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Will Google Stock Split in 2021? Google Stock History.

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google stockHistory of Google in the stock market

Google is one of the biggest companies in the world. Let us start from the basic: What is the stock ticker symbol for Google? Google stock ticker symbol is GOOGL.

The internet search engine Google had its Initial Public Offering (abbreviated as IPO) more than 17 years ago, on August 19, 2004. At the time of the IPO, a share of google was available for purchase for $85. At present, the price of these google shares, with the symbol GOOGL, company Alphabet is more than $1734, resulting in more than 1000% for the stock’s initial investors.

The history of Google in the stock market

Google stock history was:

  • Google had its IPO on August 19, 2004, and 19,605,052 shares were sold in the IPO.
  • Later, a two-for-one share split was announced to create a new category of shares without non-voting rights.
  • On the second October 2015, Alphabet Inc, the umbrella company of Google was started, to include different side projects which are not directly part of Google.
  • Investors can invest in GOOGL shares using the top online brokers recommended for stock traders with limited experience.

When did Google begin listing in the stock market?

Alphabet Inc was earlier known as Google. The company initially sold 19,605,052 shares on August 19, 2004, as part of its IPO. A year later, Google sold an additional 14,25,265 shares on August 18, 2005. In June 2005, the valuation of Google was approximately $52 billion. After the second lot of Google shares were sold on August 18, 2005, the cash reserves of Google doubled to $7 billion. In 2017, the net sales of Alphabet were over $90 billion, its profit $19.4 billion. This was significantly higher than the sales of $968.1 million and net income of $105.6 million in the year 2003.

When will google shares split?
History of the stock split by Google

Just before Facebook announced its IPO in 2014, Google announced its stock split, which led to controversy. The company announced the stock split since it wanted to create a new category of non-voting shares. In this two-for-one stock split, the Google shareholders received one more additional share without any voting rights for every share of the Google stock they owned. Experts claim that the stock split was announced mainly because of the IPO of Facebook, another large internet company. Experts claim that Google used the stock split to inform investors that they continue to be the world’s leading tech stock.

Google split history:

Date of splitSplit ratio
GOOGL 3 April 20141998/1000
GOOG 27 April 20152.7455/ 1000

Larry Page has voting power of 26.1%; Sergey Brin has 25.2% voting power.

 

Will Google Stock Split in 2021?

Based on the latest Google news in 2021, Google stock is unlikely to split because investors do not need an increase in asset liquidity.

 

Alphabet stock

The founder of Google, Larry Page, claimed that the new products being developed are likely to be used extensively. Hence they would generate new revenue sources for Google and its partners, just like search is the major income source for Google. Larry Page has big dreams for google. Hence he converted Google into a larger company Alphabet Inc. The detailed note from Larry Page describes how Google has grown as a company. He also described how Google would begin a new phase in its history and become a company controlled by Alphabet.

The formation of the parent company Alphabet was fairly simple. Google had many side projects like driver-less cars, contact lenses for sensing glucose levels, anti-aging, longevity products, which were hundreds in number. As part of the restructuring of Google announced in October 2015, all these projects were split into separate companies from Google. Alphabet is now the parent company for all these different smaller companies. Though there is a lot of information on these smaller companies online, a simple way is to list their names.

A list of the business units of Alphabet is provided below.

Calico: This unit specializes in biotech-related research, development. It is involved in studying the lifespan of humans and also developing anti-aging products.

GV: Google ventures, the venture capital unit of Google

CapitalG: This is a growth equity fund that invests in companies worldwide. CapitalG focuses on companies that use technology uniquely and are planning futuristic products and services.

Verily: This is the research unit of Alphabet, mainly focusing on life science-related studies.

Waymo: is an independent automotive development company specializing in self-driving cars.

Nest Labs: A company focusing on home automation

X: A research & development company that tries to find solutions to the most difficult problems in the IT, computer science, and associated fields

Sidewalk Labs: A company that focuses on designing and building innovations for urban areas to help large cities overcome their many problems

Fiber: Provides high-speed internet over a broadband connection

Google: the main internet company, Google, continues to exist, though some of the features/options like Google+ have been closed since they were not very popular online. At present, google includes search, ads, Android, apps, maps, and YouTube.

