tag:blogger.com,1999:blog-372788822024-03-05T22:54:04.240-08:00Stock Market Basics Strategies Tips Wisdomakhilhttp://www.blogger.com/profile/04401234388389546739noreply@blogger.comBlogger25125tag:blogger.com,1999:blog-37278882.post-58071919429109125242009-08-29T02:50:00.000-07:002009-08-29T02:52:46.936-07:00How to choose the best automated stock trading software<strong><span style="font-size:130%;color:#ff0000;">Get the Information You Need to Evaluate Stock Trading Software<br /></span></strong>In today's market, investors are wondering if they should even buy stocks and if they can make money. The answer to both is "yes." Stock market trading is a wonderful opportunity now, with prices lower and volatility higher than in many years. Stock trading online has never been more popular.<br />Automated trading platforms, robotic trading programs, online day trading systems-there are many terms used to describe the stock trading systems that can help you to make a stock investment and to grow your money. Review the criteria below and understand your own personal preferences by talking with other stock traders. Identify the facts you need to compare programs. You'll need a good understanding of the automated trading tools' features and costs before you make a decision.<br />Many types of companies offer stock trading advice and stock trading strategies. They run the gamut from educational programs that aim to teach you how to trade, to a list of recommended stocks to buy and sell at certain triggers, to brokerage firm proprietary software, all the way to fully automated robotic software. Prices can vary from thousands of dollars to less than $50 a month for some auto trading software. With such a variety, how do you choose? This article will guide you through the features and benefits of the programs that are available for online stock trading. We will not discuss trading software for options or Forex trading. Many of the programs are geared towards "day traders," who technically open long positions (buy) or short positions (sell short) and close these positions the same day. Not everyone who uses these programs closes out their positions by the end of the trading day--sometimes they hold their positions for days, weeks or months. We'll call this "active trading." Sometimes this is also referred to as "swing trading."<br />The essential features of a stock trading program include a data feed for stock quotes and indicators, stock charts or charting capability of major indicators, current balance and positions and an order entry system. The order entry system should allow stop (loss) orders, stop limit orders and trailing stops. A trailing stop limit is similar to the stop (loss), except its loss will be measured from the stocks highest point achieved. The preferred method would be to keep the trigger prices in stealth mode, not viewable by the market makers, rather than as actual orders. Most automated trading software should include a watch list of the stocks to potentially trade based on the parameters the stock trader has entered.<br />Exchange Traded Funds (ETF's) can be part of an efficient trading strategy. These are mutual funds that are traded intraday on the stock exchanges, unlike traditional mutual funds that are a basket of securities priced at the close of the market. Online stock trading systems should also include trading capabilities for ETF's.<br />Other features to look for include safety measures that stock traders may take, such as establishing a profit goal--the minimum price increase a trader would expect a stock to gain before closing their position. Also highly desirable is a form of profit protection for your investments, which is the reduced profit goal. After the stock reaches its profit goal and continues to rise, the stock trading software should wait and let the profit increase. If the stock price decreases or pulls back, the online trading program should close the position and lock the profit. This pullback value should not have any effect before the profit goal is reached and is intended to improve stock performance. More sophisticated auto trading programs will also offer the percentage gain from stock trader's entry price, and the trader can also specify a minimum amount in case the percentage gained is too low.<br />Check the Features and Ask Questions<br />Number of Technical Indicators - There are literally hundreds of indicators that stock traders can use to determine which stocks to buy and sell and when. The most robust programs will offer hundreds of indicators for technical analysis, such as Bollinger Bands, and some will even include indicators for Candlestick Chart formations. Robotic programs use these indicators to set conditions under which online investing will occur.<br />Complexity - Automated stock trading programs vary greatly in ease of use. Some online stock trading systems do require actual programming expertise. Others are simply point and click. Check out the online demo to see that it fits your level of comfort before making a commitment. Talk to others who are currently using the auto trading websites and check out their online communities for more comments.<br />Number of Long and Short Strategies Per Account - Due to the size of the online trading platform, there may be a limit to the number of strategies that you can have loaded on each account. If you want to run, say two long trading strategies, then you may need two accounts. Also confirm if you have enough memory on your computer for two or more accounts. Experienced active traders may run two or more live long and short strategies, while having additional accounts for strategies that they are testing in a simulator mode.<br />Find Out How Advanced Your Software Can Be<br />Recommended Additional Features - The best automated stock trading software will include additional features that active traders will find invaluable once they have begun automated trading.<br />Additional strategy and order entry features include the ability to add to a position as a stock goes up, or as the stock declines, as well as a minimum purchase interval that the stock price should drop before it begins purchasing additional shares. A maximum bid/ask range will also be helpful, as the size of the spread can directly impact a swing trader's ability to make profitable trades.<br />If there are hundreds of indicators, as is the case with robotic traders, see if the definitions of the indicators are readily available. The definition or formula for indicators may vary from one electronic trading platform to another, so be sure you understand them first.<br />Recommend you have a program that displays current Profit and Loss (P&L) on your open positions and the status of the rules on your watch list. For example, if a stock on the watch list hasn't traded, is there a feature where the trader can pull up the rules and indicators to see which one(s) is preventing the trade?<br />Some automated stock trading programs visually display the percentage of symbols up and down in each sector from the specified time frame to the current time so you can see how the market is turning. Does the platform include the ability to block certain symbols from trading? If you're running a long trading strategy, you won't want to be buying ETF's that short the market.<br />Day traders will want automated trading software that tracks and displays the number of day trades remaining. Day trading is regulated by the SEC, so it's important to understand if you will be day trading first.<br />Orders in Stealth Mode - A standard feature of many trading software programs is the ability to enter limit, stop and stop limit orders. While it is important to have an exit strategy from your positions, telegraphing it to the institutional traders in the form of publicly viewed limits is not. It's a little like poker--whoever can see all the hands has the advantage. Instead, newer programs allow the user to enter these price points in the auto trader system, but trigger a market order when the conditions are met. This is one advantage of a truly robotic stock trading program.<br />Automatically Executes Your Trading Strategy Even While You're Away From Your Computer - Very few stock market trading systems can actually do this. For those that do, it's done based on the trader selecting technical indicators, comparison operators and numerical inputs that will activate opening, adding to, or closing stock positions. Essentially, it's a rules driven software system. The trader can select from hundreds of historical indicators representing the stocks' previous conditions. The indicators should be updated daily using the latest data. Programs that can trade automatically are the cream of the online investing software crop. They take the emotion out of investing. Long time traders report that the simplest strategies, when left to run on their own for long periods perform best. The program should also have a manual override so the stock trader can manually place a trade as well. Specifically ask if the system has this capability. Many market themselves as "automated trading" but are not truly automated.<br />Ability to Simulate Strategies In Real Time Before Running Live - Most traders would agree that they'd like to "test drive" a system before using it. Some programs allow this through "back-testing," in which the program uses past data to execute the trades and show you what they would have been. This is not always accurate, as there is much data needed to perform a thorough back-test and it's nearly impossible to replicate all the circumstances with just the historical data. In addition, how the system performed in a market last month or last year does not indicate how it will perform in the here and now.<br />There are a few systems that allow the stock trader to simulate strategies, but this is done mostly with paper tickets, rather than through the software package. The best stock trading software will let you practice stock trading using a live real-time data feed during market hours. This is the preferred method, as it gives traders a very realistic view of how their trading strategy is performing and the ability to feel the highs and lows of daily trading without investing real money. If you can simulate trades, you won't need to open an actual brokerage account until you go "live" with real money. Ask if there is a limit on how long you can run in the simulation mode.<br />Shows You How to Create A Stock Trading Strategy - There should be a step by step walk through to show novice traders how to create a trading strategy. Are there off-the-shelf strategies that are available for your use? Are there any fees involved or are they offered for free? Can you modify the off the shelf strategies? Note that firms should not be guaranteeing you a certain return. The best firms will have long and short stock trading strategies available at no charge and will allow the stock trader to create their own. Some firms will even allow you to copy strategies from a "friends" list. One size does not fit all. If the company doesn't tell you the details of the strategy or why they selected or recommend a certain stock, then it's not advisable to use it. You may overpaying for "proprietary" services and may be able to obtain free stock market tips and recommendations online that will perform comparably.