Bullet Advisory Indian Stocks Weekly-indian Market Wait for Economic Bail Out Package

SE Sensex (8965.20) and Nifty (2714.40) closed 1.4% and 1.5% down last week.Nifty put-call ratio was 0.77.Support for Sensex is 8520 and for Nifty 2580.Resistance for Sensex is 9380 and Nifty is at 2840.Inflation was also under control 8.40 v/s 8.84 last week.Crude oil was at 43$.Market recovered from low levels on hopes of Repo and Reverse Repo cut by Reserve Bank Of India.Positive statement by Mr. Subbarao, Governer Reserve Bank Of India that fundamentals of Indian economy are strong and have minimal impact of global meltdown. prevented free fall in the market .Easing liquidity since mid November and steps to stimulate the economy some measures will be taken on Saturday 6th December also lended some support to the market.Late Friday evening Government reduced the price of petrol by 5 Rs/litre and diesel by 2 Rs/litre following reduced crude prices in international markets.NSE has announced to increase the lot sizes of Future & Option Stocks since value of most stocks has reduced drastically.DEFTY will also strat trading in the month of December which will help liquidity and increase the volumes.DEFTY is a NIFTY in Dollar term which will help FII’s to hedge NIFTY in dollar term. Selling of FII was visible..Nifty 2600 put added open interest.Tata Motors and ONGC added open interest.Reliance and L&T lost open interest.

Strategy for Future Option players.

Future Option na kheladio mate

1)RPL(72.50) Lot Size-1675 Shares.

Buy one call option of December month strike price 70@5.45 Rs.

Sell one call option of December month strike price 75@3.00 Rs.

Premium Paid=5.45*1675=9128.75 Rs.

Premium Received=3*1675=5025.00 Rs.

Net Premium Paid=9128.75-5025.00=4103.75 Rs.

Maximum Profit=75-70=5*1675=8375.00-4103.75=4271.25 Rs.

Maximum Loss=4103.75 Rs.

Break-even=72.45 Rs.

2)MTNL(73.55) December month future-Lot Size 1600 shares.

Buy one lot December month future@73.55

Sell one call option of December month strike price 80@1.55 Rs.

Premium Received=1.55*1600=2480.00 Rs.

Max Profit=80-73.55=6.45*1600=10320.00+2480.00=12800.00 Rs.

Max loss=Unlimited.

Trading Idea

1)ACC(427.05)Buy this stock in decline and trade.

2)ESCORTS(32.85)Buy this stock in decline and trade.

Trend of Major Stocks

STOCK TREND NO.OF Days Weekly Monthly

Trend Trend

ICICIBANK.NS Bulllish 3 Rising Rising

INFOSYSTC.NS Bearish 1 Rising Falling

ITC.NS Bearish 1 Rising Rising

MARUTI.NS Bulllish 3 Falling Falling

SATYAMCOM.NS Bearish 1 Rising Falling

SBIN.NS Bulllish 3 Rising Rising

TATASTEEL.NS Bulllish 3 Rising Rising

TCS.NS Bearish 1 Rising Rising

Technical indicators of major Stocks

MFI=Money Flow Index

RSI=Relative Strength Index

ADX=Directional Momentum Index

STOCK CLOSE MFI-21 RSI-14 ADX-14

ICICIBANK.NS 358.4 41.72 46.3 18.38

INFOSYSTC.NS 1134.5 39.17 39.58 23.7

ITC.NS 169.35 48.18 50.12 16.24

MARUTI.NS 490.65 40.94 38.55 32.48

SATYAMCOM.NS 225.15 35.96 36.92 31.46

SBIN.NS 1134.15 28.43 46.85 26.71

TATASTEEL.NS 182.5 40.93 45.51 31.86

TCS.NS 521.8 52.62 47.3 15.66

Bullet Advisory Indian Stocks Weekly-indian Market Will Watch State Elections Developments

BSE Sensex (9092.72) and Nifty (2755.10) closed 2.0% and 2.3% up last week.Nifty put-call ratio was 0.85.Support for Sensex is 8760 and for Nifty 2660.Resistance for Sensex is 9420 and Nifty is at 2870.Inflation was also under control 8.84 v/s 8.90 last week.Crude oil was at 53$.Market rose as Timothy Geithener was announced as next treasury secretory by U.S. government. Citi Bank bail out package of $26 billions also fuelled the buying in the market as bears chose to cut the positions.China reduced the bank rate which also helped markets to recover from low levels. Terrorist attacks in Mumbai in India on Thursday forced the authorities to keep the market closed.On Friday markets opened on nervous note but recovered on good global cues. Expiry day for the future and option settlement was also shifted from Thursday to Friday. Selling of FII was visible...Nifty 2400 put added open interest.SAIL and Bharti Airtel added open interest.

Strategy for Future Option players.

1)ICICI BANK(351.65) Lot Size-175 Shares.

Buy one call option of December month strike price 350@38.65 Rs.

Sell one call option of December month strike price 400@18.00 Rs.

Premium Paid=38.65*175=6763.75 Rs.

Premium Received=18*175=3150.00 Rs.

Net Premium Paid=6763.75-3150.00=3613.75 Rs.

Maximum Profit=400-350=50*175=8750.00-3613.75=5136.25 Rs.

Maximum Loss=3613.75 Rs.

Break-even=370.65 Rs.

2)ITC(173.60) December month future-Lot Size 1125 shares.

