online trading

TEN TIPS FOR A INVESTOR

2009-11-08T07:35:00.000-08:00

1. Do not visit your stock broker every day. The more frequently you go to your broker's office, and listen to the rumors that circulate there, the greater the chances of your being influenced by the crowd opinion of the moment.

2. When you go through the stock market quotations in your daily news paper or through internet, do not focus your interest exclusively on the shares that interests you, the shares that you own, or the shares that you want to buy. Try to also read and remember the quotations of other shares. It will help you to acquire a wider and more balanced perspective.

3. Avoid talking freely and loudly about your investments in social gatherings. In fact, try to steer the conversation to subjects other than the stock market. This is particularly important during periods of extreme optimism and extreme pessimism. People who are habitually prone to be vocal about their investments are normally the first to get drawn into vertex of crowd emotions.

4. Do not take large loans for the purchase of shares. The very fact that you have taken such loans means that your thinking is already being strongly influenced by greed. There is also another disadvantage. In a falling market, heavy loans and the need to pay interest on them periodically, will make you particularly vulnerable to fear and panic. People who are not burdened by heavy loans are seldom pushed by greed and fear into taking foolish decisions.

5. Do not speculate, that is don't buy on margins or try to make money through short-term fluctuations in share prices. Speculators or invariably motivated by greed. They are also normally the first to panic whenever share prices begin to fall.

6. Adopt a long-term investment strategy. A long-term vision and perspective or seldom influenced by current market sentiments.

7. Diversify your portfolio. A concentrated portfolio will make you more vulnerable to fear and anxiety.

8. Invest only what you can afford to loose. Don't depend upon stock market games for running your kitchen, providing the school fees of your kids, meeting medical expenses or paying your apartment rent. In any case, even if you happen to be extremely rich, it would not be prudent to invest more than 50% of your assets in the stock market.

9. Investing your working capital of your business in the stock market is a risky job. That is a sure sign of uncontrolled greed.

10. Do not invest in shares offered through private placements from the promoter's quotes of new and upstart companies.

Emotions Of a Investor

2009-11-08T06:49:00.000-08:00

Emotions are strong feelings and play a important role in the formulation of investment decisions. Most investment decisions are motivated by greed,fear and hope.
In a bull market, greed is the main motivating force fuelling investment decisions. Investors throw caution to the winds, borrow money at high rates of interest, stretch their financial resources , and take other unwarranted risks. In the bear market, on the other hand, fear is the dominating emotion. Fear leads to panic selling and unloading of otherwise sound scripts at unbelievably low prices.

Frequently, investment decisions are based on hope. An investor may want to buy a particular share because he thinks it will go up, but because he hopes that it will. Hope also sometimes makes an investor cling on to a share whose price is falling rapidly in the hope that it will eventually rebound to its original price. Wishful thinking is another word for hope.
Emotions distort the decision-making process. They frequently override reason, logic and some times even facts this happens especially when emotions come disguised as reason. They prevent investors from seeing reality as it really is , and not what they would want it to be. Emotions also prevent investors from changing their minds when proved wrong, or when there is need to change and adopt a different line of thinking.

Excessive fear, on the other hand, is a dangerous emotion because it can lead to panic selling and prevent the investor from picking up bargains in an atmosphere of doom and gloom..... the ideal time to do so.

Online currency tradings will be high

2009-09-01T19:28:00.000-07:00

This is becoming very popular among investors who want to make a safe investment with significant upside.
Currency markets continue to grow and many experts will tell you that engaging in currency trading can be very lucrative.

Just like a stock, the goal is to buy low to sell high. Forex trading is only different from stocks in that you are trading currencies instead of company stocks. Just like stocks, the price of a currency rises and drops. This is easy to understand. Buying a currency low and dealing it at a higher price will result in profit.
Even though this is a simple concept, you must educate yourself on the basic principals of online currency trading. With all the currency options out there it would be pretty challenging to keep track of all of them. You should research and concentrate on just a few in the beginning.

Thankfully, there is online currency trading software which will significantly help you out in efficiently mastering forex trading. This advanced software will give you insider tips and you can initialize the software to choose the most profitable trades.

And don't worry about these programs being hard to make use of - they are incredibly user friendly. You can even sign up for a free account through a top web site like Forex dot com and practice Forex trading for free with their demo mode.

Online currency trading can be a little intimidating for the first time investor. Utilizing an online currency program such as forex.com will help you tremendously as a first time trader. These new software programs for online currency trading have settings where you can make conservative trades and then increase your risk as you learn more.

As your knowledge of the markets growth, you will likely end up making trades coming from your own instutions and also based on the trades the software gives you. Why hire a broker when you can utilize the same powerful tools they use on a daily basis for free. Brokers use this same type of software and basically recommends what the system tells them.
Why pay them a commission when you can learn online currency trading yourself and reap 100% of the profits.

Stock Exchange by quite a bit

2009-09-01T19:24:00.000-07:00

Trading accounts are two types
1.funding account
2.trading account
Forex day trading has become the single largest trading market on the planet. It has even outgrown the New York Stock Exchange by quite a bit.
Because of this, many new people are finding opportunities and becoming involved with Forex trading every single day.
Since there are long hours to trade (virtually, the system almost never shuts down) and great variety in trading opportunities,
many are finding their satisfaction in Forex trading. It is said that around 2 Trillion US dollars are circulated per day in this system.
With this knowledge, you will probably want some tips on how to use and best utilize this market to its full potential.
Anyone can gain using this system but their needs to be knowledge of the system for money to be made.
Here are 2 simple tips that can help you be the best you can be with Forex trading:

1. Because of the massive increase of trade in the last 20 years, Forex is estimated to be circulating over 3 Trillion dollars per day in the next couple years.
Because of this, many people are jumping on the band wagon (so to speak) and joining Forex or at least making an account online.
Opening an account sooner than later is an excellent idea as there may not be many spots left or it may become expensive.

The Forex markets are becoming more and more automated each day making it easier for people to be involved. Joining soon would be an optimal idea!

2. You will gain much by using an automated system. These allow you to set up short-term market strategies that will run even as you sleep.
Because many people all over the world desire to trade with each other at random times of the day, you can benefit by trading with people from Japan, Australia or India overnight by using the automatic system.
These automated systems do have a price (typically between $200 - $400) but are well worth the extra expense. The money spend on the automated systems will be made up in no time.
There are several different kinds of automatic systems so be sure to make sure the system is right for you.
Your trading needs may be different depending on the size of your account, how automated you would desire your account to be and your level of experience in the Forex market. Make sure and discuss the specific program's features with a professional before buying a program.

So now that you have seen how lucrative and up-and-coming this system really is, it's time to get started! Don't put off setting up a Forex account because you may miss out.
Hundreds and even thousands of people are joining every day and making Forex their trading home. They are finding the benefits of this market in incredible ways every day.
With the massive growth expected in the next few years, you don't want to miss out of the benefits of Forex day trading by not getting an account now!

Risk Management in Volatile Markets

2009-09-01T19:23:00.000-07:00

Hedging or risk reduction adds to planning and managerial efficiency. The economic justification of futures and forwards is in term of their role as a device for hedging. In the context of currency markets which are characterized by volatile rates, such contracts are believed to enable the parties to transfer and eliminate risk arising out of such fluctuations. For example, modifying the earlier example, assume that individual A is an exporter from India to US who has already sold some commodities to B, the US importer and anticipates a cashflow of $50 (which at the current market rate of 1:22 mean Rs 1100 to him) after one month. There is a possibility that US dollar may depreciate against Indian rupee during these one month, in which case A would realize less amount of rupees for his $50 ( if the new rate is 1:21, A would realize only Rs1050 ). Hence, A may enter into a forward or future contract to sell $50 at the rate of 1:21.5 at the end of one month (and thereby, realize Rs1075) with any counterparty which, in all probability, would have diametrically opposite expectations regarding future direction of exchange rates. In this case, A is able to hedge his position and at the same time, forgoes the opportunity of making a gain if his expectations do not materialize and US dollar appreciates against Indian rupee (say, to 1:23 which implies that he would have realized Rs1150, and not Rs1075 which he would realize now.) While hedging tools always improve planning and hence, performance, it should be noted that the intention of the contracting party - whether to hedge or to speculate, can never be ascertained.It may be noted that hedging can also be accomplished with bai salam in currencies. As in the above example, exporter A anticipating a cash inflow of $50 after one month and expecting a depreciation of dollar may go for a salam sale of $50 (with his obligation to pay $50 deferred by one month.) Since he is expecting a dollar depreciation, he may agree to sell $50 at the rate of 1: 21.5. There would be an immediate cash inflow in Rs 1075 for him. The question may be, why should the counterparty pay him rupees now in lieu of a promise to be repaid in dollars after one month. As in the case of futures, the counterparty would do so for profit, if its expectations are diametrically opposite, that is, it expects dollar to appreciate. For example, if dollar appreciates to 1: 23 during the one month period, then it would receive Rs1150 for Rs 1075 it invested in the purchase of $50. Thus, while A is able to hedge its position, the counterparty is able to earn a profit on trading of currencies. The difference from the earlier scenario is that the counterparty would be more restrained in trading because of the investment required, and such trading is unlikely to take the shape of rampant speculation.4. SUMMARY & CONCLUSIONCurrency markets of today are characterized by volatile exchange rates. This fact should be taken note of in any analysis of the three basic types of contracts in which the basis of distinction is the possibility of deferment of obligations to future. We have attempted an assessment of these forms of contracting in terms of the overwhelming need to eliminate any possibility of riba, minimize gharar, jahl and the possibility of speculation of a kind akin to games of chance. In a volatile market, the participants are exposed to currency risk and Islamic rationality requires that such risk should be minimized in the interest of efficiency if not reduced to zero.It is obvious that spot settlement of the obligations of both parties would completely prohibit riba, and gharar, and minimize the possibility of speculation. However, this would also imply the absence of any technique of risk management and may involve some practical problems for the participants.At the other extreme, if the obligations of both the parties are deferred to a future date, then such contracting, in all likelihood, would open up the possibility of infinite unearned gains and losses from what may be rightly termed for the majority of participants as games of chance. Of course, these would also enable the participants to manage risk through complete risk transfer to others and reduce risk to zero. It is this possibility of risk reduction to zero which may enable a participant to earn riba. Future is not a new form of contract. Rather the justification for proscribing it is new. If in a simple primitive economy, it was prevention of gharar relating to delivery of the exchanged article, in todays' complex financial system and organized exchanges, it is prevention of speculation of kind which is unIslamic and which is possible under excessive gharar involved in forecasting highly volatile exchange rates. Such speculation is not just a possibility, but a reality. The precise motive of an economic unit entering into a future contract - speculation or hedging may not ascertainable ( regulators may monitor end use, but such regulation may not be very practical, nor effective in a free market). Empirical evidence at a macro level, however, indicates the former to be the dominant motive.The second type of contracting with deferment of obligations of one of the parties to a future date falls between the two extremes. While Sharia scholars have divergent views about its permissibility, our analysis reveals that there is no possibility of earning riba with this kind of contracting. The requirement of spot settlement of obligations of atleast one party imposes a natural curb on speculation, though the room for speculation is greater than under the first form of contracting. The requirement amounts to imposition of a hundred percent margin which, in all probability, would drive away the uninformed speculator from the market. This should force the speculator to be a little more sure of his expectations by being more informed. When speculation is based on information it is not only permissible, but desirable too. Bai salam would also enable the participants to manage risk. At the same time, the requirement of settlement from one end would dampen the tendency of many participants to seek a complete transfer of perceived risk and encourage them to make a realistic assessment of the actual risk.

