tag:blogger.com,1999:blog-77896997556191612552024-02-19T02:58:29.534-08:00stock trading online for beginnersstock trading online for beginners, trading online, stock trade online, online trading, stock option online trading, forex online trading, online trading software, online trading pros and cons, online trading concepts, A beginners guide to online trading, online share trading guide.Unknownnoreply@blogger.comBlogger28125tag:blogger.com,1999:blog-7789699755619161255.post-4687289613800981922011-06-03T20:37:00.000-07:002011-06-03T20:58:53.236-07:00Factors to consider before choosing an investment advisorThis is an area where blindly believing and lending your ears for all those that come across as good information will probably if not always but will lead you to a dead end. So, taking an expert advice or a professional advice is nothing wrong, but before doing so its better we consider some of the major areas for choosing such an expert whom we can depend.<br /><br /><br /><br />Its advisable that you choose a company than an individual, because the openings that we may get from an individual is less when compared to the wide opening of the resources a company can offer.<br /><br />Once you decide for an company look for the company's history, how old is that, well established or what, its reputation, and the way how they deal with the investors, their open transparent dealings.<br /><br />Must possess the best infrastructure for research since investment needs constant and continuous vigil otherwise the advise you may get may not be timely.<br /><br />Now a days the good old days of paper works are gone to the dust bins and the trend is totally on with the help of electronic media its a must for the advisor that he should also be well equipped with media and should have online trading platform. So that you can manage your investment sitting in your desk.<br /><br />Its better to stay with a fee based advisor than a commission based since the fee based advisor will certainly look your investment as his own since the fee is goiing to change accordingly.Unknownnoreply@blogger.comtag:blogger.com,1999:blog-7789699755619161255.post-23708733787561539032009-03-14T02:33:00.000-07:002009-03-14T03:09:50.701-07:00Safety tips for InvestorsRecently my friend sent me this article about safety in investing,since,there are some pretty interesting points mentioned in it,I wanted to share with you.<br /><br />Clear capital Ltd., a subsidiary of the UK's Noble Group Ltd in a report on the "tricks that promoters play at the expense of shareholders", has come out with tips for shareholders on what to do to check out a promoter.<br /><br />The report prepared after the Satyam-Maytas debacle, makes some starling revelations about companies in the BSE500. It highlights the most common tricks that Indian promoters, including some of the biggest names, employ to enrich themselves at the expense of the shareholders. They named these three tricks as "pump and dump", "blab and grab", and "expense manipulation". They translate into pushing up stock prices and then selling their holdings announcing new ventures to garner more funds, and sucking our Cash by inflating expenses under various heads.<br /><br /><span style="font-weight:bold;">So, what should investors do to save themselves?</span><br />The report says very clearly while there is no cut and dried method to establish and promoters probity, there are at least there relatively straightforward ways to do this: <span style="font-weight:bold;">Primary data contacts, financial analysis, and charting.</span><br /><span style="font-weight:bold;">Primary data contacts</span> in the promoter's industry, like customers and competitors, are a good source of data regarding the promoter's probity. The more basic check on the promoter's intentions are insider transactions. In most of the case studies carried out by CCL promoter sales usually foreshadow problems for the company.<br /><br /><span style="font-weight:bold;">The second way, financial analysis,</span> the report says there is merit in tracking seemingly insignificant cost items like other operating expenses, miscellaneous expenditure and distribution expenditure. The important part of this is these items are highly discretionary and should fall in tough economic conditions, on the contrary if they rise it means clearly that the promoter has something to answer for.<br /><br /><span style="font-weight:bold;">The report makes the following points:</span><br /><span style="font-weight:bold;">At least 30 companies in the BSE500 are using aggressive revenue recognition techniques. This is evident from the deterioration in their Cash flows from operating activities in spite of a rise in Ebitda(earnings before interest, taxes, depreciation and amortisation), suggesting early booking of revenues.<br /><br />Around 60 companies in the BSE 500 seem to have booked "sales" which might have arisen from investment income or other income.<br /><br />At least 10companies in the BSE 500 seemed to have shifted expenses from the current period by significantly reducing depreciation rates.<br /><br />At least 15 companies have disbursed the bulk of their loans and advances to companies in which directors have an interest.<br /><br />At least 25 firms had profits shown in the full year results significantly lower than the sum of the quarterly results.