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Sunday, November 23, 2008

Stocks - Allways research before buying..

1. Always do a thorough research before buying any stock. Go through its last few days, one month, six months, one year and three years chart and closely watch the stock’s price during those periods. Also go through company’s financial details like balance sheet, profit and loss, quarterly results and yearly result, growth pattern, year to year and quarter to quarter growth details, Price-Earning Ratio (P/E), Return on Equity (ROE), Earning per Share (EPS) etc

2. Don’t by shares by just reading someone’s tips. Even if you are planning to go with tips then follow tips only from well established share brokers.

3. Don’t put all your money in one stock or in one sector. Select one good stock in each sector and diversify your investments. BSE and NSE have different sectors like Information Technology, Oil and Gas, Power, Telecom, Media, Healthcare, Textile, Housing, Tourism, FMCG, Automobile etc. Find out sectors with visible growth and select one or two good stocks in that sector for your investment.

4. Don’t buy in Bulk quantities. Share price fluctuates in every second. So if you put all your money at once then you will not be able to buy more when it goes down. So buy in small quantities in each dips. For example if you are planning to buy 100 shares of Tata Motors and its current price is 750 then purchase 20 shares when it goes down to 740. Purchase another 20 when it touches 730. Like that buy in small amount for each dips. If you buy all 100 shares at 740 then what will you do if it goes down to 700?

5. Do day trading only if you know share market well and ready to take any risk. Day trading is very risky. Some times you will be able to make good money with day trading but same way you will loose money also.

6. Read share broker’s terms and conditions and price structure carefully. You should be thorough with their fees and charges. Different brokers have different price structure. For example my share broker charges .5% for buying and selling a share. But for selling they have a minimum fee of Rs 16. So even if I sell one share they will charge me Rs 16 as brokerage fee for that sale. Apart from their basic brokerage charges there are many fees and taxes like service tax, security transaction tax, education cess, stamp duty etc.

7. When you stock appreciates more than 12.5% then book partial profits.

8. If your share price goes below 16% of purchase value then it is better to sell the it to save your principle but you can hold on to it if the company profile is very good and you are very sure about the stock’s future.

9. Some people believe that they will be able to make good money in buying cheap stocks. But high value stocks have good earning potential and will appreciate faster than cheap stocks.

10. Regularly visit stock related web sites, watch news channels and read expert advice on different stocks and overall market conditions.

Source - tamilnow.com/articles/share-trading-tips.htm

Share Market - Do's

What you MUST do

1. Get rid of the junk

Any shares you bought but no longer want to keep? If they are showing a profit, you could consider selling them. Even if they are not going to give you a substantial profit, it is time to dump them and utilise the money elsewhere if you no longer believe in them.

Similarly with a dud fund; sell the units and deploy the money in a more fruitful investment.

2. Diversify

Don't just buy stocks in one sector. Make sure you are invested in stocks of various sectors.

Also, when you look at your total equity investments, don't just look at stocks. Look at equity funds as well.

To balance your equity investments, put a portion of your investments in fixed income instruments like the Public Provident Fund, post office deposits, bonds and National Savings Certificates.

If you have none of these or very little investment in these, consider a balanced fund or a debt fund.

3. Believe in your investment

Don't invest in shares based on a tip, no matter who gives it to you.

Tread cautiously. Invest in stocks you truly believe in. Look at the fundamentals. Analyse the company and ask yourself if you want to be part of it.

Are you happy with the way a particular fund manager manages his fund and the objective of the fund? If yes, consider investing in it.

4. Stick to your strategy

If you decided you only want 60% of all your investments in equity, don't over-exceed that limit because the stock market has been delivering great returns.

Stick to your allocation.

Share Market - Dont's

What you must NOT do

1. Don't panic

The market is volatile. Accept that. It will keep fluctuating. Don't panic.

If the prices of your shares have plummeted, there is no reason to want to get rid of them in a hurry. Stay invested if nothing fundamental about your company has changed.

Ditto with your mutual fund. Does the Net Asset Value deep dipping and then rising slightly? Hold on. Don't sell unnecessarily.

