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Topics - vivek042

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1
Introductions / New Friends / Why Can't We Be Right More Often?
« on: February 25, 2010, 04:31:52 AM »
Everyday seems to be the same as the last at the moment. No clear direction from the U.S., a very choppy and sloppy market, mixed results from our major blue chip companies and of course a barrage of information coming from all angles.
 
If it wasn't hard enough already you can factor in oil prices, gold prices, world economy, IRAQ and the list goes on. So who should I listen to and what should I read?
 
Well the answer is simple really...Yourself! No-one can predict with all certainty which way the market is heading and ultimately the market itself will be right in the end.
 
Learn to grasp what is happening in the world around you, and for me, try to avoid reading every article that crosses your desk. You have enough to worry about already!
 
As traders it is imperative that we keep our emotions under control and certainly learn to be patient. We always try to read and predict market movements and usually, with experience, you will learn to do this with more accuracy as time goes by.
 
But in uncertain times such as these we have to accept some of the results that we are dealt with from day to day.
 
We believe the ultimate test for all of us that wish to become successful at trading is to educate yourself, take the good from the bad and learn from our experiences so we live to fight another day.
 
Will you be successful? Well no-one can answer that. This will be determined over the longer term to see how you faired financially and of course emotionally.
 
Trading by nature does not suit all and I am often asked to sum it all up in one word what makes the end result profitable. My answer is simple and always the same........PERSISTENCE!
 
In the end the resilient will be successful regardless of their own short term results.
 

        Fortunate Management India

2
Introductions / New Friends / Share Market Basics For Beginners
« on: February 24, 2010, 08:27:25 AM »
When you come in contact with the share market, you are bound to come across stories of many fortunes which were made and later lost.
When one buys a share, it makes him or her partial owner of that particular company. There again are different types of shares. All these shares have different advantages and rights associated with each of them. Thus, when you buy a share and sell it at a comparatively higher rate, you earn yourself a profit. But in case the share price falls before you are able to sell it, then you incur loss. The market of shares depends on the business that you invest in. If the business you have invested in makes profit then you earn yourself a part of that profit dividend. You are always an anonymous part of the share trade.
If you are looking for a time tested formula to earn this profit on a consistent basis, then be warned that there are no such formulas in the trade. The only thing that you need to do is get an in-depth knowledge about the basics of stock trading. So, what does trading of stocks actually means? Well, it refers to the buying and selling of shares in the financial market. So, if you want to get started with trading, you will have to get in touch with a stock broker. This trading of shares can either be done on the exchange floor or through electronic trading.
Brokers can be found on the exchange floor and this is where they order the shares for you which you want to buy. Then, the floor clerk goes about locating the trader on the floor, also called the floor trader. The stocks that you want to buy are then purchased from the floor trader. The moment the price is agreed upon, you have your trading deal finalised. Apart from floor trading, electronic trading is also a common trading tool today. The electronic trading is considered to be a quick and efficient trading method. Though, even here you have a broker involved in between, but when it comes to confirmations, you receive them almost immediately afterwards.
Finally, your online broker will look to connect to the exchange network and look for an interested buyer or seller as per your requirements.

         Fortunate Management India

3
Introductions / New Friends / Technical Analysis Training
« on: February 22, 2010, 03:53:37 AM »
When traders embark on their technical analysis training voyage, they usually believe that the challenge will be to learn a lot of technical tools. And they usually seek out who they believe to be an "expert."
However the idea is to develop your own way of looking at the market, and to get comfortable with this vision, and with the patterns which you see, and to learn to identify them and to get comfortable with them so that you can repeat them over and over again.
The most important part of technical analysis training is really personal self-study and building personal awareness.
But whether you learn enough of another's vision or if you create your own from scratch, you can become comfortable with them to the exclusion of all others, and so you can follow your understanding wherever it leads, without listening to other voices and other inputs.
To become a really good trader you have to learn how to isolate yourself from outside influences. Remember that the world is reacting to energy terminations, and that the crowd of people will be at extremes when you are preparing to take action in the opposite direction. This means that you must be in a mental state such that you are able to do things that most people will not do, because they are afraid to act against the crowd, or they are unable to see the alternate course of action because they are asleep, and unaware of the reality of the market action that is unfolding. In our view the key to this optimal mental state is awareness + monitoring + -observing, and it is a specific and learnable talent.
Let us talk about the nature of probability, and its relationship to technical analysis training, and how to go about conducting research, and the need for such research, and the value it has for us as traders in terms of our financial outcomes.
The tools of technical analysis can be so accurate that it sometimes seems as if they are infallible. Some beginning traders start to think that every support will hold, and every trend termination is the time to jump in. Of course life is not that simple. If the market could be completely and accurately predicted in advance there would be no market, and computers could figure it all out. There would be no difference of opinion between buyers and sellers, and there would be no winners and losers and everyone would have the same amount of money. The market is infinitely complex and has the ability to do anything. It is pure in its simplicity, and the major difficulty is that our perception and interpretation is fallible.
Most people only rarely have sufficient awareness to note this simplicity, since our perceptions are usually clouded with various preconceptions and influences. But patterns do exist, and some of these patterns have a high potential for repeating themselves, since energy can and does repeat itself. The trick is learning how to tell when a pattern is holding, and how to tell when it is not holding. And furthermore, to learn how often a pattern will hold or break when viewed in a large sample size. The tools are accurate and effective -- but on a percentage basis. The odds are on our side, not the guarantee of success on any single trade.
The true key to technical analysis training is to do your personal research carefully so that you understand how the patterns that you see will act when considered n a large sample size.

