Friday, February 22, 2008

Money online easy way

You may trade online and make money but making money online is not easy. When you trade without any knowledge the odds are 50-50, however when your calls are based on processed information it tilts the odds in your favour. It is with this reason that it is essential to understand both the fundamental aspects as well as the technical aspects of trading.
the technical charts are like X-rays that help the radiologist in understanding what is happening inside. Technical charts also give us a similar perspective. So always make an endeavour to learn about them -it will certainly pay. But remember making money online is not easy as it seems- so LEARN and EARN.

Wednesday, February 20, 2008

Trading Socks based on Candlestick Charts

Most Technical analysts trade stocks based on candle stick chart patterns which is a japanese art and depicts the prices in form of a candle. These candles are studied individually as well as in relation to its previous candles to determine the emerging pattern. The pattern consists of opening price, closing price the days high and low but also depicts the type of the day it has been or that particular moment depending on the time span under which the stock is being studied.. The candles which are bullish or indicate upward trend are depicted in white and where the closing is below the opening is depicted in black. Thats for now .. more later-happy trading.

Types of Technical Charts

There are Primarily three types of Technical Charts viz; The bar charts, The Candlestick Charts and the line charts. These charts depict the relationship of price with time. The time element can be anything from a tick, second to hours ,days and months.
The line chart is a continuous line joining the closing prices. The bar chart shows the open, high-low and close with ticks. The candlestick chart comprises of a candle body and wicks at either or both ends signifying the high or the low. Candlestick chart patterns depict an emotional angle to the trading.. more so later.

Google looking for Investment Consulting firm in India!

Google is looking for an investment consulting firm in India.
Could Invest-Consulting-India be the answer ? From the name it appears so, but the Google is planning for investment of more than 17 Million Dollars in Micro credit industry to help the SMEs (Small and Medium Enterprises) in setting up their enterprises thereby generating income and providing job opportunities.
There is a huge gap between micro finance companies who provide small loans and the major players . Google wishes to exploit this opportunity. -Our best wishes if it is going to generate more employment.

Tuesday, February 19, 2008

World Stock Market Crash

The recent world stock market crash led by the subprime lending rates crisis had many people baffled, but the technical analyst who had been monitoring the charts saw the early warning and got out.
The market had changed from the trending market to trading market and when the support level of the trading market was broken there was the beginning of a downtrend. Again the Support and Resistance Levels come into play from the longer term perspectives- the time frame of trading as discussed earlier whether it is intraday, day trading or weekly trading comes into play. So keep these in mind while trading and - Happy trading!

Monday, February 18, 2008

Trending Market or Trading Market ?

Whether the stock market is in a trending mode or trading mode is defined by the way it behaves with the Support and Resistance levels .
If the market is staying within the support and resistance level continuously or is range bound , then it is said to be a trading market. If however the market is breaking the resistance level and climbing high it is said to be in an uptrend and if it is breaking down from the support levels and falling down it is known to be in a downtrend. The uptrend and the down trend form part of the trending market in such a case. One has to adopt different strategies while taking a call in these two different scenarios or else you will land up with losses . So keep this in mind nest time you trade..

Sunday, February 17, 2008

Leveraging Your Position

Leveraging - as the word suggests implies using a lever- a simple device like crow bar where with little effort you can shift a boulder. Leveraging in stock market parlance implies using small amount of money and taking bigger positions ie., several times more and hence the gains when the stock price rises is also several times more than it would have normally been.

the flip side of leveraging, however is that the losses when they happen are also multiplied by the same factor - a fact that is often disregarded despite knowing the risks. It is therefore very important from the investment point of view that you manage your money well. Weigh the pros and cons and trade well.

Friday, February 15, 2008

Support and Resistance Levels

In India if you listen to Investment news or view TV Channels like CNBC TV18 or NDTV Profit, You will often hear discussions on support and resistance levels.
How do these support and resistance level come into play ? How are they formed ?
These are price levels at which prices have stabilized in the past and is known as support and when it fails to cross a point and comes back it is the resistance point. Since everyone is watching these points and act in conjunction these points are worth giving a thought and taking your positions of sell and buy. So keep a note of these points and trade well.

Intra Day, Daily,Weekly Trading Calls

Trading calls as different from investment calls with longer time horizon need a different type of handling.
  1. Intraday Trading Calls require not only continuous monitoring but also a good trading platform such as ODIN provided by 5paisa.com (India infoline) or Religare Securities. Web based trading platforms or software though easy to operate by small investors who feel safe and find it easy such as icicidirect.com etc; is not suitable for intra day-you may take daily or weekly calls on these type.
  2. Daily trading require carrying over of positions to the next day and carry the inherent risk of overnight news.
  3. Weekly positions require a different strategy- however in technical analysis you should ALWAYS KEEP THE CHART OF ONE STEP HIGHER IN MIND---IT KEEPS YOU SAFE. Much of that later-trade well , trade safe.