2. Don't make huge investments

When the market dips, go ahead and buy some stocks. But don't invest huge amounts. Pick up the shares in stages.

Keep some money aside and zero in on a few companies you believe in.

When the market dips --buy them. When the market dips again, , you can pick up some more. Keep buying the shares periodically.

Everyone knows that they should buy when the market has reached its lowest and sell the shares when the market peaks. But the fact remains, no one can time the market.

It is impossible for an individual to state when the share price has reached rock bottom. Instead, buy shares over a period of time; this way, you will average your costs.

Pick a few stocks and invest in them gradually.

Ditto with a mutual fund. Invest small amounts gradually via a Systematic Investment Plan. Here, you invest a fixed amount every month into your fund and you get units allocated to you.

3. Don't chase performance

A stock does not become a good buy simply because its price has been rising phenomenally. Once investors start selling, the price will drop drastically.

Ditto with a mutual fund. Every fund will show a great return in the current bull run. That does not make it a good fund. Track the performance of the fund over a bull and bear market; only then make your choice.

4. Don't ignore expenses

When you buy and sell shares, you will have to pay a brokerage fee and a Securities Transaction Tax. This could nip into your profits specially if you are selling for small gains (where the price of stock has risen by a few rupees).

With mutual funds, if you have already paid an entry load, then you most probably won't have to pay an exit load. Entry loads and exit loads are fees levied on the Net Asset Value (price of a unit of a fund). Entry load is levied when you buy units and an exit load when you sell them.

If you sell your shares of equity funds within a year of buying, you end up paying a short-term capital gains tax of 10% on your profit. If you sell after a year, you pay no tax (long-term capital gains tax is nil).

Monday, November 17, 2008

Top 15 Tips For Successful Stock Trading

Trading stocks simply isn't for everyone. Some people can stand the volatility and the pressure that comes with it, and some people can't. Even among the few who can handle the heat, fewer yet will ultimately be successful doing it. While no exact rules can dictate what makes a lucrative stock trader, those Wall Street sages who are legends for making killer winnings in a short amount of time all have a few characteristics in common.

1. Successful stock traders can fight their instincts and act counter-intuitively.

2. Successful traders maintain a regimented system that's as easy and efficient as possible. It rarely makes a difference which system you use - technical analysis versus fundamentals or value versus quality, for example - as long as you adhere to it. A successful trader knows the benefits, as well as the shortcomings, of their system and executes trades based solely upon the system. "The secret to success is consistency of purpose." This means, you must create separate tactics for establishing positions and closing them.

3. Successful traders calculate risk and make decisions that lower their risk exposure. Successful traders abhor losing money and manage their losses before they become too great, even if that entails throwing in the towel and acknowledging they made an incorrect call.

4. However, successful traders are not afraid of mistakes or taking chances. Successful traders have what Native Americans refer to as, "sovereignty," which is the right and capability to do the wrong thing. Essentially, sovereignty is the courage to make your own mistakes, for it's from our greatest failures that we learn the most.

5. Successful traders are not embarrassed or afraid of taking losses. In fact, they expect them and know that an important part of trading is limiting losses and preserving capital.

6. Successful traders master how to analyze stocks. Many traders only use one form of analysis or seek research from one source, but comparing various reports and charts can give you a better picture.

7. Successful traders lead balanced lives. The rush that a homerun trade can produce is addictive, but a successful trader knows when to walk away - and more importantly, has something to walk toward, whether that is family, friends or hobbies.

8. A successful trader cultivates patience. This means letting profitable positions run their course, but it also means that when the market turns against them, they have the patience to try again and approach the market resiliently, courageously and with confidence.

9. A successful trader has a strong drive for success. Trading requires steady efforts, not haphazard positions established cavalierly. Determination to succeed can make all of the difference when the market is tumultuous because many people abandon ship.

10. A successful trader has discipline. That means reviewing markets and researching trades even if he isn't in the mood. Discipline also means holding to your strategy - not buying or selling positions because everyone else is doing it.

5 Bonus Tips

11. A successful trader understands the tactical differences between defensive and offensive behavior, and when each is best used. First, preserve capital, then profit.