<br />Tech Support and Customer Service - The best automated stock trading software firms have an extremely high "up-time" and are very rarely out of service. Check on the firm's record--how often have they had outages? The software should be easy to install and should work with a variety of operating systems (Windows XP, Windows Vista, etc.). If you have questions, is there a knowledgeable and helpful staff to provide service? How quickly do they respond, if by email?<br />Commissions - Trading commissions can eat into your profits if you are not careful about choosing a plan that fits your needs. Commissions can vary greatly from broker to broker, depending on the number of shares traded, whether the shares are in round lots of 100, price of the shares traded and the number of trades you place each month. Stock traders may even want to have more than one account if they have a trading strategy that normally trades 100 shares lots and another that trades 1000 share lots. It pays to read the fine print.<br />Number of Broker Choices - If you have a proprietary brokerage software product, then you'll only be able to trade through that firm. The best online trading includes the lowest commissions for the typical trades for each strategy that you use. There are other programs whose software has been integrated into the order placing functionality at a variety of brokerage firms. Commissions will be one consideration in choosing a firm. Another is the margin rates. If you choose to have a margin account and borrow against the value of your securities to open more positions, you will be charged margin interest. Rates will vary by firm. Typically, firms with the lowest commissions won't pay you interest or offer a money market fund for your uninvested cash. This is how they keep their costs down. If you anticipate having extra cash that you won't use for trading, you may want to keep it in another account where it can earn more. You should also check if there is a minimum to open an account or a minimum number of trades required.<br />Check the Costs and Software Support<br />Initial Software Fee and Monthly Fees - Ask is there is an initial fee to buy the software package. Is it thousands of dollars? If so, find out what you are really getting. Much of what you can obtain from some of these programs can be found in inexpensive books or on the Internet for free. Is there also a monthly fee? If so, what does it cover? In reviewing online trading services, more expensive software is not necessarily better. Some active investing services are less expensive because they have more subscribers.<br />Data Feed Fee - Does the program include real time data feeds for stock quotes and indicators? Is there an extra fee for this or is it included in the basic monthly fee? This is the biggest component cost in developing automated stock trading programs. Or, is the data delayed by 20 minutes? Is it only the end of day data? If so, even in a simulation, old data is not good data. Many brokerage firms offer free Level II quotes to qualified active traders who trade a specified number of trades each month.<br />Stock Charts Fee - How will you review the major indicators that you're using to make trading decisions? Some programs include stock charts with their fee, others charge a separate fee for it. Depending on the platform you choose, you may or may not need a charting package. Find out how much is it and how much you can customize the stock charts to track your favorite indicators.<br />Ongoing Support Fee - Ask is there are any other fees. Hidden fees will definitely each into a stock trader's profits. If you're not in the market to make money, then you shouldn't be in the market.<br />Long Term Contract - Is the fee you're paying upfront for a year's contract? If so, is it automatically renewed every year?<br />Training Fee - Find out if there is a separate training fee. For programs that market themselves as financial educators, there will be a fee, sometimes hundreds or thousands of dollars, as this is how they make their money. The best automated stock trading software programs provide free training.<br />Training Formats - Is the training in the form of a live seminar? Webinar? Are there extra materials such as DVD's that you must buy to find out all the information advertised? Or, is live training available in the company's office?<br />Minimum to Invest - Brokerage firms have their own minimums but there are also account minimum balances required by the Securities and Exchange Commission (SEC) for what it calls "pattern day traders." A day trade occurs when a trader opens and closes the same position in a margin account on the same day. A pattern day trader is any person who executes 4 or more day trades within 5 business days in a margin account, provided the number of day trades is more than 6% of the total trades in the account during that period. All pattern day traders must maintain a minimum of $25,000 in equity at all times.<br />System Requirements - The more robust the trading system, the greater the memory requirements. Check this before you sign up or purchase a new computer. If you sign up for more than one account, will your machine have enough RAM to run both or will you need to purchase an extra computer or more memory? If you have a Mac, ask if the software works on Mac, as not all do. You may want to have one computer dedicated only to your automated stock trading programs and not run other word processing or spreadsheet programs.<br />Reports - The best automated stock trading software will include a reports function, that allows the stock trader to pull up trades by time frame, security, long vs short, open vs. closed and P&L. For truly active traders, this information is an easy way to track trading for tax purposes.<br />Trading Strategy Statistics- In addition to Reports, another great feature is strategy statistics. They will tell the serious stock trader the number of trades executed and break them down by profitable vs. unprofitable over various intervals. Reviewing the strategy accuracy increases the odds that a stock trader will be profitable.<br />Online Trading Community - Trading platform developers who are truly proud of their work welcome comments and questions from users. Take some time to read their stock trading forum and see what other stock traders are saying. There are even a few automated stock trading programs that will take requests for additional indicators from their users.<br />Take the Right Steps as You Choose Stock Trading Software<br />Be wary of those who tell you that you must follow their stock trading system using only their tools. This is about you having control over your financial future. There are as many successful stock trading strategies as there are active traders. Experiment, talk to others and do research. You will find what works best for you.<br />Use caution when signing up for anything long-term, even if a 30-day free trial is offered. Some firms may request a large down payment or full payment in advance and pressure you on the spot, promising a discount if you sign up immediately. Some consumers have reported difficulty in obtaining refunds even when they have followed the procedures exactly.<br />Happy trading!<br />© Copyright - Regina Guinn. All Rights Reserved Worldwide.<br />CoolTrade™ Fully Automated Stock Trading Software benefits include Power Research Tools. The CoolTrade™ Strategy Wizard allows you to rapidly filter through all 8000+ NYSE, NASDAQ, and AMEX stocks for only those that meet your investment criteria. 100% point-and-click, requiring no programming knowledge. Fully Automated Stock Trading Software. A real-time Market Simulator allows you to run a strategy that you select in simulator mode during live market hours. This is not a back-tester. It runs in real-time so you can see how your strategies perform during actual market conditions. The Reports option will provide you with your strategy statistics. Switching from live to simulator mode is done with a simple click of the button. The Robotic Trader may be set to start by itself in the morning and trade the market all day 100% unattended.<br /><a id="link_111" href="https://www.cool-trade.com/?EZINE1=Y" target="_new">CoolTrade</a><br />Article Source: <a id="link_112" href="http://ezinearticles.com/?expert=Regina_Guinn">http://EzineArticles.com/?expert=Regina_Guinn</a>akhilhttp://www.blogger.com/profile/04401234388389546739noreply@blogger.com0tag:blogger.com,1999:blog-37278882.post-78611958987923431002007-10-03T21:21:00.001-07:002007-10-03T21:21:50.014-07:00Recovery Agents of Private Bank are Acting Like goons<div><font size="2"> <p>Standing tall at 5 ft 11 inches, </p></font><a href="http://www.moneycontrol.com/mccode/news/searchresult.php?search_str=Lucky&datesel=2"><u><font color="#0000ff" size="2">Lucky</font></u></a><font size="2"> is a daunting and an imposing sight on the streets of Delhi. This 38-year-old has just started a detective agency of his own, but that's only a front for his real job </font></div> <div><font size="2">Lucky is a recovery agent. Big private banks hire him to make sure their loans are returned on time. Eighteen years in the business and he knows exactly how to get customers to pay up.</font></div> <div> <p>"We threaten people, we land up at their place and sometimes even use third degree," he admits to CNN-IBN. </p> <p>Welcome to the world of corporate sponsored violence, a dark underbelly of the swanky banking sector where local goons and ruffians are hired by banks to terrorise customers into settling their dues. </p> <p>Where threatening calls, verbal abuse and even physical violence have become part of routine collection system.</p> <p>These recovery agents are not on any bank's rolls but stand to get a hefty cut of booty they help recover.</p> <p>"Not just lathis, some agents even pull out their mousers, they stop cars on gunpoint, drag the owners and drive away with the car," Lucky says.</p> <p>Sixty-year-old Surinder Kumar runs a consultancy in west Delhi. Two months ago, he fell victim to recovery sharks when one of his employees defaulted on his Rs-50,000 <a href="http://news.moneycontrol.com/mccode/news/article/news_article.php?autono=306059/l"> <u><font size="2">credit card payment</font></u></a><font size="2"> to </font><a href="http://www.moneycontrol.com/india/stockpricequote/banks-private-sector/hdfc-bank/20/01/HDF01"><u><font color="#0000ff" size="2">HDFC Bank </font></u></a><font size="2">. </font></p> <p>"He abused, used filthy language and threatened us. They said our kid has been picked up. We were very scared. I wondered if we should stop sending him to school," he recalls. </p> <p>Surinder is just one of thousands of people who've seen the ugly side of loan recovery process. </p> <p>Blame it on over-aspiring consumers who borrow more than they can return or overzealous <a href="http://news.moneycontrol.com/mccode/news/article/news_article.php?autono=306059/l"><u><font size="2">lenders</font></u></a> <font size="2"> who then bend the rules to recover their debts, the paranoia continues.