dividend written with blue bars and numbers on the background

Top 5 Dividend Stocks to Invest in 2018

People who are coming into retirement look for income-producing investments. This is most especially true after 9 years of historically low interest rates that hurt conservative investors. If you plan on living for another 10 to 30 years, Treasury yields won’t just work. That is why you need are the top dividend stocks to invest in 2018.

each stacked coins are increasing gradually in each hour of the clock

If you’ve got no idea what dividend stocks are, you can read more about them in Dividend Stocks : Basic Terms and Strategies. After that, check out our Dividends: Knowing How They Work and Their Value.

Top 5 Dividend Stocks

Johnson & Johnson

yellow and organe baby shampoo products and powder products from Johnson & Johnson

You can begin investing with the archetypal blue-chip dividend stock Johnson & Johnson. There’s nothing better than having a more diversified and consistent stock on Wall Street like Johnson & Johnson. It’s a 132-year-old healthcare and consumer conglomerate that managed to outperform in about every mid- to long-term period.

This company has a 55-year streak of raising its dividend attests. Its stock could be a reliable long-term foundation of any portfolio.

Walmart

Walmart is the world’s largest retailer, with roughly 4,700 stores in the US.  This retail giant expects US e-commerce sales to grow 40% in the current fiscal year. The revamped website with a focus on fashion and home goods will drive the sales, according to the company. In addition, Walmart is investing heavily in its online grocery delivery service.

The company has been bringing meager penny increase to its dividend since 2014. That has been enough to maintain its 45-year streak of consecutive annual payout hikes.

JPMorgan Chase & Co.

JPMorgan is the most valuable bank in the US. It’s a proven blue-chip dividend stock that delivers investors profit when interest rates rise.

Back in November 2016, Donald Trump was elected president. Since taking office, Trump has replaced Janet Yellen at the Federal Reserve, slashed financial regulations, and pushed through tax reform. None of those factors had negative effects towards the bank. It has 2% dividend, systemic stability, and positive outlook. This makes JPMorgan one of the top stocks to buy for 2018.

Coca-Cola

a coca cola bottle is laid on ice

If Coca-Cola can quench consumers’ thirst, it certainly quenches investors’ thirst for income. The company has paid dividend since 1920, and that dividend has increased annually for the past 55 years.

Further, Coca-Cola knows how to keep up with the market when the US market for carbonated beverages declined for more than a decade. The soda giant added bottled water, fruit juices, and teas to keep the cash flowing.

Intel Corp.

Blue-chip semiconductor maker Intel is one of the top dividend stocks to buy for 2018. A 2.5% dividend and a 36% payout ratio shows that Intel can afford to not only sustain its dividend indefinitely but increase it in the years ahead.

It traded at a modest 15 times earnings, and exposed itself to high-growth areas like autonomous vehicles and artificial intelligence. Intel has successfully transitioned from the PC market to a diversified chipmaker with exposure to the future’s biggest trends.

Bottom Line

These are the top dividend stocks to buy right now in 2018. Though they are still more, these would be a great start when looking for investments.

These are the kind of stocks you can hold long-term and just watch the cash flow come flowing in. However, there are still mistakes you need to avoid. And you can read the article in our 4 Dividend Stocks Investing Mistakes You Need to Avoid.

You can earn bigger profits and execute better trades here at Trade12 by reading the latest market updates. Striving to become the best forex broker for you, Trade12 reviews daily events essential to your trading activities to help you improve your overall trading performance. Register an account now and enjoy a wonderful trading experience!

businessman holding a white card that says day trader

8 Day Trading Rules that are Proven Effective in 2018

If you’re planning to day trade, you need to have a set of proven day trading rules to effectively manage any given situation. And the most important thing is to have the discipline to follow these rules.

Furthermore, the most common trading mistake for rookie traders is throwing out their own rules during a crucial situation. Sometimes, they do things without considering the risk and the potential loss, which could lead to disastrous results.

Read more about Beginner’s guide to day trading.