Trading Using the Triple Moving Average Crossover

2009-09-01T19:21:00.000-07:00

When trying to make a decision on whether to buy or sell a particular security, the triple moving average crossover (often referred to as the "triple MA crossover due to keyword restrictions) can often provide partial guidance. As one of the most basic technical indicators, this technical indicator can provide a buy or sell recommendation based on the direction of the crossover, allowing traders to open or close positions accordingly.

Moving Average (MA) Defined

Based on the average value of a security, an MA considers past closing prices over a given period of time. Since the MA is be based on historical prices, the lagging data must not be used in isolation. The longer the MA, the more lagging it will be; the shorter the period, the less lag. As a result of this lag, the triple MA crossover works best in clear markets where there is a definite trend, and not so well in sideways or choppy markets.

What is a Triple Moving Average Crossover

A triple MA crossover is a technical indicator as to the direction of a stock price. This type of indicator is triggered when a short MA crosses over a medium moving average, and the medium crosses over the long moving average. Typically, analysts will use the 4-day moving average for the short MA, the 9-day for the medium MA, and the 18-day for the long MA.

Consequently the triple MA crossover will see the 4-day crossover the 9-day and the 9-day crossover the 18-day. Now that all three moving averages have crossed one another, the analyst makes a recommendation on a trade.

Trading the Triple Moving Average Crossover

When the MA cross over one another in an upward fashion, then a bullish signal is generated. This would be an indication to purchase the security (long). Likewise, when the MAs cross in a downward trend, traders are urged to sell the security (short).

As a warning, however, trade decisions should not be based solely on the signal of a triple MA crossover indicator. In order to confirm or refute the signal produced, investors and analysts can easily rely on signals produced by the MACD and Momentum.

Since reviewing multiple technical indicators and signals can become a full-time job for dozens of analysts, many traders can benefit from the assistance of trading software, which can compute thousands of complex signal on a daily basis and return simple buy or sell recommendations.

The Best Time to Day-Trade

2009-09-01T19:18:00.000-07:00

Day-trading offers many advantages over short-term trading or long-term investing. Typically a day-trader is out of the market at the end of the day, so there is no overnight risk. The day-trader watches the market in real time, enabling him to adjust his position live as the market develops. The frequent trades develops his skill much faster and will help to maintain it at its peak. Trades typically have lower risk with smaller losses and there is a quicker return when they are profitable.

The disadvantages of day-trading are also many. Over trading is a real problem with most day-traders. Quicker analysis and decisions, along with faster responses, are demanded. Emotion frequently interferes with good judgment and its roller coaster ride can be extreme. A margin account can be drained faster than with any other type of trading. Most day-traders give up regular careers in order to trade during regular business hours and so trading often becomes their only source of income, placing a great financial pressure on them. Still, most would agree that they wouldn't trade day-trading for any other career.

When I first started day-trading I found it to be very stressful. I chose as my day-trading market the S&P e-mini, a market I knew well and felt comfortable with. The day would start out well, but as mid-day approached I found myself struggling and making trades repeatedly as I tried to keep up with the frequent changes in direction. Afternoon would ease the stress some, but I found myself so exhausted that I could not focus well. I would make some profits, but by the end of the day I would find that I had spent so much in transaction costs that the profits were very meager. After a few weeks I found myself too worn out to get up and trade, particularly if I had just traded the day before. So I started to skip days that I would trade. Eventually, I was reduced to trading at best just every other day. It was clear that the income was far too little for my needs and I knew that any hope of a long term career in day-trading was in serious trouble. At first I thought I had to just force myself to trade more, but when I did so the situation still didn't improve. In fact, it seemed to get even worse.

Trading Stocks and Forex Successfully

2009-09-01T19:17:00.000-07:00

Trading is both a simple and fairly complex game. It depends how you approach it. Trading requires a neutral mind. Following rules is a key attribute of successful trading. Many failed traders already develop their mind of particular direction. Neutrality itself requires that there is no direction of market. Whenever there is a setup formed according to the given rules, one should act swiftly without hesitation. Here comes the discipline.

Successful trading in futures, emini, stocks, options, forex or any market requires sound strategies and discipline. Actually discipline is more important than strategies. Learning the top notch strategies will not make you successful unless you are committed to follow rules strictly. Sound strategy can be applied to all markets. There are some so-called analysts in the market whose rules apply to one market only and at particular time. Objective analysis covers every market pointing out multiple opportunities in a week for day trading as well as swing trading. If you manage your risk effectively you can do daytrading or swing trading in any market. Rules are usually same in every time frame whether it is emini, emini futures, commodity trading, futures trading, options, stocks. Stock trading itself presents numerous opportunities because there are countless stocks in stock market. Another huge market is a currency market. Currency trading usually called forex trading offers huge potential of income if you know how to limit your risk. Many reputed brokers are now offering forex trading. The key is how you discipline yourself and follow rules all the time.

Another mistake of new traders is to trade live immediately after learning to trade. Paper trading with discipline could give huge amount of confidence over a period of time. What differentiates successful traders from failed traders is right decision at right time. Tough mindset is required to trade every market in every time frame.

Day Trading Rules and Regulations

2009-09-01T19:14:00.000-07:00

It is one of the first, confusing facts for the neophyte trader. Day trading rules and regulations.

Let's say Bill wants to start trading stocks. He opens an account with an online broker. He funds it (puts money into the account) and he applies for a margin account (margin is the amount of money the broker allows Bill for trading, on top of his equity position). Bill puts in $5000 and his broker puts in $5000. Bill doesn't like the idea of holding stocks over-night, so he buys and sells his stocks on the same day. He does this three times in just his first day alone. Since he is new to day trading, he feels okay about just breaking even on his first day.

On day two, he does the same thing. And either before he executes the trade, or very soon afterward, he gets an email message from his broker. Something about a "margin call". The broker is demanding that Bill deposit an additional $20,000 into his account immediately since he is now considered a pattern day trader. Bill freaks out because he doesn't have $20,000. His palms get sweaty. He suddenly feels like a gambler who cannot repay his debts. And he anticipates a knock at the door any minute.

What Bill failed to do was to read the fine print supplied by his broker. It looked like standard contract stuff to him, so he just glossed over it. But if Bill had read the fine print regarding accounts, margins, day trading rules, and day trading regulations then Bill would have known not to do what he just did.

So, stated in simple terms (please read your broker's fine print), these are the day trading rules and regulations. If a trader makes a same day round trip transaction (meaning the trader buys and sells, or shorts and covers, the same stock in the same day), then that is considered a day trade. If the trader does this more than three times during a five-day period that the market is open, then the trader is considered a pattern day trader. And a pattern day trader is required to have at least $25,000 equity in that account. This is the S.E.C.'s rule, not the broker's rule. Lacking the $25,000, the broker is required to issue a margin call and demand that the trader deposit adequate funds to comply with the S.E.C.'s rules. Failure to do so can result in the broker closing that account.

So Bill has a choice. He can come up with the $20,000. Or, he can contact his broker, apologize on bended knee, and promise that it will never happen again. The broker will often forgive the first offense. But not the second one.

So, if you're new to day trading, then read the fine print. You can still day trade with less than $25,000. You just cannot do it more than three times in a five-day period.

Why Forex Trading Courses Are So Important

2009-09-01T19:13:00.001-07:00

From ancient times, people have been engaged in different types of businesses. Buying, and selling of commodities, is still the backbone of any business. Businesses have not only provided bread and butter to generations but have also helped build many great nations.

Trading is also one of the very old ways of doing business. Long ago, people traded goods for other goods. Later on, goods were traded for services and services were traded for money.

Forex trading is just one of the many forms of trading business. Simply put, forex trading is the trading of different currencies in the world. Known as the largest financial market in the world, forex trading is the least regulated market which provides absolute liquidity to most investors.

In the beginning forex trading seems very easy. But in reality, it’s quite difficult. To make money in forex trading, you should be able to buy currencies at a cheaper rate and sell them later at a higher rate. If you don’t have proper knowledge about it, you will lose a whole lot of money.

To become a pro in forex trading, you will need to learn the basics and then practice with some advanced learning tools. If you do it right, it won’t be long when you will become a master.

How do I begin?

2009-09-01T19:09:00.000-07:00

1. The best advice on how to learn to trade profitably is to learn from experts with proven track records. Many learning styles are available to beginners at all levels: books, CDs, online courses, group seminars, even one-on-one mentors who will come right your home for a few days. We outline our Forex-Trader picks in Learning Forex Trading. Learning to trade from experts is worth every penny and has saved us untold thousands in mistakes.We would not recommend starting forex trading without any training. It is not hard to learn, nor difficult to trade successfully, but you must first provide yourself with a basic functioning knowledge of ’the game you’re in’.