</span><br /><br /><span style="font-weight:bold;">The third way, charting,</span> is a little complicated. The investor needs to make a chart of share prices versus volumes overlaid with corporate announcements and insider sales.<br /><br />It is usually a good "initial screen" to highlight whether the promoter has an affinity for the first tow tricks mentioned above.Unknownnoreply@blogger.comtag:blogger.com,1999:blog-7789699755619161255.post-10868314306110409332008-12-11T20:05:00.000-08:002008-12-11T20:17:02.771-08:00Investor RightsYou 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 <span style="font-weight:bold;">your rights as an investor</span>. <span style="font-weight:bold;">Yes investors enjoy some rights which you are supposed to know</span>, 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.<br /><br />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:<br /><br />Check<a href="http://investorhelpline.in/ih/General/ROI.htm"> <span style="font-weight:bold;">here</span> </a>for your Investor rights.Unknownnoreply@blogger.comtag:blogger.com,1999:blog-7789699755619161255.post-88926906373476750752008-12-08T19:10:00.000-08:002008-12-11T20:08:45.859-08:00A Simple way to Invest<a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj_b6aTO7iPJWrF22o8xSswqB4VR9q4a11kSLcp-Zsc-gfdrCmaOEH0vsDFnbnjuKhKmSwG8cnYQqlAjKXfvMxuYriXbEac9R3aB_ESUHolezKaTkvbcRpr55EHy4vzzaHq2-Rk1NhPB1o/s1600-h/PE+Ratio.JPG"><img style="display:block; margin:0px auto 10px; text-align:center;cursor:pointer; cursor:hand;width: 400px; height: 228px;" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj_b6aTO7iPJWrF22o8xSswqB4VR9q4a11kSLcp-Zsc-gfdrCmaOEH0vsDFnbnjuKhKmSwG8cnYQqlAjKXfvMxuYriXbEac9R3aB_ESUHolezKaTkvbcRpr55EHy4vzzaHq2-Rk1NhPB1o/s400/PE+Ratio.JPG" border="0" alt=""id="BLOGGER_PHOTO_ID_5277634045828818546" /></a><br />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.<br /><br /><span style="font-weight:bold;">The secret to profitable investment is to ‘Pay Less’</span><br /><br />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.<br /><br /><span style="font-weight:bold;">P/E of a company = Share price of the company/ Earnings per share</span><br /><br />where, the <span style="font-weight:bold;">Earnings per share = Net Profit made by the company during the previous year/ Total number of shares in the company<br /></span><br />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.<br /><br />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.<br /><br />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.<br />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.<br /><br />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”<br /><br /><br /><br /><span style="font-weight:bold;">Let me leave you with a closing quote: “Be greedy when others are fearful, be fearful when others are greedy” (Warren Buffet)</span>Unknownnoreply@blogger.comtag:blogger.com,1999:blog-7789699755619161255.post-35476373038463895082008-12-06T09:24:00.000-08:002008-12-06T09:42:34.150-08:00Basics before investing in sharesBefore Investing in shares it is very important that you have a <span style="font-weight:bold;">plan about your investment.</span><br /><br /><span style="font-weight:bold;">How much you are going to invest, how long you can wait with your investment</span>, (this is very important,) because in share market <span style="font-weight:bold;">time is money.</span><br /><br /><span style="font-weight:bold;">Have a discipline in Investing.</span><br /><br />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.<br /><br />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.<br /> <br />Whatever may be the reason, <span style="font-weight:bold;">never attempt to barrow and invest</span> in shares, whether it is equities or funds whatever it may be, this is not the place where you can invest your barrowed money.<br /><br />Chart out a plan for your investment, and never overule it at any cost.<br />Stick to the plan have a discipline and never loose your temper.<br /><br /><span style="font-weight:bold;">Never become a slave to your setiments</span>, if you want to be a successful trader and see your investment grow rather than vanish <span style="font-weight:bold;">avoid strictly this three:<br />1.Sentiments 2.Urgency 3.Panic<br />Possess this three:<br />1.Plan 2.Discipline 3.Patience</span><br /><br />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.<br /><br />So its always advisable that you pick a few shares and invest on it in graduall intervals.<br /><br />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.<br /><br />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.Unknownnoreply@blogger.comtag:blogger.com,1999:blog-7789699755619161255.post-67451829600064585842008-12-02T10:06:00.000-08:002008-12-02T10:13:07.657-08:00NSE revised its lot sizeNSE at last revised its lot size for the derivatives market, go to this link and see <a href="http://www.nseindia.com/content/circulars/faop11720.htm">http://www.nseindia.com/content/circulars/faop11720.htm</a><br /><br />kindly offer your comments, how you react and how you expect that this will give a reaction with the brokers.Unknownnoreply@blogger.comtag:blogger.com,1999:blog-7789699755619161255.post-9222511882550645082008-11-29T09:46:00.000-08:002008-12-01T08:56:45.669-08:00Share Market and Investing - Warren BuffetDear followers of mine, and this blog, <br />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.