Sure, these trading rules are not your obligation to follow. But they can certainly help you make vital decisions when needed. These are the most effective rules for day trading for beginners.

a male sits on a chair and works on his laptop and a cup and a phone are beside it on a wooden table

Effect Day Trading Rules

  1. Knowledge

Before picking forex or stocks, you should have knowledge about the trading procedures and tools. And information about the security you’re trading at, such as company financials, reports, charts, economies, and etc. are also important. You also have to know the latest in the stock or forex markets, or what events that affect the markets. In the absence of knowledge, day trading can take a huge toll on you.

One of the best day trading tips is to do your homework. Keep yourself informed about the selected companies. There are numerous resources out there to take them as your advantage.

  1. Enter, Exit, and Escape

This is not only a rule, but one an essential day trading strategies.  You must have an enter price, an exit price, and an escape price in case things go bad.

In other words, before entering a trade, you must know when to get in, when to get out, and what to do if your position moved against you unexpectedly.

Moreover, having an escape price, also known as a stop price, is vital if you want to minimize losses. Determining when to  get in or out will help you lock in profits, and save you from potential disasters.

  1. Use Limit Orders, not Market Orders

A market order tells your broker to buy or sell at the best available price at the time of execution. However, best doesn’t always mean profitable.

A market order doesn’t have a price guarantee, but a limit order does guarantee the price, but not the execution.

Having a limit order gives you control over the maximum price you’ll pay or the minimum price you sell. It’s recommended to have a limit order so you can set the parameters.

  1. Be Realistic

As you’re getting ready for a trade, ensure that you don’t lose out on decent gains in the greed for more. The markets are unpredictable and it’s ideal to settle down for a smaller profit than losing heavily.

Additionally, don’t regret losing out on a chance. Remember, every small profitable trade will help boost your confidence. It will also give you a chance to try out the strategy again.

Being realistic also applies in having an enter, exit, and escape prices, and having limit orders.

  1. Set an Amount Aside

As a beginner, you have to understand that day trading is risky. Set aside a number of funds that you can trade with and prepared to lose. Don’t include the money that fills your need such as basic living, expenses, and whatnot.

  1. Avoid Margin Trading

Margin is borrowing money from your broker to finance your trades. When used properly, margin can leverage potential returns.

Margin helps to amplify your trading results. However, it’s not just profits but of losses as well if a trade goes against you. If you are just starting in trading, you must first learn how to day trade without using margin.

Learn more about Getting to Know Leverages and Margins.

  1. Avoid the Rush Hours

Traders placed many orders as soon as the markets open in the morning. Therefore, they contribute to price volatility. The first 15 minutes are often panic trades or market orders placed the night before.

You should avoid this time period while also looking for reversals. If you want profits, it’s best to wait until you’re able to spot profitable opportunities. Though the rush hours offer opportunities, it’s better to avoid that time as a novice trader.

  1. Control your Emotions

There will always be a time when the markets test your nerves. Whether they are confidence, greed, hope, or fear, you must learn how to control them. Only decide with logic and not emotion. It may be difficult at first, but only someone who can learn this can be successful. A great way to practice is trading with a demo account.

a man holds his cup of coffee while holding a tablet and looking at a chart on it and a laptop and a pair of glasses are on the table

Read more about 5 Emotions that go against trading.

Further, at the first hint of losses, don’t panic. This is a common problem for beginners as they end up making impulsive trades that cost them huge money. For you to become successful, you must accept and willing to lose before you win.

Bottom Line

Anyone can be a day trader, but only a few are successful. But as long as you follow these day trading rules, you’ll always be on the right track to becoming successful trader.

You can earn bigger profits and execute better trades here at Trade12 by reading the latest market updates. Striving to become the best forex broker for you, Trade12 reviews daily events essential to your trading activities to help you improve your overall trading performance. Register an account now and enjoy a wonderful trading experience!

a thumb pressing a mobile phone that is showing a stock quote and a technical graph

7 Easy Ways to Find the Best Day Trading Stocks

The stock market is huger and it’s overwhelming to see thousands of stocks to choose from especially when you’re strategy is day trading. And what you need is an easy way guide on how to find day trading stocks.

