“Rule No.1: Never lose money. Rule No.2: Never forget rule No.1." - Warren E. Buffett

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Thursday, December 11, 2008

Investor Rights

You want to invest on stocks, want to get involved in share trading, want to jump into online trading, and you do, either you do it on your own or with somebody's advice,but do you know about your rights as an investor. Yes investors enjoy some rights which you are supposed to know, even though its no need for you to memorize it but keep this link in safe place so when the need arises you can use it.

Investors enjoy certain rights under The Companies Act, 1956, Securities & Exchange Board of India Act, 1992, Securities Contracts (Regulation) Act, 1956 (SCRA) and The Reserve Bank of India Act, 1934. These rights vary, depending upon the type of investor you are, i.e. Shareholder or debenture holder or a depositor. Some of the important rights, under different Acts, are summarized below:

Check here for your Investor rights.

Monday, December 08, 2008

A Simple way to Invest


I read this article by shyam.P on The Hindu, recently titled "simple ways to invest" where the author explains point blank on the bulls eye. Not only the article is titled as simple ways to invest, the article itself is so simple that any lay person could understand why his investments vanished and how to invest safe and see his investment fetch at least something if not bringing him billions. I reproduced an extract of the big article (you need not worry about the balance I have reproduced here is the cream of the article) which I recommend you to give certainly a read full rather than an overview, you will certainly understand the basic idea how to invest. You must read this article whether you are a beginner, or experienced.

The secret to profitable investment is to ‘Pay Less’

A simple rule for deciding when to invest in the stock market can be developed based on the ‘Price-to-Earnings Ratio’ or ‘P/E Ratio’ of the Index. But before going into the P/E of the Index, let me first explain how to calculate the P/E of an individual company.

P/E of a company = Share price of the company/ Earnings per share

where, the Earnings per share = Net Profit made by the company during the previous year/ Total number of shares in the company

The Index is nothing but a weighted average of the share prices of underlying companies. The National Stock Exchange’s ‘Nifty Index’ represents 50 of the largest companies listed on the Stock Exchange, spread across sectors. Similarly, the Bombay Stock Exchange’s ‘Sensex’ is a collection of 30 of the largest listed companies in India. The Index can be taken as a representative of the entire stock market. This is why when the Index is down, most probably your portfolio of stocks is also down.

The P/E ratio of the Index compares the share price of all the underlying companies to the annual profit (earnings) of these companies. Whenever the share prices change, the P/E ratio also changes. Let me give you an example: In Jan 2008, the P/E ratio of the Nifty Index was 28. Arithmetically, P/E= 28 or after cross-multiplying P=28*E. i.e the share price of the underlying companies was 28 times the annual profit (earnings) made by the companies (per share). In other words, you had to pay 28 years’ profit upfront to buy their shares (without considering growth in profit). Doesn’t that sound terribly expensive? You bet! Especially if I were to tell you that today, the same companies are available at a P/E of 12.

As you would have guessed by now, the power of the P/E ratio (of the Index) is that it acts as an indicator of how expensive (overpriced) or how cheap (under priced) the market is. A logical extension of this is to set a lower limit for the P/E ratio, below which you can invest in the stock market and an upper limit, above which you can start selling your holdings.
Below is a graph of the P/E ratio of the Nifty Index plotted over the last 10 years. What comes out clearly is that the tops are attained above a P/E ratio of 25 while the bottoms are attained below a P/E ratio of 15. By investing in the stock market when the P/E is below 15 (Bottom Band) and liquidating your investments when the P/E is above 25 (Top Band) you would have not only protected your wealth but also reaped above average return on your investment.

Disclaimer - Hindsight is always 20/20 and future performance may not reflect the past. But hey! This simple technique will at least help you stay away from the trap of “buying high and selling low”



Let me leave you with a closing quote: “Be greedy when others are fearful, be fearful when others are greedy” (Warren Buffet)

Saturday, December 06, 2008

Basics before investing in shares

Before Investing in shares it is very important that you have a plan about your investment.

How much you are going to invest, how long you can wait with your investment, (this is very important,) because in share market time is money.

Have a discipline in Investing.

