Thursday, December 31, 2009

BANK NIFTY FUTURE

As per my previous post BANK NIFTY- TArget achived.book your profit around 9020 plus/minus 10 points.

Note- DO NOT FORGET TO CANCEL THE ' STOP LOSS' ORDER.


Today gain 9074-9023= 51 points -brokerage

BANK NIFTY FUTURE

Graph shown here is the spot


BANK NIFTY FUTURE subscription visit here > http://bankniftyfuture.blogspot.com/

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Wednesday, December 30, 2009

Know The Depth...Before you jump into..


' Trade only when you feel confident

and optimistic…

Think of trading as a cold ocean.

Test the water before plunging in. '

Tuesday, December 29, 2009

Sound Healing with Tibetan Bowls and Chiron Gong



Trader can listent to this to BUST your day stress.i tested it and it is simply great help in relaxing oneself.

This is a short video made by Diane Mandle at the San Diego CancerCenter, for all the oncologists, doctors, nurses and integrative therapyteam that worked with her on this project.We pass it on to you, hoping it will be of help and inspiration.

Source:http://innerhealers-english.blogspot.com/2009/04/sound-healing-with-tibetan-bowls-and.html

Sunday, December 27, 2009

Trader Really Needs to Be Successful


' What a Trader Really
Needs to Be Successful '
By Robert Prechter, Jr. President and Founder of Elliott Wave International

When I first began trading, I did what many others who start out in the markets do: I developed a list of trading rules. I created the list piecemeal, with each new rule added, usually, following the conclusion of an unsuccessful trade. I continually asked myself what I would do differently next time to make sure that this mistake would not recur. Approximately six months after I completed my carved-in-stone list of 16 trading rules, I balled up the paper and threw it into the trash.


What was the problem? My error was in taking aim at the last trade each time, as if the next trading situation would present a similar problem.


Here's an example. One of the most popular trading maxims is, "You can't go broke taking a profit." (The brokers invented that one, of course, which is one reason new traders always hear it!) When you have entered a trade at a good price, watched it go your way for a while, then watched it go against you and turn into a loss, the maxim sounds like a pronouncement of divine wisdom. But, what you are really saying is, "I should have sold when I had a small profit.



"Now, let's see what happens next. You enter a trade, and after just a few days of watching it go your way, you sell out, only to stare in amazement as it continues to go in the direction you had expected, racking up paper gains of several hundred percent. You ask a more experienced trader what your error was, and he advises you sagely, "Cut losses short; let profits run." So, you reach for your list of trading rules and write this maxim, which means only, of course, "I should NOT have sold when I had a small profit.



"Is this an isolated contradiction? What about this rule? "Stay cool; never let emotions rule your trading." And how does it jive with this one? "If a trade is obviously going against you, get out of the way before it turns into a disaster." Stripped of the fancy attire, one says, "Don't panic during trading," and the other says, "Go ahead and panic!



"What I finally wanted to create was a description, not of each of the trees, but of the forest. I developed the following list of what you need to be successful in the markets.


1. A Method

I mean an objectively definable method. One that is thought out in its entirety. This is not to say that a method cannot be altered or improved; it must, however, be developed as a totality before it is implemented. I chose to use, for my decision-making, an approach that was explained in the book I co-authored, Elliott Wave Principle -- Key To Market Behavior*. I think the Wave Principle is the best way to understand the framework of a market and where prices are within that framework. A hundred other methods will also work if successful trading is your goal.

*A.J. Frost and Robert Prechter


2. The Discipline to Follow Your Method

It struck me that among a handful of consistently successful professional options and futures traders of my acquaintance, three of them are former Marines. Now, this is a ratio way out of proportion to former Marines as a percentage of the general population! I was never a Marine, but years ago, while attending summer school in Georgia's "Governor's Honors Program," I was given a psychological test and told that one of my skewed traits was "tough-mindedness" (as opposed to "tender-mindedness"). After trading and forecasting the markets for 28 years, it is clear that, without that trait, I would have been forced long ago to elect another profession. The pressures are enormous, and they get to everyone, including me. If you are not disciplined, forget the markets. Because, without discipline, you'll have no method at all.


3. Experience

Some people advocate "paper trading" as a learning tool. Paper trading is useful for testing your method, but it is of no value in learning how to trade. Why? If you buy a computer baseball game and become a hitting expert with the joystick while sitting quietly alone on the floor of your living room, you may conclude that you are one talented baseball player.


Now, let the Mean Green Giant pick you up and place you in the batter's box at the bottom of the ninth inning in the final game of the World Series with your team behind by one run, the third base coach flashing signals, a fastball heading toward your face at 98 mph and 60 beer-soaked fans in the front row screaming, "Yer a bum! Yer a bum!" Guess what? You feel different! You will find it impossible to approach your task with the same cool detachment you displayed in your living room.


This is what your life is like when you are speculating. You must place orders; you must perform under the scrutiny of your broker or clients, your spouse and business acquaintances; and you must operate while thousands of conflicting messages are thrown at you from the financial media, the brokerage industry, analysts and the market itself. The School of Hard Knocks is the only school that will teach you fully, and the tuition is expensive.


4. The Mental Fortitude to Accept the Fact
That Losses Are Part of the Game

The biggest obstacle to successful speculation is the failure to accept the fact that losses are part of the game and that they must be accommodated. Expecting or even hoping for perfection is a guarantee of failure.


Speculation is akin to batting in baseball. A player hitting .300 is good. A player hitting .400 is great. But even the great player fails to hit 60% of the time! But, he still earns seven figures a year (more recently, eight!) because, although not perfect, he has approached the best that can be achieved. You don't have to be perfect to win in the markets; you "merely" have to be better than almost everyone else.


