The Market is the center of the Universe. Look no further for the answers to the secret of life. Being in the Market is such a living breathing experience that I cannot imagine a world without a Market place.
It is an ongoing part of the cosmic life of all Peoples for we are all influenced by the workings of the World Economy and it has caused the rise and fall of empires throughout time. How to make money and hold on to it has been the sacred quest of every family leader since the invention of responsibility.
Learning the Market is really learning how to guess what to do in any given circumstance. If you are a Market Professional and have learned how to make money and also that if you don't make the money, no one else will do it for you.In life, making a mistake will always cost something. When in the Market, the mistakes you make will cost you money. But what is life about besides "managing risk"?
So, you keep doing your homework, picking your stocks, buying and selling and watching how the Market people react to news. According to your indicators, the Market is getting negative, so you must get ready for the opportunities that will reveal themselves at the turn. If you have done your homework, you will know what to do. When the time comes, you will take the chance that you are right and buy that stock I've always wanted.
So, let the Universe spin and the Market move and I shall make for myself a glorious ride, the work is not hard when the reward is the thrill of survival.
Monday, February 25, 2008
Monday, February 18, 2008
Policies to contract with a downward Market
During a down market many investors assume the next strategy. They transfer their stocks into cash and wait until the market starts to stir up again. They do this in order to defend their capital. Despite the fact that this strategy sounds as a good association on the part of investors, it conceals its risk and might not work for each one.
One of the troubles of cash out is that you not at all recognize for certain that the market is really going down in a steady fashion. The decrease might be a provisional occasion, which might not proceed for an extended time.
Consequently you might finish up selling your stocks to purchase them back when the market corrects itself subsequent to a short period of time. This will result in paying high prices. What you actually have done is selling at prices that were lessening and purchasing back at prices that are going in front.
Doesn't sound financially logical, right?
Problem 2
Still though you were right that the market is suitable bearish, you cannot know for certain when it will get better back to its healthy condition. There might be several false beginnings of recovery previous to the market really starts to right itself.
Preceding reports demonstrate that the first 12 months are the ones throughout which the profits from a down market are experienced. Though you cannot be sure that you will not stop working to see some of these months and as a result lose some of the gains.
We advise inaction during such conditions if you have some time until the money you have locked in stocks is needed. You can do this by transferring a portion of your assets into protective stocks, which offer a certain degree of protection during such conditions.
These industries productively manage to withstand the pessimistic effects of a bear market. Though your investment possibilities are significantly lessened if you will soon need the money you have invested in stocks. Thus, you are facing the bad alternative of selling while the market is down. But you should not be hasty and try to find an investment solution that will provide the needed protection.
If you are near your retirement years you can consider transferring your assets into defensive stocks. The closer you come to retirement the more you should think the transference of assets to fixed income securities. Lastly no matter in what situation you are when the down market hits, try to be a passive observer and wait for the market to correct itself.
One of the troubles of cash out is that you not at all recognize for certain that the market is really going down in a steady fashion. The decrease might be a provisional occasion, which might not proceed for an extended time.
Consequently you might finish up selling your stocks to purchase them back when the market corrects itself subsequent to a short period of time. This will result in paying high prices. What you actually have done is selling at prices that were lessening and purchasing back at prices that are going in front.
Doesn't sound financially logical, right?
Problem 2
Still though you were right that the market is suitable bearish, you cannot know for certain when it will get better back to its healthy condition. There might be several false beginnings of recovery previous to the market really starts to right itself.
Preceding reports demonstrate that the first 12 months are the ones throughout which the profits from a down market are experienced. Though you cannot be sure that you will not stop working to see some of these months and as a result lose some of the gains.
We advise inaction during such conditions if you have some time until the money you have locked in stocks is needed. You can do this by transferring a portion of your assets into protective stocks, which offer a certain degree of protection during such conditions.
These industries productively manage to withstand the pessimistic effects of a bear market. Though your investment possibilities are significantly lessened if you will soon need the money you have invested in stocks. Thus, you are facing the bad alternative of selling while the market is down. But you should not be hasty and try to find an investment solution that will provide the needed protection.
If you are near your retirement years you can consider transferring your assets into defensive stocks. The closer you come to retirement the more you should think the transference of assets to fixed income securities. Lastly no matter in what situation you are when the down market hits, try to be a passive observer and wait for the market to correct itself.
