Find out your IQ - Investment Quotient
What is stock market, is it speculation den or place to invest and create wealth? Answer to this lies in how we deal with it. If we consider stock market as place to make fast/quick money, it is speculation den. When equities rise most of us feel that to make money we should follow “high risk, high return” strategy. In reality we are following “high return, high risk” strategy. If we push our mind we will find subtle but important difference.
Does high-risk mean high return?
If we are feeling that by taking high risk we will “necessarily” get high return, we are kidding ourselves. Word risk means probability of loosing money. High risk means high probability of loosing money. Therefore if you are willing to accept high probability of loosing money, you ‘may’ get high returns. In long run – over a period of 7/9 years – equity markets are place to get high return with low risk. On the other hand any kind of speculation is high risk, low (no) return game.
Are you a speculator?
Another litmus test to find out whether we are considering stock market as speculation den or place to create wealth is the way we get anxious about our investments. If our investment horizon is more than 7/9 years away, we will not panic even if equity market falls for 7 months. On the other hand if we are speculating, 7 bad days/weeks will give us anxieties. If 7 days/weeks fall give us anxiety, we are in speculation mode.
Lastly, if we start asking anyone who even remotely uses letter “s” of stock market, his/her views on near term movement of equity market, we are in speculating mode. We want to inquire about the near term movement because – irrespective of what we say - we have purchased equity for short term. This is giving anxiety and we want someone – whom we want to consider as an expert – give us assurance. The way no one can predict the outcome of speculation, in near term no one can predict movement of equities.
Reason to discuss above behavior is because as human beings, we are intelligent breed and we do not allow ourselves to admit we are speculators. Therefore it is important to consider above and verify whether we are considering stock market speculation den or place to create wealth.
How to earn high returns?
Rome was not built in a day. No matter how hard we try, we will not be able to create wealth quickly. It will take decades before “stable” wealth is created. Invest in equities if your financial goals are more than 7/9 years away. You may either invest directly into equity markets, if you have the skill and time. Alternatively consider equity mutual funds. In last couple of years we have got equity mutual funds with varied investment philosophies e.g. index funds, large cap funds, mid-small cap funds and contrarian funds. Soon we will have global equity funds. Mutual funds allow ease of operation, diversification, professional approach etc. You can invest in these funds either lump sum or you may also consider investing in a systematic way over a period of time.
Monday, July 16, 2007
What is Mutual Fund?
What is Mutual Fund?
A mutual fund is a pool of investments managed by professional money managers. When you invest in a mutual fund, you're actually pooling your money with other people who have similar investment goals.
What do Mutual Funds do with the money that they collect from us?
An expert called a Fund Manager invests that money on behalf of the whole group. He invests this pool of investments in securities, ranging from shares to debentures, or a mixture of Equity and Debt, depending on the objective of the scheme.Mutual Funds manage money collected from individuals/corporate investors based on certain objectives and invest the same in securities (shares, bonds, debentures and call money). Investments are spread over a wide section of industries and sectors to reduce risk.
Units are issued to the investor, based on the prevailing Net Asset Value (NAV) and the amount invested.How is investing in mutual fund different from depositing money in a fixed deposit?When you deposit money with the bank in its fixed deposit, it promises to pay you a certain rate of interest for a certain specified period of time.
On the date of maturity, the bank is supposed to return the principal amount and interest to you. However, in the case of a mutual fund, the money you invest, is in turn invested by the fund manager, on your behalf, as per the investment objectives specified for the scheme. The profit, if any, less expenses, is reflected in the Net Asset Value (NAV) or distrubuted as income to you.Why should I choose to invest in a Mutual Fund?If you are someone who does not have the time and expertise to analyse and invest in stocks and bonds, mutual funds offer a viable investment alternative.
This is because - Mutual funds diversify the risk by investing in a basket of assets (equity, debt, etc) rather than putting all eggs in one basket. You will have a team of professional fund-managers with in depth research inputs from investment analysts, who will manage your investment. As an individual you may not have the access to critical information for making investments, being large institutions mutual funds have critical information on markets.
The idea behind a mutual fund is simple: Many people pool their money in a fund, which invests in various securities. Each investor shares proportionately in the fund's investment returns -- the income (dividends or interest) paid on the securities and any capital gains or losses caused by sales of securities the fund holds.Every mutual fund has a manager, also called an investment adviser, who directs the fund's investments according to the fund's objective, such as long-term growth, high current income, or stability of principal. Depending on its objective, a fund may invest in stocks, bonds, cash investments, or a combination of these financial assets.
A mutual fund is a pool of investments managed by professional money managers. When you invest in a mutual fund, you're actually pooling your money with other people who have similar investment goals.
What do Mutual Funds do with the money that they collect from us?
An expert called a Fund Manager invests that money on behalf of the whole group. He invests this pool of investments in securities, ranging from shares to debentures, or a mixture of Equity and Debt, depending on the objective of the scheme.Mutual Funds manage money collected from individuals/corporate investors based on certain objectives and invest the same in securities (shares, bonds, debentures and call money). Investments are spread over a wide section of industries and sectors to reduce risk.
Units are issued to the investor, based on the prevailing Net Asset Value (NAV) and the amount invested.How is investing in mutual fund different from depositing money in a fixed deposit?When you deposit money with the bank in its fixed deposit, it promises to pay you a certain rate of interest for a certain specified period of time.
On the date of maturity, the bank is supposed to return the principal amount and interest to you. However, in the case of a mutual fund, the money you invest, is in turn invested by the fund manager, on your behalf, as per the investment objectives specified for the scheme. The profit, if any, less expenses, is reflected in the Net Asset Value (NAV) or distrubuted as income to you.Why should I choose to invest in a Mutual Fund?If you are someone who does not have the time and expertise to analyse and invest in stocks and bonds, mutual funds offer a viable investment alternative.
This is because - Mutual funds diversify the risk by investing in a basket of assets (equity, debt, etc) rather than putting all eggs in one basket. You will have a team of professional fund-managers with in depth research inputs from investment analysts, who will manage your investment. As an individual you may not have the access to critical information for making investments, being large institutions mutual funds have critical information on markets.
The idea behind a mutual fund is simple: Many people pool their money in a fund, which invests in various securities. Each investor shares proportionately in the fund's investment returns -- the income (dividends or interest) paid on the securities and any capital gains or losses caused by sales of securities the fund holds.Every mutual fund has a manager, also called an investment adviser, who directs the fund's investments according to the fund's objective, such as long-term growth, high current income, or stability of principal. Depending on its objective, a fund may invest in stocks, bonds, cash investments, or a combination of these financial assets.
What Is A Stock Market
When investors think of the stock market, they may imagine a specific place - such as a stock exchange.
In fact, the stock market is the abstract idea of stock trading and stock exchange. All selling of stocks - at stock exchanges and in other ways - affects the market overall.
This article givers details on:What is the significance of stock market?On what basis prices are determined for stocks?How a full service financial advisor can help you?When investors think of the stock market, they may imagine a specific place - such as a stock exchange. In fact, the stock market is the abstract idea of stock trading and stock exchange.
All selling of stocks - at stock exchanges and in other ways - affects the market overall. Following stock market information in the news can help you make the right decisions about stock market investing.
Luckily, today you can get stock market data from a wide variety of sources. Knowing the stock market price of your investments, being able to answer the question what is the stock market and watching the market's ups and downs can help you become a stronger investor.
Why Stock Market Is Needed
The stock market is simply a term for the overall market or industry that is concerned with buying and selling company stock, both private and publicly traded securities. The stock market does many things. It helps to set prices of stocks. The more a stock is traded on the market and the more in demand the stock, the higher is its value. Having a stock market that is interconnected with stock markets around the world helps traders and investors to see how specific stocks are doing.Of course, the stock market is mainly present to create money. Through the market, investors - both companies and individuals - can buy stocks, which effectively make them own a small part of a company. If the company prospers, investors are rewarded with dividends and profits. Companies, by becoming public and offering stocks to the public, can raise money and improve their profile through business expansions which can help them make great profit.
Who Can Invest In the Market?
Stockbrokers and individuals can invest in the market. Individual investors invest a lot although many businesses - such as financial institutions - invest more in the stock market each day than individuals
.
How to Invest In Stock Market
Most financial experts recommend that investors must consult a full-service financial advisor initially. This type of advisor can provide advice and can help ensure that an investor's money gets a good return. More experienced investors may be interested in one of the online investing options. These allow almost anyone with a fast internet connection and a subscription to an investment site to buy and sell stocks when they wish.
Learn About Stock Market
Before you begin to invest, you will want to learn about the stock market and get the latest stock market information. This will ensure that you understand how this type of investment works. Next, you will want to decide what your long-term goals are. How much money do you want to make and by when? Having goals will make it easier for you to make investment decisions. Finally, you will want to put aside money for investing and get this money to a broker or advisor regularly so that it can be invested for you. With these simple steps, you can start investing and seeing profits quite quickly.
How Are Stock Prices Determined?
When a company first offers stock, the way it determines price is quite complex. Basically, a financial expert prices the stock by expected demand, expected profitability of the stock, overall market conditions, and other market factors. However once the stock is being traded, it is investors themselves who determine price of stock. If a stock starts to sell a lot, its price starts to climb because there is a greater demand (and usually fewer investors willing to sell). When everyone starts selling a specific stock -its price drops due to panic or some other reason. Since more people are selling the stock than buying.
What Is A Stock Market Index?
Companies such as the S&P, Euronext, and the FTSE are called stock market indices and they capture the movement of stock prices. Usually, these indices are weighted by the total value of a company's floating capital. Obviously, experts at the indices must constantly be including stock market changes as well as considering external market factors to determine how a company is doing in business.Getting the latest stock market information is a key priority for almost all investors. If you wish to try stock market investing, it is important to understand and study the market in order to make the right investment decisions. This can help you work with an advisor - or even alone, if you wish - to make the most profits possible.
In fact, the stock market is the abstract idea of stock trading and stock exchange. All selling of stocks - at stock exchanges and in other ways - affects the market overall.
This article givers details on:What is the significance of stock market?On what basis prices are determined for stocks?How a full service financial advisor can help you?When investors think of the stock market, they may imagine a specific place - such as a stock exchange. In fact, the stock market is the abstract idea of stock trading and stock exchange.
All selling of stocks - at stock exchanges and in other ways - affects the market overall. Following stock market information in the news can help you make the right decisions about stock market investing.
Luckily, today you can get stock market data from a wide variety of sources. Knowing the stock market price of your investments, being able to answer the question what is the stock market and watching the market's ups and downs can help you become a stronger investor.
Why Stock Market Is Needed
The stock market is simply a term for the overall market or industry that is concerned with buying and selling company stock, both private and publicly traded securities. The stock market does many things. It helps to set prices of stocks. The more a stock is traded on the market and the more in demand the stock, the higher is its value. Having a stock market that is interconnected with stock markets around the world helps traders and investors to see how specific stocks are doing.Of course, the stock market is mainly present to create money. Through the market, investors - both companies and individuals - can buy stocks, which effectively make them own a small part of a company. If the company prospers, investors are rewarded with dividends and profits. Companies, by becoming public and offering stocks to the public, can raise money and improve their profile through business expansions which can help them make great profit.
Who Can Invest In the Market?
Stockbrokers and individuals can invest in the market. Individual investors invest a lot although many businesses - such as financial institutions - invest more in the stock market each day than individuals
.
How to Invest In Stock Market
Most financial experts recommend that investors must consult a full-service financial advisor initially. This type of advisor can provide advice and can help ensure that an investor's money gets a good return. More experienced investors may be interested in one of the online investing options. These allow almost anyone with a fast internet connection and a subscription to an investment site to buy and sell stocks when they wish.
Learn About Stock Market
Before you begin to invest, you will want to learn about the stock market and get the latest stock market information. This will ensure that you understand how this type of investment works. Next, you will want to decide what your long-term goals are. How much money do you want to make and by when? Having goals will make it easier for you to make investment decisions. Finally, you will want to put aside money for investing and get this money to a broker or advisor regularly so that it can be invested for you. With these simple steps, you can start investing and seeing profits quite quickly.
How Are Stock Prices Determined?
When a company first offers stock, the way it determines price is quite complex. Basically, a financial expert prices the stock by expected demand, expected profitability of the stock, overall market conditions, and other market factors. However once the stock is being traded, it is investors themselves who determine price of stock. If a stock starts to sell a lot, its price starts to climb because there is a greater demand (and usually fewer investors willing to sell). When everyone starts selling a specific stock -its price drops due to panic or some other reason. Since more people are selling the stock than buying.
What Is A Stock Market Index?
Companies such as the S&P, Euronext, and the FTSE are called stock market indices and they capture the movement of stock prices. Usually, these indices are weighted by the total value of a company's floating capital. Obviously, experts at the indices must constantly be including stock market changes as well as considering external market factors to determine how a company is doing in business.Getting the latest stock market information is a key priority for almost all investors. If you wish to try stock market investing, it is important to understand and study the market in order to make the right investment decisions. This can help you work with an advisor - or even alone, if you wish - to make the most profits possible.
The 4 WORST Things You Can Do As An Investor
The 4 WORST Things You Can Do As An Investor
By: Joe HarrisNumber one: don't stop reading.
Too many investors see these common failures and simply brush past them, thinking "
How could I possibly fall into the category of the average investor? I'm smarter than all of this; I can't be subject to these kinds ofmistakes..."...WRONG
More investments go sour from these different 'mistakes' than any other obstacle you'll face in your investing career. So please, do yourself a favor and keep reading. And keep an open mind too.
Number two is fear. There are two ends to the spectrum here so you have to find a middle ground. The most common is being afraid of cutting your losses.
Don't stay in simply hoping it will get better, or you'll dig yourself a much deeper hole. What's worse is being afraid to make any mistakes at all. This has kept many of us from jumping into a sound investment.
Just keep in mind that you won't be able to win if you're not even playing the game.The second half of this is not fearing anything. Having that little voice of reason in your head can keep you from throwing away a lot of money.
If this sounds like you, you're cure is risk management. Take the necessary precautions to set explicit limits as to when you get out of any investment, no matter the outcome. Follow the rules you set for yourself to keep your investing safe.
Next on the list: ignorance. I can't believe how eager people are to jump into the system and try to start making money without learning the game. You need to have a passion for learning everything in the market. By studying what you're up against and becoming knowledgeable about what you're doing specifically you'll have a far greater advantage than any other trader.
The big step: figure out what you do and don't know. It's harder than it sounds but by doing so you'll give yourself an honest approach to making yourself better.Finally we come down to an investor's greatest enemy: greed. People are gullible...YOU are gullible.
Too many people get sucked into the "miracle investment" that promises the amazing returns while hiding the major risks. Do your homework. If you take care of your professional ignorance above, greed should never get the best of you.It's your money we're talking about here.
You should be able to look at each investment objectively to ensure your financial safety. Armed with these easy techniques you'll be able to become a major player in the world of investing in no time
By: Joe HarrisNumber one: don't stop reading.
Too many investors see these common failures and simply brush past them, thinking "
How could I possibly fall into the category of the average investor? I'm smarter than all of this; I can't be subject to these kinds ofmistakes..."...WRONG
More investments go sour from these different 'mistakes' than any other obstacle you'll face in your investing career. So please, do yourself a favor and keep reading. And keep an open mind too.
Number two is fear. There are two ends to the spectrum here so you have to find a middle ground. The most common is being afraid of cutting your losses.
Don't stay in simply hoping it will get better, or you'll dig yourself a much deeper hole. What's worse is being afraid to make any mistakes at all. This has kept many of us from jumping into a sound investment.
Just keep in mind that you won't be able to win if you're not even playing the game.The second half of this is not fearing anything. Having that little voice of reason in your head can keep you from throwing away a lot of money.
If this sounds like you, you're cure is risk management. Take the necessary precautions to set explicit limits as to when you get out of any investment, no matter the outcome. Follow the rules you set for yourself to keep your investing safe.
Next on the list: ignorance. I can't believe how eager people are to jump into the system and try to start making money without learning the game. You need to have a passion for learning everything in the market. By studying what you're up against and becoming knowledgeable about what you're doing specifically you'll have a far greater advantage than any other trader.
The big step: figure out what you do and don't know. It's harder than it sounds but by doing so you'll give yourself an honest approach to making yourself better.Finally we come down to an investor's greatest enemy: greed. People are gullible...YOU are gullible.
Too many people get sucked into the "miracle investment" that promises the amazing returns while hiding the major risks. Do your homework. If you take care of your professional ignorance above, greed should never get the best of you.It's your money we're talking about here.
You should be able to look at each investment objectively to ensure your financial safety. Armed with these easy techniques you'll be able to become a major player in the world of investing in no time
How to research a stock ?
How to research a stock ?When considering the purchase of a stock, investors should find answers to some key questions.
Fundamentals: What is the company's business, is it financially sound -- and is it growing?
Price History: How much have other investors been willing to pay for the stock in the past?
Price Target: How much are investors likely to pay for the stock in the future?
Catalysts: What catalysts will change investors' perceptions of the stock in the future?
Comparison: How does the stock compare to others in its industry?
Recent Developments: Check out what are the recent developments in the company
HAPPY INVESTING. ALL THE BEST
Fundamentals: What is the company's business, is it financially sound -- and is it growing?
