Social media is a growing trend and it will continue to grow as time goes on. Billions of people use Facebook and more people tend to join every day. With this knowledge, it would be a no-brainer to get involved in the stocks and shares of a social media giant, as they can show you how the online market is moving and tend to be very huge influencers, especially giants like Facebook. There are millions of websites on the internet and some companies and organizations have placed them into a list of importance. One such company is Alexa.

The Alexa 500 is a list of the best and biggest global websites, and social media sites make up most of the top 10. It is not surprise then that social media stocks are very important to watch if you’re investing in online business. To give you a little direction, we have put together some of the best social media stocks that you should be following. If you’re still interested, continue to read on.

Facebookfacebook

Facebook is an internet giant and is currently the largest social media platform on the internet. Its current market cap is close to $500 billion and the current prices of shares is around $170. The site itself is one of the most visited on the internet and is placed at number 3 on Alexa’s top 500 list. The company is based in California and have over 15 thousand employees. Dominating most of the social media space, Facebook is definitely a company to watch. Especially now considering they’ve purchased Instagram, which was number 15 on Alexa’s list.

Google

It is safe to assume that Google is the most visited site on the internet and is definitely a social media platform that you need to watch. The internet giant is set as billions of people’s home screens on their browsers and they own both Google+ and YouTube. Although Google+ never really took off, YouTube is one of the large forms of social media on the platform. In fact, YouTube is the second most used search engine on the web, topping both Bing and Yahoo. Google’s current market cap is around $646 billion with the share prices hitting around $940.

LinkedIn

LinkedInLinkedIn is the social media for businesses and professionals and is rapidly growing. The reason this company is growing is because it was purchased by Microsoft on 2016 and now holds a market cap of $566 billion with a share price of $73. The platform now has close to 500 million users and spans over 200 countries. It is still a very good investment opportunity as they have a very good combination of page daily visitors and page views.

Twitter

Twitter is an interesting social media stock to watch, as it has been suggested in recent years that its growth has begun to slow down. The current market cap is 12 billion with shares prices of $16. Twitter is still on the increase and is a platform you need to watch. They are the 15th most visited site on the internet and have around 320 million users every month.

Main Takeaways

Social media is a massive thing in the online world and new companies are appearing all the time. However, out of all the sites on the internet, there are only a few that you need to watch. Facebook and Google are clearly the biggest sites and their social media platforms are currently head-to-head (YouTube and Facebook). Facebook also owns Instagram, so this makes them even more on a social media influencers. Twitter and LinkedIn are also great stocks to watch and it will be interesting to see their fate in coming years

The world of investments can be quite perilous and it constantly demands the investors to be smart and sensible about their decisions. It is, hence, prudent to keep a close eye on the movements and trend of the market and use them to make better informed decisions and avoiding sticky situations. Technical analysis can be immensely useful, in this regards, as it helps you to statistically analyze the price movement of an asset.

Technical Analysis

Technical analysis may seem quite complicated for a new trader but it basically is the study of recurring patterns that results from changes in supply and demand. Asset prices will move up when demand is stronger than supply since buyers will be willing to buy more than what the sellers are looking to sell. Hence, in order to entice the suppliers, the buyers will offer a higher price resulting in the overall price to increase. The same is true for the other direction as well when supply is more than demand. The overall price will fall as sellers will be forced to lower the price to sell. These imbalances in supply and demand also give rise to support and resistance levels, which act as barriers to price movement.

Support and Resistance

businessman with financial symbols coming from han

Support and resistance level are points that the price of an asset struggle to move beyond. At the support level, there will be an influx of buyers as they will deem that price point as quite attractive. This will lead to the support level to act as a price floor since they restrict the asset’s price to fall below that point. On the other hand, at the resistance level, there will be a lot of sellers willing to sell and hence, restricting the asset’s price to move beyond that point. The resistance point, therefore, acts the price ceiling.

The knowledge of the concept of support and resistance level can bolster your investment strategy and aid you immensely in effectively planning your trade.

Buy and Sell Timing

You can vastly improve the quality of your trades by using support and resistance level. Usually, a good time to buy an asset is when it is near the support point. Similarly, if you want to sell, you should wait for the asset to reach near the resistance level before doing so.

However, if you are in a situation that is not so clear cut, you can analyze the price action near support and resistance levels to get a better idea of the movement and use that action to augment your trading strategy.businessmen using laptop

Determining the Trend

The most important application of the principle of support and resistance levels is that that it will help you understand the overall trend. An asset will not oscillate between support and resistance levels. If the overall trend of the market is bullish, the stock will break its resistance point.

Once an asset is able to break a resistance point, that point becomes a support point in an upward trend. Furthermore, the support levels will hold out in an upward trend where as resistance levels will keep on breaking. In a down trend, the opposite is true.

Stop loss to mitigate risk

Thirdly, you should use a stop loss order to manage your risk. This should be done around the support level so that you are not caught out when the asset price takes a downward spiral.

The knowledge of support and resistance can truly augment your day trading strategy and improve your overall, trade quality.

What is a stock broker?

