Shares , a sure way of income !!!

Factors that decide the share market index .

2007-12-23T17:53:00.000-08:00

hi

well we all know share price falls or goes high
have we ever thought what all factors decide the price of a share ?
most positively, we would have but wouldnt have known fully

here are some tips for trading shares for some beginners who may lose consecutively since they may not know the market analysis, the facts that determine the share market growth or fall are

1. The global economy decides the share market sensex ( index points )
eg: when the currency exchange for indian rupee goes below, indian share market falls down
that is because of the effect of global economy

2. Natural calamities
eg: when earthquake strikes gujarat, share market index points goes down rapidly
also when there is earthquake in indonesia, still our indian share market has its consequences, it falls down

3. Politics
Not only politics plays a role in country economy, but also in share market
analysis shows that the change of political party, ruling or opposite may have a drastic effect on the share market

4. Gold market
As the gold value rises share values go down, exceptionally this ( month of december year of 2005 ) , gold market and share market are rising together

The most important thing with the gold market rise and share market rise, india is now a developing country and in its full fledge of development. So the value of all products within the country is rapidly rising. We have seen a sudden rise in real estate, gold and now in shares. This could be due to foreign investors, who would like to put a capital and gain twice or thrice of it. So the status of a country will be the main reason to decide the share market.

it is advisable for the beginners to avoid trading at the peak of the bull period, since at any time it may fall to the drastic bottom of the market.
to share in bear period is very dangerous without knowing "market analysis"

in the following posts we will see the best easy way to earn and what is called " SEASONAL EARNINGS "

Dont miss this traders !

2007-12-05T00:44:00.000-08:00

hi

A trader usually has to pass through three stages

1.Every trader loses initially :

Every investor who comes for trading initially gives losses as he/she is unable to have control over his greed and fear. At times with all the information and luck in his favour, he makes profit, and then because of his new over confidence, trades more which results in his profit gone and also sometimes a portion of his capital gone, This cycle of fear of the losses and greed to earn more makes him initially give losses.

2.No profit and No loss :

Out of the total investors who enter the first stage, 80% of them finish off at the first stage only and after an year or two find that the stock market is not their cup of tea. So in the 2nd stage only the 20% investors try to break even in their trading and quite a lot of them are able to have control over their fear and greed with a result that they stop giving losses. Now these traders are ready for the 3rd stage.

3.Making profits :

This stage where a trader makes consistent profit i.e. he does not give loss cheque to the broker. In fact this is the stage which everyone wishes to have in the stock market. But anybody who wishes to come to the 3 rd Stage has to pass through the above 2 stages.

know which stage you are and try to make to the stage 3

all the best

Beat the Dow !

2007-11-24T18:43:00.000-08:00

DOGS OF THE DOW

The investing strategy which focuses on Dogs of the Dow was popularized by Michael Higgins in his book, "Beating the Dow". The strategy's simplicity is one of its most attractive attributes. The Dogs of the Dow are the 10 of the 30 companies in the Dow Jones Industrial Average(DJIA) with the highest dividend yield. In the Dogs of the Dow strategy, the investor shuffles around his or her portfolio, adjusting it so that it is always equally allocated in each of these 10 stocks.

Typically, such an investor would need to completely rid his or her portfolio of about three to four stocks every year and replace them with different ones. The stocks are usually replaced because their dividend yields have fallen out of the top 10, or occasionally, because they have been removed from the DJIA altogether.

Is it really that Simple?
Yes, this strategy really is as simple as it sounds. At the end of every year, you reassess the 30 components of the DJIA, determine which ones have the highest dividend yield, and ask your broker to make your portfolio as equally weighted in each of these 10 stocks as possible. Hold onto these 10 stocks for one calendar year, until the following Jan 1, and repeat the process. This is a long term strategy, requiring a long period to see results. There have been a few years in which the Dow has outperformed the Dogs, so it is the long-term averages that proponents of the strategy rely on.

The Premise
The premise of this investment style is that the Dow laggards, which are temporarily out-of-favor stocks, are still good companies because they are still included in the DJIA; therefore, holding on to them is a smart idea, in theory. Once these companies rebound and the market has revalued them properly (or so you hope), you can sell them and replenish your portfolio with other good companies that are temporarily out of favor. Companies in the Dow have historically been very stable companies that can weather any market decline with their solid balance sheets strong fundamentals. Furthermore, because there is a committee perpetually tinkering with the DJIA's components, you can rest assured that the DJIA is made up of good, solid companies.