Price History: How much have other investors been willing to pay for the stock in the past?
Price Target: How much are investors likely to pay for the stock in the future?
Catalysts: What catalysts will change investors' perceptions of the stock in the future?
Comparison: How does the stock compare to others in its industry?
Recent Developments: Check out what are the recent developments in the company
HAPPY INVESTING. ALL THE BEST
inter view what they dont like
In an interview even small details if unnoticed may go against you. A small mistake can make all the difference and can be the only cause for rejection. What are the main factors that can go wrong in an interview? What are the main causes for rejection even after the technical or line interview was a complete successs. What can go wrong in an HR interview? Here are some points that you need to remember when attending any interview.
Be brief. Sometimes lack of knowledge or nervousnes boths can make a candidate talk endlessly , mostly pointless drivel.
Be spontaneous,. do not sound as if you have rehearsed and memorised every word that you are saying.
Displaying a lack of social skills. In today’s business scenario it is mostly team work that matters-it is a peoples business. Be careful to cultivate your social skills .Great resume but no personality is a frequent reality in an interview.
In any interview remember the 4Es': Energy / Energise / Edge and Execution .Enthusiasam in the key to all the 4 Es.
ENERGY: Mental and PhysicalENERGISE: Take charge and involve peopleEDGE: Intensity / Ability to take crucial decisions /Fairness
EXECUTION:- Abilty to implement / meet deadlines
Confidence is good but arrogance is not and it is very easy to get these two mixed up in an interview.
Lying on your resume or in an interview is a sure way to not get selected.
Even small lies like your hobbies o r how you spend your leisure time can quickly be found out when probed deeper.
Be brief. Sometimes lack of knowledge or nervousnes boths can make a candidate talk endlessly , mostly pointless drivel.
Be spontaneous,. do not sound as if you have rehearsed and memorised every word that you are saying.
Displaying a lack of social skills. In today’s business scenario it is mostly team work that matters-it is a peoples business. Be careful to cultivate your social skills .Great resume but no personality is a frequent reality in an interview.
In any interview remember the 4Es': Energy / Energise / Edge and Execution .Enthusiasam in the key to all the 4 Es.
ENERGY: Mental and PhysicalENERGISE: Take charge and involve peopleEDGE: Intensity / Ability to take crucial decisions /Fairness
EXECUTION:- Abilty to implement / meet deadlines
Confidence is good but arrogance is not and it is very easy to get these two mixed up in an interview.
Lying on your resume or in an interview is a sure way to not get selected.
Even small lies like your hobbies o r how you spend your leisure time can quickly be found out when probed deeper.
interview tips
Interviewers want to see -demonstrated team handling, team leading skills, good communication & interpersonal skills, resilience and tenacity, confidence, planning and team work. It is important for a person to strike a "win-win-situation in the interview process.
Today, companies need people who can think out-of-the-box. A team builder and motivator is what everybody is looking for. He has to be a very good communicator and very sensitive, who understands social forces working within the office and outside. Sometimes communication skills matter more than technical skills.
An interview is a two way process. Be prepared to ask questions also.
Who are the company's main competitors?
How would my success be measured in this role?
What skills and attributes does your most successful employees share?
Ask about company's future plan / expansion / growth and how would these plan impact your role
Do not be too tied up during the interview process trying to win over brains on the other end with perfectly crafted answers.
Your resume should speak for itself in terms of credentials.
Of course, you can use the interview to elaborate or fill in the blanks on your expertise.
It is more important to show your potential boss, who you really are. That as a person, you care about your work and your team passionately. That you laugh, worry and listen, that you have outside interests, maturity to handle stressful situation and that you can connect with others emotionally. In any interview, your best selling point can be your authenticity.
The following points are crucial to successful interviews:
CV-Read your CV thoroughly.
Be prepared to talks about it in details.
Dress code -
Dress smartly and professionally. Dress for the occasion. If you are attending an interview for a Sr. position -you'd want to show some power and authority. Avoid shiny or silky material. Ladies-are there too much accessories? Remember ,less is more.
Body Language -
While talking or listening try not to show excessive emotions. Be assertive but never aggressive, make regular eye contact, be confident and alert. Communicate your seriousness and interest all the time. Appear firm and confident and listen actively. Make sure you reach on time.
Research-
Before attending the interview do some basic research about the company. Substantial information can be gathered from the company's website. Annual reports are also available on the net -try icicidirect.com or similar portals. Up-to -date information is available in the business sections of the daily newspaper/magazine
.
Develop a back up plan: It is important to assess one own alternatives in an unbiased manner. Always be prepared for surprises.
Job Description-
Go through the job description thoroughly. Think how you fit the role, demonstrate that you have the key skills and experience necessary for the role .If you have gaps in your employment or education history make sure you can give positive answers. Also enter the interview with all supporting facts and figures that supports your candidature
Today, companies need people who can think out-of-the-box. A team builder and motivator is what everybody is looking for. He has to be a very good communicator and very sensitive, who understands social forces working within the office and outside. Sometimes communication skills matter more than technical skills.
An interview is a two way process. Be prepared to ask questions also.
Who are the company's main competitors?
How would my success be measured in this role?
What skills and attributes does your most successful employees share?
Ask about company's future plan / expansion / growth and how would these plan impact your role
Do not be too tied up during the interview process trying to win over brains on the other end with perfectly crafted answers.
Your resume should speak for itself in terms of credentials.
Of course, you can use the interview to elaborate or fill in the blanks on your expertise.
It is more important to show your potential boss, who you really are. That as a person, you care about your work and your team passionately. That you laugh, worry and listen, that you have outside interests, maturity to handle stressful situation and that you can connect with others emotionally. In any interview, your best selling point can be your authenticity.
The following points are crucial to successful interviews:
CV-Read your CV thoroughly.
Be prepared to talks about it in details.
Dress code -
Dress smartly and professionally. Dress for the occasion. If you are attending an interview for a Sr. position -you'd want to show some power and authority. Avoid shiny or silky material. Ladies-are there too much accessories? Remember ,less is more.
Body Language -
While talking or listening try not to show excessive emotions. Be assertive but never aggressive, make regular eye contact, be confident and alert. Communicate your seriousness and interest all the time. Appear firm and confident and listen actively. Make sure you reach on time.
Research-
Before attending the interview do some basic research about the company. Substantial information can be gathered from the company's website. Annual reports are also available on the net -try icicidirect.com or similar portals. Up-to -date information is available in the business sections of the daily newspaper/magazine
.
Develop a back up plan: It is important to assess one own alternatives in an unbiased manner. Always be prepared for surprises.
Job Description-
Go through the job description thoroughly. Think how you fit the role, demonstrate that you have the key skills and experience necessary for the role .If you have gaps in your employment or education history make sure you can give positive answers. Also enter the interview with all supporting facts and figures that supports your candidature
India's 25 best employers
India's 25 best employers
Aditya Birla Group,
Satyam Computer Services and Marriott Hotels India have been ranked as the top three employers in India.
The Best Employers in Asia 2007 study, conducted by Hewitt Associates and presented in partnership with
The Wall Street Journal Asia, provides a definitive benchmark against which you can measure how effective an organisation is in providing a workplace that engages the intellectual and emotional commitment of its employees.
The best 25 employers in India include companies from, both, the new as also the old economy sectors.The others who make up the top 25 include: Eureka Forbes Limited,, Cisco Systems (India) Private Limited,, Godrej Consumer Products Ltd, Agilent Technologies Ltd, Standard Chartered Scope International - India, Tata Consultancy Services Ltd
, Kotak Mahindra Bank Ltd,Wipro BPO, Covansys (India) Private Limited, Ajuba Solutions India Private Limited,
Pantaloon Retail India Limited, Text 100 India Pvt. Ltd,
Domino's Pizza India Limited, Ford India Becton Dickinson India Pvt. Ltd, Hardcastle Restaurants Pvt. Ltd, HCL Technologies Ltd,- BPO Services Dr. Reddy's Laboratories Limited, Johnson and Johnson Medical, India GlaxoSmithKline Consumer Healthcare Ltd, HSBC, and Monsanto India Limited.India's 25 best employers1
Aditya Birla Group
2 Satyam Computer Services Limited
3 Marriott Hotels India
4 Eureka Forbes Limited
5 Cisco Systems (India) Private Limited
6 Godrej Consumer Products Ltd. 7 Agilent Technologies Ltd.
8 Standard Chartered Scope International - India
9 Tata Consultancy Services Ltd.
10 Kotak Mahindra Bank Ltd.
11 Wipro BPO
12 Covansys (India) Private Limited
13 Ajuba Solutions India Private Limited
14 Pantaloon Retail India Limited
15 Text 100 India Pvt. Ltd.
16 Domino's Pizza India Limited
17 Ford India
18 Becton Dickinson India Pvt. Ltd.
19 Hardcastle Restaurants Pvt. Ltd.
20 HCL Technologies Ltd.- BPO Services
21 Dr. Reddy's Laboratories Limited
22 Johnson and Johnson Medical, India
23 GlaxoSmithKline Consumer Healthcare Ltd.
24 HSBC
25 Monsanto India Limited
The study determines what it is that makes organisations great employers, analyses the relationship between the 'best employers' and top performing organizations, and identifies emerging workplace trends for the future.
The Hewitt survey is the largest of its kind in India. The Hewitt survey accounts for the views of over 1,140000 employees and have been represented by over 44,000 employees in 230 companies across industry sectors in India.
The study undertook an analysis of what differentiates organisations when it comes to employee management, and conducted a thorough audit of all related areas, including people policies, recruitment, talent management, learning and development, recognition, opportunities, etc.Best employers represent a wide range of industries.
Despite this, they all have two things in common-they have aligned their practices with the organisation’s strategy and goals specific to their industry needs, and have created an environment that produces a positive employee experience and results.The study also revealed that employee Engagement in India, has gradually increased since Hewitt's first Best Employers study was conducted back in 2001.
This demonstrates that organisations are placing a growing emphasis on creating a more challenging environment for their people.In India, career opportunities are a key driver of employee Engagement, clearly reflecting the ambitions and aspirations of a restless and demanding workforce that is keen to ride the growth wave.
As a result, organisations those are able to manage employees' career aspirations and provide them with opportunities for growth and development will have a more engaged workforce. The study showed that 76% of employees at Best Employers are satisfied with their career opportunities, compared with 64% at The Rest.Smita Anand, head of Hewitt India, commented, "The Best Employers differentiate themselves by making their employees a part of their growth story.
They provide unrivalled opportunities for growth and development irrespective of an employees' background, differentiating only on the basis of performance. As a result, they see stronger business results and stand out as a place where people want to work.
"The Best Employers in Asia study revealed four key benefits to being a Best Employer :
i) A strong competitive advantage over other organizations. Best Employers have a highly engaged workforce that is prepared to go the extra mile for their organization and customers.
ii) Better business results and the ability to grow a sustainable business. This is because Best Employers take a long-term approach to building a sustainable workforce and focus on growing committed and loyal employees who have faith in the leaders of the company.iii) Attracting the best talent and recognition in the marketplace for having a strong employer brand. Best Employers' employees believe their companies are hiring the right people for the right jobs and deliver on their employment promises.iv) Long-term employee relationships, which leads to fewer employees leaving the organization.
Best Employers also have outstanding leaders in place who not only inspire employees, but actively make them feel valued in the workplace.The Best Employers in Asia 2007 study commenced in September 2006 and results were published late last week.
Aditya Birla Group,
Satyam Computer Services and Marriott Hotels India have been ranked as the top three employers in India.
The Best Employers in Asia 2007 study, conducted by Hewitt Associates and presented in partnership with
The Wall Street Journal Asia, provides a definitive benchmark against which you can measure how effective an organisation is in providing a workplace that engages the intellectual and emotional commitment of its employees.
The best 25 employers in India include companies from, both, the new as also the old economy sectors.The others who make up the top 25 include: Eureka Forbes Limited,, Cisco Systems (India) Private Limited,, Godrej Consumer Products Ltd, Agilent Technologies Ltd, Standard Chartered Scope International - India, Tata Consultancy Services Ltd
, Kotak Mahindra Bank Ltd,Wipro BPO, Covansys (India) Private Limited, Ajuba Solutions India Private Limited,
Pantaloon Retail India Limited, Text 100 India Pvt. Ltd,
Domino's Pizza India Limited, Ford India Becton Dickinson India Pvt. Ltd, Hardcastle Restaurants Pvt. Ltd, HCL Technologies Ltd,- BPO Services Dr. Reddy's Laboratories Limited, Johnson and Johnson Medical, India GlaxoSmithKline Consumer Healthcare Ltd, HSBC, and Monsanto India Limited.India's 25 best employers1
Aditya Birla Group
2 Satyam Computer Services Limited
3 Marriott Hotels India
4 Eureka Forbes Limited
5 Cisco Systems (India) Private Limited
6 Godrej Consumer Products Ltd. 7 Agilent Technologies Ltd.
8 Standard Chartered Scope International - India
9 Tata Consultancy Services Ltd.
10 Kotak Mahindra Bank Ltd.
11 Wipro BPO
12 Covansys (India) Private Limited
13 Ajuba Solutions India Private Limited
14 Pantaloon Retail India Limited
15 Text 100 India Pvt. Ltd.
16 Domino's Pizza India Limited
17 Ford India
18 Becton Dickinson India Pvt. Ltd.
19 Hardcastle Restaurants Pvt. Ltd.
20 HCL Technologies Ltd.- BPO Services
21 Dr. Reddy's Laboratories Limited
22 Johnson and Johnson Medical, India
23 GlaxoSmithKline Consumer Healthcare Ltd.
24 HSBC
25 Monsanto India Limited
The study determines what it is that makes organisations great employers, analyses the relationship between the 'best employers' and top performing organizations, and identifies emerging workplace trends for the future.
The Hewitt survey is the largest of its kind in India. The Hewitt survey accounts for the views of over 1,140000 employees and have been represented by over 44,000 employees in 230 companies across industry sectors in India.
The study undertook an analysis of what differentiates organisations when it comes to employee management, and conducted a thorough audit of all related areas, including people policies, recruitment, talent management, learning and development, recognition, opportunities, etc.Best employers represent a wide range of industries.
Despite this, they all have two things in common-they have aligned their practices with the organisation’s strategy and goals specific to their industry needs, and have created an environment that produces a positive employee experience and results.The study also revealed that employee Engagement in India, has gradually increased since Hewitt's first Best Employers study was conducted back in 2001.
This demonstrates that organisations are placing a growing emphasis on creating a more challenging environment for their people.In India, career opportunities are a key driver of employee Engagement, clearly reflecting the ambitions and aspirations of a restless and demanding workforce that is keen to ride the growth wave.
As a result, organisations those are able to manage employees' career aspirations and provide them with opportunities for growth and development will have a more engaged workforce. The study showed that 76% of employees at Best Employers are satisfied with their career opportunities, compared with 64% at The Rest.Smita Anand, head of Hewitt India, commented, "The Best Employers differentiate themselves by making their employees a part of their growth story.
They provide unrivalled opportunities for growth and development irrespective of an employees' background, differentiating only on the basis of performance. As a result, they see stronger business results and stand out as a place where people want to work.
"The Best Employers in Asia study revealed four key benefits to being a Best Employer :
i) A strong competitive advantage over other organizations. Best Employers have a highly engaged workforce that is prepared to go the extra mile for their organization and customers.
ii) Better business results and the ability to grow a sustainable business. This is because Best Employers take a long-term approach to building a sustainable workforce and focus on growing committed and loyal employees who have faith in the leaders of the company.iii) Attracting the best talent and recognition in the marketplace for having a strong employer brand. Best Employers' employees believe their companies are hiring the right people for the right jobs and deliver on their employment promises.iv) Long-term employee relationships, which leads to fewer employees leaving the organization.
Best Employers also have outstanding leaders in place who not only inspire employees, but actively make them feel valued in the workplace.The Best Employers in Asia 2007 study commenced in September 2006 and results were published late last week.
BASIC STOCK HISTORY--MUST READ FOR NEW TO STOCKS
STOCKS BASIC
Over the past few years the stock market has made substantial declines. Some short term investors have lost a good bit of money. Many new stock market investors look at this and become very skeptical about getting in now.If you are considering investing in the stock market it is very important that you understand how the markets work.
All of the financial and market data that the newcomer is bombarded with can leave them confused and overwhelmed.The stock market is an everyday term used to describe a place where stock in companies is bought and sold. Companies issues stock to finance new equipment, buy other companies, expand their business, introduce new products and services, etc. The investors who buy this stock now own a share of the company.
If the company does well the price of their stock increases. If the company does not do well the stock price decreases. If the price that you sell your stock for is more than you paid for it, you have made money.When you buy stock in a company you share in the profits and losses of the company until you sell your stock or the company goes out of business. Studies have shown that long term stock ownership has been one of the best investment strategies for most people.People buy stocks on a tip from a friend, a phone call from a broker, or a recommendation from a TV analyst.
They buy during a strong market. When the market later begins to decline they panic and sell for a loss. This is the typical horror story we hear from people who have no investment strategy.Before committing your hard earned money to the stock market it will behoove you to consider the risks and benefits of doing so. You must have an investment strategy. This strategy will define what and when to buy and when you will sell it.