Should an investor purchase GOOGL stock

After reading the history, many stock investors would like to determine whether it is worth investing in Alphabet at present. Some investors hope that Alphabet will offer a stock split since the stock prices will fall after the split is announced. This will make the shares more affordable for investors, especially those with a limited budget. However, most stock market experts who monitor Alphabet closely claim that it is doubtful that the company will announce any stock split for many years.

In 2017, the Alphabet stock price rose to its highest levels ever. In the previous year, the share prices increased by over thirty percent. Hence Alphabet shares are expensive. With shares priced at more than $1000 each, it is difficult for most small investors to even think of purchasing a few shares of GOOGL. Alphabet remains a highly diversified company, investing in many futuristic technologies, including broadband cable, driver-less cars, and research in the life sciences. Hence the company has a large number of opportunities available to it. The company has a leadership team that dreams big and has massive plans for growth. All this makes Google one of the best stocks for investors in the stock market. However, investors should be able to afford high GOOGL prices.

What is Swap Fee in Forex?

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Traders can see in statements overnight rollover fees. Sometimes, depending on the main difference of the interest rates between the currencies in a pair, this fee will be paid to you.

But, what is the meaning of swap in forex trading?

What is a forex swap fee?
Forex swap fee or forex rollover represents the interest that traders can earn or pay on positions held overnight on the Forex market. The swap fee can be applied if traders hold the positions at the daily rollover point, which is 00:00 server time or “tomorrow next.” A swap long fee will be applied when traders keep long positions open overnight, and swap short will be applied when traders keep short positions open overnight.

You may be aware that there is money to be made in forex, but you may not know how to go about it as a beginner. You may have come across terms like rollover fee or swap in forex trading. But it is quite possible that you may not be fully aware of the same because of a lack of information and knowledge. Further, if you are one of those who are into scaling, you may have never come across such types of fees. Nonetheless, it would not be a bad idea for you to have a reasonably good understanding that could answer the question of how to earn a swap in forex. We are sure the next few lines may help readers come out with the right answer to the above question. It will help them to have a newer and more informed perspective about forex trading. It will perhaps help them succeed in forex trading in the medium and long term perspective.

How Does It Work?

If traders are short EUR/USD overnight, traders will be charged interest for borrowing EUR, and traders will receive interest for lending USD.
If traders are long EUR/USD overnight, traders will be charged interest for borrowing USD, and traders will receive interest for lending EUR.


Positive and negative swaps in forex
Positive Swaps in forex represent a positive difference between the interest charged and received, and then traders receive the difference in the trading account.
Negative Swaps in forex represent a negative difference between the interest charged and received, and then the difference will be taken out from the trading account.

Since swap is the difference in interest, it can work both ways. You could either be paid for the difference in interest rates for such overnight trading. On the other hand, you could be charged an interest differential amount. This would be dependent on the currency pair that you are trading during such a swap situation. When you decide to trade on margin, you will end up making money on the interest. This will be for long positions after squaring off the interest payable on the various short trades. When you decide to net a profit, you will be termed as being in a “carry” position. On the other hand, if you have decided to take only trades that will lead to a positive interest as far as your account is concerned, you are considered a carry trader.

Things To Bear In Mind

When you are into swap trading in forex trading, you need not worry too much about losses. However, this will be possible only when you keep your trade as short as possible. It would be advisable not to keep the trade longer than a week or ideally for around five days. It would also not be good to keep the trade open during the weekend because violent volatilities often happen when trading opens after the weekend. Successful traders who use the swap mode try and use this facility twice a week, and they believe that it could give more profits. Hazarding guesswork during the beginning of the next week is best avoided.

Islamic accounts usually do not offer rollover fees; they are swap-free. Usually, this is because of religious purposes because swap is interesting, and every kind of loan is prohibited (haram) in the Islamic world.