</font></p> <p>This corporate tactic has also turned deadly with a spate of suicides. Two weeks ago Prakash Sarvankar of Mumbai, harassed by <a href="http://www.moneycontrol.com/mccode/news/searchresult.php?search_str=ICICI Bank&datesel=2"> <u><font color="#0000ff" size="2">ICICI Bank</font></u></a><font size="2">'s recovery agents, was forced into taking the extreme step. </font></p> <p>For the likes of Lucky and others in his league, it's just another job. "I feel bad about my job. But if I don't do it, someone else will," he says. </p> <p>Gandhi may be stamped on the <a href="http://news.moneycontrol.com/mccode/news/article/news_article.php?autono=306059/l"><u><font size="2">currency</font></u></a><font size="2"> banks lend, but there's nothing Gandhian about the way they go about recovering it. </font></p> <p>(Source: <a href="http://www.ibnlive.com/"><u><font color="#0000ff" size="2">www.ibnlive.com</font></u></a><font size="2">)</font></p></div> akhilhttp://www.blogger.com/profile/04401234388389546739noreply@blogger.com1tag:blogger.com,1999:blog-37278882.post-13336890638326584142007-09-30T11:15:00.001-07:002007-09-30T11:15:44.265-07:00Power Grid Listing Date And Likely Price<div><strong><font color="#ff0000">Based on <a href="http://Bullishindian.com">Bullishindian.com</a> Here is the information about POwer Grid IPO Listing date and likely listing price:</font></strong></div> <div> <div class="post-content"> <p>The <strong>Power Grid IPO Allotment Status</strong> is out and allotment details have been sent by email to investors who registered with the registrar of the Power Grid IPO. Retail investors have got a decent allotment in the Power Grid IPO since the retail investors category has been heavily subscribed. Good luck to those who have got allotment in the Power Grid IPO. <font color="#009900">The tentative <strong>Power Grid IPO Listing Date</strong> is October 04, 2007.</font> The Listing of Power Grid IPO will be both on the NSE and BSE. Based on the grey market premium of Power Grid IPO the listing price of Power Grid Corporation is <strong>expected to be in the Rs. 80-90 range</strong>.</p> <p><strong><font size="4"><u>I think investor should hold this stock for long term and buy more</u></font></strong></p></div><span></span><span></span><span></span></div> akhilhttp://www.blogger.com/profile/04401234388389546739noreply@blogger.com0tag:blogger.com,1999:blog-37278882.post-23195654235469957432007-09-30T08:12:00.001-07:002007-09-30T08:12:44.272-07:00C-A-N-S-L-I-M<p>CANSLIM is a <a title="Growth stock" href="http://en.wikipedia.org/wiki/Growth_stock">growth stock</a> investment strategy based on a study of 500 of the stock market winners dating back to 1953 in the book <a class="external text" title="http://books.mcgraw-hill.com/getbook.php?isbn=0071373616" href="http://books.mcgraw-hill.com/getbook.php?isbn=0071373616" rel="nofollow"> How to Make Money in Stocks: A Winning System In Good Times or Bad, 3rd Edition (May 23, 2002) ISBN 0071373616.</a> by <a title="William J. O'Neil" href="http://en.wikipedia.org/wiki/William_J._O%27Neil">William J. O'Neil </a>. This strategy uses both <a title="Technical analysis" href="http://en.wikipedia.org/wiki/Technical_analysis">technical analysis</a> and <a title="Fundamental analysis" href="http://en.wikipedia.org/wiki/Fundamental_analysis"> fundamental analysis</a>.</p> <p>The goal of the strategy is to discover leading stocks before they make major price advances. These pre-advance periods are "buy points" that are emerging from price consolidation areas (or "bases") of at least 7 weeks on weekly price charts. </p> <p><a id="Components_of_CANSLIM" name="Components_of_CANSLIM"></a></p> <h3><span class="editsection">[<a title="Edit section: Components of CANSLIM" href="http://en.wikipedia.org/w/index.php?title=CANSLIM&action=edit&section=2">edit</a>]</span> <span class="mw-headline">Components of CANSLIM </span></h3> <p>Each letter in CANSLIM stands for common characteristics which are claimed found in the greatest stock market leaders over the past 50 years:</p> <ul> <li><b>C</b> = Current earnings per share. They must be up 18 to 20% or more. <sup class="reference" id="_ref-0"><a title="" href="http://en.wikipedia.org/wiki/CANSLIM#_note-0">[1]</a></sup> <sup class="reference" id="_ref-1"> <a title="" href="http://en.wikipedia.org/wiki/CANSLIM#_note-1">[2]</a></sup> <sup class="reference" id="_ref-2"><a title="" href="http://en.wikipedia.org/wiki/CANSLIM#_note-2">[3]</a></sup> <sup class="reference" id="_ref-3"> <a title="" href="http://en.wikipedia.org/wiki/CANSLIM#_note-3">[4]</a></sup> <sup class="reference" id="_ref-4"><a title="" href="http://en.wikipedia.org/wiki/CANSLIM#_note-4">[5]</a></sup> <sup class="reference" id="_ref-5"> <a title="" href="http://en.wikipedia.org/wiki/CANSLIM#_note-5">[6]</a></sup> <sup class="reference" id="_ref-6"><a title="" href="http://en.wikipedia.org/wiki/CANSLIM#_note-6">[7]</a></sup> <sup class="reference" id="_ref-7"> <a title="" href="http://en.wikipedia.org/wiki/CANSLIM#_note-7">[8]</a></sup> <sup class="reference" id="_ref-8"><a title="" href="http://en.wikipedia.org/wiki/CANSLIM#_note-8">[9]</a></sup> <sup class="reference" id="_ref-9"> <a title="" href="http://en.wikipedia.org/wiki/CANSLIM#_note-9">[10]</a></sup> <li><b>A</b> = Annual earnings. They should be up 25% or more in each of the last three years. <sup class="reference" id="_ref-10"><a title="" href="http://en.wikipedia.org/wiki/CANSLIM#_note-10">[11]</a></sup> <sup class="reference" id="_ref-11"> <a title="" href="http://en.wikipedia.org/wiki/CANSLIM#_note-11">[12]</a></sup> <sup class="reference" id="_ref-12"><a title="" href="http://en.wikipedia.org/wiki/CANSLIM#_note-12">[13]</a></sup> <sup class="reference" id="_ref-13"> <a title="" href="http://en.wikipedia.org/wiki/CANSLIM#_note-13">[14]</a></sup> <sup class="reference" id="_ref-14"><a title="" href="http://en.wikipedia.org/wiki/CANSLIM#_note-14">[15]</a></sup> <sup class="reference" id="_ref-15"> <a title="" href="http://en.wikipedia.org/wiki/CANSLIM#_note-15">[16]</a></sup> <sup class="reference" id="_ref-16"><a title="" href="http://en.wikipedia.org/wiki/CANSLIM#_note-16">[17]</a></sup> <sup class="reference" id="_ref-17"> <a title="" href="http://en.wikipedia.org/wiki/CANSLIM#_note-17">[18]</a></sup> <sup class="reference" id="_ref-18"><a title="" href="http://en.wikipedia.org/wiki/CANSLIM#_note-18">[19]</a></sup> <sup class="reference" id="_ref-19"> <a title="" href="http://en.wikipedia.org/wiki/CANSLIM#_note-19">[20]</a></sup> <li><b>N</b> = New. The company should either be under new management, have a new product, or have a new service. It should also have a new high for its stock price. <sup class="reference" id="_ref-20"><a title="" href="http://en.wikipedia.org/wiki/CANSLIM#_note-20"> [21]</a></sup> <sup class="reference" id="_ref-21"><a title="" href="http://en.wikipedia.org/wiki/CANSLIM#_note-21">[22]</a></sup> <sup class="reference" id="_ref-22"><a title="" href="http://en.wikipedia.org/wiki/CANSLIM#_note-22"> [23]</a></sup> <sup class="reference" id="_ref-23"><a title="" href="http://en.wikipedia.org/wiki/CANSLIM#_note-23">[24]</a></sup> <sup class="reference" id="_ref-24"><a title="" href="http://en.wikipedia.org/wiki/CANSLIM#_note-24"> [25]</a></sup> <sup class="reference" id="_ref-25"><a title="" href="http://en.wikipedia.org/wiki/CANSLIM#_note-25">[26]</a></sup> <sup class="reference" id="_ref-26"><a title="" href="http://en.wikipedia.org/wiki/CANSLIM#_note-26"> [27]</a></sup> <sup class="reference" id="_ref-27"><a title="" href="http://en.wikipedia.org/wiki/CANSLIM#_note-27">[28]</a></sup> <sup class="reference" id="_ref-28"><a title="" href="http://en.wikipedia.org/wiki/CANSLIM#_note-28"> [29]</a></sup> <sup class="reference" id="_ref-29"><a title="" href="http://en.wikipedia.org/wiki/CANSLIM#_note-29">[30]</a></sup> <li><b>S</b> = Shares of common stock Outstanding:Keep it small. The price of a common stock with 300 million shares outstanding is hard to budge up because of the large supply of stock available. <sup class="reference" id="_ref-30"> <a title="" href="http://en.wikipedia.org/wiki/CANSLIM#_note-30">[31]</a></sup> <sup class="reference" id="_ref-31"><a title="" href="http://en.wikipedia.org/wiki/CANSLIM#_note-31">[32]</a></sup> <sup class="reference" id="_ref-32"> <a title="" href="http://en.wikipedia.org/wiki/CANSLIM#_note-32">[33]</a></sup> <sup class="reference" id="_ref-33"><a title="" href="http://en.wikipedia.org/wiki/CANSLIM#_note-33">[34]</a></sup> <sup class="reference" id="_ref-34"> <a title="" href="http://en.wikipedia.org/wiki/CANSLIM#_note-34">[35]</a></sup> <sup class="reference" id="_ref-35"><a title="" href="http://en.wikipedia.org/wiki/CANSLIM#_note-35">[36]</a></sup> <sup class="reference" id="_ref-36"> <a title="" href="http://en.wikipedia.org/wiki/CANSLIM#_note-36">[37]</a></sup> <sup class="reference" id="_ref-37"><a title="" href="http://en.wikipedia.org/wiki/CANSLIM#_note-37">[38]</a></sup> <sup class="reference" id="_ref-38"> <a title="" href="http://en.wikipedia.org/wiki/CANSLIM#_note-38">[39]</a></sup> <sup class="reference" id="_ref-39"><a title="" href="http://en.wikipedia.org/wiki/CANSLIM#_note-39">[40]</a></sup> <li><b>L</b> = Leader or laggard? Within an industry, always choose the company that is leading the way, not one that is following in another's footsteps. <sup class="reference" id="_ref-40"><a title="" href="http://en.wikipedia.org/wiki/CANSLIM#_note-40"> [41]</a></sup> <sup class="reference" id="_ref-41"><a title="" href="http://en.wikipedia.org/wiki/CANSLIM#_note-41">[42]</a></sup> <sup class="reference" id="_ref-42"><a title="" href="http://en.wikipedia.org/wiki/CANSLIM#_note-42"> [43]</a></sup> <sup class="reference" id="_ref-43"><a title="" href="http://en.wikipedia.org/wiki/CANSLIM#_note-43">[44]</a></sup> <sup class="reference" id="_ref-44"><a title="" href="http://en.wikipedia.org/wiki/CANSLIM#_note-44"> [45]</a></sup> <sup class="reference" id="_ref-45"><a title="" href="http://en.wikipedia.org/wiki/CANSLIM#_note-45">[46]</a></sup> <sup class="reference" id="_ref-46"><a title="" href="http://en.wikipedia.org/wiki/CANSLIM#_note-46"> [47]</a></sup> <sup class="reference" id="_ref-47"><a title="" href="http://en.wikipedia.org/wiki/CANSLIM#_note-47">[48]</a></sup> <sup class="reference" id="_ref-48"><a title="" href="http://en.wikipedia.org/wiki/CANSLIM#_note-48"> [49]</a></sup> <sup class="reference" id="_ref-49"><a title="" href="http://en.wikipedia.org/wiki/CANSLIM#_note-49">[50]</a></sup> </li></li></li></li></li></ul> <ul> <li><b>I</b> = Institutional sponsorship. Make sure large mutual fund companies (and other institutions) are investing in your stock - you can ride on their capital. Also, focus on the better performing institutions buying your stock. <sup class="reference" id="_ref-50"><a title="" href="http://en.wikipedia.org/wiki/CANSLIM#_note-50">[51]</a></sup> <sup class="reference" id="_ref-51"><a title="" href="http://en.wikipedia.org/wiki/CANSLIM#_note-51">[52] </a></sup> <sup class="reference" id="_ref-52"><a title="" href="http://en.wikipedia.org/wiki/CANSLIM#_note-52">[53]</a></sup> <sup class="reference" id="_ref-53"><a title="" href="http://en.wikipedia.org/wiki/CANSLIM#_note-53"> [54]</a></sup> <sup class="reference" id="_ref-54"><a title="" href="http://en.wikipedia.org/wiki/CANSLIM#_note-54">[55]</a></sup> <sup class="reference" id="_ref-55"><a title="" href="http://en.wikipedia.org/wiki/CANSLIM#_note-55"> [56]</a></sup> <sup class="reference" id="_ref-56"><a title="" href="http://en.wikipedia.org/wiki/CANSLIM#_note-56">[57]</a></sup> <sup class="reference" id="_ref-57"><a title="" href="http://en.wikipedia.org/wiki/CANSLIM#_note-57"> [58]</a></sup> <sup class="reference" id="_ref-58"><a title="" href="http://en.wikipedia.org/wiki/CANSLIM#_note-58">[59]</a></sup> <sup class="reference" id="_ref-59"><a title="" href="http://en.wikipedia.org/wiki/CANSLIM#_note-59"> [60]</a></sup> <li><b>M</b> = Market trends and market indices. Recognize the cup and handle pattern, as well as other market correction footprints. Know when a stock has peaked out. Also, buy stocks only when the Dow, S&P 500, and Nasdaq are going up. <sup class="reference" id="_ref-60"><a title="" href="http://en.wikipedia.org/wiki/CANSLIM#_note-60">[61]</a></sup> <sup