2. While you are learning you will need charting software to practice reading the Market. Charting is an indispensable tool that shows you in real-time data what the market is doing moment by moment and also what the market has done in the past. As you learn to analyze these charts you can determine what trades to enter and exit, where to set your stop losses, limits etc. There are several good charting software services that you can subscribe to online monthly. See our Forex-Trader tested Charting Software picks in Tools of The Trade.

3. Then, to perform your actual trades online you need a real-time ’trading platform’ to execute your ’buys’ and ’sells’ directly in the Foreign Currency Market. You obtain a trading platform from a Forex Clearinghouse that is connected real-time to the interbank market. There are many good Clearinghouses (also confusingly called Brokerage Firms, Market Makers, etc.) that provide you with the trading platform to trade the funds in the account you have opened with them. Before you begin trading your ’real’ money, while you are learning, you will practice on your own ’demo account’ with play-money in it, which will be provided to you by the clearinghouse you plan to trade through. The contractual relationship you enter into with your Clearinghouse is a very important one because the Clearinghouse you choose determines many trading features and financial advantages to you both as a trader and as an investor. Forex-Trader tested Clearinghouses are reviewed in Tools of The Trade.

We have outlined a Getting Started path with uncomplicated steps. This is the path that we would take if we were beginning trading over again today with ’what we know now’. The products and services we mention in these steps are all ones that we have personally used for some time with consistent success. As always you are free to forge your own path, and if you do, happy hiking. There is a mountain of products and services try out, and if you find ones you like better we would love to compare notes with you.

Start Trading Forex

2009-09-01T19:05:00.000-07:00

Starting out trading forex is a very simple proposition: sign up with an online broker, download any software, deposit some money and you are ready to trade. Most of the reputable brokerage firms have a practice account facility where they will open an account, deposit fake money into the account and allow you to start trading in real time.
Some of these same brokers are also offering to open an account and start you trading for real using a very small deposit, say $100. Even with a 200:1 leverage applied, this amounts to only $20,000 - nowhere near enough to make a forex trade. My own feeling is that these "mini accounts," are a complete waste of time and money (see leverage) and possibly just plain dangerous. In the unlikely event that you do make money with a $100 deposit and are then tempted to place a larger one, anything you learned trading at this level will not apply to a substantially larger trade. Try a practice account with one of the larger banks instead. N.B Trading on a practice account, regardless of how realistic it is, is not the same as trading for real. If it doesn't matter whether you win or lose, you will behave differently to the way you will act when money is at stake

Stock Trading

2009-09-01T19:03:00.000-07:00

Online stock trading is a money market concept involving buying and selling stocks, equities and shares from large corporations listed in the stock exchange or securities market. The stock trading practice involves investing money in corporate shares provided by either individual, companies, multinational groups or international conglomerates. Regardless of where you invest your money, the profits and losses in online stock trading are determined by the gap between buying and selling prices.

If you are keen on online trading, then you've probably heard a lot about stock investing too. Stock investing is different from stock trading, although they may sound similar to a layman. Stock trading is a more hands-on and short-term buying and selling practice, while stock investing is more about keeping your funds intact for the long-run. Stock investing is generally done with financial instruments such as mutual funds, but stock trading requires you to input quite a hefty capital. Stock trading also requires the investor to pay great attention to stock market activity, to monitor and detect the best times to get in to and out of his online trading. The efforts required in stock trading are vast, because stocks are traded during daytime - a limited time period to be on your toes. Your ideal solution for making a good profit out of your stocks and shares is to hire a stock broker. A stock broker will be a registered and commissioned individual with extensive expertise in stock trading or online trading in general.

The paperwork required, the winded processes, monitoring and analyzing will all be done by the stock broker, so you'll be free from worry. Stock trading is a precision-based activity and one tiny mistake in judgment could send you plummeting right to the bottom and result in a huge loss. Likewise, the opposite could happen too. One good break and you are well on your way to massive riches. A reliable and honest stock broker will be able to keep the balance in your online stock market trading and make the best out of your investment every time. Online stock trading is the current vogue in the global money market, with many traders and brokers opting to trade their shares simply based on live statistics posted on reputable online stock market trading websites. This online trading phenomena is relatively new, although the concepts behind online stock trading are the same as in real life. Let's take a few moment to examine online stock market trading more thoroughly. Stock trading is risky business, there's no doubt about it. Understanding the stock market outcome realities is just the frosting on the cake. The actual process involves a lot of skill, research and discipline. Using stock trading to make instant riches is foolish, because nothing worthwhile is ever quick and easy. So, where does online stock market trading come in to this picture? Online trading is no different to ordinary stock trade in the huge day market. The best benefit available in online trading is geared for the beginner, who can learn, monitor and trade small-time online stock trading activities while in the comfort of their own home. The rise in client demand for online trading has lead many stock brokers and online financial companies to open their doors to the online stock market trading concept. Price indicators, trend analysis, fluctuations and everything else gets automatically monitored within online stock trading websites.

Why Should You Opt For Stock Investments?

2009-09-01T19:02:00.000-07:00

Stocks are an A-grade online investment opportunity when it comes to asset worth. This is why a stock investment is always worth the time and effort you put in to researching and processing it. Stock investing has a higher probability of yielding better returns over time, in comparison to other investments such as real estate and bonds. Stock investing has many advantages, but that doesn't necessarily mean it's pitfall-free. The Advantages Of A Stock Investment Returns: Worth mentioning repeatedly, the returns on a stock investment is always much higher than what you get from other online investments. In the long-term, stock investing will give you better profits through outperforming CDs, bonds and savings accounts, as well as various other monetary online investments. A stock investment returns 10% per annum on average, while others yield a return between 5-7% annually. Taxes: A stock investment is taxed at a very low rate, especially if you hold on to the investment for at least a whole year. When you put your stock investment up for sale, you will be taxed under the long-term capital gains clauses, which would make your tax deduction as low as 15%. The standard tax rate on any other partaken online investment opportunity is 35%. Diversification: You cannot diversify a real estate investment opportunity can you? Unless you are a multibillionaire with nothing else to do with the money, diversification is simply not an option in real estate and other investments.

The possibility of a real estate invested in going down in value is much higher, because the specific area you concentrated on may not be so popular after awhile. While a stock investment also has the possibility of falling down to zero because you invested in the wrong company, you can still make a good profit from your stock investment portfolio when you have diversified it. The Disadvantage Of Stock Investing Stock investing can be disastrous if you don't take the time to do a risk analysis before making an online investment. An investment opportunity can be glorified and blown out of proportion by marketing campaigns, but you need to be a prude with your money and do a thorough background research on the every possible stock investment opportunity. Properly assessing the risks will keep you prepared for eventualities and help you diversify your stock investment portfolio. Top Stock Investment Traps To Avoid When we speak of stock trading and investment traps, you might think we are talking about online investment scams or some such unethical behavior by crooks. Interestingly, stock investment traps are not just for online investment opportunists to be wary of. Common investment traps include high fees, fear, greed and infomercials.

Option Trading

2009-09-01T19:00:00.000-07:00

When the term "option trading" comes in a discussion, the immediate reaction is to assume the stock market. This is no surprise; options have been a main staple of stock trading for many years. However, since the forex market became widely available by trading via online brokers, option trading in the forex market has become just as popular. The forex option market is the largest, deepest, and most liquid of any option trading market in the entire world. Also, in the hands of a skilled money manager, forex option trading creates more opportunities of limiting losses and increasing profits than in trading currency alone. In the world of forex option trading, there are usually two routes to take; traditional options (call/put) and SPOT (single payment option trading).

Traditional option trading affords the trader the right (but not obligation) to purchase currency at a set time and price. This type of option trading is more closely related to the stock market, and is something many investors can already identify with. For example, an investor may enter into an agreement (option) to buy a lot of GBP/USD in four months time at a rate of 1.9500. If in 4 months time the price is below 1.9500, the investor considers the option worthless and loses only the premium that was initially put up for the option. If the price shoots to 1.9700 in 4 months' time, however, the investor would exercise his right to purchase one lot at 1.9500 and immediately sell the lot at market price for 1.9700, creating 200 pips profit instantly. SPOT (single payment option trading) is generally known as the more flexible method when option trading, and affords the investor many different opportunities. SPOT options work in much the same manner as traditional options do; a contract is entered to buy a specific currency at a specific rate in a specific timeframe. The single main difference is that in SPOT option trading, your option is converted to cash in the event that your option trade was successful. Also, many different scenarios are available for SPOT option trading: " One-touch SPOT - Option exercised as soon as price hits a predefined level " No-touch SPOT - Option exercised if a predefined level is not reached " Digital SPOT - Option exercised if price is between two price levels This affords the trader many opportunities to achieve exactly the scenario that is predicted. However, the SPOT type of option trading usually has a higher premium; the SPOT option will cost more on average than the traditional option would. Though it seems that there is a great deal of advantages to forex option trading, there are a few downsides to them as well.

Trade Guide

2009-09-01T18:53:00.000-07:00

The concept of Trade is centered around the simple activity of the exchange of good and/or services. These exchanges may be the ones that simply take place between two parties.
The simple trade which takes place between two parties is known as bilateral trade. These exchanges may also take place amongst more than two parties.

These exchanges that take place amongst more than two parties is known as Multilateral trade.In its authentic and original form trade perforce used barter and the exchange of goods and services of a recognized equal value that is equally desirable to both parties.

Modern traders generally negotiate through the use of a medium of exchange, i.e.money. The barter system of course has become extinct now.

The invention of money and the subsequent creation of the concepts of credit, paper money and non-physical money have played pivotal roles in simplifying and promoting the development of trade.

Most economists agree and accept the very obvious theory that trade benefits both parties involved in the transaction. Trade is a concept that exists largely due to the differences in the cost of production of some tradable commodity in the various locations.

Trade Guide

2009-08-29T21:21:00.000-07:00

10 Golden Rules of Trading

2009-08-29T21:16:00.000-07:00

• Have specific goals and objectives
• Be consistent and disciplined
• Let profits run
• Cut losses short
• Never add to a losing trade
• Don’t take too much risk
• Only trade positive expectancy systems
• Minimize all trading business costs
• Be well educated
• Don’t trade scared money

Each of the rules will now be discussed.