Forex broker without swap
Forex brokers that offer swap-free accounts are:
Hotforex swap free account
Avatrade swap-free account
ICMarkets Islamic swap-free account

Bounce Back Strategy

Bounce back strategy could also be used when using swap as an alternative. Many successful traders have used it on Monday and Tuesdays. However, the bounce-back strategy should not be kept open for long periods of time, and it should be closed by Friday mornings. It would be better to get out swap option by Friday even if there is a loss situation. Keeping it open till Monday next should be avoided as much as possible. You have to bear in mind that if the carry forward is positive, you stand to gain money into your account. If it is negative, you have to square off the difference, and it will be taken from your account. This is auto-calculated as far as brokers are concerned.

Are The Fees High?

The swap fee for major currencies is not very high, and in fact, the fee for gold in such situations could be much higher. However, it could vary a lot, and as somebody who is just getting started, you should not bother too much about the possible variations. However, if you are serious about it and would like to get into long swing trades, and if you are keen on holding onto the trades for a few weeks at one go, you must put effort into research. You must visit a few sites and also use calculators so that you are updated about the possible outcomes using the swap option.

Is It Possible To Avoid Swap Fees In Forex?

Many new traders often ask if it is possible to avoid swap fess in a forex transaction. To get an answer to this, you need to look at it from another angle. You could look for trading in trends that are beneficial to you, even if it means carrying your account forward to the next round. You could choose to trade intraday if you close your trades latest by 5 PM EST. This is the time when the New York Session comes to an end. This is considered to be the easiest way to do things and to avoid paying the swap fee. It works fine, but it might require some bit of practice and handholding before you can do it perfectly.

The Final Word

It is evident from the above that there are some pros and cons of using the swap mode of forex transaction by paying the requisite fees. Though there are ways to avoid them, you should not bother too much about it till you are comfortable with the demo versions. However, it would help if you did not allow swap trading to take over swing trading completely. It all depends on your style of trading. If you can do it properly, it is quite obvious that your wins will be much more than the fees that you may end up paying. You also can have the luxury of looking at many brokers if you believe that your spread and other expenses are smaller than other brokers. You should know how to spread the risk across. Ideally, it would be better to trade longer than a day, with around 10 to 20% of the entire trading volume. However, at the same time, some trade does take a lot of time. It may not be able to come out with a single strategy, and you may have to do quite a bit of permutation and combinations before you can come out with something new and successful.

Breakout Trading Indicators

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A breakout is anything unusual. Similarly, when a stock price goes beyond a defined resistance or support level with increased volume, it is a breakout. When the price rises after it breaks a certain level of resistance in Forex trading, we call it a Forex breakout. Forex breakouts can also occur when specific levels, like resistance and support level, the Fibonacci level, or the pivot points, are breached. 

Breakout trading is popular in Forex as it provides the risk-reward ratio. It also enables the traders to identify the position that they will hold. Traders and investors use breakout trading indicators to make their strategies. First, let’s know more about this term.

Defining a Breakout

Breakout represents a trend change in the trading time frame. For example, if the price is rising last 24 hours on an hourly chart, and if the price breaks the last 24 hours trendline, then breakout occurs. Breakout is sometimes very tricky to figure out because sometimes it is tough to distinguish between consolidation and breakout. 

It might be a word that they would never want to face or hear for a teenager, but it means a lot for a trader. Breakouts help in clearing many crucial levels on a chart. These are psychological levels that resonate with how the day trader might be feeling or what their sense might be telling them about price levels. We all know that trading is not a place that can be successfully run by emotions. Breakouts help in clearing such blocks. 

While the breakout day trading can help an ordinary trader transform into a brilliant trader, it can also make you face losses if you day trade quickly because the prices tend to revert to their original mark. This situation can be easily avoided by learning the art of patience. Trade only when you are certain that the odds are in your favor. You need to be able to distinguish between genuine and fake breakouts. Yes, it is easier said than done, but with the help of the best Forex breakout indicators available on various platforms, you can easily learn to do it.

How to Use Forex Breakout Strategy Indicators

Trading breakouts are not successful when the market is not trending. It will also work when the market conditions are range-bound; that is, the price action needs to be close to the upper end of the market range. If the market conditions are right, the following strategies and indicators can help you form successful trading strategies.

