Category Archives: Stock Trading

Stock Trading

Wall Street Hires Market Psychiatrist

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Wall Street Hires Market Psychiatrist

The Stock Market has become one of the most wildly erratic entities ever seen. That’s why I give them huge kudos for hiring a Market Psychiatrist. Who else could possibly explain the roller coaster mood swings seen on The Street? It’s a mirror image of the American public. The two go hand-in-hand, even though many of us have nothing left in our coffers, unlike the Wall Street corporations who have managed to obtain prescriptions for bailouts and regulations that mean about as much as your mother telling you to get your hand out of the cookie jar.

What a job this new psychiatrist has. I’m sure the bucks are huge, probably paid off in insider stock options full of derivatives and credit default swaps. Well, this doc better have a ton of prescription pads and endless pens. And, who knows if he can actually bring any modicum of stability to such a madhouse. I wish him well.

If the new Market Psychiatrist can find the right mix of medicines to calm the wild anxieties and depressions that the Stock Market has caused, and is suffering from in its own right, that would be one giant accomplishment that the medical world has never seen. Throw in the nonstop hours of group therapy that will be required and I hope this guy doesn’t suffer a meltdown himself.

But, you must give credit to Wall Street. They must know they’ve got a severe emotional disorder. I’d suspect that it’s all due to the catastrophic baggage from all the insufferable fraud and greed that has marked their existence that’s never been dealt with. They must realize that it’s time to come clean and control their horrendous monetary obsessions and urges. It’s rehab of the most daunting order. And, they’ll most likely be forced to register as “economic offenders” for all the world to see.

Grant “Brad” Gerver is an entrepreneur and co-owner of Filibi.com: Quite simply the most generous business online. “Gerv” is also a performing blues artist and songwriter on YouTube. He is a retired elementary school teacher who currently works in the mental health care field.

Article from articlesbase.com

Stock Trading

The Live Stock Market And Investments With Less Risks

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The Live Stock Market and Investments With Less Risks

What is the key benefit of viewing the live stock market? Benefits are many and it is up to you as an investor how you take in the information easily accessible to you. The live stock market can be viewed at an online trading platform or a financial news portal or the corporate sites of stock exchanges. When you stay updated with the A-Z of stories related to the companies you have invested in the Indian share market, taking quick decisions for a win-win situation will never seem difficult. Right from learning about negative factors like scandals to any upcoming event, you will always get benefited. In the former case, you can immediately sell shares before the price drops or invest in the latter that promises an upward trend.

The Indian share market is not only about buying and selling of shares; there are a number of segments directly or indirectly associated with it. For example new technologies introduced do have a direct impact on the share market. The health care and biochemistry segments have been witnessing innovative advancements, shares related to the same may suddenly rise in value. You can well imagine the lucrative consequences of trading in such stocks. You can thus invest your money and continue drawing benefits for the long term. Only the live stock market facilitates you to get informed about such developments.

To survive well in the Indian share market, do invest for the long term; these give more benefits compared to short term investments because of the involvement of less risk. This does not mean that short term investments do not do well; it all depends on the potentiality of the stocks. Moreover, you can expect stability and security to your portfolio with long term investments.

Most novice investors turn to investors they know for some advice. With busy schedules affective urban lives, you cannot expect them to guide you well. You need stock market tips to sail along well in the Indian share market no matter what the tide is. To open demat accounts you will need the services of share brokers. SEBI authorized share brokers who have years of expertise behind them will well serve your purpose. An online stock trading platform will well cater to your needs for top share brokers as well as stock market tips besides opening a demat account. So, venture into the Indian share market after getting registered at an online share trading platform. Get stock market tips from experts share brokers and start gaining from day one of your trading!

The commodity market is also considered one of the lucrative markets today. You can gain the A-Z of information related to the commodity market at an online share trading platform too. The sale or purchase of commodities done at an agreed price and later delivered at a specified date by brokers has so far gained great attention. Get registered and get tips about investing in the commodity market too!

Nirmal Kumar is author of market analyst and is writing reviews articles on stocks and shares, indian share market and share brokers

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Article from articlesbase.com

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Stock Trading

What Happens When Benchmark Lending Rates Increase?

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Benchmark Lending Rates Affect Us All

Reuters announced a short time ago that the Nigeria’s central bank unexpectedly put up its benchmark lending rate by 25 basis points on Tuesday. This caught most of the analysts off guard as Nigeria directed its focus from maximizing growth to battling inflation.

