Monthly Archives: October 2010

Stock Trading

Stock Market And Painful Investment in Nepal

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Stock Market and Painful Investment in Nepal

Stock market is one of the major financial markets of the State and has it’s direct relationship with the State’s economy. Changes in the economy have a large impact on interest rates and inflation which affects the stock or bond markets. Thus, Stock market is often observed as an indicator or the mirror of economic growth and development of the Country.

So, what reflection does Nepalese Stock Market has on State’s economy and development? It’s 468 NEPSE Index!

Does it really indicate the worst economic scenario and falling development of the State? The answer is “NO”

Considering Nepal Stock Market as an economic indicator would be nothing but a blunder because the Nepalese Stock Market graphs little on the function of demand and supply or in the crawling development of the State but draws more on the pooling and the matching of so called big investors and other investing groups who are engaged in conducting malpractices. Stock market being a sensitive fraction of economy and a State’s financial vertebral column yet can be easily influenced by market thugs for their personal benefits. But, the most disappointing scene comes to view when the Government fails to act against them or wedge loop holes, but rather observes the stock market with an unconstructive vision and labels it as a gambling house. And the Central Bank adds a little more by blindly imposing new clauses to demoralize investors and to slow down the market pace.

This unnatural and an uncommon market correction practice of NRB which has been observed in past years with a frequent change over marginal loan clauses and monitory policies specially in the bullish period clearly signifies the pessimistic outlook of the Government towards the Stock Market. Furthermore, the clinging market holds itself hard below the 500 index for several months suffocating many small investors, whereas no responsible bodies have shown its keen interest for markets recompense even by providing temporary flexibility in the clauses or by providing some other possible ways to grant a relief. Similarly, the weak management and irresponsibility of Nepal Stock Exchange and Central Bank can be observe when it blindly ignores the correlation of the primary and the secondary market as it repeatedly grants permission to offer IPO’s even when the secondary market struggles in its bearish age. If only IPO’s are proffered in a systematic and a scientific way understanding the situation of secondary market then sudden drop in stock’s graph can be minimized which is obligatory and a relief doer for both big and small investors.

Stock market is an undeniable part of State’s economy and its negligence can severely harm the State and the people. The best case would perhaps be the Wall Street Crash of 1929-1932 in United States. This rapid decline in the stock markets severely affected business and investors and customers confidence. It also caused banks to lose money and this crash was undoubtedly a key factor that contributed to the length and severity of the Great Depression in USA. But, still after such a long time of market crash Government and other responsible bodies are engaged in their internal conflict which is heartbreaking.

Although, the news of introducing Central depository system (CDS) and new brokers in recent future has uplifted investor’s expectation with its promising output the story still seems to have a long wait. Central depository system (CDS) is a better way for stock management which will eventually replace the current but traditional practice of holding and moving the share scrip physically and a complete computerized based data entry system which will finally cut off the possibilities of scrip misplaced and lost or forged. But, with the new custom there are new challenges too. Government should work on building awareness as this system is new and although it will be an ease for young investors but can be sophisticated to those aged investors who are not familiar with computer system. So, the question arises if the Government and the stock market can monitor or handle this CDS as it has been expected by the consumers?

Furthermore, the hassle that small investors are facing from the stock brokers are expected to be minimized with the admission of new brokers which has though brought a great relief for small investors but the State going through its own internal clash it looks like small investors have to face some more days of hopeless attitudes of cunning brokers.

We hope the future government will help in making our Stock Exchange a better and a safe investing place clearing the loop holes and taking strong actions against malpractices giving stock market an economic standard and not a Gambling House.

Kiran Bista is an Article Writer and a search engine specialist. He is also invest in Stocks and Bonds and has keen interest in writing and sometimes poetry too.

Article from articlesbase.com

Penny Stock Trading

Penny Stock Picks: 6 Rules To Follow

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Penny Stock Picks: 6 Rules To Follow

Penny stocks are high risk, high reward stock plays. When buying these high risk stocks you must pick the right stock to buy at the right price. If you pick the wrong stock or you time your purchase poorly you will lose some money, maybe all of your investment. On the other hand with the right stock and the right timing you could make a huge profit on a small investment. This is stock trading and all stock trading is unpredictable, this becomes even more apparent in penny stocks. Even with research you will pick wrong some times, limiting the losses and riding the profits will enable you to be successful and limit your overall risk.