History of the Stock Market
Over two hundred years ago private banks began to sell stock to raise money to expand. This was a new way to invest and a way for the rich to get richer. In 1792 twenty four large merchants agreed to form a market known as the New York Stock Exchange (NYSE). They agreed to meet daily on Wall Street and buy and sell stocks.By the mid-1800s the United States was experiencing rapid growth. Companies began to sell stock to raise money for the expansion necessary to meet the growing demand for their products and services. The people who bought this stock became part owners of the company and shared in the profits or loss of the company.A new form of investing began to emerge when investors realized that they could sell their stock to others. This is where speculation began to influence an investor's decision to buy or sell and led the way to large fluctuations in stock prices.Originally investing in the stock market was confined to the very wealthy. Now stock ownership has found it's way to all sectors of our society.
What is a Stock?
A stock certificate is a piece of paper declaring that you own a piece of the company. Companies sell stock to finance expansion, hire people, advertise, etc. In general, the sale of stock help companies grow. The people who buy the stock share in the profits or losses of the company.Trading of stock is generally driven by short term speculation about the company operations, products, services, etc. It is this speculation that influences an investor's decision to buy or sell and what prices are attractive.The company raises money through the primary market. This is the Initial Public Offering (IPO).
Thereafter the stock is traded in the secondary market (what we call the stock market) when individual investors or traders buy and sell the shares to each other. The company is not involved in any profit or loss from this secondary market.Technology and the Internet have made the stock market available to the mainstream public. Computers have made investing in the stock market very easy.
Market and company news is available almost anywhere in the world. The Internet has brought a vast new group of investors into the stock market and this group continues to grow each year.Bull Market - Bear MarketAnyone who has been following the stock market or watching TV news is probably familiar with the terms Bull Market and Bear Market. What do they mean?A bull market is defined by steadily rising prices. The economy is thriving and companies are generally making a profit.
Most investors feel that this trend will continue for some time. By contrast a bear market is one where prices are dropping. The economy is probably in a decline and many companies are experiencing difficulties. Now the investors are pessimistic about the future profitability of the stock market. Since investors' attitudes tend to drive their willingness to buy or sell these trends normally perpetuate themselves until significant outside events intervene to cause a reversal of opinion.In a bull market the investor hopes to buy early and hold the stock until it has reached it's high. Obviously predicting the low and high is impossible. Since most investors are "bullish" they make more money in the rising bull market. They are willing to invest more money as the stock is rising and realize more profit.Investing in a bear market incurs the greatest possibility of losses because the trend in downward and there is no end in sight.
An investment strategy in this case might be short selling. Short selling is selling a stock that you don't own. You can make arrangements with your broker to do this. You will in effect be borrowing shares from your broker to sell in the hope of buying them back later when the price has dropped. You will profit from the difference in the two prices.
Another strategy for a bear market would be buying defensive stocks. These are stocks like utility companies that are not affected by the market downturn or companies that sell their products during all economic conditions.
BrokersTraditionally investors bought and sold stock through large brokerage houses. They made a phone call to their broker who relayed their order to the exchange floor. These brokers also offered their services as stock advisors to people who knew very little about the market. These people relied on their broker to guide them and paid a hefty price in commissions and fees as a result. The advent of the Internet has led to a new class of brokerage houses. These firms provide on-line accounts where you may log in and buy and sell stocks from anywhere you can get an Internet connection.
They usually don't offer any market advice and only provide order execution. The Internet investor can find some good deals as the members of this new breed of electronic brokerage houses compete for your business!
Blue Chip StocksLarge well established firms who have demonstrated good profitability and growth, dividend payout, and quality products and services are called blue chip stocks. They are usually the leaders of their industry, have been around for a long time, and are considered to be among the safest investments. Blue chip stocks are included in the Dow Jones Industrial Average, an index composed of thirty companies who are leaders in their industry groups. They are very popular among individual and institutional investors.
Blue chip stocks attract investors who are interested in consistent dividends and growth as well as stability. They are rarely subject to the price volatility of other stocks and their share prices will normally be higher than other categories of stock. The downside of blue chips is that due to their stability they won't appreciate as rapidly as compared to smaller up-and-coming stocks.
Penny Stocks
Penny Stocks are very low priced stocks and are very risky. They are usually issued by companies without a long term record of stability or profitability.The appeal of penny stock is their low price. Though the odds are against it, if the company can get into a growth trend the share price can jump very rapidly. They are usually favored by the speculative investor.Income StocksIncome Stocks are stock that normally pay higher than average dividends. They are well established companies like utilities or telephone companies. Income stocks are popular with the investor who wants to own the stock for a long time and collect the dividends and who is not so interested in a gain in share price.Value StocksSometimes a company's earnings and growth potential indicate that it's share price should be higher than it is currently trading at.
These stock are said to be Value Stocks. For the most part, the market and investors have ignored them. The investor who buys a value stock hopes that the market will soon realize what a bargain it is and begin to buy. This would drive up the share price.Defensive StocksDefensive Stocks are issued by companies in industries that have demonstrated good performance in bad markets. Food and utility companies are defensive stocks.Market TimingOne of the most well known market quotes is: "Buy Low - Sell High". To be consistently successful in the stock market one needs strategy, discipline, knowledge, and tools.
We need to understand our strategy and stick with it. This will prevent us from being distracted by emotion, panic, or greed.One of the most prominent investing strategies used by "investment pros" is Market Timing. This is the attempt to predict future prices from past market performance. Forecasting stock prices has been a problem for as long as people have been trading stocks. The time to buy or sell a stock is based on a number of economic indicators derived from company analysis, stock charts, and various complex mathematical and computer based algorithms.One example of market timing signals are those available from www.stock4today.com.
Risks
There are numerous risks involved in investing in the stock market. Knowing that these risks exist should be one of the things an investor is constantly aware of. The money you invest in the stock market is not guaranteed. For instance, you might buy a stock expecting a certain dividend or rate of share price increase. If the company experiences financial problems it may not live up to your dividend or price growth expectations. If the company goes out of business you will probably lose everything you invested in it.
Due to the uncertainty of the outcome, you bear a certain amount of risk when you purchase a stock.Stocks differ in the amount of risks they present. For instance, Internet stocks have demonstrated themselves to be much more risky than utility stocks.One risk is the stocks reaction to news items about the company. Depending on how the investors interpret the new item, they may be influenced to buy or sell the stock.
If enough of these investors begin to buy or sell at the same time it will cause the price to rise or fall.One effective strategy to cope with risk is diversification. This means spreading out your investments over several stocks in different market sectors. Remember the saying: "Don't put all your eggs in the same basket".As investors we need to find our
"Risk Tolerance".
Risk tolerance is our emotional and financial ability to ride out a decline in the market without panicking and selling at a loss. When we define that point we make sure not to extend our investments beyond it.BenefitsThe same forces that bring risk into investing in the stock market also make possible the large gains many investors enjoy. It's true that the fluctuations in the market make for losses as well as gains but if you have a proven strategy and stick with it over the long term you will be a winner!The Internet has make investing in the stock market a possibility for almost everybody. The wealth of online information, articles, and stock quotes gives the average person the same abilities that were once available to only stock brokers.
No longer does the investor need to contact a broker for this information or to place orders to buy or sell. We now have almost instant access to our accounts and the ability to place on-line orders in seconds. This new freedom has ushered in new masses of hopeful investors. Still this in not a random process of buying and selling stock. We need a strategy for selecting a suitable stock as well as timing to buy and sell in order to make a profit.Day TradingDay Trading is the attempt to buy and sell stock over a very short period of time. The day trader hopes to cash in on the short term fluctuations in a stock's price.
It would not be unusual for the day trader to buy and sell the same stock in a matter of a few minutes or to buy and sell the same stock several times a day.Day traders sit in front of computer monitors all day looking for short term movement in a stock. They then attempt to get in on the movement before it reverses. The real day trader does not hold a stock overnight due to the risk of some event or news item triggering the stock to reverse direction. It takes intense concentration to monitor the minute by minute movement of several stocks.
Day trading involves a great deal of risk because of the uncertainty of the market behavior over the short term. The slightest economic or political news can cause a stock to fluctuate wildly and result in unexpected losses.There are a few people who make respectable gains day trading. The people who probably make the most are the self proclaimed "experts" who sell the books or operate the web sites that cater to the day trader. Because of the profits to be made from sales to people who want to get rich quick, they make it seem as attractive as possible. The truth is that in the long run more people lose than gain by day trading. This does not translate into a very good investment.
Over the past few years the stock market has made substantial declines. Some short term investors have lost a good bit of money. Many new stock market investors look at this and become very skeptical about getting in now.If you are considering investing in the stock market it is very important that you understand how the markets work.
All of the financial and market data that the newcomer is bombarded with can leave them confused and overwhelmed.The stock market is an everyday term used to describe a place where stock in companies is bought and sold. Companies issues stock to finance new equipment, buy other companies, expand their business, introduce new products and services, etc. The investors who buy this stock now own a share of the company.
If the company does well the price of their stock increases. If the company does not do well the stock price decreases. If the price that you sell your stock for is more than you paid for it, you have made money.When you buy stock in a company you share in the profits and losses of the company until you sell your stock or the company goes out of business. Studies have shown that long term stock ownership has been one of the best investment strategies for most people.People buy stocks on a tip from a friend, a phone call from a broker, or a recommendation from a TV analyst.
They buy during a strong market. When the market later begins to decline they panic and sell for a loss. This is the typical horror story we hear from people who have no investment strategy.Before committing your hard earned money to the stock market it will behoove you to consider the risks and benefits of doing so. You must have an investment strategy. This strategy will define what and when to buy and when you will sell it.
History of the Stock Market
Over two hundred years ago private banks began to sell stock to raise money to expand. This was a new way to invest and a way for the rich to get richer. In 1792 twenty four large merchants agreed to form a market known as the New York Stock Exchange (NYSE). They agreed to meet daily on Wall Street and buy and sell stocks.By the mid-1800s the United States was experiencing rapid growth. Companies began to sell stock to raise money for the expansion necessary to meet the growing demand for their products and services. The people who bought this stock became part owners of the company and shared in the profits or loss of the company.A new form of investing began to emerge when investors realized that they could sell their stock to others. This is where speculation began to influence an investor's decision to buy or sell and led the way to large fluctuations in stock prices.Originally investing in the stock market was confined to the very wealthy. Now stock ownership has found it's way to all sectors of our society.
What is a Stock?
A stock certificate is a piece of paper declaring that you own a piece of the company. Companies sell stock to finance expansion, hire people, advertise, etc. In general, the sale of stock help companies grow. The people who buy the stock share in the profits or losses of the company.Trading of stock is generally driven by short term speculation about the company operations, products, services, etc. It is this speculation that influences an investor's decision to buy or sell and what prices are attractive.The company raises money through the primary market. This is the Initial Public Offering (IPO).
Thereafter the stock is traded in the secondary market (what we call the stock market) when individual investors or traders buy and sell the shares to each other. The company is not involved in any profit or loss from this secondary market.Technology and the Internet have made the stock market available to the mainstream public. Computers have made investing in the stock market very easy.
Market and company news is available almost anywhere in the world. The Internet has brought a vast new group of investors into the stock market and this group continues to grow each year.Bull Market - Bear MarketAnyone who has been following the stock market or watching TV news is probably familiar with the terms Bull Market and Bear Market. What do they mean?A bull market is defined by steadily rising prices. The economy is thriving and companies are generally making a profit.
Most investors feel that this trend will continue for some time. By contrast a bear market is one where prices are dropping. The economy is probably in a decline and many companies are experiencing difficulties. Now the investors are pessimistic about the future profitability of the stock market. Since investors' attitudes tend to drive their willingness to buy or sell these trends normally perpetuate themselves until significant outside events intervene to cause a reversal of opinion.In a bull market the investor hopes to buy early and hold the stock until it has reached it's high. Obviously predicting the low and high is impossible. Since most investors are "bullish" they make more money in the rising bull market. They are willing to invest more money as the stock is rising and realize more profit.Investing in a bear market incurs the greatest possibility of losses because the trend in downward and there is no end in sight.
An investment strategy in this case might be short selling. Short selling is selling a stock that you don't own. You can make arrangements with your broker to do this. You will in effect be borrowing shares from your broker to sell in the hope of buying them back later when the price has dropped. You will profit from the difference in the two prices.
Another strategy for a bear market would be buying defensive stocks. These are stocks like utility companies that are not affected by the market downturn or companies that sell their products during all economic conditions.
BrokersTraditionally investors bought and sold stock through large brokerage houses. They made a phone call to their broker who relayed their order to the exchange floor. These brokers also offered their services as stock advisors to people who knew very little about the market. These people relied on their broker to guide them and paid a hefty price in commissions and fees as a result. The advent of the Internet has led to a new class of brokerage houses. These firms provide on-line accounts where you may log in and buy and sell stocks from anywhere you can get an Internet connection.
They usually don't offer any market advice and only provide order execution. The Internet investor can find some good deals as the members of this new breed of electronic brokerage houses compete for your business!
Blue Chip StocksLarge well established firms who have demonstrated good profitability and growth, dividend payout, and quality products and services are called blue chip stocks. They are usually the leaders of their industry, have been around for a long time, and are considered to be among the safest investments. Blue chip stocks are included in the Dow Jones Industrial Average, an index composed of thirty companies who are leaders in their industry groups. They are very popular among individual and institutional investors.
Blue chip stocks attract investors who are interested in consistent dividends and growth as well as stability. They are rarely subject to the price volatility of other stocks and their share prices will normally be higher than other categories of stock. The downside of blue chips is that due to their stability they won't appreciate as rapidly as compared to smaller up-and-coming stocks.
Penny Stocks
Penny Stocks are very low priced stocks and are very risky. They are usually issued by companies without a long term record of stability or profitability.The appeal of penny stock is their low price. Though the odds are against it, if the company can get into a growth trend the share price can jump very rapidly. They are usually favored by the speculative investor.Income StocksIncome Stocks are stock that normally pay higher than average dividends. They are well established companies like utilities or telephone companies. Income stocks are popular with the investor who wants to own the stock for a long time and collect the dividends and who is not so interested in a gain in share price.Value StocksSometimes a company's earnings and growth potential indicate that it's share price should be higher than it is currently trading at.
These stock are said to be Value Stocks. For the most part, the market and investors have ignored them. The investor who buys a value stock hopes that the market will soon realize what a bargain it is and begin to buy. This would drive up the share price.Defensive StocksDefensive Stocks are issued by companies in industries that have demonstrated good performance in bad markets. Food and utility companies are defensive stocks.Market TimingOne of the most well known market quotes is: "Buy Low - Sell High". To be consistently successful in the stock market one needs strategy, discipline, knowledge, and tools.
We need to understand our strategy and stick with it. This will prevent us from being distracted by emotion, panic, or greed.One of the most prominent investing strategies used by "investment pros" is Market Timing. This is the attempt to predict future prices from past market performance. Forecasting stock prices has been a problem for as long as people have been trading stocks. The time to buy or sell a stock is based on a number of economic indicators derived from company analysis, stock charts, and various complex mathematical and computer based algorithms.One example of market timing signals are those available from www.stock4today.com.
Risks
There are numerous risks involved in investing in the stock market. Knowing that these risks exist should be one of the things an investor is constantly aware of. The money you invest in the stock market is not guaranteed. For instance, you might buy a stock expecting a certain dividend or rate of share price increase. If the company experiences financial problems it may not live up to your dividend or price growth expectations. If the company goes out of business you will probably lose everything you invested in it.
Due to the uncertainty of the outcome, you bear a certain amount of risk when you purchase a stock.Stocks differ in the amount of risks they present. For instance, Internet stocks have demonstrated themselves to be much more risky than utility stocks.One risk is the stocks reaction to news items about the company. Depending on how the investors interpret the new item, they may be influenced to buy or sell the stock.
If enough of these investors begin to buy or sell at the same time it will cause the price to rise or fall.One effective strategy to cope with risk is diversification. This means spreading out your investments over several stocks in different market sectors. Remember the saying: "Don't put all your eggs in the same basket".As investors we need to find our
"Risk Tolerance".
Risk tolerance is our emotional and financial ability to ride out a decline in the market without panicking and selling at a loss. When we define that point we make sure not to extend our investments beyond it.BenefitsThe same forces that bring risk into investing in the stock market also make possible the large gains many investors enjoy. It's true that the fluctuations in the market make for losses as well as gains but if you have a proven strategy and stick with it over the long term you will be a winner!The Internet has make investing in the stock market a possibility for almost everybody. The wealth of online information, articles, and stock quotes gives the average person the same abilities that were once available to only stock brokers.
No longer does the investor need to contact a broker for this information or to place orders to buy or sell. We now have almost instant access to our accounts and the ability to place on-line orders in seconds. This new freedom has ushered in new masses of hopeful investors. Still this in not a random process of buying and selling stock. We need a strategy for selecting a suitable stock as well as timing to buy and sell in order to make a profit.Day TradingDay Trading is the attempt to buy and sell stock over a very short period of time. The day trader hopes to cash in on the short term fluctuations in a stock's price.
