Dont miss this traders !

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

Basic 12 methods to know before investing on shares

hi

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

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

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).

Choose your account type

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 !!!

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

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