class="reference" id="_ref-61"><a title="" href="http://en.wikipedia.org/wiki/CANSLIM#_note-61">[62] </a></sup> <sup class="reference" id="_ref-62"><a title="" href="http://en.wikipedia.org/wiki/CANSLIM#_note-62">[63]</a></sup> <sup class="reference" id="_ref-63"><a title="" href="http://en.wikipedia.org/wiki/CANSLIM#_note-63"> [64]</a></sup> <sup class="reference" id="_ref-64"><a title="" href="http://en.wikipedia.org/wiki/CANSLIM#_note-64">[65]</a></sup> <sup class="reference" id="_ref-65"><a title="" href="http://en.wikipedia.org/wiki/CANSLIM#_note-65"> [66]</a></sup> <sup class="reference" id="_ref-66"><a title="" href="http://en.wikipedia.org/wiki/CANSLIM#_note-66">[67]</a></sup> <sup class="reference" id="_ref-67"><a title="" href="http://en.wikipedia.org/wiki/CANSLIM#_note-67"> [68]</a></sup> <sup class="reference" id="_ref-68"><a title="" href="http://en.wikipedia.org/wiki/CANSLIM#_note-68">[69]</a></sup> <sup class="reference" id="_ref-69"><a title="" href="http://en.wikipedia.org/wiki/CANSLIM#_note-69"> [70]</a></sup> </li></li></ul> akhilhttp://www.blogger.com/profile/04401234388389546739noreply@blogger.com0tag:blogger.com,1999:blog-37278882.post-68533064702256951142007-08-31T11:42:00.001-07:002007-09-09T04:59:35.387-07:00Best Stock Market Simulated Game: Play And Win Cash Prizes<a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhVskCyR3Tq56NE9VmJjDTxiRw6XaLsBufDUGCShWJqfYEHmyIaVLK-eah3E-SwzuSTU-i957B4IflBUabcE2gA-3JAHriqHpCh_F-izA-yjb9-Ytch9zH_49pLwFbl1d7GRgNQ/s1600-h/ScreenShot00002moneybhai.jpg"><img style="margin: 0pt 10px 10px 0pt; float: left; cursor: pointer;" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhVskCyR3Tq56NE9VmJjDTxiRw6XaLsBufDUGCShWJqfYEHmyIaVLK-eah3E-SwzuSTU-i957B4IflBUabcE2gA-3JAHriqHpCh_F-izA-yjb9-Ytch9zH_49pLwFbl1d7GRgNQ/s200/ScreenShot00002moneybhai.jpg" alt="" id="BLOGGER_PHOTO_ID_5108172743709928306" border="0" /></a><br /><div xmlns="http://www.w3.org/1999/xhtml"><span style="color:#ffffff;">Practise Stock market investing and trading without risking your real money and also win cash prizes.This is,I think one of the best,Probably only game that simulates stock market.so practise your skill ameature or veteran stock market players<br /><br />Moneybhai Investor is a simulated real-time Stock Market Game aimed at giving viewers and investors an easy and interactive platform - using Television, the Internet and Mobile phones to understand and invest in the stock market without fear of losing their investment. The objective of this first-ever interactive stock market game is to educate and help first-time investors in understanding how the stock market functions. Participants need to register online on <a style="border-bottom-style: groove;" href="http://moneybhai.moneycontrol.com/">www.moneybhai.com</a> or SMS MB to 2622 through their mobile phone to be part of the Moneybhai Investor interactive <a style="border-bottom-style: groove;" href="http://moneybhai.moneycontrol.com/">stock market game</a>.</span><br /><br /><p class="poweredbyperformancing"><br /></p></div>akhilhttp://www.blogger.com/profile/04401234388389546739noreply@blogger.com0tag:blogger.com,1999:blog-37278882.post-47359310250806563952007-08-04T12:21:00.000-07:002007-08-04T12:21:43.406-07:00Using Google to Read Thousands of Books - Legally » BlogIsEverything.com<a href="http://www.blogiseverything.com/tips-and-tricks/using-google-to-read-thousands-of-books-legally/">Using Google to Read Thousands of Books - Legally » BlogIsEverything.com</a>: "1. Go to http://print.google.com or http://books.google.com/<br /> 2. Enter the title of the book that you prefer.<br /> 3. Now, you should see the title of the book listed (if else, the book is not in Google Library database), click on it.<br /> 4. Go to the “Contents” page and see if the book has what you are looking for.<br /> 5. Note the page number of the book that interests you.<br /> 6. There is an option “Search in this book”. Just enter the page number (say 123) of the book and hit OK. (You need a Google Account – Sign up)<br /> 7. There should be several links listed. Click the one that shows “Page 123″.<br /> 8. You can read 3 pages before and 3 pages after your specified page. Now enter the page number that you want to read (in the similar way)<br /> 9. Using this method, you can read all the books that are in Google Library.<br /> 10. Nothing much, just ENJOY!<br /><br />A note of reminder: Some pages are restricted though, this method is not 100% works.<br />: ebooks, google books"akhilhttp://www.blogger.com/profile/04401234388389546739noreply@blogger.com0tag:blogger.com,1999:blog-37278882.post-31791940490403719172007-08-04T12:16:00.000-07:002007-08-04T12:16:19.180-07:003 steps to access restricted websites | Carpe Techno<a href="http://carpetechno.lebgeeks.com/3-steps-to-access-restricted-websites/">3 steps to access restricted websites | Carpe Techno</a>: "3 steps to access restricted websites<br /><br />3 Steps to access restricted websitesThere are many ways to access restricted web sites, such as using google’s translation service (we talked about this earlier in the forum) or using various software to bypass the restrictions. One easy way to accomplish our task is to use web-based proxy services. Throughout this article we’ll talk about these proxy services, how they work and where to find them.<br /><br />1. What are web-based proxy services and how to use them?<br /><br />Web proxies, are scripts generally written in CGI or PHP that let you browse restricted websites making the firewall think you’re browsing the site where the script is hosted. This kind of proxy is very easy to use since you don’t need to configure your browser or tweak anything for it to work. All you have to do is enter the site’s address and then check a few checkboxes to define the anonymity level (allowing cookies, encrypt the site’s address, remove client-side scripting i.e. Javascript, hide referrer, strip website title, etc) voila!<br /><br />2. How do they work?<br /><br />Basically the script remotely fetches the pages and then displays them for you (for PHP: using the cURL library). The only IP address shown will be the server’s IP address. It also filters potentially maliciou"akhilhttp://www.blogger.com/profile/04401234388389546739noreply@blogger.com0tag:blogger.com,1999:blog-37278882.post-74531397095263066042007-08-04T12:08:00.000-07:002007-08-04T12:08:51.674-07:00Google free proxy!<a href="http://www.oreillynet.com/pub/h/4807">Google free proxy!</a>: "A little tutorial found on the italian site www.manuali.net inspired me for this hack. That tutorial suggests to translate a webpage, using Google translator, to access it even if restricted.<br /><br />It worked fine but something else was needed... why translate?!<br /><br />...<br /><br />Ok, let's start from the beginning. We all know that Google is more than a search engine; we do use it as provider for email, mapping, news and many other services. Google is now also a free proxy service. Proxy is a device that stands between a PC and the internet, providing all the connections to the world wide web. What a proxy does is to receive all data from a requested site, so when you access web pages all data come from proxy.<br /><br />What's the purpose for Google as a proxy? We often use office/school/university connections, usually those services are set to provide more safety, blocking the access to undesidered web sites (the 'black list'). What you can do now is use Google translator service (language tools) as a proxy to bypass the restrictions set for our connection!<br /><br />You just need to type the following URL:<br /><br />http://www.google.com/translate?langpair=en|en&u=www.forbiddensite.com<br />(www.forbiddensite.com stands for the URL you need to go to...)<br /><br />What you'll get is the translation (english to english!) of the page you want to see... your connection is directed to a googl"akhilhttp://www.blogger.com/profile/04401234388389546739noreply@blogger.com0tag:blogger.com,1999:blog-37278882.post-21263517734934029652007-06-04T09:05:00.000-07:002007-06-04T09:18:22.290-07:00Golden Rules of Stock Market By Peter LynchWhile surfing for investment ideas I came across "25 golden rules" by peterlynch on dividendgrowth.org<br />I think these are investing gems that would be useful for everyone beginner or professional alike.<br /><br /><span style="color:#ff0000;"><strong>25 Golden Rules :From Beating the Street by Peter Lynch </strong></span><br /><ol><li><span style="color:#000000;">Investing is fun, exciting, and dangerous if you don't do any work. </span></li><li>Your investor's edge is not something you get from Wall Street experts. It's something you already have. You can outperform the experts if you use your edge by investing in companies or industries you already understand. </li><li>Over the past three decades, the stock market has come to be dominated by a herd of professional investors. Contrary to popular belief, this makes it easier for the amateur investor. You can beat the market by ignoring the herd. </li><li>Behind every stock is a company. Find out what it's doing. </li><li>Often, there is no correlation between the success of a company's operations and the success of its stock over a few months or even a few years. In the long-term, there is a 100 percent correlation between the success of the company and the success of the stock. This disparity is the key to making money; it pays to be patient, and to own successful companies.</li><li>You have to know what you own and, why you own it. "This baby is a cynch to go up!" doesn't count. </li><li>Long shots almost always miss the mark.</li><li>Owning stocks is like having children- don't get involved with more than you can handle. The part-time stockpicker probably has time to follow 8-12 companies, and to buy and sell shares as conditions warrant. There don't have to be more than 5 companies in the portfolio at any one time. </li><li>If you can't find any companies that you think are attractive, put your money in the bank until you discover some. </li><li>Never invest in a company without understanding its finances. The biggest losses in stocks come from companies with poor balance sheets. Always look at the balance sheet to see if a company is solvent before you risk your money on it.</li></ol><p align="left"><span style="color:#ff0000;"></p></span>akhilhttp://www.blogger.com/profile/04401234388389546739noreply@blogger.com0tag:blogger.com,1999:blog-37278882.post-1168153050569627702007-01-06T22:56:00.000-08:002007-01-06T22:57:30.716-08:00Rich Dad Poor DadMr Kanu Doshi has drawn some of the valuable gems from a book called "Rich Dad Poor Dad" by Robert Kiyosaki. Its on the best seller list for quite some time. This book contains gems for investors like you and me and for everyone wanting to know more about "money".<br />The author says that in life, when you desire to fly an aircraft you must and therefore you do "learn" flying aircrafts. When you wish to enjoy a bicycle ride, you must and you do "learn" how to ride a bicycle. Maybe you will fall several times before you finally succeed.<br /> But a lay investor who wants to make money on the stockmarket tends to just pick up the phone, speak to his stockbroker, buy a stock and starts dreaming of becoming rich. That is not the way the rich investors who become richer with every passing day go about investing into stocks.<br />The rich follow the same principle of "learning" to ride a bicycle or flying an aircraft. They therefore first "learn" to "invest". They learn all there is to know about the art of investing in stocks. All about the stocks they wish to buy and only then do they take the plunge.