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Thursday, June 9, 2011
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Stock markets are always looking the easiest way to earn money ,attracting thousands of newcomers in the market daily.they joined the market lost their hard earned capital and get out of the markets with a thought that no one can earn from this market.
I am just writing this article to give a note to the new comers that stock market is the easiest way to earn big money for the persons who trade with sense and after well research.just buying or selling any scrip without proper knowledge means you are going to lost your money.
First I just make you clear that in stock market just trading of shares of any company is done and its not nesscessorily reflect the fudamental value of that company.trading means one person buy from another person,means if you get profit from that specific trade than other person is lossing in that trade and if you are loosing than the seller is getting profit.
First mistake done by the new comers is to buy any trade when it move up 2 - 3 % .they thought that the scrip is moving upwards and bought that.and sell that when it start coming down, making loss and only loss.
They calculate the loss and profit during live call and left the trade in the middle as it moves in opposite direction .
most of them book early profit in right mooving scrips, but wait for a reversal if it hitts the stoploss.
some just depute all their capital in a single trade,dont think that what will happen if the trade will not go well.
These are some of the common mistakes one should avoid while trading in stock market.
So dear friends if you are also planning to get some profit from this market than pleasefollow these rules.
1- Do not trade any scrips without proper knowledge about that scrip
2- Do not calculate your profit or loss while your trade is live.
3- Always diversify your capital in parts and invest in different scrips.
4- Dont early exit from your trade if it is moving your way.
5- Descide your capacity of bearing loss in each trade and follow the stoploss strictly.
6- Trade with experts advice if you are not having proper knowledge.
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Oil prices will see a hike as a result of failure of OPEC meeting to increase production of crude.
Oil prices reaches above $101 per barrel on Thursday in Asian markets after OPECleaders meeting failed to make any changes in production quotas.
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Sunday, June 5, 2011
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5600 becomes psychologically more significant level in nifty .
Nifty as seen in last trading sessions is unable to sustain above 5600 range.There is a big resistance zone near 5590-5600.
Global markets cues are ufavourable for any upmove.We may see some upward movement in the morning becoz of short covering,
but nifty will definately move down .As per my point of view, One can take long position for a smaller target in the morning,but must exit within first 2 hours.
shorts at higher levels will be the right trading strategy for mondays session
Nifty resistance levels 5530-5550
Nifty support levels 5450-5400
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Friday, June 3, 2011
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Thursday, June 2, 2011
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For intraday trading tomorrow if Nifty shows strength above 5570 levels, then rally to 5650 levels may be seen. On the down side if Nifty fails to trade above 5,575 levels then selling pressure till 5450 may also be seen.
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DON'T TRY TO TIME THE MARKET. AS TEMPTING AS IT IS TO TRY, IT IS NOT POSSIBLE TO TIME THE STOCK MARKET. PEOPLE HAVE WRITTEN MILLIONS OF PAGES OF RESEARCH ON THIS TOPIC AND NO ONE HAS EVER FOUND A LEGITIMATE WAY TO DETERMINE ITS TRENDS.
USE COST AVERAGING. BY BUYING STOCKS ON A PERIODIC BASIS (LIKE ONCE A PAYCHECK, ONCE A MONTH OR EVEN ONCE A YEAR), YOU WILL ALWAYS BE BUYING AT AN AVERAGE PRICE. IF YOU TRY TO TIME THE MARKET, YOU MAY BE BUYING AT A HIGH OR LOW VALUATION.
TAKE TAXES INTO ACCOUNT. WHEN YOU BUY STOCKS, TRY TO HOLD THEM FOR MORE THAN ONE YEAR SO YOU GET TAXED AT THE LONG TERM CAPITAL GAINS RATE, WHICH IS CURRENTLY 18%. IF YOU SELL YOUR STOCK BEFORE ONE YEAR, YOU WILL BE TAXED AT YOUR ORDINARY INCOME TAX RATE, WHICH IS ALMOST ALWAYS HIGHER THAN 18%, SOMETIMES TWICE AS HIGH.INVEST AS MUCH AS POSSIBLE INTO TAX-SHELTERED 401K, 403B AND IRAS. BY INVESTING IN TAX DEFERRED PLANS, YOU ARE ABLE TO INVEST MONEY AND NOT WORRY ABOUT THE TAX IMPLICATIONS. WITH 401K AND 403B PLANS, YOU GET TO INVEST YOUR EARNINGS BEFORE TAXES, SO THE INVESTMENT WILL GROW ON A HIGHER BASE. FOR EXAMPLE, IF YOU RECEIVED A PAYCHECK FOR $2,000 GROSS PAY AND TAXES WERE TAKEN OUT, YOU'D BE LEFT WITH ONLY $1,200 OR SO TO INVEST. THE INVESTMENT RETURN ON $1,200 COULD BE SUBSTANTIAL, BUT IF YOU COULD INVEST THAT SAME $2,000 IN A TAX DEFERRED ACCOUNT, YOU WOULD BE INVESTING AND EARNING A RETURN ON $2,000 INSTEAD OF $1,200. ALSO, MANY EMPLOYERS OFFER MATCHING INVESTMENTS THAT COULD MAKE THAT $2,000 INVESTMENT EQUIVALENT TO A $4,000 INVESTMENT. PUT AS MUCH AS YOU CAN INTO THESE TAX DEFERRED INVESTMENTS.
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