To know more about easy day trading, you can learn day trading with our Beginner’s guide to day trading.

a blue bubble that says day trading and a finger pointing at a mobile device

What Day Traders Look For?

Some traders look for new stocks every day to trade. The might look for stocks that are showing unusual patterns or the most volatile. Other traders find for stocks that are consistently volatile. They trade these stocks for weeks to end.

Additionally, some other traders would trade the same day stocks all the time. This is ideal for day traders as they don’t need to constantly find new stocks.

What to look for day trading stocks?

Volume

A day trader needs sufficient stock volume to enter and exit trades on demand. The higher the volume, the easier it is to enter or exit positions with little or no slippage.

Further, majority of day traders trade stocks with at least 1,000,000 in daily volume. One good example is the S&P 500 SPDR, which is an ETF.

Volatility

A common approach for day traders is trading a stock with strong movements throughout the day. Each stock is unique. On average, it might move 0.5% per day, 1% per day, or even more than 5%.

Moreover, when choosing a stock, make sure to consider your trading personality, trading style, reflexes, and broker.

To learn more about volatility, check out How to Conquer a Volatile Market.

Trend or Range

The trend or range is another aspect to look for. These 2 aspects are useful if you are utilizing a certain strategy. But if you like trading ranges, only trade the ones which have a tendency to range. Similarly, if you use a trending strategy, only trade stocks that have a trending tendency.

How to look for day trading stocks

a black wall street sign with an exchange written on a building on the background

Find Stocks with pre-market movers

Pre-market is one of the financial world’s favorite ways to fake you. A stock can rose 6% in pre-market only to open up 2% after the opening bell. The reason for this is because of the thin volume.

To avoid this, here’s what to look for when looking for stocks during the pre-market session:

  • Stocks greater than $5
  • Volume needs to be heavy. No exception for a stock that rose 20% on 200 shares.
  • When you see a stock that meet the 1st two requirements, check the volume average for the last 30 days. You’ll filter out the stocks that normally trade thinly which are not good for day trading.

Only trade stocks with high volume

Just as mentioned above, you only need to trade stocks with a higher volume. If you have a broker account, the brokerage must have a list of the most active. Look for stocks that can provide you opportunities, but are not being tracked by investors.

In addition, find stocks that are rising on high volume relative to themselves. If your platform doesn’t give you a good list for high volume stocks, there are other great resources available on the internet.

Watch the earnings calendar

Reporting of earnings is an event that can bring a significant amount of increase in volatility. Keep track of which stock is up for the week. That way, you can start to monitor how the stock is trading going into the announcement.

Furthermore, you can also make use of social media or news sites to see which stocks are trending. However, don’t let this be your basis if they’re good for day trading.

Social media only serves you to see which stocks are worth monitoring.

Focus on few stocks

If you find it tiring to look, watch, and react quickly on different stocks on a daily basis, then you might want to focus with one or two stocks.

When choosing a stock to trade, you have two ways on how to approach this. The first one is selecting the most popular stock. The second is picking your favorite stock based on your past trading performance.

Here are the top 10 best day trading stocks.

Stock Average Volume
1.       S&P 500 128 million
2.       Apple 53 million
3.       Facebook 50 million
4.       Micron Technologies 34 million
5.       Microsoft 33 million
6.       General Electric 31 million
7.       Micron 30 million
8.       Ford 27 million
9.       Tesla Motors 10 million
10.    Google 6.6 million

Read more about the different types of Stocks and their Classifications.

Final word

There are a lot of ways to select the best stocks for day trading. And along the journey, you’ll surely find other ways that are suitable for you. Just remember, don’t try to figure it all out in one day. It might take time to master the ways of day trading, but it’ll all be worth it at the end of the day.

You can earn bigger profits and execute better trades here at Trade12 by reading the latest market updates. Striving to become the best forex broker for you, Trade12 reviews daily events essential to your trading activities to help you improve your overall trading performance. Register an account now and enjoy a wonderful trading experience!