Psychology of trading.

August 21st, 2006

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.

Philips promises at sale of the operation to return to shareholders 4 billion euro.

August 10th, 2006

Company Royal Philips Electronics undertakes to return to shareholders nearby 4 billion euro by the end of 2007 at sale of 80.1% of stocks of operation Philips Semiconductors which are letting out semiconductors. As it is marked in the message of the company, shareholders will receive money by means of payments of dividends and the return repayment of stocks, including already announced repayment of stocks on July, 17th 2006 for the sum of 1.5 billion euro.
As it was informed earlier, Royal Philips Electronics has agreed to sell 80.1% of stocks of the operation on manufacture of semiconductors to a consortium of private investors for 6.4 billion euro (8.2 billion dollars). The consortium included American joint-stock companies Kohlberg Kravis Roberts both Co. and Silver Lake Partners, and also Dutch AlpInvest Partners NV. According to conditions of the transaction, 19.9% of stocks of division will remain in property Philips.
As it is marked in press release of Philips, the company follows strategy on reinvestment of the capital for reception of additional profit, including through favorable purchases. For last 12 months Philips has declared 8 purchases in sphere of medical systems, illumination and public health services for which it has been spent 3.5 billion euro. The given investments have already been repaid at a rate of almost 1 billion euro. Philips also has confirmed intention to leave structure of concerns LG.Philips and TSMC. “With this transaction we have actually finished begun still in 2002 reorganization of the company with the purpose of creation of business steadier and bringing the stable income”, - was emphasized by the president of company Philips Gerard Kleisterlee. As he said, in this connection the name of the company will be changed on Royal Philips.
Gerard Kleisterlee has specified that resources Philips will be concentrated to public health services, needs in effective energy-saving decisions and increasing desire of consumers to improve style of a life. In opinion of the president of the company, all this will allow to redefine Philips in the company generating values, unlike historically developed image of the manufacturer of electronics.
Royal Philips Electronics of the Netherlands - one of the largest manufacturers of electronics in the world and the largest in the Europe. A sales volume in 2005 has made 30.4 billion euro. The basic line of activity of the company is care of health, style of a life and technology. The company is presented more than in 60 countries of the world and has 158 thousand of employees.

On what you should stop to trade with profit?

July 25th, 2006

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 :)

Forex. How not to become penniless.

July 20th, 2006

Forex, the greatest international market for currency exchange, is becoming more and more popular all around the world. A lot of people, though, take this financial phenomenon too easy, trying to get of it an inexhaustible source of wealth, notwithstanding that a lot of people have already lost their fortune trying to augment it.
So, how to escape this kind of lot? How to avoid common mistakes and stay profitable?
 

Let’s consider a man completely new to markets, trading and technical analysis, who has invested all his capital into currency trading. In his attempt to become rich and famous, he is always anxious about his capital, getting nerves and losing self-control every time when the market is against him, or when the trend is about to reverse.
The first thing one should do in order to become successful in foreign currency trading is to start working on self-improvement. Discipline is one’s key factor if one is tending to be a successful investor or trader. Thus, one should give away the thought, that life depends on profit/loss and stay cool whatever the market condition is – forget about money as money itself!
 

Let’s proceed further in our tiny research. Have you ever heard of a famous financier, who has made his fortune overnight, just having staked thoughtlessly? Neither have I. Even Geo. Soros had made a reasonable economic research before having decided that English Pound was underestimated and was worth buying. (That has made him very rich, by the way) So one should admit that currency trading is a hard job and it should be regarded correspondingly, not just as a hobby. One has to develop a reasonable trading strategy, be it simple or complicated, and follow it.
 

So what to begin with? First – start reading more. Read, read and read. There are numerous sources of information in the World Wide Web… Subscribe to the latest newsletters, read economic reviews and surveys, articles on technical analysis, follow the latest trends in the trading world. Broaden your horizons – the more intelligent you are – the more achievements are waiting for you.
Then invent your own strategy, as mentioned above. It might sound complicated, but everything comes with experience   Be always inspired. Do not let your faults bring you down, but try to stay disciplined at the same time.
You also have to make a choice, what kind of trader you are. If you are a long-term investor, you should try to follow the world’s leading financial agencies’ forecasts and advices.
If you see yourself as a short-term investor, working in high-risk environment of volatile currency market, you should devote more time to technical analysis studies.
 