1. Its a safer to play the listed penny stocks or the over the counter bulletin board (OTCBB) stocks than the pink sheets. Especially when your just learning. The OTCBB stocks must file with the SEC so there is more information available on the company such as the share structure and financial background. You can also find plenty of low priced stocks trading on the major exchanges such as the nasdaq.

2. Look at a companies history, watch out for reverse splits, look for a long record of trading without manipulating stock price or operating shares. These companies will be safer. There is a lot of fraud in the penny stock market and looking at a companies history will help you weed out some of the bad ones. At first avoid “penny stock picks” especially of new companies, just watch the price you could buy at and outcome. They are not usually a good investment, but may be good for quicker trades once you know what you’re doing.

3. Find out what makes the company valuable, do they have a lot of land, oil, gas or diamond mines. Are they ripe to be acquired by another company, are they making their own acquisitions. Do they have patents on their products or patents pending. What is their reputation in the field. If you live in their area or know someone in that area, go visit the facilities.

4. What are the negatives of a company, what do they owe, what are they’re debts and liabilities? If a company you like has too much debt, when that debt is called they may need to sell shares (dump) into the market to raise the capital. Ideally you want a company with no debt for the time frame you wish to own it.

5. Penny stocks in the areas that are running on the major exchanges are usually a good bet, if oil is strong look for oil penny stocks. Same for gold et al. Emerging markets and fast growing industries are also ideal for investment. Stay on top of the market in general take that knowledge to these low priced stocks. Research what will be hot over next few years and then dig through these low priced companies.

6. Decide how much money you will spend/invest on penny stocks. Just a little bit of money, a small percentage of your portfolio and then don’t go over your budgeted allotment. Always be safe with your money, don’t fall in love with a stock, don’t risk money you don’t want to lose. Often traders will allocate 5-10% of their portfolio to the riskier stocks.

If you visit trading stock sites ensure they are reputable. A lot of sites themselves are paid for by companies looking to promote their stock. The Penny Stock Blog is a site worthy of your time.

If you love Penny Stocks view some picks or place your own visit our Penny Stock Forums or read a great article on how to Buy Penny Stocks

Article from articlesbase.com

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Stock Trading

Stock Market Advice For Picking Hot Stocks

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Stock Market Advice For Picking Hot Stocks

The best Stock Market advice you will ever read is to learn from mistakes when someone else has made them. So, this stock market advice list I made a list of some of the most common trading mistakes that are made. Even I`ve made some of these. If you have already made some of the mistakes, you can rest assured that you aren`t alone in making them. If you haven`t made them, then here`s a way to get around having to learn by making the mistakes yourself, by reading my stock market advice list.

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The Stock Market advice tip #1, and worst mistake that people make is that they believe trading is the easy answer, a way to get rich quickly. People will often expect to become wizards in the market overnight, but they fail to realize that trading is like any profession; you must learn how to do it first.

For example, would you attend a weekend doctor`s seminar and expect to conduct heart surgery on Monday? Of course not! I am shocked at what people expect when they go to a weekend trading seminar. They think they will create wealth without having to work, invest or think, and it just doesn`t happen that way.

After treating trading like a get rich quick scheme, my next stock market advice tip #2 and most common mistake, is to approach the market without a plan. Without a trading plan, traders approach the market in an inconsistent manner. One day they trade stocks and the next they trade the foreign exchange. Or, they may use one set of indicators one day, and the next day they will throw these indicators out the window and take on a completely new set. Without a consistent approach, the only thing governing their trading decisions is really emotions, and that will doom them to failure.

If a new trader has managed to skip these last two mistakes, they often fall down when they try to go it alone. This is my Stock Market advice #3, all traders should find themselves a coach, or a mentor. Someone who can help them spot the errors in their system that they might not have noticed. An outside point of view can help you avoid other costly mistakes, and greatly increase your profits.

