Useful Articles

Is it realy a stock market?

anand04 — 2009-11-18T23:59:43-08:00

Dear Fellow Traders,

Everyone related to Stock Market is always focused on the goal of how much they can make buying/selling a stock, they forget to concern themselves with how much they risk loosing. Is it true that �The secret to great wealth in the stock market, is not big gains; its small losses�

Is this a strategy of keeping losses small? If we will win only 1 out of 3 times with our losers loosing 5% and our winners gaining 25% we can make extremely large profits. That�s do the math assuming that there is only 1 out of 3 winners. So if we make 9 trades of USD10,000 each in one month it means we will loose money on 6 and make money only 3. the 6 losers will cost us USD3000 (6*5% loss on each of USD 10,000 Trades) and the 3 winners will net USD Rs7500 (3*25% gain on each of USD 10,000 Trades) for a profit of USD 4,500

Regards

Anand

For More Details Please Visit www.fortunatemanagement.co.in

5 Golden Rules of Trading!

anand04 — 2009-11-02T00:21:59-08:00

Dear Traders,

Here are the 5 Golden Rules of Trading. Which one is the most important in the success of the traders?

1. Invest in the direction of the Trend!

2. Cut Losses Quickly.

3. Let Profits Grow�

4. Diversify.

5. Manage Risk.

Regards

Anand

"DoublingStocks" Review: What Is It & Who Behind It?

smoky8 — 2008-01-13T18:52:04-08:00

"DoublingStocks" Review: What Is It & Who Behind It?

IF you are a novice in investing in stocks and don�t know where to start then "DoublingStocks" is just for you. "DoublingStocks" is a newsletter that is backed by an intelligent software, which was developed by two computer geeks by the name of Michael and Carl. FYi, they had designed a stock analysis software program for Goldman Sachs; a program that nets them $4 Billion profits a year!

The software consists of a stock picking robot program called Marl. This robot program analyzes each and every stock in the market using the technical analysis. The analysis is done on the prices of the stock and the pattern in which the stock prices have risen or gone down and then uses the same analysis to predict the movement of stocks in the future.

The bot in the software searches on the net for top stocks worth investing for and shows you the results in a table format. It automatically ranks the stocks according to their returns and gives you an instant idea as in which stocks you can invest your hard earned money.

How "DoublingStocks" Works?

The "DoublingStocks" recommendations spell out what stocks to buy and why. They also give you the entry point (what price to pay) and a target price (when to sell). I find that these picks are usually a week or more ahead of anyone else picking them up and recommending them. Which puts those of us who have bought, on very solid footing.

After using "DoublingStocks" many people have experienced a jump of about 84% in their returns. Now isn�t that really a lot of money? Michael knew that investment derivative companies such as Sachs and other large investments firms manage portfolios worth millions of dollars of firms such as Google and Coca Cola. However their scope of investment in stocks is limited to just a few large firms.

"DoublingStocks" is capable of showing stock trading chart patterns as well which becomes easier to comprehend. For example, when the price of the stock is displayed in the form of a chart you can easily spot the pattern of the stock (instead of merely seeing figures and trying to understand). "DoublingStocks" uses its own database to scan all the stocks that are listed on the OTC and Pink sheet exchanges.

The software will then narrow down on stocks that look bullish in the near future and display signs of rising prices. All these stocks are added to the watch list of the software so that you can follow these stocks in the near future.

The software has the capability to monitor hundreds of stocks at the same time. After watching the current patterns of the stock, the software automatically develops the capability of the most likely direction that the stocks will follow. "DoublingStocks" also has the capability of analyzing the average price that a particular stock is positioned at. If it finds any difference in the rise or fall of the stock even marginally (like 50 cents) then it start scrutinizing the stock in detail.

Therefore, you will see how "DoublingStocks" help people make a perfect decision in investing & trading the stocks and reaping rich rewards from it.

Unlike any other professional stock trader which can analyze one stock around eight to ten seconds, "DoublingStocks" can analyze up to seven charts per second! Hence the software is extremely selective in choosing only the best stocks to recommend to the investors.

