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.

QE: A Happening Term these days

QUANTITATIVE EASING

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.

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...

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

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.

One Strategy 4 Successful Trading

Ways to become successful in Trading

Regular Home Work,
Keen Observation ,
Diversification of Investment
Patience
Following the markets carefully,
Trend analysis
and above all WISE thinking would help to become successful in trading

ROBO: MOVIE BUSINESS

ROBO MANIA

They say that there is no other business like Show Business and quite correct indeed. Everybody wants entertainment and movies are the biggest entertainers around the world. India is a country which is famous for so many things and is also the most famous for movies.

But South India is a different one altogether. The cinema craze is huge in south India and they treat the stars as equal to God. And the latest happening movie is ROBO worldwide.

Rajinikanth is celluloid deity. What an actor so is the movie!!

ROBO is said to have costed to a whopping INR 150 crores and is expected to make a profit of between INR 300-400 Crores which is double the actual budget. The movie business is an excellent start for a terrific career but it will work only if it clicks. 

Movie Business is just like trading the stocks or any other market. In Show business, audience rule the movie-markets and in trading the audiences, their speculations and few other factors will rule the stock-markets.

but......its all business at the end !!