If you feel that you are not so self-confident yet, you might find it comfortable for yourself to try a demo-account, a lot of market brokers nowadays provide their customers with this kind of service. In a demo account you operate with virtual money, which nevertheless allows you to get recent currency quotes from real market. Opening a demo account gives you a brilliant opportunity to work through your strategy and improve your trading tactics.
 

Anyway, let currency exchange market be your friend, do not be afraid of it. To the contrary - study it, and soon you yourself will be able to counsel on how to become successful in currency trading. Good luck!

Maybe it would be useful for you…

July 13th, 2006

While I looked for different interesting information for my blog I collected many useful links for me. And I hope it would be useful for you too…
Exchanges in different countries:
Australia
Australian Stock Exchangehttp://www.asx.com.au/
Sydney Futures Exchangehttp://www.sfe.com.au/
Austria
Vienna Stock Exchange: http://www.vienna-stock-exchange.at/ 
Azerbaijan
Baku Stock Exchange: http://www.bse.az/

Belgium
Brussels Stock Exchange: http://www.stockexchange.be/
Belgium Options and Financial Futures Exchange: http://www.belfox.be/
NASDAQ EuropeNASDAQ Europe 
Brazil
Rio de Janeiro Stock Exchange: http://www.bvrj.com.br/
Sao Paolo Stock Exchange: http://www.bovespa.com.br< TD>
Brazil Futures Exchange: 
http://www.bbf.com.br/
Commodity and Futures Exchange: http://www.bmf.com.br/ 
Canada
Toronto Stock Exchange: http://www.tse.com/
Montreal Exchange: http://www.me.org/
Vancouver Stock Exchange: http://www.vse.ca/
Winnipeg Commodity Exchange: http://www.wce.mb.ca/ 
People’s Republic of China
Peking Commodity Exchange: http://bcewww.cnfm.co.cn/
Shanghai Metal Exchange: http://www.sme.com/ 
Chile
Santiago Stock Exchange: http://www.bolsantiago.cl/ 
Czech Republic
Prague Stock Exchangehttp://www.pse.cz/ 
Columbia
Occidental Stock Exchange: http://www.bolsadeoccidente.com.co/
Croatia
Zagreb Stock Exchange: http://www.zse.hr/ 
Denmark
Copenhagen Stock Exchange: http://www.xcse.dk/ 
Ecuador
Guayaquil Stock Exchange: http://www.bvg.fin.ec/ 
Estonia
Tallinn Stock Exchange: http://www.tse.ee/
Finland
Helsinki Stock Exchange: http://www.hse.fi/
Finland Option Market: http://www.som.fi/
Finland Option Exchange: http://www.foex.fi/ 
France
Paris Stock Exchange: http://www.bourse-de-paris.fr/http://www.nouveau-marche.fr/
International French Futures and Options Exchange: http://www.matif.fr/ 
Germany
Germany Stock Exchange: http://www.exchange.de/
Bavaria Stock Exchange: http://www.bayerischeboerse.de/
Stuttgart Stock Exchange: http://www.boerse-stuttgart.de/ 
Great Britain
London Stock Exchange: http://www.londonstockex.co.uk/
Investment Exchange Trade point: http://www.tradepoint.co.uk/
International Petroleum Exchange: http://www.ipe.uk.com/
London International Financial Futures Exchange: http://www.liffe.com/
London Metal Exchange: http://www.lme.co.uk/ 
Greece
Athens Stock exchange: http://www.ase.gr/ Hong-Kong
Hong-Kong Stock Exchange: http://www.sehk.com.hk/
Hong-Kong Futures Exchange: http://www.hkfe.com/
Hungary
Budapest Stock exchange: http://www.bce-bat.com/ 
India
Indian National Stock Exchange: http://www.nseindia.com/ Indonesia
Jakarta Stock Exchange: http://www.jsx.co.id/
Surabaja Stock Exchange: http://www.bes.co.id/ 
Iran
Teheran Stock Exchange: http://www.neda.net/tse 
Israel
Tel Aviv Stock Exchange: http://www.tase.co.il/ 
Italy
Italy Stock Exchange: http://www.borsaitalia.it/
Italian derivatives market: http://www.borsaitalia.it/
Jamaica 
Jamaica Stock Exchange: http://www.jamstockex.com/ 
Japan
Tokyo Stock Exchange: http://www.tse.or.jp/
Osaka Stock Exchange: http://www.ose.or.jp/
Nagoya Stock Exchange: http://www.nse.or.jp/
