losses at Stock Research

American motorcar giant Ford Motor Co. has informed today, that volume of manufacture in 4th quarter of 2006 in Northern America will decrease on 21% in comparison with this indication for the same period of the last year. Thus, last 3 months of current year the company will let out on realization on 168 thousand cars less, than year earlier. The volume of manufacture on results of 3rd quarter will decrease on 20 thousand cars in comparison with the same period of 2005. On results of 2006 the volume of manufacture of Ford will decrease on 9% in annual calculation, informs Associated Press.
“This is heavy decision which will affect our employees and suppliers negatively. On the other hand, it is unique a true step from the point of view of long-term prospects”, - the general director of concern Bill Ford has declared.
Earlier in some American mass-media there was information that on a background of chronic losses of Ford also has made a decision on the further reductions of the personnel: nearby 6 thousand persons, mainly management will lose the workplaces in the near future. It will allow Ford to cut down expenses on the salary to employees for 10-30%.
On July, 20th 2006 Ford Motor has unpleasantly surprised investors, having informed about quarter losses, that the majority of analysts predicted profit. And in 2 weeks the company has recognized, that the size of losses has appeared almost in 2 times more, than has been specified in the financial report - 254 million dollars, or 14 cents in recalculation one stock, instead of 123 million dollars, or 7 cents on the stock. Thus the sales volume was reduced to 7% in annual calculation, and proceeds - on 6%. Ford has explained revision of parameters by increase in annual charges on reduction of pensions: instead of the dollars planned 1 billion the corresponding program will cost the companies 1.2 billion dollars.
In the last half of a year Ford has closed 14 automobile factories and than 30 thousand employees has been dismissed in Northern America within the limits of the scale of plan of re-structuring which has been accepted in the end of 2005.

