The convenience of a free stock quote is it immediately gives you the latest price of your stock being traded. If you’re an active stock trader, free stock quotes are deemed a necessity. After all, to generate a profit, you need to control your costs. Stock quotes are provided by financial sites and stock brokers. In addition to giving free stock quotes, a good stockbroker needs to be competitive on commission pricing and have a reliable stock order system.
Getting a free stock quote is just one ingredient to making money from trading stocks.
You need to access to information which gives you insight on stocks that are ready to breakout on the upside. This entails becoming familiar with the company’s business, the industry it competes in and its financial standing relative to its peers. The key to generating good investment returns is recognizing the stock purchasing opportunity before the rest of the investor crowd.
How Often To Get a free Stock Quote
Being updated on the last price dealt of the stock you’re following is part of being a stock investor. You want to know whether you were up or down from where you originally purchased the stock. Should it be once every hour, once a day, once a week or even every half hour? The answer depends on what type of stock investor or trader you are.
The Buy and Hold Investor
This is probably the most common of the equity investors. For most participants, it’s arguably the most successful strategy. You simply buy the stock and forget about it. Excessive trading fees and paying capital taxes are avoided. The objective is to invest in a properly managed company that consistently grows its revenue and profit. These companies have a track record of at least five years.
An ideal buy and hold a stock is one that pays out a dividend. Companies that generate healthy returns for its shareholders have a record of consistently paying and increasing its dividends. For these investors, they enjoy share price appreciation and growing dividend payouts.
This individual is more concerned with the business fundamentals of the corporation. Their time horizon is a minimum of 5 years. As long as the corporation continues to thrive, this investor won’t be too worried about how the stock is trading daily or even weekly. This investor checks the share price now and then just to keep the tab.
The Momentum Investor/Position Trader
Whether you are a momentum investor or a position trader, the objective is to generate returns in excess of 30% within weeks or months. The approach to investing is the same and the individual can be categorized as one or the other. To identify a potential investment opportunity, the investor looks for the following: Rapid growth in sales and earnings, forecasts of sales and earnings being revised higher, return on equity in excess of 15%, the stock price chart showing price appreciation and heavy share trading volume.
Since these shares can appreciate rapidly, they can lose their value just as quickly if investors feel the company’s recent positive developments is losing momentum.
To keep track of the company’s latest progress, this investor needs to monitor the share price on a daily basis. This market participant refers to the free stock quote several times during the day. The investor must be prepared to act when the opportunity presents itself or the situation suddenly weakens.
The Swing Trader
The swing trader looks to pick a stock’s price appreciation within one to four days. These market participants do not pay attention to the company’s intrinsic value or business fundamentals. They are only interested in the short-term price momentum of the share price. The key is to use technical analysis, the analysis of a stock’s past price history to predict future price behavior, to take advantage of any short-term trading opportunities.
There are a variety of trading systems that the trader can use. Never the less, this individual relies on free stock quotes during the course of the day. They must constantly monitor the stock price so that they know when to buy or sell the stock. The goal is to maximize the profit from brief price upswings. If the stock trade does not materialize as hoped, the stock must be quickly sold to minimize losses.
The Day Trader
The day trader attempts to profit from the buying and selling of stocks throughout the day. At the end of the daily trading session, this individual holds no stock positions. A gain or loss is taken in on the difference between the purchase and sales prices. The time span between assuming a stock position and unwinding it is usually in minutes or in hours at the most. For this trader, the latest free stock quotes are constantly required since buying and selling decisions are made very quickly.