2 The Golden Rules of Trading

The following sections outline a set of rules that can significantly improve your chances of success if they are understood, practiced, and implemented consistently in your trading. These rules have been learned the hard way, by study, research, trial-and-error, and the inevitable mistakes that everyone makes when they start a trading business.

We hope that you can learn from the work we have done, and benefit from our experience. The rules will now be discussed.

2.1 Have specific goals and objectives

Few things are more important to your trading success than having set (i.e. written) goals and objective for what you are aiming to achieve. It is amazing to me how often we hit our targets, meet our objectives, and reach our goals only when we articulate them and write them down.

For any business to be successful it must have measurable objectives that are actually achievable. In trading (obviously) the primary objective is to make money, but it is important to have other objectives that are not purely cash-related. We must always remember that reward and risk go hand-in-hand in trading and that we cannot expect to achieve high returns without planning for high risk (i.e. draw-downs).

Your objectives and goals will be very specific to you, but they must have the following characteristics to be useful:

• Be measurable (in completion and timeframe)
• Be achievable
• Be worthwhile
• Be positive

As an example, here are some of our current objectives (this is only a partial list):

• Develop 2 new positive-expectancy trading systems each year
• Make fewer errors implementing our trading systems each year
• Achieve a return to maximum draw-down ratio of 1.5:1
• Take 2 weeks vacation each year

Note that only one of them is about making money, and that has a measurable objective that is relative to draw-down, not absolute (i.e. make 100% per year). If you know what you are trying to achieve, and when you are trying to achieve it, the whole business will be focused on meeting
your objectives and help guide you to only pay attention to things you really want to achieve with your limited time and resources. This will also give you a way to measure the success and progress of your trading. Generally traders with well-defined objectives will be much more successful than those that do not have pre-defined goals.

2.2 Be consistent and disciplined

In order to realize the full potential of your trading systems it is critical that you take every trading entry, adjust every stop, and close out every trade as and when your system says you should do. This takes extreme confidence in your trading systems, good robust reliable technology, and the mental discipline to stick to your trading plan whatever happens (assuming it is complete).
An underlying assumption about being consistent and disciplined is that you have a pre-defined plan for every situation you may face in your trading, so that you know how you are defining what being consistent is. Your plan needs to include at least the following items:

• All your trading rules for entering, adding to, and exiting positions
• What you will do if your trading computer, internet connection, broker, power, telephone
etc. fails
• What you will do if you are unable to trade
• What you will do if you lose X% of your account
• What you will do if all the markets are closed and you can’t exit your positions

Unless you write the answers down to all these issues, you cannot be consistent and disciplined in your approach to trading and if you lose money you will not know whether it is because you didn’t follow your plan, because your plan is incomplete, because your systems do not work, or simply because you are going through a losing period.

2.3 Let profits run

This simple rule is the key to being a successful trader. It is three simple words that are very hard to actually implement. When we get a profitable trade our natural fear of losing the unrealized cash kicks in and we truly want to close it out now and take the money. Most trading consists of long periods of small winners and losers followed by a few huge winners that make the difference between overall profitability and simply breaking even or losing due to trading costs(commissions, spread, and slippage).

It is our ability to let the huge winners become just that - huge - that determines how we will perform overall during the year. The key to letting winners run is to have trailing stops that are outside the daily noise of the market so that they are not tight enough to get stopped out during ‘normal’ trading. This means being prepared to give up a significant portion of a winning trade’s open profit and is the thing that makes this so hard to implement. In fact, we should be adding to a winner and widening stops rather than working out how tight our stops can be to capture maximum profit. The trade has already shown you that it intends to be a winner, and the chances are it is a low-risk idea to add to the position now rather than ‘strangle it’ with stops that are too tight.

It is very important that your position management rules allow for large winning trades, and that the rules are pre-defined and understood before you place the trade. This will allow you (if you have confidence in your method and discipline) to stick to your rules when you do get the big
winner.

2.4 Cut losses short

This is the sister rule to the previous one, and is usually just as difficult to implement (although it
is very easy to define). In the same way that profitability comes from a few large winning trades, capital preservation comes from avoiding the few large losers that the market will toss your way each year. Setting a maximum loss point before you enter the trade so you know before-hand approximately how much you are risking on this particular position is relatively straightforward. You simply need to have a exit price that says to you ‘this trade is a loser and I will exit before it gets any bigger’. Due to gaps at the open, or limit moves in futures we can never be 100%
certain that we can get out with our maximum loss, but simply having the rules, and always sticking to it will save us from the nasty trades that just keep on going and going against our position until we have lost more than many winning trades can make back.

If you have a losing position that is at you maximum loss point, just get out. Do not hope that it will turn around. Given that trades are either winners or losers, and this one is shouting ‘Loser’ at you, the chances that it will turn around and become a large winner is tiny. Why risk any more money on this losing trade, when you could simply close it out (accept the loss) and move on. This will leave you in a much better place financially and mentally, than holding the position and hoping it will go back your way. Even if it did do this, the mental energy and negative feelings from holding the losing position are not worth it. Always stick to your rules and exit a position if it hits your stop point.

2.5 Never add to a losing trade

One of the few trade management rules that we can state we never break is ‘Never add to a losing trade’. Trades are split into winners and losers, and if a trade is a loser, the chances of it turning right around and becoming a winner are too small to risk more money on. If indeed it is a winner disguised as a loser, why not wait until it shows it’s true colors (and becomes a winner)before you add to it.
If you do this you will notice that nearly always the trade ends up hitting your stop loss and does not look back. Sometimes the trade turns around before it hits your stop and becomes a winner and you can count yourself very fortunate. Sometimes the trade hits your stop loss and then
turns around and becomes a winner and you can count yourself unlucky. Whatever the result, it is never worth adding to a loser, hoping that it will become a winner. The odds of success are just too low to risk more capital in addition to the initial risk.

2.6 Don’t take too much risk

One of the most devastating mistakes any trader can make is risking too much of their capital on a single trade. One thing is certain in trading and that is if you lose all your capital you are out of the game. Why risk so much you could be prevented from continuing? There is a saying in
poker than going all-in (risking all your chips) works every time but once. This is true of trading.

If you risk all your account on every trade it only takes one loser to wipe you out (and no trading method is 100% accurate), so you will be out of the game at some point – it is only a question of time.

In general, we only risk 1-3% of the available capital allocated to a system on any individual trade. This is calculated using the size and, the difference between our entry price and our maximum stop price, and the amount of capital allocated to the system. With the win probability
and ratio of size of winning trades to losing trades we are almost certain never to lose all of our trading capital. In fact, the chance of us hitting our maximum drawdown for the year is tiny.

All trades should be of a size that almost seems insignificant. If you are worried about the size of a trade then it is too big and you should reduce the size immediately. Remember that longevity is the key to making money by trading – slowly over a long time with minimal risk, is always preferable to rapidly with too much risk.

2.7 Only trade positive expectancy systems

If you have a positive expectancy trading system, the only factors that determine how much money you will make per year are the number of trades the system generates, how much capital you allocate to the system, and how accurately you implement the trading signals. If you do not know whether your trading system is positive expectancy then why are you trading it? Expectancy is calculated using the profit or loss on each trade (net of trading implementation
costs) divided by the initial risk (using your stop loss) and then taking the average of this number of a series of trades. Systems that have positive expectancy will make money on average and those with negative expectancy will lose money.

Successful traders only trade systems where the odds of success are in their favor (i.e. the system is positive expectancy) so they know that making money is the result of accurately implementing the system and not just pure luck.

2.8 Minimize all trading business costs

Some trading systems have only marginal profitability, and trading implementation costs (commission, spread, and slippage) can be the difference between profitability and making a loss. With the easy availability of modern electronic brokers, and fully-automated trade processing and
execution, it is definitely worthwhile looking for a very low cost way to implement your trading system. High commission, wide spreads, and large amount of slippage can be reduced considerably simply by carefully choosing a broker. This can be the difference between a system
(especially a high frequency one) being useable or not. Paying too much for trade implementation is an avoidable way to lose money.

2.9 Be educated

In order to compete at the highest level in the trading business and be one of the few truly successful participants you must be well-educated about what you are doing. This does not mean having a degree from a well-respected university – the market doesn’t care where you were educated.

Being well-educated means that you have thoroughly researched and tested your trading ideas and know why your trading system worked in the past and is continuing to work now. It means understanding all the technology and applications that your system needs to perform accurately.
It means understanding your goal and objectives and how trading will achieve these. It means understanding yourself and how your personality affects your results. It means understanding the markets and instruments you trade.
In order to succeed you really need to become an expert in your own trading business to understand how it all fits together, when it is broken, and how it can be improved. As with all worthwhile endeavors, this takes commitment, hard work, dedication, and more hard work.

2.10 Don’t trade scared money

Lastly, no one ever made any money trading when they had to do it to pay the mortgage at the end of the month. Having a requirement to make X dollars per month or you will be financially in trouble is the best way I know to completely mess up all trading discipline, rules, objectives, and
leads quickly to disaster.

Trading is about taking a reasonable risk in order to achieve a good reward. The markets and how and when they give up their profits is not under your control. Do not trade if you need the money to pay bills. Do not trade if your business and personal expenses are not covered by
another income stream or cash reserve. This will only lead to additional unmanageable stress and be very detrimental to your trading performance.

3 Summary

In this article we have covered the rules that we believe should never be broken in trading. If you work on never breaking them, your trading should improve dramatically.

We sincerely hope this information has helped you to improve your trading performance.

Basics For Investing in Stock Markets

2009-08-29T21:12:00.000-07:00

While most folks today trust mutual funds and their professional managers with their investments, it’s still important to understand the basics of the stock market. Although investing in individual stocks may not be right for everyone, a basic understanding of the stock market is essential to understanding the workings of our economy and business sector.

A stock is a portion of ownership in a company. Commonly referred to as a share, it is a small percentage of the total ownership pool for the corporation. Shareholders are stock owners, or people who have an ownership interest in the corporation. Today, shares are usually tracked electronically, but in previous decades shareholders would actually receive a certificate stating their ownership.