Never invest huge amount at once in stocks, invest in balanced time intervals, always buy some shares when the market is falling, when it falls again buy again.

Never try to invest all your money in one sector, or one company, have your investment spread over in different sectors and different company shares and balanced.

Whatever may be the reason, never attempt to barrow and invest in shares, whether it is equities or funds whatever it may be, this is not the place where you can invest your barrowed money.

Chart out a plan for your investment, and never overule it at any cost.
Stick to the plan have a discipline and never loose your temper.

Never become a slave to your setiments, if you want to be a successful trader and see your investment grow rather than vanish avoid strictly this three:
1.Sentiments 2.Urgency 3.Panic
Possess this three:
1.Plan 2.Discipline 3.Patience


Everyone is wishing to buy stocks when the market is at its lowest and wants to sell the same when the market is its highest, but remember its only everyone's wish and no one can predict or determine when its going to fall or which is the lowest point at its fall, and viz a verse.

So its always advisable that you pick a few shares and invest on it in graduall intervals.

Investing is not a joke, its a long term activity and involves a lot of factors, and even those factors also cannot predict the market.

Its true that we can multiply our investment fast, but you should not forget if you are not sticking to the above discipline you can also see your investment vanish more faster.

Tuesday, December 02, 2008

NSE revised its lot size

NSE at last revised its lot size for the derivatives market, go to this link and see http://www.nseindia.com/content/circulars/faop11720.htm

kindly offer your comments, how you react and how you expect that this will give a reaction with the brokers.

Saturday, November 29, 2008

Share Market and Investing - Warren Buffet

Dear followers of mine, and this blog,
I think i was lucky to go through this article, an interview with the legend, the King of share trading, Warren Buffet, even though it is already on the web world, i thought there is nothing wrong in having it here one more time since, it is so valuable that every one should go through this interview with the legend Warren Buffet, it is so simple and superb. I felt so bad that could not be there in the crowd to listen him give his experiences and tips, just go through this and read deeply you will be in a position to see and smell the diamond.

I had the good fortune to attend the 2008- Berkshire Hathaway Shareholders meeting at Omaha, Nebraska a few wee It was a wonderful experience listening to and learning from the Master Investor- Warren Buffett himself and all I can say is that he stands alone as the reigning deity of financial world's Mt Olympus!
The degree of humility and composure he exhibited, although he is the richest and most well respected human is stunning!
I tried to take some notes and would like to share with you some of the best questions and answers which came across during the conversation between we mortals and God.
Having read about him, observed him and worshipped him for a few years now, I think it is reasonable to believe that this guy is exactly what he seems: a plain-speaking, tee totaling man of uncrackable integrity who works really, really hard and sticks to his investing and management principles through boom and bust which makes him a freak of nature since he is above normal human tendencies. He is like a comet streaking through the heavens every 75 years or so.
The questions the shareholders threw at him for 7 continuous hours ranged from finances, life, religion, career, politics, sports and several other streams. And he answered everything with a Zen like calm and confidence.
Even if you are least bothered about investments and finances, I insist, Pl read on. ================
Q1.What does it take to become a successful investor? Brilliance or Smartness?

Neither, Success in investing doesn't correlate with I.Q. Once you have ordinary intelligence, what you need is the temperament to control the urges that gets other people into trouble in investing.

Q2.When do you deicide to invest in a firm?

The best thing that happens to us is when a great company gets into temporary trouble. We want to buy them when they're on the operating table. (Mr. Buffett bought Coke when it had its biggest fiasco after launching New Coke; he bought American Express when it went through a loss making phase in the early 60's)

Q3.What do you look for in people when they come to sell their firms to you?

I don't look for the usual credentials such as an MBA, a pedigree (Harvard, Wharton), or cash reserves or market cap of their firm. What I look for is just a passion in their eyes; I think that's the key. A person who is hungry will always do well. I prefer it when people even after selling stay on and work for the firm; they are people who can't wait to get off their bed to get to work. Passion is everything; there is no replacement for innate interest.

Q4.Mr. Buffett, you told us that Berkshire Hathaway has $ 45 Billion in cash. Why aren't you investing?

Up until a few years back I had more ideas than money. Now I have more money than ideas.

Q5.When do you plan to retire?