Buy one lot December month future@173.60

Sell one call option of December month strike price 180@6.00.00 Rs.

Premium Received=6.00*1125=6750.00 Rs.

Max Profit=180.-173.60=6.40*1125=7200.00+6750.00=13950.00 Rs.

Max loss=Unlimited.

Trading Idea

1)Reliance Capital(448.60)Buy this stock in decline and trade.

2)DLF(198.40)Buy this stock in decline and trade.

Trend of Major Stocks

STOCK TREND NO.OF Days Weekly Monthly

Trend Trend

ICICIBANK.NS Bulllish 2 Flat! Flat!

INFOSYSTC.NS Bulllish 5 Rising Falling

ITC.NS Bulllish 2 Flat! Flat!

MARUTI.NS Bulllish 5 Rising Falling

SAIL.NS Bulllish 5 Flat! Flat!

SATYAMCOM.NS Bulllish 3 Rising Rising

SBIN.NS Bearish 1 Falling Falling

TATASTEEL.NS Neutral 1 Flat! Flat!

TCS.NS Bulllish 5 Rising Falling

Technical indicators of major Stocks

MFI=Money Flow Index

RSI=Relative Strength Index

ADX=Directional Momentum Index

STOCK CLOSE MFI-21 RSI-14 ADX-14

ICICIBANK.NS 351.65 48.35 42.48 21.26

INFOSYSTC.NS 1243.85 51.09 48.49 28.66

ITC.NS 173.6 51.54 54.92 17.31

MARUTI.NS 533.55 39.3 42.37 31.39

SAIL.NS 66.65 50.47 38.55 34.62

SATYAMCOM.NS 242.9 37.27 41.18 30.84

SBIN.NS 1088.55 34.82 41.03 29.36

TATASTEEL.NS 151.4 37.76 30.58 38.33

TCS.NS 559.4 56.14 54.46 19.61

Local, National, Or Worldwide Penny Stocks?

Are you a big time investor, or are you what is commonly referred to in geek terminology as a noob (newbie)? If you aren't sure what the answer to that is, then a pretty good indicator lies in what type of company you've decided to invest in in your quest to enjoy the benefits of penny stocks to the fullest. Penny stocks may not be the prime choice for everyone, but for those who are ready, willing, and eager to take it to the next level, it has the potential to produce untold amounts of money. Realistically, 'untold amounts of money' could refer to millions, thousands, or just five bucks for gas. It all depends on how good you are at buying and selling, and on which scale you've decided to invest on. Which brings us back to our first question.

Just because a person invests locally, that doesn't necessarily mean that they're new to the world of investments. Investing in penny stocks for companies in the immediate or surrounding area can mean a couple of things for your experience level, as well as your level of experience. Think about things this way. Companies with penny stocks can have one base of operations, or many that are scattered all around the globe. Depending on what that company does and what the future looks like as far as sales and general success rate, a person can actually make more money by investing in a smaller, locally based business than they would in a large company, even though multi-based companies stand a better chance of having a sizable return. On the other hand, it would be hard to find a company that is wide spread enough to be considered global (or international) when most of those companies don't sell their stocks cheaply.

This is where copious amounts of research comes in handy. Look at stocks that aren't too well known, but which have a strong following. If there's an international company selling their stocks for pennies, then chances are that they won't be big names. Meaning that looking at how well that company has been doing in the past, and based on whether or not you believe society will have any need for them in the future, should all affect your decision to invest with them or not.

There's a balance that has to be reached, and when you learn how to do that then there's no limit to the size of the companies in which you invest, or the amount of money that can, eventually, be made.

Penny Stocks VS Regular Stocks

Every one of us who's taken high school courses will have had an economy class before. This class is there to teach you about how money has the power to make the world turn. This class has the ability to teach you about corporations and the ups and downs of the business world. This class usually teaches you, through one way or another, what it means to be involved in stocks. Whether you have an affinity for stocks is a fact that's usually found out during an economics class, and while many people may not even remember the lessons taught, there are others who will wonder what would happen if they put those old teachings to good use and invested. You aren't putting your money in the bank, but you are putting it in a reasonably safe place with the intention of multiplying your initial amount by doing the least amount of work. It's a good set-up, which means that it isn't at all surprising how many people get involved in penny stocks on a daily basis.

The main difference between penny stocks and regular stocks is that of the price obviously. Penny stocks sell for a penny a share at the least, and 5 dollars or more at the most, while regular stocks can charge as much as a hundred dollars per share to start with. Regular stocks, while offering a chance at more money, are nevertheless a lot more stable than penny stocks. You would think it would be the opposite, but the truth is that in many ways, penny stocks are a lot more treacherous than regular stocks because they cost so little.

Another difference between the two stocks is that while you have to be 18 in some countries in order to invest, that isn't always the case when it comes to these stocks. What often happens with penny stocks is that teenagers and pre-teens use them as an introduction to the stock market and the world of money management. With regular stocks, you're basically buying partial ownership of a company, hence the age limit of at least 18 to make the contract a legally binding one.

While we could certainly go on in much more detail about the difference between the two, in the end the only thing that they really have in common is that when it comes to investing, stocks can be both the riskiest option there is, while at the same time being the most rewarding.