<br /><br />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!<br />The degree of humility and composure he exhibited, although he is the richest and most well respected human is stunning!<br />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.<br />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.<br />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.<br />Even if you are least bothered about investments and finances, I insist, Pl read on. ================<br /><span style="font-weight:bold;">Q1.What does it take to become a successful investor? Brilliance or Smartness?</span><br /><br />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.<br /><br /><span style="font-weight:bold;">Q2.When do you deicide to invest in a firm?</span><br /><br />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)<br /><br /><span style="font-weight:bold;">Q3.What do you look for in people when they come to sell their firms to you?</span><br /><br />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.<br /><br /><span style="font-weight:bold;">Q4.Mr. Buffett, you told us that Berkshire Hathaway has $ 45 Billion in cash. Why aren't you investing?<br /></span><br />Up until a few years back I had more ideas than money. Now I have more money than ideas.<br /><br /><span style="font-weight:bold;">Q5.When do you plan to retire?</span><br /><br />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"!!<br /><br /><span style="font-weight:bold;">Q6.Why do stock market crashes happen?</span><br /><br />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."<br /><br /><span style="font-weight:bold;">Q7.What are the things that are taught wrong in Business school and the corporate world?</span><br /><br />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.<br /><br /><span style="font-weight:bold;">Q8.Do you still hate Technology stocks?</span><br /><br />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."<br /><br /><span style="font-weight:bold;">Q9.How to think about Investing?</span><br /><br />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."<br /><br /><span style="font-weight:bold;">Q10. How do you feel after donating $ 40 Billion to the Bill and Melinda Gates foundation? You are a hero to us!</span><br /><br />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?<br /><br /><span style="font-weight:bold;">Q11.What do you think are the pitfalls in donation?</span><br /><br />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.<br /><br /><span style="font-weight:bold;">Q12.Why do you work from Omaha and not Wall Street, New York?</span><br /><br />Wall Street is the only place where people alight from Rolls Royce to get advised by people who use the Public transportation system.<br /><br /><span style="font-weight:bold;">Q13.You seem to be so well read, tell us how it all started.</span><br /><br />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.<br /><br /><span style="font-weight:bold;">Q14.People who join Berkshire Hathaway seldom leave. How do you get along well with all your executives?<br /></span><br />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.<br /><br /><span style="font-weight:bold;">Q15.I am a small time businessman from Dallas, Texas, what do I need to do to hit big time?<br /></span><br /><span style="font-weight:bold;">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.</span><br /><br /><span style="font-weight:bold;">Q16. I think it is marvelous that you have had a golden run with investing, how did you do that?<br /></span><br /><span style="font-weight:bold;">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.</span> 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. <span style="font-weight:bold;">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.</span><br /><br /><span style="font-weight:bold;">Q17.Mr. Buffett you have seen so many crashes and recessions, your take on facing recessions and stock market crashes?<br /></span><br />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.<br /><br /><span style="font-weight:bold;">Q18.What is the 1 biggest advice you would impart to a young investor like me?</span><br /><br />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.<br /><br /><span style="font-weight:bold;">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?<br /></span><br />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.<br /><br /><span style="font-weight:bold;">Q20.How do you make the Government eat out of your hands? How do you make them agree to everything you do?</span><br /><br />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.<br /><br />============<br /><br />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-<br /><br /><span style="font-weight:bold;">"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". <br /></span>Unknownnoreply@blogger.comtag:blogger.com,1999:blog-7789699755619161255.post-89311860557960166162008-11-26T23:41:00.001-08:002008-11-27T00:56:31.826-08:00A way to lock in minimum gains on your investments<span style="font-weight:bold;">This strategy can be used when you are sitting on huge unrealised profits on a stock and want to protect it.<br /></span><br />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.<br /><br /><br />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......