Practically speaking, you must include an objective money management system when formulating your trading method in the first place. There are many ways to do it. Some methods use stops. If stops are impractical, you may decide to risk only small amounts of total capital at a time.


5. The Mental Fortitude to Accept Huge Gains


This rule usually gets a hearty laugh, but consider: For a full year, you trade futures contracts, making $1,000 here, losing $1,500 there, making $3,000 here and losing $2,000 there. Once again, you enter a trade because your method told you to do so. Within a week, you're up $4,000. Your friend / acquaintance / broker calls you and tells you to take your profit. But, you wait.


The following week, your position is up $8,000, the best gain you have ever experienced. "Get out!" says your friend. You hope for further gains.


The next Monday, your contract opens limit against you. Your friend calls and says, "I told you so. But, you're still up on the trade. Get out!" At the opening, you exit the trade, taking a $5,000 profit. It's your biggest profit of the year.


Then, day after day for the next six months, you watch the market continue to go in the direction of your original trade. You try to find another entry point and continue to miss. At the end of six months, your method finally, quietly, calmly says, "Get out." You check the figures and realize that your initial entry, if held, would have netted $450,000.


What was your problem? Simply that you had allowed yourself unconsciously to define "your" "normal" range of profit and loss. Who were you to shoot for huge gains? Why should you deserve more than your best trade of the year? You lacked self-esteem, so you abandoned both method and discipline.


To win the game, make sure that you understand why you're in it. The big moves in markets only come once or twice a year. Those are the ones that will pay you for all the work, fear, sweat and aggravation of the previous 11 months. Don't miss them for reasons other than those required by your objectively defined method.


The IRS categorizes capital gains as "unearned income." That's baloney. It's hard to make money in the market. Every dime you make, you richly deserve. Don't ever forget that. I wish you success.

Friday, December 25, 2009

MONEY SAVED IS MONEY EARNED



'Money Saved is Money Earned'
(An 'A to Z ' personal finance for you)

is very simple truth.here i would like to share all my wisdom here,that i have learned over years after spending too much and realised recently what a fool i was...

In all my workshops, i used to insist my participant only one thing , i.e.-Raise the Individual's 'Financial Quotient'-FQ.

Why to raise the 'FINANCIAL INTELIGENCE' ?
if, the individuals are aware about this they can be free from all their debt that burdens the family and their society or the nation as a whole.

The recession and other major financial debt burden that shook the world recently can be simply eradicated, if we all take/initiate an effort to educate the FQ among every individual including children. In my personal view, our educational system must incorporate the financial intelligence as part of the curriculam.

Our children/students need to learn this,that will enhance a better society which is free from the debt Burden/Recession and finacial crisis in micro and macro levels.Educate your child as much as you can about FQ. So that, it will make them to minimise their expanses and they also realise the hardwork involved behind that money.

for e.g -

  • if your child ask for you a 'New Pencil' often... Do not simply buy an give it- Ask the old pencil,even it is very small and un-usable no problem , just collect the old one and give a new pencil.This will make your child not only financially inteligent person but also as a responsible person.(Same thing for Eraser,crayons,water colours.)

  • Do not encourage them to eat more chocolates,kurekure and of that kind.it may spoil your child health and memory.
You can gift your child the ' MONOPOLY ' game board and play with your family.it is going to be fun,educative and enduring.(instead of wasting time in computer games that spoil eye sight)

Lack of FQ Will make the individual and society sick.if one is weak financially just by his/her own inefficiency that is not only going affect that individual/person , it will affect the family and the overall society as well . (I Remember the frog story)...

Why socialism in our world that failed was also because of the lacked financial intelligence of an individuals during those time.These individuals who were part and collectively made a society that failed. Here 'The rich will become poorer; and the poor become more poorer' Logically it is incorect.if the society need to be raised/uplifted,it is very much indeed to raise the 'FQ' among every individuals/ citezen of the nation who is going make the society as a whole ' rich and wealthy' . if this is achived then the situation is like - ' The rich will become more Richer and the poor will become Richer ' it is logically seems to be a right solution.


Wealth can be created if one is aware and keen in attaining it.Your passion to be rich will make you rich.i also insist you one more important thing is - 'choose your career as per your passion'.when one's passion becomes one's career that is the ultimate gift that life can offer unto oneself .what ever wisdom you have gained over years, you can very well share and encourage/educate your fellow mates to create wealth. only educate, do not offer money as a loan, it may spoil them and also your relationship or friendship with your beloved.

' Do not catch and feed the fish to sombody;
instead teach some one, 'HOW TO CATCH THE FISH ON THEIR OWN'

Here are the few steps ,
that nourishes your financial intelligence.

A. At first, Define your 'NEEDS and WANTS' . Spend within your limits. 'Your expenditure must be less than your income'.[Thumb Rule]

B. Avoid Over spending and 'Pay your-self first' Atleast every month save little money of your Earnings for your ownself. e.g.- 5% to 10% of your total income.

C . Carry a pocket note book with you every where. just write down all your out flow money when ever possible. At night, spend few minutes to look out your spending...make a total spending of that particular day.Now, just make a strike mark of the un-wanted spend-OUT's as per your heart and total the unwanted. just notice and be aware. ' Each penny counts '. understand the Micro finance properly.

D.Identify your money out-flow that is going for no use. for e.g.- i used to drink more tea as and when i wanted 'even i used to take tea after a meal ' which is not necessary,not only that it also spoil my health. 'Underline your your unwanted-wants! '

E.When you are going out with friends be watchful about your un-necessary spending . i did'nt mean to be stingy .You can always 'spend for the need'.

e.g. - When we go to hotel we simply order many items in the menu.Afterwards... unable to consume the whole food and simply waste it. [ Do not waste food.Many people in the world die out of hunger].