By the Numbers
As mentioned earlier, one of the big attractions of the Dogs of the Dow strategy is its simplicity; the other is its performance. From 1957 to 2003, the Dogs outperformed the Dow by about 3%, averaging a return rate of 14.3% annually whereas the Dows averaged 11%. The performance between 1973 and 1996 was even more impressive, as the Dogs returned 20.3% annually, whereas the Dows averaged 15.8%.

Variations of the Dogs
Because of this strategy's simplicity and its returns, many have tried to alter it in an attempt to refine it, making it both simpler and higher yielding. There is the Dow 5, which includes the five Dogs of the Dow that have the lowest per share price. Then there is the Dow 4, which includes the 4 highest priced stocks of the Dow 5. Finally, there is the Foolish 4, made famous by the Motley Fool, which chooses the same stocks as the Dow 4, but allocates 40% of the portfolio to the lowest priced of these four stocks and 20% to the other three stocks.

These variations of the Dogs of the Dow were all developed using back testing, or testing strategies on old data. The likelihood of these strategies outperforming the Dogs of the Dow or the DJIA in the future is very uncertain; however, the results of the back testing are interesting.

Before you go out and start applying one of these strategies, consider this: picking the highest yielding stocks makes some intuitive sense, but picking stocks based strictly on price seems odd. Share price is a fairly relative thing; a company could splits shares but still is worth the same, simply having twice as many shares with half the share price. When it comes to the variations on the Dogs of the Dow, there are many more questions than there are answers.

Dogs Not Fool Proof
As is the case with the other strategies we've looked at, the Dogs of the Dow strategy is not fool-proof. The theory puts a lot of faith in the assumption that the time period from the mid-20th century to the turn of the 21st century will repeat itself over the long run. If this assumption is accurate, the Dogs will provide about a 3% greater return than the Dow, but this is by no means guaranteed.

Conclusion
The Dogs of the Dow is a simple and effective strategy based on the results of the last 50 years. Pick the 10 highest yielding stocks of the 30 Dow stocks, and weigh your portfolio equally among them, adjusting the portfolio annually, and you can expect about a 3% out performance of the Dow. That is, if history repeats itself.

all the best

Efficient market hypothesis

2007-11-22T17:06:00.000-08:00

There are three common forms in which the efficient market hypothesis is commonly stated — weak form efficiency, semi-strong form efficiency and strong form efficiency, each of which have different implications for how markets work.

Weak-form efficiency

No excess returns can be earned by using investment strategies based on historical share prices.
Weak-form efficiency implies that Techinical analysis techniques will not be able to consistently produce excess returns, though some forms of fundamental analysis may still provide excess returns.
In a weak-form efficient market current share prices are the best, unbiased, estimate of the value of the security. Theoretical in nature, weak form efficiency advocates assert that fundamental analysis can be used to identify stocks that are undervalued and overvalued. Therefore, keen investors looking for profitable companies can earn profits by researching financial statements.

Semi-strong form efficiency

Share prices adjust within an arbitrarily small but finite amount of time and in an unbiased fashion to publicly available new information, so that no excess returns can be earned by trading on that information.
Semi-strong form efficiency implies that Fundamental analysis techniques will not be able to reliably produce excess returns.
To test for semi-strong form efficiency, the adjustments to previously unknown news must be of a reasonable size and must be instantaneous. To test for this, consistent upward or downward adjustments after the initial change must be looked for. If there are any such adjustments it would suggest that investors had interpreted the information in a biased fashion and hence in an inefficient manner.

Strong-form efficiency

Share prices reflect all information and no one can earn excess returns.
If there are legal barriers to private information becoming public, as with insider trading laws, strong-form efficiency is impossible, except in the case where the laws are universally ignored. Studies on the U.S. stock market have shown that people do trade on inside information.
To test for strong form efficiency, a market needs to exist where investors cannot consistently earn excess returns over a long period of time. Even if some money managers are consistently observed to beat the market, no refutation even of strong-form efficiency follows: with tens of thousands of fund managers worldwide^], even a normal distribution of returns (as efficiency predicts) should be expected to produce a few dozen "star" performers.

2007-11-20T09:25:00.000-08:00

'Investments' is a sacred term for individuals. For many, investing means a kind of 'compulsory' savings from one's earnings and getting lumpsum money later.