<br /><br />Using Protective Collar:<br />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.<br /><br />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.<br /><br />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. <br /><br />Let us say you sell one lot (175 shares) of ICICI september 740 call option trading at Rs.16.5<br /><br />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.<br /><br />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) <br /><br />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.<br /><br />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.<br /><br />Possible outcomes:<br />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.<br />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.<br />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.Unknownnoreply@blogger.comtag:blogger.com,1999:blog-7789699755619161255.post-41236177990307723312008-11-26T18:21:00.000-08:002008-11-26T18:42:12.814-08:00Current News<span style="font-weight: bold;">PM and FM against the reduction of fuel price.</span><br /><br />At present the oil marketing companies are making a profit of Rs.8/- pl petrol, and 0.65 <span class="blsp-spelling-error" id="SPELLING_ERROR_0">paise</span> 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.<br />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.Unknownnoreply@blogger.comtag:blogger.com,1999:blog-7789699755619161255.post-7273075209258604262008-10-18T09:33:00.000-07:002008-10-18T10:04:02.939-07:00How to choose an online brokerHow 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 <span class="blsp-spelling-corrected" id="SPELLING_ERROR_0">so many</span> 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 <span class="blsp-spelling-corrected" id="SPELLING_ERROR_1">Internet</span> related issues, which is more important, and all this while servicing a client well!<br /> 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.<br /><br /><span style="font-weight: bold;">Scale and technology:</span><br />Check for <span class="blsp-spelling-corrected" id="SPELLING_ERROR_2">capability</span> 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.<br />So check first whether your choice is possessing the necessary skills that is required to handle such a situation and manage technology.<br /><br /><span style="font-weight: bold;">Advice and its worth:</span><br />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.<br /><br /><span style="font-weight: bold;">Service:</span><br />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 <span class="blsp-spelling-corrected" id="SPELLING_ERROR_3">higher ups</span> in case of any emergencies - are your calls responded to within a strict timeline? Do they revert on major issues?<br /><br /><span style="font-weight: bold;">Transparency:</span><br />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 <span class="blsp-spelling-corrected" id="SPELLING_ERROR_4">transactions</span> and demand a reply? Has it been encouraged?<br /><br /><span style="font-weight: bold;">Quality of interface:</span><br />Does the website allow you to put through trades quickly? And in an easy fashion without having to be a master in computer science.<br /><br /><span style="font-weight: bold;">Product offerings:</span><br />Does the broker offer a choice of products for you or are you stuck with plain ordinary plum products?<br /><br /><span style="font-weight: bold;">Offline or Online:</span><br />It is wise to choose a broker who has been around for a while and would be able <span class="blsp-spelling-error" id="SPELLING_ERROR_5">to</span> offer sound advice in the event that you did need to talk <span class="blsp-spelling-error" id="SPELLING_ERROR_6">to a</span> real person. Nothing works like experience after all whether it's online or offline broking.Unknownnoreply@blogger.comtag:blogger.com,1999:blog-7789699755619161255.post-46318326651337295882008-08-09T03:05:00.000-07:002009-01-19T08:40:49.255-08:00Depend on your own, do your homework<a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjVoJlrro0kkHuNDqEC8hfxOHaydAYkDaSV7fTUq8_L6dEISoCGDw8HY8G7DMU1FeKNfjewnoXW2dafAIUjSZdNryO9VEFSEDajeI8jT_GdmjpKy1gnncDU2mpGzr9kw_pTpMLuaHzoSBA/s1600-h/home+work+boy.jpg"><img style="display:block; margin:0px auto 10px; text-align:center;cursor:pointer; cursor:hand;width: 400px; height: 273px;" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjVoJlrro0kkHuNDqEC8hfxOHaydAYkDaSV7fTUq8_L6dEISoCGDw8HY8G7DMU1FeKNfjewnoXW2dafAIUjSZdNryO9VEFSEDajeI8jT_GdmjpKy1gnncDU2mpGzr9kw_pTpMLuaHzoSBA/s400/home+work+boy.jpg" border="0" alt=""id="BLOGGER_PHOTO_ID_5293045531025396738" /></a><br /><span style="font-weight: bold;">When the markets are bullish most financial gurus think they will never go wrong, only to see the bear shatter their delusion.<br /> </span>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 <span class="blsp-spelling-error" id="SPELLING_ERROR_0">Buffett</span>, 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 <span class="blsp-spelling-corrected" id="SPELLING_ERROR_1">Friends</span>, neighbors, and <span class="blsp-spelling-corrected" id="SPELLING_ERROR_2">colleagues</span>, stand still astonished on the investment ideas of these men and follow him in <span class="blsp-spelling-corrected" id="SPELLING_ERROR_3">every</span> 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.