It would not be unusual for the day trader to buy and sell the same stock in a matter of a few minutes or to buy and sell the same stock several times a day.Day traders sit in front of computer monitors all day looking for short term movement in a stock. They then attempt to get in on the movement before it reverses. The real day trader does not hold a stock overnight due to the risk of some event or news item triggering the stock to reverse direction. It takes intense concentration to monitor the minute by minute movement of several stocks.
Day trading involves a great deal of risk because of the uncertainty of the market behavior over the short term. The slightest economic or political news can cause a stock to fluctuate wildly and result in unexpected losses.There are a few people who make respectable gains day trading. The people who probably make the most are the self proclaimed "experts" who sell the books or operate the web sites that cater to the day trader. Because of the profits to be made from sales to people who want to get rich quick, they make it seem as attractive as possible. The truth is that in the long run more people lose than gain by day trading. This does not translate into a very good investment.
TRADING TIIPSSS
1. You can’t take more risk than you are comfortable with - emotion is the enemy of the trader. Most of us are slaves to our emotion, which is why most traders fail despite the apparent simplicity of trading. To be successful, you have to manage emotion, and the first step toward emotional mastery is to not take more risk than you are comfortable with. If you can’t sleep at night over the potential of losing more than $500 on a stock trade, then you should not risk more than $500 on a stock trade. The less you care about the outcome of a trade, the smarter you will execute it.
2. Stops loss orders must be used - one big loss can wipe out the gains of five winning trades. Success requires that you don’t take big losses, so utilize stop loss orders. Once you are entered in a trade, enter a stop loss order and stick to it. If your brokerage does not provide the ability to execute stop loss orders, then change brokers.
3. No one cares more about your money than you - only you really care whether you make money or not. Therefore, do not depend on others to make you money; you have to take control and know what is going on. You can use the skills of others to help you make decisions, but ultimately, your success in the market will come down to what you do.
4. Losers react, winners predict - the market does not care about what happened in the past. If you are using publicly available information to make trading decisions, then you are using old information. The stock market moves on what it expects to happen in the future, and not on what has already happened. Use what has happened in the past to provide clues to what may happen in the future, but don’t make decisions on information that is widely known.
5. The stock market is not fair - Within every stock, there are a small group of investors who know more than the general public. They have an advantage, because they can better predict what a company will do in the future. To be successful, we have to figure out what the investors with better information are doing, and then do the same.
6. Information is biased - the financial industry wants you to buy stocks. The brokerages that finance the companies, the newsletters that get paid to advertise company stories, the promoters that get paid to promote stocks, the media that sell more advertising in an up market and of course, the companies themselves all benefit when stock prices go higher. The more buyers, the higher prices go. Trust no one when making investment decisions, because everyone can have a bias. Only the market can not lie (although it can seem pretty stupid sometimes), therefore, trust what the market tells you.
7. Hard work does not make money in the market - you need to work hard to learn how the stock market works. You need to work hard to learn how to manage your emotions. You need to work hard to learn discipline. However, the most money is made in a market that is trending, one where there are lots of opportunities and it seems easy to make money. When the market is not trending, it is harder to find opportunities. Working harder when the going gets tough will cause you to take marginal trades. Take the obvious trades, they are more likely to work.
8. Black boxes don’t work - there are a lot of companies selling trading systems that magically spit out buy and sell recommendations. The stock market is like a flu virus; just when you think you have it figured out, it changes in to something else. Therefore, systems too must evolve with the market. A system that worked in the past may not work in the future. However, what seems to always work is understanding how humans and crowds behave. Learn that, and you can begin to pick stocks in any market condition. More importantly, learn the art of trading well, knowing that you can not always be right, that you have to limit losses and let profits run and that you have to understand what motivates people to buy and sell. Systems, indicators, and computer programs are simply tools to help you make better decisions.
9. The stock market is usually efficient - actually, stock, futures, currencies and any other market that has enough people trading them are usually efficient. That means, most of the time you can not beat the markets. To do better than the masses, you have to identify situations where market efficiency is breaking down. That occurs when the crowd is emotional or when small groups of investors are trading on private information. Usually, that is most easily found when stocks are trading abnormally in terms of price and volume. Focus your attention on abnormal behavior when looking for trading opportunities.
10. Discipline is essential - you have to manage risk effectively, you have to use stops loss orders, you have to always be looking for high probability trading opportunities, you have to avoid taking too much risk and you have to let winning positions run. The laws of trading are nothing if you don’t have the discipline to follow them.
The very first sentence:
"Successful trading of the stock market requires a lot more than knowing what to buy or sell. "
In other words….
IT’S NOT WHAT YOU TRADE, IT’S HOW YOU TRADE IT!
2. Stops loss orders must be used - one big loss can wipe out the gains of five winning trades. Success requires that you don’t take big losses, so utilize stop loss orders. Once you are entered in a trade, enter a stop loss order and stick to it. If your brokerage does not provide the ability to execute stop loss orders, then change brokers.
3. No one cares more about your money than you - only you really care whether you make money or not. Therefore, do not depend on others to make you money; you have to take control and know what is going on. You can use the skills of others to help you make decisions, but ultimately, your success in the market will come down to what you do.
4. Losers react, winners predict - the market does not care about what happened in the past. If you are using publicly available information to make trading decisions, then you are using old information. The stock market moves on what it expects to happen in the future, and not on what has already happened. Use what has happened in the past to provide clues to what may happen in the future, but don’t make decisions on information that is widely known.
5. The stock market is not fair - Within every stock, there are a small group of investors who know more than the general public. They have an advantage, because they can better predict what a company will do in the future. To be successful, we have to figure out what the investors with better information are doing, and then do the same.
6. Information is biased - the financial industry wants you to buy stocks. The brokerages that finance the companies, the newsletters that get paid to advertise company stories, the promoters that get paid to promote stocks, the media that sell more advertising in an up market and of course, the companies themselves all benefit when stock prices go higher. The more buyers, the higher prices go. Trust no one when making investment decisions, because everyone can have a bias. Only the market can not lie (although it can seem pretty stupid sometimes), therefore, trust what the market tells you.
7. Hard work does not make money in the market - you need to work hard to learn how the stock market works. You need to work hard to learn how to manage your emotions. You need to work hard to learn discipline. However, the most money is made in a market that is trending, one where there are lots of opportunities and it seems easy to make money. When the market is not trending, it is harder to find opportunities. Working harder when the going gets tough will cause you to take marginal trades. Take the obvious trades, they are more likely to work.
8. Black boxes don’t work - there are a lot of companies selling trading systems that magically spit out buy and sell recommendations. The stock market is like a flu virus; just when you think you have it figured out, it changes in to something else. Therefore, systems too must evolve with the market. A system that worked in the past may not work in the future. However, what seems to always work is understanding how humans and crowds behave. Learn that, and you can begin to pick stocks in any market condition. More importantly, learn the art of trading well, knowing that you can not always be right, that you have to limit losses and let profits run and that you have to understand what motivates people to buy and sell. Systems, indicators, and computer programs are simply tools to help you make better decisions.
9. The stock market is usually efficient - actually, stock, futures, currencies and any other market that has enough people trading them are usually efficient. That means, most of the time you can not beat the markets. To do better than the masses, you have to identify situations where market efficiency is breaking down. That occurs when the crowd is emotional or when small groups of investors are trading on private information. Usually, that is most easily found when stocks are trading abnormally in terms of price and volume. Focus your attention on abnormal behavior when looking for trading opportunities.
10. Discipline is essential - you have to manage risk effectively, you have to use stops loss orders, you have to always be looking for high probability trading opportunities, you have to avoid taking too much risk and you have to let winning positions run. The laws of trading are nothing if you don’t have the discipline to follow them.
The very first sentence:
"Successful trading of the stock market requires a lot more than knowing what to buy or sell. "
In other words….
IT’S NOT WHAT YOU TRADE, IT’S HOW YOU TRADE IT!
Seven Principles of Investment Management
Seven Principles of Investment Management
Many Investment Gurus, with a straight face and a gleam in their eye, will insist that successful investing is a function of expansive research, skillful market timing, and detailed technical analysis. Others emphasize fundamental information about companies, industries, and markets. But trends and numbers are secondary to a thorough understanding of the basic principles of Investing and Management, and their interrelationships. The ingredients for a successful investment portfolio are these: stubborn belief in the Quality, Diversification, and Income trinity from Investments 101, and operations that employ the Planning, Leading, Organizing, and Controlling skills introduced in Freshman Management. Here are some things to keep in mind while you season your experience with patience and marinate your investment process with discipline:
* A viable Investment Program begins with the private development of an Investment Plan. The first step is the identification of personal goals and objectives and a time frame for goal achievement. The end result should be a near autopilot, long-term and increasing, retirement income. Asset Allocation is used to structure the portfolio so that it operates in a goal directed manner. The finished Plan must be flexible in design, based upon reasonable expectations, simple in structure and operation, and easy to supervise.
* Use a "cost based" Asset Allocation Model. Although most of the Investment World operates on a Market Value basis for everything from performance analysis to Asset Allocation and Diversification decision modeling, you will improve your long-term results and stay within your allocation and diversification guidelines better by using a system based upon Working Capital. This widely unknown Asset Allocation "model" takes the hype out of daily stock market reporting and keeps the income investor's focus on appropriate statistics.
* Control your emotions, among other things. Clearly, fear and greed are the two that require the most control in the investment environment... particularly in these days of a reckless media, Internet empowered scam merchants, high-speed information gathering/processing, and cheap personalized trading capabilities. Love and hate need to be dealt with as well, but there are fewer out-of-body influences on these. Only strictly disciplined decision makers need apply for your Investment Management position... and you may not be the ideal candidate. Investment Management is a continual responsibility, not a weekend and occasional evenings avocation.
* Avoid hindsightful analysis, and uninformed (or salesperson) criticism. It is painfully comical how hindsight has taken over in our society... in sports, finance, politics, and the professions, everywhere... everyone you hear is second-guessing and finger pointing. No one is willing to take responsibility for their own actions and everyone is willing to sue whoever coulda', woulda' or shoulda' prevented whatever happened. Investors cannot afford to be Little League crybabies. Make one of the three basic decisions (which are?) and don't look back. No person or program can predict the future, and your portfolio requires management today. The playing field for the investment game is uncertainty.* Establish a profit-taking target for every security you purchase. The purpose of investing is to make more money than you could in a guaranteed, non-negotiable instrument. This larger money making expectation comes with an assumption of some form of risk... there are several, and its "in there" in all investments. In Equities, set a reasonable profit target and take less if you can get it quickly. With income investments, never say no to a profit equal to a year's income, or 10% if you like round numbers. There are always new investment opportunities, and there is no such thing as a bad profit... or a good loss.* Examine Market Value numbers at intelligent intervals. Frequent examination is stressful and non-productive. There are no averages or indices that compare with a properly diversified Investment Portfolio, particularly if your Equity selections are screened for Quality and Income. Investing is a long-term endeavor, and neither Shock(sic) Market symbols nor current yields operate on a calendar year schedule. Look at market peaks and troughs over significant time periods that include "cycles"... and do separate your analysis by class.
* Avoid what the crowd is doing and shun investment products. Consumers buy products; Investors buy securities. The crowd is driven by the very emotions that you must learn to control. Stay focused on your plan; analyze your annual income and trading statistics. Buy and hold creates more real tax problems than real millionaires, and gimmicks and fads last just slightly longer than spring fashions. Always buy good stuff on bad news and sell into good news announcements.
* Don't try to save the world with your investment decisions. Never limit your investment opportunities artificially. Votes work better when it comes to changing your world, and corporations should not be the targets of your political hates... get rid of incumbents, state and local, until there are changes in the tax code, social security, tort law, environmental issues, etc. In the meantime, invest with your head, not your heart. The business of a capitalist society is..
. * Keep in mind that you need Income to pay the bills, and that your cost of living in retirement will be higher than you think. If you insist on some income from every Equity security you ever own, and beat-the-bank income from income securities, you will obtain two important things: An annually increasing cash flow that will rise at a rate greater than most normal inflation rates, and a higher quality investment portfolio for better long-term investment performance. (If you use a cost based Asset Allocation model with at least 30% invested in income securities and no open end Mutual Funds or Index ETFs.) Never settle for tiny short-term yields or get hooked on those that are unsustainably high.
* Investing is not a competitive event, ever. You don't need to beat the market. You need to accomplish a set of personalized goals. Not even your twin's portfolio should be the same as yours. The faster you run, the less likely it is that you will succeed over time. Big risks, foolproof gimmicks, and exotic computer programs occasion more failures than success stories. Remember the Investment gods? They created Stocks and Bonds... only Stocks and Bonds!* Avoid Unrealized Gains, Embrace Volatility, Increase Annual Income, and remember that all key investment moments are only visible in rear view mirrors. Most unrealized gains become Schedule D realized losses. As of today there has never been a correction (rally) that has not succumbed to the next rally (correction). Only an increasing income level can beat back inflation... a bigger market value number just doesn't do it.
Many Investment Gurus, with a straight face and a gleam in their eye, will insist that successful investing is a function of expansive research, skillful market timing, and detailed technical analysis. Others emphasize fundamental information about companies, industries, and markets. But trends and numbers are secondary to a thorough understanding of the basic principles of Investing and Management, and their interrelationships. The ingredients for a successful investment portfolio are these: stubborn belief in the Quality, Diversification, and Income trinity from Investments 101, and operations that employ the Planning, Leading, Organizing, and Controlling skills introduced in Freshman Management. Here are some things to keep in mind while you season your experience with patience and marinate your investment process with discipline:
* A viable Investment Program begins with the private development of an Investment Plan. The first step is the identification of personal goals and objectives and a time frame for goal achievement. The end result should be a near autopilot, long-term and increasing, retirement income. Asset Allocation is used to structure the portfolio so that it operates in a goal directed manner. The finished Plan must be flexible in design, based upon reasonable expectations, simple in structure and operation, and easy to supervise.
* Use a "cost based" Asset Allocation Model. Although most of the Investment World operates on a Market Value basis for everything from performance analysis to Asset Allocation and Diversification decision modeling, you will improve your long-term results and stay within your allocation and diversification guidelines better by using a system based upon Working Capital. This widely unknown Asset Allocation "model" takes the hype out of daily stock market reporting and keeps the income investor's focus on appropriate statistics.
* Control your emotions, among other things. Clearly, fear and greed are the two that require the most control in the investment environment... particularly in these days of a reckless media, Internet empowered scam merchants, high-speed information gathering/processing, and cheap personalized trading capabilities. Love and hate need to be dealt with as well, but there are fewer out-of-body influences on these. Only strictly disciplined decision makers need apply for your Investment Management position... and you may not be the ideal candidate. Investment Management is a continual responsibility, not a weekend and occasional evenings avocation.
* Avoid hindsightful analysis, and uninformed (or salesperson) criticism. It is painfully comical how hindsight has taken over in our society... in sports, finance, politics, and the professions, everywhere... everyone you hear is second-guessing and finger pointing. No one is willing to take responsibility for their own actions and everyone is willing to sue whoever coulda', woulda' or shoulda' prevented whatever happened. Investors cannot afford to be Little League crybabies. Make one of the three basic decisions (which are?) and don't look back. No person or program can predict the future, and your portfolio requires management today. The playing field for the investment game is uncertainty.* Establish a profit-taking target for every security you purchase. The purpose of investing is to make more money than you could in a guaranteed, non-negotiable instrument. This larger money making expectation comes with an assumption of some form of risk... there are several, and its "in there" in all investments. In Equities, set a reasonable profit target and take less if you can get it quickly. With income investments, never say no to a profit equal to a year's income, or 10% if you like round numbers. There are always new investment opportunities, and there is no such thing as a bad profit... or a good loss.* Examine Market Value numbers at intelligent intervals. Frequent examination is stressful and non-productive. There are no averages or indices that compare with a properly diversified Investment Portfolio, particularly if your Equity selections are screened for Quality and Income. Investing is a long-term endeavor, and neither Shock(sic) Market symbols nor current yields operate on a calendar year schedule. Look at market peaks and troughs over significant time periods that include "cycles"... and do separate your analysis by class.
* Avoid what the crowd is doing and shun investment products. Consumers buy products; Investors buy securities. The crowd is driven by the very emotions that you must learn to control. Stay focused on your plan; analyze your annual income and trading statistics. Buy and hold creates more real tax problems than real millionaires, and gimmicks and fads last just slightly longer than spring fashions. Always buy good stuff on bad news and sell into good news announcements.
* Don't try to save the world with your investment decisions. Never limit your investment opportunities artificially. Votes work better when it comes to changing your world, and corporations should not be the targets of your political hates... get rid of incumbents, state and local, until there are changes in the tax code, social security, tort law, environmental issues, etc. In the meantime, invest with your head, not your heart. The business of a capitalist society is..
. * Keep in mind that you need Income to pay the bills, and that your cost of living in retirement will be higher than you think. If you insist on some income from every Equity security you ever own, and beat-the-bank income from income securities, you will obtain two important things: An annually increasing cash flow that will rise at a rate greater than most normal inflation rates, and a higher quality investment portfolio for better long-term investment performance. (If you use a cost based Asset Allocation model with at least 30% invested in income securities and no open end Mutual Funds or Index ETFs.) Never settle for tiny short-term yields or get hooked on those that are unsustainably high.