I love my job; I love it so much that I tap dance to work. Mrs. B, the founder of Nebraska Furniture Mark worked until she was 104, she died within 6 months of her retirement, that's a lesson to all my managers, don't retire! I personally am going to work 6-7 years after I die, probably that's what they mean when they say- "Thinking out of the Box"!!

Q6.Why do stock market crashes happen?

Because of human nature for greed and insecurity. The 1970s were unbelievable. The world wasn't going to end, but businesses were being given away. Human nature has not changed. People will always behave in a manic-depressive way over time. They will offer great values to you."

Q7.What are the things that are taught wrong in Business school and the corporate world?

I like such open ended questions, I think Business schools should refrain from teaching their wards about profit making and profit making alone, it gives a sense of 1 dimensional outlook to the young students that loss is a curse. In reality, in the corporate world, failure and loss making are inevitable. The capital market without loss is like Christianity without hell. I think they should teach the student on how to buy a business, how to value a business? Not just on how to determine the price of a business. Because price is what you pay, value is what you get.

Q8.Do you still hate Technology stocks?

With Coke I can come up with a very rational figure for the cash it will generate in the future. But with the top 10 Internet companies, how much cash will they produce over the next 25 years? If you say you don't know, then you don't know what it is worth and you are speculating, not investing. All I know is that I don't know, and if I don't know, I don't invest."

Q9.How to think about Investing?

The first investment primer was written by Aesop in 600 B.C. He said, 'A bird in the hand is worth two in the bush.' Aesop forgot to say when you get the two in the bush and what interest rates are; investing is simply figuring out your cash outlay (the bird in the hand) and comparing it to how many birds are in the bush and when you get them."

Q10. How do you feel after donating $ 40 Billion to the Bill and Melinda Gates foundation? You are a hero to us!

I feel nothing. I haven't sacrificed anything in life. Ihave had a good life. I donated after I turned 75. I think I admire those people who sacrifice their time, share their food and home, as the people to be emulated not me. Besides, what is money before a man's life?

Q11.What do you think are the pitfalls in donation?

I have never donated a dime to churches or other such organizations; I need to believe in something before I end up doing that. I have been observing the Bill & Melinda Gates foundation for years now and I am confident they will do a fantastic job of making use of the money. I am a big believer in Outsourcing, others believed in me as an Investor and gave their hard earned money to invest. I believe in Bill Gates, he is a better donor than me.

Q12.Why do you work from Omaha and not Wall Street, New York?

Wall Street is the only place where people alight from Rolls Royce to get advised by people who use the Public transportation system.

Q13.You seem to be so well read, tell us how it all started.

My father was a stock broker, so we had all these financial books in our library. He introduced me to those classics and I got into them. I am lucky that my father was not a fan of Playboy! Reading is the best habit you can get. Well, you can learn from teachers too, and have mentors but there are so many constraints attached- they will talk fast, talk slow, they might talk like a pro or they might be terrible communicators. Books are a different animal altogether, I love reading! The beauty about reading and learning is that the more you learn the more you want to learn.

Q14.People who join Berkshire Hathaway seldom leave. How do you get along well with all your executives?

I try to get quality people. I always say - Hire someone in your organization who is better than you are. If you do that, you build a company of giants. If you get people worse than yourself, you build a company of dwarfs. And do not try to do everything yourself. Delegate the jobs and look out of the window. The results will come. That's how you build institutions. It happens only when you empower others, believe in others. Iam an investor, Iam very secured at that, I have no clue how to make Coca-Cola or how to dole out credit cards (MrBuffett owns 8% of Coca-Cola and 13 % of American Express). I understand the wisdom of the aphorism that you cannot please all the people all the time. Of Course, you will always find qualities that you don't like in people around you, but if you observe carefully the love of the work unites you both. There is no point in being obsessive about a bad quality in a person, whom you otherwise respect.

Q15.I am a small time businessman from Dallas, Texas, what do I need to do to hit big time?