Now I am trying to choose the market where I can try to speculate. I ask all my friends and many of them advise me to try to speculate at FOREX. Here I write the summarizing of all advices about the trade at FOREX.
You should be morally ready to probable losses of committed finances. All participants in gamble in market FOREX are divided on two big groups depending on that approach to FOREX which they profess.
 The first group - the people wishing fast to take the maximum profit on committed finances without essential time temporary, intellectual both financial expenses, and evaluating FOREX as something similar to game in a roulette in a casino.
The second group - the people suitable to FOREX as to the serious financial market, deeply studying the theory and ready to spend is a lot of time and efforts to learn correct work in this market, and with the course of time to start to earn essential and, the most important, stable profit. Thus it is necessary to understand that FOREX in this sense it is very flexible and gives a field of action both for those, and for others. The spectrum of probable results is very great. At successful coincidence of circumstances it is possible, not possessing even elements of the market to double an ownership capital for 1 day. On the other hand, for large financial institutions in the West comprehensible yield in this market is the level of 20-60% per annum on the invested capital. These are two poles in possible strategy in this market. The game approach allows earning fast lump sum, but sustains risk of instant loss of all funds and has no long prospect. The market approach allows earning at the certain persistence decent money with limited enough risks. And before entering the market you for it should define, to what of poles you will be closer during the work.
Define in advance, that you wish to receive from the market, for what term, with what expenses and risks. Depending on the selected strategy of game on FOREX you should define for yourselves that time with which you are ready to allocate for studying market FOREX. At desire quickly to earn it is enough to study one book in the size in 200-300 pages, containing substantive provisions and concepts of market FOREX, and to start the beginning of operations. Thus the probability of a prize will change about 50% and to tend to downturn at increase in quantity of operations. More serious approach demands initially studying of a maximum quantity of an available information for full understanding of all bases of the market, available tools and methods of the analysis and forecasting of the market which can raise quality of your trade. Unnecessarily in the trade to use all existing ways and methods of forecasting and the analysis, but their knowledge and skill to apply them will allow to develop as much as possible effective system of the trades without which successful long trade is simply impossible.
Find the greatest possible quantity of time for studying the theory before the beginning of practice. It is necessary to find also in the life any part of time directly for participation during trade. Quantity of spent time for acquaintance with the current information, forecasting of the market, the analysis of own results more often in direct ratio received profit. Rash operations seldom enough lead to notable positive results. And even the earned profit at absence of the analysis and systematization in work is quickly lost in next transactions. Thus, all again depends on time.
The major stage before decision-making on the beginning of real game in market FOREX is definition of the size of money resources which you are ready to risk for reception of profit. Any speculative market, and market FOREX in particular, is interfaced to risk of loss of the committed finances. Therefore never put in game more money, than you are ready to lose. Possible losses (from which are not insured even professionals) should not become for you a financial trouble. Do not play on extra funds or for last means postponed for “rainy day”. Market FOREX far not that place where it is possible quickly and without problems to increase greatly a seed capital. It or risky game for the people possessing free money and ready is painless for them to lose, or long and laborious work on purchase of the skills capable in the future to bring the essential income on the invested capital. Therefore primary you should are morally ready to loss of means and to define that sum of funds which loss will be rather painless for your budget. Probably, it also will not occur, but to realize such opportunity better in advance, than to receive financial both psychological impact and feeling of desperation after already it is impossible to correct anything.
After you all the same have made a decision on test of the forces in market FOREX, the major stage becomes a choice of the partner or, easier speaking, the broker through whom will pass your operations. Even at brilliant possession of the theory and practice of the market the certain moments in activity of the intermediary between you and the market can reduce “on there is no” all your efforts and even to serve as the reason of losses. Therefore, before to begin trade, it is necessary to spend the certain efforts to a choice of the good partner. For this purpose it is necessary to collect more information on brokers working in the market, on their financial conditions and reputations. Various brokers offer commissions differing from each other, spreads, percent and the software for trade. The size of the commission, a spread, speed and convenience of the program, and also quality of the offered information on the market can render huge influence on an end result of your work. However, attractive financial conditions by all means should be combined with good reputation and long for works in the market. Otherwise even the earned funds can be for ever lost because of untidiness of the broker that is not for today such unusual occurrence.
At a choice of the broker, besides acquaintance with financial operating conditions, it is necessary to familiarize and test by all means the software which becomes the tool for execution of your will in the market. Different brokers offer their own programs written in different languages and possessing a different degree of speed, reliability, convenience and a various tooling of the analysis. Practically all intermediaries suggest to take advantage of their programs in a demonstration mode, and some people by means of them and to participate in free-of-charge competitions with monetary prize-winning fund. It is desirable to try for comparison some similar intermediaries on offered conditions. Necessarily spend not less than month for game in a demonstration mode, combining it with studying the theory of the market, testing the received knowledge in practice. It will allow you not only to check up quality and convenience of the software, but also you to check up more and more time necessity of the introduction into game on real money. Quality of work of the program and the personnel of the intermediary in a demonstration mode in many speaks about what quality can receive final service, having opened the real account. Constantly analyze results of own work and quality of service. A unique major condition in a demo-game is that with virtual money you should try to address also carefully as with real. Frequently game in a demonstration mode can force you not only replace the prospective intermediary, but also in general to make a decision on undesirability of your participation in game in the financial markets. Far not each person is capable to work successfully in the financial markets: the clear intellect is necessary for this purpose, endurance, skill to risk still more many other individual qualities.
During demonstration trade try to define precisely those tools and information sources which you will use at decision-making on fulfillment of transactions. Also, even prior to the beginning of real trade, it is necessary to define tactics of fulfillment of transactions. As you will often open positions, how much long you will hold the open positions in what the moments will make transactions, as well as in what size you will limit possible losses under the transaction, what part of the capital will use at fulfillment of each separate transaction - all is questions, answers on which will render very essential influence on end results. Besides allocate from huge weight of sources of the information and indicators of the market for itself what, in your opinion, are reliable and correspond to chosen tactics. In language of professionals it refers to as development of own trading system. In fulfillment of financial operations the order and complexity is necessary. The intuition and feeling of the market, undoubtedly, are an important point in decision-making, but they should not be principal causes for fulfillment of the transaction at all. Having developed the certain system of trade, it is necessary to recede from it only in the extreme cases. It is necessary to analyze constantly results of own system, to bring corrective amendments and constantly to improve it. Chaotic trade is a direct way to loss of the committed finances.
Starting real trade, it is necessary to understand firmly, that game in a demonstration mode or as speak, “on a paper” very essentially differs from real game on “real” money. The difference is comparable to sensations of the same sportsmen on training and in the world championship. At real game each movement of a rate is expressed in quite concrete sum of your means, and it puts huge psychological pressure upon the person. Even quite successful players at the slightest failure can lose a head and ability to sober thinking and the analysis. But also excessive euphoria from the received prize can play with you a malicious jest.
Develop own system of successful trade and strictly follow it. Having chosen trading strategy and tactics, having developed own trading system, do not wait, that 100% of transactions become profitable. Any professional makes both profitable and unprofitable transactions. It is important, that the quantity and total result of profitable transactions exceeded the same parameters unprofitable. The best professionals approximately only in 70% of cases reach positive result under the transaction. The profit earns during the long period of time at the cost of excess of the size of the total income over losses. Therefore the individual unprofitable transaction should not upset and unsettle you. You only should analyze closely the reasons which have led to losses and to improve own system of trade in due course to achieve stable growth of results.

