Tuesday, November 16, 2010

Profit or Loss.....they are part of our lives

Nobody likes losses. But as a trader, they are part of our lives. So what do you do when the first couple of trades are losing trades? Should you stop trading for the day?

No...absolutely not.. We should learn form our mistakes. We should start to analyze where did we anticipate wrong? why did we sell at a such a lower price? was that movement of ours correct at that point of time?

We learn many things only when we loose few trades. Its absolutely doesnt mean that we should wantedly loose trades. It only means when we loose, we need to learn.

we should look out for ways to trade. We should trade with paper currency on different trading platforms and on different instruments. Only then we will gain knowledge, experience, patience, we will understand the strategy..

Good luck traders.

Friday, November 12, 2010

Cisco in News

Cisco's discouraging outlook has dragged the Wall Street lower. Cisco reversed the gains and its earnings were dull.

But most of the investors viewed Cisco's problems as company-specific.

Tech bellwether Cisco Systems lost its market value in frenzied trading, a day when a gloomy revenue outlook left investors jittery, and some brokerages downgraded the stock.

yes Cisco news has driven the US stocks to end up lower...but I think its to do with a company and it should not bother (impact) other stocks...

Thursday, November 11, 2010

trading commodities or currencies ??

hi !!

I think when compared to currencies...trading commodities is better. I view commodity market as a safer place than forex. Speculations and fluctuations drive forex market to a highly riskier place to be in...

My fellow traders at gnutrade say that they both are same provided you play the trades with knack....

mmm....just thinking to try forex market at a full length...

Tuesday, October 26, 2010

Inverse Relationship !!

We have seen direct relationship between the commodities, stocks and currencies.  We are also aware of the inverse relationship between the dollar and the commodity market especially the oil.  When the dollar value increases, the crude oil price decreases and vice-versa.

But the latest in news, happening in news is all about equities.  Equities and  the dollar have formed an inverse relationship, so as the dollar drops,  equities often advance.  Growing speculations that the Fed would extend monetary easing at its next  meeting in November has pressured the dollar while boosting equities.

I think dollar will loose ground in the near future and the US stocks are the best options to invest in and Euro/Sterling(Pound) will gain momentum.

Thursday, October 21, 2010

QE: A Happening Term these days


The term Quantitative Easing (QE) is in news from many a days and I couldnt understand what it means so?...and I thought there may be many like me who are not aware of this term.  So lets take a look of it as to what it means??????

QE describes a form of monetary policy used by central banks to increase the  supply of money in an economy when the bank interest rate, discount rate and/or interbank interest rate  are either at, or close to, zero.

A central bank does this by first crediting its own account with money it has created ex nihilo ("out of nothing". It then purchases financial assets, including government bonds and corporate bonds, from banks and other financial institutions in a process referred to as open market operations.

The purchases, by way of account deposits, give banks the excess reserves required for them to create new money by the process of deposit multiplication from increased lending in the fractional reserve banking system. The increase in the money supply thus stimulates the economy.

Risks include the policy being more effective than intended, spurring hyperinflation, or the risk of not being effective enough, if banks opt simply to pocket the additional cash in order to increase their capital reserves in a climate of increasing defaults in their present loan portfolio.

Friday, October 15, 2010

Market Timing is crucial

If we are buying stocks, then timing is very important. Timing stock market investments affects the value of the stocks that are bought or sold in the market. Market timing affects the profit returns of a buyer or a seller in the stock market. It is also a method of strategic importance in the stock market. Market timing is attributed to logic and can become an acquired skill. It is a skill that can be a strength to a person who participates in the market, whether as an investor, or as a stock broker who knows how to play with stock market timing.

Market timing determines whether a stock seller or a buyer would benefit monetarily or otherwise from his purchases or sales. Most stock holders hold their stocks up and wait for the value to increase. When the value of these stocks increase in the market, this is the time when they plan to sell because it is at this time that profits are projected to be high.

However, peaks and lows in the stock markets are unpredictable and irrational. But this does not mean that timing stock market investments is not good. They are good, provided you analyze the timing pattern.

WallStreet on losing streak

Weak US jobless claims data and losses on Wall Street influenced the crude oil in a negative way. And this also declined the fuel inventories.

I think crude oil would stay lower for this whole week...and I think buying oil would be fine....

Market Talk is important

hi friends !!

I have been continuously observing wall street this week and it is down for one or the other reason.
Today as banks in US performed terrifically bad so the stocks are down...  And also few dared to place bets ahead of key companies' results which are due to release later this week.  

for more reasons..you can check out gnutrade market talk section...

Friday, October 8, 2010

In Trading.......Trust only your experience

hi friends

Im a trader by profession...and when I was a novice...I did not know where to invest in? when to invest in? but wanted to earn loads of money.  I had a zeal, I had a passion to win all the trades and make money quickly.  But stock-market is a different world altogether.

I have learnt many a things in my career as a trader.  I lost many trades due to lack of experience, lack of wise thinking, lack of home work and lack of good advice.  Many people out there will only try to degrade you, they would like to see our downfall.  They would be more interested in our downgrading pattern.

I lost few of my trades because I have listened to few people who guided me in a opposite direction....and thus lost my money.   

So friends.....always trust only your experience, trust only your instinct......because even if you lose, you will not blame anybody..

good luck traders

Thursday, October 7, 2010

Invest in Stocks...says a Billionaire

Forbes has recently listed out the 400 richest people in the world and Ron Baron is the one  who is listed as number 306 among other billionaires.  Ron Baron, a billionaire said in an interview that "save and invest and invest and save" is the mantra that he follows.  He said invest in small and mid cap companies and in those business who believe in investing saving.

I learnt from Ron that we should not judge people and businesses and we should have faith in  other's business and their foresight.  "Build a brand.  Building a brand is possible with repititive advertising and also maintaining the brand."

Ron said that stocks are cheap now when compared to earlier as people are afraid to invest  in them and Bonds are right choice for long term investments.  Ron Baron has given really  useful tips and I think I will be following those tips now.