Who Should Not Subscribe This Great Newsletter

As you know that every coin has two sides and so does "DoublingStocks". The software is not for you in case you want to learn more about the share market and want to gain a broader view of it. The software only displays the stocks that perform and provides little information about other stocks. Hence "DoublingStocks" is not recommendable for people who are still struggling to understand what is stock market.

This has got to be the least expensive newsletter out there. And I am guessing that is why some people think it is a scam of some sort. They can't believe this kind of information can be so cheap without some kind of a catch. But I have found "DoublingStocks" rivals those costing thousands of dollars a year! And most of the people I know, they get the entire cost of the subscription, plus a substantial profit on their very first trade!

Isn't that sounds amazing?

If "DoublingStocks" has any openings left when you read this, give it a try. If it turns out not right for you, they will give you your money back. So you really have nothing to lose; and that is unique in this business. The expensive newsletters won't give you your money back no matter what.

...You Can Try The "DoublingStocks" Newsletter, Absolutely FREE For 8 Weeks!...Start By Signup Today: http://shurl.net/5MB

To Your Success,
Professional Stocks Investor
Dan A.

Best stock to pic

rishi — 2006-12-28T09:40:37-08:00

Stocks to look for , best return in 1 week time.
1. Reliance
2. BHEL
3. SUNTV
Major buying is going on in Reliance and SUNTV
Bhel is going under deal...They will give huge return very soon.
However they are quite big scripts but just grab them before its too late

Best Bet: BUY for 50% returns in one year's time

Stock Market India — 2006-12-19T00:40:34-08:00

Source: http://stockmarketindia.net/forum.html?fb_1108459_anch=1797383

JK Lakshmi Cement (Code:500380) Rs.135
Incorporated in 1982, JK Lakshmi Cement Ltd. (JKLC), formerlyknown as JK Corporation, is the flagship company of the reputed and diversifiedHari Shankar Singhania group which also manages JK Paper Ltd. and JK IndustriesLtd. From a modest beginning with a small plant of 5,00,000 TPA capacity, JKLCtoday with 3,00,000 MTA is one of the leading cement companies in the northernand western markets. Its brand name 'JK Lakshmi' is quite popular andemphasises on 'Mazbooti ki Guarantee'. The company has a wide network of 1500 dealersapart from its own marketing offices in Rajasthan, Gujarat, Maharashtra,Punjab, Haryana, Delhi,UP, Uttaranchal, HP and J&K with 60 godowns at various places in everystate to ensure uninterrupted supply to customers. However, 70% of its salescomes from Rajasthan and Gujarat alone.

JKLC's manufacturing plant is located at Sirohi in Rajasthanhaving a clinker capacity of 28 lakh TPA and grinding capacity of nearly 30lakh TPA. It has acquired the latest technologies from Blue Circle IndustriesPLC of UKand Fuller International of USA. Incidentally, the blended cement production ofthe company accounts for less than 50% against the industry norm of about 65%.Blended cement has a better margin as the cost of production is low due tomixing of 20% fly ash. The company is, therefore, taking measures to increasethe proportion of blended cement to 75% by FY07 and to 85% by FY08. Currently,JKLC is also selling clinker in the open market due to insufficient grindingcapacity. Hence it is putting up two grinding units of 5 lakh tonnes each, ofwhich one is expected to commence operation in the next few months and thesecond one by Dec.'07. Post expansion, its cement capacity will stand augmentedto 40 lakh tonnes i.e. 4 million TPA. It is also setting up 36 MW pet cokebased captive power plant, which is expected to be operational by Jun.'07 andwill be lead to substantial saving in power cost to the extent of Rs.30 cr. peryear.