The manufacturer of cars Hyundai Motor Co largest in South Korea does not plan to buy British Jaguar, belonging to Ford Motor Co. Representatives Hyundai today have informed on it. As they said, the company considered an opportunity of purchase of any automobile brand of a class luxe, and among applicants was Jaguar, however later these plans has been decided to refuse in favour of increase in volume of manufacture at factories Hyundai outside of South Korea. Now Hyundai except for the factories located in South Korea, has factories on manufacture of cars in the USA, China, India and Turkey, informs Associated Press.
On August, 2nd 2006 in a number of the American mass-media there were data that American motorcar giant Ford Motor Co. considers an opportunity of sale of division on manufacture of cars Jaguar and of some other divisions which maintenance is unprofitable to the company. Among them also are financial division Ford Credit. Under the same data, on a background of chronic losses management Ford Motor reflects on creation of an alliance with other motor-car manufacturers by an example of other leader of the American car industry - General Motors which negotiates for cooperation with Renault and Nissan. Official representatives of the company refuse to make comments on these messages.

British Internet-book-maker BetOnSports Plc. has declared today, that stops reception of rates from the American clients. As they say in the message of the company widespread today, representations in Costa Rica and on Antigua Iceland in Caribbean Sea, worked on the American market, will be closed in the near future.
The company could not register business in territory of the USA as the American laws forbid the Internet-totes. In opinion of analysts, closing of the American business actually means the end of the company as three quarters of its proceeds and 95% of profit fall to the USA, and expansion of operations in Asia and the Europe hardly compensates huge losses.
The decision was accepted after on July, 17th of 2006 in Texas on charges in swindle executive director of the company David Karruters has been arrested. According to consequence, illegal reception of rates has allowed BetOnSports to avoid taxes to a total sum more than 3 billion dollars. Next day stocks of BetOnSports have been removed from the trades at the London stock exchange, and thousand clients of the company have demanded immediately to pay money due by it. BetOnSports declares that they are ready to pay, but time is required to the company to convince banks to defreeze actives.
The general turn of the industry of gambling on the Internet is estimated in 12 billion dollars a year. The leader of the market is British PartyGaming Plc., rendering services of the Internet-poker.

The American court on affairs of bankruptcies has approved the plan of refinancing of a duty of airline Northwest Airlines. Judge Alan Gopper has approved intention of the company to refinance an existing duty at a rate of 1.13 billion dollars and to receive an additional loan in 250 million dollars owing to what the airline becomes more liquid. Refinancing will help Northwest Airlines to save nearby 34 million dollars a year from payments on percent and 900 million dollars more for repayment of debts to 2010. The fifth on size airline of USA Northwest Airlines has declared the bankruptcy on September, 14th 2005. Its pure losses on results of 2nd quarter of 2006 have increased for 22% - up to 285 million dollars in comparison with losses at the rate of 234 million dollars fixed for the similar period on year earlier.