<br />Above all, they keep practicing what they have learnt. They keep sharpening their saw. This single factor of learning before hand separates the rich investors from the poor investors, says the author.<br /><br />Comparison of Stock Market with the Super Market: The author says that when Super Markets reduce the prices of the goods and announce a "sale", customers flock into the stores and buy up every little item and build up at home piles of grocery, soaps, etc.<br /><br />But when Stock Markets reduce the prices of shares and announce a "crash" every investor rushes in to "sell" and runs away from the market.<br /><br />Again, conversely, when Super Markets raise their prices, customers shy away and refrain from buying till the next "sale"; but when Stock Markets announce rising prices, every investor rushes in to "buy".<br /><br />This is not the way, again, the rich investors behave. They follow the same principle of buying at the Super Markets. They buy stocks only when the Stock Markets crash. Ask Warren Buffet or John Templeton.<br /><br /> Investing Is Knowing Your Assets and Liability<br />the author says, is `investing is knowing your assets'. When you move your money from your bank account in order to `invest' you are putting your money into assets like shares, real estate, deposits, etc.<br /><br />The rich never keep their wealth in the form of liquid money in a bank account. They always keep acquiring assets while the poor acquire liabilities, which they mistakenly believe are their assets.<br /><br />The author, citing the scene in America, says that acquiring your house through a bank loan on the mortgage of your house is acquiring a liability. The same goes for paying for groceries through credit card.<br />In life, according to the author, what is important is not how much money you `make' but how much of that money you succeed in `keeping' and `multiplying'. The rich know how to keep it because they know how to invest it. Money well invested is money well kept. Good investing is often more rewarding than good earning.<br />"Real money is made when you `buy' an asset and not when you sell that asset"What the author conveys is that the "price" of the asset when you buy is the sole determinant of your profit on that asset when sold. If you buy that asset cheap, your profit on sale is obviously larger.<br /><br />The message from the author is simple. Be careful of the price you pay when investing in an asset. Don't rush into buying any investment at any price. Wait till the prices come down the way Super Markets announce sales.<br />In other words, do as the shoppers do at Super Market Sales.akhilhttp://www.blogger.com/profile/04401234388389546739noreply@blogger.com0tag:blogger.com,1999:blog-37278882.post-1167405781347655352006-12-29T07:16:00.000-08:002006-12-29T07:23:01.566-08:00Bulls make money, bears make money, but pigs just get slaughtered<strong><span style="font-size:130%;color:#3333ff;">Stocks Basics: The Bulls, The Bears And The Farm</span></strong><br /><br />On Wall Street, the bulls and bears are in a constant struggle. If you haven't heard of these terms already, you undoubtedly will as you begin to invest.<br /><br /><strong><span style="color:#006600;">The Bulls</span></strong><br /><br /> A bull market is when everything in the economy is great, people are finding jobs, gross domestic product (GDP) is growing, and stocks are rising. Things are just plain rosy! Picking stocks during a bull market is easier because everything is going up. Bull markets cannot last forever though, and sometimes they can lead to dangerous situations if stocks become overvalued. If a person is optimistic and believes that stocks will go up, he or she is called a "bull" and is said to have a "bullish outlook".<br /><br /><span style="color:#ff0000;"> <strong>The Bears</strong></span><br /><br /> A bear market is when the economy is bad, recession is looming and stock prices are falling. Bear markets make it tough for investors to pick profitable stocks. One solution to this is to make money when stocks are falling using a technique called short selling. Another strategy is to wait on the sidelines until you feel that the bear market is nearing its end, only starting to buy in anticipation of a bull market. If a person is pessimistic, believing that stocks are going to drop, he or she is called a "bear" and said to have a "bearish outlook".<br /><br /><strong><span style="color:#990000;">The Other Animals on the Farm - Chickens and Pigs</span></strong><br /><br /> Chickens are afraid to lose anything. Their fear overrides their need to make profits and so they turn only to money-market securities or get out of the markets entirely. While it's true that you should never invest in something over which you lose sleep, you are also guaranteed never to see any return if you avoid the market completely and never take any risk,<br />Pigs are high-risk investors looking for the one big score in a short period of time. Pigs buy on hot tips and invest in companies without doing their due diligence. They get impatient, greedy, and emotional about their investments, and they are drawn to high-risk securities without putting in the proper time or money to learn about these investment vehicles. Professional traders love the pigs, as it's often from their losses that the bulls and bears reap their profits.<br /><br /><strong><span style="font-size:130%;color:#ff6600;">What Type of Investor Will You Be? </span></strong><br /><br />There are plenty of different investment styles and strategies out there. Even though the bulls and bears are constantly at odds, they can both make money with the changing cycles in the market. Even the chickens see some returns, though not a lot. The one loser in this picture is the pig.Make sure you don't get into the market before you are ready. Be conservative and never invest in anything you do not understand. Before you jump in without the right knowledge, think about this old stock market saying:"Bulls make money, bears make money, but pigs just get slaughtered!"akhilhttp://www.blogger.com/profile/04401234388389546739noreply@blogger.com0tag:blogger.com,1999:blog-37278882.post-1166347789619915222006-12-17T14:59:00.000-08:002006-12-17T06:53:48.570-08:00Return on Equity<a href="http://photos1.blogger.com/x/blogger/3678/4184/1600/170394/ROE.png"><img style="DISPLAY: block; MARGIN: 0px auto 10px; CURSOR: hand; TEXT-ALIGN: center" alt="" src="http://photos1.blogger.com/x/blogger/3678/4184/320/536606/ROE.png" border="0" /></a><br /><span style="font-family:times new roman;"><span style="color:#000000;"><strong><span style="font-size:130%;">Return on Equity</span></strong> (ROE, Return on average common equity) measures the rate of return on the ownership interest (shareholders' equity) of the common stock owners. ROE is viewed as one of the most important financial ratios. It measures a firm's efficiency at generating profits from every dollar of net assets, and shows how well a company uses investment dollars to generate earnings growth. ROE is equal to a fiscal year's net income (after preferred stock dividends but before common stock dividends) divided by total equity (excluding preferred shares), expressed as a percentage.</span></span><br /><span style="font-family:times new roman;color:#000000;"></span><br /><span style="font-family:times new roman;color:#000000;">Return on equity reveals how much profit a company earned in comparison to the total amount of shareholder equity found on the balance sheet.</span><br /><span style="font-family:times new roman;color:#000000;"></span><br /><span style="font-family:times new roman;color:#000000;">A business that has a high return on equity is more likely to be one that is capable of generating cash internally. For the most part, the higher a company’s return on equity compared to its industry, the better.</span><br /><span style="font-family:times new roman;color:#330033;"><span style="color:#000000;">If you owned a business that had a net worth [shareholder’s equity] of $100 million dollars and it made $5 million in profit, it would be earning 5% on your equity [$5 / $100 = .05, or 5%]. The higher you can get the “return” on your equity, in this case 5%, the better</span>.</span><br /><span style="font-family:times new roman;"></span><br /><span style="font-family:times new roman;"><strong><span style="font-size:130%;color:#000000;">Why Warren Buffet Says</span></strong> <strong><span style="color:#ff0000;">"Focus on return on equity, not, earning per share". ?</span></strong></span><br /><span style="font-family:times new roman;color:#3333ff;"></span><br /><span style="font-family:times new roman;color:#000000;">Return on equity is particularly important because it can help you cut through the garbage spieled out by most CEO’s in their annual reports about, “achieving record earnings”. Warren Buffett pointed out years ago that achieving higher earnings each year is an easy task. Why? Each year, a successful company generates profits. If management did nothing more than retain those earnings and stick them a simple passbook savings account yielding 4% annually, they would be able to report “record earnings” because of the interest they earned. Were the shareholders better off? Not at all; they would have enjoyed heftier returns had the earnings been paid out. This makes obvious that investors cannot look at rising per-share earnings each year as a sign of success. The return on equity figure takes into account the retained earnings from previous years, and tells investors how effectively their capital is being reinvested. Thus, it serves as a far better gauge of management’s fiscal adeptness than the annual earnings per share.</span><br /><span style="font-family:Times New Roman;"></span><br />google8d9233e6f105e5dc.htmlakhilhttp://www.blogger.com/profile/04401234388389546739noreply@blogger.com0tag:blogger.com,1999:blog-37278882.post-1166251973968170382006-12-15T22:40:00.000-08:002006-12-17T01:56:36.903-08:00Quotes By Greatest Investor Warren Buffet<p><span style="font-family:times new roman;color:#330033;">here are some of the valuable insights of the stock market success by the legendory investor and chairman of Berkshire Hathaway,who has amassed billions of $ by investing in stock market.These quotes by Warren Buffet would help everyone from beginer to seasoned investor in getting rich by investing in stock market.</span></p><ol><li><span style="font-family:times new roman;color:#330033;">The critical investment factor is determining the intrinsic value of a business and paying a fair or bargain price. </span></li><li><span style="font-family:times new roman;color:#330033;">Stop trying to predict the direction of the stock market, the economy, interest rates, or elections. </span></li><li><span style="font-family:times new roman;color:#330033;">Be fearful when others are greedy and greedy only when others are fearful.