F.Always save money for the future needs and for your children educational needs and medical attention.Always keep some money for emergency for the unexpected.(if you have more children have more money for emergency) 'Safety first'

G.Have a finacial fore cast for daily,monthly and yearly basis. ' forsee the future '.

H.Do not make any hurry burry decision as far as your money is concerned. 'Be Affirmative unto your self ' be in your balance in all situations that may insist you to make wrong financial decisions. e.g.- Investing money for unusual intrest in private fund agency or such..give up all your greed.


I.Do not invest money ever in a single source,spilit it up your investments in fixed deposit,gold, land,stocks,etc. 'Personal portfolio is the best'. Here one must see the investment should not lie in a Savings A/c.because the infaltion will eat out.The investment should not be idle it must progress.So choose your advisors or do it on your own wisely.
J.Avoid credit cards, if you don't know how to use it for your favour. ' Check your own credibility ' .

K. Avoid / Do not encourage friends to ask money as a loan. 'Learn how to say NO'.

L. Do not avail loan for your wants, just because it is easily available.simply reject all phone calls that offer easy loan like EMI's. say strict NO. 'Un-Burden youself and be free from Debt '.

M.Invest your money wisely,i mean your investments must make an additional source of income on monthly basis.Like SIP-Systamatic investment plan. 'MONEY MAKES MONEY'. Vist our 'SEED' Blog> http://seed4wealth.blogspot.com/

N.if you are using car/bike plan your travel properly.Do not go round and around,have route map to attain your destiny point as shortly as possible,that save fuel.Go by walk when ever possible or when you are going to near by shoping. 'Save Time and fuel energy '

O.Have your own garden and do vegitation. if you have enough land around the house. 'Go green,support carbon credit'.you can also convert your terrace as 'Terrace garden' that give you a yield and reduce the heat during summer.
P.SAVE - Water and Electricity as much as you can." Energy saved is energy earned'
E.g.- ' SWITCH OFF ' The Monitor/Fan/Light When your are moving out of the room even for 10 minutes.You can save electricity by not using the electric heater for heating the water for bathing during summer time. ' Consume less energy'.Also suggest you to use alternate energy. e.g. Open terrace solar panels / miniature wind mills.


Q.Avoid drinking/Smoking/Tobacco chewing etc... to save money as well as to keep yourself healthy.'HEALTH IS WEALTH'.


R.Save money and also spend money for lifting the under-priviliged. Do charity and always be socially responsible.When you spend money for the good cause that for your society that will motivate you to make more money. 'MONEY SPEND IS MONEY EARNED'

S. Limit your telephonic coversation 'TO THE POINT' and there by you can cut down/reduce your fat phone/mobile bills.Communication can be made very effective in short duration by fallowing the 'KISS' Principle.(keep in simple and sweet). Apart from this choose the best sevice provider among the all. Check out all the schemes like pre-paid,post paid,roaming within State/Nation and so on with all service provider and select a best suitable player for your need as for as quality standards and cahrges wise concerned.Apply the same rule for your internet service provider.There are lot of hidden charges are there in the market place, just be aware and choose the best that suits&worth for the money you pay.

T.Eating out is just fun for many people in the family..I have seen in many family's, the member among them are keen in eating outside in a hotel. if your are very much concerned about your health reduce your habit of going to hotel frequently for food and also avoid eating junk food items.Mainly fried items, it immensely spoil your system/Health and that may lead you to a Doctor..and all testing,scanning etc.I need not to tell you about the hospital charges and the cost of medicine.So, do not eat food outside as posible as you can,that will be safe and also can cut down your medical bills.(Duedads)

U. Use 'Maximum' of all your resources effectively.Let me say, right from your kitchen - Save Gas ,avoid spilling of the provisions while cooking. Do not buy vegetable/fruits and other perishable items beyond 5 days need. E.g.- Rice flour,tomato,fruits -all these items will be rotten soon. ' BUY FOR THE NEED ' So,buy for the needs there is no point in storing too many perisable items in the kitchen.

V.Collect the wastes which is 'Recyclable' - You can collect the usefull/recyclable house hold waste like news paper,plastic bottles,milk covers,metal waste...and keep it in a separate place in your house like car shead and put all these wastes together in a box , when ever you find them. Every Three/Six months once call your scrap vendor and sell it for weight basis, you may surprise to see some good money.Keep this money and Use it only to buy a health items/equipments.

e.g.-Health drinks like Horlicks or GYM equipments etc.

This act of your's can save the nature - the paper can be recycled and there by save some tree's which used to cut for manufacturing papers in the paper mills.Support to recycling and 'SAVE NATURE'.

W.If you have some creative talents just identify it and fuel your creativity as much as you can.For e.g.- if you are good at art/craft/painting do it in your leisure time.'Grow your passion of creation' .it can help you to relax so much from all your occupational stress.Not only this you have one more advandage from your creation..whatever items you produced you can gift to someone when you are attending Birth day parties or marriage etc.You can avoid buying gift items outside,instead create your one as per the taste of your closed one's and present them,that will impress them so much with your personal touch.

X. Plan your outings/Tour trips well in advance and book a tickets as per your plan.Your planning and scheduling must be skillful .it could be- time saving,the mode of transport and the boarding arrangements etc. Package tour can be good.because you can simply free from lot of burden booking this and that.The tour operators can handle it in better way,for example they know the short routes to connect various detinations and the timings when and where. The point here, i need to make is...avoid un-nessary stay over in hotels,you need a stay only during night after a long journey,so that you can be fresh in the mornings and go around the places/spot and enjoy it throughly.