Why own stocks? First, you are sharing in the company’s profits. When a corporation shows a profit, they will sometimes distribute these profits to each shareholder, based on how much stock they own. This distribution is called a dividend. Company’s can elect to pay out their profits or reinvest them in the company, but as a shareholder, each time a payout is made you will receive your proportionate share.

Also, the value of your stock will rise and fall based on the company’s perceived value in the stock market. If you buy a share at $10.00 and it rises to $11.00 a share, you’ve made a dollar for each share you own, and subsequently sell. However, with this opportunity comes risk as well. If the share price falls and you sell, you’ll lose money. The more volatile the stock, the more opportunity for risk or profit.

Most shareholders track their stocks using the stock table. These appear confusing and difficult to read, but they are actually easy to understand with a little practice.

Ticker symbol is listed first. This is the abbreviated symbol that the stock market uses to identify your company. For example, GE is General Electric, WMT is Walmart. Once you select a company, you’ll need to know it’s shorthand name to track its progress.

Second, the company’s name may be listed. Some tables omit the name to save space, others list it to make tracking stocks easier.

The third item is the number of sales in the last trading day. This is listed in the 100,000’s, so 256 means 256,000 shares were bought and sold on the last day that the market was open.

Next are the high and low price, in that order. The high price is the highest per share price that the stock sold for on the previous trading day. The low price is the lowest price for that day. Since the price of the shares moves all day long, this is a good reference to see how much the stock is changing in a day.

Next, the closing price is listed. This is the last price that the stock traded for as the market closed. This will also be the beginning price for the next trading day.

After the closing price, the table will list the change, or the amount that the stock changed when you compare yesterday’s closing price with the closing price for the day before. This will be listed as a positive number (the stock went up) or a negative number (the stock sold for less yesterday than the day before).

Stock tables are found in many places, but most people check their daily paper or the Wall Street Journal. There are many internet sites that track stocks as well.

Of course, you’ll have to select a stock. Choose carefully or consult a professional, and good luck!

Forex Market Trends

2009-08-29T21:08:00.000-07:00

As you start analyzing forex charts you will realize that the market often display's some very familiar patterns of price movement. Once a pattern is established, it becomes the most probable course of future price action until the market
changes.

There are two types of markets which will become very important for you to identify and understand; these are: trending and trend-less markets. Each market type has two specific patterns which you will also notice over time.

These market types and patterns are defined as follows:

Trending - Steady elongated price movements with less than a 45 degree angel with occasional pauses, profit taking, or resting periods.

In a Trending market, you have also other patterns:

- Uptrends - A pattern of higher highs and higher lows.

- Downtrends - A pattern of lower lows and lower highs.

Trend-less - Erratic price movements which are often steep ( greater than 45 -degree angle ) and cannot sustain and therefore must reverse. Although the movements can move many points in a short period of time, they often result in very little net price movement over time.

In a Trend-less market, you have these patterns:

- Choppy - An erratic pattern of higher highs and lower lows.

- Sideways - A narrow pattern of lower highs and higher lows.

While up-trend and down-trend days can offer excellent trading results, choppy markets often create stop outs, while sideways markets produce for little in either direction making them hard to trade and to make any profit during these periods.

Your trading objective is to get into a trending market and ride the trend until you make your target profit objective.

There are many Trend Trading Strategies that you can find in a number of sources listed in my website. You will learn how to identify and draw your own channel trendlines, support and resistance lines, triangle patterns, chart key top and bottom formations, etc.

Market Analysis Reports

2009-08-29T21:06:00.000-07:00

Specialized reports prepared by our specialists in the financial industry from Easy-Forex offices across the world. These reports include fundamental and technical analysis covering the world economies, financial calendar and their impact on foreign exchange. See all Forex Reports here.

* Daily Reports Asia - Pacific
The daily outlook provides a summary on currency trading in the previous session and includes a technical commentary showing support and resistance levels. Prepared by our research team in Asia Pacific.

* Daily Reports Europe
The European daily forex reports provide a recap of the previous trading sessions, also highlighting upcoming news and market updates. The daily reports include currencies and or commodities that are most likely to be big movers in the upcoming trading session based on technical and fundamental reports. Prepared by our research team in Europe.

* Daily Reports North America
The daily reports provide an in-depth and specialized market analysis with a focus on the fundamental topics and their impact on foreign exchange. Prepared by our research team in North America.

* Special Reports
The special reports provide an in-depth analysis on key fundamental topics and their impact on foreign exchange and include coverage on breaking news.

* Weekly Outlook
The weekly outlook provides a review on the previous week's currency trading and includes upcoming financial data for the week ahead that will be covered in the daily reports.

STOCK EXCHANGE

2009-08-29T20:58:00.000-07:00

Stock Exchange, organized market for buying and selling financial instruments known as securities, which include stocks, bonds, options, and futures. Most stock exchanges have specific locations where the trades are completed. For the stock of a company to be traded at these exchanges, it must be listed, and to be listed, the company must satisfy certain requirements. But not all stocks are bought and sold at a specific site. Such stocks are referred to as unlisted. Many of these stocks are traded over the counter—that is, by telephone or by computer.

Major stock exchanges in the United States include the New York Stock Exchange (NYSE) and the American Stock Exchange (AMEX), both in New York City. Far more corporations list their stock on the NYSE than on the AMEX, however. Nine smaller regional stock exchanges operate in Boston, Massachusetts; Cincinnati, Ohio; Chicago, Illinois; Los Angeles, California; Miami, Florida; Philadelphia, Pennsylvania; Salt Lake City, Utah; San Francisco, California; and Spokane, Washington. In addition, most of the world’s industrialized nations have stock exchanges. Among the larger international exchanges are those in London, England; Paris, France; Milan, Italy; Hong Kong, China; Toronto, Canada; and Tokyo, Japan. These stock exchanges all have a central location for trading. The major over-the-counter market in the United States is the Nasdaq Stock Market (formerly, the National Association of Securities Dealers Automated Quotation [NASDAQ] system). The European Association of Securities Dealers Automated Quotation system (EASDAQ) is the major over-the-counter market for the European Union (EU).

FOREX Special Offers

2009-08-28T18:11:00.001-07:00

Read the FOREX offers which are given by Some popular trading companies to attract the traders :

FREE FOREX TRADING eBOOK

FREE FOREX TRADING PLATFORM

FREE RECENT FOREX FORECASTS

MOBILE FOREX TRADING

FREE INSTANT TREND ANALYSIS

FREE FOREX EDUCATION

FREE TRADING SIGNALS

UPTO 100:1 LEVERAGE

PERSONALIZED ACCOUNT REPRESENTATIVE

NO SHORT SALE RESTRICTIONS

2 PIP SPREAD ON EUR/USD

COMMISSION FREE TRADING ON MORE THAN 150 CURRENCY PAIRS

24 HOUR ACCESS TO THE MARKET

Account And Brokerage

2009-08-28T17:59:00.000-07:00

Online trading is an Internet based trading facility that allows you to buy and sell shares through an online broker. It is a common that you talk to your broker over the phone or personally and accordingly, he buys and sells shares for you. Once you join an online trading site, you can buy and sell through the stockbroker's Web site.
Account opening costs
All broking companies charge an account opening fee; this is a one-time payment. Generally, none of them charge an annual account maintenance fee since they make their money via brokerage. This is the fee they levy every time you buy or sell shares.Sometimes, the cost of opening the account is based on the software provided. Most companies offer two types of accounts: a browser-based one and software based one.
The software-based option is much quicker; you don't have to refresh the page and wait for it to get uploaded, which is what happens in the browser-based option.
The software option offers a wealth of information by way of intra-day charts which tracks the price movement of the stocks, technical analysis which gives you an idea of where the price of the stock is headed based on its price movement till date and a host of other benefits.
Now, if you are trading shares from your office or from an internet shop, then it will be easy for you to open the browser based option and trade the shares. if you are trading from home then you can trade the shares by using the software based option.
In some cases, it may be more expensive to opt for the software package. if you are an active stock market trader and need to capture quick price movements. Then its better you choose software based option. If you are an investor who buys shares, holds on to them and sells them at a later date, you could opt for a browser-based package.
Brokerage
Some will give you a direct percentage while others levy a fixed amount per Rs 100.

When you compare the brokerage charges of different firms, always do so in percentage terms.
Also, check if the Service Tax and Securities Transaction Tax is passed on to you or if the broker picks up a part of the tax.
A Service Tax of 10.2% is levied on the brokerage while a Securities Transaction Tax of 0.1% is levied on the total trade value.
Let's say you sold shares worth Rs 20,000
Brokerage @ 0.75% on Rs 20,000 = Rs 150
Service tax @ 10.2% on Rs 150 = Rs 15.3
STT @ 0.1% on Rs 20,000 = Rs 20
Total payments made by you on Rs 20,000 = Rs 185.3
The above brokerage is for delivery based trades and decreases for intra-day trades.
A delivery based trade is when the investor buys shares with the idea of holding on to it and the shares are actually delivered to the buyer. Basically, it is a trade where the transaction ends in actual delivery of the stocks.
Intra-day trades are when you buy and sell the same stocks during the day. The transaction does not end in actual delivery but it is squared off. The net difference is paid by/ received by the customer at the end of the settlement.
To trade with a broking company, you need to have an account with one of its collaborating banks. Typically, broking firms have less collaboration with public sector banks .

Trade Oil

2009-08-18T20:04:00.000-07:00

Now a days Trading of Oil has become popular due to sudden rise and fall of oil prices. Trading oil is exactly the same as Forex , stocks etc., the advantage of oil trading is that we can book profits from falling prices just the same as rising prices, by selling rather than buying. The “leverage” which allows us to buy huge quantities with just a small deposit, so we can gain profits from a small move up or down in price however this is potentially risky which we can get rid of risks by putting automatic “stop loss” options during the trade. The risk will be lower because we put in a stop of 90 pips (a $0.90 move on the price of oil). MetaTrader shows the daily 'spot price' for oil and both this spot price and the oil 'futures price' are available depending on which broker you use. The futures price is simply an estimated price for oil for delivery at a set date in the near future. It really makes no difference to our trading.
Here is how a typical trade works. We see that the quoted price is 81.50 - 81.56 so this means that we can buy at 81.56 oil and sell at 81.50 - the difference in prices being the broker's profit. We have a sell signal on our chart, so we sell 0.1 contracts or $1 (or £1) a pip. Now, a 'pip' is the smallest movement, which in this case is 0.01 or a one cent move. At the same time, we put in a stop loss at 82.40 (90 pips up in the 'wrong' direction because we are selling and want the price to go down) and a take profit of 80.00 (150 pips in the hoped-for direction). Then, we simply wait anything from ten minutes to five hours, on average.