Be patient, Achieving your financial goals and dreams will not happen overnight. As much as we would all really love to accomplish our goals in a few years, this is an ongoing process. Defining your financial goals is not a one-time task; you need to keep adding new plans at different stages in your life. We all admire the skills of Olympic ice skaters, pro golfers, and concert pianists. But do we remember that they didn't acquire their skills overnight? They had to practice hours on end for years to achieve their dreams. The key to success is to continue learning throughout your life with a voracious appetite.

Q16. I think it is marvelous that you have had a golden run with investing, how did you do that?

My rule is to be fearful when others are greedy, and be greedy when others are fearful. Besides, I call investing the greatest job in the world because you never have to swing. You stand at the plate; the pitcher throws you General Motors at 47! U.S. Steel at 39! And nobody calls a strike on you. There's no penalty except opportunity lost. All day you wait for the pitch you like; then when the fielders are asleep, you step up and hit it. Stay dispassionate and be patient. You're dealing with a lot of silly people in the marketplace; it's like a great big casino and everyone else is boozing. If you can stick with drinking Coke, you should be OK. First the crowd is boozy on optimism and buying every new issue in sight. The next moment it is boozy on pessimism, buying gold bars and predicting another Great Depression, most people get interested in stocks when everyone else is. The time to get interested is when no one else is. You can't buy what is popular and do well.

Q17.Mr. Buffett you have seen so many crashes and recessions, your take on facing recessions and stock market crashes?

If past history was all there was to the game, the richest people would be librarians. Every scenario is different. But always remember, Tough times do not last. Tough people do.

Q18.What is the 1 biggest advice you would impart to a young investor like me?

Think for a moment that you are given a car and told this is the only car you would get for the rest of your life. Then you would make sure that you car is taken care of well, it is oiled and detailed every now and then. You would make sure that it never gets rusted, and you would garage it. Think of yourself as that car. You just get 1 body, 1 mind and 1 soul. Take care of it well. Invest in yourself that would be my advice.

Q19.You personally know many of the Financial executives who are engineers of the current turmoil in the financial world, surprisingly even after record losses, those executives receive astronomical salaries and bonuses and arrogantly declare that they deserve it, why dint you advice them from making such decisions and what's your view on their justification for their pay?

I like sharing my ideas but don't like imposing my ideas on anybody. It doesn't make sense and is a waste of time. If somebody has decided that they know everything that is there to know, nobody can help them. The best way to learn and succeed is to know that we know nothing. There is an entire universe out there and still some of us think we can know everything. In the world of investing a few people after making some money tend to imagine they are invincible and great. This is the worst thing that could happen to any investor, because it surely means that the investor will end up taking unnecessary risks and end up losing everything ¡V arrogance, ego and overconfidence are very lethal. Personally I don't feel too comfortable with too much extravagance, because I always think like an investor. My thought process doesn't see a lot of value in a fancy car or a designer suit. Thinking like an investor always is very important to bring in a sense of discipline and focus. Before reading balance sheets and investing you need to make sure your outlook and mindset is that of an investor. Never let ego, arrogance and over-confidence control you - not just as an investor but also as a human being. You will never have internal peace if you are unable to look at everybody around you with love, compassion and understanding. Irrespective of who the person is, he or she can teach you something you don't know. I have learnt so much from people all around me and I wouldn't have been able to learn all these wonderful things if I had not spoken to them with a smile. To quote Sir Isaac Newton- If I have seen farther than others, it is because I have stood on the shoulders of giants.

Q20.How do you make the Government eat out of your hands? How do you make them agree to everything you do?

If the strategy of a private enterprise matches the policy of the government, the government will be compelled to support you even if they don't like you.

============

It was a 7 hour conversation and I could just capture some of the best questions and answers. As 37,000+ dazed, amazed and grateful shareholders trooped out of the stadium after the meeting, I found myself recalling one of my favorite quotes-

"A man has to learn that he cannot command things, but that he can command himself; that he cannot coerce the wills of others, but that he can mold and master his own will: and things serve him who serves truth; people seek guidance of him who is master of himself".

Wednesday, November 26, 2008

A way to lock in minimum gains on your investments

This strategy can be used when you are sitting on huge unrealised profits on a stock and want to protect it.