* Investing is not a competitive event, ever. You don't need to beat the market. You need to accomplish a set of personalized goals. Not even your twin's portfolio should be the same as yours. The faster you run, the less likely it is that you will succeed over time. Big risks, foolproof gimmicks, and exotic computer programs occasion more failures than success stories. Remember the Investment gods? They created Stocks and Bonds... only Stocks and Bonds!* Avoid Unrealized Gains, Embrace Volatility, Increase Annual Income, and remember that all key investment moments are only visible in rear view mirrors. Most unrealized gains become Schedule D realized losses. As of today there has never been a correction (rally) that has not succumbed to the next rally (correction). Only an increasing income level can beat back inflation... a bigger market value number just doesn't do it.
Roadmap to Trading
Roadmap to Trading
Trading, like anything in life, requires some work. You find what works for you and stick to it. I like to say trading is like running a marathon, it is a very long road, but one you will finish if the preparation is done. A sprinter finishes quickly and gets instant gratification for their efforts. Trading doesn’t work that way. There are no short cuts or ways to get around defining a plan that works for you.
The days of stock brokers making all your financial decisions are gone with the dinosaurs. Technology has brought controlling your own financial destiny into any household with a PC and internet connection. However, that destiny will be disastrous if the proper learning curve isn’t followed. Like with a marathon, the race is a single day, but the training is the discipline and hard work leading up to that day that can take many months. Trading requires reading, studying, back testing, and focus for months before you actually understand the market; then probably many more months before you make a trade. The beauty of technology is you can simulate trading to find a tried and true system for yourself.I started trading in 1997 when everyone was talking about the stock market like the buzz around real estate now. I wanted to leave corporate America and be a Mom, but that was a little slow paced for me. I had an interest in the market so I started my research journey. I found very little information or help, online trading was still in its infancy with limited resources. I stayed up half the night reading trading books to my sleepless infant son and studied endlessly. My style of trading and knowledge has evolved over the years because you never stop learning. Each day with the market is new and a different puzzle to complete. What has changed the most is information available and that why I chose this topic. To provide a road map and narrow a trader’s focus, understanding what is basic and necessary is needed and not readily available.
Styles of tradingThere is technical analysis, fundamentals, long term, short term, and much much more. Combining styles is also an option, but generally you are either an investor or a trader. From that point you are either a technical trader or a fundamentalist. Either style works and can fit your needs. But know which you are and what your plan is. I personally trade off technical analysis. The charts lead me and I follow. LISTEN to the market and never think you know more than the market, the market never lies and price never deceives. It is what it is, nothing more and nothing less.
I also like to trade off shorter time frames. Therefore I am not an investor and do not hold things for months let alone years. That fits my risk tolerances and financial goals. Each person has to define that for themselves. Once you define your style you have several alternatives of what to trade: stocks, options, stock index futures, commodities, forex, and single stock futures. Each exchange offers general descriptions and education materials on each. A good overview can help guide you to find your interest and what you will aspire to learn in depth. Then once you get one thing under your belt you can transfer your knowledge to other trading instruments.
Steps to learn
The hardest part of learning is knowing what can be worthwhile and what is not. Unfortunately this is not a cookie cutter world and what works for one person may not for you because of interpretation and use. But over the years I have defined what I feel are good steps that work as a road map of what to do and in what order. Now at this point in the article I have to tell you, I ignore the market fundamentals and rely on geopolitical events, news, economic data and the chart for my decision making. The chart is 90% and the rest is noise in the market I account for. I trade stocks, options and stock index futures with the information I have outlined in this article.
Learn to read the chart and you do that by identifying different parts that make up the chart. PRICE is first and foremost, it leads and never lies. Indicators follow its lead. To see the price on the chart you may want to use candlesticks, bars, or a tick chart. I am not a fan of line charts or point and figure for this type of technical analysis. Also I find that candlesticks are easiest to read for a trader. At a glance you can define price action and patterns just off the color of the candle or the formation. So taking the time to become familiar with candlesticks is critical to learn the use of price.
Volume should be present on your chart, knowing what volume is doing can be very helpful. Increasing or decreasing volume on moves up or down, consolidating markets all pieces you have to know for an educated decision. So watch volume regularly.
Support and resistance, which is simply the floor and the ceiling of PRICE.
Chart patterns, start basic with double top/bottom, head and shoulders, triangles, channels, cup and handles, continuation patterns (flags), wedges, and engulfing patterns. Then once you get that down and can identify them move onto more advanced setups such as ABC, butterfly, etc… ALL from PRICE and Volume
Indicators are a dime a dozen so pick your poison. You need an oscillator…that can be MACD, CCI, RSI, MFI. They all measure momentum. They can tell you overbought/oversold conditions or point out divergences and can give buy/sell signals. Very valuable tool on the chart. I use some of each of these and for different reasons. MACD gives me signals for buy and selling, CCI and RSI for overbought/sold conditions along with divergences. MFI tells me the participation in the move with volume involved. Of all the indicators I think CCI is the easiest to use on a histogram placed on the chart.
Moving averages, again another one where the sky is the limit. Institutions use the 50dma and the 200dma. Even non technical traders are aware of those and where the stock is in relation to them. In addition to those I use a 20 day exponential moving average (ema) for intraday and daily time frames. Along with those three I add the 34ema and 5ma. Remember EMA is exponential moving average and MA is simple moving average. Exponential gives more weight to the current price versus simple that is equally weighted. Moving averages are a form of support or resistance. They can also be used as buy/sell signals with crossovers or breaks of that support/resistance of them.
Trendlines just require some practice and very easy to pick up on using. The rule is simple for a trendline. Connect three swing highs or lows to draw the line. Price stays within or breaks outside the trendline, they are a form of support and resistance.
Once you are feeling comfortable with the above tools for trading. You will want to continue learning and adding to your arsenal for becoming an advanced trader. With tools like Fibonacci analysis, price projection, pivot points, ADX, Bollinger bands and stochastics. Keeping the basics in line and under your belt allows you to add other things as you see a need and ready for that. A chart should be easy for you to interpret and getting to that level is the objective. So do not over clutter yourself with indicators. There are many traders that are incredibly successful with nothing other than candlesticks and basic support and resistance. Bare bone charts work and maybe for you. I like a few indicators and Fibonacci analysis is very key part of my trading. But I did not use that my first year or two of trading, I added it along the way.
Beyond an individual chart to time the market you will eventually want to learn to look at the particular sector and broader market for overall direction. But keep it simple in the beginning and start with a few charts to learn from. Market breadth and other timing tools come with time. Do not think you have to know all of that to get started. The basics I outline are more than enough and more than I knew for the first two years of trading. Finally by my third and fourth year I was very serious and was non-stop with adding things to understand the broader market.
A chart can be read in any time frame you wish to use. If you are a scalper, a 1 and 3 minute chart is probably your best choice. An intraday trader can rely heavily on 5 minute or 13 minute. Yes, I said 13 minute instead of 15 minute. Personal preference and it is a Fibonacci number so allows all my analysis to mesh so to speak. If you are a trader that is out for a one to five days on setups then a 65 minute (yes 65 minute instead of 60 minute…because the market is open for 6 ½ hours so if you use 60 minute the chart is skewed, use a 65 min. for an even look) and daily chart is your friend. Longer term outlook would be weekly or even monthly view.
As you can see there is a lot of decision making involved with getting started. But the upside is, this is possibly the only thing in life you will EVER do that for every minute you commit to learning this you will be repaid. You can work hard at your job and maybe get a raise or a bonus. BUT if you work hard at trading you will reap rewards. This is your money, take it very seriously and do not rush things. Remember you are in training to be a fine athlete. Everyone wants to push buttons and that is the one thing you should not be doing until you have a tried and true plan in hand.
Defining your risk toleranceThe biggest part of trading is when to get in and out. I talked about learning to read the chart. Well the entry and exit come from that very thing. Timing the market is not easy. But timing a piece of the market is doable. The main objective should be measuring the risk and reward that you are comfortable with because you will NOT win every trade. You may only win ever 1 of 3. But with proper management you will come out ahead. It is said that you can lose 60% of the time and still make money if you manage things properly. I am not a fan of that thinking and do not play into that. If you are only right 40% of the time you need to study more and refine the process. Get use to not picking tops and bottoms and learn to take your piece. Pieces add up to the homerun and require less risk. Overall you will win and never take the big draw downs on your portfolio.
Using stop losses on every trade is the way to define risk. Know before you enter a trade what you are willing to risk. But more importantly what does the setup you are about to take require you risk. If it is not within your comfort zone you pass on the trade. The great thing about the market is there are plenty of setups. I love to say…I would rather be OUT of a trade wishing I was in, than IN a trade wishing I was out. Been there and done that! “Hope” is not a style of trading or in the money management part of trading. So don’t rely on it to make money.
Knowing when to sit and when to trade is a key to success. Knowing that some days are not your day and there is no playing catch up and taking huge risks to try to recover the losses. Knowing when to just walk away is the sign of a real trader. Come back fresh and ready to pull the trigger on the right setups. Panic sets in when you are losing or a trade goes against you. Don’t let it and remember you have a plan and that plan is set in place BEFORE you enter. Take the emotion out of it. No cheating because you will cheat yourself out of success if you do. Keep a log if you need the discipline. Write down the trade and the stop you will use PRIOR to entering. It will help you long term to develop good trading habits.
Over coming fearThe final thing about learning I will talk about is FEAR. This is real money and the unknown is scary. Worse yet you may have heard horror stories or been a horror story yourself. The ONLY way to overcome that fear is to have confidence in your ability to succeed. This will come from proper knowledge and finding that tried and true system that works for you. Set your rules and do not deviate from them. Practice by paper trading or simulator trading until you see that you are capable of trading successfully. Do not let anxiety to “go make money” and “get this started” take over your brain. If you were not a runner and did no exercise at all would you go sign up to run a marathon? Would you skip med school and become a doctor? NO you would not. So why would you not take the proper time to get yourself educated to trade? With educating yourself you get the fear under control and then just have fun with the market and let the rest go.
Trading should be fun and that does not need to be interpreted as easy. Trading is not easy but if you take the proper steps to prepare it is achievable
tradewithlogic.com
Trading, like anything in life, requires some work. You find what works for you and stick to it. I like to say trading is like running a marathon, it is a very long road, but one you will finish if the preparation is done. A sprinter finishes quickly and gets instant gratification for their efforts. Trading doesn’t work that way. There are no short cuts or ways to get around defining a plan that works for you.
The days of stock brokers making all your financial decisions are gone with the dinosaurs. Technology has brought controlling your own financial destiny into any household with a PC and internet connection. However, that destiny will be disastrous if the proper learning curve isn’t followed. Like with a marathon, the race is a single day, but the training is the discipline and hard work leading up to that day that can take many months. Trading requires reading, studying, back testing, and focus for months before you actually understand the market; then probably many more months before you make a trade. The beauty of technology is you can simulate trading to find a tried and true system for yourself.I started trading in 1997 when everyone was talking about the stock market like the buzz around real estate now. I wanted to leave corporate America and be a Mom, but that was a little slow paced for me. I had an interest in the market so I started my research journey. I found very little information or help, online trading was still in its infancy with limited resources. I stayed up half the night reading trading books to my sleepless infant son and studied endlessly. My style of trading and knowledge has evolved over the years because you never stop learning. Each day with the market is new and a different puzzle to complete. What has changed the most is information available and that why I chose this topic. To provide a road map and narrow a trader’s focus, understanding what is basic and necessary is needed and not readily available.
Styles of tradingThere is technical analysis, fundamentals, long term, short term, and much much more. Combining styles is also an option, but generally you are either an investor or a trader. From that point you are either a technical trader or a fundamentalist. Either style works and can fit your needs. But know which you are and what your plan is. I personally trade off technical analysis. The charts lead me and I follow. LISTEN to the market and never think you know more than the market, the market never lies and price never deceives. It is what it is, nothing more and nothing less.
I also like to trade off shorter time frames. Therefore I am not an investor and do not hold things for months let alone years. That fits my risk tolerances and financial goals. Each person has to define that for themselves. Once you define your style you have several alternatives of what to trade: stocks, options, stock index futures, commodities, forex, and single stock futures. Each exchange offers general descriptions and education materials on each. A good overview can help guide you to find your interest and what you will aspire to learn in depth. Then once you get one thing under your belt you can transfer your knowledge to other trading instruments.
Steps to learn
The hardest part of learning is knowing what can be worthwhile and what is not. Unfortunately this is not a cookie cutter world and what works for one person may not for you because of interpretation and use. But over the years I have defined what I feel are good steps that work as a road map of what to do and in what order. Now at this point in the article I have to tell you, I ignore the market fundamentals and rely on geopolitical events, news, economic data and the chart for my decision making. The chart is 90% and the rest is noise in the market I account for. I trade stocks, options and stock index futures with the information I have outlined in this article.
Learn to read the chart and you do that by identifying different parts that make up the chart. PRICE is first and foremost, it leads and never lies. Indicators follow its lead. To see the price on the chart you may want to use candlesticks, bars, or a tick chart. I am not a fan of line charts or point and figure for this type of technical analysis. Also I find that candlesticks are easiest to read for a trader. At a glance you can define price action and patterns just off the color of the candle or the formation. So taking the time to become familiar with candlesticks is critical to learn the use of price.
Volume should be present on your chart, knowing what volume is doing can be very helpful. Increasing or decreasing volume on moves up or down, consolidating markets all pieces you have to know for an educated decision. So watch volume regularly.
Support and resistance, which is simply the floor and the ceiling of PRICE.
Chart patterns, start basic with double top/bottom, head and shoulders, triangles, channels, cup and handles, continuation patterns (flags), wedges, and engulfing patterns. Then once you get that down and can identify them move onto more advanced setups such as ABC, butterfly, etc… ALL from PRICE and Volume
Indicators are a dime a dozen so pick your poison. You need an oscillator…that can be MACD, CCI, RSI, MFI. They all measure momentum. They can tell you overbought/oversold conditions or point out divergences and can give buy/sell signals. Very valuable tool on the chart. I use some of each of these and for different reasons. MACD gives me signals for buy and selling, CCI and RSI for overbought/sold conditions along with divergences. MFI tells me the participation in the move with volume involved. Of all the indicators I think CCI is the easiest to use on a histogram placed on the chart.
Moving averages, again another one where the sky is the limit. Institutions use the 50dma and the 200dma. Even non technical traders are aware of those and where the stock is in relation to them. In addition to those I use a 20 day exponential moving average (ema) for intraday and daily time frames. Along with those three I add the 34ema and 5ma. Remember EMA is exponential moving average and MA is simple moving average. Exponential gives more weight to the current price versus simple that is equally weighted. Moving averages are a form of support or resistance. They can also be used as buy/sell signals with crossovers or breaks of that support/resistance of them.
Trendlines just require some practice and very easy to pick up on using. The rule is simple for a trendline. Connect three swing highs or lows to draw the line. Price stays within or breaks outside the trendline, they are a form of support and resistance.
Once you are feeling comfortable with the above tools for trading. You will want to continue learning and adding to your arsenal for becoming an advanced trader. With tools like Fibonacci analysis, price projection, pivot points, ADX, Bollinger bands and stochastics. Keeping the basics in line and under your belt allows you to add other things as you see a need and ready for that. A chart should be easy for you to interpret and getting to that level is the objective. So do not over clutter yourself with indicators. There are many traders that are incredibly successful with nothing other than candlesticks and basic support and resistance. Bare bone charts work and maybe for you. I like a few indicators and Fibonacci analysis is very key part of my trading. But I did not use that my first year or two of trading, I added it along the way.
Beyond an individual chart to time the market you will eventually want to learn to look at the particular sector and broader market for overall direction. But keep it simple in the beginning and start with a few charts to learn from. Market breadth and other timing tools come with time. Do not think you have to know all of that to get started. The basics I outline are more than enough and more than I knew for the first two years of trading. Finally by my third and fourth year I was very serious and was non-stop with adding things to understand the broader market.
A chart can be read in any time frame you wish to use. If you are a scalper, a 1 and 3 minute chart is probably your best choice. An intraday trader can rely heavily on 5 minute or 13 minute. Yes, I said 13 minute instead of 15 minute. Personal preference and it is a Fibonacci number so allows all my analysis to mesh so to speak. If you are a trader that is out for a one to five days on setups then a 65 minute (yes 65 minute instead of 60 minute…because the market is open for 6 ½ hours so if you use 60 minute the chart is skewed, use a 65 min. for an even look) and daily chart is your friend. Longer term outlook would be weekly or even monthly view.
As you can see there is a lot of decision making involved with getting started. But the upside is, this is possibly the only thing in life you will EVER do that for every minute you commit to learning this you will be repaid. You can work hard at your job and maybe get a raise or a bonus. BUT if you work hard at trading you will reap rewards. This is your money, take it very seriously and do not rush things. Remember you are in training to be a fine athlete. Everyone wants to push buttons and that is the one thing you should not be doing until you have a tried and true plan in hand.