Y. Keep your mind open for the opportunities around. Be watch full and keep information upto date.For example- every day the technology is getting advanced,if you need to buy a laptop,you must be aware what is the system configurations required that suits you the most and its availability.The Ram,hard disk,processors and the mother board compatability.This will make you to aware about the best buy for the reasonable cost.During festival time there will be lot of offers,price discount,additional gift etc.Make use of such an oppurtunity.

Z. ' Zeal and zest ' that needs to be there as a under-current in your being.That will make your life complete...what ever you may do will be wonderfull and blissful .be in tune with yourself and compassionate to other beings and stay healthy and wealthy.


NOTE- *The Bold and Italic quotes within the
'Quotation'
will be explained in detail latter on.*

===============
Written By.Ramani.G
(This article is copy righted need permission for re-publication anywhere)

Thursday, December 24, 2009

How to save money when money is tight


- By Kevin Yu
Here are five suggestions on where to start:
1. Prioritize
Take control of your household budget by logging every dollar you spend in a 30-day period. Once you face a month's worth necessities then you can begin to prioritize expenses and find ways to save.
2. Build an emergency fund
Put savings into a special account to be tapped only in a crisis, such as losing a job. Six months of living expenses is a rule of thumb -- longer if you're self-employed or the family's sole breadwinner
3. Be creative
The Internet is a great resource. Take advantage of online retailers' discounts posted on shopping. You can also save and give at the same time.
4. Pay yourself first
You can't spend what you don't see. Send automatic deductions from your paycheck directly to a savings account.
5. Walk the talk
Live by example. Festival sales are everywhere, but you don't have to buy. Communication is the key, especially in these trying, tense times. Talk with your spouse and family about money values and short-term and long-term savings goals, and then decide how to fulfill them.


Sources:
1.
http://www.nytimes.com/2003/07/06/business/l-personal-finance-in-the-classroom-399710.html?scp=5&sq=personal%20finance&st=cse
2. http://finance.yahoo.com/personal-finance
3. http://www.marketwatch.com/news/story/how-you-can-save-more/story.aspx?guid=%7B06ECC51F%2D1664%2D462E%2D9545%2D7F3046D4B44C%7D

The Cat Finally jumped to the BULLS Side.

NIFTY - INTRADAY GRAPH
NIFTY-5DAY GRAPH
As i stated earlier in my previous post about the 'mid point' from where the cat is preparing to jump -(on 23rd nifty future ') The Cat Finally jumped to the BULLS Side.
The HIGH JUMP was totally unexpected by many/most of the trader including myself.why this certain jump..the nifty can go to any high or bottom as an when it wanted as per the wish of some cause...honestly unable to predict or understand what cause that drives the market just exactly like today..all technical and logical reasoning utterly failed.
We always need to prepare and plan ourself for this kind of unexpected.What i try to say is ' EXPECT THE UNEXPECTED '.
In the market anything may tend to happen at any time ; act wisely as quick as possible as and when it is required to make a instant decision like today market to safe guard our investment.

The history repeats itself. have more experience and be tactful to make more money and more fun.WISH YOU ALL THE BEST.


Tuesday, December 22, 2009

NIFTY TODAY




Today the market opening was simply great, a gap up opening almost 30 points. when many traders were expecting a gap down opening ; May be because of that the market just gaught in between the Day high-4999.90 <-> Day low-4967.10.The movments was narrowed within 37 -points
The 5.30 market hours was such a narrow bounded and made the traders spiritless..i feel the market come to an conclusive end of the mid point from where it can jump to either sides.This is what they call ' cat on the wall '.in today the market was unable to hit the 5010 level and unable to break down 4926 level.The market closed near the day high that give hope among the bulls.
let see what will happen tomorrow.

GOLD- The Raising Star

Chart Source: Bonner and Partners' family office
The Gold price continiously raising year after year in the last decade.i would like to have the chart of gold for the last 25,50 and 100 years..if any one of you have come across the same kindly provide the chart for me.i need this historical data for an anlysis.
The GOLD seems to remain right liquadable investment ever.Let us wait to see it progress for the coming years.

MAKE CONSISTENT PROFITS IN GOOD AND BAD MARKETS

'SUPER TRADER'
MAKE CONSISTENT PROFITS IN GOOD AND BAD MARKETS

The essence of this above titled book is here -

In Van Tharp’s latest book “Super Trader ” he provides ten common characteristics frequently found among the best of the best among the hundreds of traders he’s worked with throughout his career. I feel sharing this content to our beloved readers and make them a good trader or super trader.
  • They all have a tested, positive expectancy system that’s proved to make money for the market type for which it was designed.
  • They all have systems that fit them and their beliefs. They understand that they make money with their systems because their systems fit them.
  • They totally understand the concepts they are trading and how those concepts generate low-risk ideas.
  • They all understand that when they get into a trade, they must have some idea of when they are wrong and will bail out.
  • They all evaluate the ratio of reward to risk in each trade they take. For mechanical traders, this is part of their system. For discretionary traders, this is part of their evaluation before they take the trade.
  • They all have a business plan to guide their trading. You must treat your trading like any other business.
  • They all use position sizing. They have clear objectives written out, something that most traders/investors do not have. They also understand that position sizing is the key to meeting those objectives and have worked out a position sizing algorithm to meet those objectives.
  • They all understand that performance is a function of personal psychology and spend a lot of time working on themselves. You must become an efficient rather than inefficient decision maker.
  • They take total responsibility for the results they get. They don’t blame someone else or something else. They don’t justify their results. They don’t feel guilty or ashamed about their results. They simply assume that they created them and that they can create better results by eliminating mistakes.
  • They understand that not following their system and business plan rules is a mistake.

