Saturday, October 29, 2005

Stocks that will fall further

The markets have been on a continuous fall since the past few trading sessions. There are some Stocks that will fall further in case of a further downfall in the markets as per Technical analysts.

Analysts say when stocks like Satyam, Reliance and ITC will be hammered down, that may be the signal that the markets may be heading toward some sort of bottom. Tisco and SRF are stocks whic will fall incase the markets fall

Monday, October 24, 2005

John Bogle

John Bogle on Investing--Click To Buy

Born:Montclair, New Jersey in 1929.

Most Famous For:Often referred to as the father of index fund investing, he's the creator of the first S&P 500 index fund.

Quote:"If you have trouble imagining a 20% loss in the stock market, you shouldn't be in stocks."

Bogle is considered a pioneer in the mutual fund industry. He introduced the first S&P 500 index fund ever - the Vanguard 500 Index - which debuted in 1976. On countless occasions, he has stated that investors shouldn't be so worried about trying to beat the markets and should join the markets instead. His index funds were characterized as low cost and low maintenance and allowed several millions of investors to participate in the greatest bull market ever.

He rejects "today's emphasis on witchcraft and mystery" in investing, and supports a "back to basics" strategy. In his opinion, these are the investment principles which have proven to be successful for over 75 years.

Book: John Bogle on Investing: The First 50 Years Click Below to Buy.

John Bogle on Investing--Click To Buy

IPO- Prithvi Information Solutions Ltd

Issue Opens-25 October, 2005
Issue Closes-28 October, 2005
Issue Size : 4,550,000 (No. of Shares)

Price Bands

Lower Price Band Rs.250 and Upper Price Band Rs.270.

Application Multiple: 25 and in multiples there off starting with atleast 25 shares.
Maximum Shares 350 (for Retail).

Information URL : »
For queries email :
Contact Details : 914055846019 /914055846021 (fax)

Recommendation: Apply Aggresively.

Does It happen to you always?

You buy and price falls,you sell and price rises

common investor problem!!

"I bought "XYZ Company" at Rs.2200 and immediately after I bought the price dropped to Rs.2000." I feel sad.
Another comes with a different version "I sold "XYZ Company" at Rs.2000 and it went up to Rs.2400 same evening"I made an imaginary loss of Rs.400 per share.


You can buy more shares @ Rs.2000 and reduce your overall buying cost. This has to be done only if believe in the fundamentals,management and the future prospects of the company.

To do this you need to keep money ready.whatever money you have and want to invest,make it two parts.
Then keep one 50% cash aside, only invest with other 50%.So if need ot buy more any stock when the price falls
you have ready cash.

Also now if you have 200 shares of XYZ Company 100@Rs.2200 abd 100@Rs.2000.Then the price goes up to Rs.2400. Sell only 100 of the shares.Then if the price further shot up, you have some shares to sell
And participate in the rally to make money.

Infrastructure companies have outperformed the market.

Infrastructure companies have outperformed the market in over last three years and they are also less volatile. This is proven by the study carried out on the sensex companies, which can be classified as belonging to the infrastructure sectors like Power, telecom, steel, cement and construction etc.

The Infrastructure index comprises of the following companies:

1. ACC
3. Bharti
4. Grasim
5. Gujrat Ambuja
6. HDFC Ltd.
7. HDFC bank
8. SBI
9. ICICI Bank
10. Hindalco
11. Reliance Energy
12. TATA Power
13. ONGC

From June- 02 to June- 05 Teh BSE Sensex has grown 122% whereas the Infrastructure Index has grown 192%.

Parachute Investing

Ever jumped out of an airplane? It’s OK if you have on a parachute. Pretty dumb if you don’t.

Parachute investing is buying an equity with a parachute so you won’t risk all your money or, better yet, give back the profit you have made as the stock or fund went up and then goes down. If you bought that hummer at Rs.100 per share and during the past couple of years seen it go up to Rs.500 you don’t want to give back that nice profit, do you? With a parachute you can save most of it. How?

When you invest in any stock you must know how much you will risk before you buy it and how much of the profit you are willing to give back when it turns down. Take that beauty at Rs.100. Instead of going up it went down. Are you willing to agonize as it drops to Rs.50? If you had a parachute you would have jumped out of the plane before it crashed. If you had an exit strategy for your stock you would have sold it before you lost a big chunk of your cash.

The secret of a safe investment is an exit strategy. When you bought Mr. Hundred Rupees you shook hands and told him I’d like to be your friend, but if you change your name to Ninety Rupees I am leaving. Maybe that that is not very nice, but nice doesn’t cut it in the investment world.

Mr. Hundred Rupees said I am going up and I want you to be my friend. Please follow me and if I falter you can leave and we will part friends. Now that makes sense. You trail along and after it goes to Rs.500 it does falter. Do you know where you are going to leave or are you going to ride it go back down to Rs.100? In other words do you have your parachute on?

That parachute is your continuing exit strategy that is in place every day. In the investment community it is called an open trailing stop loss order. Any broker can put this in place for you. You might be lucky enough to have a broker who knows where to place stops, but unfortunately there are not many of them.

The brokerage industry does not teach its employees (brokers) how to protect customers’ money. If that is the case you might want to use the old standard 10% rule. Have the broker place an open stop every Friday at 10% of the closing price of that day as it closes higher. Never lower the stop loss. Brokers hate this as it makes them work, but that is what they are there for and that is how they earn their commissions.

With your parachute you can always protect your original cash purchase from a big loss and as your stock advances you can lock in profit as the stock advances.

Every investment should have a parachute.

George Soros

The Alchemy of Finance

Born: Budapest, Hungary on August 12, 1930.

Most Famous For:In 1992, Quantum Funds made $1 billion in less than a week by shorting British pounds and buying German marks. This feat earned Soros the title of "the Man Who Broke the Bank of England".

Quote:"It's not whether you're right or wrong that's important, but how much money you make when you're right and how much you lose when you're wrong."

Known as a hedge fund guru, Soros' expertise is mainly in currency speculation. He is principal investment advisor for the Quantum Fund, which is recognized for having the best performance record of any investment fund in the world over its 26-year history. If you invested $100,000 in 1969 when Soros established the Quantum Fund and reinvested all dividends, your investment would have been worth over $150 million by the spring of 1994. At one point, analysts estimated Soros was earning over $4000 a minute.

Book: The Alchemy of Finance (Wiley Investment Classics) by George SorosClick Below to Buy.

The Alchemy of Finance