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.

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...

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...

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 !!

U.S stocks going down

On Thursday, U.S. stocks were down when Microsoft's proposed job cuts and disappointing earnings shook investors, while economic data showed further deterioration in the labor and housing markets. Microsoft Corp's stock fell nearly 12 percent at one point in the session to its lowest level since 1998 and was among the top drags on both the Dow and Nasdaq, after the world's largest software maker said it would cut up to 5 percent of its estimated work force over the next 18 months. The company cautioned that it could no longer offer profit forecasts for the rest of the fiscal year after posting a quarterly profit that fell short of expectations. The tech bellwether shook up Wall Street by releasing its earnings before the opening bell, instead of after the close as expected.

HSBC turned down the hopes for U.K stocks

Britain's benchmark stock index reversed earlier gains to trade flat on Monday, as oil shares tracked rising energy prices, while Europe's biggest bank HSBC after its first-half results.

At 1059 GMT the FTSE 100 was down 1.8 points, or 0.1 percent at 5,352.9. The blue-chip index lost 1.1 percent on Friday and is now over 17 percent lower this year.

HSBC added more than 1 percent before falling 2.3 percent after it said its first-half profit fell 28 percent, in line with forecasts, as a $14 billion hit on bad debts on U.S. home loans and asset writedowns offset strong Asian growth.

Strong Comeback

After a sharp fall, U.S stocks rebounded on Tuesday rising more than two percent on a sharp slide in oil prices. Data showed that the rate of monthly price declines in the U.S housing market is gradually slowing down and a separate report showed that the mood of the American consumers improved drastically for the first time in six months in July this year. U.S crude prices dropped more than 2percent by relieving concern about inflation and consumer spending and brightening the outlook for a wide range of companies including retailers and airlines. After the share sale, sentiment on financial stocks began to shift with investors saying that Merrill’s latest write-down might be a sign that banks are nearly through purging their balance sheets of bad mortgage debt. Experts say that there is always the hope that this might be the last big financial blowup and some people think that U.S might be getting towards the end in terms of large write-downs.

Hawkish comments lifted U.S dollar

Hawkish comments on US interest rates from Philadelphia Federal Reserve Bank President Charles Plosser lifted the US dollar Tuesday. Experts are suggesting that the US interest rates would have to rise “sooner rather than later” in order to combat inflation. The greenback rallied by nearly one and a half cents against the euro in New York trading, and advanced by one yen to close adjacent to a two-week high against the Japanese currency. But in London, sterling lost ground to the US dollar in the afternoon when Plosser’s commented.

Oil Down....U.S stocks up

U.S. stocks rose more than 1 percent on Tuesday as oil prices slid over $3 a barrel, taking the edge off a raft of disappointing earnings from American Express and others as well as a weak outlook from iPod maker Apple. Oil, which last week had its biggest weekly decline ever, lost 2.4 percent in New York as the U.S. dollar rose easing some worries about the impact of higher energy costs on consumers and businesses. But the Dow Jones was lifted by Coca-Cola, Wal-Mart and Caterpillar.

Drop in Oil helped the U.S indices

U.S stock market did well on Friday with financials helping to drive the market higher on the back of stronger-than expected results from the likes of Citigroup and JPMorgan. Drop in the Oil market helped the U.S stock market to go high. S&P500 and Nasdaq were high on Friday last week. Financial Services lifted the major U.S indices while the regional banks were on e of the heaviest drags. Most of the major financial institutions have reported that the U.S banking system was holding up in a fragile economy, so there's going to be attention on the flow coming in from the regional banks. And it expected that they would be watching for write-offs on the regional banks.

Oil down?

Thursday, U.S stocks soared on a sharp drop in oil. Google, Microsoft and Merrill Lynch showed disappointing results. But it is expected that the same case may not be in Friday of this week. Oil prices fell more than $5, this steep decline in oil eased some concerns about the threat of inflation on an already fragile U.S. economy.

So, down in oil prices might help the Asian markets in a positive way

Dow down?

Dow industrials closed below 11,000 for the first time in two years on Tuesday as doubts about the U.S. plan to rescue mortgage finance companies Freddie Mac and Fannie Mae hurt financial stocks and tumbling oil prices hurt energy shares.

Freddie and Fannie shares plunged over 25 percent on fears that a government plan to stabilize the companies will dilute the value of their shares. U.S. Treasury Secretary Henry Paulson said the plan was designed to be a backstop.