However, there is a lot more to investing than just that. Investing falls within a broader gamut of financial planning. It requires considerable thought and groundwork. Here, we have outlined some important guidelines to be borne in mind while planning your finances.

1. Do your homework

Before investing your money, ensure that you have done your homework well. It is 'normal' for sales pitches to be aggressive. Most sales executives are mainly interested in 'commission earned' or 'business garnered', which reflects in their monthly targets. That is why one only gets to hear the 'best case scenario' from agents/sales executives.

A lot of sales agents/consultants try to exploit the individual's vulnerability and lack of knowledge while making a sales pitch. For instance, how else can you explain so many individuals in the low-risk category investing in high-risk ULIPs?

Or why term plans, in spite of being the cheapest form of insurance, are still not bought by most individuals? Or why mutual fund IPOs find so much favour with investors even when there is no fit in their portfolios?

One should understand his own profile in terms of income, risk appetite and future plans and only then, make investments in tune with the same. Individuals need to know what benefits different products offer and how they fit into their financial portfolios before taking a call on investing in them.

You must listen to advice from different quarters but the final decision should rest with you alone after a careful analysis. After all, it's your own hard-earned money.

2. Keep your eyes and ears open

Keep your eyes and ears open at all times for any investment opportunity that comes your way. The opportunity could be by way of changing market scenario or new product launches. Individuals shouldn't lose out on any opportunity just because they didn't know it existed.

Of course, this involves a bit of updating yourself with latest product trends, market conditions and changing economic scenario. This way, you will not be completely at the mercy of the consultant/agent to provide you with investment-related information and solutions.

3. Involve yourself

While buying any financial product, ensure that you have involved yourself at critical stages. For example, while taking life insurance, see to it that you personally fill all the details in the proposal form. I

nsurance agents many a times, used to, themselves, fill up details like the height and weight of the insured, his age and medical history among other things, based solely on their own judgement. They merely asked the individual to sign on the form at the end.

What individuals don't realise is that this can lead to rejection of claims at a later stage if discrepancies are found in the proposal form. The insurance company cannot be faulted for rejecting such a claim. It is a shortcoming on the agent's part who should have requested you to fill the form yourself, else fill it himself after verifying your details.

All the necessary medical tests should also be diligently given. As mentioned earlier, any 'false claims' might lead to rejections at a later date.

4. Inform your near and dear ones

This is especially true in case of life insurance. Inform your near and dear ones as soon as the policy is bought. If your spouse and/or parents know that you have a life insurance cover wherein he/they are nominees, they will be better placed to follow up with the life insurance company for the claim proceeds should something happen to you.

Typically, life insurance should not be so sacred that you don't broach the topic in the family. All related (and affected) parties must know exactly what needs to be done in your absence.

5. Maintain a logbook

Always maintain a logbook of your life insurance policies/investments. Individuals can and do have a variety of investments ranging from life insurance (endowment, term plan, ULIPs) to mutual funds and PPF/NSCs. A logbook should contain details about the same.

Over an extended period of time, it becomes difficult for one to remember or track investment details like maturity date, maturity value and rate of interest. This logbook will take care of that problem. Of course, it goes without saying that for the logbook to be really effective and useful, it should be updated periodically to reflect investments and redemptions.

This logbook should also include details of an individual's liabilities like home loans, personal loans, the amount outstanding on such loans, the EMI and business liabilities (in case the individual runs a business) among others.

Details of the logbook should also be shared with your dependents (spouse, children, parents). An important reason for making a copy is, in case of an unfortunate eventuality, the spouse knows his/her exact financial status. Also, one wouldn't want someone to come out of nowhere one fine day and stake a claim on the family's assets based on some 'fictitious' liability.

stay cool
succeed

Dow theory

2007-11-09T22:21:00.000-08:00

hi

in this post we will see what is the dow theory

The dow theory has the following six tenets

1. Markets have three trends

Dow defined an uptrend (trend 1) as a time when successive rallies in a security price close at levels higher than those achieved in previous rallies and when lows occur at levels higher than previous lows. Downtrends (trend 2) occur when markets make lower lows and lower highs. It is this concept of Dow Theory that provides the basis of technical analysis' definition of a price trend. Dow described what he saw as a recurring theme in the market: that prices would move sharply in one direction, recede briefly in the opposite direction, and then continue in their original direction (trend 3).