12. Successful traders remain as emotionally detached as possible - this means ignoring rumors or Wall Street hearsay. They resist the temptation to join the crowd. Stop loss limits can help traders stay objective by preserving profits and ensuring that profit comes off of the table. While you may miss the rush of the lowest entry points and the highest selling points, stop losses let you sleep at night and live your life without being glued to the computer screen.

13. A successful trader knows himself and is very objective about his strengths and weaknesses. Know how to combat your weakness and implement strategies that capitalize on your strengths.

14. A successful trader knows their portfolio. Never let a trade slip through the cracks - keep detailed records and review your holdings often.

15. A successful trader sticks to the rules - the rules they set for themselves. When markets are moving swiftly, it's easy to lose your head. So, formulate a plan outside of the heat of the moment and stick to it to ensure trading success.

How To Buy Good And Cheap Stocks

Many investors love to buy cheap stocks, but as Mr O'Neil (investors.com) puts it: "Stocks are cheap for a reason". In many (but not ALL) cases, investors do not realize that the stocks they bought cheaply belongs to a company mired in problems with slowing earnings, sales growth and shrinking market share. These are bad traits for a stock to have, regardless of how cheap it is.

Nonetheless, although most investors have lost money buying cheap stocks, there are still many savvy investors (read: Warren Buffett) who have made fortunes buying cheap BUT GOOD stocks. How did they do it? Below are some guidelines:

Buy a business, not a stock.

When evaluating a stock, see yourself as a business owner, not a stock investor. Only buy businesses that you understand. When you understand a business, you will be able to evaluate important questions like: Is the company's stock cheap because it is losing market share? What are the challenges faced by the company?

Buy stocks in companies that have a proven track record.

This includes a consistently good EPS, sales, equity and free cash flow growth rate and a long history of great ROIC (above 10% for the last 10 years).

Buy stocks that have a big MOAT

A moat is a 'protective shield' that a company has that prevents other companies from invading their territory. Examples of moats include


Brand name: The company has a very strong brand name, making it difficult for other companies to compete with them. An excellent example is "Apple", with its group of die-hard fans.


Secret: The company has a patent or trade secret that makes competition illegal or very difficult. Example: 3M.


Buy stocks with a good and honest management

Traits of honest management include admitting their mistakes (if the company did not do well for one quarter, they should admit it and explain how they intend to improve the situation) and accepting a reasonable compensation for their work.

How to buy Cheap Stocks?

At this point, you may be wondering: If a company has such an excellent track record and characteristics, why is the stock cheap?

Most of the time, these companies stocks are cheap because of a temporary problem (such as missing EPS estimate) or because the overall market is bearish. At times like this, you can normally buy the stocks cheaply, preferable at a 50% discount.

As long as one does his/her research diligently and is willing to wait patiently for a good price, he/she can definitely join the ranks of successful investors. A bear market (which is NOW) presents the best buying opportunities.

Saturday, November 15, 2008

Stock Market Tips

Stock Market Advice - Here's Why It's Free!

One of the most plentiful commodities in all of the world is supply market advice. It is readily out there from friends and family. When your hairdresser or milkman finds out you invest in the sell they will willingly provide you provided free of charge advice.
Stock industry gurus appear always on the cable news channels and the network morning shows. They are relatively bursting with new stock tips. In that terrific world of ours everyone has a ready supply of availability market advice.

This great abundance of free of charge flowing stock advice is not a new phenomena. It seems to suffer sprang up almost as quickly as did the supply markets themselves.
Perhaps my favorite story of free of charge supply cash in on advice comes from Edwin LeFevre's Reminiscences of a Stock Operator. As the story goes, two hapless fellows become angry at the man that continues giving them bum stock tips. They have followed a couple of the present tips and lost a great deal of money. In frustration the two compose a torrid telegraph message to tell the tipster off.

Just before they send the message, one of the fellows has second thoughts. He says something to the effect of, "Hold on, Jim. you are not really going to send this message are you?"
To that Jim replies, "And why shouldn't I?"

"Well, if you send too telegraph, he might get sore and never give us a new tip!" the friend answers.