Monday, December 21, 2009

LOW VOLATILITY MARKET


As we see especially the last few months the market were showing ashallaow movements.it caught in between the narrow walls and unable move beyond the range.it is a range bound market.when we look back the previous years the 2009 is seems to be unique and it is a kind of restricted trends that drive the market and spoiled the spirit of the active traders.
we hope the 2010 will show more swing and give us all good yield of return.

Sunday, December 20, 2009

STOCK PARAMETER


WHAT IS STOCK PARAMETER ?
WHY DO WE NEED THESE PARAMETER?

An investor need to know everthing about the company he/she is going to invest.while investing one need to be aware about the risk involved in investing a particular equity stock.Not only that the investors are very keen about the 'Return On Investment'. (ROI).
.
The ROI is the main purpose of any investments. Each investor is really keen on their investment safety first, and make sure it is going to the right hand that tend to appreciate day by day,year after years. The money once invested in a particular stock, we may not have control over our money. Hence, the money is handled by other people through various means.So the investor need to throughly analyse before investing.


Health Check Up- Anlysing a stock like a Doctor who does a complete health check up of the patient like- Blood pressure,Sugar Level and Heart Beat/Pulse Etc.
Here the investors must check up/make sure the pulse of the company before investing,through the company past performance's and so on. This will safe guard the investments they are going to Make.

Here ' STOCK PARAMETER ' will serve this purpose very effectively.

Here the parameters that help the investors are...

Face Value (F.V.)
The nominal value of scrip stated by the issuer.
Like Re.1.00,Rs.2.00 and Rs.5.00 Etc.Look out stocks equity to gain more dividend and bonus shares.
Book Value (B.V.)
Book Value is the net worth (Equity Capital plus reserves and surplus) divided by the number of shares outstanding.
Market Price (M.P.)
The current market price of the security traded on NSE/BSE. The market price is often vary time to time according to the trend of the market.
The investor really need to wait for the right price/buy at low in the market as low as one can.This need some skills of market trend UP/DOWN.
Market Capitalization (M.Cap.)
It is defined as the value of corporation as determined by the market price of its issued and outstanding common stock. It is arrived by multiplying the closing prices of shares with fully diluted equity capital.
Volume
The average quantity of shares transacted over a period of 15-Days on BSE and NSE.The heavy volumes may indicates the demand.
52 weeks High/Lows
The 52 weeks High /Lows represents the highest and the lowest point attained by a share during the immediately preceding 52 weeks.
Price to 52 Week High/Lows
It has been arrived by dividing the current market price of the stock by 52 Week High/Low. It indicates how the stock has performed over the period of 52 Weeks. To interpretate P52WH, the lower the ratio, the more unattractive the stock. Similarly, the higher ratio for ratio for P52WL, the more attractive the stock.
Earning per share (EPS)
EPS is net profit calculated on a trailing 12 months basis (Aggregate net profit of four consecutive quarters ) divided by fully diluted equity capital
Price to Earning Ratio (P/E)
It has been arrived at by dividing the day's closing price of a script by its earning per share (ESP).when you see a high P/E Ratio share it is mant time give low return in the near future.
when a stock seems 'strong ' by using the other parameters One need to also look out the LOW P/E Ratio, so that the chances are there for the future P/E yield will be high.
Promoters Stake
It is the percentage share holding of promoters in the equity capital. It includes government's holding in case of public sector undertaking .
a. if, the Govt/Public Sector investment is strong,this indicates the company creditibility/strength.
b. if, the promoters holding is storng ,it is a good symptom for investors. for e.g.- DLF percentage of promoters holding is very strong.
Beta
Beta is the shares sensitivity to market movement. It indicates how much the scrip move for a unit change in the market scrip. Beta could be positive or negative.
A negative beta -indicates that the share moves in a direction opposite to the market. The beta of the index is 1. A higher beta indicates the stock's movements are sharper than that of the market index.
Stock return
Stock return tells about how much return a particular stock has given over the past 1-month,
3- months and 1-year.
Equity
It is defined as the latest subscribed equity capital.
Networth
Networth determines the value of the company. It is calculated as the difference between total asset and total liabilities. It is composed of primarily of all the money that has been invested since its inception, as well as the retained earning for the duration of its operation.
Book Closure
A company closes its register of member for updating the records to facilitate payment of dividends or issue of rights of bonus shares.
Book closure is the period during which this process is done and deliveries are not effected in the clearing house.
Dividend
Dividend is defined as the distribution of a portion of a company's earnings, decided by the board of directors, to its shareholders.
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Dividend is a boon for long term investors.In many countries the divident is 100% Tax free.So the investor can invest for a long term and enjoy the tax benefits and also enjoy 'ROI' on yearly basis apart from the regular ROI.
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Also see the post who will decide the dividend?..in this same blog.

Link>http://wealthtrainer.blogspot.com/2010/10/what-are-dividends-and-when-theyre.html

Basics about Fundamental Analysis -' FA '

What you mean by 'Fundamental Analysis' ?

Fundamental analysis

is a stock valuation method that uses financial and economic analysis to predict the movement of stock prices. The fundamental information that is analyzed can include a company's financial reports, and non-finanical information such as estimates of the growth of demand for competing products, industry comparisons, and economy-wide changes.


Main Strategy
To a fundamentalist, the market price of a stock tends to move towards its intrinsic value. If the intrinsic value of a stock is above the current market price, the investor would purchase the stock, and if the intrinsic value of a stock was below the market price, the investor would sell the stock.


To start a fundamentalist makes an examination of the current and future overall health of the economy as a whole. In this step you should attempt to determine the direction and level of interest rates.


After you analyzed the overall economy then analyze firms individually. You should analyze factors that give the firm a competitive advantage in its sector such as management experience, history of performance, growth potential, low cost producer, and etc.