Yesterday I spoke with my friend who speculates at Forex. I’ve asked him give me several good advices that I can follow.
In this post I have made attempt to generalize his numerous answers in this occasion. At once I wish to make a reservation, that if someone will consider necessary to criticize or argue, it will be only welcomed.
So, let’s move under the order:
1. A choice of strategy.
It will be not necessary to be scattered on studying of all techniques which come across to you, and after acquaintance with several techniques stop only on one and study it as it is possible more in detail.
Yes, for the beginning it is necessary to master only one technique, one reception and if it to turn out, the success in your trade will take place.
Ultimate goal of our stay in the market is reception of profits, instead of research of various strategies
To be defined, what to choose for the beginning happens difficultly enough, therefore choose, that is better clearly and simply in recurrence (realization).
Is better, for the beginning to use strategy of following for trend - they are more simple and are clear in realization.
2. It is necessary to learn to wait.
In trade we not always realize it with our initially limited arsenal of receptions and we aspire at convenient, inconvenient in general any case to hold a position, in hope to receive profits. The real greater movements in the market happens not so much here again first of all certainly it is necessary to catch them, then to receive profits. And if you have received profit it is necessary not to lose it. For this purpose it is necessary to choose the successful moment, i.e. easy and not hurrying up to define the situation in which you can apply your strategy and only after that to enter into the market.
Needless to say that such moments can take place not every day and consequently probably most difficult it patiently to wait.
3. It is necessary never to catch up with a situation.
It happens that you see on the monitor, that the market has moved without you. It is insulting and annoyingly, for non-realized opportunities. But here is better to have patience and wait a following opportunity. Otherwise you risk joining movement on its most peaks, to receive recoil and accordingly losses.
4. Now about losses.
With them it is necessary to be defined at once, i.e. to define which stop-loss you expose at once at opening a position.
You begin a demo-account with that sum with which will start to work in real. Do not take a great interest in greater stops, find “golden mean”. Too small stops will work is more often, and too it will be more difficult to compensate greater, in the general result and on another it is possible to lose the deposit. Therefore stops should be in each case should be proved.
The attitude to losses if they have been planned should not be negative, is better to perceive it as the next occasion for reflections and improvements of the methods.
5. Be especially intent after greater successes.
More often after the big success greater mistakes turn out very often. The trader tries to repeat the success - but the situation any more has no, all is mistaken, tries to recoup quickly… in general successes are brought to nothing, and is even worse if to losses. If feel uncertainty after the received big profit, wait this moment is better. Emotions overflow you, and in trade they only stir.
6. When you in the beginning of a way never count on money received on Forex - nothing to turn out.
In this case it is additional emotional loading which will prevent to make only correct trading decisions. It is necessary to be very much and very quiet trading on the market, for example as a boa. Therefore firstly you should have an additional source of earnings on which you can eat and drink, and also periodically fill up the deposit - yet do not learn
7. Rest.
Rest is an integral part of activity of the trader, especially on becoming. If you consider that it only in vain spent time, it not so. By the experience my friend can tell that many interesting and serious decisions to him came just at that time when he had a rest - on holidays, in the country, on the journey, etc., or after rest, i.e. ‘with a clear head’. Therefore rest as well as work is necessary for planning, too.
8. The attitude.
Think about trade as a serious work, as well as in any work where application of special knowledge is required. First of all it is necessary to seize this knowledge. Receive special skills and only after that start to work. Do not transform the activity on Forex into hazardous entertainment

This post is just a very little more advice about trade at the Stock exchange that I could collect.
1. Always pay more attention to behavior of the market and formation of price models, than to target levels and areas of support/resistance. The last can often cause that your correct opinion concerning the market will change prematurely.
2. When you feel, that it is necessary to take actions - either to open a position, or to leave it, - take actions immediately.
3. Never act against own opinion in occasion of a long-term trend of the market. In other words, do not try to sit on two chairs.
4. Advantageous positions, as a rule, have positive reassessment from the very beginning.
5. The correct choice of time for opening a position and an output from it (for example, a choice of the moment of an input on the basis of convincing price formations, an immediate output at the first sign of failure) can often save from greater losses, even if a position is unprofitable.
6. Intraday time decisions are almost always incorrect. Be not engaged in intraday time trade.
7. Necessarily check the markets before closing on Friday. The situation is often visible more clearly by a weekend. In similar cases the best price of an input or an output can be usually received before closing on Friday, than at opening a stock exchange on next Monday.
8. Dreams about the market can quite form the basis for actions (when memoirs on them unambiguously). Such dreams often come true, as they represent your subconscious knowledge of the market which makes the way through the barriers established by conscious thinking (for example, ” As I can buy here if I could open a long position on $2000 below last week? “).
9. You cannot have immunity from bad trading habits. The best that you can make is to suppress them. Day and negligence will quickly lead to their returning.

