japanese at Stock Research

The USA has the largest share market in the world. And though for some years (in the end of 80th - the beginning of 90th years) it has yielded precedence to the Japanese market, nevertheless it has regain positions after crash of the Japanese market after earthquake in Osaka. Ordinary stocks in the USA have no face-value. Other feature of actions of the USA is that their holders usually do not receive preemption right when the companies issues additional stocks.
If the company wishes to issue stocks for the public circulation, it should address in the Commission under securities and stock exchanges and to carry out of strict obligations on disclosing the information which continue to operate and in the further. Even the method of preparation and representation of the financial reporting stipulates in these rules. Until recently the Commission negatively concerned to dual listing of securities on a myriad of the stock exchanges organized on all country. These stock exchanges (all of them are authorized by the Commission) have no exclusive right on trade. And operations on over-the-counter market are widely widespread at them.
Many stock exchanges have kept the adherence to a trading hall in which brokers conclude transactions face to face. In addition to trade in a hall of a stock exchange are equipped by computer systems (at New-York stock exchange such system refers to “Super pillbox”), and at them so-called “transactions by phone on the top floor” for large share holdings also practice. Stock exchanges also often use “expert” who partly is engaged in regulation, and partly acts in a role of the main trader, and only one expert is engaged in each securities. However the growing North American association of dealers under securities (NASD) by means of the system of automatic quotations has created a special market niche especially for stocks of the hi-tech companies and technically it is considered organized over-the-counter market. There is a requirement of bodies of regulation concerning all intermediaries in the USA - they should aspire to the conclusion of the transaction under the “best” price which is available in a network of stock exchanges of the USA irrespective of, whether local it is the market or not.
In the general opinion, the market of the USA is the most adjustable according to the legislation originally put into operation in the beginning of 1930th years. In this market extremely strict control measures are applied concerning its all participants at their admission on the market and carrying out of operations on it. Access of commercial banks to trade in securities is still limited by Glass Stigl Certificate which does not allow concluding to banks the transaction on the goods and securities of the same companies.
Calculations are usually made for the third working day after day of the conclusion of the transaction (T + 3) on the basis of everyday execution through usual bank system.

Japanese motor-car manufacturer Honda Motor Co. plans to begin manufacture of planes. As Associated Press informs referring to anonymous sources in the company, reception of orders will begin already in the end of 2006. Earlier some American mass-media have published the information that Honda is going to debut in the market small business-planes. Representatives of the company yet do not give official comments in occasion of these messages. We shall remind, that development compact business-planes Honda has started still in 1986, using the engines given by other manufacturers. In December 2003 Honda Motor Co. has successfully finished tests HondaJet - the new experimental plane of a business class. HondaJet, equipped by turbofan engines Honda HF118, represents the first developed Honda the plane (the occupancy is 4-8 person), on whom the engines created by the company are established.

When I tried to find as many as possible advices of different traders I stumbled across the story of a trader. To my mind this story is the best illustration of that things or that behavior you and I shouldn’t repeat. As I have already said we MUST learn wisdom by the follies of others.
 Anyway… At that time (it was 1999) he had already trade a month (his initial capital was $10000). His results were quite impressive – 75%. All deals made a profit. If there was any unprofitable position he immediately closed it. He was too lazy to wait when they would become profitable. At that moment it turned up to him that “devilish” security with ticker tape KIDE. That day it had risen till $45. At the same time it had cost a week ago only $29. From personal experience he knew that in the near future prices had to fall. That’s why he opened a short position at $46. The security was cheap. He had about $17500х2=$35000 and sold 200 stocks.
 The price didn’t fall and quite the contrary rose till $50. Loss was 200х-5=-$1000. But the drop in prices was obvious. He sold in addition 200 stocks at the price of $50. In a few days the price was $63. He closed all other’s positions and sold another 200 stocks at the price of $61. He was sure that the price would begin to fall. And it really began…
 Before he had glance over the news about this company and knew why the rise of stocks took place. Famous Japanese corporation had agreed with KIDE that KIDE would be a distributor of licenses of this corporation for its invention POKEMON. The trader decided that this was a new computer knickknack, very useful, but not for a long time. And the fall of prices strengthened his confidence. But he was mistaken. After short-term fall till $55 the prices whirl upward till $70 and the next day till $80. He rushed to investigate what was the POKEMON and discovered that it wasn’t a computer knickknack it was a new-coined fictitious being. He understood about what licenses were said in news. The most powerful American industry went into the action. Manufacturers began to replicate actively this creature on T-shirts, badges, caps, etc… IT WAS A CATASTROPHE!!! Next day stocks rose till $90. His account was about ONLY $1000, his broker sent him margin calls one by another. The broker demanded extra money and threatened to squeeze.
My logic told to me that this marasmus wouldn’t continue for a long time. No earnings from sell of licenses were unable to justify such rise of stocks during the month for 300%! And he had only one hope that he wouldn’t squeeze until it came to the end. To find extra money was impossible. And where were guarantees, that the market wouldn’t eat up this extra money before began to correct. Really the stock-jobbing began to fall. The prices were about $70. But the market is inertial. The new wave of price rise began. And he was squeeze at the price of $88. His account was about $3000 and the broker allegedly did him a service, because the securities rose till $95. But from this point Stocks of KIDE began to fall. And after 3 weeks the price was already $45. And after month it was $20. He was right but he lost almost all his capital…
P.S. To restore his capital he needed 2 months, but he didn’t speculate with KIDE stocks.
To my mind this trader made several crucial mistakes:
• he hoped, but the market isn’t the place for hope;
• he was too greedy for money to stop when he had a chance not to lose.
I hope that I will never make the same mistakes!!!

This page is generated by Wpkeys plugin