</span></li><li><span style="font-family:times new roman;color:#330033;">It is optimism that is the enemy of the rational buyer. </span></li><li><span style="font-family:times new roman;color:#330033;"><a href="http://stockmarketwisdom.blogspot.com/2006_12_17_stockmarketwisdom_archive.html">Focus on <strong><span style="color:#ff0000;">return on equity</span></strong>, not, <strong><span style="color:#3333ff;">earning per share</span></strong>. </a></span></li><li><span style="font-family:times new roman;color:#330033;">Never invest in a business you cannot understand. </span></li><li><span style="font-family:times new roman;color:#330033;">An investor should ordinarily hold a small piece of an outstanding business with the same tenacity that an owner would exhibit if he owned all of that business. </span></li><li><span style="font-family:times new roman;color:#330033;">Does the business have a consistent operating history? </span></li><li><span style="font-family:times new roman;color:#330033;">Always invest for the long term. </span></li><li><span style="font-family:times new roman;color:#330033;">Wide diversification is only required when investors do not understand what they are doing. </span></li></ol>akhilhttp://www.blogger.com/profile/04401234388389546739noreply@blogger.com0tag:blogger.com,1999:blog-37278882.post-1165734612863172512006-12-09T23:01:00.000-08:002006-12-09T23:10:13.070-08:00Fundamental Analysis<span style="color:#330033;">Fundamental analysis of a business involves analyzing its <span>financial statements</span> and health, its management and competitive advantages, and its <span>competitors</span> and <span>markets</span>.<br />The objectives of the analysis may be to calculate <span>credit risk</span>, to evaluate management and make internal business decisions, or to determine the value of a company's <span>stock</span> and its probable future. The analysis is performed on historical and present data, but the objective is to predict future stock or business performance.</span><br /><br /><span style="font-size:130%;"><strong>Two analytical models:</strong></span><span style="font-size:100%;color:#330033;">When the objective of the analysis is to determine what stock to buy and at what price, there are two basic methodologies.</span><br /><br /><ol><li><br /><span style="color:#330033;"><strong><span style="color:#3333ff;">Fundamental analysis</span></strong> maintains that markets may misprice a security in the short run but that the "correct" price will eventually be reached. <span>Profits </span>can be made by trading the mispriced security and then waiting for the market to recognize its "mistake" and reprice the security. Even if the <span>investor</span> believes he cannot beat the market index, he may still pick stock for the challenge, for the fun of trying, and for the ego rush when he does beat the market. </span></li><li><br /><span style="color:#330033;"><span><span style="color:#ff0000;"><strong>Technical analysis</strong></span></span> maintains that all information is reflected already in the stock price, so fundamental analysis is a waste of time. Trends 'are your friend' and sentiment changes predate and predict trend changes. Investors' emotional responses to price movements lead to recognizable price chart patterns. Technical analysis does not care what the 'value' of a stock is. Their price predictions are only extrapolations from historical price patterns. </span></li></ol><p><span style="color:#330033;"><span style="font-family:trebuchet ms;"><span style="color:#3333ff;">Investors can use both these different but somewhat complementary methods for stock picking. Many fundamental investors use technicals for deciding entry and exit points. Many technical investors use fundamentals to limit their universe of possible stock to 'good' companies</span>.<br /></span>The choice of stock analysis is determined by the investor's belief in the different paradigms for "how the stock market works". </span></p><p><br /> </p>akhilhttp://www.blogger.com/profile/04401234388389546739noreply@blogger.com0tag:blogger.com,1999:blog-37278882.post-1165684966955222582006-12-09T09:15:00.000-08:002006-12-09T09:26:09.203-08:00Financial Calculators<span style="color:#330033;">here is some of the finacial calculators to help you calculate:<br /></span><ol><li><span style="color:#330033;">Compound Interest</span></li><li><span style="color:#330033;">Present Value</span></li><li><span style="color:#330033;">Rate of Return</span></li><li><span style="color:#330033;">Annuity</span></li><li><span style="color:#330033;">Bond Yield</span></li><li><span style="color:#330033;">Mortgage</span></li><li><span style="color:#330033;">Retirement.</span></li></ol><a onclick="window.open('http://www.moneychimp.com/calculator/popup/calculator.htm?mode=calc_futurevalue','DCsubwin','width=500,height=300,resizable=yes');return false;" href="http://www.moneychimp.com/calculator/compound_interest_calculator.htm">Financial Calculator</a>akhilhttp://www.blogger.com/profile/04401234388389546739noreply@blogger.com0tag:blogger.com,1999:blog-37278882.post-1165253269103595742006-12-04T09:26:00.000-08:002006-12-08T01:15:37.960-08:00What is Book Value In Stock Market<span style="font-family:trebuchet ms;color:#000000;">Book Value is the shareholders' equity of a business (assets - liabilities) as measured by the accounting 'books'. The term is used in the context where the speaker is trying to distinguish between the accounting measures (usually historical cost) and the market value. While it can be used to refer to the business' total equity, it is most used<br />as a 'per share' value': The balance sheet Equity value is divided by the number of shares outstanding at the date of the balance sheet (not the average o/s in the period).<br />as a 'diluted per share value': The Equity is bumped up by the exercise price of the options, warrants or preferred shares. Then it is divided by the number of shares that has been increased by those added. </span><br /><span style="font-family:Trebuchet MS;color:#3333ff;"><strong>See Also: <a href="http://stockmarketwisdom.blogspot.com/2006/11/what-is-value-investing.html">Value Investing </a>, <a href="http://stockmarketwisdom.blogspot.com/2006/12/book-value-price-to-book-ratio.html">Price-to-Book Ratio </a>, <a href="http://stockmarketwisdom.blogspot.com/2006/12/active-portfolio-management.html">Active Portfolio Management </a>, <a href="http://stockmarketwisdom.blogspot.com/2006/12/pe-ratio.html">P/E Ratio</a></strong></span>akhilhttp://www.blogger.com/profile/04401234388389546739noreply@blogger.com0tag:blogger.com,1999:blog-37278882.post-1165252804410814222006-12-04T09:11:00.000-08:002006-12-08T01:21:01.240-08:00Book Value & Price-to-Book Ratio<span style="font-family:trebuchet ms;color:#000000;">Price-to-book ratio or P/B ratio, is a ratio used to compare a stock's market value to its book value. It is calculated by dividing the current closing price of the stock by the latest quarter's book value. <a href="http://stockmarketwisdom.blogspot.com/2006/12/what-is-book-value-in-stock-market.html"><span style="font-size:130%;color:#ff0000;">Book value</span> </a><span style="color:#3333ff;"><strong><em>is the shareholders' equity (assets minus libilities) divided by the total number of outstanding shares</em></strong></span>. The calculation is often done using 'per share' values for both price and book.<br /><span style="color:#3333ff;"><strong>A lower P/B ratio could mean that the stock is undervalued</strong></span>. <span style="color:#009900;"><strong>However, it could also mean that something is fundamentally wrong with the company</strong></span>. As with most ratios, be aware this varies a fair amount by industry. Industries that require higher infrastructure capital (for each dollar of profit) will usually trade at P/B much lower than the P/B of (e.g.) consulting firms.<br /><strong><span style="color:#ff6600;">This ratio also gives some idea of whether you're paying too much for what would be left if the company went bankrupt immediately</span></strong>. For companies in distress the book value is usually calculated without the intangible assets that would have no resale value. In such cases P/B should also be calculated on a 'diluted' basis, because stock options may well vest on sale of the company or change of control or firing of management.</span><br /><span style="font-family:Trebuchet MS;"></span><br /><span style="font-family:Trebuchet MS;color:#3333ff;"><strong>See Also: <a href="http://stockmarketwisdom.blogspot.com/2006/11/what-is-value-investing.html">Value Investing </a>, <a href="http://stockmarketwisdom.blogspot.com/2006/12/pe-ratio.html">P/E Ratio </a>, <a href="http://stockmarketwisdom.blogspot.com/2006/12/active-portfolio-management.html">Active Portfolio Management </a>, <a href="http://stockmarketwisdom.blogspot.com/2006/12/what-is-book-value-in-stock-market.html">BV in Stock Market</a></strong></span>akhilhttp://www.blogger.com/profile/04401234388389546739noreply@blogger.com0tag:blogger.com,1999:blog-37278882.post-1165158400497249712006-12-03T07:02:00.000-08:002006-12-08T01:27:45.103-08:00P/E RATIO<a href="http://photos1.blogger.com/x/blogger/3678/4184/1600/976307/294f0bb6bd137f703b522cf89bebc2c6.png"><img style="DISPLAY: block; MARGIN: 0px auto 10px; CURSOR: hand; TEXT-ALIGN: center" alt="" src="http://photos1.blogger.com/x/blogger/3678/4184/320/799606/294f0bb6bd137f703b522cf89bebc2c6.png" border="0" /></a><br /><span style="color:#000000;">The P/E ratio of a <span style="font-size:0;">stock</span> (also called its "earnings multiple", or simply "multiple", "P/E", or "PE") is used to measure how cheap or expensive its share prices is. The lower the P/E, the less you have to pay for the stock, relative to what you can expect to earn from it. It is a valuation ratio included in other </span><span style="color:#000000;"><span style="font-size:0;">financial ratios. </span></span><br /><span style="color:#000000;"><span style="font-size:0;"><br /></span><br />The price per share (numerator) is the market price of a single share of the stock. The <span style="font-size:0;">earnings per share</span> (denominator) is the <span style="font-size:0;">net income</span> of the company for the most recent 12 month period, divided by number of shares outstanding. The EPS used can also be the "<span style="font-size:0;">diluted EPS</span>" or the "comprehensive EPS"</span><br /><br /><span style="color:#000000;">For example, if stock A is trading at $24 and the Earnings per share for the most recent 12 month period is $3, then the P/E ratio is 24/3=8. Stock A said to have a P/E of 8 (or a multiple of 8). Put another way, you are paying $8 for every one dollar of earnings.</span><br /><br /><span style="color:#000000;">It is probably the single most consistent <span style="font-size:0;">red flag </span>to excessive optimism and over-investment. It also serves, regularly, as a marker of business problems and opportunities. By relating price and earnings per share for a company, one can analyze the market's valuation of a company's shares relative to the wealth the company is actually creating.</span><br /><br /><strong><span style="color:#3333ff;">One reason to calculate P/Es is for investors to compare the value of stocks, one stock with another. If one stock has a P/E twice that of another stock, it is probably a less attractive investment. But comparisons between industries, between countries, and between time periods may be dangerous. To have faith in a comparison of P/E ratios, one should compare comparable</span> <span style="color:#3333ff;">stocks.