Post restructuring and de-merger, the company'sbalance sheet has become much stronger. To fund its expansion plan, it hasissued around 36 lakh equity shares to Fenner India at Rs.97.50 and 41 lakhwarrants to be converted into shares at the same rate. With the rise in sharecapital/reserves and repayment of debts beginning Jan.'07, its debt-equityratio will improve going forward. And importantly, the OPM of the company isrising sharply due to higher realization, higher capacity utilization and lowercost of production and it may report an OPM of 28% for FY07 compared to 14% inFY05. For H1FY07, its net sales jumped 40% to Rs.352 cr. whereas net profittripled to Rs.62 cr. On a conservative basis, it may end FY07 with turnover ofRs.725 cr. and PAT of Rs.115 cr. i.e. EPS of Rs.18 on its fully diluted equityof Rs.65 cr. At its current equity capital of Rs.57 cr., the EPS would work outto more than Rs.20. For FY08, it may report much higher EPS. Assuming areasonable discounting of 12 times, the scrip could trade above Rs.220.Investors are strongly recommended to buy for 50% return in a year's time.

Investment Quiz

Stock Market India — 2006-11-13T02:34:41-08:00

Questions

1. Elastic Compute Cloud is a venture that aims to make availablecomputing power over the Internet. Which company's brainchild is thisproject?

2. This pioneering company derives its name from a phrase in the Danish language that means play well. Name the company.

3. Rajeev Chandrasekhar, the former telecom czar, recently picked up amajority stake in Malayalam channel Asianet, through an arm of hisventure capital outfit. What's his VC venture called?

4. Started off in 1947, this company, whose name stands for threeoceans, has the bicycle generator lamp, the cabinet radio and thewashing machine as its first products. It has since expanded into aconglomerate that is associated with a range of high-tech products,ranging from entertainment appliances to biomedical devices. Whichcompany are we referring to?

5. Here's another one on venture capital. Norwest Venture Partners hasrecently invested $10 million into Indian portal Sulekha.com. Name theIndian behind the fund.

6. Caterina Fake and Stewart Butterfield are associated with whichsnappy property on the Internet? (Hint: there's a Yahoo connection totheir site)

7. With which global automobile company would one associate the tagline, `SHIFT the future'?

8. It started in 1895 under the name of Laurin & Klement with theintention of manufacturing motorbikes. How do we know this company now?

9. Which alcoholic beverages company has brands such as Jura, TheDalmore, Vladivar and Glavya under its fold? (Hint: in the newsrecently)

10. An easy one to finish: He holds degrees from St Stephen College inDelhi and the Indian Institute of Management at Ahmedabad. His careerhas included stints in advertising (Lintas), marketing(GlaxoSmithKline) and at The Pioneer newspaper, before he went on tohis next venture, which has been in the news recently. Who are wereferring to?

Answers

1. Amazon

2. Lego

3. Jupiter Capital

4. Sanyo

5. Promod Haque

6. Flickr, the photograph sharing site, which was acquired by Yahoo

7. Nissan

8. Skoda

9. Whyte & Mackay (in the news on account of a possible takeover of it by the UB Group)

10. Sanjeev Bikhchandani of Info Edge; the company's IPO closed recently

Forces that Move Stock Prices

Stock Market India — 2006-10-28T07:31:06-07:00

Forces that Move Stock Prices

Among the largest forces that affect stock prices are inflation, interest rates, bonds, commodities and currencies. At times the stock market suddenly reverses itself followed typically by published explanations phrased to suggest that the writer's keen observation allowed him to predict the market turn. Such circumstances leave investors somewhat awed and amazed at the infinite amount of continuing factual input and infallible interpretation needed to avoid going against the market. While there are continuing sources of input that one needs in order to invest successfully in the stock market, they are finite. If you contact me at my web site, I'll be glad to share some with you. What is more important though is to have a robust model for interpreting any new information that comes along. The model should take into account human nature, as well as, major market forces. The following is a personal working cyclical model that is neither perfect nor comprehensive. It is simply a lens through which sector rotation, industry behavior and changing market sentiment can be viewed.