Tokyo International Financial Futures Exchange: http://www.tiffe.or.jp/jpn.html
Tokyo Grain Exchange: http://www.tge.or.jp/
Latvia
Riga Stock Exchange: http://www.lanet.lv/business/rfb 
Luxemburg
Luxemburg stock Exchange: http://www.bourse.lu/ 
Malaysia
Kuala Lumpur Stock Exchange: http://www.klse.com.my/ 
Mexico
Mexico Stock Exchange: http://www.bmv.com.mx/ 
Namibia
Namibia Stock Exchange: http://www.nse.com.na/
New Zealand
New Zealand Stock Exchange: http://www.nzse.co.nz/
New Zealand Futures and Options Exchange: http://www.nzfoe.co.nz/ 
Nigeria
Nigeria Stock Exchange: http://www.mbendi.co.za/exng.htm 
Norway
Oslo Stock Exchange: http://www.ose.no/
Paraguay
Asuncion Stock Exchange: http://www.pla.net.py/bvpasa 
Peru
Lima Stock Exchange: http://www.bvl.com.pe/ 
Poland
Warsaw Stock Exchange: http://www.wse.com.pl/ 
Portugal
Lisbon Stock Exchange: http://www.bvl.pt/ 
Republic of Korea
Korea Stock Exchange: http://www.kse.or.kr/ 
Republic of South Africa
Johannesburg Stock Exchange: http://www.jse.co.za/
South-African Futures Exchange: http://www.safex.co.za/ 
Russia
Russian Exchange: http://www.re.ru/
Russian Trade System: http://www.rtsnet.ru/
Siberia Stock Exchange: http://www.sse.nsk.su/
Saint Petersburg Stock Exchange: http://www.spbex.ru/
Moscow Interbank Currency Exchange (MICEX): http://www.micex.ru/
Saint Petersburg Futures Exchange: http://www.futures.ru/ 
Singapore
Singapore Stock Exchange: http://www.ses.com.sg/
Singapore International Monetary Exchange: http://www.simex.com.sg/
Singapore Commodity Exchange: http://www.sicom.com.sg/ 
Slovakia
Bratislava Stock Exchange: http://www.bsse.sk/ 
Slovenia
Lublin Stock Exchange: http://www.ljse.si/
Lublin Commodity Exchange: http://www.eunet.si/commercial/bbl/bbl-ein.html 
Spain
Madrid Stock Exchange: http://www.bolsamadrid.es/
Barcelona Stock Exchange: http://www.borsabcn.es/
Bilbao Stock Exchange: http://www.bizkaia.net/Bizkaia/English/General_information/Economy/I3EBOLSA.HTM
Spanish Futures Exchange: http://www.meff.es/
Spanish Options Exchange: http://www.meffrv.es/
Valencia citrus and commodity futures market: http://drac.medusa.es/fcm/index.htm 
Sri Lanka
Colombo Stock Exchange: http://www.lanka.net/cse 
Sweden
Stockholm Stock Exchange: http://www.xsse.se/ 
Switzerland
Switzerland Exchange: http://www.bourse.ch/
Switzerland Financial Future and Options Exchange: http://www.bourse.ch/ 
Taiwan
Taiwan Stock Exchange: http://www.tse.com.tw/ 
Thailand
Thailand Stock Exchange: http://www.set.or.th/ 
The Netherlands
Amsterdam Exchange: http://www.aex.nl/
Association of options traders: http://www.otc.nl/
The USA
New-York Stock Exchange: http://www.nyse.com/
Stock Market NASDAQ: http://www.nasdaq.com/, http://www.nasd.com/
American Stock Exchange: http://www.amex.com/
Boston Stock Exchange: http://www.bostonstock.com/
Chicago Stock Exchange: http://www.chicagostockex.com/
Philadelphia Stock Exchange: http://www.phlx.com/
Coffee, Sugar and Cacao Exchange: http://www.csce.com/
Kansas City Trading Floor: http://www.kcbt.com/
MidAmerica Commodity Exchange: http://www.cbot.com/
Minneapolis Grain Market: http://www.mgex.com/
New-York Cotton Exchange: http://www.nyce.com/
New-York Merchant Exchange: http://www.nymex.com/
Turkey
Istanbul Stock Exchange: http://www.ise.org/
Venezuela
Caracas Stock Exchange: http://www.caracasstock.com/ 
Financial portals: 
http://www.cbsmarketwatch.com/ –on-line news, comments, results of trading, calendars, statistics.
biz.yahoo.com – the first portal in the financial sphere.
http://www.cnnfn.com/ – the quantity or information isn’t less as at the previous portals, but here are emphasized the main news.
Financial news:
http://www.bloomberg.com/ – unexcelled on-line news.
http://www.cnnfn.com/, http://www.cbsmarketwatch.com/, http://www.reuters.com/, http://www.ft.com/ – news of world agencies.
