Technical Analysis of Stock Trading

Technical analysis is an important aspect of stock trading by which one can easily understand the direction of stock i.e upward or downward. Technical analysis is a tool mainly used by traders as compared to investors. Determining exact entry and exit in any stock is quit tough, but with the help of technical analysis one can easily discover exact entry and exist point in a stock in which traders or investors want to do trading or want to make investment.

Technical analysis had come up as an effective tool for many traders and investors for doing stock trading. Many technical analyses believe in price charts formation for conducting stock trading. With the support of price chart technical analysis determines the direction of stock, they can determine the exact bounce-back position of stock if the stock goes downward, and they can determine the exact reversal of stock if the stock moves upward. There are also various factors which fall under the technical analysis standpoint such as volume of the stock, moving average of price, overall sector performance, % of stock holding by big financial institution, mutual funds, per day, per week, per month, per year stock performance, etc. Technical analysis more believes in the same stock trends rather than undefined trends. If there is no clear trend pattern technical analysis loves to stop their stock trading or likes to remain out of market until a clear trend is form no matter how the overall market pan out i.e. move upward or downward.

More than investor, trader basically finds technical studies useful while doing stock trading. Fundamental analysis and technical analysis goes hand-in-hand. If there is significant fundamental change in any particular stock, an immediate impact is seen in stock performance and with the help of technical studies one can get a clear trend about the same stock. If at any point fundamentally stock is showing poor performance at that point technical analysis looks from fundamental point of view to a stock and makes his technical decision how big that particular stock will fall down further and same vice versa if the stock is fundamentally making good performance.

Online Trading Tips

Online Stock trading is one of the best online home based business.

If you are doing online stock trading or considering doing it, this could be then the most eye-opening few moments for you.

Direct investment in stocks gives you an opportunity to own a stake in the growth and success of productive companies. When you buy stocks in a company, it means that you actually owe a part of that company. As part owner, you benefit by receiving part of the profits (dividends) and sharing in the growth of the value of the company. The company benefits by raising funds (capital) when you’re stock and other stock are first sold. These funds are used to operate and expand the business.

What is a stock?
A stock is a piece of an active operating company, which is allotted to the stockholder against their investment done in that particular company. The value of the stock increases when the company grows and makes descent profit.

Doing online stock trading can be exciting, fun, and extremely rewarding for the peoples who are dreaming to work from their home and to earn money. Online stock trading is probably the only online home based business in the world where you can point, click, and earn money. There is no inventory to deal with, no supplies, no phone calls, no bills, no traffic, no complaints and no marketing, whatsoever; in fact, you don't even have to talk to anyone! It's the great hands free, no stress out way to earn money. You can do it anywhere in the world, all you need is a computer and internet connection.

The stock market has changed dramatically over the past few years. Lots of people mentally still believes that buying and holding the stocks for several days at a time gives you to capture the major swings in the markets. However, this is no longer true, as world economics, natural disasters, over-dependence on oil, and similar 'shocks' to traditional systems plays a bigger role in moving stock prices, most often overnight while you and I are asleep. This is why we no longer seize overnight positions. Instead, we find the high momentum stocks, buy and sell in the same day through your home via online stock trading.

This is all about online stock trading. It's all about private traders who earn money and work from home, buying and selling stock in listed companies. It is also about building money and that means buying and selling for a profit. Some people buy stock as a long term stock investment. Others see them as a hedge against inflation and some stock market investors are interested mainly in the dividends and regular income. Day traders buy stock to sell or sell stock to buy (goes short) - and they consistently makes money. Starting with very little capital, they set themselves up as a stock market trader working from home.

Good Investment

Investments or investing is an efficient and stronger tool mostly used for prosperous future financial by an entity or a retail individual, in broader term it can be differentiated in many different ways but the end result should be to increase your asset in longer term.

For an individual the investment should be more important because this is the only credible way where an individual can make their future financial situation protected. There are many different ways where one can look to invest their money to have consistent, sustainable and convincing returns in their future life. Some of the favorite and stronger investment classes could be insurance, real estate, stocks or shares, mutual funds, gold, etc.

Investing in stock or share is said to be quite risky as compared to other investing portfolio but it is also having said that returns on stock can be many more stronger than other investment classes, however just making an stock investing could not be the answer for it but executing it wisely and intelligently only could be worth otherwise chances of investment crisis is also possible.

Real estate is also a very good destination to invest money but this class also includes risk. 2007 year was worst performer year for US real estate investor due to slowdown in housing market as well as due to credit market crisis. The mortgage and credit crisis was caused by a large number of home owners unable to pay the mortgage as their home values declined.

Maximum of the peoples choose insurance as their most favorite class to invest their money as risk appetite in this class is extremely low or negligible and returns are also clearly visible depending upon the insurance plan they choose, however return on investment in this class could not be as worth as in other classes.

Gold is also said to be the best place to invest money but maximum of the individual does not buy gold as an investment but they buy gold for showing their wealth enhancement, for prosperity and it also shows a great sign of richness.