Spending Wisely When it Comes to Penny Stocks

It can be exciting knowing that despite rough times, you can still make a sizable income on nothing more than luck. You have to know what you're doing of course, but that sort of thing isn't as much of a requirement when it comes to penny stocks. If you're looking for an investment that has the potential to be both tricky and lucrative, then penny stocks is for you. Contrarily, if you're looking for an investment that's easy and fun, then guess what? These stocks would still be the way to go. The reason why these types of stocks manage to be so popular is because they cover a wide range of possibilities, so therefore, the types of investors and investments that penny stocks are capable of changes from person to person. You can either gamble with it or have fun, but either way, thanks to its price and availability, penny stocks have a way of allowing those who know how to use them to come out on top.

When dealing with penny stocks, it's best to remember that you are buying PER SHARE. In other words, don't get distracted by the pricing and buy as many stocks as possible, because your total price has a way of adding up fairly quickly. Then of course, you have to take into account the fact that all the shares you bought will be used against you should the price plummet. As high as the potential is to make money, that potential is just as high, or higher, to lose money since it's so easy for people to get out of hand with penny stocks simply because of their apparent 'cheapness'.

Penny stocks may act as the perfect platforms for getting some quick cash, but things don't always work out that way. Because of their low price, there's often very little return on non-risky investments. A stock that sold at 4 dollars a share, might only ever go as high as 20 dollars a share, which might urge some people to try and invest in more and more stocks to make up for the money that they felt they should have made. That means that it's possible for someone to have multiple, high risk stocks beneath their belts when they could simply have used that money buying small shares from a non penny-stock company that would eventually bring in more money at once (while all the while remaining consistent).

While it's true that the higher the risk is the high the gain can be, the operative word in that sentence is 'can'. Not will. There's a world of difference, and forgetting that distinction can land you in more trouble than you're ready for as far as your finances are concerned.

Where to Look For Advice on Penny Stocks

When getting into the art of investing, it's important to understand where you need to go in order to find advice and tips. There are so many ins and outs involved with handling money that it's surprising how often we try and condense little tricks of the trade down into packets of knowledge like books, online articles, and instructional videos and cds. Just because someone says that this tip or that tip works, doesn't mean that your investment experiences will benefit from these ideas.

In fact, when investing in penny stocks, the only real way to truly appreciate the various ins and outs that make up that world, is by living it firsthand. Experience in penny stocks is the only real guarantee, and even then, surprises have a nasty way of cropping up. The point that's being made is that, while you can't prepare for every eventuality, and while you can't go into the market armed with a get-rich-quick cheat sheet, you can certainly familiarize yourself with potential sources of helpful information regarding the branch of stock market you're involved with. This includes penny stocks, despite the fact that the market for them isn't as influential as other stock options.

When it comes to penny stocks, a broker or financial advisor will be the people to turn to for advice on when and how to sell stocks. People in these professions have dedicated their lives to knowing when, how, and to whom to sell to and buy from. Some of the biggest, most successful businesses use stock brokers for that very reason, and it's only a testament of how well they do their jobs that such companies are not only standing, but thriving.

If you have a company or small business then you may want to look into hiring a broker if that's the direction you want your business to head in. They can be expensive, but the expense is often worth it. If your investment decisions are more personal than corporate, then ask an advisor. It's the next best thing to hiring a broker and it's also a lot cheaper. You get the same service but from an individual rather than business level perspective.

Penny stocks can be intimidating when you aren't sure what to do, and having an expert who's on your side will ease a lot of the tension that usually comes hand in hand with the stock markets. Whichever one you decide on in the end, broker or advisor, you'll soon learn that their knowledge and experience are invaluable when it comes to investing. Much more useful than any how-to articles you could have found on the internet concerning the matter.

The Benefits of Penny Stocks

What would happen if, instead of always wondering about how you're going to go about making ends meat, you had an alternative source of income. One that had a good chance of being a success despite your assumed lack of knowledge and experience. These stocks aren't financial saviors by any means, but they do posses certain charm in that, thanks to their cheapness, they can be bought by anyone and everyone who has the funds. This has its advantages and disadvantages, examples of which are the fact that even though penny stocks can be bought at little to nothing, they can be more trouble and more money than they're worth in the long run.

The point of penny stocks is to act as a source of back-up income in the event of an emergency. Since the returns on these stocks can be anywhere from 5 dollars to a thousand dollars, that thought isn't so out of the realm of possibilities. Now that their potential is better understood, it's time to look at some of the other benefits to owning or selling penny stocks.

Penny stocks are great for younger, less experienced investors. They don't cost as much as other forms of stock, and teenagers can get a good feel for the market without losing a lot of money as long as they make sure to keep the amount of shares that they buy beneath the double digits.

Stocks are the perfect example of money managing at its most reckless, and that's especially true when it comes to these stocks. If you're the type of person who doesn't have a lot of money on hand, or if you're the type that looks at investing in stocks as a way to have fun with the funds that you do have, then penny stocks are can fit your needs perfectly. They demand research, but not a lot of attention, so you can earn money without having to do much of anything beyond selling at the appropriate time. There are many who have made their living this way, and if some can do it, then why can't you?

Get Some Tips on Penny Stocks

Penny stock is a tricky game filled with lies and cheaters and thieves. Most stocks don't remain the same for more than two year. Either the name gets changed, or undergoes a reverse split, or the management changes. For this reason, one should not be a long term player. No matter how good a stock appears to be one should never bet the ranch but only make small investment in these stocks. But apart from its risks, nowhere will you find stocks that move as quickly as it can in this market. And there lies the chance to earn big profits.