<br />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 <span class="blsp-spelling-corrected" id="SPELLING_ERROR_4">investment</span> 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.<br />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?<br />Relying on friends, and neighbours for investment advice will look easy, but it can have disastrous consequences .<br /><span style="font-weight: bold;">Learn the basics rather than depending on the baseless.</span><br /><span style="font-weight: bold;"><br /></span>Unknownnoreply@blogger.comtag:blogger.com,1999:blog-7789699755619161255.post-5393722025720889192008-04-30T09:58:00.000-07:002008-04-30T10:07:03.126-07:00The way to trade<a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh3wkTTI9vj212Pk3o4n70O09Mvt0Ar66HRvdgCEoiosdrcZDdEKvJK3SZS77WJcinzBmvXh1zBg5D9XHjHwHZbr0cmDKTRQFhnGoZOSkD69a4B1EaEhbvnsc44dv1EvZZfKLhs54q-2nE/s1600-h/twttlg.jpg"><img style="margin: 0pt 0pt 10px 10px; float: right; cursor: pointer;" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh3wkTTI9vj212Pk3o4n70O09Mvt0Ar66HRvdgCEoiosdrcZDdEKvJK3SZS77WJcinzBmvXh1zBg5D9XHjHwHZbr0cmDKTRQFhnGoZOSkD69a4B1EaEhbvnsc44dv1EvZZfKLhs54q-2nE/s400/twttlg.jpg" alt="" id="BLOGGER_PHOTO_ID_5195085862274806786" border="0" /></a><br />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 <span class="blsp-spelling-corrected" id="SPELLING_ERROR_0">beginner</span> if you want to succeed in trading and in online trading you need <span class="blsp-spelling-corrected" id="SPELLING_ERROR_1">at least</span> some of the basic knowledge about trading and online trading. Do you involve in on line trading on your own or you simply follow <span class="blsp-spelling-corrected" id="SPELLING_ERROR_2">somebodies</span> 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 <span class="blsp-spelling-error" id="SPELLING_ERROR_3">un</span> 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 <span class="blsp-spelling-corrected" id="SPELLING_ERROR_4">some body's</span> else advice. what you put to risk here is your very own hard earned money in stake.<br />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 <span class="blsp-spelling-error" id="SPELLING_ERROR_5">forex</span>, 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 <span class="blsp-spelling-corrected" id="SPELLING_ERROR_6">earlier</span>.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.<br /><br />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 <span class="blsp-spelling-corrected" id="SPELLING_ERROR_7">obsession</span> 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 <span class="blsp-spelling-corrected" id="SPELLING_ERROR_8">every</span> single penny in pursuing the knowledge but i can really say that the percentage of success in the beginning was not so <span class="blsp-spelling-error" id="SPELLING_ERROR_9">greeny</span>, it almost dried my purse, and almost when i thought of my <span class="blsp-spelling-corrected" id="SPELLING_ERROR_10">obsession</span> slowly turning out to be my hell i <span class="blsp-spelling-corrected" id="SPELLING_ERROR_11">accidentally</span> received one clue from one friend of mine about the book he was using to become a successful trader and as a last <span class="blsp-spelling-corrected" id="SPELLING_ERROR_12">meas sure</span> 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.<br /><br />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 <span class="blsp-spelling-corrected" id="SPELLING_ERROR_13">online trading</span>. And believe me, once you "get it" you really do get it.<br /><br />And if you really want to succeed and want to be called a successful trader i <span class="blsp-spelling-corrected" id="SPELLING_ERROR_14">believe</span> 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<br /><a href="http://appunu71.waytrade.hop.clickbank.net/" target="_top">Click Here!</a>Unknownnoreply@blogger.comtag:blogger.com,1999:blog-7789699755619161255.post-4011760715878052232008-04-01T09:00:00.000-07:002008-04-01T09:19:11.209-07:00Play the Online game without spending a single rupee from your pocket<div style="text-align: left;"> Today when I was just going through the various materials and other my fellow <span class="blsp-spelling-corrected" id="SPELLING_ERROR_0">blogger</span> reviews about the market today and know their views and ideas how it going to be <span class="blsp-spelling-corrected" id="SPELLING_ERROR_1">tomorrow</span>, i came across this wonderful point one of fellow blogger( <a href="http://explorenetwithshiva.rediffiland.com/blogs/2007/11/24/The-online-trading-simulation-game-SHARE.html">thank your siva</a>) had made. By going to the site i was quite <span class="blsp-spelling-corrected" id="SPELLING_ERROR_2">surprised</span> to see how much fantastic and help <span class="blsp-spelling-corrected" id="SPELLING_ERROR_3">full</span> this resource could be for those who are just staying away from market due to fear and lack of knowledge.<br /><br /> This is the very same <span class="blsp-spelling-corrected" id="SPELLING_ERROR_4">technique</span> i used to make myself <span class="blsp-spelling-corrected" id="SPELLING_ERROR_5">accustomed</span> with market and shares and the trends, and still i do it at times of crisis when the market is volatile and some thing <span class="blsp-spelling-corrected" id="SPELLING_ERROR_6">extraordinary</span> is catching up, but the only difference is i do it on my own with my own style with papers.