This amusing story illustrates the second half of the challenge in stock market advice. Not only do people sttink to give advice on the stock market, they also love to receive a juicy morsel of stock market gossip.

It is just human nature. When you hear the latest rumor or the newest whisper nearly a ensured stock, you feel like you are in on the inside story. These hints can fill your head with dreams of great fortune. Stock tips are very tempting to take seriously.

But in almost all instances, the only fairly priced inventory market tips are the free ones. And even such can cause you to consume currency you ought to not have ordinarily lost. Stock state tips are a very tempting form of availability state gossip.

They will with out a doubt be a part of the stock market for as extended as we suffer availability markets. But properties are really a foolish way of supposed just about investing in the market. The later time you hear of a hot stock sector tip, just smile and walk away. Your pocketbook will thank you later.

World Stock Markets

In that world of distant boom it is necessary to can appreciate how is occurence in the supply markets in a larger amount of facets of the world. These new banking markets may not reduce us in any that way but unquestionably act for an option to invest your traffic in people supply markets.

The inventory markets of the country are of two sorts one at which the state is mature and not essentially winning for model the inventory industry on England identified the FTSE or the London Stock Exchange and many a good amount of countries as if the Luxembourg Stock Exchange.

These availability markets are very much covet the US stock markets and absolutely work on the behalf of a small amount of length of the foreign sector trade.

Next turn up the inventory markets of the developing economies which are a barometer of how much the market's explosion is lucrative in these emerging economies. These stock markets of the sector now experience !no! persons watching them than in the past as of two reasons,one is to see how the business is performing and businesses all virtually the earth ,see these types of economies as probable markets to capture. The further set of people are investors who are keenly watching how much returns these kinds of markets are initiating and are ready to invest in such markets so as to suffer a diversification of portfolio and hold even better takings based on information from these kinds of markets.

The emerging economies of the earth are referred to as BRIC economies that are Brazil, India,China and Russia. These two economies experience the led the global sector march of initial decade of the twenty mainly century.

Let us take an ideal of Bombay Stock Exchange now famed as BSE. BSE represents the Indian stock economic and has steped up quicker as opposed to all the supply markets in the sector as opposed to two . In thing the BSE Sensex ,the index similar to the Dow Jones index has hiked so a great deal this borrowers fear overly the bubble will burst one day and there could be a havoc in the markets.

World availability markets apart for these kinds of two emerging economies suffer as well hiked and new significant choices to the distant investors particularly in on new breed of fund managers who experience arrive onto the phase and are ready to take a larger amount of probability in the economies of the countries as opposed to the in the past era where US stock market was what mattered the most.

Stock & Mutual Fund Investing

The availability sector is a above the usual place to issue out money. If you intend on getting a house investing in stocks and mutual funds, we highly hint at such a you initial do examination on the firms you need to invest in. Although the inventory economy is a good place to make money, there is furthermore a degree of possibility involved.


Real etsta Investing

Investing in real estate is safer as opposed to the inventory market. A lot of mortgage holders obtain houses the present trouble are in fancy of remodeling, and can take in a lot of funds by fixing them up and selling them. Be advised overly it is not as obvious as attaining a house, painting it, and consequently marketing it. There are a lot of ingredients this you provided ponder before you endeavor to invest in true estate.


Online Investing

Another swiftly disseminating way to invest is throughout trading online. Traders have the capability of working at research, attaining and selling and constructing money amid this investment opportunities all among the simplicity of sitting in front of a computer. It's amazing at how simply you can renovation your cash online, and make traffic without still giving up the house!

If you guidelines on investing, make insured you educate yourself in the market or shows in that you seek to proceed. Whether it be getting a house amidst stocks, doing it providing mutual funds, getting a house amidst true estate or doing it online, do your researching and give out some money! If you are coming across as for a resource to windfall you amidst investing, you can visit our website and you could find sizeable guidelines around investments, and how to initiate money.