FOREX Market

2009-08-14T19:51:00.000-07:00

The Foreign Exchange market (Forex) is truly the largest exchange in the world. The amount of dollars traded on the Forex market on a daily basis is in the trillions. Most of this currency trading takes place between between large banks, central banks, currency speculators, multinational corporations, governments, and other financial markets and institutions. However, individual traders are starting to get in the mix, using internet discount brokers such as Etrade to participate in the currency exchange market. There is no central exchange or meeting place for the Forex.
All trading is done over computer networks between traders in different parts of the world. Also, unlike the stock market, the foreign exchange market is open 24 hours per day, because it is a global market. A trader in Hong Kong may be exchanging currency with a trader in Australia while an American trader is sleeping. There are several different markets within the Forex exchange system. First, there is the spot market. The spot market deals with trades that are based on the current values of currencies. One person trades a certain amount of currency with another trader in exchange for an equivalent amount of a different foreign currency . Spot trades take two days for settlement. The other two types of foreign exchange markets are the forward and futures markets. In the forward market, the buyer and seller agree on an exchange rate and a transaction date is set for a specific time in the future, at which point the trade is executed regardless of what the rates are at that time. On the futures market, futures contracts are bought and sold based upon a standard contract size and maturity date. Futures trades take place on public commodities markets. A currency quote is listed differently from a stock quote. Stocks are quoted in terms of price per share. Currency exchange prices are listed as either a direct quote or an indirect quote. A direct quote uses the domestic currency as the base and the foreign currency as the quote. An indirect quote works the exact opposite way. So, if you were to view a quote in an American newspaper that said USD/JPY = 75, that would be a direct quote and would mean that $1 of U.S. currency is equal to 75 Japanese yen. If that same quote appeared in that same American newspaper and was listed as JPY/USD = 0.013, that would be an example of an indirect quote.As with stock prices, currency exchange prices have a bid and ask spread. The current bid is the amount of foreign currency that someone is willing to spend in order to buy $1 U.S. base currency. The ask is the amount of foreign currency that someone is demanding in order to be willing to sell $1 U.S. base currency.
The Forex markets are generally considered to be less volatile than then stock market because within the course of a trading day, it is highly unlikely for the value of a single currency to move all that much. With equities, it is not uncommon for a trader to buy a stock, and then a negative press release causes the stock to lose considerable value within a day or even a couple of hours. Sometimes, however, the Forex can be volatile.
If there is a significant economic or political development with a certain country, the currency of that country can lose value quickly. There is a higher degree of liquidity on the currency exchange then there is on the stock exchange because the currency exchange is open 24 hours per day and because the very nature of currency exchange is to bet on when certain currencies will go up or down; so, it is easy to sell your position in a certain currency even when the value of that money is going down. A plummeting stock is more difficult to unload, but not impossible. If you want to begin currency trading, try to set aside some money and open an account with an online broker. Start slowly, then as you get the hang of it, work your way up to larger trades and higher volume. However, do not gamble your nest egg on currency trading because inexperienced traders can lose everything they have rather quickly in spite of the relative safety of the Forex market.

Reach Your Goal

2009-08-14T19:35:00.001-07:00

Trade quality, not quantity. Take the best of the best. Get the big picture. If you haven’t previously come across such advice, or if you have and are not following it, it is time that you take these words to heart. But how?
Trade selection and adequate planning go hand in hand. This is where most would-be professional traders miss the boat.
Much more money is made as a result of proper planning than from sitting and trading everything that comes along or "looks" good.
It’s difficult to fully understand why people think they have to trade so much. It’s difficult to truly grasp why people think that they have to take as many trades as they do.
Just the opposite is true. There is a correct approach to each and every trade. That is what achieving perfection is all about.
It all starts with proper management: planning, organizing, delegating, directing, and controlling.
These facets of management must be woven together into your trading; they do overlap.
Although planning is the major management function involved in achieving perfection, you can’t possibly plan well unless you are organized to do so.
You must have your tools at hand: your trading software, your data, the proper equipment. All of the rudiments for planning must be in place, which in itself is a part of organizing.
You must be physically fit when you plan: well nourished, properly exercised, well rested and mentally alert - all part of having your life organized, all part of achieving perfection as a trader.
To be a winning trader, you have to be among the best. There can be no middle ground. There are only winners and losers, and to be a winner you have to be a champion. And, just like any champion, you must have discipline, self-control, and a willingness to train, train, train.
There are no runners-up in trading, you either get the gold or you give the gold. Often, while others are busy going to parties or watching sports events, you are busy poring over charts, studying, thinking, and planning. When others are listening to music or watching TV, you are busy practicing your trading, practicing trade selection, working hard to become a more astute trader.
Part of achieving perfection involves the diligent study of charts. The data, as presented on your screen and preserved as charts, are, for the most part, all you have for making trading decisions. They are a picture, a visualization of what is taking place in the reality of the market. Your job in achieving perfection and becoming an adequate trader is to picture and imagine in your mind what makes prices move and form the way they do. Ask yourself, "How does what I see in front of me relate to the supply and demand for the underlying?" Ask yourself, "Is what I am seeing on the chart even related to supply and demand, or is what I am seeing related to an engineered move by some insider or market mover?"
Supply and demand are not what makes prices move or fail to move most of the time. The sooner you realize that fact, the better off you will be. Markets are engineered, manipulated ¾ you need to know that.
But there’s more to a chart than merely price patterns. Reflected in the chart are the emotional reactions of human beings. Reactions to rumors and news; to national and world events; to government reports - these, too, are on the charts.
You might say that price movement, or the lack thereof, is the net effect of all the perceptions of all the traders who are participating in the market for a particular futures.
There is something else on the charts, something that too few take into account. That something is the manipulations from and by the insiders, the market movers, and by commercials holding large inventories of the underlying you are attempting to trade.
In achieving perfection as a trader, you must train yourself to look for evidence of any and all of these things as you study your charts. It is the cumulative action of all perceptions which causes patterns to form on a price chart.
You must learn to look for the truths in the markets. There are certain truths which are self-evident; they are always true. For instance, take the phenomenon of a breakout. When prices break out, no one can change the fact that they did break out. It is a fact and it is true. The breakout may turn out to be a "false" breakout, but nevertheless it is a breakout. As part of achieving perfection in your trade selection skills, you have to learn to tell which breakouts are most likely true breakouts, and which ones are most likely false. How can you know? By the price patterns on the chart.
And what about trend? Your job in achieving perfection as a trader is to master how to trade a trend. A trend is a trend, is a trend. It is a trend until the end, and part of your job is to know when a market is not trending.
The trend is the trend while it lasts. While a market is trending it is telling the truth. The trend can change, but the truth is the truth. If prices are rising, the trend is up. If prices are falling, the trend is down. The truth can be found in the trend. It is an immutable fact. You are to learn to make my money by trading with the trend. You are to learn what constitutes a trend. You have to learn to spot trends early so that you can make the most out of the market while it is trending. Your job in achieving perfection as a trader is to learn to recognize when a trend will most likely begin, and just as important, to learn to be even more adept at deciphering when a trend is ending.
In achieving perfection, you must learn to recognize "your" trade(s), and to take only "your" trades. Trade the formations and patterns that you can easily recognize and identify.
You must learn to trade using tips and tricks that you are shown and to accumulate and keep a collection of techniques that result in the selection of high probability trades.
How are you to do all this? Practice and practice. Practice recognition of congestion areas. Practice recognition of high probability breakouts. Practice trend recognition. Practice and more practice. Just like anyone who wants to achieve perfection at anything, there must be total dedication, study, practice and more practice. You are to become a trading virtuoso. You are to practice, yet always realizing that you will never attain true perfection, that there is always room for improvement. There is usually a way to refine: ways that you can do things better, more efficiently, and with greater speed and finesse.

Online Frauds

2009-08-12T19:43:00.000-07:00

A number of recent Internet fraud cases dramatically demonstrate the extent to which this new medium creates potential for vast losses. The US based FBI's Internet Fraud Complaint Center (IFCC), a joint project with the Department of Justice (DOJ), reports that most Internet fraud complaints stem from online auctions. The amount at issue in these claims, however, pales in comparison to the multi-million dollar hoaxes perpetrated in the financial markets. Internet fraud involving stock information is the second most common form of investment fraud, amounting to losses of over $10 billion a year

One of the most common forms of securities fraud on the Internet involves an imposter who attempts to manipulate the price of a stock by disseminating phony press releases or information, or creating phony websites. A recent example of this scheme is the hoax perpetrated against US based, PairGain Technologies. In the PairGain case, a former employee posted a fraudulent message on an Internet website designed to look like a legitimate Bloomberg news service pagem (Bloomberg is news service like Reuter or our PTI). The message falsely stated that a competitor was acquiring PairGain. In the resultant flurry of trading PairGain's stock rose 30%, and even after the message was debunked PairGain's stock remained high, eventually closing 10% up, a net gain of $46.5 million. The false site convinced even money managers at the Wall Street news and thestreet.com

Another recent example of the use of the Internet to disseminate phony information is the Emulex case. On August 25, 2000, the web-based news service Internet Wire posted a press release containing information about Emulex Corporation, a computer hardware manufacturer. The press release, posted just as the financial markets opened, stated that Emulex's CEO had resigned and that Emulex had been forced to restate 1998 and 1999 earnings as losses instead of initially reported gains. Other news services, including CBS Marketwatch, Bloomberg, and Dow Jones, picked up the release's information about half an hour later. Emulex's stock, which opened at $110.69/share, went into free-fall. By the time Nasdaq decided to step in and halt the slide until the information could be verified, the price-per-share stood at $43, a loss of over 61%. In a matter of hours, Emulex stock suffered a net loss of over $2 billion dollars.