Thursday, February 14, 2008

To Invest or Trade in Shares?

Invest or Trade? At the outset the words and meaning sound similar as it may imply the same . However if one has a closer look , there is a suttle difference . The difference primarily comes from the time horizon or the perspective of the investor or the share trader. An investor has a longer time perspective with respect to the sale and purchase of his shares while a share trader has a very short time perspective. In india with the present investment scenario , most of the share traders have a short time span of trading that is primarily restricted to two to three months. Investments above one year are considered as long term and hence the word Invest. So decide on your time perspective and be a Happy Investor or Share Trader-Depends on What you are comfortable with.

Technical Analysis -When to Buy/SELL

DECIDING WHEN TO PULL THE TRIGGER IS ONE OF THE MOST IMPORTANT THING IN INVESTING. . It is when you sell or buy that makes you the money.Technical analysis is a science or method of reading graphs and interpreting it , hence it is also an art. This technique is not foolproof but gives you insight into what is happening in the market. It warns you of impending dangers and tells you when it is safe to invest. Though not 100% foolproof it is a good bet, so let us make our selves wiser and TRADE BETTER.

Wednesday, February 13, 2008

Earnings or Sentiments?

Earnings ? These refer to the companys profit in lay man sense and are measured or recorded over a fixed time interval. If you pick up any invest ment consulting magazine in india or for that matter anywhere you would come across quarterly earnings which compare this quarters earning to previous quarter or to the same quarter of last year. It is just for comparison sake. Of course higher earnings mean higher profit for the shareholders and hence the share price should rise. But - does this happen so? Yes at times and no - it does however gives you the facts about companys health, the share prices may be driven by several other sentiments or global factor,but this helps you in keeping the profitable shares and warns you about the impending danger- So watch out and be safe !

Tuesday, February 12, 2008

Fundamental Analysis- The basic Issue

If you read any investment consulting magazine in india you would often come across the phrase " valuations" or you might have heard udyan mukherjee on cnbc tv referring to it. What does one mean when it says that the valuations are not cheap--in simple words it would mean that purchasing the companys share at present market price is not a good bargain considering what the companys profit is or what it is "Earning". It is this earning which when divided by the number of shareholders gives us the EPS or the Earning per Share. Obviously a company which is earning more per share would benefit the share holder more, as they are likely to be rewarded by greater dividends and higher share price in the market.
The market price of the share when divided by the EPS or the Earning per share gives us the important ratio for comparison known as the PE ratio or P/E or Price to Earning Ratio. It is this ratio that determines the valuation of the company as compared to its peers in the particular industry group. A higher would therefore mean that its valuation is expensive. Thanks for now we shall touch some other fundamental issues before we start to come on technical analysis which decides when to buy or sell.

What to buy and When to buy

Which share or stock you should invest in ? Is the company sound ? Is there any increase in the net profit as compared to the previous quarter or the previous year ? --All these questions are answered by the study or analysis that is known as Fundamental Analysis----However have the prices of the share already gone up ? Is this the right time to buy or sell? These questions are answered by the study known as technical analysis.

In India most people trade on instincts or the gut feeling or based on the so called tips or insider information. It is however necessary to understand that a little understanding of both these aspect can save a lot of heartache and holes in your pocket.

Monday, February 11, 2008

Invest-Consulting-India-About

Hi ! Friends,
Invest Consulting India is my endeavour to share whatever little knowledge I have gained over the past 15 years by trading in Indian Stock Markets. It is very difficult to find sound advice in share market as the un-certainity looms large and the reason for major gains as well as losses.

When you start investing you need someone to help you out in understanding what stocks or shares are and what do bond yeilds mean,How to start your share trading ,or invest in shares as they say (I shall differentiate that later). With the electronic trading these days opening an account is simple some of the trading sites are icicidirect.com, 5paisa .com, hdfcsecurities .com,motilaloswal, india bulls,karvy etc., Personally I would recommend iciicdirect.com for beginners to use because of its simplicity and webbased trading and the facility of automatic transactions with the bank which makes it hassle free. However for fast trading and those who trade frequently intrday , a ODIN terminal by 5 paisa gives you the edge.

So if you are planning to invest in stocks or shares in india there are many consulting sites but you have to decide for your self over the period of time after testing them as to what suits your temperament.
I shall try to give the beginners a feel of fundamental analysis and thereafter technical analysis as well incorporate newsletter and recommendations which some of my friends have found useful- . Wish you good luck and good trading. keep a watchout on the reliance power ipo-a good buy at the reduced rates for investment purposes.