PARSVANATH can give good returns from this stage
“The company is planning to invest up to USD 5-6 billion over 5-7 years to develop its land bank and special economic zones (SEZs). The company is having land bank of 191 million sq. ft. which includes 57 million sq. ft. in six SEZs. The company with strong execution capabilities is expected to move ahead of its peers. The company together with Indiabulls Real Estate has coupled to bid for ten prime location plots, which are offered by Indian Railways for commercial development across various cities. There is about 700 acres of railway land in 107 sites across the country that has been short listed for development. This will provide altogether generate new line of revenues for the company. The stock at the current market price of Rs 270 will trade 11.55 times to its earnings and 2.83 times to its book value and has great upside potential in medium to long - term. Therefore expecting the target price of Rs 482, which is approximately 75% up from the current market price of Rs 270. “.
GMR Infra looking good to buy
"If one look at the whole crackdown that has happened in GMR Infrastructure, one thing which has clearly got established over the last 6 months of data is that Rs 135 seems to be a good support. It’s heartening to see the same scenario happening since the last one month as well. If one is above Rs 135, which I think there is no problem staying invested in that stock. We have been positive and up beat on the stock from a long term outlook."
"If you are looking at a stock for over one year, you would be expecting to even see new life highs in the counter. So definitely even a buy at these levels is justified. From a short-term point of view, you will still take a whole lot more in terms of time to consolidate and getting past Rs 180 is not going to be all that simple for that stocks. So it’s got to be all the patience and for at least a month you will be stuck in the volatility and once the market favors it, this would catch on pretty well."
"If you are looking at a stock for over one year, you would be expecting to even see new life highs in the counter. So definitely even a buy at these levels is justified. From a short-term point of view, you will still take a whole lot more in terms of time to consolidate and getting past Rs 180 is not going to be all that simple for that stocks. So it’s got to be all the patience and for at least a month you will be stuck in the volatility and once the market favors it, this would catch on pretty well."
Thursday, February 14, 2008
Day Trading Signals
With the help of day trading signals, day traders sell all long positions and cover all short positions at the end of a working, trading day. In day trading, you usually finish the day with cash in hand, to avoid holding any risks. One of the benefits of day trading is that since the positions are closed at the end of the trading day, any sudden news of events doesn't affect the opening prices of trading.
In day trading, different shares are bound to undergo different resistance and support levels. As the name indicates, resistance is basically a price level of a stock or perhaps an average that finds it difficult to break through. The support is a price level where the stock or average tends to hold above. The day trading signals are the signals obtained when stocks bounce off of support levels or sometimes even off resistance, if required.
These day trading signals are created watching the moving averages of shares. These moving averages, have trend lines similar to moving averages. A day trading signal depends on the number of times a stock tends to hit a particular trend line. The more faith there is in the trend line, the better it acts as a support for you. The longer the stock stays at a particular level; the better is the day trading signal of support.
The Internet boasts of many websites having bulletins where day trading signals are broadcast the whole day through. With these continuous day trading signals, it makes it rather easy for the day trader to predict how the share market will move. So day trading signals play an integral part in making profits in the share market and in having an interesting day of trading.
Article source: http://ezinearticles.com/?Day-Trading-Signals&id=353339
In day trading, different shares are bound to undergo different resistance and support levels. As the name indicates, resistance is basically a price level of a stock or perhaps an average that finds it difficult to break through. The support is a price level where the stock or average tends to hold above. The day trading signals are the signals obtained when stocks bounce off of support levels or sometimes even off resistance, if required.
These day trading signals are created watching the moving averages of shares. These moving averages, have trend lines similar to moving averages. A day trading signal depends on the number of times a stock tends to hit a particular trend line. The more faith there is in the trend line, the better it acts as a support for you. The longer the stock stays at a particular level; the better is the day trading signal of support.
The Internet boasts of many websites having bulletins where day trading signals are broadcast the whole day through. With these continuous day trading signals, it makes it rather easy for the day trader to predict how the share market will move. So day trading signals play an integral part in making profits in the share market and in having an interesting day of trading.
Article source: http://ezinearticles.com/?Day-Trading-Signals&id=353339
Winning traders are patient !
Patience is necessary, and one cannot reap immediately where one has sown
Timing is everything in trading. Winning traders is always patient .They having the knowledge how to control their desires so as to act positively on trading signals.
In spite of acting on an impulse, they cautiously follow the trading rules. Discipline is the key to successful trading. It is constructive to verify where you stand on this mannerism, and if you're impetuous, developing psychological strategies to compensate for it will allow you to trade profitably.
Depending upon whether you are a day trader, swing trader or longer term trend trader, discounting a delayed reward can be a problem. For a long-term investor, for example, it is necessary to buy-and-hold long enough for one's long term strategy to play out. There may be minor fluctuations during the waiting period, but seasoned investors have learned to wait it out.