For those who are wondering how to save the hard earned profits in this bearish volatile market here is a simple solutions to lock in minimum gains on your investments. This is a wonderful article by Srividhya Sivakumar, much impressed,and i thought i can give a chance for my readers also to enjoy, just sit in and give a read you will really appreciate the author,which gives a wonderful solution.


After all, it is not an easy task to just sit on the sideline and watch volatility wie away a good chunk of your hard earned profits. But worry not, for there is a way to seal minimum profits on your investments use the protective collar. This simple option strategy can lock in profits on your stock regardless of the constant meandering in the stock markets and that too at little cost. Read on......

Using Protective Collar:
Simple and easy to set, a protective collar strategy should be used when you are sitting on huge unrealised profits on a stock and want to protect it. It can be establised by purchasing a protective put(buying puts at lower strike price) and simultaneously writing a a convered call (selling calls at higher stike price) for the same month on the stock that you hold.

For instance, say you hold 175 shares of ICICI Bank bought at Rs.500. This means you would currently be sitting on an unrealised profit of Rs.200 on a pershare basis, if we take into consideration the stocks current market price of Rs.700. You can lock-in on minimum gains using a protective collar.

A protective collar on your ICICI shares can be set by selling higher price call options on the stock. Depending on what price you would be compfortable parting with your stock holding, you can decide on the strike price of the call option.

Let us say you sell one lot (175 shares) of ICICI september 740 call option trading at Rs.16.5

This means that if the stock price moves above Rs.740 during the period of the contract, you should be willing to sell the shares at the strike price, the second part of the strategy inovlves buying a protective ut on ICICI Bank. You can do this by buying puts at a strike price, which would seal the minimum profits you want to lock in for your share holding.

In this case, you can do so by buying ICICI sep 660 Put option trading at Rs.16.7. This will help you lock ina minimum gain of Rs.160 per share (Rs.660 - Rs 500)

But at what cost? In this example, while selling the 740 call will entail an initial credit of Rs.16.5 a share, the buying of puts will mean a debit of Rs.16.7 a share. So on a net basis, you have set a protective collar for juist 10 paise a share.

Note that different spreads can be chosen depending on your stock price outlook and risk tolerance. Further, in some cases the strategy can also be set at net intital credit.

Possible outcomes:
If ICICI stock price falls much below the strike price of the put option (Rs.660) gains from the long put position will offset the notional loss in the stock's value.However, the sold calls will expire worthless. This means you will get to pocket the premium that you received while writing the call (Rs.16.5). Alternatively if the stock price rises beyond the strike price of the call options (Rs.740) it will result in a loss.
However, this loss to an extent will be offset by the rise in value of your gains on ICICI shareholding. While the put opitoon will expire worthless, you willstnad the risk of exerciese at Rs.740, in which case you may have to part with your stocks. And if the stock price trades in a range between the put strike price of Rs.660 and the call strike price of Rs.740, both the options would expire worthless.
In this case, you lose nothing but the amount spent in setting the spread. But had you set the spread for strike prices that would have resulted in a net initial credit, you would get to pocket that for good.

Current News

PM and FM against the reduction of fuel price.

At present the oil marketing companies are making a profit of Rs.8/- pl petrol, and 0.65 paise for litre diesel. The petroleum ministry is planning to go for a price reduction, which is also questioned by the election commission to furnish the basic reasons behind it, it seems the ministry is getting a good political support for its cause to reduce the price, but to the surprise even though the congress party and the chief is supporting the reduction, the Prime Minister and the Finance Minister are not supporting the idea, where the PM feels the reduction should be considered only when all fuels including diesel and LPG steps up profitable, and FM is supporting this view of the PM.
It seems even after the question from the EC the Petroleum ministry may go through with their idea of cut in fuel price with the congress and the chief supporting the decision.

Saturday, October 18, 2008

How to choose an online broker

How much it is hard to choose a right stock at a right time, it is that much hard to pick a good online broker, its ironically becoming more tough when you have so many brokers to select from. You have to be more careful when choosing an online broker than when you are choosing an offline broker, since online broker not only should possess the knowledge of stock market but should also be fluent with the technology and other Internet related issues, which is more important, and all this while servicing a client well!
Online broking is not about choosing the lowest rates alone. That is just one part of the overall cost you pay for a transaction (you cannot close your hands for taxes, duties, charges besides brokerage). So it is a must that people should consider these very important factors before choosing an online broker, what they don't consider most of the time.