4
Introductions / New Friends / Tips on When to Buy and Sell Shares
« on: February 19, 2010, 05:41:17 AM »
The main mantra of the share market is-"Buy low and sell high".
This is all that you need to keep in mind when you have to decide what the right time to get in and out of the share market is. This logic that you should always buy shares at the lowest price possible and then wait for the share price to go high so that you can sell them with a good profit margin no doubt makes sense. This what you need to know about how to buy and sell shares. But how will you find out when the market is overheated so that you can sell the shares and at what point in time it is down or bottomed out. This is where you have to give importance to monitoring the cycles of investment.Most of the times, the stock market tends to move in waves. When the market is doing well, the shares prices go up and the companies report increase in profit. This leads to the prospect of good economic growth and also a low rate of inflation and interest rates in the market. At this point in time the market is referred to as 'Bull Markets'.
On the other hand, when the market is down and the economy loses steam, it is referred to as 'Bear market'. But the main point that you need to know is how to find out what is the time when you need to sell out the shares or still hold on to them.According to experts in the business, there are three different stages in case of both the bear and the bull market. In order to maximise the return you can get from the shares which you own, you should know at which stage of the cycle you are in.
There are three stages in the upward phase which is the primary bull market. These are:
Accumulation
In this stage, the market hold much negativity. The shares here have very low value. In the long term, however, prices start to rise.
Big Move
This is the easiest stage to make money. At this stage, price reaches its peak across the board.
Excess
This is believed to be the most dangerous stage in share trading business. At this stage, people tend to get over confident and interest rates fall to the lowest level.
Thus, knowing when to buy and when to sell will help you get the maximum out of your money.
Fortunate Management India

5
Gup Shup / Why Should Trade in Stock Market Only?
« on: February 18, 2010, 09:24:22 AM »
There are no another trading instruments come even closely stock market , when its comes to liquidity ,24hr market requirement, last but not the least, profit potential.
There are also many other benefits and advantages of stock market Here are just a few reasons why so many people are choosing this market as a business opportunity.
Liquidity: stock market is so large and also extremely liquid This means that if you click a mouse, you can in stataneously but and sell at will. You are never "stuck" in a trade.
 
Leverage: Leverage gives trader the ability to make extraordinary profit and keep risk capital to a minimum at the same time.
Options : in stock there is lot of options are available , you can both buy and sell shares , if you feels insecure while investing you can go to govt. option . long term investments and short term investments are also options of investing plans .
Controlled by SEBI: all the investment activities are followed by sebi guidelines .
If you bear loss you can go on day trading option . Day Trading in Stock Markets is a highly profitable Business if you have definite plans and pre-determined strategies. you can earn regularly on every day in both rising and falling markets.
Generally Day traders buy and sell shares according to Day trading recommendations which they receive from Stock Market experts. As a day trader if you can identify the exact entry price level and exit price level of your recommended stocks in real time, then you can earn profits regularly on every day in any type of market whether it is either rising or falling.
Risks and losses are inevitable in Day trading. So you should learn to manage risks to avoid losses in Day trading. By understanding risks and learning to manage risks involved in Day trading, you can reduce the negative effects of risk on your Day trading results and by following risk management techniques, you can avoid losses in Day trading.
you can also enter into both long trades and short trades using Double confirmed minimum profit technique.
In long term trade you have to buy stock first ,then wait for some time till the price increases and sell it afterwards at higher price to make profit. but in long term trade if the price falls you will incur loss.
But short trade is different , you sell stocks first, wait for some time till the price falls and buy it afterwards at lower prices to make profit.
In both long trades and short trades, you will earn profit if you sell at higher price and buy at lower price.in case if your selling price is lower then buying price , you will incur loss in both long run trade and short run trade .
Every day you can enter into both long trades and short trades in your list of stocks basing on its real time price action. You can even enter into both long trades and short trades in a same stock at different times.
When all the general investors in stock market are crying and complaining about sharp falls in stock market, you can actually make more profits in sharp down falls and make more money in falling markets. In this way by using this technique, you can earn bumper profits every day irrespective of whether the markets are rising or falling.
Don't worry to think that you are small trader , A small Day trader on Day trading can also play long term on this market .