The best indicators for breakout trading

Breakout Trading Indicators are MACD, RSI, Volume indicator, and all oscillator indicators. Traders can draw a trendline on an oscillator indicator line. If the price level breaks the trendline, then the breakout will happen.

Below you can see the RSI trendline breakout example:

RSI trend lines

The best breakout trading indicators are:

  • Moving Averages Convergence/Divergence (MACD) – One of the most common Forex breakout strategy indicators that traders use in the MACD. While this indicator appears simple and is easy to understand, it is highly dependable as well. Its histogram templates indicate a rise in momentum. Though it indicates a rise, it is used to identify a reversal in trends. You can do this by looking out for divergences that can be clearly spotted when indicators and prices move in opposite directions. As the MACD indicates momentum, you will see movement upon the triggering of the market trends. Many traders swear by the MACd as it helps them distinguish stable trends and those that could close without warning.
  • Relative Strength Index (RSI) – RSI helps in confirming reversal breakouts. Similar to the MACD, you can use this indicator to spot the divergences. Once these divergences are identified on time, it becomes easy to predict if the trend will reverse or not. You can use this indicator to check how long a trend has been overbought or oversold. The market is considered overbought if the RSI value is above 70 and oversold if the value is 30.
  • The Volume Indicator: Both veteran and new traders consider volume as an important trading indicator. You can conduct volume analysis with it and can help in the assessment of the trend health. Volume Weighted Moving Average (VWMA), a volume-related tool, can enable you to identify the breakouts.

Swing traders and intraday traders regularly participate in breakout trading. It works perfectly in a choppy market as it allows the traders to keep their investments safe.

What Time of the Day is Best to Buy Stocks?

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Picking up a stock depends on your experience level, available capital, trading style, etc. You may have different preferences for trading altogether like position trading, swing trading, short or long-term trading, or may have the intention of investment. Thus, to choose the best share, the best you can do is add this into your trading plan and risk management in place. It would help if you made your trading plan to change, transform it on the way as you learn and grow.

The first thing you have to do is to know your risk appetite. You can use the risk to reward ratio for it. It is the rate that states how much risk you are willing to take to get the desired outcome. For example, the risk to reward ratio of 1:2 means, for each $2, you are willing to risk $1.

Also, regardless of your trading personality, you need to plan a strategy for selecting stocks for future trading or picking swing trade stocks; it can be anything!

 

What Time of the Day is Best to Buy Stocks?

The best time of the day to buy stocks is from 30 minutes to 1 hour after the stock exchange opening. In this period, the opening price range is formed, and it is the period of the biggest liquidity and volatility for trading assets. Usually, the best time to buy stocks is Tuesday after the opening range (one hour after markets open).

Below is the presented S&P 500 percentage change per weekday in 2020 and 2019. Here we can see that the best weekday for stock buying is Tuesday. On Monday prices very often correct from the Friday trend and during Tuesday price usually starts the weekly trend.

 

what weekday does s&p 500 increase the most

Tuesday was the best day to buy stocks and catch a trend in 2019 and 2020

 

Let us see one example of stocks opening range:

best time to sell stock based on opening range

In the first hour in the stock market, the price oscillates between the green and red areas. A trader can sell a stock when the price breaks opening range support (red area).

 

Usually, the best time to enter into a trade is when several triggers occur, such as technical price level reach previous support or resistance, fundamental news, company news, etc.

Choose Stock Based on Your Personality Type

Choosing stocks based on your personality or age works the best, i.e., if you are 20-22 years of age, you might be knowing about a new game or advanced technological tools. Your mind would be sharp and observant of things that others can’t notice. You can take the risk as you are young and have different priorities at the moment. On the contrary, if you are a 60 years old individual, you have different goals. You may prefer having stocks that have stable returns and are less volatile.

Thus, the decision you take should be deeply analyzed. You need to know the stability and overall volatility of the stock and the market. You can use the available level I or II information or learn to use tools to have a more precise decision.