Defining your risk toleranceThe biggest part of trading is when to get in and out. I talked about learning to read the chart. Well the entry and exit come from that very thing. Timing the market is not easy. But timing a piece of the market is doable. The main objective should be measuring the risk and reward that you are comfortable with because you will NOT win every trade. You may only win ever 1 of 3. But with proper management you will come out ahead. It is said that you can lose 60% of the time and still make money if you manage things properly. I am not a fan of that thinking and do not play into that. If you are only right 40% of the time you need to study more and refine the process. Get use to not picking tops and bottoms and learn to take your piece. Pieces add up to the homerun and require less risk. Overall you will win and never take the big draw downs on your portfolio.
Using stop losses on every trade is the way to define risk. Know before you enter a trade what you are willing to risk. But more importantly what does the setup you are about to take require you risk. If it is not within your comfort zone you pass on the trade. The great thing about the market is there are plenty of setups. I love to say…I would rather be OUT of a trade wishing I was in, than IN a trade wishing I was out. Been there and done that! “Hope” is not a style of trading or in the money management part of trading. So don’t rely on it to make money.
Knowing when to sit and when to trade is a key to success. Knowing that some days are not your day and there is no playing catch up and taking huge risks to try to recover the losses. Knowing when to just walk away is the sign of a real trader. Come back fresh and ready to pull the trigger on the right setups. Panic sets in when you are losing or a trade goes against you. Don’t let it and remember you have a plan and that plan is set in place BEFORE you enter. Take the emotion out of it. No cheating because you will cheat yourself out of success if you do. Keep a log if you need the discipline. Write down the trade and the stop you will use PRIOR to entering. It will help you long term to develop good trading habits.
Over coming fearThe final thing about learning I will talk about is FEAR. This is real money and the unknown is scary. Worse yet you may have heard horror stories or been a horror story yourself. The ONLY way to overcome that fear is to have confidence in your ability to succeed. This will come from proper knowledge and finding that tried and true system that works for you. Set your rules and do not deviate from them. Practice by paper trading or simulator trading until you see that you are capable of trading successfully. Do not let anxiety to “go make money” and “get this started” take over your brain. If you were not a runner and did no exercise at all would you go sign up to run a marathon? Would you skip med school and become a doctor? NO you would not. So why would you not take the proper time to get yourself educated to trade? With educating yourself you get the fear under control and then just have fun with the market and let the rest go.
Trading should be fun and that does not need to be interpreted as easy. Trading is not easy but if you take the proper steps to prepare it is achievable
tradewithlogic.com
What makes a Successful Stock Trader?
What makes a Successful Stock Trader?
I'll be telling you about 15 characteristics of a very successful trader.Trading in stock isn't everyone’s cup of tea. Some people can do it and some can't. Even among the some who can, not everybody can be successful at it. While there are no hard and fast rules on what makes or doesn't make a successful stock trader, those Wall street Wizards that you hear about who made the most in the least amount of time, all appear to have certain characteristics in common.
1. Successful stock traders are able to go against their natural instincts.
2. Successful traders have a simple system. No matter which technique you use as long as you stick to it. A Successful trader knows their technique and makes trades based ONLY on their system. "The secret to being a winner is consistency of purpose". You want to improve a separate strategy for getting into a position and for exiting one.
3. Successful traders are risk Adverse. Successful traders don't like losing money and prohibit themselves before losing too much, even if it means admitting they made a mistake.
4. Successful traders are willing to make mistakes. Successful traders have the right and ability, not to do the right thing, but to do the wrong thing. It's the ability to make your own mistakes.
5. Successful traders don't care about being embarrassed by taking a loss. Successful traders expect to take losses and know when to cut them.
6. Successful traders know, or learn how to explore stocks. Many traders only use precise analysis, but you may want to learn to use fundamental analysis as well.
7. Successful traders lead balanced lives. We all know the pleasure of the pursuit and the stock market can be addicting, a successful trader is one who knows when to move away and can.
8. A successful trader is Patient. A successful trader let’s winning positions run, but is able to back out when proven wrong. Patience can mean resilience, courage, and conviction for when markets go against you.
9. A successful trader has a biting Desire to succeed. Triumph takes steady work not a chaotic effort, a biting desire to succeed can make all the difference in educating yourself about what you want to know and sticking to your strategy when the going gets rough.
10. A successful trader is disciplined. Very disciplined. A successful trader will do what he needs to do, even if he isn't in the mood. Discipline also means Sticking to your strategy, not abruptly buying or selling on a whim, or because of a" hot tip"
11. A successful trader knows the difference between defensive and offensive behaviour, and when to use each. - protect your money first, profit later.
12. Successful traders don't eavesdrop on rumours or get emotionally involved. To be a successful trader you have to be very hard on yourself. Your have to be able to resist the urge to prove you are right and be ready to make mistakes. . You also want to be able to not let emotions affect your decisions. Setting up stop loss points for every decision you make is something that you are going to have to do. That will mean more than occasionally admitting that you are wrong. You and your portfolio will survive and you will be able to get back into the position again when trends signify that the time is right. You will have to learn to disregard any emotional ties you have to your stock and make quick stock trends your master. You will miss the lowest entry points and the top selling points, but you will be able to sleep at night. You will need to learn to get out of a stock position before your profits turn into losses.
13. A successful trader knows themselves. Successful traders must be attentive of their strengths and weaknesses. Your strengths and weakness will become very important. Play on your strengths when you can.
14. A successful trader knows their investments. Your investments are almost as important as you are. Know the past history of the stock and their strengths and weaknesses as well
.15. A successful trader sticks to the rules. The system is there for a reason. Nothing can ruin a successful stock buyer as quickly, or as certainly as flouting the rules.
http://www.fish4articles.com
I'll be telling you about 15 characteristics of a very successful trader.Trading in stock isn't everyone’s cup of tea. Some people can do it and some can't. Even among the some who can, not everybody can be successful at it. While there are no hard and fast rules on what makes or doesn't make a successful stock trader, those Wall street Wizards that you hear about who made the most in the least amount of time, all appear to have certain characteristics in common.
1. Successful stock traders are able to go against their natural instincts.
2. Successful traders have a simple system. No matter which technique you use as long as you stick to it. A Successful trader knows their technique and makes trades based ONLY on their system. "The secret to being a winner is consistency of purpose". You want to improve a separate strategy for getting into a position and for exiting one.
3. Successful traders are risk Adverse. Successful traders don't like losing money and prohibit themselves before losing too much, even if it means admitting they made a mistake.
4. Successful traders are willing to make mistakes. Successful traders have the right and ability, not to do the right thing, but to do the wrong thing. It's the ability to make your own mistakes.
5. Successful traders don't care about being embarrassed by taking a loss. Successful traders expect to take losses and know when to cut them.
6. Successful traders know, or learn how to explore stocks. Many traders only use precise analysis, but you may want to learn to use fundamental analysis as well.
7. Successful traders lead balanced lives. We all know the pleasure of the pursuit and the stock market can be addicting, a successful trader is one who knows when to move away and can.
8. A successful trader is Patient. A successful trader let’s winning positions run, but is able to back out when proven wrong. Patience can mean resilience, courage, and conviction for when markets go against you.
9. A successful trader has a biting Desire to succeed. Triumph takes steady work not a chaotic effort, a biting desire to succeed can make all the difference in educating yourself about what you want to know and sticking to your strategy when the going gets rough.
10. A successful trader is disciplined. Very disciplined. A successful trader will do what he needs to do, even if he isn't in the mood. Discipline also means Sticking to your strategy, not abruptly buying or selling on a whim, or because of a" hot tip"
11. A successful trader knows the difference between defensive and offensive behaviour, and when to use each. - protect your money first, profit later.
12. Successful traders don't eavesdrop on rumours or get emotionally involved. To be a successful trader you have to be very hard on yourself. Your have to be able to resist the urge to prove you are right and be ready to make mistakes. . You also want to be able to not let emotions affect your decisions. Setting up stop loss points for every decision you make is something that you are going to have to do. That will mean more than occasionally admitting that you are wrong. You and your portfolio will survive and you will be able to get back into the position again when trends signify that the time is right. You will have to learn to disregard any emotional ties you have to your stock and make quick stock trends your master. You will miss the lowest entry points and the top selling points, but you will be able to sleep at night. You will need to learn to get out of a stock position before your profits turn into losses.
13. A successful trader knows themselves. Successful traders must be attentive of their strengths and weaknesses. Your strengths and weakness will become very important. Play on your strengths when you can.
14. A successful trader knows their investments. Your investments are almost as important as you are. Know the past history of the stock and their strengths and weaknesses as well
.15. A successful trader sticks to the rules. The system is there for a reason. Nothing can ruin a successful stock buyer as quickly, or as certainly as flouting the rules.
http://www.fish4articles.com
Trading The Stock Market Online
Trading The Stock Market Online - Watch Out for the "Get Rich Quick" Crowd
Few people who set out to get rich quick trading stocks online actually become rich. The small group of get-rich-quickers who do make lots of money fast do it purely as a result of chance. They rarely keep their trading gains for very long.
This is because trying to get rich quick causes stock traders to take on way too much risk. This is normally done by trading with excessive margin or by investing too much money in one position. Unfortunately, people who are in a hurry to make a lot of money trading online tend not to do a good job of managing risk.
Managing trading risk involves focusing more on the potential downside of a trade or investment than the potential upside. In practical terms this means using an objective stock market trading method designed to limit drawdowns in the value of your stock portfolio.
If you do a good job of managing risk you will almost certainly make money trading the stock market over the long-term. Those who consistently ignore risk and overload the wagons in an attempt to get rich quick are guaranteed failure.
For example, most traders with a get-rich-quick mindset don't realize that if they repeatedly bet everything on trades in which the probability of success is 90% they will eventually lose everything. Sure, they look like a genius for a while, but the one out of every ten trades that happens to be a 'loser' will wipe them out.
Bottom Line: Wall Street would have you believe that there is a direct correlation between the risk you take and the return you make. That is pure Market Myth. You don't have to increase your risk to crease your return.
Stock market trading online is a type of speculation where education and skill can dramatically improve your odds of winning. Risk management is a skill. Reducing your stock market trading risk dramatically increases the odds that you will win.
Stay focused on what you need to know and what you need to do to be successful trading the stock market online. Remember that money is just a by-product of wise trading methods and actions.
Few people who set out to get rich quick trading stocks online actually become rich. The small group of get-rich-quickers who do make lots of money fast do it purely as a result of chance. They rarely keep their trading gains for very long.
This is because trying to get rich quick causes stock traders to take on way too much risk. This is normally done by trading with excessive margin or by investing too much money in one position. Unfortunately, people who are in a hurry to make a lot of money trading online tend not to do a good job of managing risk.
Managing trading risk involves focusing more on the potential downside of a trade or investment than the potential upside. In practical terms this means using an objective stock market trading method designed to limit drawdowns in the value of your stock portfolio.
If you do a good job of managing risk you will almost certainly make money trading the stock market over the long-term. Those who consistently ignore risk and overload the wagons in an attempt to get rich quick are guaranteed failure.
For example, most traders with a get-rich-quick mindset don't realize that if they repeatedly bet everything on trades in which the probability of success is 90% they will eventually lose everything. Sure, they look like a genius for a while, but the one out of every ten trades that happens to be a 'loser' will wipe them out.
Bottom Line: Wall Street would have you believe that there is a direct correlation between the risk you take and the return you make. That is pure Market Myth. You don't have to increase your risk to crease your return.
Stock market trading online is a type of speculation where education and skill can dramatically improve your odds of winning. Risk management is a skill. Reducing your stock market trading risk dramatically increases the odds that you will win.
Stay focused on what you need to know and what you need to do to be successful trading the stock market online. Remember that money is just a by-product of wise trading methods and actions.
How To Draft A Perfect Trading Plan
How To Draft A Perfect Trading Plan
This 8-step approach to planning paves the way to profitable stock trading.When it comes to trading stocks, it's not about how hard you work. It's about knowing the right things to do, and putting that knowledge to work. Making money in the stock market isn't so hard when you apply a simple skill essential to converting the power of knowledge into profits ... planning!"Plan Your Trade and Trade Your Plan" is a mantra you should print out and frame for your wall. Why? Because stock traders who carefully plan have a much better chance of making money than those who don't. In fact, the simple act of drafting a plan can significantly increase the odds that your trade will be profitable.A successful trading plan doesn't have to be complicated. Many traders draft their trading plans in a notebook or on index cards, while others use word processors and spreadsheets. Regardless of the method you choose, every trading plan must include certain components to be effective
.1. Choose Your StyleBefore drafting a plan of action, traders will want to decide what style of trading they prefer. A broad generalization of "buy and sell stocks" doesn't work - the criteria needs to be specific. Successful traders make money in different ways, but each has a well-defined method. On the other hand, a losing trader's plan is always vague and ambiguous. In trading, it pays to be precise, so decide what you like to do and build your plan around that style.
2. Commit To Your Trading RulesThe best plans always include a set of solid rules that never get broken. These same rules should also address how real-time decisions will be made when managing your stock positions. Your judgment will improve as you gain experience, so it's good to allow some flexibility in less critical areas of your plan. At the same time, maintain strict rules in the more sensitive parts of your plan - such as Risk Control.
3. Determine Your Time FrameThe type of trading you prefer usually defines the time frame. Short term traders who enjoy a fast paced style won't find much action in weekly or monthly time frames, while less active traders generally find that the extremely short time horizons require too much time at the computer. Decide which style best suits your personality, and then select the corresponding time frame. It's usually a good idea to start by spending a few minutes each day. Begin by managing the trades using daily charts, then see if you want to shorten or lengthen the time frame. The RightLine Report offers a variety of stocks in different time frames. Due to the way these stocks are selected and the type of exit strategy used, most of the picks will work for traders who plan to hold positions anywhere from a few hours to a few weeks.
4. Locate The Best Stocks to TradeChoose a method to determine which stocks to trade. If you are experienced in the markets you probably already have a number of ideas and sources. To make it easier for our subscribers, the Right Line Report presents a wide variety of good stock choices in every issue. They are based on an assortment of trading strategies and tactics that take advantage of predictable market behaviors.You may also want to develop your own new methods for locating stocks. The RightLine educational section on our website at www.RightLine.net presents numerous market concepts to help traders understand the nature of price movement, identify trends in every time frame, and choose the tools needed to capture profits.
5. Determine Entry PointsThis can be a challenge, for there are almost as many different ways to determine entries, as there are stocks. Again, in an effort to make it easier for our subscribers, the Right Line Report presents specific entry points for every stock in each issue. The exact level to buy or sell short is based on a wide range of technical factors used by our analysts to reduce risk and optimize the potential gain. If you choose to select your own entry points, we provide a large assortment of articles to assist you in developing your own personal methods.
6. Use An Intelligent Method to Select the Number of Shares to TradeVery few traders and investors realize the importance of balanced "Position Sizing." Most make the mistake of ignoring the size of their trading account when taking on new positions. As a result, many unknowingly join the ranks of high-risk over-traders, and soon find themselves in big trouble. Don't worry, it's easy to avoid when you have the RightLine Risk Manager to help! This simple tool is free to subscribers, but if you prefer to do the math yourself, here are the basics:"Never risk more than 2% of your trading capital in a single trade or more than 6% of your capital at a time. For example, if you have $100,000 in your trading account, the most you should be willing to risk is $2,000. Before buying a stock, review the chart to locate the best place to put a stop loss order. If you determine that the stock requires 5-points to keep you in the trade while it is trending up, the maximum number of shares that you can afford is 400. ($2,000 maximum risk divided by 5-points = 400 shares.)"You can see that although doing the calculation isn't terribly hard, the Risk Manager makes the job a whole lot easier!
7. Determine Your Exit StrategyAfter you've entered a position in a stock and it starts moving, then what? Traders have a lot of different choices when it comes to exiting trades, and the method used can make a world of difference. Some traders routinely use "trailing" stops as their exit strategy of choice, while others choose to exit when the stock hits a certain price, or breaks through a support level, or approaches a resistance level. Other traders will choose to exit based on intra-day swings or expected news releases. When choosing an exit strategy, remember to plan not only for the upside, but the downside too. The exit strategy is one of the most important parts of any trading plan, and it is fundamental for traders to select an exit plan before entering a trade.
8. Manage Risk With StopsYou may already know, but a "stop" is an order to buy at a price above or sell at a price below the current market price. Stops, or stop orders, are used to protect our capital and lock in profits. Placing stops is easy, but locating the best place to put them can be quite challenging. To assist traders with stop placement, every stock entry in the RightLine Report includes a suggested stop level. And of course, we offer plenty of help on our website for anyone who wants to learn more about managing risk with stops.
********************
Trade Planning is one of the most important skills needed for successfully trading the stock market online. Make it your strength and enjoy the results!
This 8-step approach to planning paves the way to profitable stock trading.When it comes to trading stocks, it's not about how hard you work. It's about knowing the right things to do, and putting that knowledge to work. Making money in the stock market isn't so hard when you apply a simple skill essential to converting the power of knowledge into profits ... planning!"Plan Your Trade and Trade Your Plan" is a mantra you should print out and frame for your wall. Why? Because stock traders who carefully plan have a much better chance of making money than those who don't. In fact, the simple act of drafting a plan can significantly increase the odds that your trade will be profitable.A successful trading plan doesn't have to be complicated. Many traders draft their trading plans in a notebook or on index cards, while others use word processors and spreadsheets. Regardless of the method you choose, every trading plan must include certain components to be effective
.1. Choose Your StyleBefore drafting a plan of action, traders will want to decide what style of trading they prefer. A broad generalization of "buy and sell stocks" doesn't work - the criteria needs to be specific. Successful traders make money in different ways, but each has a well-defined method. On the other hand, a losing trader's plan is always vague and ambiguous. In trading, it pays to be precise, so decide what you like to do and build your plan around that style.