Today I’d like to analyze financial positions of several world-known companies such as Intel Corp., Motorola Inc., Apple Computer Inc. and American AMR Corp. To my mind this information will be useful for each investor and will help him to make prognosis.
Net profit of the largest in the world manufacturer of microchips (corporations Intel Corp.) on results of 1st half of 2006 year has fallen to 46.8 % and has made 2.24 billion dollars. A year earlier it has made 4.22 billion dollars. Such data contain in the financial report of the company that has been published today. Proceeds of Intel for first six months 2006 has decreased on 9.2 % - up to 16.95 billion dollars, whereas in 2005 this it has been fixed at a level 18.67 billion dollars. Operational profit has decreased on 50.9 % - up to 2.79 billion dollars instead of 5.68 billion dollars in 2005. The profit before tax has decreased on 47 % - about 5.91 billion dollars up to 3.13 billion dollars.
Net profit of Intel on results of 2nd quarter of 2006 has decreased for 56.6 % and has made 885 million dollars In April-June 2005. The net profit of the company has made 2.04 billion dollars. Proceeds for accounting quarter have decreased on 13.2 % - about 9.23 billion dollars up to 8.01 billion dollars. The Operational profit has decreased on 59.5 % - up to 1.07 billion dollars (in comparison about 2.65 billion dollars year earlier). Profit before tax in 2nd quarter of 2006 has decreased for 54.5 % - about 2.75 billion dollars up to 1.25 billion dollars.
Oh, it’s the bed information for shareholders of Intel…:(

Net profit of one of the leading world manufacturers of mobile phones American Motorola Inc. on results of first six months 2006 has grown on 27.4 % and has made 2.07 billion dollars in comparison about 1.63 billion dollars a year earlier. Such data contain in financial report Motorola published today. The Sales volume of the company in the 1st half of 2006 has grown on 26.6 % - up to 20.48 billion dollars in 2005. This criterion has made 16.18 billion dollars. Operational profit for the accounting period has grown on 30.7 % - up to 2.37 billion dollars in comparison about 1.81 billion dollars year earlier.
Net profit of Motorola in 2nd quarter of 2006 has grown on 48.3 % - up to 1.38 billion dollars instead of 933 million that have been received in April-June 2005. The Sales volume has grown on 29.4 % - up to 10.88 billion dollars in 1st quarter of 2005. This criterion has made 8.41 billion dollars. Operational profit has grown on 58.9 % - about 958 million dollars up to 1.52 billion dollars.
Geronimo! I like products of this company and I am unfeignedly glad to its achievements :)

Net profit of the American manufacturer of computer techniques Apple Computer Inc. for the first 9 months 2005-2006 has grown on 59.9 % and has made 1.45 billion dollars. A year earlier this criterion has made 905 million dollars. Such data contain in the financial report of the company published today. Sales volume of Apple since October 2005 till June 2006 has grown on 41.2 % - up to 14.48 billion dollars in comparison about 10.25 billion dollars year earlier. The operational profit has grown on 49.8 % - about 1.23 billion dollars up to 1.85 billion dollars.
Net profit Apple in 3rd quarter of 2006, which has come to the end on July, 1st 2006, has grown on 47.5 % - up to 472 million dollars instead of 320 million the dollars received on year earlier. The Sales volume for accounting quarter has grown on 24.1 % - up to 4.37 billion dollars Year earlier this criterion has made 3.52 billion dollars. Operational profit has grown on 32.6 % - about 427 million dollars up to 566 million dollars. Growth of financial parameters Apple has been reached in many respects owing to successful sales MP3-players iPod and computers Macintosh on the basis of processors Intel.
My congratulations to company! It’s always pleasant to achieve a success!

Net profit of the American AMR Corp., the parent company of the largest air carrier in USA American Airlines, in 2nd quarter of 2006 has grown in 5 times and has reached 291 million dollars against 58 million dollars year earlier. Such data are presented in the report of the company published today. Proceeds of AMR for the last quarter of 2006 has made 5.98 billion dollars, on 12.5 % having exceeded a criterion in 5.31 billion dollars for the similar period of 2005. Analysts predicted proceeds at level 5.93 billion dollars.
Successful activities, according to representatives AMR, are caused by a significant sales volume and the high prices for tickets which have helped the company to overcome negative consequences of a rise in prices on fuel. The company finishes in plus works the second quarter successively. Prior to the beginning of 2006 AMR 22 quarters reported about losses.
Such great results!!! Let’s keep that up! :):)

    The majority of people profit only by their own mistakes. And I am not an exception more often than not.   