These are some common and quite basic mistakes. The next errors I`ll mention are ones that are just as prevalent in the trading industry, but they often occur once traders have been around for a while. I have some personal experience with these mistakes. Let`s call this stock market advice list, the three most expensive mistakes I`ve made.

My stock market advice mistake tip #4, or the first most expensive mistake, I made was to search for the “Holy Grail” of trading. This was an incredible waste of both time and money. During the first three years of my trading career, I spent over ,677 on a library full of books, videos and seminars as well as spending thousands of hours in search of the perfect trading methods. Honestly, 95% of what I bought was pure junk… I should have listened to my mentor earlier and realized the “Holy Grail” of trading is simply excellent money management!

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My stock market advice mistake tip #5 or the second most expensive mistake I made was not having a predefined exit point. Early in my trading career, I remember trading a stock I thought had a high percentage chance of rising. I was too confident. I fully leveraged the position. Unfortunately, when things did not go as planned, I did not know when to exit, and was paralysed. I kept rationalizing why I should hold onto that stock. As the stock continued to fall, I made more and more excuses. At the very end, I remember thinking, “I can`t take it anymore!”

I sold out. That, of course, was the point the stock turned.

I learned two very valuable lessons that day. First, always have your exit points predefined. Second, big losses once started out as small losses, and it is much easier to take a small loss than a big one.

My Stock Market advice mistake tip #6 or the last most expensive mistake, I made is not one that took money out of my pocket; instead it was a mistake that made me leave money on the table. In fact, this reoccurring mistake cost me big.

Early on, I remember selling positions as soon as they showed a profit. I would not let my profits run, as I was too afraid to give the money back to the market. I figured the profit as mine. The result was that I ended up selling the stocks that were making me money.

It wasn`t until my mentor explained to me that when you are trading, and showing a profit, that is the point where you should be adding to the position, not closing it out, that I began to understand what I was doing. Once I started following his advice, my trading profits soared.

Trading is not an easy profession, but it give you great rewards. Avoid these common errors on my Stock Market advice list, create a simple, well-designed trading system, and learn your market. If you take the time to study the market, and learn from other`s mistakes as well as your own, you will become a successful trader.

Get Best Penny Stock Pick Program to help you to make profit!

 

More Stock Market Trading System Tips:

Trading Pro System is a complete video training course and teaches the traders to trade with confidence. The comprehensive 24 hours video training provides a bunch of strategies and tactics and a lot of content about trading in the stocks and options market. The system uses simple language and is created by businessmen which imply that the secrets of winning are at your fingertips.

Stock Market Index Secret is by Karl Dittman, a 30 year veteran of stock market trading. Karl maps out a really simple ’secret’ formula that can point you at a method of targeting a stock or an index on any day and make a profit. If you follow his patterns, you can can see opportunities to take good profits.

The Secrets of Sucessful Traders Guide was preferred amongst our team of researchers. It offers the most practical stock trading advice for beginners looking to find success in the stock market without losing their house. It is a step by step instructional guide which clearly explains everything you need to know about the industry and is patiently explained in detail to ensure that you are fully aware of how the stock market works before making your first investment.

Article from articlesbase.com

Stock Trading

What Everybody Should Know… About Online Stock Market Investing

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What Everybody Should Know… About Online Stock Market Investing

Online stock market investing is one of the prime ways to make a lot of money easily. But you have to know the basics of the trade before you jump into the business. This is why it is best to get trained in some inexpensive stock market trading courses before you get into the business.

Though online stock market trading is one of the easiest and fun ways to make money sitting at home, one always has to be aware of the dejections in front. Stock market is a very vulnerable market and though one day you can see a large amount of profit, the next day can see you make a bit of loss. So you have to be prepared mentally for this business.

Basic Concept

The basic concept behind share market trading goes like this. You purchase a stock of a company. By this you become a shareholder. The company uses the money to expand its business and then gives you a share of its profits. The other and most common way to make money of the stock traders is when a company’s fortunes keeps on rising.