2. Trends have three phases

Dow Theory asserts that major market trends are composed of three phases: an accumulation phase, a public participation phase, and a distribution phase. The accumulation phase (phase 1) is when investors "in the know" are actively buying (selling) stock against the general opinion of the market. During this phase, the stock price does not change much because these investors are in the minority absorbing (releasing) stock that the market at large is supplying (demanding). Eventually, the market catches on to these astute investors and a rapid price change occurs (phase 2). This is when trend followers and other technically oriented investors participate. This phase continues until rampant speculation occurs. At this point, the astute investors begin to distribute their holdings to the market (phase 3).

3. The stock market discounts all news

Stock prices quickly incorporate new information as soon as it becomes available. Once news is released, stock prices will change to reflect this new information. On this point, Dow Theory agrees with one of the premises of the efficient market hypothesis.

4. Stock market averages must confirm each other

In Dow's time, the US was a growing industrial power. The US had population centers but factories were scattered throughout the country. Factories had to ship their goods to market, usually by rail. Dow's first stock averages were an index of industrial (manufacturing) companies and rail companies. To Dow, a bull market in industrials could not occur unless the railway average rallied as well, usually first. According to this logic, if manufacturers' profits are rising, it follows that they are producing more. If they produce more, then they have to ship more goods to consumers. Hence, if an investor is looking for signs of health in manufacturers, he or she should look at the performance of the companies that ship the output of them to market, the railroads. The two averages should be moving in the same direction. When the performance of the averages diverge, it is a warning that change is in the air.
Both Barron's Magazine and the Wall Street Journal still publish the daily performance of the Dow Jones Transportation Index in chart form. The index contains major railroads, shipping companies, and air freight carriers in the US.

5. Trends are confirmed by volume

Dow believed that volume confirmed price trends. When prices move on low volume, there could be many different explanations why. An overly aggressive seller could be present for example. But when price movements are accompanied by high volume, Dow believed this represented the "true" market view. If many participants are active in a particular security, and the price moves significantly in one direction, Dow maintained that this was the direction in which the market anticipated continued movement. To him, it was a signal that a trend is developing.

6. Trends exist until definitive signals prove that they have ended

Dow believed that trends existed despite "market noise". Markets might temporarily move in the direction opposite the trend, but they will soon resume the prior move. The trend should be given the benefit of the doubt during these reversals. Determining whether a reversal is the start of a new trend or a temporary movement in the current trend is not easy. Dow Theorists often disagree in this determination. Technical analysis tools attempt to clarify this but they can be interpreted differently by different investors.

dow theory is one of the strategies of share trading
all the best

ER diagrams

2007-10-28T21:20:00.000-07:00

this link contains the ER diagrams and class diagrams about the stock market and Inventory

http://rapidshare.com/files/65931246/ER_and_class.zip

for more details abt shares check the blog !
lol

Basic 12 methods to know before investing on shares

2007-10-10T09:26:00.000-07:00

some methods for an investor to know while investing on shares

1. Buy low-sell high. As simple as this concept appears to be, the vast majority of investors do the exact opposite. Your ability to consistently buy low and sell high, will determine the success, or failure, of your investments. Your rate of return is determined 100% by when you enter the stock market.

2. The stock market is always right and price is the only reality in trading. If you want to make money in any market, you need to mirror what the market is doing. If the market is going down and you are long, the market is right and you are wrong. If the stock market is going up and you are short, the market is right and you are wrong.

Other things being equal, the longer you stay right with the stock market, the more money you will make. The longer you stay wrong with the stock market, the more money you will lose.

3. Every market or stock that goes up will go down and most markets or stocks that have gone down, will go up. The more extreme the move up or down, the more extreme the movement in the opposite direction once the trend changes. This is also known as "the trend always changes rule."

4. If you are looking for "reasons" that stocks or markets make large directional moves, you will probably never know for certain. Since we are dealing with perception of markets-not necessarily reality, you are wasting your time looking for the many reasons markets move.

A huge mistake most investors make is assuming that stock markets are rational or that they are capable of ascertaining why markets do anything. To make a profit trading, it is only necessary to know that markets are moving - not why they are moving. Stock market winners only care about direction and duration, while market losers are obsessed with the whys.

5. Stock markets generally move in advance of news or supportive fundamentals - sometimes months in advance. If you wait to invest until it is totally clear to you why a stock or a market is moving, you have to assume that others have done the same thing and you may be too late.

You need to get positioned before the largest directional trend move takes place. The market reaction to good or bad news in a bull market will be positive more often than not. The market reaction to good or bad news in a bear market will be negative more often than not.