According to the FBI, the press release was a fraud perpetrated by 23-year-old college student Mark Jakob, a former Internet Wire employee who recently lost money selling Emulex shares short. On August 17 and 18, Jakob "sold short" 3,000 Emulex shares at $80/share. Selling shares short is a form of stock speculation; in effect, an individual borrows shares from a broker and sells them under the understanding that the individual must eventually buy them back to repay the broker. The buyer hopes that in the meantime the share price of the stock will drop below the price the buyer "borrowed" them at, so that he may later repurchase the shares to repay the broker and pocket the difference. Instead, Emulex stock rose to over $113 a share and Jakob lost over $97,000 when he was forced to repurchase the stock he sold for $80/share at the new price. After submitting a press release Internet Wire drafted in a manner that suggested it had already been reviewed for veracity, Jakob again began selling shares short, this time realizing a profit of more than $54,000 as the stock plummeted. Jakob later sold another 3,500 shares short. His total profit from the hoax was morethan $241,000. On December 29, 2000, Jakob plead guilty to two counts of securities fraud and one count of wire fraud in connection with the hoax. His sentencing is scheduled for March 26, 2001; and he faces a maximum 46 months in prison, a $220 million fine, and a possible $110 million inrestitution to Emulex shareholders. In addition, attorneys recently filed a class action lawsuit against Internet Wire and Bloomberg on behalf of Emulex shareholders.

A second form of Internet fraud comprises the category of "pump and dump" schemes. While the outcome of "pump and dump" schemes is identical to imposter schemes, namely the enrichment of the perpetrator at the expense of the majority of shareholders, the means employed to effectuate that result differ. Typically, the individual gives trading advice and tips to investors on the Internet (remember www.harshad.com recommending Krishna Filament, BPL, and few other scrips?), talking up stock that the individual already owns and then selling when the demand occasioned by the advice reaches a given level. A recent representative "pump and dump" case involved the website of Yun Soo Oh Park, who billed himself out as "Tokyo Joe" and specialized in stock tips and trading advice. On January 5, 2000, the Securities and Exchange Commission (SEC) of USA, filed fraud chargesagainst Park, alleging that he used his website to maintain an ongoing "pump and dump" scam, talking up stocks he already owned to subscribers of his tips service and then surreptitiously selling them when demand increased.Between selling stocks he recommended and charging fees for subscription to his service, Park made over $ 1.1 million in a twelve-month period ending in June 1999.

In India, we see this kind of frauds happening in different way due to nature of our society. Here when you talk to broker's staff while buying or selling, he will usually advise you to buy share which he has bought and plans to dump when price goes up.

We have seen enough of PUMP and DUMP even without help of internet in cases of Harshad Mehta boom of 1992 and Ketan Parekh boom of 2000 (he even had cult following with Index of 10 shares called K-10).

Today lot of investor's depend on TV channel for recommendation about stocks to sell, or buy or hold. Channels like CNBS offer array of experts from economist to brokers to analyst. Most of these people have vasted interest in stocks they recommend and promote. In India laws are lax about Incider trading. One has to be very careful when someone on TV or in newspaper or website promotes/recommends stocks as in India rarely you will find government taking action promptly and paying back investor's who lost money.

One should ignore emails in inbox recommending any stock (especially if its stock with low market capitalization and low floating stock means little liquidity) unless you know that expert. Even if you know him, try to verify that its not bogus mail by contacting him her on phone (don't reply as email address in email).

ONLINE TRADING HISTORY

2009-07-30T20:58:00.000-07:00

The history of e-trading began in 1980, when a doctor in Michigan placed the first online trade using E*TRADE technology. The concept was visualized by Phil Porter,
a physicist and inventor who shared the idea about trading stock on a personal computer in 1980.Newcomb understood the programming and developed the necessary one to successfully trade a stock, who provided online quotes and trading services to Fidelity, Charles Schwab, and Quick & Reilly .A dentist in Michigan made the first stock trade on July 11,1983. This was the first trade for the company Trade*Plus. It took 9 more years before the company was named the fastest growing company in Silicon Valley and by 1996, Trade*Plus received the new name E-Trade Group.
Today practically every big name brokerage firm offers online stock trading
as it reduces their costs. Earlier they had brokers on phone withclients
executing trade,now that is done by computers accepting orders from
clients directly. One thing which potential client should pay attention to is,agreement with broker, how it defines risks of hacking and who bears it.

currency trading

2009-07-29T22:02:00.001-07:00

About a decade ago, currency trading was only limited to large banks and financial firms because they were the only ones to have access to the tools and methods required to trade Forex market. However recently, due to up and coming efficient online platforms, technology has advanced to the point of being accessible to any and every individual trader who wishes to trade or invest in Forex.
Foreign Exchange market is the biggest financial market in the world, with a potential of fast and great gains and a sizable number of investors. The advent of internet technology is what made Forex trading grow considerably popular as well as accessible with various types of investors.
“Major” currency pairs in Forex market are
Euro/ U.S. Dollar
US Dollar/ Japanese Yen
US Dollar/ Swiss Franc
US Dollar/ British Pound.

ONLINE TRADING

2009-07-28T21:01:00.001-07:00

Online Trading is a ultimate home-based business. The advantages of online trading : no inventory, no appointments, no sales to make, no set schedule - you make your own hours! And you’re your own boss. You don’t even necessarily need to be at home to be "at work"; you can trade from anywhere you can use an Internet connection!
But don’t ignore the immense risk you are taking by beginning home online trading business.. After all, you are leaving the "traditional" business world behind and venturing into something very different. You’ll need to know that you can count on yourself to make financially crucial decisions daily. This is your money you’re working with.
In order to successfully trade you must certainly obtain the necessary knowledge of the markets. Gain information such as fundamental factors that drive prices and/or technical tools based on price charts and price patterns are needed to predict price movement. But remember, that alone is not enough.
You should have a trading system. A trading system will provide an overall set of rules to which you can refer and adhere when emotional madness might otherwise triumph. As you begin to discover your individual weaknesses and trading flaws, you’ll be able to create more specific rules that will allow you to become more and more efficient and effective.

INVESTING IN STOCKS

2009-07-27T21:58:00.001-07:00

When you are new to investing in stocks you should think of factors like
“WHAT IS THE AMOUNT YOU ARE GOING TO INVEST”
“FOR HOW LONG YOU CAN STAY INVESTED“
“WHAT IS THE RISK YOU ARE WILLING TO TAKE ?”
Supposing you have one lakh which you need in a years time for making some specific payment, then you should select low risk and moderate returns because if the amount you invested does not change or if it becomes low due to losses in trading you will face the problems.
You have one lakh and you need to take it only after a long period like four or five years. you can buy shares of a great going company which you can decide by reading the complete details of the company’s strong fundamentals, like new orders, profits and losses, EPS, results, on the company etc,. and you should ask your broker to suggest a share and you should ask him why he is suggesting that particular share, one any concert news, strong fundamentals or any Government plan in the future which is beneficial to the industry which we are considering. Once you are convinced then go ahead and invest. If you follow these basic common sense points you can come out a winner .we know that the markets have always rewarded the patient participant.

INTERESTING GROWTH

2009-07-26T19:16:00.001-07:00

Indians eager to invest for extra income are signing up in droves at Internet trading sites, data from the nation's largest stock exchange shows.
The number of investors registered for online trading has grown by at least 150 per cent over 2006-07 figures, with 2.9 million in the cash segment and 5.5 million for both cash and F&O, according to records at the National Stock Exchange (NSE).
Traditionally, equities trading in India has been done through brokers, in person or over the phone, but with the convergence of mobile and internet, shopping for shares has become as easy as making a few clicks from one's PC or mobile phone.
“One gets access to various value-added features like live market rates, intra-day charts, live news, market statistics, technical analysis tools and research reports," says Divyesh Shah, CEO of Indiabulls Securities.
According to NSE data, retail investors accounted for about 21 per cent of trading volume for 2008-09, up from 18.3 percent in the previous year.
"As per an estimate, the pure retail turnover percentage of the total exchange turnover is less than 50 percent, and online trading is substantially contributed by retail investor base," says Gurpreet Sidana, Online Business director at Religare Securities LTD.
Internet security
Online trading in India, Asia's third largest economy, is still at a nascent stage. Though the country is witnessing a 30 per cent growth year-on-year in internet and mobile user base, not all investors are convinced that trading the cyber way is safe.
"Issues that need to be addressed are education on cyber crime and the security solutions around it," says Vinesh Menon, Deputy CEO and head for Online Investment & Branch Channel, Bajaj Capital.
To work around this issue, most brokerages now offer the services of a relationship manager who assists with information on share prices and places orders online using the investor's login details.
Some Internet trading sites have also launched low-bandwidth platforms to facilitate trading through mobile phones and low-bandwidth connections.
With more than 400 million mobile users, India is the world's second-largest market after China for such services and operators have been adding more than 10 million users a month - making it the fastest-growing market in the world.
"It's a matter of time when we will see exponential growth in the online trading segment, not just through the computer but also through our mobile phones," adds Menon.

TRANSACTION CHARGES

2009-07-26T07:37:00.000-07:00

Before you open an online account you must know the complete details of transaction charges which the executives may not explain you properly, it is your responsibility to request the company executive to explain briefly about the transaction charges such as brokerage charges and different types of tax you pay while buying and selling of shares.

TAXES YOU PAY

1. The service tax is of 10.36% only on brokerage.
2. The STT (Security Transaction Tax) is of 0.025% only on selling amount.
3. The stamp duty on total turnover for a day which is 0.002%.
4. Regulatory charges on total turnover for a day which is 0.004%

Example:-

Suppose you bought the shares of TATA MOTORS at Rs.350 and quantity 100 so the total amount you have to pay is Rs.315 x 100 = Rs.35,000.