      Fortunate Management India

6
Introductions / New Friends / What moves share prices?
« on: February 17, 2010, 07:33:23 AM »
All in all, share prices aren't just prices moving up and down, up and down. They are a reflection of a company.
If you were interested in buying your local corner shop, you'd look at things such as management, if profits were improving and if there were competitors taking away market share.
Shares are essentially a share in a business and while it may not be your local corner shop, the concepts are very similar.
Underlying drivers of the business are important
Here's what famous investor Peter Lynch has this to say to investors:
"Well, they should think about what's happening. I'm talking about economics as forecasting the future. If you own auto stocks you ought to be very interested in used car prices. If you own aluminium companies you ought to be interested in what's happened to inventories of aluminium. If your stocks are hotels, you ought to be interest in how many people are building hotels. These are facts."
The point of the story is that investors should be aware of the underlying drivers which help or hinder a business.
Watch economic events closely
If an economic event shows a business environment that is favourable to companies making profits and growing, you'll usually see a positive reaction from share prices.
But if the economic event shows that company profits may fall, you will generally see share prices come under pressure.
If interest rates are low, employment high, consumer confidence high, then it will be relatively easy for businesses to make money.
But if interest rates are rising, employment is low. People then stop spending money and businesses make less profit. So share prices fall.
Market sentiment is important too
The share market is like any marketplace. If there are more buyers then sellers then prices will rise.
And if there are more sellers than buyers prices will fall.
Buyers drive up the price and sellers drive down the price. A perfect example of this is at the seafood markets. Normally prawns sell for around $25 a kilo. At Christmas time, prawns sell for about double. Why the big difference? At Christmas, the large number of buyers drive up the price of prawns. The seafood market, like the sharemarket, sees buyers drive up the price and sellers drive down the price.
In the end, the sharemarket is simply a market full of businesses. In the long-term, share prices are a reflection of the value of the underlying business.
You'll find that businesses that increase their profits increase their business value and share prices should eventually follow suit.
Happy investing!

       Fortunate Management India

7
Gup Shup / Is day trading right for you?
« on: February 16, 2010, 10:52:05 AM »
Is day trading right for you?


With the markets going up and going down every day you may be thinking about whether it's a good idea to take up 'day trading', but what is it and would it be right for you?
Day trading involves buying and selling shares on the same day. It is extremely difficult to do but if successful, the rewards can be substantial.
The flipside is that it is also extremely risky which means that you could see your capital wiped out very quickly.
It's easy to focus just on the potential profits to be made but most smart traders will tell you that day trading is all about risk management. The motto should be to plan for the worst and hope for the best. Your capital is the only thing that allows you to play the day-trading game. Without it there is no opportunity to trade. Unfortunately for most first-time day traders, they only focus on return and fail to preserve the one thing that allows them to play the market and that's their capital.
You want to have specific rules for entry and exiting positions. This is so that emotion does not get involved. Day trading is less about the "I want to make a profit" mentality and more about "Has there been a trigger for an entry or exit point." It's less about emotion and more about a plan for success.
And finally you will need to use tools. If you just rely on your gut instinct to trade stock then that's no different to gambling and you'd probably do better at a casino. Day trading is all about being about to anticipate where the share price is headed and when wrong to have risk management practices in place that protect your capital.
The most popular trading tools for day trading are charting or technical analysis tools. There are hundreds of indicators that you could use. The key is to choose ones that work for you and that means testing a system that works. You can buy ready-made systems but these tend to be very expensive. There are plenty of good books and I'd suggest that you start there, test your own system and then start with paper trading to build your skills.
In terms of choosing a broker, online brokers have made day trading accessible and quick. Most orders placed online hit the market in less than a second and Bell Direct has a 2 second placement guarantee which says that if your 'at market' order doesn't hit the market in 2 seconds, it is free – you don't pay any brokerage.

Fortunate Management India

8
Gup Shup / 10 Steps to Investing
« on: February 15, 2010, 05:01:18 AM »
10 Steps to Investing

1.   Review your current financial situation.
2.   Ensure you have adequate savings for unexpected circumstances.
3.   Ensure you understand the risk and reward involved in investing and spread the risk of investing by diversifying your portfolio.
4.   Ensure you understand the type of investment, the benefits and the risks of the investment you decide to agree to.
5.   If there are aspects you are not sure about or if you require advice contact an Independent Financial Advisor.
6.   Understand what charges you will incur.
7.   Check your investment performance on a regular basis.
8.   Keep documentation of your investments.
9.   Ensure you update your details if you change address/name.
10.   Use any tax breaks that are available to you such as ISAs.


Fortunate Management India.

9
Introductions / New Friends / Hello
« on: February 10, 2010, 11:24:46 AM »
hello dear friend h r you ?

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