<br /><br /> 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.<br /><br />Interested just check this site<br />you will really love it whether you are a <span class="blsp-spelling-corrected" id="SPELLING_ERROR_7">beginner</span> or a professional.<br /></div><a href="http://moneybhai.moneycontrol.com/">http://moneybhai.moneycontrol.com/</a>Unknownnoreply@blogger.comtag:blogger.com,1999:blog-7789699755619161255.post-60142790866354321422008-03-27T06:25:00.000-07:002008-03-27T06:58:11.414-07:00Eye Of the Tiger<div style="text-align: center;"><a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj_bl4ZkPGq4nyAcJZCT64fMZdmvn1SNxWJZh-g-XmN1P0L4oXWFawQXEXnUZJfZimrqSlTmv0ByWD1I92xjZVN3Ir8bjnyNTE8H8l4HscCKm9pNYt0UEQ82Q-9lt9deC5WL540tThgSoY/s1600-h/eye+of+the+tiger.jpg"><img style="margin: 0pt 0pt 10px 10px; float: right; cursor: pointer; width: 693px; height: 123px;" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj_bl4ZkPGq4nyAcJZCT64fMZdmvn1SNxWJZh-g-XmN1P0L4oXWFawQXEXnUZJfZimrqSlTmv0ByWD1I92xjZVN3Ir8bjnyNTE8H8l4HscCKm9pNYt0UEQ82Q-9lt9deC5WL540tThgSoY/s400/eye+of+the+tiger.jpg" alt="" id="BLOGGER_PHOTO_ID_5182412839156295762" border="0" /></a>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.<br /></div>Unknownnoreply@blogger.comtag:blogger.com,1999:blog-7789699755619161255.post-30613541569200720422008-03-01T01:05:00.000-08:002008-03-01T01:11:21.808-08:00Budget 2008Eventhough 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. <br /> 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 .Unknownnoreply@blogger.comtag:blogger.com,1999:blog-7789699755619161255.post-40928748043068204982007-12-21T22:30:00.000-08:002007-12-21T22:50:30.593-08:00volatile marketNormally if a market is volatile it will keep on fluctuating up and down, and if your choices are suffering then dont get panic,and never try to treat it is junk and throw it out, dont do that unless it is visible about the share you are holding is losing in fundamental grounds, if nothing is wrong in the companies fundamental basics there is nothing wrong in holding the stocks for some more time the jump down ward may be because of the volatilism of the market, no share in the whole history had lost its foot all of a sudden.<br />Dont put your entire money immediately in buying the shares you believe will do well, what ever be the reason behind it for your investment dont put all your entire money in one investment do it periodically , this will save your investment and also reduce the risk. Go for the stocks of those companies that are fundamentally strong and has a good track record and do the investment in those sort of shares periodically.<br />No Single share can be said that it is strong and good to buy just because the price of the share is increasing in the market,when you locate such share dont run immediately behind those shares and invest indeed do some research and find the background for the rise and the companies compatability and then go for investing.<br /><br />Never keep on changing your strategy because switching frequently you will lose the ground of your reasoning and chances of going for junk shares are more so stick to your strategy, and the main thing that will help you to increase or help to earn from share market is "Diversify your Investment",keep diversifying your investment so that the risk of losing your investment is less always.Unknownnoreply@blogger.comtag:blogger.com,1999:blog-7789699755619161255.post-596422631454983882007-12-14T23:14:00.000-08:002007-12-14T23:37:00.187-08:00Rules Rules and RulesIt's been almost a month now, but I am back, they say that Indian stock market is rising and there is very good future for almost all investors but still i could see a lot of people fail and struggle in trading.The basic cause for this failure is not abiding yourself with rules, what ever be the situation you should not forget the basic rules, basic rules are almost the same to almost all markets and in all situations.<br /><br /> When you are investing in market donot enter the market with certainities, think always in terms of probabilities, certainities will never help in share market.<br /><br /> When you want to invest for long run see for the fundamentals of the company and invest but when you want to invest for short term and day trading you should see for the technical analysis .<br /><br /> Never bring your emotions inside the market emotions cannot be strategies and they will never help in your investing.<br /><br /> Never try to go against the market that is not recommended even by the big guns<br /><br /> Keep watching your holding always you just cannot hold a share which is not at all useful to you or going against the probabilities, be ready to gain or be ready come out of the market immediately when you smell danger.