http://www.forexnews.com/ – news, comments, analysis of market, etc.
Financial institutions:
http://www.wcoomd.org/ – exact information  about all international economic and financial and credit organizations.
Quotations and graphics:
http://www.quote.com/ – real quotations of American stocks of all trading floor 10 minutes delayed.
http://www2.barchart.com/default.asp - a lot of quotations and graphics, analysis, comments and much other useful information.
http://www.saavycharts.com/ – great daily technical analysis of NASDAQ
Investments games:
http://www.etrade.com/cgi-bin/gx.cgi/AppLogic+gamestartpage – tournament of traders from E*Trade (real quotations 15 minutes delayed).
http://www.nasd.com/HeadTrader/head_trader.htm – imitation of work of market maker at NASDAQ.
http://contest.finance.yahoo.com/t1– Investment Challenge from Yahoo Finace (real quotations 15 minutes delayed).
http://www.virtualstockexchange.com/ – the same as the previous, but you have a choice to organize   your own tournament.
Others useful links:
http://www.americanbulls.com/ - commentary and data for all the securities in the North American stock markets.
http://www.mumbaibull.com/ - tips on investing in stock markets.
http://stockmarketonline.info/ – a good site if you want to invest your money online.
http://www.canadian-stocks.com/ - online financial resource about Canada.
http://www.quotelf.com/ - free historical stock, mutual funds daily quotes for US and Canadian markets.
http://www.valuenotes.com/asps/Fundas.Asp?Cat=F - finance, investments, investing company India, and much other information.
http://www.valuenotes.com/asps/marketalk.Asp?Cat=T - Indian stock markets index, finance business regulations, investors, derivatives, etc.
http://www.worldwidese.com/ - selected stock markets around the world.
http://www.stock-money-maker.com/ – here you can buy and sell stocks on a quantitative approach that has been back tested on a 20 year period.
http://www.angelfire.com/or/stocks/ - here you can find all of the strategies, insider tips, and trading philosophies necessary to conduct online trading successfully.
http://www.futurestech.com/default.htm - analysis of livestock, financial and equity futures markets…
http://www.investtrek.com/ - all useful resources to research and find information on stocks and mutual funds.
http://www.stockcharts.com/ - graphics and analysis of the major markets and sectors.
http://www.geocities.com/rodeodrive/mall/3087/ - stock market quotes, investments, trading, stock picks…
http://www.picapital.com.my/ - analysis and evaluation of stock…
http://www.metamarkets.com/ - discussing stocks, mutual funds, and investment strategy.
http://www.fun-e.com/ - a good laugh after a hard day dealing and trading on the stocks and equities markets.
http://www.concentric.net/~L77280r/DIARYHDG.HTM - a free Speculators Diary shows the investor / speculator…
http://www.stockmaven.net/ - stock research center, real time quotes and news, live financial markets data, research tools to evaluate and track stocks of publicly held…
http://www.ibchannel.com/channels/marketresearch/ - the markets and market mechanics, investment approaches, valuation techniques…
Also I want to propose such links as:
1) Day Trading
http://www.swingtrades.com/
http://www.absolutedaytrader.com/
http://www.rookiedaytrader.com/
http://www.daytraderfutures.com/
http://www.daytraderfutures.com/
2) Penny Stocks
http://www.daytraderfutures.com/
http://www.daytraderfutures.com/
http://www.pennystocks.net/
http://pennystockinsider.com/
3) General Investing
http://pennystockinsider.com/
http://www.investopedia.com/
http://www.investing-strategies.com/
http://www.investorguide.com/
 If you have others links you are welcome…:)