The continued increase in a company’s profits lead to an increase in its share price. This is when the investors of that stock sell those stocks for a larger amount of money than they invested originally. Losses happen when the price of a stock goes down after an investor has bought it.

Stock market investing has become more accessible nowadays due to online stockbrokers. Now you can trade in stocks just by sitting at home. All you need to do is find an online brokerage firm and then create an account with them. You can set your financial goals and buy and sell stocks through this account. However it is better to go with some firm which has a good reputation in this field.

Benefits

The first important benefit of stock trading online is that you can see the status of your account 24/7. All the stock information will be on your fingertips and you can also be aware of information about the company where you have invested or want to invest. Since this kind of trading reduces overhead costs, it also results in reduction of the broker’s charges, mainly ranging between and every trade.

Online stock market investing has a lot of other benefits. The most important of them is that companies allow their investors to chart up the profitable stocks. They also inform you of the latest stock market news. The best part about stock trading is that, all you need to do is sit in your home while operating your account. You do not have to run in the stock exchanges or go from company to company for news on their stocks.

All you need to be is a bit internet savvy and have knowledge about stock trading strategies. If however you need guidance in your business, these online brokerage firms also fix you up with investment counselors and other brokers. You have more liberty over how you want to handle your stocks.

Thus online stock market investing is the way to go if you want to go for stock trading.

Initially I viewed the stock market as a daunting prospect to invest my hard earned dollars. Until I discovered the truth about how to trade the stock market as a business with this complete guide to stock trading. This is an ideal way to learn why online stock market investing is for you. To see what I’m talking about, simply visit:  http://BusinessTradingSystem.com

Article from articlesbase.com

Penny Stock Trading

Penny Sleuth’s 10 Tips for New Penny Stock Investors

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Penny Sleuth’s 10 Tips for New Penny Stock Investors

Many people who have never played the stock market game before start with penny stocks. Heck, even if you’ve been around investing for decades, penny stocks are still your ticket to triple, quadruple or even quintuple-digit gains. You just can’t see those if you bet on the Dow.

The problem is penny stocks are a bit more difficult to research than their large blue chip cousins. To make this a bit simpler for first-time investors, here are 10 things to keep in mind when looking for solid penny stock plays:

1. Think Outside the Box

When it comes to penny stocks, some of the wackiest ideas have translated into serious gains for investors who were willing to think outside the box…

Back in the day, who would’ve thought that computers were the “wave of the future”? Early investors in companies like Microsoft and Yahoo, that’s who! They made a bundle by thinking outside the box and betting on business models and technologies that were out of the ordinary.

There are new technologies and business models out there in the penny stock world today. Are you willing to think outside the box on your next penny investment?

2. Know What You Own

In the world of Wall Street, whether you’re investing in penny stocks or blue chips, one of the biggest rules is to “know what you own.” What does that mean?

You should know the company you’re investing in inside and out. Know its business. Know how it makes money. Know its management.

But as important as this rule is for any investor, it’s doubly important for investors in penny stocks! That’s because with penny stocks, share prices can change quickly if you don’t keep a handle on them.

So know what you own and your investments won’t end up owning you.

3. Don’t Get in Over Your Head

When you see a hot penny stock that’s ready to take off, it can be hard to keep from cashing out your 401(k) to buy as many shares as you can…getting in over your head with penny stocks is an almost sure way to get burned.

Even though penny stocks can make you some serious money, they’re volatile – and that means you shouldn’t put more than 10% of your portfolio on the line.

What’s the smart penny investor to do? Set up an account for just penny stocks and load it only with money you’re prepared to lose.

4. Don’t Be Afraid to Ask…

One of the beauties of penny stocks is the fact that they’re smaller companies that are out there for smaller investors.

As an individual investor, a big multinational might not give you the time of day. That’s usually not the case with penny stocks. In fact, it’s not unheard-of for individual investors to pick up the phone and chat with a company’s CEO or CFO on the spot.

If you’ve got a burning question about a penny stock prospect, e-mailing or calling the company’s investment relations firm or corporate offices might be one of the most telling ways to figure out if that stock’s for you.