<br /><br /> Try to analyse your stay in the market and the business done by you atleast every month and learn the plus and negatives, reviewing your lose, and profit will help you to plan further in the coming month.Unknownnoreply@blogger.comtag:blogger.com,1999:blog-7789699755619161255.post-21143847785929134092007-11-13T08:49:00.000-08:002007-11-13T09:04:34.089-08:00what do you do on week ends saturday and sundayWhat do you do on week end apart from the all other greezy works i just take some time out and in the after noon of saturday i will just check all the main and important and talk of the week share prices from the week begining to the end and see how it moved the whole week day by day and what causes the movement with the other resources such as news and how the market and the particular shares responed then reviews and expert comments and so on. This will give me what affects a share on its high and low and its hectic movements. Now with the guidance i got what i will do is when sunday arrives after having my coffee, i just go through the sunday suppliments and see for all the predictions about the share market by the experts and i will also look for those causes that may affect the shares the news and the policies and everything and chart out the table for the next week what is going to be what next week and how it is going to be and what are my plans and how i am going to face it, this is what i do so long.<br /><br />What do you do on the week end saturday and sunday ?Unknownnoreply@blogger.comtag:blogger.com,1999:blog-7789699755619161255.post-26326582144574447802007-11-11T09:03:00.000-08:002007-11-11T09:16:52.790-08:00Trading is it risky?Today, i had been to a seminar about how to make money from internet and investing. At the time of individual introduction when i introduced myself as a trader and trading since 2003 every body was asking really? then i was quite astonished to see why they see as an alien, after the seminar is over everybody almost everybody started asking me sir, don't you think that trading is very risky the only answer yes,if you dont know it, but you show me a field where without any risk that we can earn and enjoy even i would be very much willing to leave all the things i am doing currently and happily come and join.Yes, you cannot show a single earning option that is not risky and easy, is it not? if there is some thing like that then there wont be any seminars and all those books and plans and those strategies won't be there.<br /> So nothing in the world is free and nothing in the world is easy and especially you just cannot sit in the easy chair enjoying your coffee and paper and earn, that is totally wrong.If you learn the basics of what you are going to do and plan your things with certain goal and approach things according to your plan it is not hard,everything in the world is attainable if you approach it with a planUnknownnoreply@blogger.comtag:blogger.com,1999:blog-7789699755619161255.post-43083567039120818482007-10-31T19:34:00.000-07:002007-10-31T19:42:58.616-07:00Drop your tips and comments pleaseEventhough i am involved in share market since five years now, and if you ask me to rate my stay over there i can say i have not lost much till date i have been almost successful in the market, but since this is a field which requires a lot of watch and research to be made to get a beneficial share and guess the market, at times i feel some what hard to run with the same phase at which it travels, since i request you all yes, everybody to offer their comment, tips, their stories about how they gained in something, how you anticipated your gain or how you anticipated and got yourself saved from a big loss and so on most of all if you could offer some important tips and tips for daytrading i think those who are really interested in share market and investment will be benefited from this.<br /> Ok , friends will you give me your tips and your comments,<br /> <br /> Lets make this in BIG BIG WAY <br /><br /> DO DROP INUnknownnoreply@blogger.comtag:blogger.com,1999:blog-7789699755619161255.post-25825550970359616322007-10-29T00:56:00.000-07:002007-10-29T00:59:26.994-07:00India's Curbs May Inhibit Efficiency, Paulson SaysOct. 29 -- U.S. Treasury Secretary Henry Paulson said measures introduced by India's market regulator to slow capital flows from overseas may inhibit efficiency.<br /><br />``Administrative restrictions of capital flows are blunt instruments and can have unintended consequences,'' Paulson said at a conference in Mumbai today. ``They tend to inhibit inefficiency and lose their effectiveness over time.'' <br /><br /><a href="http://www.bloomberg.com/apps/news?pid=20601080&sid=aZLraxFOcMtg&refer=asia">go for the complete story of this interview below<br /></a>Unknownnoreply@blogger.comtag:blogger.com,1999:blog-7789699755619161255.post-45333741203878497942007-10-22T22:14:00.000-07:002007-10-22T22:15:45.486-07:00Some points to ponder in day tradingSome points to ponder in day trading<br /><br />Generally intraday or day trading means - you should buy low and sell high,<br /> or you should sell high and buy low this is basic factor of daytrading<br />to make good money.<br />But in reality almost all of them trade in a hasty way in day trading and lose money<br />instead of earning, there are two important factors you should possess to be a successful<br />day trader, 1.Discipline, you should trade when you find the winds are favour for you<br />and if you feel that is a good trade rather than becoming a trader of compulsion, when<br />if you feel it is favouring as you wish there is no need for you to go to the market at all.<br />2.Cut your losses - this is the most important factor that most often offered as advice<br />to all traders in all type of trading and the most neglected one on the otherhand, unless<br />and until you learn to cut your losses to as much as possible the profits you are going<br />to get is less.