</span> </strong><br /><strong></strong><br /><span style="color:#ff6600;"><strong>See Also: <a href="http://stockmarketwisdom.blogspot.com/2006/11/what-is-value-investing.html">Value Investing </a>, <a href="http://stockmarketwisdom.blogspot.com/2006/12/active-portfolio-management.html">Active Portfolio Management </a>, <a href="http://stockmarketwisdom.blogspot.com/2006/12/book-value-price-to-book-ratio.html">Price-to-Book Ratio </a>, <a href="http://stockmarketwisdom.blogspot.com/2006/12/what-is-book-value-in-stock-market.html">Book Value in Stock-Market</a> ,</strong></span>akhilhttp://www.blogger.com/profile/04401234388389546739noreply@blogger.com0tag:blogger.com,1999:blog-37278882.post-1165054484508698622006-12-02T01:59:00.000-08:002006-12-08T01:07:30.796-08:00Active Portfolio Management<span style="font-family:times new roman;"><span style="color:#000000;">Is it possible to outperform the market? This is one of the most important questions any investor should ask. If your answer is no, if you believe the market is efficient, then passive investing or indexing - buying diversified portfolios of all the securities in an asset class - is probably the way to go. The arguments for such an approach include reduced costs, tax efficiency and the fact that, historically, passive funds have outperformed the majority of active funds.</span><br /><span style="color:#000000;"></span><br /><span style="color:#000000;">But if your answer is yes, it is possible to beat the market, then you should pursue active portfolio management. Among the arguments for this approach are the possibility that there are a variety of anomalies in securities markets that can be exploited to outperform passive investments, the likelihood that some companies can be pressured by investors to improve their performance , and the fact that many investors and managers have outperformed passive investing for long periods of time. </span><br /><span style="color:#000000;"></span><br /><span style="color:#000000;">But the active investor must still face the challenge of outperforming a passive strategy. Essentially, there are two sets of decisions. The first is asset allocation, where you carve up your portfolio into different proportions of equities, bonds and other instruments.These decisions, often referred to as market timing as investors try to reallocate between equities and bonds (see FIXED INCOME) in response to their expectations of better relative returns in the two markets, tend to require macro forecasts of broad-based market movements .</span><br /><span style="color:#000000;">Then there is security selection - picking particular stocks or bonds. These decisions require micro forecasts of individual securities underpriced by the market and hence offering the opportunity for better than average returns. </span><br /><span style="color:#000000;"></span><br /><span style="color:#000000;"></span><br /><span style="color:#000000;">Active investing involves being 'overweight' in securities and sectors that you believe to be undervalued and 'underweight' in assets you believe to be overvalued. Buying a stock, for example, is effectively an active investment that can be measured against the performance of the overall market.Compared to passive investing in a stock index, buying an individual stock combines an asset allocation to stocks and an active investment in that stock in the belief that it will outperform the stock index. </span><br /><span style="color:#000000;"></span><br /><span style="color:#000000;">In both market timing and security selection decisions, investors may use either technical or fundamental analysis (see <span style="font-size:0;">TECHNICAL ANALYSIS</span>, <span style="font-size:0;">VALUE INVESTING</span> and GROWTH INVESTING). And you can be right in your asset allocation and wrong in your active security selection and vice versa. It is still possible that an investor who makes a mistake in asset allocation, perhaps by being light in equities in a bull market, can still do well by picking a few great stocks.</span><br /><span style="color:#000000;"></span><br /><span style="color:#000000;">There are arguments for both active and passive investing though it is probably the case that a larger percentage of institutional investors invest passively than do individual investors. Of course, the active versus passive decision does not have to be a strictly either/or choice. One common investment strategy is to invest passively in markets you consider to be efficient and actively in markets you consider less efficient. Investors can also combine the two by investing part of a portfolio passively and another part actively. </span></span><br /><p><span style="font-family:times new roman;"></span> </p><p><span style="font-family:times new roman;"><strong><span style="color:#3333ff;">See Also: <a href="http://stockmarketwisdom.blogspot.com/2006/11/what-is-value-investing.html">Value Investing </a>, <a href="http://stockmarketwisdom.blogspot.com/2006/12/book-value-price-to-book-ratio.html">Price-to-Book Ratio </a>, <a href="http://stockmarketwisdom.blogspot.com/2006/12/pe-ratio.html">P/E Ratio </a>,<a href="http://stockmarketwisdom.blogspot.com/2006/12/what-is-book-value-in-stock-market.html"> BV in Stock Market</a></span></strong></p><br /><br /><br /><br /></span><span style="font-family:times new roman;"></span>akhilhttp://www.blogger.com/profile/04401234388389546739noreply@blogger.com0tag:blogger.com,1999:blog-37278882.post-1164475131441805602006-11-25T09:15:00.000-08:002006-12-08T01:29:59.476-08:00What Is Value Investing<span style="color:#330033;"><strong><span style="color:#3333ff;">Value investing</span></strong> is a style of investment strategy from the so-called "Graham & Dodd" School. Followers of this style, known as <em><strong><span style="color:#3333ff;">value investors</span></strong></em>, generally buy companies whose shares appear underpriced by some forms of fundamental analysis; these may include shares that are trading at, for example, high dividend yields or low <a href="http://stockmarketwisdom.blogspot.com/2006_12_03_stockmarketwisdom_archive.html">price-to-earning </a>or <span style="color:#009900;"><a href="http://stockmarketwisdom.blogspot.com/2006_12_04_stockmarketwisdom_archive.html">price-to-book ratios</a></span>.</span><br /><br /><span style="color:#330033;">The main proponents of value investing, such as Benjamin Graham and Warren Buffett have argued that the essence of value investing is buying stocks at less than their intrinsic value. The discount of the market price to the intrinsic value is what Benjamin Graham called the "margin of safety". The intrinsic value is the discounted value of all future distributions.</span><br /><br /><span style="color:#330033;">However, the future distributions and the appropriate discount rate can only be assumptions. Warren Buffett has taken the value concept even further as his thinking has evolved to "finding an outstanding company at a sensible price" rather than generic companies at a bargain price.</span><br /><span style="color:#330033;"></span><br /><strong><span style="color:#3333ff;">see also : <a href="http://stockmarketwisdom.blogspot.com/2006/12/pe-ratio.html">P/E Ratio</a> , <a href="http://stockmarketwisdom.blogspot.com/2006/12/what-is-book-value-in-stock-market.html">What is Book Value</a></span></strong> <span style="color:#3333ff;">, <strong><a href="http://stockmarketwisdom.blogspot.com/2006/12/active-portfolio-management.html">Active Portfolio Management</a></strong></span><br /><span style="color:#3333ff;"></span><br /><strong><span style="color:#3333ff;"></span></strong><br /><strong><span style="color:#3333ff;"></span></strong><br /><strong><span style="color:#3333ff;"></span></strong><br /><strong><span style="color:#3333ff;"></span></strong><br /><strong><span style="color:#3333ff;"></span></strong>akhilhttp://www.blogger.com/profile/04401234388389546739noreply@blogger.com0tag:blogger.com,1999:blog-37278882.post-1164445881277522712006-11-25T01:00:00.000-08:002006-11-25T01:11:21.286-08:00Father of Value Invesing - Benjamin Graham<span style="color:#330033;"><strong>Benjamin Graham</strong> (May 8, 1894 – September 21, 1976) was an influential economist and professional investor who is today often called the "Father of Value Investing" and the "Dean of Wall Street." He is perhaps best known today from frequent references made to him by billionaire investor Warren Buffett, who studied under Graham at Columbia University, and was his only pupil to receive an A+.</span><br /><span style="color:#330033;"></span><br /><span style="color:#330033;">Graham exhorted the stock market participant to first draw a fundamental distinction between investment and speculation. In Security Analysis, he proposed a clear definition of investment that was distinguished from speculations. It read, "<strong>An investment operation is one which, upon thorough analysis, promises safety of principal and a satisfactory return. Operations not meeting these requirements are speculative</strong>."</span><br /><span style="color:#330033;"></span><br /><span style="color:#330033;">Graham wrote that the owner of equity stocks should regard them first and foremost as conferring part ownership of a business. With that perspective in mind, the stock owner should not be too concerned with erratic fluctuations in stock prices, since in the short term, the stock market behaves like a voting machine, but in the long term it acts like a weighing machine (i.e. its true value will in the long run be reflected in its stock price).</span><br /><span style="color:#330033;"></span><br /><span style="color:#330033;">Graham recommended that investors spend time and effort to analyze the financial state of companies. When a company is available on the market at a price which is at a discount to its intrinsic value, a "margin of safety" exists, which makes it suitable for investment.</span><br /><span style="color:#330033;"></span><br /><span style="color:#330033;">Graham wrote that investment is most intelligent when it is most businesslike, a statement which Warren Buffett regarded as the most important words about investment ever written. Graham said that the stock investor is neither right nor wrong because others agreed or disagreed with him; he is right because his facts and analysis are right.</span><br /><span style="color:#330033;"></span><br /><span style="color:#330033;">Graham wrote that investment is most intelligent when it is most businesslike, a statement which Warren Buffett regarded as the most important words about investment ever written. Graham said that the stock investor is neither right nor wrong because others agreed or disagreed with him; he is right because his facts and analysis are right.</span><br /><span style="color:#330033;"></span><br /><span style="color:#330033;">Graham's favorite allegory is that of Mr. Market, a very obliging fellow who turns up every day at the stock holder's door offering to buy or sell his shares at a different price. Often, the price quoted by Mr. Market seems plausible, but often it is ridiculous. The investor is free to either agree with his quoted price and trade with him, or to ignore him completely. Mr. Market doesn't mind this, and will be back the following day to quote another price. The point is that the investor should not regard the whims of Mr. Market as determining the value of the shares that the investor owns. He should profit from market folly rather than participate in it. The investor is best off concentrating on the real life performance of his companies and receiving dividends, rather than being too concerned with Mr. Market's often irrational behaviour.</span><br /><br /><span style="color:#330033;">Graham was critical of the corporations of his day for obfuscated and irregular financial reporting that made it difficult for investors to discern the true state of the business's finances. He was an advocate of dividend payments to shareholders rather than businesses keeping all of their profits as retained earnings. He also criticized those who advised that some types of stocks were a good buy at any price, because of the prospect of sustained stock price growth, without a good analysis of the business's actual financial condition. These observations remain extremely relevant today.