5. Be a Skeptic

Remember when we said to think outside the box? Well, do that, but don’t forget to be a skeptic…

Just because a company has an interesting new idea doesn’t necessarily mean it’s a good penny stock prospect for your portfolio. The key is…Do you think that it can monetize its idea?

If that answer isn’t immediately clear, it’s time to dig a little deeper into that company’s prospects. Thinking outside the box is a great way to get innovative companies on your radar, but being a skeptic is the only way to make sure that translates into gains for your portfolio.

6. Think, Then Buy

When you’re ready to buy shares of a penny stock, make sure you take a second to think about what you’re doing. All too many first-time penny investors take the jump on just a few shares of a penny stock without realizing how much the size of their investment will affect their returns.

Think about it this way…You’re an investor who sees an attractive stock for per share. You don’t have a large portfolio yet, and you don’t want to take too much of a risk, so you buy just 50 shares for .

Turns out you picked a winner that made 40% in just a week – of pure profit. You sell and rejoice in your penny stock success. But wait…is that celebration justified?

You’re forgetting about those execution fees you paid to buy and sell that stock. That’s altogether. Looks like you only broke even, despite the fact that you had a stellar stock.

When you’re buying penny stocks, make sure you’re buying a large enough quantity that account costs (like execution fees) don’t eat up your profits. You can find out your minimum returns to break even with this:

Execution Fees/Stock Acquisition Price x 100 = Break-even Gain (Percent) Needed

7. Don’t Get Greedy

Lots of penny stock investors see 200%, 500%, even 1,000% gains on a stock but still end up losing money in the end. It’s not because they didn’t plan their buys properly…it’s because they got greedy!

It doesn’t matter how much money a stock makes if you’re not ready to press the button and realize those gains. That’s why you need to set solid exit points for any penny stock you buy.

It’s human nature to want to hold onto an investment as you see it climb with no end in sight, but doing that is a great way to miss out if that trend turns around. When you analyze an investment, think about a logical exit price and sell for that. Picking solid exit points will become easier as you develop your investing chops.

8. Don’t Get Too Nervous

The flip side of getting greedy is getting nervous with stocks that are seeing major gains in short periods of time. Relax. As a penny stock investor, you’ve got to be ice-cold when you see one of your picks take off.

Again, it comes down to picking good exit points for your investments. If you’re sure that your stock is bound to start losing ground before you hit that target price, maybe it’s time to re-evaluate what that price should be.

Remember, you can reanalyze your targets anytime, but you should never make trades on emotion alone.

9. Be Realistic

While investors might hope for tripe-digit gains on every pick they make, even the most seasoned pros of the investing world make bad picks from time to time. That’s why having realistic expectations is so critical.

As with picking the right target prices, knowing what kind of gains to expect comes with experience as a penny investor. It’s tricky to know when you should expect 20% from a stock and when you should expect 200%.

But setting those realistic expectations now, from the get-go, will get you into a habit that will help you structure your portfolio in a way that will get you the most bang for your investment buck.

10. Be Ready for the Next One

It’s easy to sit back and relax after you’ve just made a trade – especially if you banked a nice gain. But not so fast!

As much as you might want to bask in your investing success, fight that urge.

The secret to the penny stock game is to always be on the move. Always be on the lookout for that next penny powerhouse – the next one might just be your best yet.

Cheers,

Jonas Elmerraji

P.S. That’s a lot to look for. This kind of steady research and analysis can be very tedious. In fact, by the time you finish it, you may have already missed the boat. These penny stocks can shoot up in the blink of an eye. That’s why we send out the Penny Sleuth every business day. We don’t want readers to miss a thing. To get the insights we provide on the penny stock markets visit www.pennysleuth.com

Jonas Elmerraji is a contributor of the FREE daily e-letter The Penny Sleuth. The Penny Sleuth offers unbiased commentary from expert analysts and authors on Small Cap Stocks, Penny Stocks, OTCBB and Pink Sheet Companies.

Article from articlesbase.com

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