2. Commit To Your Trading RulesThe best plans always include a set of solid rules that never get broken. These same rules should also address how real-time decisions will be made when managing your stock positions. Your judgment will improve as you gain experience, so it's good to allow some flexibility in less critical areas of your plan. At the same time, maintain strict rules in the more sensitive parts of your plan - such as Risk Control.
3. Determine Your Time FrameThe type of trading you prefer usually defines the time frame. Short term traders who enjoy a fast paced style won't find much action in weekly or monthly time frames, while less active traders generally find that the extremely short time horizons require too much time at the computer. Decide which style best suits your personality, and then select the corresponding time frame. It's usually a good idea to start by spending a few minutes each day. Begin by managing the trades using daily charts, then see if you want to shorten or lengthen the time frame. The RightLine Report offers a variety of stocks in different time frames. Due to the way these stocks are selected and the type of exit strategy used, most of the picks will work for traders who plan to hold positions anywhere from a few hours to a few weeks.
4. Locate The Best Stocks to TradeChoose a method to determine which stocks to trade. If you are experienced in the markets you probably already have a number of ideas and sources. To make it easier for our subscribers, the Right Line Report presents a wide variety of good stock choices in every issue. They are based on an assortment of trading strategies and tactics that take advantage of predictable market behaviors.You may also want to develop your own new methods for locating stocks. The RightLine educational section on our website at www.RightLine.net presents numerous market concepts to help traders understand the nature of price movement, identify trends in every time frame, and choose the tools needed to capture profits.
5. Determine Entry PointsThis can be a challenge, for there are almost as many different ways to determine entries, as there are stocks. Again, in an effort to make it easier for our subscribers, the Right Line Report presents specific entry points for every stock in each issue. The exact level to buy or sell short is based on a wide range of technical factors used by our analysts to reduce risk and optimize the potential gain. If you choose to select your own entry points, we provide a large assortment of articles to assist you in developing your own personal methods.
6. Use An Intelligent Method to Select the Number of Shares to TradeVery few traders and investors realize the importance of balanced "Position Sizing." Most make the mistake of ignoring the size of their trading account when taking on new positions. As a result, many unknowingly join the ranks of high-risk over-traders, and soon find themselves in big trouble. Don't worry, it's easy to avoid when you have the RightLine Risk Manager to help! This simple tool is free to subscribers, but if you prefer to do the math yourself, here are the basics:"Never risk more than 2% of your trading capital in a single trade or more than 6% of your capital at a time. For example, if you have $100,000 in your trading account, the most you should be willing to risk is $2,000. Before buying a stock, review the chart to locate the best place to put a stop loss order. If you determine that the stock requires 5-points to keep you in the trade while it is trending up, the maximum number of shares that you can afford is 400. ($2,000 maximum risk divided by 5-points = 400 shares.)"You can see that although doing the calculation isn't terribly hard, the Risk Manager makes the job a whole lot easier!
7. Determine Your Exit StrategyAfter you've entered a position in a stock and it starts moving, then what? Traders have a lot of different choices when it comes to exiting trades, and the method used can make a world of difference. Some traders routinely use "trailing" stops as their exit strategy of choice, while others choose to exit when the stock hits a certain price, or breaks through a support level, or approaches a resistance level. Other traders will choose to exit based on intra-day swings or expected news releases. When choosing an exit strategy, remember to plan not only for the upside, but the downside too. The exit strategy is one of the most important parts of any trading plan, and it is fundamental for traders to select an exit plan before entering a trade.
8. Manage Risk With StopsYou may already know, but a "stop" is an order to buy at a price above or sell at a price below the current market price. Stops, or stop orders, are used to protect our capital and lock in profits. Placing stops is easy, but locating the best place to put them can be quite challenging. To assist traders with stop placement, every stock entry in the RightLine Report includes a suggested stop level. And of course, we offer plenty of help on our website for anyone who wants to learn more about managing risk with stops.
********************
Trade Planning is one of the most important skills needed for successfully trading the stock market online. Make it your strength and enjoy the results!
Nine Simple Rules for Trading Stocks Online
Nine Simple Rules for Trading Stocks Online
It's much easier to make money trading stocks when you know the rules ...Here are nine simple rules for online trading success.
1) Trade With The Trend. You can't change the weather, but you can set your sails to take advantage of whichever direction the market wind is blowing. Trade what you see, regardless of what you'd like to see
.2) Buy Strength, Sell Weakness. Stocks trading at 52-week highs usually go higher. Stocks trading at 52-week lows usually go lower.
3) Base Your Trading Decisions On Logic And Reason. Respect the power of your feelings to influence your behavior. Keep your emotions under control while trading.
4) Plan Every Trade. Trading blind is senseless. Know exactly what you will do if a stock goes up or down BEFORE you put money on the table.
5) Stick With An Online Trading Method You Have Confidence In. Realize that you don't have to be "right" on every trade. A few losers do not mean your trading system is defective.
6) Manage Online Trading Risk. Take small trading losses rather than let them become large losses. Never add to a losing position.
7) Keep A Trading Log. Even if you never use it for analyzing your trades, a journal provide a written reminder of your ability to stick with your trading plan. To boot, it's in your own handwriting, which can be pretty persuasive if self-doubt starts to creep in while you're in a trade.
8) Measure Your Results. You're trading online to make a profit. If your figures don't add up, stop putting money at risk until you know why your stock trading method isn't working.
9) Invest in your online trading education. The victory goes to the prepared, so prepare for success. Get good training and instruction. As the saying goes, "If you think education is expensive, try ignorance . . ."Trade Well!
It's much easier to make money trading stocks when you know the rules ...Here are nine simple rules for online trading success.
1) Trade With The Trend. You can't change the weather, but you can set your sails to take advantage of whichever direction the market wind is blowing. Trade what you see, regardless of what you'd like to see
.2) Buy Strength, Sell Weakness. Stocks trading at 52-week highs usually go higher. Stocks trading at 52-week lows usually go lower.
3) Base Your Trading Decisions On Logic And Reason. Respect the power of your feelings to influence your behavior. Keep your emotions under control while trading.
4) Plan Every Trade. Trading blind is senseless. Know exactly what you will do if a stock goes up or down BEFORE you put money on the table.
5) Stick With An Online Trading Method You Have Confidence In. Realize that you don't have to be "right" on every trade. A few losers do not mean your trading system is defective.
6) Manage Online Trading Risk. Take small trading losses rather than let them become large losses. Never add to a losing position.
7) Keep A Trading Log. Even if you never use it for analyzing your trades, a journal provide a written reminder of your ability to stick with your trading plan. To boot, it's in your own handwriting, which can be pretty persuasive if self-doubt starts to creep in while you're in a trade.
8) Measure Your Results. You're trading online to make a profit. If your figures don't add up, stop putting money at risk until you know why your stock trading method isn't working.
9) Invest in your online trading education. The victory goes to the prepared, so prepare for success. Get good training and instruction. As the saying goes, "If you think education is expensive, try ignorance . . ."Trade Well!
THE BRAND CALLED U!!!!!!
Every company has a reputation. Everyone you meet will form an opinion about your company, even if they have not done business with you yet. The challenge is to manage your reputation so that the opinion that people have of you is positive. This is what creates a brand.
Brands have a number of strategic functions, enabling you to:
Differentiate yourself from your competition;
Position your focused message in the hearts and minds of your target customers;
Persist and be consistent in your marketing efforts;
Customize your services to reflect your personal brand;
Deliver your message clearly and quickly;
Project credibility;
Strike an emotional chord;
Create strong user loyalty.
For small businesses, branding is not about slick advertisements. Small-business branding is about getting your target market to see you as the preferred choice. Building a slightly famous brand is not just about what you do; it’s about what you do differently from everyone else.
Building Your Brand
A brand is a promise of the value your clients will receive. In an amazingly complex and competing world - where it’s increasingly hard to know what’s real and what’s not - having your customers not only acknowledge but support the promise of your brand is the key to building a thriving business.
To become a brand, you’ve got to become relentlessly focused on what you do that adds value. Do you deliver your work on time, every time? Do you anticipate and solve problems before they become crises? Do your clients save money and headaches just by having you on the team? Do you complete projects within the allotted budget?
Branding integrates customer service, sales promotion, public relations, direct mail, newsletters, discounts, event sponsorship, word of mouth and other communications tactics to present a unified message about the company, its products or services.
Your brand will integrate all your marketing around a core idea and vision. As a result, you will find it easier to sell yourself, because your message will be uniform and powerful. Every business needs to evaluate its brand identity against the following criteria:
Relevance to the Market
A brand must stand for something that is meaningful to members of a target market. Your brand encompasses the total experience of doing business with you.
Consistency of Behavior
Customers must be able to depend on the brand to deliver the same experience every time. Because your market experiences your values through your brand, the only way they will truly become loyal to your brand is through your dedication and consistency.
Relationship-Building
A brand is not a logo or an advertising strategy. The strength of any brand is in the relationship it has between a company and its customers. The stronger the relationship, the more business they will do, and the more likely it is that customers will refer them to their friends and business associates.
Loyalty to the Customer is Returned
The test of a brand is, in fact, the strength of loyalty it generates. If you have a strong relationship with your target audience, then you have a strong brand and a strong business.
Reputation is Priceless
The only way to be successful in business is by establishing a good reputation, and a brand can help you do that. Your reputation works as your strongest marketer by communicating the relationship you have with people who’ve done business with you, and your target market in general.
Good brands stand the test of time. To develop a brand that will last a lifetime, go beyond what you do right now. Think long term. Look at Coke, Ford and General Electric. No matter what they sell or how they change over time, they can rely on their brand equity built on a foundation of customer trust to take them deep into their customer’s trust quotient and keep them there.
If you establish a place of trust and relevance in prospects’ minds, you’re already in the door. The more people believe in your brand, the more it will spread throughout your niche market without your pushing. If your brand is clear, distinctive, and easily understood, and expresses a unique, compelling benefit that people believe in, it will bring you all the business you can handle
Brands have a number of strategic functions, enabling you to:
Differentiate yourself from your competition;
Position your focused message in the hearts and minds of your target customers;
Persist and be consistent in your marketing efforts;
Customize your services to reflect your personal brand;
Deliver your message clearly and quickly;
Project credibility;
Strike an emotional chord;
Create strong user loyalty.
For small businesses, branding is not about slick advertisements. Small-business branding is about getting your target market to see you as the preferred choice. Building a slightly famous brand is not just about what you do; it’s about what you do differently from everyone else.
Building Your Brand
A brand is a promise of the value your clients will receive. In an amazingly complex and competing world - where it’s increasingly hard to know what’s real and what’s not - having your customers not only acknowledge but support the promise of your brand is the key to building a thriving business.
To become a brand, you’ve got to become relentlessly focused on what you do that adds value. Do you deliver your work on time, every time? Do you anticipate and solve problems before they become crises? Do your clients save money and headaches just by having you on the team? Do you complete projects within the allotted budget?
Branding integrates customer service, sales promotion, public relations, direct mail, newsletters, discounts, event sponsorship, word of mouth and other communications tactics to present a unified message about the company, its products or services.
Your brand will integrate all your marketing around a core idea and vision. As a result, you will find it easier to sell yourself, because your message will be uniform and powerful. Every business needs to evaluate its brand identity against the following criteria:
Relevance to the Market
A brand must stand for something that is meaningful to members of a target market. Your brand encompasses the total experience of doing business with you.
Consistency of Behavior
Customers must be able to depend on the brand to deliver the same experience every time. Because your market experiences your values through your brand, the only way they will truly become loyal to your brand is through your dedication and consistency.
Relationship-Building
A brand is not a logo or an advertising strategy. The strength of any brand is in the relationship it has between a company and its customers. The stronger the relationship, the more business they will do, and the more likely it is that customers will refer them to their friends and business associates.
Loyalty to the Customer is Returned
The test of a brand is, in fact, the strength of loyalty it generates. If you have a strong relationship with your target audience, then you have a strong brand and a strong business.
Reputation is Priceless
The only way to be successful in business is by establishing a good reputation, and a brand can help you do that. Your reputation works as your strongest marketer by communicating the relationship you have with people who’ve done business with you, and your target market in general.
Good brands stand the test of time. To develop a brand that will last a lifetime, go beyond what you do right now. Think long term. Look at Coke, Ford and General Electric. No matter what they sell or how they change over time, they can rely on their brand equity built on a foundation of customer trust to take them deep into their customer’s trust quotient and keep them there.
If you establish a place of trust and relevance in prospects’ minds, you’re already in the door. The more people believe in your brand, the more it will spread throughout your niche market without your pushing. If your brand is clear, distinctive, and easily understood, and expresses a unique, compelling benefit that people believe in, it will bring you all the business you can handle
Performance Evaluation Made Simple
Nobody much likes performance evaluation systems. Managers find them unworkable and uncomfortable. Workers dread them. And many experts think we should scrap them altogether.But if you’re a working manager you don’t get much choice. You’ve got to do performance evaluations on your people using the system your organization has in place.
You can make lemons from this lemonade, though. Here’s how.
Start by understanding that there are really two different things that go by the name, “performance evaluation.” One of those things is your organization’s formal performance appraisal process.
Do whatever you must to handle your organization’s evaluation system. You have to work with whatever system your organization has devised. Someday you may be able to change it, but not now. Devote your time and energy to making the system deliver good results.
But the formal system is only part of the story. Usually the evaluation that happens there is like a report card. It’s a summary judgment of performance that took place over a period of time.
The real evaluation happens in hundreds of encounters during everyday work. It’s what bosses should do several times a day as a key part of their job. Do evaluation every day. Then, use he formal evaluation meeting as an occasion to review and plan with your subordinates.
There should be no surprises. When you sit down at that formal meeting your subordinate shouldn’t be surprised by anything you have to say. You shouldn’t be surprised by your subordinate’s reactions. That will happen if you’ve already done the hard work in little steps every day.
Figure out what’s most important. What are the critical things that your subordinate should be able to do? What level of performance should he or she strive for? What behavior is important to keep the team functioning at top level? Once you know the answers to those questions, you know what to monitor and measure and adjust.
Use every contact as occasion to improve performance. That means every contact, every day. Show up a lot so you learn about your people and they get to learn about you. And every time you show up take the opportunity to coach, encourage, counsel and correct.
Give notice if you have to start documenting behavior. Most of the time, your suggestion to change behavior or performance will be informal. That means you won’t need to document. And most of the time your suggestion and coaching will result in improved behavior.
But sometimes you need to let folks know that they’re not doing well enough. If they keep doing what they’re doing, you’ll have to start documenting their behavior. Let them know before your start.
Then, if you must document, do a few things. Keep good records of the performance or behavior that you’re tracking. Be specific about what happened, when and where.
Keep good records of your counseling meetings with your subordinate. What did you say? What did he or she say? How did you agree that things would change?
Making small course corrections along the way has a couple of advantages. First, small corrections are far easier to make than big ones, so your odds of a successful outcome go up.
Second, by making small corrections and documenting your counsel and your subordinate’s behavior, you’ve got the issue on the table. When the time arrives for formal performance evaluation, your subordinate will know where he or she has come up short. And you’ll know what they’ve got to say about how they’re doing. No surprises.
Take enough time in the formal session. In one organization where I did research we compared the time that top supervisors devoted to the annual performance appraisal meeting to the time that other supervisors took. The top supervisors spent almost twice as long in the formal session as their less-effective peers.
But, if there weren’t any surprises, what did they spend time on? They talked about growth and the future. That’s more enjoyable and more productive than going over what did and didn’t happen since the last review.
Make agreements on what will happen next. Be sure you leave the formal performance evaluation session with a clear plan for how your subordinate will develop during the next period and what you’re going to do to help.
Set milestones for your agreements. Determine who will do what and what the deadlines are. Determine how performance should change.
Here’s what to remember. The performance evaluation that makes a difference takes place every day, every time you encounter someone who works for you. If you take every opportunity to coach, counsel, encourage and correct your people, and if you document where you must, there will be no surprises at evaluation time. Then you can use the evaluation time to help people grow and develop.
You can make lemons from this lemonade, though. Here’s how.
Start by understanding that there are really two different things that go by the name, “performance evaluation.” One of those things is your organization’s formal performance appraisal process.
Do whatever you must to handle your organization’s evaluation system. You have to work with whatever system your organization has devised. Someday you may be able to change it, but not now. Devote your time and energy to making the system deliver good results.
But the formal system is only part of the story. Usually the evaluation that happens there is like a report card. It’s a summary judgment of performance that took place over a period of time.
The real evaluation happens in hundreds of encounters during everyday work. It’s what bosses should do several times a day as a key part of their job. Do evaluation every day. Then, use he formal evaluation meeting as an occasion to review and plan with your subordinates.