</span><br /><span style="color:#330033;"></span><br /><span style="color:#330033;">Benjamin Graham wrote that he wished every day to do something foolish, something creative, and something generous. Warren Buffett said that Graham excelled most at the last. Undoubtedly, Graham's generosity in sharing his investment philosophy has benefitted generations of stock market participants.</span>akhilhttp://www.blogger.com/profile/04401234388389546739noreply@blogger.com0tag:blogger.com,1999:blog-37278882.post-1163699704669205682006-11-16T09:52:00.000-08:002006-11-16T10:16:26.403-08:00The Power of Compounding<strong><span style="color:#000000;">The Power of Compounding</span></strong><br /><span style="color:#000000;">The longer you leave your money invested and the higher the interest rate, the faster it will grow. That's why stocks are the best long-term investment value. Of course, the stock market is also much more volatile than a savings account. But given enough time, the risk of losses is mitigated by the general upward momentum of the economy.</span><br /><span style="color:#000000;">The compounding effect of investing your money is perhaps one of the most important aspects to achieving long-term wealth. For it to work, you must be a long-term investor with a lot of patience. Here is a summary of how it works.</span><br /><span style="color:#000000;">It is important to understand that the longer you keep your investment, the more money you will make. However, the amount of money you make does not rise in a linear fashion. Instead, for each year you keep the money invested, you will earn significantly more money. </span><br /><br /><span style="color:#000000;">Say that you invest $1,000 and that you achieve a return of 10% per year. That means that in the first year you would have $100 in gains ($1,000 x 10%) and a total of $1,100. In the second year, you'll start with $1,100 but this year you'll earn $110 ($1,100 x 10%) for a total of $1,210. The third year you will earn $121 ($1,210 x 10%) and have a total of $1,331. You'll notice that each year you earn significantly more than the year before because each year you earn money on the previous years' gains. This is called the compounding effect of money and it is one of the most important aspects to investing and saving money.<br />It is important to understand that the longer you keep your investment, the more money you will make. However, the amount of money you make does not rise in a linear fashion. Instead, for each year you keep the money invested, you will earn significantly more money. This can be illustrated in the following manner:<br />If you earn 10% per year, at first glance, it seems like it will take you 10 years to double your money (10 x 10%)), and 20 years to triple your money (20 x 10%). However, this couldn't be further from the truth. If you keep compounding your gains and earning 10%, you will actually double your money in under 8 years, and triple your money in under 12 years. Your money will quadruple in 15 years and you will have over 6 times your investment by year 19!<br />To illustrate this effect, we've added a graph and table below that shows the effect of compounding your money</span><br /><strong><span style="color:#000000;">Total Dollars by Year, Assuming a 10% Annual Return</span></strong><br /><span style="color:#000000;"></span>akhilhttp://www.blogger.com/profile/04401234388389546739noreply@blogger.com0tag:blogger.com,1999:blog-37278882.post-1163698594594280732006-11-16T09:24:00.000-08:002006-11-16T09:36:34.606-08:00Types Of Stocks<div align="left"><span style="color:#000000;">The amazing dotcom market in the late '90s made people think that stocks were the magic answer to instant wealth with no risk. The ensuing dotcom crash proved that this is not the case. . Stocks can (and do) create massive amounts of wealth, but they aren't without risks.the only way is to educate yourself and understand where you are putting your hard earned money.<br /></span><span style="font-size:130%;"><strong><span style="font-size:100%;color:#000000;">Types Of Stocks<br /></span><span style="color:#000099;">Common or ordinary Stock</span></strong>:</span><span style="color:#cc0000;">represent ownership in a companyand a claim (dividends) on a portion of profits. Investors get one vote per share to elect the board members</span><span style="color:#000000;">, who oversee the major decisions made by management. Over the long term, common stocks by means of capital growth, yields higher returns than almost every other investment. This higher return comes at a cost since common stocks entail the most risk.</span> <span style="color:#003333;"><strong>If a company goes bankrupt and liquidates, the common shareholders will not receive money until the creditors, bondholders and preferred shareholders are paid.</strong></span></div><strong><span style="font-size:130%;color:#000099;">Preferred Stock:</span></strong> <span style="color:#000000;">represents some degree of ownership in a company but usually doesn't come with the same voting rights.</span> <span style="color:#cc0000;"><strong>investors are usually guaranteed a fixed dividend forever on preferred stock </strong></span><span style="color:#000000;">while dividends on common stock are variable and are never guaranteed.</span> <span style="color:#006600;"><strong>In the event of liquidation, preferred shareholders are paid off before the common shareholder (but still after debt holders).</strong></span> <span style="color:#000000;">Preferred stock may also be callable, meaning that the company has the option to purchase the shares from shareholders at anytime for any reason (usually for a premium). Some people consider preferred stock to be more like debt than equity. . A good way to think of these kinds of shares is to</span> <strong><em><span style="color:#660000;">see them as being in between bonds and common shares. </span></em></strong><br /><strong><span style="color:#000099;">Different Classes of Stock</span></strong> :<span style="color:#000000;">Common and preferred are the two main forms of stock; however,</span> <em><span style="color:#ff6600;"><strong>it's also possible for companies to customize different classes of stock in any way they want</strong></span></em>. <span style="color:#000099;"><strong>The most common reason for this is the company wanting the voting power to remain with a certain group; therefore, different classes of shares are given different voting rights.</strong></span> <span style="color:#000000;">For example, one class of shares would be held by a select group who are given ten votes per share while a second class would be issued to the majority of investors who are given one vote per share.</span>akhilhttp://www.blogger.com/profile/04401234388389546739noreply@blogger.com0tag:blogger.com,1999:blog-37278882.post-1163008712597046132006-11-08T09:52:00.000-08:002006-11-08T09:58:32.606-08:00Do's And Don't in Stock MarketThe Investor Protection Fund of the Bombay Stock Exchange Ltd has laid out certain Do's and Don'ts for investors to alert them to the attendant risks associated with trading in stocks.<br /><p><span style="font-size:180%;"><strong>Do's<br /></strong></span>Always deal with the market intermediaries registered with the Securities and Exchange Board of India (Sebi) / stock exchanges.<br />Give clear and unambiguous instructions to your broker / agent / depository participant.<br />Always insist on contract notes from your broker. In case of doubt of the transactions, verify the genuineness of the same on the exchange Web site (<a href="http://www.bseindia.com/">http://www.bseindia.com</a>).<br />Always settle the dues through the normal banking channels with the market intermediaries.<br />Before placing an order with the market intermediaries please check about the credentials of the companies, its management, its fundamentals and recent announcements made by them and various other disclosures made under various regulations. The sources of information are the websites of exchanges and companies, databases of data vendor, business magazines, et cetera.<br />Adopt trading / investment strategies commensurate with your risk-bearing capacity as all investments carry risk, the degree of which varies according to the investment strategy adopted.<br />Please carry out due diligence before registering as client with any Intermediary. Further, investors are requested to carefully read and understand the contents stated in the Risk Disclosure Document, which forms part of investor registration requirement for dealing through brokers in the stock market.<br />Be cautious about stocks, which show a sudden spurt in price or trading activity, especially low price stocks.<br />Please be informed that there are no guaranteed returns on investment in stock markets.<br /><span style="font-size:180%;"><strong>Don'ts<br /></strong></span>Don't deal with unregistered brokers / sub-brokers, intermediaries.<br />Don't deal based on rumours generally called 'tips'.<br />Don't fall prey to promises of guaranteed returns.<br />Don't get misled by companies showing approvals / registrations from Government agencies as the approvals could be for certain other purposes and not for the securities you are buying.<br />Don't leave the custody of your demat transaction slip book in the hands of any intermediary.<br />Don't get carried away with onslaught of advertisements about the financial performance of companies in print and electronic media.<br />Don't blindly follow media reports on corporate developments, as they could be misleading.<br />Don't blindly imitate investment decisions of others who may have profited from their investment decisions.<br />For the benefit of investors, the exchange has installed a Toll Free line 1600 22 6663, wherein they can inform on any specific lead with regard to any type of undesirable trading practices in any scrip or any type of market aberration observed by them. Investors are hereby requested to get their messages recorded in English or Hindi. Identity of the investor will be kept confidential.</p>akhilhttp://www.blogger.com/profile/04401234388389546739noreply@blogger.com0tag:blogger.com,1999:blog-37278882.post-1162890702202091172006-11-07T00:56:00.000-08:002006-12-17T07:02:53.523-08:00Getting Rich-The Stock Market Way<span style="color:#333333;"><strong><span style="color:#006600;">The stock market has the potential to make anyone rich beyond one's expectation</span></strong>.Many of today's billionare have amaased great wealth by investing in stock market.making money in stock market is as easy as to loose.Most of the investor whom we come across lament of their huge losses and warn others to stay away from stock market.</span><br /><span style="color:#333333;"></span><br /><span style="color:#333333;">Do not blame the stock market for your losses.It is your ignorance,lack of knowledge about the stock market that is preventing you to make money.So <strong><span style="color:#000099;">learn the basics and advanced technique and the market dynamics</span></strong>.<strong><span style="font-size:130%;">Yes!...It's easy to make money but You have to learn"How?"</span></strong></span><br /><br /><p><span style="color:#333333;"></span> </p><p> <br />google8d9233e6f105e5dc.htmlakhilhttp://www.blogger.com/profile/04401234388389546739noreply@blogger.com0