16 Jan 2012

Day Trading:Hidden Rules.

                             Large number of people wish to become successful in day trading.Unfortunately,most of them taste failures and losing their hard earned money.Few years ago,a friend of mine created 10 times profit in single day.Amazing!All other traders in his circle get motivated and concentrated in day trading.But,their trading  story ended as tragedy.Why some one succeed and others fail?let us examine the hidden rules of day trading.
 Here,my friend's gain was accidental.He has bought few option contracts on the basis of some news and it was speculative in nature.Other friends have blindly expected this fortune in life and it was their biggest mistake.Day trading will not provide huge profits continuously.But,you can earn a decent return if following the below rules. 
1.Try to make small profits.It is not a difficult task.but,you should have enough capital and time.
2.Watch stock market indices and understand the trend.Trade with the trend.Not following the trend is like swimming against the tsunami waves.You cannot conquer the market.
3.Market represents mass psychology.so,don't be greedy or panic in sudden market situations.
4.Fix small profit targets.
5.Use stoploss orders to prevent market crash.Stoploss point should be lower than the profit target.
6.When you trade intraday,do not engage in other activity.Mental control is crucial for day trading success.
7.You need tools such as online trading platform and a charting software.Candlestick charts with Moving averages,RSI or MACD are sufficient.
8.Understand the trendlines.Get an idea about support and resistance levels.Fix your profit targets at resistance levels.
9.Trade in futures and options.Shares are less volatile and its' profit potential is low in a day.You can opt shares for investing.But,futures and options provide comparatively better movement and trading opportunity.
10.Don't trade in sideways markets.It is useless and time consuming.You can make profit if positive or negative trend  is clear in the market.                    

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6 Jan 2012

Why you need a Personal Financial Advisor?

                Financial service sector is very vast and complicated.Banks,Insurance companies,Stock brokers and NBFCs are offering large number of financial products.Which are best suited for our finncial goals and needs?Is there any hidden charges?Each person is expecting optimum satisfaction.But,often result end in diappointment.Why?because,you are not having a good financial advisor.        
   We are spending a lot of time for shopping,movies,travelling and other entertainments.Bills may be paid by debit card or credit card of yourself .Ok,what's about future?Having enough fund for Childrens higher eduction,Marriage,Buying a new car or property..etc?Still,you are not started to save for retirement corpus?If so,you need a Financial advisor.
       A professional financial advisor can assess your netwoth and prepare personal financial report.It will show you the real picture.You can select a term assrance plan after understanding your human life value.This is a great precaution against unexpected happenings.It will safeguard your dear ones.Another important thing, you need  an emergency fund of at least 3 months total expenditure.Otherwise,you cannot manage unforeseen financial calamity in any form.Rising Medical bills are reminding us about the importance of adequate Health insurance.Still now, 2008 world recession is existing even after the collapse of many banks;so you need secure savings deposits.
              Some new  business areas may grow or  boom in near future.Think about amazing rise shown by Google,facebook,Amazon and Apple.In India,Wipro created value in millions for it's shareholders.Warren Buffet,Peter Lynch ,Ambani ,Rakesh junjunwala etc .......No investors are built in a day.Asset allocation and Portfolio preparation is not an easy job.You may be in trouble by investing at wrong avenues.
           All these things are crucial for achieving financial freedom in life. So,find a Practising and Fee based Personal financial advisor .
Get  unbiased advice and cut down your unnecessary expenditure.
Finally,  formulate your own financial plan and execute it for better future.         
          

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2 Jan 2012

Professional Online trading.


ors make hurdles and spoil their confidence.
  How can make money from online trading? I think, this is the game of your subconscious mind.  Successful Investors such as Warren buffet and Peter lynch used value investing or bottom fishing.Means,they bought stocks at cheap price and got benefits such as dividend,bonus and capital appreciation.However,the case of a common trader is completely different.As per a survey at United states,only 12 % traders make profit.Why?Is it a high risky business?Yes.Trading is not video game of kids.It needs patience,professionalism and continuity.
      Following things are important for success as professional trader.
       1. Start small.Margin is not  luxury.Fix your quantity and lot size first.
       2. Be disciplined;never change trade size.
       3.Book your profit always.Be happy with small targets.Don't be greedy or panic.
       4.Practice stop loss orders.Accept small losses for protecting from unexpected  huge crashes.
       5.Control your emotions.Over trading is mental illness and slavery.
     Trading success arise from Mind power.Because.Market trend is the result of mass p`sychology.Good traders never cheated by the blinking at trading platforms.They use Charting softwares and apply their common sense.Practical wisdom,timing and fast actions are crucial than indicators and patterns.Practice make perfect!


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