6. The trend is your friend. Since the trend is the basis of all profit, we need long term trends to make sizeable money. The key is to know when to get aboard a trend and stick with it for a long period of time to maximize profits. Contrary to the short term perspective of most investors today, all the big money is made by catching large market moves - not by day trading or short term stock investing.

7. You must let your profits run and cut your losses quickly if you are to have any chance of being successful. Trading discipline is not a sufficient condition to make money in the markets, but it is a necessary condition. If you do not practice highly disciplined trading, you will not make money over the long term. This is a stock trading “system” in itself.

8. The Efficient Market Hypothesis is fallacious and is actually a derivative of the perfect competition model of capitalism. The Efficient Market Hypothesis at root shares many of the same false premises as the perfect competition paradigm as described by a well known economist.

The perfect competition model is not based on anything that exists on this earth. Consistently profitable professional traders simply have better information - and they act on it. Most non-professionals trade strictly on emotion, and lose much more money than they earn.

The combination of superior information for some investors and the usual panic as losses mount caused by buying high and selling low for others, creates inefficient markets.

9. Traditional technical and fundamental analysis alone may not enable you to consistently make money in the markets. Successful market timing is possible but not with the tools of analysis that most people employ.

If you eliminate optimization, data mining, subjectivism, and other such statistical tricks and data manipulation, most trading ideas are losers.

10. Never trust the advice and/or ideas of trading software vendors, stock trading system sellers, market commentators, financial analysts, brokers, newsletter publishers, trading authors, etc., unless they trade their own money and have traded successfully for years.

Note those that have traded successfully over very long periods of time are very few in number. Keep in mind that Wall Street and other financial firms make money by selling you something - not instilling wisdom in you. You should make your own trading decisions based on a rational analysis of all the facts.

11. The worst thing an investor can do is take a large loss on their position or portfolio. Market timing can help avert this much too common experience.

You can avoid making that huge mistake by avoiding buying things when they are high. It should be obvious that you should only buy when stocks are low and only sell when stocks are high.

Since your starting point is critical in determining your total return, if you buy low, your long term investment results are irrefutably better than someone that bought high.

12. The most successful investing methods should take most individuals no more than four or five hours per week.

Some facts to note while placing share order

2007-10-09T18:27:00.000-07:00

hi

there are some facts to consider while placing your orders to buy shares
some are :

Security - All orders must indicate the security being ordered. Securities are defined by a unique ASX code.
Quantity of Securities - Each order must specify a quantity of the security to be bought or sold. Depending upon the value of the order, the quantity may or may not be disclosed.
Price - An order must have a price. The way a price is expressed depends upon the security being ordered, ie shares, warrants, company options etc.
Types of orders - The order type helps determine how the order trades and the price it may trade at.
Crossings - Brokers must follow procedures when acting on behalf of both the buyer and the seller in a transaction.
Life of an order - An order may be given an expiry date when it is placed, or it may be given a default expiry. In addition, certain market events will cause an order to be automatically cancelled prior to its expiry date.
Other Considerations - The decision to buy or sell should take into consideration factors other than the security and its price. Trade prices may be affected by the current market phase, upcoming dividends and so on.

hence while u try to place an order .. consider these essential factors !!

Leverages Strategies

2007-10-05T19:54:00.000-07:00

Stock that a trader does not actually own may be traded using short selling, margin buying may be used to purchase stock with borrowed funds; or, derivatives may be used to control large blocks of stocks for a much smaller amount of money than would be required by outright purchase or sale.

Short selling
In short selling, the trader borrows stock (usually from his brokerage which holds its clients' shares or its own shares on account to lend to short sellers) then sells it on the market, hoping for the price to fall. The trader eventually buys back the stock, making money if the price fell in the meantime or losing money if it rose. Exiting a short position by buying back the stock is called "covering a short position." This strategy may also be used by unscrupulous traders to artificially lower the price of a stock. Hence most markets either prevent short selling or place restrictions on when and how a short sale can occur. The practice of naked shorting is illegal in most (but not all) stock markets.