Central bank governor Lamido Sanusi has tended to put economic progress in Africa’s most important oil supplier ahead of preserving a lid on selling price increases, notably just after a near failure of the financial system last year.

But nevertheless, Sanusi said reforms created since he bailed out nine banking companies a year ago meant there was now margin for monetary tightening up, raising the benchmark lending interest rate to 6.25 percent from 6.0 percent in the first hike in more than a year.

“The committee is satisfied and content that an adequate amount of improvement has been made in banking sector reforms to offset the financial risk of monetary tightening to financial institutions,” he shared with a news conference in the capital, Abuja.

He also narrowed the interest rate lending and deposit corridor for commercial banks that sits either side of the bank’s benchmark level by lifting the deposit rate to 3 percent below the benchmark from 5 percent up to now.

Experts said the two moves — pretty much a raising of official deposit and lending rates to 3.25 and 8.25 percent respectively — proved resolve to tame rising prices that quickened to 13.7 percent year-on-year in August from 13.0 percent the previous month.

This comes after the State Bank Of India increased their benchmark lending rates by 0.5% in August and Canada increased their benchmark lending rates in June – both seemingly bothered about inflation on the back of strong growth.

A most important cause for worry to the man in the street is that funding might become more tricky to raise and more expensive to borrow. This places pressure on the banks to expand their lending criteria and primarily makes things more expensive to make and sell. Prices go upward in the short term and so do interest rates. So home mortgages and car loans will become more expensive and disposable income shrinks. – So spend more conservatively and be careful about new debt.

Having said that the Federal Bank reaffirmed that it would certainly hold the benchmark lending rate in a spectrum of zero to 0.25 percent “for an extended timeframe.”

Stock Trading

Benchmark Lending

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What is Benchmark Lending

Benchmark Lending is about short term borrowing – often overnight to cover cash shortfalls – almost like a corporate payday loans kind of thing.

Corporates like banks often find they have a cash shortage overnight and they will borrow money from another bank or the federal reserve. This kind of loan is referred to as benchmark lending.

The Federal Reserve sets the benchmark lending rate in the US. Banks use this option of benchmark lending frequently but they are not the only corporate businesses who experience short term cash shortages.

All manner of large corporate companies face cash shortages from time to time and they also use this option for finding money. They may also make an arrangement to borrow short term from a bank but they can also go outside the banking system for short term loans.

Even individuals can take advantage of short term loans and the interest they pay could be measured by benchmark lending criteria.

There are financial brokers who specialize in Benchmark Lending.

Stock Trading

Stock Picks 101 – Support And Resistance

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How good are you at profiting from the humble horizontal line in your trading? Sometimes the simple things get undervalued in favor of the more complex and intricate.

So, let’s take a look at how useful horizontal lines are on your stock charts. These lines come in two types: support and resistance. Support lines form when a price repeatedly moves down to a certain level and then bounces back up. Resistance lines form when a price moves up to a certain level and then bounces back down.

To find support and resistance lines (we’ll call them S/R lines for short) take a look at a daily chart. You’ll notice that for many stocks, the price will “respect” specific levels.

Support and resistance lines form around levels that market participants consider significant. The supply or demand may be pegged because of a great interest in a stock at a certain price in the past. Alternatively, a large fund may be trying to get in or out at a certain price over a long period of time.

Sometimes, if the S/R line starts to become too obvious, it may “blur” and become a support or resistance zone. Also, S/R levels may be breached briefly and then the price returns. This can be confusing if you’re looking for a breakout from an S/R zone.

It’s important to keep in mind that sometimes it’s necessary to use “reverse psychology” if an S/R line becomes too obvious. There are traders who “lie in wait” for a novice trader to play a breakout or breakdown that turns out NOT really to be a breakout or breakdown. Beware of the S/R “wolf” waiting to snag a naïve sheep at the S/R line!

Speaking of breakouts, S/R lines are meant to be broken. Going long after a resistance breakout and going short from a support breakdown are time honored trading strategies. This can significantly enhance the return of your best stock picks.

Another thing to notice on price charts is that past support can become future resistance and visa versa.

Finally, S/R lines can form in pairs. The price will bounce repeatedly between a support and resistance area. This creates price channels that can also be traded.

As you can see, being aware of support and resistance can give you insight into the future trading direction of a stock. Just be careful not to be too simpleminded.

Doug Newberry enjoys his position as host of the “Market Toolbox On Demand” online radio show and editor of the “Market Toolbox Newsletter.” His company, Investing Systems Network, helps investors find the best stock picks by providing specialized investing tools and portfolio management software. It serves customers in more than 70 countries