How to make money in the stock market…

July 11th, 2006

Investors buy stock for one simple reason: to make money. The surest way to earn money from investing is to create as di¬verse a portfolio as possible and hang on to it for a long time. To succeed at making money investors need good sources of infor¬mation.
Stockbrokers supply much information. They study market reports and get information on the forecasted financial performance of companies. Brokers usually recommend oppor¬tunities or provide special services such as newsletters. For this brokers charge additional fees.
Sometimes investors prefer to avoid high brokerage fees. They implement their own investment strategy. Serious investors sub¬scribe to investment newsletters and carefully study the stock market. Best investors become an expert in a particular industry.
A simpler investment strategy is to choose some reliable blue chip stocks and stick to them. This strategy is safe and can earn money over the long run. Investors should avoid making com¬mon mistakes, which are:
1) failure to diversify,
2) paying too much for a stock which would not go up,
3) not knowing when to sell a stock going down,
4) paying too much attention to ru¬mors and tips.
There are also several techniques of predicting the stock prices. Most investors begin with fundamental analysis, which is the process of comparing a company’s current financial position and future prospects with those of other firms in the same or different industries. Some investors usually called “chartists” try to identify a specific stock’s behavior charting it over time and then predicting its future price movement. Other investors be¬lieve that prices are random. The random walk theory is based on the assumption that future stock prices are independent of past stock prices. They choose stocks at random. A group of investors has adopted an unusual approach, contrarianism, which holds that the market will move in the direction opposite to that predicted by the general public. In other words, these investors do the opposite of what the general public does.

Trading stocks.

July 11th, 2006

Trading stock begins with an investor placing an order, which is informing the stockbroker as to what stock and how much he wants the broker to buy or sell. An order to buy or sell stock at the best possible price at the present time is called a market order. The broker conveys the order to an exchange member on the trading floor, who attempts to get a better price for the buyer by offering a little less. For example, the broker might offer 47 1/8 ($47.12.5) for the stock with a current price of 47 1/4 and see if someone will sell at this price. If the investor were selling, the broker would attempt to get a slightly higher price by offer
say, 47 3/8.
The final sale will then be electronically relayed to the bro¬ker who placed the order.
The investor might also place a limit order, which specifies the highest or lowest price at which the broker may buy or sell. If the investor can’t be accommodated immediately, the broker places the order in a sales book and then tries again in order of priority. If an investor wants to keep the order on the books he can issue an open order that instructs the broker to leave the order on the books until it is executed or canceled.
Sometimes the investor might give a discretionary order, which allows the broker to exercise judgment in making money. The investor leaves it up to the broker to decide when and at what price to buy or sell.
An odd lot is any number of shares less than 100. One hun¬dred shares comprise a round lot. Brokers usually trade shares in lots, odd lots being combined with a series of other small orders to forma round lot. A purchase of 10,000 shares is some¬times called a block sale.
In addition to the price of the stock, the investor pays the broker a commission for buying or selling the securities.
Sometimes investors pay less than the full amount when they buy stock. This is called margin trading. The FRS determines the minimum margin required. In recent years the stock margin has been approximately 50 percent. Fearing that the investor might sell the stock and abscond with the funds, the broker keeps stock certificates of margin accounts at the brokerage as collat¬eral. If the stocks were to plummet, the broker would call the investor and request that he put up more money or have the stock sold.
Active buyers of stock are called bulls. They believe that the prices of stocks are going to rise. During the mid 1980s, the US witnessed a very long bull market. At the 1987 crash even bulls became bears. A bear is an investor who makes a profit when the prices are going to fall. Selling short is a high-risk strategy which bears use in order to do that. They sell borrowed stock in the hope of later buying it on the open market at a lower price. Options are contracts that allow an investor to either buy or sell a security at a predetermined price within a certain time. Depending on the investor’s expectations, he may buy a put option or a call option. A put option grants the owner the right to sell a security. Believing that the price of certain shares will drop over some period of time an investor might buy an option and benefit from selling the shares at the option price to the person who sold the options. A call option grants its owner the right to buy a certain amount of stock at a predetermined price within a fixed period of time.

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