    But when it comes down to your money and your well-being (especially the well-being of your family) you have no the right to make a mistake. That’s why I decided to familiarize with advices of other traders. Now I want to impart the most important and useful (in my opinion) advices to you.
  1. You should focus on trade on long-term positions, because they usually are more profitable. The mistake of many traders is that they try to catch short-term market fluctuations and overlook the main price development.
  2. If you believe that exist long-term trade possibilities, do NOT try to wait till somewhat better price to open a position.
  3. The opening of any long-term position always should be well planning and thought-out. You cannot do it without cogitation. Do not give in to impulse.
  4.  Place orders, determining its levels with the help of daily analysis. If the market doesn’t approach to wishful level of opening deal write down the trade idea. Then revise it daily until the position will be opened or trade idea stop to seem attractive to you. Incapacity to conform to this rule may lead to omission of good penny-worth. It’s a wide-spread situation: traders remember about trade idea when the market has already gone from supposed price of the beginning of deal. And afterwards it would be difficult to consummate transaction at worse price.
  5. If, when you look at graph, you have instinctive impression you should follow it!
  6. Fact, that you have missed sizeable part of new trend, shouldn’t hold you back from using it.
  7. More often than not use at best instead of limit. It is especially important when you close sacrifice position or open a position concerned with favourable opportunity for long-term deal.
  8. Never increase a position close to initial entry point to trade after the market has already been on favourable for your position territory and has return to initial prices.
  9. Decide about the level of safeguard stop at the moment of opening of position.
  10. Disaffiliate with any deal if newly formed price models or market behavior are opposite to the direction of your position (even if the stop point doesn’t reach).
  11. In any case immediately close the deal the moment its initial suppositions are getting broken.
  12. If during the first day of your trade it become obvious, that you are fundamentally not right you should immediately close the deal.
  13. Do not relax while having the open position.
  14. Fight against temptation immediately return to the market after fixation of losses during the fulfillment of safeguard stop.
  15. When trade is bad:
   • Reduce dimensions of position;
   • Use close safeguard stops;
   • Do not hurry with the opening of new positions.
  16. When trade is bad reduce risks. Liquidate unprofitable positions instead of profitable ones.
  17. Do not change methods of trade after profit earning.
  18. Avoid holding too many open positions at the moment of publication of important economic data or governmental statistics.

So, today this is all advices that I have found, but I will try to search more…:)

Yesterday, when I wrote my last article I had a brain-wave. Perhaps common stocks aren’t the best asset to invest money. And I decided to investigate a question about investments in such securities as stock index futures…
As far as I understand investments in stock index futures are similar to investments in weather futures. You should forecast. And your profits or losses depend on your ability to make good prognoses.
It is necessary to remember that the subject of an agreement of stock index futures is purchase and sale of portfolio of stocks; stocks that go to make up this stock index.
Stock index futures show the dynamics of the stock market or its part (for example, S&P and Dow Jones Transportation Average).
As with ordinary future contracts stock index futures can be used as instruments of speculation or hedge buying.
The example of speculative operation with stock index futures can be:
You have $100000 and the forecast is that the index S&P will grow. Let us suppose that the margin requirement is 5%. Dynamics of index (during the position is open) is: 1230
1245
1240
1256
1270
1263
1275
Price of future contract (when we open position) is: 1230*$500=$615000, margin requirement is $30750, so we buy 3 future contracts. The results of this operation per day are:
1st day: (1245-1230)*500*3=$7500 (profit)
2nd day: (1240-1245)*500*3=$7500 (loss)
3rd day: (1256-1240)*500*3=$24000 (profit)
4th day: (1270-1256)*500*3=$21000 (profit)
5th day: (1263-1270)*500*3=$10500 (loss)
6th day: (1275-1263)*500*3=$12000 (profit)
The payments under the stock index futures clear each day the position is open. And if you bear losses you should insert money on your margin account.
The result of our operation is: (1275-1230)*500*3=$52500!!!
So, to my mind it’s very profitable activity to invest your money in stock index futures:).

This page is generated by Wpkeys plugin