Perspectives of Stock Fundamental Analysis

There are so many ways/Tools are there to analyse a particular company stock.here i would like to include the most five- fundamental/general analysis for your attention.Today the Instution/mutual fund investment corporates are having their own coustomized analysis to anlyse a equity.


1- EPS: (Earnings Per Share)

The portion of a company's profit allocated to each outstanding share of common stock. The amount is computed by dividing net earnings by the number of outstanding shares of common stock.

For e.g.- A corporation that earned Rs.10 Crores last year and has 10 lakhs shares outstanding would report earnings per share of Rs.100.


2- P/E Ratio: (Price/ EPS)

Its also called its "earnings multiple", Price of a stock divided by its earnings per share. The P/E ratio may either use the reported earnings from the latest year or employ an analyst's forecast of next year's earnings. P/E gives investors an idea of how much they are paying for a company's earning power. An important notice here is that the P/E ratio is ultimately not an objective measure; a high P/E ratio might show an overvalued stock, or it might reflect a company with high potential for growth.


3- Dividend

Dividend is an amount of the profits that a company pays to people who own shares in the company. When a company earns a profit, some of this money is typically reinvested in the business and called retained earnings, and some of it can be paid to its shareholders as a dividend.


4- Book Value

The book value of an asset or group of assets is sometimes the price at which they were originally acquired ( historic cost ), in many cases equal to purchase price.


5- Growth Stocks

Growth Stocks in finance , are stocks that appreciate in value and yield a high return on equity (ROE). Analysts compute ROE by taking the company's net income and dividing it by the company's equity. To be classified as a growth stock, analysts expect to see at least 15 percent ROE.

"Hug for the World"-motivational video

Fallow this link to watch the inspiring video from you tube "Hug for the World" it is one of my Most Inspirational Video's.i wish you to enjoy the same.

http://www.youtube.com/watch?v=pEN8KH-Buh4&feature=related

Saturday, December 19, 2009

DO NOT ACCOMMODATE TOO MANY TRADE'S AT THE SAME TIME

'One can not chew to many cakes at the same time'.
just eat one by one and enjoy the taste of the food.Let your system absorb the food completely.
"Chew your food and don't swallow it!"
- if you swallow the food in a hurryburry way, your stomach may upset that spoil your health.
----
Create your wealth as a 'PASSION'.
Be totally into it without Greed and Fear.
The greed and fear are the Two enemies of your wealth.

As i used advice to many of my fellow traders that, Do not take too many positions/trade at one point of time.Many time the market induce the traders mind and dispel their trading inteligent;the trader simply unaware what is going to happen,they simply jump and take too many positions at a time.The market may swirl like a wild strom at anytime, just by a small news or rumours..This may change the trend of the market and go aginst your current position..So..

ALWAYS BE AWARE
1.'Be Aware - ' The RISK's involved behind each and every trade that you may make.
2.Be calculative of the the trade which you are about to make.Have pre-plan on both sides PROFIT/LOSS.
3.Manage and utilise your money/investment wisely and precisely as much as you can.
4.Do not take positions beyond your affordability/capacity.just because it is available or the over limit provision given to you by your broker.
5.Dont be greedy and Do not encourage yourself to make money too fast.just go step by step and be rooted in the ground reality.
6.Loosing money is as easier than the money you try to make out from the market.so be smart enough to keep your investment safe.safety first is first thumb rule here.
7.Be focus on one trade and sqaure it with a profit and wait for the right moment for the next trade,if there is no chance for you again to make a trade,..nothing maters;it is wiser to be idle than loosing money.Don't do trading for the sake of trading. Just be cool,relax now and than. many time rest/calmness is required to have a more clarity that will enhance your skills of trading.
8.In my experience i have seen many traders, trade in the market to recover their prvious losses.They used to be bit aggressive trader without being aware about the current trend that plays in the market environment.it is a very bad attitude of a trader. just be fresh and blank and approch each and every of your trade as a new trade with new approach , and this will make you to understand the current scenario of the market.
9.'UN-LEARN' - I Say,'unlearning is as important as learning'.
Many time too much of knowledge spoil your trade and decision making.knowledge courrupts.you simply make too many technical analysis/parameters and miss the real pulse of the market. so 'IGNORANCE IS BLISS'
10.Consistency is one of the main aspects of a succesful trader.Because they never overboard.
11.Too many positions can easily put you in a state of confussion/ imbalance, if you are not good enough to monitor. So it is always better do deal one or two positions at a time that too in one segment of The market.i.e- F and O / Equity.
Lastly,but not least,i need to convey unto you is-
' one can not reach the destiny by keeping one's leg in two boats'

Thursday, December 17, 2009

Mr Zuckerberg,(FOUNDER)FACE BOOK,Youngest Millionaire



Mark Zuckerberg
Born May 14, 1984, was a Harvard undergraduate when he started the Facebook social networking website. An early fan of computers who had developed a "smart" mp3 player in high school, Zuckerberg had previously been reprimanded by the Harvard administration for his Facemash site, a Harvard-specific photo rating site that operated like HotOrNot.com but used photographs taken from Harvard's online facebook, without the subjects' permission. (A facebook, lower-case, is a collection of student photographs designed to introduce students to each other.)

In February of 2004, he started "The Facebook," which took the goals of those lower-case traditional facebooks and combined them with the social networking of Myspace-like sites. Unlike Facemash, The Facebook was opt-in -- any Harvard student could create an account, and by the end of the month, more than half of the undergraduates had done so. Zuckerberg expanded the service quickly, offering it to all Ivy League schools by the end of the spring and more schools the following semester. The Wirehog site was created as a companion filesharing site for Facebook users, and by the end of 2004, The Facebook had over one million registered users.