Best time to buy stocks and Risk Management

As stated above, you need to have a risk management strategy if you want to be in this game for the long term. You must preserve your money while having the risk under control while choosing the best share.

There are so many stocks in the market, having diverse price sensitivity, volatility, price, etc. Thus, first, choose the risk you are willing to take according to your skills, knowledge, and experience. With time, you can increase your risk appetite.

The most common mistake that novice traders make is to go with the flow and see how the trading goes! That is the worst thing you can do to yourself as a trader. Take systematic and calculated steps and risks, as, without that, trading is nothing but gambling! Make a plan and stick to it.

Simplicity is the Best Policy

Yes, be simple, trade simple. Do not ride on all the horses at once. If you want to invest for the long term, pick one stock, study the stock, and analyze it. The stock has its own individuality, which you need to learn before investing in it.

It would help if you analyzed the charts on different time frames like hourly, daily, weekly, monthly, etc. With time, add stocks one by one in your learning pattern, and when you are sure of moving ahead, start to build your portfolio. This will help you learn the stock behaviors closely.

In the end, pick stocks aligning with your trading strategy and overall expectations.

Stick to your trading strategy for the day; if you feel like changing or modifying it, at least wait till the day closes. Make rules for yourself and be loyal to them. Following are a few examples of the rules that you can stick to for the day of trading after choosing the stock!

 

Is Forex Trading Just Gambling?

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People often mistake the stock market and forex trading for gambling, but it is not. Trading and gambling are two different terms but are used interchangeably by mistake. Though one thing is common in trading and gambling, and that is taking the risk. In both, you indulge or lose money to win it in multi-folds.

Is Forex Gambling?

Forex trading is not gambling because gambling is based on taking risky action in the hope of a desired result. Trade is a methodical and systematic process not based on luck – it is based on analysis and testing. However, many traders that trade because of excitement has hidden gambling tendencies. Poor risk management without analysis and testing can change the trading process into gambling.

When you gamble, you prefer luck to have a driving seat, just like you roll a dice; you never know what would be the outcome. It is just mere taking chances. Though when you trade, you don’t enter the market with luck as the market discounts everything. A trader analyzes the market conditions, and based on his/her analysis, concludes what would happen.

As a forex trader, you can also apply various trading strategies, patterns, indicators to know when to trade; it also increases the chances of winning the trades.

By having a mindset of a gambler, trading also becomes gambling. If you trade without understanding the market, without a trading plan, and without doing any research on your part, you are just gambling in the forex market.

Unlike gambling, if you apply your logic in forex, you have better odds of winning. The best way you can do so is by having a forex education. It will make you a trader from a gambler if you are one. This article would help you to learn these concepts better.

When Trading Becomes Gambling?

When you put your money in trading without having a plan, it becomes gambling. It can happen in several ways, as stated below.

1. When You Chase Losses

This is a prevalent and worst type of mistake that forex traders often make. In such cases, a trader keeps on betting money even when he/she is losing money. It is similar to gambling in casinos, where you keep on trying to win your lost bets by making more bets, and in the end, you lose more bets than you initially had in your account.

It is indeed a vicious physiological cycle fuelling the concept of winning in a gambler’s mind. But traders often forget that it is risky to trade so blindly. If a trader has used leverage for the same, it becomes many times more perilous than the initial trade.

Let’s understand this with an example. Susan is a forex trader and buys USD/JPY at 2.3333. At the end of the trade, her position is at 2.3110. She made a loss. But now, instead of accepting the fact she made a loss and moving on, she freaked out and ended up taking a similar new position immediately.

She didn’t see market conditions, opening price, or volatility; she just entered the trade, and in the end, ended up multiplying her loss. Her mindset was to settle her loss, but she gained more enormous losses. Her panic and short-sighted vision led her to take bigger trades.

Often, a trader keeps on trading and repeating this pattern until nothing is left in their account. They might make a little money in this process, but this kind of mindset is hazardous if one wants to be in the trading arena for the long term.

2. When You are High on Winning Trades

Well, everyone’s trading journey is different, and so is how their forex trading turns into gambling. When a novice trader enters a trade and by chance ‘Get Lucky,’ he/she may feel that he/she has got it and can make money very easily.

