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Buy Shares

The smallest number of shares of stock that an investor can purchase at a time is one share. While it is an option to buy one share at a time, it may not be feasible to do so. Mutual funds can be purchased in units however but stock cannot be divided in the same way. The reason that you may not want to buy one share at a time is due to the commission fees required.

As stock investors purchase stock they must also pay a commission fee to their stock broker whether it is an online stock broker or a real life stock broker. The broker is paid a commission for actually making the transaction happen when you buy shares. The commission fee they receive is typically a per transaction fee and depends on the number of shares that the stock trader is actually buying and/or selling at a time. The commission fee per trade is usually somewhere around $40 per trade and many investors opt to reduce the average commission costs by spreading them over the purchase of numerous shares. This is one reason why buying one share of stock at a time doesnít make much sense. Through increasing the number of shares that are purchased, the average cost per shares, including the commission, would be reduced. If you buy stock at a smaller number then you may have to wait until the stock reaches an almost unattainable stock price before you can even invest it in. It just isnít feasible to buy one share or even a very small number of shares at a time.

Another reason a stock investor would not want to buy shares of stock one at a time has to do with what occurs when you actually sell it.  The stock would actually be less liquid because it is not easy to sell just one stock to another investor. When buying shares, other investors, specifically seasoned investors, know that buying one share at time is not feasible. Stock brokers also prefer to buy and sell stock shares in even lots also, rather than odd lots. It may not be as big of an issue for larger companies whose trading volume is very high however it would be harder for those smaller companies that have a low average trading volume. You would have to wait a while for someone who is willing to either buy an odd lot from you, or you may have to sell the share at a lower price, defeating the purpose of investing in the share.

Basically, you can buy shares one at a time however commission costs and liquidity issues make it an unattractive investment.



Market Direction: There is a quiet advantage found with candlestick analysis that most people do not address. Its stems from the basic functions of the candlestick signals. The signals are the graphic depiction of investor sentiment. The benefits of that information is much better demonstrated on days such as today. The markets were selling off reasonably strong. Most stocks backed off. Where most investors would have experienced a net loss in their portfolio today, the candlestick investor benefits from the strength built into signals and patterns.

There is one factor that will become evident after becoming acquainted with candlestick signals. Strong bullish signals and patterns will act as a buffer on strong selling days. The reason the bullish signals were formulated was due to strength coming into the trend, investor sentiment turning bullish. That sentiment is usually strong enough to carry through even in a declining market. This allows a candlestick investor more time to prepare for closing out a position. When the markets are selling off hard, the price action of a stock that has recently demonstrated a bullish signal will usually take longer for the selling action to take control. That is the worst-case scenario, getting out of a position that may be experiencing weakness because of the market action will usually still produce a profit.

DOW

It is not unusual to see continued bullish participation in a strong chart pattern even when the markets are selling off. This helps an investor keep from participating in any panic selling. In investor is more apt to sell everything immediately if the whole portfolio has gone negative in one day. The fear that prices make it even worse when selling starts reduces the time allotted to rational analysis. However, when a portfolio is experiencing positive moves in a few of the long positions as well as profits produced in short positions, this allows more time to be allocated to analyzing the losing positions to see what actions should be taken. Bottom line, the trend inferences produced by candlestick signals and patterns will usually carry through even when the general market direction is going in the opposite direction.

KIRK

Please take the time to learn the 12 major signals and the candlestick Patterns. Not only will they produce a much higher probability of producing profits,  they dramatically reduce situations that would stimulate emotional reactions. As often professed in the evening chat sessions, the biggest deterrent for most investors to make money consistently is their own emotions. Whether you are trading stocks, options, commodities, or tulip bulbs, emotions are going to have an integral part of investors thought process. Candlestick analysis is merely the study of price movements based upon human emotions. Those studies can easily be extrapolated into showing an investor how to eliminate/control their own emotions.

With recent economic conditions, many investors have come to the realization that the only person really interested in maximizing the results of their investment funds is themselves. Once an investor understands the knowledge that is built into candlestick signals, they quickly realize how the traditional investment methods have nothing to do with profitable investment procedures. Learning how to use candlestick signals and patterns correctly is not difficult. The difficult part is developing the control of one's own emotional flaws. Fortunately, candlestick signals create a format that dramatically reduces emotional decisions. If you are seriously interested in controlling your own investment future, no matter what may happen with the economy, please take time to learn the 12 major signals and candlestick patterns thoroughly. That knowledge can be utilized in any trading arena.

The Candlestick Forum will be providing extensive training in option trading, commodity trading, and Forex trading over the summer months. These training programs will be based upon the assumption that people are familiar with candlestick's. Take the steps needed to learn how to invest correctly. It is not in the investment community's agenda to teach people the correct investing methods. That would be a conflict to the industry's profit centers. Take advantage of the Candlestick Forums specials now. This will be information that you will use for the rest of your life. Click here for the specials details.

Chat session tonight at 8 PM ET - Do your kids a favor, suggest they watch a few evening sessions  to learn how to invest correctly at a young age.

Good investing,

The Candlestick Forum Team


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