Chip Trading Math – Making A Choice

If one wishes to be successful at the stock market, one must develop a complete disregard and the absence of emotions toward money. This isn’t easily achievable as you might already know it. But, this is an important tool if you wanna be a dealer that is ahead of the game. When you develop this ability, then you’ll be willing to face the stock market.

The stock of the Intel Corporation fell in heavy trading yesterday in the wake of the company’s disclosure that it had knowingly sold its Pentium microprocessors with a ‘bug’ that could lead to errors in sophisticated mathematical calculations. The stock was off $1.25, at $63.875, in Nasdaq trading, where it was the most active issue, with almost 2.4 million shares traded. On Wednesday, Intel said that it had detected a subtle flaw in the precision of the floating point unit — …

Blue chip stocks are well-established stocks. They include most of the ‘name brands’ that you see in everyday life. They trade on the most important stock exchanges. AT&T, Intel, and Coca-Cola are some examples of the blue chip stocks. They are traded for ‘slow and steady’ movements, with little risk. These are ideal for beginners stock trading. If you want to find more examples, find a checklist of the Dow Jones Industrial Average stocks, or other major indexes (which includes the NASDAQ and S&P500). The 30 stocks on the Dow Jones list are considered quality, well-established stocks (essentially, blue chips). However, this does not necessarily mean they are the cream of the crop. A recent example of this situation is that GM declared bankruptcy, and is no longer on the Dow Jones list. So, word to the wise: research any and all stocks, you are interested in. In beginners stock trading, don’t blindly invest simply because a stock is a blue chip.

You must admit it makes sense…

An over the counter stock is basically any stock that doesn’t trade on a major exchange (DOW, NASDAQ, etc.). These stocks can trade on the ‘bulletin board’ market or on the ‘pinksheet’ market. While those are distinct markets, the stocks that trade on them can be quite similar. The majority of over the counter stocks are new companies. These companies are as part of the process of growing and establishing their business, in the hopes of moving up to trading on one of the most important exchanges. These stocks are considered risky, as very few (if any) are well established. Their draw is the very fact that prices are quite low, with many even trading below a penny. On top of that, the price can move very quickly, allowing you to potentially grow your money more rapidly than with blue chip stocks. Interested traders should do deep research on these companies, as the trading risk in is very high, and isn’t recommended for beginners stock trading.

B.M. said yesterday that it would become the first computer maker to replace Pentium chips in some of its personal computers. Some of the Pentium chips, which are made by the Intel Corporation, have a flaw that causes errors in complex math calculations. The flaw was corrected several months ago but has led to an image problem for Intel. The situation has presented I.B.M. with a marketing opportunity because the company’s Power PC chip competes with the Pentium chip. Intel’s stock …

Why this is difficult to do? Well, I believe that this is a complex task to accomplish because we live today in a world that everything seems to circle around money. If you’re earning more, you’re already thinking what car you’ll be buying next or maybe which computer upgrade you’ll make. But sometimes, it doesn’t have to be material stuff. Sometimes it will be family related thing and these are the most difficult to avoid.

I have no problem at all at look at money and not keep my mind on my next car, one big apartment and all other material things that surround us now. The hard thing is for example, if you have an ill parent that you’d like to help. Then, the moment you start making some money and start seeing you trade doing well, you already start to do some math that if you repeat that same successful trade, in one year you’ll be millionaire and will be in a position to help your beloved family member.

Unfortunately, it hardly goes like this. Probably the next five trades will make you lose money and you’ll be where you have started or perhaps even worse. That is why you need to have the address of a complete disregard towards money. You must be aware-since you cannot afford-to see what you could potentially do with all the money that you might earn. But before deciding what you’ll do with it, you must earn it. And to earn it, you must see money as poker chips and ignore what they’re saying to you outside the stock market.