But often, it is just the beginner’s luck, and it would not back every trade. However, the wins, in the beginning, make them so excited that they end up misunderstanding it for their capabilities.

As a result, such forex traders keep trading the way they are trading without studying the market, but trading in such a foolish way leads to a bubble blast someday. Things get worse when the trades are bigger. Having a gambler mind can lead a person to believe that if he/she gets profit with such a small amount, he/she will do wonders if traded with big trades. That’s how they get into a disastrous loop.

In this case, a trader is not chasing the profit, but he is pursuing the high of gaining the trades. They have the capacity to involve all their money to get the feel of winning by luck as they did for the first time (on a loop.)

How Can One Identify the Signs of Gambling?

Gambling is very similar to addictions and can be identified with a few signs, as stated below.

Isolated Personality:

Under this sign, a person stops interacting with other people such as friends and family because of being so involved in gambling.

Messed Up Financial Condition:

The person ends up gambling the most amount of capital that he/she owns; they may also lose all their savings and borrow money on interest from others to fuel their gambling addiction.

Less Sleep:

The person gets involved in trading so much that he/she hardly sleeps. Their losses or the thought of losing interrupts their sleep making them feel insomniac.

No Self-care:

Their addiction does not stop here, as the person also becomes irresponsible in eating, maintaining hygiene, and taking care of the house.

Emotional Distress:

Their emotional imbalance causes the person to become anxious, hyper-aggressive, or he/she would feel depressed as well.

Challenges in Performing at Work:

The person can find it hard to manage and perform at work. The person may have issues with his/her co-workers, they act absent-minded, and in worst cases, they may gamble at work as well.

Combines Addictions:

These people often combine their addiction to gambling with other addictions such as drinking, smoking, taking drugs, etc.

Oblivion of Other Problems:

The person is so much involved in gambling that he/she can ignore other problems that are in front of him/her.

No Knowledge of Forex Trading:

While the person gambles in the forex market, he/she may not possess any training, education, or knowledge about it.

People struggling with gambling should take help from others without any hesitation. There are many organizations like NHS that help people to come out of their gambling addictions.

How Can You Avoid Gambling Forex?

If you already have a tendency or addiction to gambling, you should avoid getting into forex in the first place, along with any other form of trading. Forex trading seems easy, but it is not for everyone.

If you have just entered the forex trading, you can stop it at any time you feel. You need to have a firm mindset to enter the forex market. You have to learn how to trade in the forex market to avoid forex trading best. Forex education is a must, whether you are a beginner trader or an experienced trader.

Another important thing that one should consider is that forex trading is not a pass time; it requires as much focus as a full-time job or academics. It needs the preciseness to identify the patterns and indicators with the skills that you have gained.

The Bottom Line

No professional traders gamble all their deposits, lose it and try to win it back by trading impulsively. By that, it does not mean that professional traders don’t lose money, but they don’t make the same kind of mistakes repeatedly. They have skills to identify when they can enter the market and exit to earns them a profit. They keep themselves updated with all the news around the glove and apply their own reasoning and logic to practice while trading. 

In addition to that, they have their own trading strategy and risk management in place. Traders are likely to lose money at some point in time, but they must control how much they are willing to lose and their risk to reward ratio. Having stop loss is equally important as the market doesn’t go by what you predict, and it becomes essential to have your own safety.

It is also important to know as a trader when you have to give up and continue. Taking slow and steady steps always win. So, the bottom line here is – if you want to avoid forex gambling, the solution is to educate yourself and trade forex just like a professional.

Top Points to Remember

The following points would give you the crux of this article.

  1. Remember that forex trading is not gambling; if you do not know, it becomes gambling.
  2. There are signs that a person having addictions to gambling shows like insomnia, lack of self-care, absent-mindedness, etc.
  3. Those involved in gambling do not have any trading strategy; they trade totally naked without considering anything.
  4. Trading in forex needs one to have education regarding the same as that is the best way to avoid gambling.
  5. You can also trade forex on a demo account to learn trading first and avoid losing money.

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