Now let’s see how to calculate the brokerage and taxes.
Your buying amount is Rs.35000 (Rs.350x100 Qty shares)

Brokerage charge ( brokerage charges may vary for different stock broking companies ) :
Assume 0.03% as brokerage on 35000 which comes to Rs.10.50
Service Tax :
The service tax is 10.36% only on brokerage, so 10.36 % on Rs.10.50 comes to Rs 1.08 (nearly)
Total charges you have pay on buying amount is :

The total brokerage + service tax which come to Rs.10.50 + Rs.1.08 = Rs.11.58
The brokerage and taxes on selling amount
Your selling amount

Suppose you sold TATA MOTORS shares at Rs.355 ( profit of Rs 5) , Qty - 100 so the amount comes to Rs35,500 (Rs.355 x 100 Qty shares)

Brokerage charge :
0.03% brokerage on 35,500 comes to Rs.10.65
Service Tax :
The service tax is 10.36% only on brokerage, so 10.36 % on Rs.10.65 comes to Rs 1.10.(nearly)

STT (Security Transaction Tax) only on selling amount :
The STT (Security Transaction Tax) is 0.025% on selling amount (the selling amount is 35,500 ) which comes to Rs 8.87.

Total charges you have pay on selling amount is

Total brokerage + service tax + STT on selling amount is
= Rs.10.65 + Rs.1.10 + Rs.8.87
= Rs.20.62

Total amount you have to pay on buying and selling is
= Rs.11.58 (buying) + Rs.20.62 (selling)
= Rs.32.20

Also you have to pay stamp duty and regulatory charges on total turnover.
Your total turn over is calculated by adding the buying amount and selling amount.
Buying amount is 35000 and selling amount is 35500 which adds up to Rs70500
Stamp duty is 0.002% and Regulatory charges are 0.004% which adds up to 0.006%
So on total turnover amount (Rs. 70500) the stamp duty and regulatory charges comes to
Rs 4.23
So the total amount you have to pay including brokerage and all taxes is only
Rs 32.20+4.23 = 36.43

you are paying Rs.36.43 (brokerage and taxes) while you earned the profit of Rs.500.
your profit is Rs 463.57 (500-36.43).

RISK WITH HUGE INVETMENTS

2009-07-24T20:16:00.001-07:00

There is always some risk associated with every business but in case of stockmarket investments the risk factor is high as compared to other business.
Everyone knows that they should buy when the markets has reached its lowest and sell the shares when the market peaks. But the fact remains, no one can estimate the markets.
It is impossible to an individual to estimate the lower or peak price of a share, If you invest the whole amount at once you may face the severe losses when the market dips suddenly, to avoid such type of losses It is better a investor should buy shares over a period of time.
When the market dips, go ahead and buy some stocks. But do not invest huge amounts. Pick up the shares in stages. Buy only a few stocks and invest in them gradually. When the market dips buy them. When the market dips again, you can pick up some more. Keep buying the shares periodically so that you can average the price of the share and come out of it with a good profit.
The important point to gain from volatile market is to act like a watchdog and start buying on dips and selling on highs. Analyse few important figures like support and resistance levels, 52-week highs and lows to estimate the extreme price a stocks can touch.

STRONG SENSEX

2009-07-23T21:41:00.000-07:00

The Sensex, trading at 18 times estimated earnings, has surged 87 percent from this year’s low on March 9, outperforming the BRIC countries that also include Brazil, Russia and China.

The gains helped Indian companies raise 55 billion rupees from the sale of shares to large investors in the second quarter.
Two Tata Group companies started raising funds to expand their businesses. Tata Steel Ltd., India’s biggest steelmaker, raised $500 million in a sale of global depositary receipts for its domestic expansion and mining ventures overseas, while Tata Power Ltd., the largest electricity generator outside state control, is seeking $335 million from the sale of shares overseas to build new plants.

Bharti Airtel Ltd., India’s No. 1 mobile-phone operator, fell 1.1 percent to 814.10 rupees, the only stock that dropped on the Sensex. The stock declined after it reported revenue that missed analyst estimates after it added more low-spending users in the nation’s smaller towns and villages.

WIPRO, TATA CONSULTANCY

Wipro Ltd. gained after the stock’s rating was upgraded at Morgan Stanley. It joined software companies Tata Consultancy Services Ltd. and Infosys Technologies Ltd. in beating analysts’ earnings forecasts.

Wipro added 1.2 percent to 456.50 rupees. India’s third- largest software exporter yesterday reported profit that exceeded analyst estimates after the company froze pay and won more orders, signaling demand for India’s software services may be returning as the global recession eases.

Of the 138 companies covered by Citigroup, the 19 that have reported profits have beaten estimates by 16 percent, analysts led by Aditya Narain said in a July 22 note.

The “earnings season in India has started on a largely positive note,” the Nomura analysts said. “While we are waiting for the earnings season to end, overall analyst upgrades in earnings across sectors could mean a revision in our year- ahead Sensex target of 16,400.”

FOREIGN INSTITUTIONAL INVESTORS

2009-07-23T08:15:00.000-07:00

Foreign institutional investors (FIIs) have invested more than $5 billion (over Rs 25,000 crore) in Indian stock markets so far this calendar year, with as much as $3.2 billion coming since the UPA government came to power.
Since the beginning of this fiscal year, FIIs have started putting money in domestic stocks, including blue-chips. In May alone, FIIs made gross purchases worth Rs 74,776 crore and sold shares worth Rs 54,659 crore, resulting in a net investment of Rs 20,117 crore ($4.1 billion).
After pulling out a record $13.1 billion (Rs 52,987 crore) from the Indian stock markets in 2008, which saw the Sensex plunging 51 per cent, FIIs turned net buyers during the last week of March. Flls frequently move investments, and those swings can be expected to bringsevere price fluctuations resulting in increasing volatility.

FOREX ONLINE TRADING

2009-06-21T03:00:00.000-07:00

Forex trading involves many foreign currencies. However, the most major of which are the U.S. dollars, Euro Dollar, Japanese yen, Swiss Franc, and British pound. They are considered major because they are the most in demand currencies in the Forex market. They are also the most traded. Foreign exchange trading platforms enable transacting parties to trade in real time via an internet connection. The online foreign exchange market is open 24/7, from almost virtually any part of the world. This easy online access enables users to follow and stay updated on the exchange rates that are constantly changing. In fact, this volatile market has currency prices fluctuating by the second! Each Forex trading account is backed by some software which communicate with remote servers by sending in the most current exchange rates. The exchange rates displayed in the Forex trading platform are easily readable and instantly tradable. With the recent technology advancements one of the most popular is online using forex trading software from companies like CMS Forex, with their software that can help you get into this market. It provides over 100 indexes to help create your buying and selling strategy and laid out in forex charts.
You can even download their software for free and setup a practice account before making an actual investment. This is great for those of us new to Forex trading.
With a Forex Platform you are able to buy gold,silver,oil and all other major currencies. You can try it out by opening an account with as little as a few money.

GOLD FUTURES TRADING

2009-06-21T02:53:00.001-07:00

Gold futures trading is aimed at making it the gold price determining country for the world's gold market. India is the world's largest consumer of gold at 800 tonnes. Though some players in the bullion market hedge their positions on international commodity exchanges, a large number of them do so through illegal routes.
Internatinoally, gold and silver futures are traded on NYMEX or COMEX, TOCM and the Istanbul Gold Exchange. China has its Shanghai Gold Exchange, Unlike the large contract size of many international commodity exchanges, NMCE's unit of trade and delivery is a 100 gm bar of .999 fineness. This small contract size is expected to attract large numbers of small and medium investors for whom gold is already an integral part of their portfolio, albeit in an unorganised manner. Thus, all quarters feel that gold futures trading has enormous scope in the country.

ONLINE STOCK TRADING COMPANIES IN INDIA

2009-06-21T02:29:00.001-07:00

Online Stock Market Trading is an internet based stock trading facility. Investor can trade shares through a website without any manual intervention from Stock Broker.In this case these Online Stock Trading companies are stock broker for the investor . They are registered with one or more Stock Exchanges. Mostly Online Trading Websites in India trades in BSE and NSE.

The major Online Stock Market Trading websites in India are :

1. Angel Trade
2. Geojit
3. HDFC Securities
4. ICICI Direct
5. IDBI Paisa Builder
6. Indiabulls
7. Kotak Securities
8. Motilal Oswal Securities
9. NSBL ( Networth Stock Broking Limited )
10. Reliance Money
11. Religare
12. Sharekhan
13. UTI Securities Limited
14. 5Paisa

STOCK EXCHANGES OF INDIA

2009-06-21T02:21:00.001-07:00

India has two big stock exchanges. They are Bombay Stock Exchange - BSE and National Stock Exchange – NSE and few small exchanges are also there in India. Of the 23 stock exchanges in the India however 4 of them closed permanently, Mumbai's (earlier known as Bombay), Bombay Stock Exchange is the largest, with over 6,000 stocks listed. The BSE accounts for over two thirds of the total trading volume in the country. Established in 1875, the exchange is also the oldest in Asia. Among the twenty-two Stock Exchanges recognized by the Government of India under the Securities Contracts (Regulation) Act, 1956, it was the first one to be recognized and it is the only one that had the privilege of getting permanent recognition ab-initio.

The Stock Exchanges of India are

1. Ahmedabad Stock Exchange Ltd. – Ahmedabad
2. Bangalore Stock Exchange Ltd. – Bangalore
3. Bhubaneshwar Stock Exchange Ltd. – Bhubaneswar
4. Bombay Stock Exchange Ltd. – Mumbai
5. Cochin Stock Exchange Ltd. – Cochin
6. Gauhati Stock Exchange Ltd. – Guwahati
7. Inter connected Stock Exchange of India Ltd. – Mumbai
8. Jaipur Stock Exchange Ltd. – Jaipur
9. Madhya Pradesh Stock Exchange Ltd. – Indore
10. Madras Stock Exchange Ltd. – Chennai
11. MCX Stock Exchange Ltd. – Mumbai
12. National Stock Exchange of India Ltd. – Mumbai
13. OTC Exchange of India – Mumbai
14. Pune Stock Exchange Ltd. – Pune
15. The Calcutta Stock Exchange Association Ltd. – kolkata
16. The Delhi Stock Exchange Ltd. – Delhi
17. The Ludhiana Stock Exchange Ltd. – Ludhiana
18. The Uttar Pradesh Stock Exchange Association Ltd. - Kanpur
19. Vadodara Stock Exchange Ltd. – Vadodara