Always use limit orders. Pick an entry price and stick with it. Never chase stock. And never use market orders to enter into a trade. Market order enables the market maker to fill you at any price they prefer and leaves you vulnerable to getting poor fills.

If a stock gaps way up don't chase it. It is bound to come down during the day. Opening is also a very crucial part. It can help you predict the way stocks are going to behave that day.

Keep the losses small. One must have a fair idea of the risk one is willing to make. One technique is to sell a stock if it goes below the price in your alert. Remember big loss has its beginning in the small loses. Always be in control of your emotion and get out f the trade goes against you. The success to trading is to know how to limit losses. An order called Stop Loss Order limits one's loss or protects one's profit on a trade. If one is trading in penny stocks then Stop Loss Order is a must. The most suitable place to put one's stop is slightly below the previous day's close.

Always sell on the way up. Get used to booking profits no matter how small. it doesn't matter whether the profits are big or small, but one should always try and have consistent profit instead of risking for a big home run. And last but not the least, always use trailing stops to protect one's profit after a stock has gone higher.

Well Known Names in Penny Stocks

No matter the stage, there are celebrities of every form all over the place. Not the kind of celebrities that we're used to (the red carpet kind), but the type of celebrity that has done so well in its field that the mere mention of its name is usually enough to make any venture a success. When investing in stocks for instance, everyone will recognize the success associated with stocks for Google, McDonald's, and Walmart. These names are famous outside of the stock market, which is what makes them such a force to be reckoned with inside of the stock market. With that in mind, learning that penny stocks have their own unique brand of 'celebrities' should bring hope to many who are looking to invest. Imagine it. A future big name company with shares that you managed to snatch up for less than a dollar. The chance of finding such hidden gems before they make their debut to fame is the dream of anyone who's ever thought of buying stock.

So, while nothing may come of it, these are some of the up and coming names in penny stocks that you may want to look into before their prices rise much further. GOIG, THRR, HSCC, CCTR, and ATNP. GOIG represents the stocks for GolP Global, Inc., and this particular company deals with electronics and components. Always a smart choice when deciding on stocks since technology is so popular with the public, and since there are so many avenues in which it can be taken (i.e. military, science, research, medical, ect). THRR is the stock symbol for Thresher Industries, Inc. This company is the producer of aluminum castings and has a pretty strong client base. HSCC is a homeland security corporation, CCTR is China Crescent Enterprises Inc., and ATNP is the Atlantis Technology Group.

While these stocks are hot items right now, like celebrities, they can be displaced from their throne by a newer, more efficient company. Some of these names will fail, while others may dip every now and then depending on what's going on in the world.

If you really want to invest in the celebrities of the stock market, you won't be looking for temporary entertainments, but for long term movers and shakers. These companies may be forgotten tomorrow, but at the time this article was written, they were pulling their own weight well enough, and held enough future potential, that they were worth a second look from anyone preparing to invest. And who knows, even if you don't decide on any one of these five, they may give you some good ideas as to what sort of stock to invest in the next time around

News and Penny Stock Options

News, no matter the content, has always been essential to how we go about our everyday lives. We check the news when we're preparing to go out, when we're looking to move, or when we're trying to find a job. The news tells us of the weather, of catastrophes, of traffic jams, and of simple every day disputes that we may or may not have to watch out for. It's an advanced warning to the changes in the world, and it should come as no surprise that if we're using the news to help us decide whether or not to wear a coat that day, that the news system would also come in handy in the case of the stock market. Not just any stock market, but penny stocks.

These stocks may be mentioned every now and then in the regular listings concerning stocks, but that is only if those stocks have made a successful name for themselves. If you want information, then you need to have a good idea of who provides the latest, unbiased opinions.

NASAQ is the most well known choice. It provides real time quotes, post investment quotes and pre-investment quotes, flash quotes, company lists, market activity, research material, and which stocks are the most active during the time you check in. The problem with relying on NASDAQ for information is that it does not just deal with penny stocks. If you want a more focalized site to get information, then places like BestDamnPennyStocks.com, TheHotPennyStocks.com, RealPennies.com, and Pink Sheets are all great places to get the latest news on penny stocks.

HotStocked.com, MoneyCentral.com, MarketWatch.com, and InvestorsHub.com are equally useful, though again they focus on stocks in general rather than penny stocks in particular.

Checking in with these sites, or sites similar to them, will help exponentially. You can also have the information you need sent directly to your email or phone via alert systems set up for investors on the go.

The Rules of Penny Stocks

In order to function properly, rules must be followed when dealing with things like penny stocks. Penny stocks may seem uncomplicated and easy to handle, but that's the type of thinking that could lose you hundreds, if not thousands, of dollars. Since the point of investing in these stocks is usually to ease out of debt rather than adding to it, chances are that you'd like to know what those rules entail before you shoulder the burden of buying these stocks. And, surprisingly, despite its light hearted name, it can indeed be a burden if you don't know what you're doing, but have entrenched yourself too deeply into the market to get out.