BSE Holidays List in 2009

The following post shows BSE holidays for calender year 2009 from January to December 2009

Sno. - Event - date/month/year - Day

1 - Moharram - 8th January 2009 - Thursday

2 - Republic Day - 26th January 2009 - Monday

3 - Mahashivratri - 23rd February 2009 - Monday

4 - Id-E-Milad - 10th March 2009 - Tuesday

5 - Holi - 11th March 2009 - Wednesday

6 - Ram Navmi - 3rd April 2009 - Friday

7 - Mahavir Jayanti - 7th April 2009 - Tuesday

8 - Good Friday - 10th April 2009 - Friday

9 - Dr. Ambedkar Jayanti - 14th April 2009 - Tuesday

10 - Maharashtra Day - 1st May 2009 - Friday

11 - Ramzan Id - 21st September 2009 - Monday

12 - Dasera - 28th September 2009 - Monday

13 - Gandhi Jayanti - 2nd October 2009 - Friday

14 - Diwali ( Bhaubeez) - 19th October 2009 - Monday

15 - Gurunanak Jayanti - 2nd November,2009 - Monday

16 - Christmas - 25th December,2009 - Friday

17 - Moharram - 28th December2009 - Monday

Become A Crorepati Within 10 Years

If you had bought 100 shares of Wipro at the rate of Rs 100 per share in 1980, they would be worth Rs 200 crore today.

If you had invested Rs 10,000 in Infosys shares in 1992, you would be richer by Rs 1.5 crore today.

If you had invested Rs 1,000 in Ranbaxy in 1980, you would have got Rs 1.9 crore today!

And not so far back in time, if you had invested Rs 40,000 in Unitech during the lows of 2004, your bank account would see a whopping Rs 1.1 crore today!

Some guy out there knew this. Today, he is laughing all the way to the bank.

So what was the magic strategy that made this guy so rich? It's simple.

He bought, he waited

Waited for all those share splits and bonus declarations.

Waited for the company to grow from strength to strength.

Waited even when the shares teetered only to recoup in a few years’ time.

Just as a child takes time to realise his/ her full potential, so does an investment need time to reward you handsomely.

Sure, the times are uncertain now. But let that not scare you to sell for a loss.

Patience pays

Look back. You will notice that selling in such times makes no real sense in the longer run. Those who didn’t sell their stocks during May 2006 crash but had, in fact, bought more would be a very happy lot today.

Investing long term is like that: it rewards you handsomely. Always. Exercise patience. As champion broker Rakesh Jhunjhunwala said recently, if you want to learn more about patience, get married!

The way I see it, you don’t really need to get married to learn patience. Just look back in time. All these stocks have been multi-baggers for those who stayed on for the long term. They would have fetched you unimaginable returns today.

Do your research

You will learn a thing or two about making crores from a few lakhs.

You can still make those crores!

Turn a deaf ear to the skeptics; look at beaten down sectors.

Consider aviation and hospitality. Today, aviation stocks are way below their lifetime highs. But, as India grows, so will travel. And within the next three years, they will reward you handsomely.

Most people ignore aviation and hotels. And that is why they merit my attention.

Pick up stocks that others are ignoring. People who create wealth do things that others do not. I am sure you could make crores if you do too!

Share Trading

In finance a share is a unit of account for various financial instruments including stocks, mutual funds, limited partnerships, and REIT's. In British English, the usage of the word share alone to refer solely to stocks is so common that it almost replaces the word stock itself.

In simple Words, a share or stock is a document issued by a company, which entitles its holder to be one of the owners of the company. A share is issued by a company or can be purchased from the stock market.

By owning a share you can earn a portion and selling shares you get capital gain. So, your return is the dividend plus the capital gain. However, you also run a risk of making a capital loss if you have sold the share at a price below your buying price.

A company's stock price reflects what investors think about the stock, not necessarily what the company is "worth." For example, companies that are growing quickly often trade at a higher price than the company might currently be "worth." Stock prices are also affected by all forms of company and market news. Publicly traded companies are required to report quarterly on their financial status and earnings. Market forces and general investor opinions can also affect share price.

Quick Facts on Stocks and Shares

• Owning a stock or a share means you are a partial owner of the company, and you get voting rights in certain company issues
• Over the long run, stocks have historically averaged about 10% annual returns However, stocks offer no
  guarantee of any returns and can lose value, even in the long run
• Investments in stocks can generate returns through dividends, even if the price

How does one trade in shares ?

Every transaction in the stock exchange is carried out through licensed members called brokers.

To trade in shares, you have to approach a broker However, since most stock exchange brokers deal in very high volumes, they generally do not entertain small investors. These brokers have a network of sub-brokers who provide them with orders.

The general investors should identify a sub-broker for regular trading in shares and palce his order for purchase and sale through the sub-broker. The sub/broker will transmit the order to his broker who will then execute it .

What are active Shares ?

Shares in which there are frequent and day-to-day dealings, as distinguished from partly active shares in which dealings are not so frequent. Most shares of leading companies would be active, particularly those which are sensitive to economic and political events and are, therefore, subject to sudden price movements. Some market analysts would define active shares as those which are bought and sold at least three times a week. Easy to buy or sell.