As always, any understanding of markets begins with the familiar human traits of greed and fear along with perceptions of supply, demand, risk and value. The emphasis is on perceptions where group and individual perceptions usually differ. Investors can be depended upon to seek the largest return for the least amount of risk. Markets, representing group behavior, can be depended upon to over react to almost any new information. The subsequent price rebound or relaxation makes it appear that initial responses are much to do about nothing. But no, group perceptions simply oscillate between extremes and prices follow. It is clear that the general market, as reflected in the major averages, impacts more than half of a stock's price, while earnings account for most of the rest.

With this in mind, stock prices should rise with falling interest rates because it becomes cheaper for companies to finance projects and operations that are funded through borrowing. Lower borrowing costs allow higher earnings which increase the perceived value of a stock. In a low interest rate environment, companies can borrow by issuing corporate bonds, offering rates slightly above the average Treasury rate without incurring excessive borrowing costs. Existing bond holders hang on to their bonds in a falling interest rate environment because the rate of return they are receiving exceeds anything being offered in newly issued bonds. Stocks, commodities and existing bond prices tend to rise in a falling interest rate environment. Borrowing rates, including mortgages, are closely tied to the 10 year Treasury interest rate. When rates are low, borrowing increases, effectively putting more money into circulation with more dollars chasing after a relatively fixed quantity of stocks, bonds and commodities.

Bond traders continually compare interest rate yields for bonds with those for stocks. Stock yield is computed from the reciprocal P/E ratio of a stock. Earnings divided by price gives earning yield. The assumption here is that the price of a stock will move to reflect its earnings. If stock yields for the S&P 500 as a whole are the same as bond yields, investors prefer the safety of bonds. Bond prices then rise and stock prices decline as a result of money movement. As bond prices trade higher, due to their popularity, the effective yield for a given bond will decrease because its face value at maturity is fixed. As effective bond yields decline further, bond prices top out and stocks begin to look more attractive, although at a higher risk. There is a natural oscillatory inverse relationship between stock prices and bond prices. In a rising stock market, equilibrium has been reached when stock yields appear higher than corporate bond yields which are higher than Treasury bond yields which are higher than savings account rates. Longer term interest rates are naturally higher than short term rates.

That is, until the introduction of higher prices and inflation. Having an increased supply of money in circulation in the economy, due to increased borrowing under low interest rate incentives, causes commodity prices to rise. Commodity price changes permeate throughout the economy to affect all hard goods. The Federal Reserve, seeing higher inflation, raises interest rates to remove excess money from circulation to hopefully reduce prices once again. Borrowing costs rise, making it more difficult for companies to raise capital. Stock investors, perceiving the effects of higher interest rates on company profits, begin to lower their expectations of earnings and stock prices fall.

Long term bond holders keep an eye on inflation because the real rate of return on a bond is equal to the bond yield minus the expected rate of inflation. Therefore, rising inflation makes previously issued bonds less attractive. The Treasury Department has to then increase the coupon or interest rate on newly issued bonds in order to make them attractive to new bond investors. With higher rates on newly issued bonds, the price of existing fixed coupon bonds falls, causing their effective interest rates to increase, as well. So both stock and bond prices fall in an inflationary environment, mostly because of the anticipated rise in interest rates. Domestic stock investors and existing bond holders find rising interest rates bearish. Fixed return investments are most attractive when interest rates are falling.

In addition to having too many dollars in circulation, inflation can also be increased by a drop in the value of the dollar in foreign exchange markets. The cause of the dollar's recent drop is perceptions of its decreased value due to continuing national deficits and trade imbalances. Foreign goods, as a result, can become more expensive. This would make US products more attractive abroad and improve the US trade balance. However, if before that happens, foreign investors are perceived as finding US dollar investments less attractive, putting less money into the US stock market, a liquidity problem can result in falling stock prices. Political turmoil and uncertainty can also cause the value of currencies to decrease and the value of hard commodities to increase. Commodity stocks do quite well in this environment.