There should be no surprises. When you sit down at that formal meeting your subordinate shouldn’t be surprised by anything you have to say. You shouldn’t be surprised by your subordinate’s reactions. That will happen if you’ve already done the hard work in little steps every day.
Figure out what’s most important. What are the critical things that your subordinate should be able to do? What level of performance should he or she strive for? What behavior is important to keep the team functioning at top level? Once you know the answers to those questions, you know what to monitor and measure and adjust.
Use every contact as occasion to improve performance. That means every contact, every day. Show up a lot so you learn about your people and they get to learn about you. And every time you show up take the opportunity to coach, encourage, counsel and correct.
Give notice if you have to start documenting behavior. Most of the time, your suggestion to change behavior or performance will be informal. That means you won’t need to document. And most of the time your suggestion and coaching will result in improved behavior.
But sometimes you need to let folks know that they’re not doing well enough. If they keep doing what they’re doing, you’ll have to start documenting their behavior. Let them know before your start.
Then, if you must document, do a few things. Keep good records of the performance or behavior that you’re tracking. Be specific about what happened, when and where.
Keep good records of your counseling meetings with your subordinate. What did you say? What did he or she say? How did you agree that things would change?
Making small course corrections along the way has a couple of advantages. First, small corrections are far easier to make than big ones, so your odds of a successful outcome go up.
Second, by making small corrections and documenting your counsel and your subordinate’s behavior, you’ve got the issue on the table. When the time arrives for formal performance evaluation, your subordinate will know where he or she has come up short. And you’ll know what they’ve got to say about how they’re doing. No surprises.
Take enough time in the formal session. In one organization where I did research we compared the time that top supervisors devoted to the annual performance appraisal meeting to the time that other supervisors took. The top supervisors spent almost twice as long in the formal session as their less-effective peers.
But, if there weren’t any surprises, what did they spend time on? They talked about growth and the future. That’s more enjoyable and more productive than going over what did and didn’t happen since the last review.
Make agreements on what will happen next. Be sure you leave the formal performance evaluation session with a clear plan for how your subordinate will develop during the next period and what you’re going to do to help.
Set milestones for your agreements. Determine who will do what and what the deadlines are. Determine how performance should change.
Here’s what to remember. The performance evaluation that makes a difference takes place every day, every time you encounter someone who works for you. If you take every opportunity to coach, counsel, encourage and correct your people, and if you document where you must, there will be no surprises at evaluation time. Then you can use the evaluation time to help people grow and develop.
Easy Meditation and Yoga to improve Concentration
Turning To Meditation And Yoga to Improve ConcentrationThe biggest obstacle faced today by the students while studying is lack of concentration and attentiveness. Almost all of us have such a fast-moving life, that we hardly have the time to stop, think and take a break. As result, our thinking as well actions becomes a complicated labyrinth. For instance, while studying you may be thinking about where you will go during in this summer vacation. This happens so because when you do not have time to stop and are continuously flocked with ideas, you began to think unnecessary and irrelevant things at necessary situation and your mind begins to lose continuity. In order to cope up with this problem of lack of concentration and a condition of chaos in our mind we need to relax, take deep breathing and do some meditation. It also helps us to improve our concentration. Here are some of the exercises to do meditation and achieve concentration:The first thing necessary in order to do meditation would be to find an isolated place where you won't be disturbed for the next 20-30 minutes.
EXERCISE 1First of all have a comfortable spot to sit which is neither too soft, nor too hard. Sit down in a normal position, legs crossed, and take some deep breathing. Try to do that a couple of times. Now, close your eyes. Then count backwards from 100 to 0, very slowly. You must focus on every number you count. While counting a particular number, say 79, your concentration should be only on that number. When counting 79, don’t think of 78 or 80. Likewise, when counting 78, don't think of the previous or next number.It is hard, in the beginning. You would be surrounded by many thoughts, like what you are wearing, what you ate, what time it is, is it cold or hot, etc. but you must try to focus only on the number you are currently counting. Nothing else should be there in your mind. Initially, you can also start from level like from 50 or 30 and then move on to 100. With each count, take a deep breathing. Feel that energy is evolving from your navel and spreading to the rest of the parts of the body. Feel as if the blockades in your body are being removed by this spreading aura. While all this is happening ensure that you do not lose focus. Your mind should be in your control.
EXERCISE 2
Take a comfortable meditation posture, one of the postures as described above in EXERCISE 1. Close your eyes and relax all muscles in your body, including the face. Few alternate nostril yoga breaths are very helpful at the beginning of this stage - breathing in through one nostril and breathing out through another, closing nostrils with fingers and altering closed nostril with each breath. Disregard any thought when they come to your mind. Continue this for 10-20 minutes. You can use a mental sound "ooooohhmmm" (a mantra) every time you have a thought. Alternatively you may keep counting thoughts, discarding each one as it comes, without analyzing it. When you go down to 2 or 3 thoughts in 5 minutes, you meditate successfully.
YOGA TO IMPROVE CONCENTRATION
Like meditation, Yogasanas are also very helpful in improving concentration. There are 2 yogasanas, which are specifically meant to improve concentration.1) VRIKSHA-ASANA• Stand straight with your legs together• Bend one leg and bring the foot to rest on the inner thigh, close to the groin.• Maintain balance by focusing on a point in front of you and raise your arms to the sides.• Raise your arms, keep them straight, and your palms joined• Hold for 10-30 seconds• Then, repeat with other leg.2) GARUDA-ASANA• In the standing position, slightly bend the left knee, take your right leg and twist it around the left leg, as shown• Bend the elbows, twist your right forearm around your left arm and bring your palms together, as shown• Keep your eyes focused on a fixed point and slowly bend the left knee a little more• Hold for 10-30 seconds• Then, repeat with other leg.Try to practice these meditation and yoga exercises for a week and you will notice that you’re able to control your thoughts and your concentration level has increased.
EXERCISE 1First of all have a comfortable spot to sit which is neither too soft, nor too hard. Sit down in a normal position, legs crossed, and take some deep breathing. Try to do that a couple of times. Now, close your eyes. Then count backwards from 100 to 0, very slowly. You must focus on every number you count. While counting a particular number, say 79, your concentration should be only on that number. When counting 79, don’t think of 78 or 80. Likewise, when counting 78, don't think of the previous or next number.It is hard, in the beginning. You would be surrounded by many thoughts, like what you are wearing, what you ate, what time it is, is it cold or hot, etc. but you must try to focus only on the number you are currently counting. Nothing else should be there in your mind. Initially, you can also start from level like from 50 or 30 and then move on to 100. With each count, take a deep breathing. Feel that energy is evolving from your navel and spreading to the rest of the parts of the body. Feel as if the blockades in your body are being removed by this spreading aura. While all this is happening ensure that you do not lose focus. Your mind should be in your control.
EXERCISE 2
Take a comfortable meditation posture, one of the postures as described above in EXERCISE 1. Close your eyes and relax all muscles in your body, including the face. Few alternate nostril yoga breaths are very helpful at the beginning of this stage - breathing in through one nostril and breathing out through another, closing nostrils with fingers and altering closed nostril with each breath. Disregard any thought when they come to your mind. Continue this for 10-20 minutes. You can use a mental sound "ooooohhmmm" (a mantra) every time you have a thought. Alternatively you may keep counting thoughts, discarding each one as it comes, without analyzing it. When you go down to 2 or 3 thoughts in 5 minutes, you meditate successfully.
YOGA TO IMPROVE CONCENTRATION
Like meditation, Yogasanas are also very helpful in improving concentration. There are 2 yogasanas, which are specifically meant to improve concentration.1) VRIKSHA-ASANA• Stand straight with your legs together• Bend one leg and bring the foot to rest on the inner thigh, close to the groin.• Maintain balance by focusing on a point in front of you and raise your arms to the sides.• Raise your arms, keep them straight, and your palms joined• Hold for 10-30 seconds• Then, repeat with other leg.2) GARUDA-ASANA• In the standing position, slightly bend the left knee, take your right leg and twist it around the left leg, as shown• Bend the elbows, twist your right forearm around your left arm and bring your palms together, as shown• Keep your eyes focused on a fixed point and slowly bend the left knee a little more• Hold for 10-30 seconds• Then, repeat with other leg.Try to practice these meditation and yoga exercises for a week and you will notice that you’re able to control your thoughts and your concentration level has increased.
15 Things about online Search Giant "GOOGLE"
Google is part of Net surfers’ everyday life. It is in fact difficult to imagine life without Google, the search engine company that is now as revered as the mighty software giant Microsoft, if not more. But there are a number of things about Google that few people know about.Here is a list of 15 such very interesting things about the search giant.
(1) The name Google is a spelling error. The founders of the site, Larry page and Sergey Brin, thought they were going for 'Googol.' Googol is the mathematical term for 1 followed by 100 zeros. The term was coined by Milton Sirotta, nephew of American mathematician Edward Kasner, and was popularized in the book, “Mathematics and the Imagination” by Edward Kasner and James Newman. Google's play on the term reflects the company's mission to organize the immense amount of information available on the net.
(2) Initially, Larry and Sergey Brin called their search engine BackRub, named for its analysis of the of the web's "back links." The search for a new name began in 1997, with Larry and his officemates starting a hunt for a number of possible new names for the rapidly improving search technology.
(3) The reason the Google’s page is so bare is because the founder didn’t know HTML and just wanted a quick interface. Due to the sparseness of the homepage, in early user tests they noted people just kept sitting staring at the screen, waiting for the rest to appear. To solve the particular problem the Google Copyright message was inserted to act as an end of page marker.
(4) Google started as a research project by Larry page and Sergey Brin when they were 24 and 23 years respectively. Google's mission statement is to organize the world’s information and make it universally accessible and useful. The company’s first office was in a garage, in Menlo Park, California. Google’s first employee was Craig Silverstein, now Google's director of Technology
(5) The basis of Google's search technology is called PageRank that assigns an "importance" value to each page on the web and gives it a rank to determine how useful it is. However, that is not why it is called PageRank. It is actually named after Google co-founder Larry Page.
(6) Google receives about 20 million search queries each day from every part of the world, including Antarctica and Vatican.
(7) You can have the Google homepage set up in as many as 116 different languages -- including Urdu, Latin, Cambodia, Tonga, and Yoruba. In fact, Google has the largest network translators in the world.
(8) In the earliest stage of Google, there was no submit button, rather the Enter key needed to be pressed.
(9) Google has banned computer-generated search requests, which can sop up substantial system resources and help unscrupulous marketers manipulate its search rankings.
(10) The Google’s free web mail service Gmail was used internally for nearly two years prior to launch to the public. The researchers found out six types of email users, and Gmail has been designed to accommodate these six. The free e-mail service recently changed its name for new UK users. Following a trademark dispute with a London-based Independent International Investment Research, the mail account has been renamed Google Mail.
(11) It would take 5,707 years for a person to search Google's 3 billion pages. The Google software does it in 0.5 seconds
.(12) Google Groups comprises more than 845 million Usenet messages, which is the world's largest collection of messages or the equivalent of more than a terabyte of human conversation.
(13) The logos that appear on the Google homepage during noteworthy days and dates and important events are called Google Doodle. The company has also created an online museum where it has all the logos it has put on various occasions so far. Dennis Hwang, a Korean computer artist in the United States, is the guy behind these witty Doodles. Hwang has been drawing the face of Google for over two years.
(14) You have heard of Google Earth, but not many know there is a site called Google Moon, which maps the Lunar surface. Google Moon is an extension of Google Maps and Google Earth that, courtesy of NASA imagery, enables you to surf the Moon’s surface and check out the exact spots that the Apollo astronauts made their landings.
(15) Keyhole, the satellite imaging company that Google acquired in October 2004 was funded by CIA. Keyhole's technology runs Google's popular program Google Earth that allows users to quickly view stored satellite images from all around the world.
(1) The name Google is a spelling error. The founders of the site, Larry page and Sergey Brin, thought they were going for 'Googol.' Googol is the mathematical term for 1 followed by 100 zeros. The term was coined by Milton Sirotta, nephew of American mathematician Edward Kasner, and was popularized in the book, “Mathematics and the Imagination” by Edward Kasner and James Newman. Google's play on the term reflects the company's mission to organize the immense amount of information available on the net.
(2) Initially, Larry and Sergey Brin called their search engine BackRub, named for its analysis of the of the web's "back links." The search for a new name began in 1997, with Larry and his officemates starting a hunt for a number of possible new names for the rapidly improving search technology.
(3) The reason the Google’s page is so bare is because the founder didn’t know HTML and just wanted a quick interface. Due to the sparseness of the homepage, in early user tests they noted people just kept sitting staring at the screen, waiting for the rest to appear. To solve the particular problem the Google Copyright message was inserted to act as an end of page marker.
(4) Google started as a research project by Larry page and Sergey Brin when they were 24 and 23 years respectively. Google's mission statement is to organize the world’s information and make it universally accessible and useful. The company’s first office was in a garage, in Menlo Park, California. Google’s first employee was Craig Silverstein, now Google's director of Technology
(5) The basis of Google's search technology is called PageRank that assigns an "importance" value to each page on the web and gives it a rank to determine how useful it is. However, that is not why it is called PageRank. It is actually named after Google co-founder Larry Page.
(6) Google receives about 20 million search queries each day from every part of the world, including Antarctica and Vatican.
(7) You can have the Google homepage set up in as many as 116 different languages -- including Urdu, Latin, Cambodia, Tonga, and Yoruba. In fact, Google has the largest network translators in the world.
(8) In the earliest stage of Google, there was no submit button, rather the Enter key needed to be pressed.
(9) Google has banned computer-generated search requests, which can sop up substantial system resources and help unscrupulous marketers manipulate its search rankings.
(10) The Google’s free web mail service Gmail was used internally for nearly two years prior to launch to the public. The researchers found out six types of email users, and Gmail has been designed to accommodate these six. The free e-mail service recently changed its name for new UK users. Following a trademark dispute with a London-based Independent International Investment Research, the mail account has been renamed Google Mail.
(11) It would take 5,707 years for a person to search Google's 3 billion pages. The Google software does it in 0.5 seconds
.(12) Google Groups comprises more than 845 million Usenet messages, which is the world's largest collection of messages or the equivalent of more than a terabyte of human conversation.
(13) The logos that appear on the Google homepage during noteworthy days and dates and important events are called Google Doodle. The company has also created an online museum where it has all the logos it has put on various occasions so far. Dennis Hwang, a Korean computer artist in the United States, is the guy behind these witty Doodles. Hwang has been drawing the face of Google for over two years.
(14) You have heard of Google Earth, but not many know there is a site called Google Moon, which maps the Lunar surface. Google Moon is an extension of Google Maps and Google Earth that, courtesy of NASA imagery, enables you to surf the Moon’s surface and check out the exact spots that the Apollo astronauts made their landings.
(15) Keyhole, the satellite imaging company that Google acquired in October 2004 was funded by CIA. Keyhole's technology runs Google's popular program Google Earth that allows users to quickly view stored satellite images from all around the world.
Chanakya quotes (Indian politician, strategist and writer, 350 BC 75 BC)
Chanakya quotes (Indian politician, strategist and writer, 350 BC 75 BC)
• "A person should not be too honest. Straight trees are cut first and Honest people are victimised first."
• "Even if a snake is not poisonous, it should pretend to be venomous."
• "The biggest guru-mantra is: Never share your secrets with anybody! It will destroy you."
• "There is some self-interest behind every friendship. There is no Friendship without self-interests. This is a bitter truth."
• "Before you start some work, always ask yourself three questions - Why am I doing it, What the results might be and Will I be successful. Only when you think deeply and find satisfactory answers to these questions, go ahead."
• "As soon as the fear approaches near, attack and destroy it."• "Once you start a working on something, don't be afraid of failure and don't abandon it. People who work sincerely are the happiest."
• "The fragrance of flowers spreads only in the direction of the wind. But the goodness of a person spreads in all direction."
• "A man is great by deeds, not by birth." "Treat your kid like a darling for the first five years. For the next five years, scold them. By the time they turn sixteen, treat them like a friend. Your grown up children are your best friends.
"• "Books are as useful to a stupid person as a mirror is useful to a blind person."
• "Education is the best friend. An educated person is respected everywhere. Education beats the beauty and the youth."
• "A person should not be too honest. Straight trees are cut first and Honest people are victimised first."
• "Even if a snake is not poisonous, it should pretend to be venomous."
• "The biggest guru-mantra is: Never share your secrets with anybody! It will destroy you."
• "There is some self-interest behind every friendship. There is no Friendship without self-interests. This is a bitter truth."
• "Before you start some work, always ask yourself three questions - Why am I doing it, What the results might be and Will I be successful. Only when you think deeply and find satisfactory answers to these questions, go ahead."
• "As soon as the fear approaches near, attack and destroy it."• "Once you start a working on something, don't be afraid of failure and don't abandon it. People who work sincerely are the happiest."
• "The fragrance of flowers spreads only in the direction of the wind. But the goodness of a person spreads in all direction."
• "A man is great by deeds, not by birth." "Treat your kid like a darling for the first five years. For the next five years, scold them. By the time they turn sixteen, treat them like a friend. Your grown up children are your best friends.
"• "Books are as useful to a stupid person as a mirror is useful to a blind person."
• "Education is the best friend. An educated person is respected everywhere. Education beats the beauty and the youth."
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