According to the Business Dictionary, a stock broker is a licensed individual or body with the following qualifications. He or she has passed a certain test and is certified to offer investment advice. He can counsel customers on if to hold or sell securities. He or she can execute the selling or buying of investment orders by his or her clients. He or she also charges a percentage of the transaction to cover his or her fee (Downes, J., & Goodman, J. 2014).looking-at-the-statistics-of-stock-exchange

Qualifications and Licensing of stock brokers

You can become a stock broker with as little as a high school diploma in a business related field. This is, however, a field where once qualification and past successes dictate one’s future. Bearing this in mind, having extra qualifications is an added advantage. These extra qualifications can come in form of, a bachelor’s degree. According to the Bureau of Labor Statistics, a bachelor’s degree is the least requirement for a career as an entry-level stock broker. The common stock broker degrees include economics, finance business, and accounting. For you to work in an investment firm or bank a bachelor’s degree is also mandatory (Bodie, Z. 2013). There is, however, no specific majoring needed but one in a business related field is recommended. Extra classes in statistics or mathematics can allow you to stand out among a pool of stock brokerage candidates.

Duties of a stock broker

Similar to other occupations stock brokers have duties and responsibilities. Among these duties include the duty of fair dealing. The security industry demands fair dealing from all of its employees. Fairness and honesty must be exercised in all the dealings with customers. There are even bodies like the Financial Industry Regulatory Authority (FINRA), put in place to ensure that these virtues are practiced. These bodies also ensure that these laws are legally enforceable.

broker-showing-some-ascending-to-his-colleague

Stock brokers are also expected to be loyal. Due to the fact that stock brokers earn their money through a commission, there is a chance of a conflict of interest to take place. Stock brokers can focus on their interests and increase their own income or focus on the customer’s needs and increase their interests. Duty and loyalty ensure that the needs of the customers are always put first.

As a stock broker, you are expected to disclose all the relevant information to an investment to your customers. For a customer to make a decision that is most profitable, he or she needs reliable information (Prentice, R. A. 2011). Stock brokers are expected to provide their customers with this information regardless of their other investments or possible personal loss. Brokers are also obligated to inform their customers of any risks that may affect their investments. No stock broker should perform any activity in the customer’s account without their approval. The only way a broker can do this is if the customer has given a broker power of attorney to make trading decisions.

Conclusion

In conclusion, a stock broker is anyone or anybody that is licensed to offer financial investment advice. To become a stock broker is possible with as little as a high school Diploma. Additional qualifications in a business related field are an added advantage. Among the duties of any stock, broker includes loyalty to their customer, fair dealing in their operations, a full disclosure of information to their clients and fair.

References
Bodie, Z. (2013). Investments. McGraw-Hill.
Prentice, R. A. (2011). Moral Equilibrium: Stock Brokers and the Limits of Disclosure. Wis. L. Rev., 1059.
Downes, J., & Goodman, J. (2014). Dictionary of finance and investment terms. Barron’s educational series.

Support-and-Resistance-in-the-Stock-Market

Support and resistance have long been vital trading indicators. With their roots in the supply and demand theory, these concepts represent key junctures where the forces of demand and supply meet.

Support and resistance are undoubtedly the most important attributes of technical analysis. Usually, they are used by traders to refer to price levels on charts which might act as barriers which control the movement of the price of a stock or a security. They are the levels from where the movement of this price tends to stop or reverse back. They represent the levels where quite a few traders might be willing to buy or sell the stock on various platforms.Support-and-Resistance-in-the-Stock-Market

What is support?

Support is defined as the price level at which demand is thought to be strong enough to prevent the stock price from falling any further. Whenever the price reaches the support level, it has difficulty going past that level. The logic dictates that as the price declines and approaches support, buyers become more inclined to buy a sellers become less willing to sell. By the time the price reaches the support level, demand will tend to overcome supply and stop the price from falling below support.

What is resistance?

Resistance is the opposite of support. It is the price level at which supply is strong enough to prevent the stock from increasing any further. The rationale is that as the price approaches resistance, sellers (supply) becomes more inclined to sell and buyers (demand) become less inclined to buy. By the time the price reaches the resistance level, the supply will overcome demand and prevent the price from rising above resistance.

Support and resistance levels are important points in time where the forces of supply and demand meet. These support and resistance levels are seen by technical analysts as crucial when determining market psychology, supply and demand. When these support or resistance levels are broken, the supply and demand forces that created these levels are assumed to have moved, in which case new levels of support and resistance will likely be established.Support-and-Resistance-in-the-Stock-Market

Some characteristics of support and resistance figures:

  • They help stock traders to arrive at entry or exit prices.
  • They are a useful aspect of trends as they help traders to make trading decisions and identify when the trend starts to reverse.
  • Round numbers are important in support and resistance levels. The increased selling and buying pressure at round numbers lends them psychological importance.

The importance of support and resistance

Support and resistance is a crucial part of trends as it can be used to make trading decisions and identify when a trend is reversing. Besides, these barriers form the basis of many successful trading strategies an almost all market stocks, bonds, forex, options, futures, commodities, and many more.

Moreover, support and resistance are determinant forces in the market. They represent price levels where traders can make financial decisions about profit and loss.

Identifying support and resistance

There are many indicators that have been developed to help identify these two barriers. However, using them effectively takes some practice and experience. Support and resistance can be easily identified with the help of moving averages. Besides, the Fibonacci retracement tool can be used to determine these levels.
Generally, support and resistance play an important role in technical analysis. Furthermore, they are key tools used by research firms, stock advisories, and broking firms which provide stock tips based on their technical analysis.