The Federal Reserve is seen as a gate keeper who walks a fine line. It may raise interest rates, not only to prevent inflation, but also to make US investments remain attractive to foreign investors. This particularly applies to foreign central banks who buy huge quantities of Treasuries. Concern about rising rates makes both stock and bond holders uneasy for the above stated reasons and stock holders for yet another reason. If rising interest rates take too many dollars out of circulation, it can cause deflation. Companies are then unable to sell products at any price and prices fall dramatically. The resulting effect on stocks is negative in a deflationary environment due to a simple lack of liquidity.

In summary, in order for stock prices to move smoothly, perceptions of inflation and deflation must be in balance. A disturbance in that balance is usually seen as a change in interest rates and the foreign exchange rate. Stock and bond prices normally oscillate in opposite directions due to differences in risk and the changing balance between bond yields and apparent stock yields. When we find them moving in the same direction, it means a major change is taking place in the economy. A falling US dollar raises fears of higher interest rates which impacts stock and bond prices negatively. The relative sizes of market capitalization and daily trading help explain why bonds and currencies have such a large impact on stock prices. First, let's consider total capitalization. Three years ago the bond market was from 1.5 to 2 times larger than the stock market. With regard to trading volume, the daily trading ratio of currencies, Treasuries and stocks was then 30:7:1, respectively.

James A. Andrews publishes the Wiser Trader Stocks and Options Newsletter. Site contact, http://www.WiserTrader.com. � 2004 Permission is granted to reproduce this article in print or on your web site so long as this paragraph is included intact.

Five common investment mistakes

Stock Market India — 2006-10-28T06:54:11-07:00

Five common investment mistakes

Retail investors tend to be burdened with information on how they should go about investing their monies. Distributors, agents and fund houses all play their part in "educating" investors on this front. Our experience with investors suggests that apart from the aforesaid, there is also a need for investors to be aware of a few common and frequently committed mistakes. We present a checklist of 5 common investment mistakes that investors need to steer clear of.

1. Not setting an investment objective
A large number of investors are habituated to carrying out their investment activity in a haphazard and sporadic manner. Very often they fail to set an investment objective which is a basic tenet of financial planning. Investors should adopt a more systematic approach to investing by creating distinct portfolios for all their needs i.e. short-term (planning for a vacation), medium-term (buying a car) and long-term (planning for retirement) needs respectively. Setting of investment objectives also incorporates a degree of discipline which is a vital ingredient for the success of any the investment activity.

2. Not doing your homework
Investing like any other serious activity needs a fair degree of preparation at the investors' end. Investors need to gather information and acquaint themselves with all the options available to them. Investing in a given asset class (for example fixed deposits) simply because you have conventionally done so is inappropriate. Investors have a plethora of options ranging from mutual funds, fixed deposits, and bonds to small savings schemes to choose from. After getting the facts in place, investors should select instruments that are best equipped to fulfill their investment objectives.

3. Succumbing to the "noise"
Every time the equity markets hit a purple patch, investors come face-to-face with a lot of "noise". Fund houses go on an IPO (Initial Public Offering) launch spree and distributors do their bit by convincing investors that the recently lunched scheme is the place to be. For example recent times have seen a surge in interest in funds of the flexi cap and mid cap variety. Investors tend to succumb to the noise and get invested simply because everyone else is doing so. The trouble is that investors could discard their pre-determined asset allocation and make investments contrary to their risk appetite.
Investors must exercise a lot of discretion and resist falling prey to the herd mentality, especially at a time when everyone around them is busy painting a rosy picture of the investment scenario.

4. Getting attached to investments
Investors must remember at all times that investments are a means to achieve ends (financial goals) and not goals by themselves. If investments have failed to perform their requisite task, then investors should be flexible enough to act on the same. Investors should never get attached to their investments and stubbornly cling on to them. Assess at regular intervals how well your investments have performed and initiate the necessary corrective measures.

5. Timing the markets
A large number of investors like to believe that they can time the markets; nothing could be farther from the truth. If this notion was correct, we would have experienced a surfeit of fund managers and investment gurus. Instead of trying to outsmart the markets and failing in the process, adopt a more scientific approach. Use the SIP (Systematic Investment Plan) route and invest regularly to benefit from the markets. Don't try to beat the markets, join them instead