Despite the popularly held notion that these stocks can be handled the same as regular stocks, penny stocks actually require a lot more time, effort, and thought then most people are willing to put into it. Some general rules designed to help you out when dealing with penny stocks include the following two tips:

* Never pick a stock based on the results of one day's research. Usually there's a chart that shows a stock's rises and falls in the market. Just because a stock looks good on Monday, doesn't mean that things will stay that way come Tuesday. No matter how impatient you are to get started, and no matter how good a stock looks, watch it for no less than a couple of weeks to see what its pattern looks like. Having a good idea as to when the stock prices fall and when they rise again can tell you a lot about a company and whether or not you should invest.
* Though it's helpful when a stock is featured in a major market like NASDAQ, that doesn't mean that the company is well off. Checking with NASDAQ about a stock is sort of like checking whether or not a school is accredited, or if the people you work for are legit. It's a place to get news, research and market activity concerning your chosen penny stock. Not all stocks are listed there but most will be, and if, or when, you find what you're looking for, be sure to check all the information NASDAQ has about the company to be sure you're making the right choice.

Hopefully, you got the message that both rules were trying to send. Split second decisions based on a handful of knowledge will get you nowhere fast. Research, in the case of penny stocks, is key, and the better you are at it, as well as the more patience you happen to possess, will go a long way towards guaranteeing a successful investment.

This article about Penny Stocks was provided by Robert Adler from Hot Penny Stock Trading Tips.

A Layman's Guide to Finding Hot Penny Stocks

Finding a hot penny stock is a bit challenging given the lack of transparency. There are no financial statements to read or annual reports to sift over. So how would you start?

Maybe the best way, especially for a beginner, is to take a fundamental approach. Here are a few simple steps to follow:

1. Choose an industry that you are familiar with. We all have interests, passions or hobbies that we understand and like to talk about. Starting with a line of work that you are intimately familiar with is a good place to begin. Employees in the travel industry might want to research the Pink Sheets for companies in this industry. Or maybe you work in technology and have specific expertise in software or hardware.
2. A second approach could be to explore companies that deal in a favorite hobby of yours. Maybe you love music and follow the industry. A music fan might want to research technology happening in the music industry. Maybe you come across a company that brings undiscovered talent to the world through the median of the internet. Looking deeper, you find this music production company is a penny stock traded on the Pink Sheets. You become convinced they have a great service in an ever expanding marketplace.
3. Your next step would be to begin to research the company. In today's world, most research is conducted online first. You may also want to look into a few industry trade publications. So you then begin to study the industry to confirm that there is a market for this service and growth potential of the industry.
4. Your research continues to investigate the company itself. Begin with compiling questions like: "How experienced is the management team"? "How long have they been in business?" "Do they have any investor relations contact personnel to speak to?" This is where you can begin to find out about company ownership, upcoming business developments and hopefully financial information.
5. Lastly, you research the stock, its history, its trading range, and many other factors. This is where it's recommended to find a financial professional to help you make an intelligent decision.

These steps are very basic in nature, but a way that you can begin the due diligence process... and maybe, just maybe, find a hot penny stock before it's discovered.

About StockProfessors.com

StockProfessors.com is a website that profiles stocks of interest. We are not licensed brokers or financial consultants. Please be advised that the information contained may or may not be complete and is solely for informational purposes only. This is not to be construed as an offer to sell, hold or the solicitation of an offer to buy. Investors are encouraged to seek opinions by their registered brokers or financial advisors after extensive due diligence is performed.

How to Trade Penny Stocks

Penny stocks are not found in the typical markets that most stocks in your portfolio might be, such as NASDAQ, NYSE and AMEX. Since penny stocks are traded outside the main markets, there's a lot more room for investment from experienced and inexperienced investors. Penny stocks really help you develop a greater understanding of how the market works, from the very finite details and inner workers of the trading counters.

As penny stocks are not traded on the main markets, it's important to find a trusted broker or side exchange market to facilitate the purchase of stocks. In order to be truly effective as an investor, you must understand the 'bid and ask' price connection. The difference between the bid (real) and ask (selling) price is called a spread and is the base in which you will calculate your earnings. This is particularly important as penny stocks are sold by estimated values versus a single unit price. It is wise to install a stop-loss tactic and protect your capital with prudent exit strategies. This is both high risk and high reward. So, it's very important to know what you're doing, and listen to the experts.

When researching what penny stocks to invest in, it's important to do your research. Make sure you know what the company's product is, and how it's used in the marketplace. Identify what type you want to invest in, micro cap, small cap or large cap companies. These terms relate to the amount of capital each of the companies have, and is a great way to gauge new opportunities or growth patterns. When you decide to invest in the right small or large cap company, make sure you limit your order. A limit trade limits the amount you'll pay for the stock or your selling price. If you're dealing with a share that's a penny, then even the slightest movement in price before you buy can cost you all your profit or throw you into a loss. Since activity may be low on these stocks, certain individuals can play with the price of the shares and increase their selling price.

In any case, if you're planning on buying stocks in larger quantities, always make sure to go through a broker. They know the markets and are in charge of handling and selling, so it's best to work with them to maximize opportunity.

Happy Trading Everyone

Riskless Investments Make Sense

According to many investment advisors, the best ways to invest smarter and protect your investments from downfalls are:

1. A Well Planned Strategy:

You should prepare and implement a clear, properly planned and up to date strategy. You must also understand your investment, risks, fees and other associated costs. The market has seen big companies collapse in recent years because they failed to implement their strategies and follow up strictly.
A proper strategy while investing in securities will save you from market drops and gyrations.

2. The Global Economy:

The economy now has become a global economy. Now market downturns anywhere in this world, it affects the much of the rest of the world. You have to be well diversified globally. A well thought out decision making process and disciplined action is necessary to get your portfolio running smoothly in such conditions.