Most beginner investors, in comparison, impulsively sell as the masses panic and buy the stock back at a top, which usually results in a losing trade. If you are a long-term investor, it is necessary to be able to control your impulse and strictly follow our BUY/SELL trading signals so as to allow the price to rise over time.
Even shorter-term traders, such as a swing trader, must fight the urge to sell early. Although trades are held for much shorter windows, a swing trader must know how to wait patiently for the optimal time to sell. Selling a winner too early is not going to allow one's account balance to increase exponentially at an ideal rate.
The day trader is at the contradictory end of the continuum. Most day traders feel an overpowering need to take a quick profit as soon as they can get it. To some extent, it may be wise for a person who has trouble patiently waiting for the price of an investment instrument to increase to become a day trader. It is useful to take other steps to work around one's inclination to sell prematurely. Follow the levels we provide in our day trading newsletter to enter and or exit a trade.
It has often been said that looking at one's screen during the trading day is like sitting in front of a slot machine and trying to resist gambling. It's hard. Just as the one armed bandit tempts recreational gamblers, the constant stream of quotes on a computer screen tempt seasoned and novice traders alike to make hasty trading decisions.
It is also useful to objectify the trade. The more you can learn to view the trade objectively, as if you just don't care what happens, the more you'll be able to resist the temptation to close out a trade prematurely. A cold, rational approach to trading, along with our range of profitable trading newsletters, is the best defense against impulsive trading decisions.
Patience is a virtue when attempting to trade profitably. It is useful to remember that humans have a strong, natural tendency to avoid risk and loss at all costs. This tendency often protects us from harm, but there are times when it can compel us to act impulsively.
We are naturally inclined to avoid losses at all costs, even if it means selling a potentially winning trade before it reaches fruition. Unless one can let winners increase in price sufficiently, profits won't balance out losses. The ability to control one's impulses and wait for larger, delayed rewards is vital for long-term survival. It's worth developing this ability.
Timing is everything in trading. Winning traders is always patient .They having the knowledge how to control their desires so as to act positively on trading signals.
In spite of acting on an impulse, they cautiously follow the trading rules. Discipline is the key to successful trading. It is constructive to verify where you stand on this mannerism, and if you're impetuous, developing psychological strategies to compensate for it will allow you to trade profitably.
Depending upon whether you are a day trader, swing trader or longer term trend trader, discounting a delayed reward can be a problem. For a long-term investor, for example, it is necessary to buy-and-hold long enough for one's long term strategy to play out. There may be minor fluctuations during the waiting period, but seasoned investors have learned to wait it out.
Most beginner investors, in comparison, impulsively sell as the masses panic and buy the stock back at a top, which usually results in a losing trade. If you are a long-term investor, it is necessary to be able to control your impulse and strictly follow our BUY/SELL trading signals so as to allow the price to rise over time.
Even shorter-term traders, such as a swing trader, must fight the urge to sell early. Although trades are held for much shorter windows, a swing trader must know how to wait patiently for the optimal time to sell. Selling a winner too early is not going to allow one's account balance to increase exponentially at an ideal rate.
The day trader is at the contradictory end of the continuum. Most day traders feel an overpowering need to take a quick profit as soon as they can get it. To some extent, it may be wise for a person who has trouble patiently waiting for the price of an investment instrument to increase to become a day trader. It is useful to take other steps to work around one's inclination to sell prematurely. Follow the levels we provide in our day trading newsletter to enter and or exit a trade.
It has often been said that looking at one's screen during the trading day is like sitting in front of a slot machine and trying to resist gambling. It's hard. Just as the one armed bandit tempts recreational gamblers, the constant stream of quotes on a computer screen tempt seasoned and novice traders alike to make hasty trading decisions.
It is also useful to objectify the trade. The more you can learn to view the trade objectively, as if you just don't care what happens, the more you'll be able to resist the temptation to close out a trade prematurely. A cold, rational approach to trading, along with our range of profitable trading newsletters, is the best defense against impulsive trading decisions.
Patience is a virtue when attempting to trade profitably. It is useful to remember that humans have a strong, natural tendency to avoid risk and loss at all costs. This tendency often protects us from harm, but there are times when it can compel us to act impulsively.
We are naturally inclined to avoid losses at all costs, even if it means selling a potentially winning trade before it reaches fruition. Unless one can let winners increase in price sufficiently, profits won't balance out losses. The ability to control one's impulses and wait for larger, delayed rewards is vital for long-term survival. It's worth developing this ability.
Subscribe to:
Posts (Atom)
