information is the financial newspapers which offer world wide coverage or the big online sites devoted to finance. For our purposes, we'll look to you the consumer for your interest in this subject area. Consider the scope you're concerned with. Globally listed stocks in foreign exchange markets may be part of the equation, or your focus could be solely on the markets found within the united states. Consider whether you're only considering shares in companies, or rather are also interested in commodities or other financial instruments. Once you've narrowed your focus, let's utilize publicly available trading information to determine the companies you're interested in.

The most commonly discussed companies which are publicly traded are often the most commonly invested in stocks. Think to companies which have a widely known brand identity, rather than conglomerates which own many brands, but lack public branding themselves. Some companies utilize some of the most popular tricks in the industry to keep their shareholders satisfied, and you want to be part of the crowd that has the most informed members. Some companies have many distinctively branded components, so it is in your best interest to discover what those components are and how you can utilize this knowledge to profit, sometimes substantially. You can use information that many people with a financial background learn in school or even in the workplace. As both a consumer and a person interested in an ownership stake in some of the largest and most diversified companies out there, you owe it to yourself to take the next step and find your financial future.

Charting a stable, well-thought out path to your continued financial success takes hard work and careful preparation. It is in your best interest to seek out the best sources you can find and utilize them to their fullest potential. Don't take the negative sayings of doomsayers and Cassandras to heart, utilize your own judgement, based on years of knowledge you've earned out in the workforce. Some of the most commonly invested companies have fantastic websites full of investor relations materials which you can utilize to find continued financial success in your lifetime. You have the power as a person capable of financial literacy. Go forth and invest intelligently.