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The advertising revenue made it easier to raise venture capital, and Zuckerberg and his associates purchased the facebook.com domain from its previous holder and dropped the "The" from the site's name. Over time, Facebook became more and more inclusive, opening its doors to all college students, faculty members, and alumni (anyone with a confirmed educational-domain email address), and in 2006 added networks for high school students. Since fall of 2006, the site has been open to anyone who wishes to join -- a shift away from the student-centric origins which many users have decried.

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Meanwhile, a Craigslist-like Facebook Marketplace has been added to the site, along with a platform for offering applications. Microsoft purchased a 1.6% stake in the company for $240 million in October of 2007, and the following month the Facebook Beacon service premiered -- a controversial initiative that blends marketing and social networking, which has come under considerable criticism for the way that it can broadcast information about a user's activity outside of the Facebook site, without adequately warning them.

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Zuckerberg moved to Palo Alto to operate Facebook full time, taking a leave of absence from Harvard; the Facebook offices now occupy four downtown buildings.

Trading hours for Indian stock markets will change from '4th jan 2010'

India's current trading session is for around 5.5 hours, and will increase to 6.5 hours
from 4th January 2010; Data Source: Bloomberg reports



After much confusion comes the final decision. Trading hours for Indian stock markets will increase by around 55 minutes starting January 4, 2010. Both the leading stock exchanges - BSE and NSE - will then be open from 9 am to 3.30 pm. This change in timings comes as part of the SEBI's earlier proposal to increase trading hours to reduce the gap with other Asian markets that open ahead of India. As today's chart of the day shows, trading hours in India will now match those in Singapore and the US.

* India's current trading session is for around 5.5 hours, and will increase to 6.5 hours from 4th January 2010; Data Source: Bloomberg reports.
who will benefit from this increase?
Brokers won't - as their costs would increase as they would probably require two shifts to match Asian markets' trading hours. Fund managers won't - as they would get less time on research and analysis of companies and spend more time looking at the ticker tapes.

NIFTY TODAY -Pre-Market study


As per the yesterday graph shown above the NIFTY may Rebound back into its range bound trading , to attain this the market may sustain and slightly move up towards 5090 plus level.
NIFTY -Yesterday
HIGH- 5067
LOW- 5001
CLOSE-5042

NIFTY TODAY

S2-4971

S1-5006

PIVOT-5037

R1-5072

R2-5102
------------

Today nifty may be 'back to square one' and move/try to sustain the level above R1.The opening may be a marginal gap down and from there it may claim up to the Hurdle Range-'5042'.

if, it can crossover this 5042 level with massive buying may lead the NIFTY to break y.day high and can go to 5082 level and beyond.

BE A SUCCESSFUL TRADER


Who can be a Successful traders?
The Answer is "YOU"

(If you fallow these dicipline's)


* Successful traders have absolute control over their emotions, they never get too elated over a win and too depressed over a loss.
* Successful traders seldom think of prices too high or low.

* Successful traders do not panic, they make adjustments rather than revolutionary changes to their trading style.

* Successful traders do not flinch at making the decision to take a loss, they never let loses ride and never add to loosing trades. (One old trader told me he thought his positions like stock in a store. If something sells it’s making you money and you add to that line, if something does not sell it is losing you money so you discount and unload it).

* Successful traders treat trading as a business not a hobby.

* Successful traders stay physically fit.

* Successful traders are prepared for all eventualities on any given trading day. they come to work with a plan that includes many contingencies and not what they just hope will happen.


* In your trading program you should therefore have answers to the following what if:prices open sharply higher or lower?


The market is quiet?

The market is very volatile?

The market makes new highs?

The market makes new lows?

The market goes up early then reverses later?

The market goes down early then reverses later?


* The successful trader only trades with money he/she can afford to loose.

* Trading can result in substational looses. It is also exciting, exhilarating and can be very ADDICTIVE. The more you are emotionally involved in your money, the harder it will be to make objective decisions about market entry and exit.


* Successful traders spend as much time focussing on money management as they do on trading methods.YOU DO NOT HAVE THE PROFILE OF A SUCCESFUL TRADER IF YOU DO NOT HAVE AT LEAST SOME OF THE ABOVE TRAITS.


* Successful traders keep a low profile.* Successful traders listen to the markets. Unsuccesful traders try to impose thier will on the market.


Article Source- Mr.ILANGO,JUST NIFTY
He is one of my inspirations to trade in nifty

Wednesday, December 16, 2009

An extraordinary mind-' Paul Samuelson changed economics forever '



Paul Samuelson changed economics forever The world of economics lost one of its greatest stalwarts on Sunday as Paul Samuelson passed away at his Belmont, Massachusetts residence at the age of 94. Samuelson is credited with having provided the study of economics with the mathematical tools that have become indispensible to economic analysis today. In that sense, he is responsible for transforming economics from an essentially theoretical field of study to a practical science. His defining books Economics and The Foundations of Economic Analysis, changed the way academicians, politicians and the general public looked at economics.
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Most of what is taught in economics at the high school and undergraduate levels across the world today is fundamentally based on Samuelson’s books. In 1970, Samuelson became the first American to be awarded the Nobel Prize for Economics for doing, according to the Swedish Academy, “more than any other contemporary economist to raise the level of scientific analysis in economic theory”. Apart from his academic achievements, Samuelson also had a significant role in shaping American economic policies during the Kennedy era. It was on the basis of his advice that John F Kennedy used to formulate his economic agenda.
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But Samuelson’s lasting legacy is his propagation of the Keynesian model of economics. It is because of Samuelson’s efforts in popularising Keynesian economic principles among academicians and politicians alike that the world at large has dumped the concept of an absolutely free market economy with no Government control. As a result, even the most capitalist economy today is one that is regulated to a certain degree. This has held the world in good stead, something that can be gauged from the way Governments around the world have handled the recent economic crisis. Unlike the Great Depression of the previous century, this time around Governments responded by undertaking a slew of financial stimulus packages. The response has been rooted in Keynesian philosophy and has stemmed the freefall the global financial system seemed to be stuck in. Hence, had it not been for Samuelson and his work, the latest financial crisis would have been far more devastating than it turned out to be. Finally, no tribute to Samuelson can be complete without acknowledging his contribution to the economics department of the Massachusetts Institute of Technology. It was through a lifetime of hard work that Samuelson turned MIT into a leading institution for economic studies. It would be apt to say that it was due to Samuelson that MIT was able to attract brilliant students such as George A Akerlof, Lawrence R Klein, Paul Krugman, Franco Modigliani, Robert C Merton and Joseph E Stiglitz who in turn went on to win Nobels themselves. With Samuelson’s death, the world has lost a brilliant mind.