Scale and technology:
Check for capability of the broker on handling sudden increase in the volumes. Remember, always what took you so much of time toiling to build up can be wiped out on that one day when markets crash all of a sudden and with the website of your online broker.
So check first whether your choice is possessing the necessary skills that is required to handle such a situation and manage technology.

Advice and its worth:
Check for the advice offered from your broker's research team. Do you feel does the broker's research team give you enough advice with quality, for you to depend on it and act accordingly. Does it have a proven track record for you to depend. Because after opting an online broker you should not be depending on your friends and friendly neighbour's and news channels to pick up stocks.

Service:
Check for the broker's customer service orientation, it is a fact that normally 50% of online brokers doesn't even care about customer service orientation. You should be in a position to connect to their managers or higher ups in case of any emergencies - are your calls responded to within a strict timeline? Do they revert on major issues?

Transparency:
Does the broker have enough transparency in the way you are charged for your transactions? In case of any problems or any doubts can you decode transactions and demand a reply? Has it been encouraged?

Quality of interface:
Does the website allow you to put through trades quickly? And in an easy fashion without having to be a master in computer science.

Product offerings:
Does the broker offer a choice of products for you or are you stuck with plain ordinary plum products?

Offline or Online:
It is wise to choose a broker who has been around for a while and would be able to offer sound advice in the event that you did need to talk to a real person. Nothing works like experience after all whether it's online or offline broking.

Saturday, August 09, 2008

Depend on your own, do your homework


When the markets are bullish most financial gurus think they will never go wrong, only to see the bear shatter their delusion.
When the market is bullish, and the relentless bull run inspires so much confidence in everybody that they start to believe they would never go wrong and know, how to choose the correct share and the perfect pattern to trade,Normally everybody thinks of himself a Warren Buffett, and offer suggestion and predictions about the market, and see their suggestions go right without understanding the basic bull run. At this point of time you can see a lot of their Friends, neighbors, and colleagues, stand still astonished on the investment ideas of these men and follow him in every part of the investment, without caring a single percent of educating themselves about the basic things of the market and leave their hard earned money in high danger. Well, when the wind changes all of a sudden and when the bear takes over the market, its needless to say they find themselves completely on the wrong foot.
Here the point is you may come across a friend or neighbour who would fit in this category, on the time of bullish market offering you free advise, but taking all these type of suggestions and making investment will save you only the percentage fee, not the loss of your investment. Because when the bear grips the market they will run away, and the investors would be left in the dark so clueless about the market that they can't even take a decision.
Since, it is a must for the investors to educate themselves about the market, rather than simply follow their friends or neighbour's advice blindly, they should make an effort to understand where they are putting in their hard earned money and what could be implications if things go wrong. It is always better to the advice of a professional, and even then follow his advice only if you are convinced. Check their portfolio to find out how they have fared?
Relying on friends, and neighbours for investment advice will look easy, but it can have disastrous consequences .
Learn the basics rather than depending on the baseless.

Wednesday, April 30, 2008

The way to trade


Trading even now when the market is not doing so well seems to be the favourite word of lot people our there. whether you be an expert or an absolute beginner if you want to succeed in trading and in online trading you need at least some of the basic knowledge about trading and online trading. Do you involve in on line trading on your own or you simply follow somebodies advice or totally depend on the clues by your trading broker. If you want to involve on your own you have to learn some basics of trading and online trading so that instead of a big un understood magic it will become a simple thing on your life. Always it is better for us to involve in the business what ever it may be on our own, better we know things what we do rather than just nudge your head and follow some body's else advice. what you put to risk here is your very own hard earned money in stake.
Here i would like to recommend you to one of the book, "The Way To Trade by John Piper" which i used, as my platform to improve in online trading. No matter if you are, Trading indices, stocks, e-minis, commodities, options or forex, whether A beginner or fully experienced trader, or involved in Day-trading, swing trading, position trading, trend trading, and Whether the market is up or down.. I can assure you the book will revolutionize your way of trading.As you study every word of this book you will certainly regret for not having it earlier.You can begin to apply it today and I'll guarantee you've never heard of anything like it before. It's a fresh but explosive idea and it's what will finally make the difference to your trading.