3. Limiting The Risks:

Limiting the risks by using "put options" can save an investor time and money. Puts are excellent trading instruments which guard you against losses by giving you right to sell your specified assets at a predetermined price that is above your loss level.

4. The Use of Mutual Funds and Exchange Traded Funds:

A well chosen mutual or exchange-traded fund can help you sleep better at night by spreading risks across multiple sectors in a single investment.. The losses in mutual funds are mitigated because all these funds are very well diversified by sector, market or asset type. You may want to consider limiting any single stock to ten percent of the portfolio to further reduce risk in your portfolio. You can also analyze your portfolio using risk tools available online at many online brokers and financial websites.

5. Using Proper Order Types to Execute Your Trades:

Use a variety of order techniques when purchasing and selling stocks or options online to save time and get the best possible price. You can trade again and again if you have funds in hand, but if you loss in one trade, you've lost those funds for good. Therefore it is wise to know your options when entering orders.

Stop Orders: Also sometimes called a stop-loss order. It is used to trigger a market order if the option price trades moves to a certain level. Stop orders. can be an effective and automated way to exit a losing position while limiting the damage to your portfolio.

Stop Limit Order: Stop limit orders are similar to stop orders except it triggers a limit order instead of market order. Stop Limits are triggered just like a Stop Order, when the stock or option reaches a specified price, however the resulting order is set at a limit. Except in extremely fast markets where the security may trade through your limit before it becomes active, Stop Limit Orders guarantee a price (your limit) after the security reaches your stop price.

Limit Order: These Order guarantee a price but don't guarantee an execution. In a fast market setting a limit well below the current bid price will generally give you an execution, but limit orders are generally used to capture upside potential on profitable positions in your portfolio where a higher limit is set and once the security trades to that level you receive an execution.

To recap, when managing your own portfolio it is important to have a clear plan, maintain discipline, and utilize all trading strategies and markets. Doing so will help protect your portfolio and help you sleep more soundly at night.

Online Stock Trading and Option Trading can be risky for a new investor. Many firms offer practice accounts that should be used to test these strategies.

Technical Analysis Software - Finding a Charting Program

Traders have a couple of choices when it comes to technical analysis software: either use what the brokerage offers, or purchase a software package. One way to decide which choice may be best is to think about the features necessary to implement your trading system. Here are a few ideas --

Charting is the primary feature in all technical analysis packages and is a very basic function. The software allows the user to plot charts in a variety of ways: candlesticks, bars, and lines. It should also allow you to draw trend lines and horizontal lines for support and resistance. It's a nice bonus if you can write on your charts -- it helps to keep a few notes about reasons for the entry, stop, etc.

Back testing is very useful to test the viability of your trading system. You'll need to understand the formula language the system uses in order to write the code to test your trading system. Some formula language can be quite difficult. See if it's possible to download a manual from the vendor and read through the section on writing formula code. It's even a good idea to ask the sales person if technical support can help with this function.

Optimization isn't so important, but is usually included if the software offers back testing. Optimization is fine-tuning your trading strategy to find the best settings for the strategy's rules. This could be an entire discussion by itself.

It seems to me that traders trade and formula writers code software. In other words, you don't need to worry about optimization. If you thoroughly back test your strategy it will be apparent if your strategy is sound, or not. Test over many years, during up and down years, and during sideways markets. If you can be honest with yourself you'll know if you have a good system. Optimization can lead to curve-fitting that can lead to unrealistic expectations.

A scanner is a great feature to have. It should allow the creation of a multitude of scans that can be saved, retrieved and executed with ease.

Alerts are useful. A simple alert could be a buy or sell arrow on the chart. More elaborate alerts are configured to go to an email account or a hand-held device. It just depends on the level of "contact" you need or want if away from your computer for the day.

Indicators are something with which you don't need to concern yourself. Most software comes loaded with bunches of indicators -- many more than you need or likely want. What is nice is the ability to customize indicators. For example, a custom indicator could be a weighted Relative Strength Index (RSI), or coloring rising price in one color and declining price, another.

Another feature, that is now more common, is the ability to overlay multiple indicators in the same pane. This is very useful especially if you have a system dependent on multiple indicator criteria. For instance, it's nice to display a 7 period, 14 period, and 40 period RSI in one pane. Displaying the moving average of the RSI is another example of a multiple indicator overlay.

A good, clean, timely, data feed is critical. You get what you pay for with data. Free data is often error-ridden, late, or unreliable. Purchasing data separate from the software program can be expensive. Try and find a bundle of software and data. If it meets your needs it will save some serious coin.

Much of the software for sale, but not all, has a broker interface. This allows order entry directly from the program. It's not a necessity, but more of a personal preference.

As you see, there are lots of options to discover as you shop for software to handle your trading needs. It's nice to be able to "kick the tires" before purchasing. When you find a package that you like, see if a fully functioning trial is an option. If not, a money back guarantee will let you take the software through its paces before you commit your cash.

Secrets to Successful Stock Trading - Buy Low, Sell High

Doesn't that sound obvious and simple, buy low and sell high. Everyone understands that if you buy something for $2.00 and you sell it for $4.00 then you make money and if you buy something for $4.00 and sell it for $1.00 you lose money. So why don't most investors do exactly that?