<br />Develop your knowledge of markets by going through lots of newspapers, articles, reports,<br />experts reviews, and other resources and most of all make a habbit to watch the market.<br />As for as tips are concerned it cannot be assured because to give the tip what sources<br />the tipper had analysed and all we dont know and more over no tipper in the world will give<br />you 100% assurance about his tip, so , it is advisible after you receive a tip you do the ground<br />job and a small research for yourself to find out the worth of the tip before investing.<br /><br />Trading market has got two feelings 1. Greed 2. Fear, you trade with greed and quit with fear<br />but if you trade in the reverse, that will give you some good results ie., trade when others fear<br />and quit when others are greedy.Unknownnoreply@blogger.comtag:blogger.com,1999:blog-7789699755619161255.post-80670007855702261902007-10-14T07:18:00.000-07:002007-10-14T07:36:46.180-07:00The Important donots of Share Trading1. Never get yourself emotional about a tip/rumor about a stock being hot from your broker or from anybody.<br />2.Don't go for an investment/sale with that - don't be impulsive.<br /><br /> At times when you happened to receive such tip about a stock, rather than taking a drastic move on your own go for the first hand news about that you can check the news with the following sites.<br /> <br />1.<a href="http://www.nseindia.com">http://www.nseindia.com</a><br /><br />2.<a href="http://www.bseindia.com">http://www.bseindia.com</a><br /><br />3.<a href="http://www.icicidirect.com">http://www.icicidirect.com</a><br /><br />4.<a href="http://www.indiaearnings.com">http://www.indiaearnings.com</a><br /><br />These are some of the important official and non official sites that you can rely upon for the important News, announcements, dividents pay off, any corporate move by any company over other company,moves of the top managements,anouncement of their earnings, and other important things happening in the market. These sites will give you the hot and the current news exactly, so whenever you receive any tip about the market it is better you check with these sites for the genunity of the tip before taking any move.Unknownnoreply@blogger.comtag:blogger.com,1999:blog-7789699755619161255.post-35591122674382737772007-10-14T07:09:00.000-07:002007-10-14T07:13:26.328-07:00An important clue that works<p class="MsoNormal">This is an important clue for all those interested in share trading , almost all those who trade might definitely know CNBC TV 18 and Mr.Udayan Mukerjee. During the CNBC Market Opening Bell (From 10:00 AM to 11:00 AM on trading days), Udayan interviews CEOs of atleast two to three companies which are in the news for various reasons. Recently they have started picking a small cap stock daily to interview the management.<br /><br />Before taking a stipulated commercial break, Udayan will tell us which management he is going to Interview after the break. Purchase the stock after the announcement. Be vigilant during the Interview and Exit the stock after the interview suitably depending on the developements and announcements during the Interview. Often in 95% of the cases, these deveopements turn out to be positive and you will end up with a decent profit in your trade. But the catch is, you have to trade all the days, to negate the effect of remaining 5% losing trades. And remember, this is a very short trade.</p> <p class="MsoNormal"><!--[if !supportEmptyParas]-->This clue was given to me by one of<span style=""> </span>an experienced trader while checking with this sort even I agree with what he told to me, but share market is unpredictable also.</p>Unknownnoreply@blogger.comtag:blogger.com,1999:blog-7789699755619161255.post-9710130688612301852007-09-28T07:59:00.001-07:002007-09-28T08:43:06.525-07:00kinds of traders<span style="font-family: arial;font-size:100%;" >Generally those who do trading are of three kinds.<br />1.Investors 2.Traders 3.Speculators<br /><br />Investors are those who are interested in investing their money in share on the assumption that it will be safe and the returns will be high in long run, ie., the investor purchases the share and holds it as assets hoping that his investment will give a capital gain in the long run he will not be interested in indulging in trading as a profession or they are not interested in short term quick income<br /><br />Traders are those who on the other hand exactly the vice versa of the investors, these people are interested in making profit in the market in short term it may be for few minutes, few hours, or for few days, they always try to profit from the short term gains in the market.<br /><br />Speculators are those who are ready to take high risks in for a high profit,they will be always prepared to take high risk with respect to anticipating future price movements for high large gains and normally they invest in the highly leveraged investments such as futures and options.<br /><br /> Here, normally an investor will always before investing will see for the track record of the company its product, its balance sheet and so on because their aim is only capital gains,and a trader is not at all worried about the company or its product or its track record but they are interested only technical analysis or charting which relate only to the stock price.<br /></span>Unknownnoreply@blogger.com