Stock Market Trading

Stock Market Day Trading
Stock market day trading is a nice signals of producing finances through a tiny of gambling. You suffer to own particularlly strategy to follow when participating in availability sell day trading. However, yet you key in to stock region day trading, you experience to be predicted to devote your livlihood to it, as you nearly become married to the inventory market.

The inventory state is a really volatile boom too has different ups and downs in a single day. When participating in supply market day trading, it is central to continue a note of all shares and the way properties may turn within the day. Each trader has his or her own strategy to maximize earnings. Using the a multitude of day trader tools, one can only find out the secrets of availability market day trading to take in maximum results.

Stock boom day trading performs not significant have to be wound up amid computers. While there are multiple day traders who do the trading making the most of alone the computer, there are others who trade using telephone and mobile phones. However, whichever technique of inventory economic day trading you adopt, it is central the present you initial study the market thoroughly. When trading surrounded by the inventory market, it is necessary this you keep away from listening to any worthless faith about companies. It is nonetheless worse to put up trades rooted on unconfirmed company polls and tips.

The key of inventory state day trading, or any trading for the matter, is to frequently buy stocks low to sale high. If you will not make the right judgment in the beginning, through the way of time, you is planning to go up these types of skills to become a higher inventory world day trader. One height to remember in availability world day trading is so there is a limit on the inflations from what i read in a single share. This is the trigger for it being best to continually buy and tweak stocks without restraint and frequently. So when you take in that you hold attained the limit in stock market day trading, you can just recently exit from who stock to decide an additional a larger number of realistic stock.

Stock Market Quotes

Stock Market Quotes

The after web ones provide Stock Market Quotes and other useful mortgage information
* Yahoo! Finance - get stock quotes, mortgage rates, up to date news, portfolio management resources, worldwide market data, and message boards.
* The NASDAQ Stock Market- detailed market and security information for the Nasdaq "Over The Counter" stock exchange. Also includes portfolio tracking and IPO information.
* Quote.com- Lycos Finance - get stock quotes and streaming LiveCharts.
* CNN/Money - combines practical personal finance advice, calculators and investing tips with business news, stock quotes, and mortgage market coverage.
* PC Quote Online- free delayed and true time quotes and charts and news covering stocks, futures, options, and mutual funds.
* BigCharts- inventory charts, screeners, interactive charting and the latest breaking news from the markets.
* MSN Money- investing, investment tools, business market news, headline news, articles, reports, stocks and quotes, message boards, and a stock ticker.
* INO.com- futures, stocks, FOREX, options quotes, charts, and news for futures and options traders.
* ADVFN- free stock quotes, stock charts, market news and dwell availability charting tools.
* eoddata.com- free of charge end of day inventory market data and historical quotes for many of the world's top exchanges including NASDAQ, NYSE, Toronto, FTSE, SGX, HKSE, and Paris.
* Reuters.com- provides stock information including, stocks, stock quotes, inventory possession strategies, and key company developments.
* TradingCharts- source for free quotes and charts - for the duration of 30000 stock market, commodity futures, and forex price charts and quotations.
* Barchart.com- futures and stocks quotes, charts, realtime advanced technical charting and analysis of stocks and commodities.

stock market news

Stock Market News

Most of the people find it an easy way to make money over investments in inventory market. They undergo found too stock market is a place that can easily help them develop economically. However the newly constructed setbacks in stock trades have made a worrisome in the minds of investors. People never dare to invest in the fluctuating market for different reasons. This happens mostly because properties are unaware of the changes happening in stock trading companies. They fail to get the logic of how to trade stocks. To benefits them, there are various informative elements working in inventory economic including reports and stock world news.
Stock sell news has daily updates on what all changes are truth in stock market. Financial sector is able to be analyzed on a proper manner through comparisons and experience. Stock economical analysts mostly give their perception on current status of stock values and trading stocks. This can be a boon to the investors who are appearing forward hearing !no! from experts. For beginners, inventory market news give various information including when, how, how much and where to invest. All these is planning to be based on the analysis reports given in the markets.

