Tuesday, December 13, 2005

Learn to Trade Stock Properly

The ebook "Traders Secret Code" Click Here, Check it out! Shows How do you become a trading genius that effortlessly makes one great trade after another.

In a volatile market such as stock trading
, learning how to trade stock is crucial, there is no Fool proff way of continually posting growths in profits for any investor time and again.This is statistically impossible.

This is because of the unpredictability of the market. The lack of an accurate prediction tools and the lack of a consistent trend for any stock only compounds the problem.

The greatest myth about how to trade stock successfully is the need for the investor to be able to predict the stock market’s movements. People incorrectly assume that stocks bounce around the range forever and therefore they must be able to predict a trend in the movement in order buy stocks during their lowest value and sell them at their highest peaks.This is grossly incorrect.The best way to make money in the stock market is to avoid approaches that rely on stock market predictions.

If you look at it, a conscious action of predicting the market is no better than buying a stock and holding on to it for a long period.

The reason behind this is because there is simply no way to predict stock performance. There is no person who can accurately predict stock movement consistently, all of the time.

An analyst may be able to predict a stock’s performance in the immediate future but rarely in the long term. The analyst may predict next quarter’s performance, or even for the entire year. But it is statistically impossible to predict stock movement correctly quarter after quarter, year after year.

A good way to learn how to trade stock is to formulate your own strategy. Consider the following:
Take time to do a careful evaluation of the history of a stock’s performance.Keep up with the latest news and stock market reports.Study the structure of successful mutual funds to see how their investment strategy is done. You can choose these funds to choose the best they are composed of and build your own portfolio from them.

It is best to invest in a stock that has good dividend and growth.Invest in stocks that have a history of progressive gain.Evaluate the type of sector your company deals with.

Again, there is no specific and proven strategy that consistently reaps profit for any investor. Stocks are volatile and any strategy that proves reliable today may prove entirely worthless tomorrow.

The best way is to study several stocks and consider them as long-term investments. These may take you longer before you post any profit, but it beats putting all of your eggs in one basket.

The ebook "Traders Secret Code" Click Here, Check it out! Shows How do you become a trading genius that effortlessly makes one great trade after another.


Resource: (www.ezinearticles.com)
how-to-trade-stock

Sensex zooms past 9000

After moving in and out of positive zones in morning deals, the index took-off by noon, and then there was no looking back. The Nifty gained 36 points to close above 2800.BSE clocked a turnover of Rs 3,731 crore compared to Monday’s Rs 3,522 crore.The 30-share BSE Sensex jumped 130.23 points to a lifetime closing high of 9,263.90. The S&P CNX Nifty rose 36.10 points or 1.3% an all time closing peak of 2,812.30

Market sentiment was boosted due to reports that the government intends to raise at least Rs 4,000 crore from PSU divestment. The government intends to raise about Rs 4,000 crore to Rs 5,000 crore from PSU divestment and it has identified 10 to 15 PSUs including National Aluminium Company, Shipping Corporation of India, BSNL, Power Finance Corporation, and Powergrid, for the purpose.

Meanwhile, an economic think tank today upgraded its FY 2006 GDP growth forecast to 7.6% from the earlier projected 6.8% following strong growth in the services sector.

With today’s rise, the Sensex has gained 357.59 points or 4% in the past three trading sessions to the current 9,263.90 from a recent low of 8,906.31 on 8 December 2005. On 9 December, the Sensex had surged 161 points in a single trading session boosted by the Bombay High Court's clearing private sector giant Reliance Industries' (RIL) demerger proposal.

Market sentiment remains good due to expectation of a excellent earnings and economic growth. There are hopes that the solid economic growth in India will transform into decent earnings growth for corporate sector. India's GDP grew 8% in Q2 Sep 2005 compared with the same period a year earlier led by strong output in services and manufacturing sectors.