Margin buying
In margin buying, the trader borrows money (at interest) to buy a stock and hopes for it to rise. Most industrialized countries have regulations that require that if the borrowing is based on collateral from other stocks the trader owns outright, it can be a maximum of a certain percentage of those other stocks' value. In the United States, the margin requirements have been 50% for many years (that is, if you want to make a $1000 investment, you need to put up $500, and there is often a maintenance margin below the $500). A margin call is made if the total value of the investor's account cannot support the loss of the trade. (Upon a decline in the value of the margined securities additional funds may be required to maintain the account's equity, and with or without notice the margined security or any others within the account may be sold by the brokerage to protect its loan position. The investor is responsible for any shortfall following such forced sales.) Regulation of margin requirements (by the Federal Reserve) was implemented after the Crash of 1929. Before that, speculators typically only needed to put up as little as 10 percent (or even less) of the total investment represented by the stocks purchased. Other rules may include the prohibition of free-riding: putting in an order to buy stocks without paying initially (there is normally a three-day grace period for delivery of the stock), but then selling them (before the three-days are up) and using part of the proceeds to make the original payment (assuming that the value of the stocks has not declined in the interim).

How to open a demat account

2007-07-30T18:38:00.000-07:00

hi
its long since my previous post..
ok
lets look at how to open a demat account
there are share brokers who can be government approved or private
any kind of these brokers will be able to open the demat account for u .
like opening some other bank account, u will need some minimum amount of shares in ur account ... also as we have discussed before .. u will need to pay to maintain such demat accounts ..

if u buy new shares they will be credited to ur account like bank deposits .. and if u sell shares they will be debited similar to ur withdrawal from a bank

more likely to bank, they provide u a slips for both selling and buying of shares namely ... Credit advice and Debit advice
it functions like a cheque with which u can use ur shares in the account to sell or buy shares from others

the account will provide u a unique id !! lets say .. a customer id
it distinguishes ur account from the rest of others
the advantage of demat account is that it causes dematerialisation of ur shares .. ie.. u need not carry ur shares in the form of papers
in olden days before demat account was available people had to buy shares in bulk say in forms of 50 s and 100 s ...
but now .. even a single share of some company can be bought with the demat account
so .. if u plan a way of subsidiary income u need to start a demat account
approach some share brokers and u can get the account opened for u !!!
good luck

Is it equity or preferential ?

2007-07-11T05:30:00.000-07:00

hi

now its time to know what type of shares are available and how they differ !!
as many of you know .. there are two kinds of shares available
1. Equity shares
2. Preferential shares

let us see an example to differentiate how these two types vary

Now i am going to start a company .. i may need more investment ..
lets say about 25 lacs and i have only 5 lacs in hand . i am short of 20 more lacs
this time i will ask help from my friends or someone i trust and give them some percentage of shares .. lets say about 25 % shares .. this will be the preferential shares ... lets say i get about 10 lacs from them .. i am still short of another 10 lacs .. so , i will now issue some shares for public interest to buy and they are the equity shares ...

on any occasion the company will not issue more than 50 % of shares for the public notice .. that s because if i am a rival for your company i will start buying all your shares available in the market ... if more than 50 % shares are with me .. then i take over your company .. due to this problem .. the company will not issue more than 50 % shares for the public ....

hmmmmm ..
lets say i got all the money and started the company and got good profits ..
now i can declare dividend for the shares !!!
my share holders will get part of the dividend on the amount of shares they hold
but this dividend is not a compulsory one to be given for the share holders !!
it means .. i can give them if i wish .. its at my will

lets say now my company runs better and need an expansion .. i already have issued shares to public interest and so i am left with no share options
now at this point i can issue a debenture on the company s properties
now it is here where i must compulsorily agree to pay the interest for the amount i receive

remember .. shares get u dividend and debentures get u interest
with this i can get the amount i wish to make an expansion and make the company better

the shares we buy are equity and are not preferential shares
the share dividend rate will vary with the equity and dividend shares
that s all about the type of shares !!
we will see soon how are we going to make money with these shares !

Choose your account type

2007-07-02T07:57:00.000-07:00

hi

buying and selling of shares is possible only through share brokers
not even a single share can be bought or sold without the share brokers
also .. the stock exchange has to be informed with the number of shares bought or sold everyday .. so there cannot be any cheating in share market

choosing your account type is important
your account can be as normal or a demat account
in the normal account u will be provided with the share documents in the material form and claiming yourself as the owner of those number of shares
shares of number 100 can even be a single bond that says 100 shares or even 100 single single bonds of each value of 1 share

the demat account is something to with computers and softwares
the company literally gives u shares simply as a account ... that is u wont have any bond papers of shares with you ... but u still have your shares in your account
it is with this demat account you can sell any number of shares you wish to sell ..
even a single share from over a million ...
but you will be charged a nominal ( meagre ) amount to maintain such an account

it is advicable to create a demat account and get a PAN number before you enter the share market !!
the demat account is very helpful to work at bear period !!
so choose wisely the way u open an account !!!

the time of share sales is usually between 10 am and 2 pm ...
the stock exchange opens at 10 for share sales and closes before evening
the broker commission is usually 1.5% of stock value you purchase or sell ...
it is important to keep knowing and updating your senses with the share market now and then to strive well !!

next post we will see how to classify different company shares !!