Stock market trends and the future of the stock economy as per the current statistics will be able to be issued in the availability market news. There will be a broad research and thoughts given by distinct reporters who are keen in observing the flexible market. Quotes on various international supply markets might also be given in supply market news. Such quotes can help investors and readers to understand how a trading in such a market can help them.
When online trading gets popularity, stock market shock comes up with most recent innovations and unrest happening in the world of internet stock trading. This can reduce the inquiries and anxieties of everybody who are new to the field and who for the duration of be on the look the planet of stock market from outside.

The most important factor that will evaluate the quality of stock market news is the relevance in the topics they handle. The news must be highly witnessed from the time the unrest come up on hourly basis and hence it is highly required that the news carry all the latest studies from all stock markets around the globe News have to also provide investors and readers the latest updates. An impartial attitude must be trailed when news are given exceptionally when comparisons are made.

stock market game

Stock Market Ticker

A stock market ticker offers stock information in real instant streaming format. The tickers are used to track either a single inventory or all the stocks in your portfolio. If you yet look at a stock arena program, you plans to see stock quotes and other information running horizontally along the bottom of the screen. This is a stock market ticker.

Stock market tickers provide not just stock quotes but furthermore business to hear as well. Stock tickers usually run horizontally from left to right. Some of the availability information on the stock information could be the last price of the stock,whether the last values is up or down and the volume of shares traded of the stock. Most tickers have numbers and letters running across them. the numbers represent the current stock price and the letters usually denote the supply symbol.

Stock market tickers can display the supply information of one supply or a large amount of stocks. It depends on how you customize the supply ticker.

The purpose of a stock ticker is to give out news and stock quotes about a some stock or a collection of stocks. stock tickers today are online stock tickers or electronic stock tickers. They are displayed on your computer, in the internet or on television, usually over a banking or business program. You can download a stock ticker program to your computer.

The first stock market tickers were manual and printed out stock info on a thin strip of paper referred to as a ticker tape.However stock tickers are electronic today. A stock market ticker is a exceptionally useful tool for trading stocks and making money

stock market software

Are You A Stockaholic?

Today's society gives special recognition to alcoholics, sexaholics, binge-aholics, shopaholics, chocaholics and other "-aholics". What about stockaholics? Stockaholics are people who are overly obsessive roughly the supply market investments.

As approximately 50% of U.S. households directly or indirectly invest in the stock market, it is likely that there presently exists a goodly total amount of undiagnosed stockaholics.

Are you a stockaholic?

To find out if you are a stockaholic key Yes or No to the 10 very brief questions below ...
1. do you check your stocks every day?
2. are you depressed on weekends, because the market is not open?
3. do you hate to go away on vacation because you is planning to be out of touch with the market?
4. do you subscribe to a greater number of than 3 banking publications?
5. do you dream regarding stocks?
6. do you daydream around making a killing in the stock market?
7. do you think your availability broker is your best friend?
8. have you tried different stock market strategies, only to find out they didn't work?
9. do you wish you could steadily beat the market?
10. do you wish you am able to make more money in the inventory market?

If you answered yes to all or most of the questions you are a stockaholic ... or a very good investor. If stocks are interfering with your ability to enjoy life ... or if you are not making adequate money in the stock market ... get help.

stock market

What is the Stock Market?

Are you wondering how the inventory region is and how you can revenue based on it? So are a large amount of others, right here is a quick overview.

The inventory sector is at which stocks are traded. In state of affairs you do not knew particular firms aide you to buy portion of the firm and these kinds of pieces of the firm are labeled shares of stock.

The availability turn over takes place on a large amount of inventory exchanges the two larges exchanges are the New York Stock Exchange (NYSE) and the National Association of Securities Dealers Automated Quotation System (NASDAQ).
Typically stocks depleted to be traded at one whole location called Wall Street that is in New York City in the United States, but now a single person in a computer can clearly buy stocks and now computers do a lot of the struggle faced in keeping track of who owns how inventory and how that much the own.

The availability industry is not anything new though, in truth in 1602 Dutch East India Company listed the beforehand share of availability on the Amsterdam Stock Exchange.
I pray you suffer learned somewhat new just about the availability industry and hopefully you suffer concluded to discover funny things just about the current essentially popular speculative system the current is attributed to generating a lot of today's fortunes.