Apart from my full time job all the spare minutes of my life i used to spend for online trading, everybody and all my friends used to laugh about my obsession towards online trading. I started buying each and everything that pronounce the word trading, share market and online trading. I even cut short my essentials and spent every single penny in pursuing the knowledge but i can really say that the percentage of success in the beginning was not so greeny, it almost dried my purse, and almost when i thought of my obsession slowly turning out to be my hell i accidentally received one clue from one friend of mine about the book he was using to become a successful trader and as a last meas sure i decided to give a try, to my surprise i could learn what the trick behind in each and every successful trader, yes it almost revolutionized my trading, gave me back control and demolished the stress.

The Way To Trade has the unique ability to translate into "real life" and explain to you what will make you a truly successful trader. With just a glimpse of the awesome power of The Trading Pyramid you'll understand exactly why it will make such a difference to your online trading. And believe me, once you "get it" you really do get it.

And if you really want to succeed and want to be called a successful trader i believe you must go through the very best book of online trading, you can have it from here, Make no mistake - after reading these e-books you've got everything you need to cash-in and begin to make a killing in the markets
Click Here!

Tuesday, April 01, 2008

Play the Online game without spending a single rupee from your pocket

Today when I was just going through the various materials and other my fellow blogger reviews about the market today and know their views and ideas how it going to be tomorrow, i came across this wonderful point one of fellow blogger( thank your siva) had made. By going to the site i was quite surprised to see how much fantastic and help full this resource could be for those who are just staying away from market due to fear and lack of knowledge.

This is the very same technique i used to make myself accustomed with market and shares and the trends, and still i do it at times of crisis when the market is volatile and some thing extraordinary is catching up, but the only difference is i do it on my own with my own style with papers.

This is a good platform for the people who want to come into the market, they can play with this simulator game which gives you almost the same as a market platform so realistic and they can predict and play buy, sell, take delivery, and short sell all without spending a single rupee from their pocket.

Interested just check this site
you will really love it whether you are a beginner or a professional.
http://moneybhai.moneycontrol.com/

Thursday, March 27, 2008

Eye Of the Tiger

If you wonder what this image got to do here, then you need a lot to improve yourself.This is one of the basic feature for a successful trader. Before you invest your money into market, you should develop the skill to watch the market from outside. A watch such as a Tiger will give you an idea of when the shares are raising and when they are falling on a general note.Its better we learn some of the skill like this instead of entirely depending on somebody's advice or the way the market is going, because it is after all your hard earned money. They say as a whole the market is being ruled basically by sentiments of the investors.In one way if you accept this is right then what makes the sentiment of the public and how it affects the market as a whole. There is a lot of factors that causes the sentiments of the public like the depression in the economy, inflation, the instability of the government,any pattern change in the taxing system of the country, political situation,and the trend of the FII and so on, but even still you cannot say that these are the fixed important factors that rules the market since the market is not predictable by anybody but these are some of the reasons that had created some sort of instability in the market. To learn that you should develop the skill to watch the market.

Saturday, March 01, 2008

Budget 2008

Eventhough the Budget 2008 has evoked a lot of mixed reactions, by and large it has come as an open invitation for the growing economy.It almost opened the gates wide open for investment in all most all catogories except the IT sectors, the reason may be the ressesion in US not only affected the indian share market but also reflected in the Union Budget. Some predict it as a budget, in the wake of the forthcoming elections in mind, one cannot deny the slashing of the excise duty in the automotive sector, pharma sector, processed food,and the customs duty cut in the field of crude and unrefined sulphur and the notable fund allotment towards drinking water needs, irrigation projects ujder Accilerated irrigation Benefit programme,and the infrastructure will certainly oil the momentum and improve the phase of these sectors which in return will reflect in the growth of the economy.
As far as the investor is concerned now the options for the investors are wide open and he can very well concentrate on the very basic rule of investing the "Diversification of Investments".The market may take sometime to settle itself in par with the current budget but for a good investor who aims his investment on the long run i feel this budget is going to be a very big boon .