Tuesday, December 15, 2009

NIFTY -PRE-MARKET STUDY FOR 16 DECEMBER

Nifty fell down from 5125 level to 5020 approx.After about two weeks,nifty future First time broke the rangebound and came down 5018 level .A long waited fall has come true today.Now nifty is in over bought zone and a new expectation among trader is, it may fall further.In my view the nifty 20DMA today Is just 1-point less than yesterday i.e 5080 Vs 5079 respectively.Very negeligible change as far as DMA is concern. Tomorrow the nifty may open above the pivot and expected to touch 5097 and it may go up to the R1 Level.There is a hurdle for nifty in 5137,crossover with volume will lead nifty to 5173 level.
NIFTY TODAY
HIGH- 5129.45
LOW - 5018.25
CLOSE -5033.05
NIFTY TOMORROW
S 2-4949
S 1-4991

Pivot-5060
R 1-5102
R 2-5171
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TREND REVERSAL..May be possible.
There may be a change in nifty direction/trend.play safe while going long/short.if nifty trade above the 20DMA Avoid short.or keep 5090 as your stoploss.

The Global index's is not giving a clear cut direction/insights.As though the world index's shows the mixed cue's.


NIFTY -PRE MARKET STUDY TODAY,THAT WORKED WELL

Our pre-market study That worked very well for today trading . we have done some pre-study for today market and posted the same for our valuable readers.many people thanked me for the exact prediction stated and that helped the day trader to mint money.In response to this,many over-whelming mails have come and the inbox is filled. i am very glad to notice this,but on the same time i also request the reader to make out their own decision During trading hours.One may fallow any number of sites and its recomandation as well as rumours...nothing wrong in it,but fallow your own 'Trading Instinct' and the decision making that helps the individual a lot. we have nobody to blame for our good and bad.The GOOD/BAD is the choice of the individual.So take resposibility our all your action.
As we stated early morning in this site 'the market fall from the day high almost 100 plus points' .
if , anyone would have fallowed and done a trading as per the suggestion given ,one would have made Rs.5000.00 profit in intraday.(NIFTY Mega 1 lot-50x100=5000).
*******
Anyhow our intention is to create the wealth for all our viewers.


Why Indian Market Stuck Within the Range Bound

FOR THE BETTER VIEW OF THIS GRAPH-DOUBLE CLICK ON TOP
The market is really stuck within a narrow range bound.The graph of nifty for the past five days shown above...shows the trading was really tussle between two walls up and down from 5082 to 5188.The real trading activity is limited Between 5094 to 5167..it was a kind of mood breaking /very shallow.it is not able to break up/down decisively with volumes..very sober trading Days.

My views for tomorrow i.e 15th Dec, the market may fall after a long stagnation..the bears may take charge of it...the advance tax report is going to come..something is hidden..there is a reasons-to make up.

NIFTY ON- 14/12/2009
HIGH-5156.70
LOW - 5090.15
CLOSE- 5105.70

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NIFTY FOR -15/12/2009
S 2-5050.95
S 1-5078.30

Pivot-5117.50
R 1-5144.85
R 2-5184.05
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' NIFTY ' 20 DAYS MOVING AVERAGE - 5081

KEEP STOPLOSS FOR ALL YOUR LONGS.

If the market 'open above the pivot just observe a while to identify the trend' of the market and also keep an eye and ear in the media news..than decide and jump to take a position accordingly.For short keep R1,R2 as stop loss.

for long keep yesterday low as a stoploss OR keep the 20days DMA As a SL .

WISH YOU A HAPPY TRADING.

'LET US MAKE ABUNDANCE WEALTH'


Monday, December 14, 2009

Dead Cat Bounce - video




Many Times During our trading hours, we used wait for the right moment to enter into the market simply by Buying some stocks / Derivative / Commodities... we simply wait,wait to gain a better price or expect a some more lower price , so that we can have some mileage and a kick back momentum to exit...In those times the market really test all our patiance.. it won't come down, instead it certainly jumps up within no time for no reasons...By the time now, All our patiance will be gone and we really don't know what to do at this point....??

We make a hurry burry decision to buy the script at the current level- high/Market price...just by Thinking/Assuming it will go further high's ,so that we can make some profit/ money out of it. The price at what level we bought may be the highest price of that day.in this kind of situation, 'what happens many times are , the market totally change it direction' ( U -TURN) from up to down (FALLING KNIFE) and even some time break the earlier low points... un to the lowest.

What is all this ?

This is what called the ' DEAD CAT BOUNCE '.
I Have found the above video in youtube that simply and very effectively elaborated all this fact in Neat format. A single picture is fair enough to tell thousand news/stories.. is proved once again.