Stocks

A Beginner’s Guide to Spread Betting

December 3, 2011
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A Beginner’s Guide to Spread Betting

Tired of traditional trading on the stock or commodity market? Welcome to the world of spread betting. While having the same risk as with the stocks, it’s tax free, and offers the opportunity to take profit whether the market is in green or red. It covers a wide range of alternatives to bet on; Indices, individual shares, commodities and currency rates. So, what is the Bet? Unlike traditional share trading, you never own the actual share or commodity. You only make a call on whether you think it will go up or down in value. You stake a certain amount of money per point movement; the more it moves in your favour the more money you make, the more it moves against your prediction, the more you lose. Ehat is the Spread? Concept is same like a stock future. The spread is the difference between buying ans selling price. You will buy at the higher price if you think the market will rise (Going Long), or sell at the lower price if you think the market will fall (Going Short). The tighter the spread, the smaller the market has to move for you to make a profit. Now that your

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Get Excited By Red and Depressed By Green

September 30, 2011
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Get Excited By Red and Depressed By Green

I am not talking about traffic signals – I mean the stock market and its movement upward or downward. I get excited when I have money to invest in a market and it goes into the red. I worry about my investable income when I see the market in the green for an extended period. In plain language, I am just in my mid 30′s so now, I am not bothered at all about the market being low. I don’t buy and sell frequently on every ups and downs, I don’t care by how much stock market goes up or down every day. I hate frequent stock trading. “Wall Street makes its money on activity. You make your money on inactivity.” – Warren Buffett Stock market is at two years low, in the last few months I didn’t notice my portfolio growing. It actually lost value. When you are losing your net worth it’s difficult to stand still and do nothing. My hands are itching to act and do something to improve my return. It’s hard to control a decision-making move at this point, a decision to sell that is. Damn! when your stock goes down from $50 to $30

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How Can I Time Stock Market Correctly?

August 31, 2011
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How Can I Time Stock Market Correctly?

Millions of investors ask the same question over and over again: ‘How can I time the stock market?’ You have seen a stock or fund’s 52-week high and 52-week low, and if you are like me, you’ve probably wondered why you didn’t buy at the lowest and sell at the highest. Every stock I see on Yahoo! finance makes me sigh… If only I could have bought the stock at such-and-such date and sold on such-and-such date. I could have been a multimillionaire by now had I timed the market correctly. Various fools and alphas have written tons of articles on timing the market. Experts have written papers on trading strategies for particular stocks, but have you heard any story of rags to riches in stock market trading? It’s one thing to write about stock investing, but it’s another thing to actually profit from it. Have you ever asked these so called experts why they don’t buy the stocks they recommend instead of asking everyone else to buy? They earn a moderate income writing in favor of a stock, but they could earn unlimited income by making profit in stock. Are these guys really experts in picking stocks? Go back

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Every Day Investment Questions and Answers

August 15, 2011
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There are only a handful of financial questions that we ask our self every day.  Finance is not  a cloth where one size does fit all, what needs to be done at any particular time vary widely from person to person. Even the answer we supposed to have known already does not remain valid for long. Our financial priorities keep on changing along with the circumstances. It’s to your best interest that you seek answers to these questions regularly. Below are the most basic financial questions on investing and how I do feel about them. Should I buy Shares in this Market When I am writing this, there has been a market meltdown, so today,  I will advice any one to buy stocks but, when you are reading this, stock market might be sitting at its peak and buying shares now might not be the most intelligent decision you could ever make. Here, I would like to take note of Warren Buffet’s strategy, he gets on to the market when it’s in decline and he keeps on sitting over his investment for long, very long time. I follow his strategy and tap on to the market when it’s in decline

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Stock Market Blues : I Have Started Buying Today

August 5, 2011
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Statutory Warning: Stock market investment is the most risky investment possible. Stocks may lose its entire value, leaving you with no money and no future! (My version of the disclaimer) Saying the above warning let me confess that I started buying selective shares starting today. This is investment, not trading. I don’t trade stocks, I invest in stocks that means I buy and hold them for long-term. I do not follow Cramers of the world or for that matter any TV expert. I don’t go to alphas and fools for their advice either.  I believe only in Buffet and his philosophy. Buy when everybody is selling and sell when every body is buying For past few months I was waiting for this day, the day when Dow will be below 11,500 to buy some more stocks to add on to current portfolio. I invest 15% of my monthly saving in to stocks, and I save 50% of my salary, so I invest 7.5% of salary in stocks. I wasn’t buying any share since April and this money was sitting in checking account waiting for its turn to be picked up. My stock investment strategy might sound funny as I buy

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