Choose your time !!!

2007-07-01T19:22:00.000-07:00

hi

the share market is a very large speculative ground
the strategies are not only enough to this game
we still need to know lot more
when is the market rising ??? when does it fall ???
this interms are called as
1. Bull period
2. Bear period

1. Bull period
this is the time when the share value keep on rising
this is like the action of a bull
the bull places its horn and throws up whoever stands in its way
thats why the share market is likely to be considered as a bull
it keeps on throwing up the value of anyshare that comes ( almost any )
but this bull period cannot be for a very long time
somehow the market reaches a saturation and then comes down
and there is a shift in the market nature !!!

2. Bear period
this refers to the downfall of the market
this period will usually be longer than the bull period
from the name , the action of the bear is to push down the enemy
and that s the nature of the market
the value of shares continuously go down
as usual there is a down saturation point after which the value gradually rises

most people prefer bull market to bear market
it is the safe thing to do
buying the shares at its blooming stage and selling it in the mid stage of the bull market .. most of the share operators operate in this time period
you can earn some profit

but there is the other way where the risk factor is very high and the profit margin is even higher if u work out the exact way the knot of this thread is solved
it is operating silently in the bear period
the bear period is going to have some saturation region after which the bull period begins .. very intelligent people and rich people follow this bear period for making more profit out of less capital
they start buying the shares once the bear period begins and continuosly buy lot of shares .. they wait until the bull period starts and then sell the shares at the mid of the bull period and make considerably more money !!!
but this is not an easy way ...
you will need lot of patience and even lot of confidence and knowledge
and that s why i am here to help you all to start a living my shares
share market is not gambling it is speculation
all the things are government authorised
you will have to pay tax for whatever you earn out of this !!!
we will soon know what are the types of shares available and how to choose the winning one over the losing one !!

but be prepared ..
choose your time now !!

to know more about shares and stock exchange keep watching the blog post regularly

Strategies to make money with shares

2007-07-01T19:03:00.000-07:00

hi

today we will know some strategies for share business
here are two ways to make money with shares
these techniques are very useful for the beginners
1. Buy low and sell high
2. Sell high and buy low

both sounds similar na ???
but they actually are different strategies to be employed

1. Buy low and sell high
most of us will be aware of this !!
this is the basic of making a profit ... even from ur school mathematics ...
the Cost Price must be less and ur Selling Price must be high !!
buy the shares that seems to be of less in price but will rise sooner or later !!
then .. as the time comes sell them and make the profit !!
this is the buy low and sell high principle

2. Sell high and buy low
it is just like the previous one where the CP is lesser and the SP is greater
but the principle here is different one ...
the shares u think will go down are to be sold ( simply like u own them )
later as they goes down ... u buy the shares of the sold quantity
actually it is here at this point u buy the shares ...
so .. the SP - CP = Profit !!!
the technique is so tricky ..
if u make ur bid on a winning share ... u eventually has to give the share for more price than wat u will be buying

its not easy to understand this ...
we will make out through an example :

1. Shares worth 100 are already with me ... i mean i bought them ...
now the share value rises to 10 rupees each ...
so .. i sell all my shares and make a profit ... this is buy low and sell high

2. I hear a news that the xyz corporation shares will go down by this week ...
so i call a broker and make an agreement like selling the shares to another party ...
which i dont have with me !! ( u need to give the shares in a week anyway ) ...
now .. as the shares now go down .. i buy them and give it to the broker for the other customer ..
now .. the strategy here is ...
i already sell a pile of shares for some current value that is going down .. but i buy the shares with the down price !!
so .. i make some profit ...

both these strategies are for the beginners and hope the information was useful !!
in coming weeks we will see how to choose the winning shares over the losing one !!
and other strategies that make real money !!

but all that we need is good investment ..
people who can invest money can use the techniques mentioned here