Why People Don't Buy low and Sell High

First there is the lingo, "investor". You see if you invest in a company, like your own business, than of course you are not likely to sell it off quickly to the highest bidder and if it has a troubling time you are going to nurse it back to health. People get attached to stocks in the same way. You hear things like "ooh I just bought 100 shares of Google or Microsoft or Bank of America". Now they treat that stock like it really was their company. If it goes up in price great, they hold it and boast about it; when it goes down they feel badly for the company, not for themselves. You'll hear them say something like. "I know it's a great company and it'll come back. In the meantime their portfolio is not growing in value.

How To Make Your Nest Egg Grow

Your responsibility I think is to make your retirement nest egg grow steadily, not worry about Bank of America. Hopefully you bought the stock of Bank of America to make money, which means that you should have made sure it was really low priced, and a good deal when you bought it and you should have a plan for when you are going to sell it. Are you going to sell it when it doubles or when you made 25% or whatever you have decided intelligently is a reasonable price for it to achieve. To do this intelligently you probably will have to consult a chart, so you can see what the stock has done historically

You have to know from the point where you are buying that stock how high could it reasonably be expected to go. If you bought Ford or Citibank when they were $2.00, in the heart of the recession, it is pretty reasonable to expect to see them double from there. What about when Ford was nearly $1. Now it is over $10. That is what the Buy Low Sell High trader is looking for. Probably the well schooled Buy Low Sell High trader got out somewhere between $10 and $14. You see they are not invested in Ford, they only want to grow their retirement account. Citi however has not seen that sort of monumental rise and the smart Buy and Hold trader had to satisfy himself with a double, selling off around $4. When you are trading you have to let the market tell you when to buy and sell. Maybe you hoped to triple your money on CITI but the market has changed and it is time to sell as it is too dangerous to hang on, so you get out and realize you doubled your money. Not so bad, and you made out like a professional trader on Ford.

What Should You Trade

The problem with trading stocks is that you have to worry about what is going on in the backroom. Remember Enron and the "off the balance sheet accounts" that showed it was losing a fortune while the balance sheet looked great. And the problem with Mutual Funds is that you have to worry about the manager and his ability to pick stocks. I like ETF's where you can find an exchange traded fund that duplicates almost any sector of the market you could want. Want to own Gold buy GLD, want to own good gold stocks buy GDX and so on.

Plus the sectors cycle so you can see more clearly when they are very low and ripe for buying and when the sector is ready to be sold. Some sectors are traditionally better to trade in these gyrating markets and others do better in strong trending markets, like the 20 year bull cycle.

The Challenge

The biggest challenge with Buying Low and Selling High is that you have to buy when everyone around you is screaming sell, the louder the screaming the better the buying opportunity, and you have to sell when everyone is anxious to buy. The talking heads are proclaiming that the markets can go nowhere but up and that is when you HAVE TO SELL! Fortunately we have great indicators to help us know what do and we can love the media and forget them.

So I hope I have given you some food for thought. Your job is to grow your nest egg, and nothing else.

Holding a Stock is Not That Great

Want to spend your asset to massively increase it without doing much work? Then the stock market is perfect for you. As of today holding a stock share from a company is very common. Lots of people immediately got interested on buying stocks because of the high anticipation to have a great increase with their investments. Yes, this is the main reason for most of you who entered the world of stock market. But do you really know the basic concept of holding a stock share in a company? That's exactly my point, how come you want to enter in an all new thing for you? You better want to do some research or study for awhile if stock market really fits you.

Stock market provides a very nice promise for people to invest their money with the big companies. Yet, as many research show, many stockholders doesn't really understand their place in the world of stock market. Indeed, it is a must for share holders to know where their money goes. It is mainly the key to protect theirselves at the same time their investments. As an interview of some holders, all they knew is just they have nothing to say about how the company runs. All they knew is if there are lots of company income then they have the increase of asset or dividends. Well, maybe this is really what happen that the stockholder doesn't have the liability to make daily reports in the company. There is nothing to do except trust for the company to give you a higher return of asset.

Preferably, it is such a heaven-like to make out money without prior hardworks. Who doesn't even want to have a high asset while just doing personal things? This is kind of a wonderful happiness to everyone of us. But are you really willing to take all the risks? Not all investments are surely successful. There are still failures when it comes to this whole monetary thing.

Since there are two types of stocks, the micro and macro stocks, I will preferably advise that you start with the micro stock. It is commonly known as the Penny stock. This is somehow a test if buying a stock from a company will give you a true happiness. However, if you buy penny stock, still it doesn't guarantee success but at least you only invested a small amount. If it fails, experience will be your great teacher and that's the time you can actually realize if you want to buy a stock or not.

Strategizing to Make a Mark in the Share Market of India

Strategizing plays a major role in determining the right market shares for trading. Very often, you may be following a flawed strategy thus unable to get the desired results. The share market of India is no doubt a lucrative platform for making money. Many an investor, after conducting research, finds out a couple of promising companies and starts investing in those companies with the objective of getting big returns. But this may turn out to be a flawed strategy as well.

There are many a start-up companies; investors invest in such companies on both long term and short term with the hope that these companies would make it big one day. But the truth is that out of say fifty companies, two or three companies are able to reach the top while the rest grow at a very slow pace or remain stagnant with a couple of them exiting from the scene. Shares trading thus need a cautious approach from your end. If you happen to invest in those two or three companies, your future is bright too. Becoming rich in a short span of time is certain but if you happened to invest in those stagnant companies or those that have exited, your investment will all be gone.

BSE shares are the shares of the companies listed in the Bombay Stock Exchange (BSE) and NSE shares are those dealt by NSE (National Stock Exchange) companies. Invest in both NSE shares and BSE shares across different sectors so that you spread your risks, thus protecting yourself from any major loss. This is one of the best strategies followed by many an experienced investor in shares trading. Investing in small cap, mid cap, and large cap market shares will thus help you maintain a balance in the loss profit ratio. Even if you face losses in small cap market shares, the profits gained in mid cap or large cap will not affect your financial health.

The value of a company in the share market of India can be determined in a number of ways. You can also follow numerous ways to determine the value of market shares whether it is NSE shares or BSE shares. Take into account the company's market value, or in other terms, the company's market capitalization. This market value will help you determine both the value of the market shares as well as the value of the company. This can be attained after multiplying all the outstanding market shares of the company by the current price of a single share. The calculation is quite easy; any investor with a little mathematical knowledge can do it. For example, the current share price per share is Rs. 15 and it has 10 million outstanding market shares. If you multiply it by the total number of shares, the market capitalization would turn out to be Rs. 150 million. Also take into account the size of the company while investing in it.

The Most Effective Stock Investments For the Risk-Loving Little Investor

When you had only small money to invest, and you had a relative tell you that you just required to go with top billed - even should you only get a couple of shares for your capita;, would you do it? Or would you attempt to look for a riskier company that was down on its luck but made an excellent bargain? What is it that makes inexpensive shares from a luckless company a excellent bargain nevertheless? When individuals attempt to evaluate companies like this for their potential, there's an area they typically neglect to appear closely at - their money reserves. A company that has somehow fallen out of grace with its buyers and lost its touch in its business can still exercise lots of possibilities if it has a reputation, and a ton of money to take advantage of it with. These make for that best stock investments when you aren't doing that well yourself.

You can find numerous companies close to that fit this description -companies that can use their money reserves to tread water for some time whilst they get their issues sorted out. Here are a handful of companies that trade now for 5 bucks a share; each one is usually a world-famous, respected multinational corporation with an overarching presence the entire world more than. Thy are leaders in their trade, if not in their business at the moment. At 5 bucks a write about, it wouldn't hurt to have just a little faith. Some mythically good investors like Warren Buffett for instance, produced a name for themselves swooping in on shares of companies like this. To lesser mortals like you and me, these are the most effective stock investments these days for just somewhat outlay.

Alcatel Lucent is really a entire world beating telecommunications business. Most of the cell phone towers you see craning up off rooftops (anywhere approximately the entire world) are most likely ones set up by these persons. They may be losing their marketing touch now, and aren't on top of their game. But there's every reason to believe that they'll get there once again; you could get two of their shares for 5 bucks. Oh, and did he realize that most of the price of the write about comes not from the value of their business, but for pure difficult money?

Sprint Nextel can be a household name all around the country for prepaid cell phones; the company has invested heavily in its networks, and has run up far more than $20 billion in debts; but with a money pile worth $4 billion, it is not in any danger any time soon, and it wouldn't hurt to bet on it with 2 1/2 shares for your 5 bucks.

Do remember which you used to see advertisements for Novell all around the place a even though ago? Whatever happened to them? This multinational hardware and software company that makes specialized operating systems for big corporations, is in no debt, but it isn't a tech powerhouse like IBM either. They're trying to focus on going open source Linux and on making their profits there. You'll get one reveal for 5 bucks, and you'll be getting a stake in their proprietary operating system software. Everyone expects them to find their feet once again once they may be correctly established in open source.

But we could move away from the tech companies and appear at something alternative for that best stock investments it is possible to find for just a little money. Wendy's, the fast food chain, is really a particularly tasty investment. They have a massive presence all around, and their dollar menus are well loved. The company's founder passed away nearly 10 years ago, as well as the company has been struggling to find its true calling ever since. It is been acquired by Arby's, a holding company that buys into food businesses and turns them approximately. They've been doing an excellent job at cost cutting, and they seem to be on their way up once more. The company has money reserves of much more than half a billion, and you could get one write about for 5 bucks. I'd bet on a excellent mouthwatering burger any day.

How to Get the Best Technical Analysis Tools For Stock Trading

Many traders in today's stock market are opting to use a technical analysis tools program which carries out all of the analytical work on their behalves and delivers stock tips which are algorithmically based right to their e-mails. At this point any kind of investor whether you're a Wall Street mogul or a stay-at-home mom can trade accordingly without having the time to put towards the analytics.

This article is going to look at what you should look for to pick out the best possible technical analysis tools for stock trading.

First and foremost, you'll find that you can significantly weed out the ineffective programs by making sure that the publisher offers a money back guarantee on the technical analysis tools.

This of course is a sign of good faith from the publisher but at the same time it enables you to get the technical analysis tools and receive a few of its first stock picks and gauge their performances as they progress in the market accordingly.

You should also be sure to note whether the technical analysis tools exclusively targets penny stocks, greater priced stocks, or mixes them all together. The reason for this is that tools which attempt to look at and anticipate market behavior in penny stocks as well as much greater valued stocks typically perform much worse than those which go after one or the other exclusively because it's a completely different analytical procedure anticipating faster moving/more volatile penny stocks versus greater priced stocks.

You should also take a glance and see what sort of support the authors behind the program offer to their customers. In the ideal situation, they would offer 24 hour phone support but realistically I have found that many of these companies rely solely on their e-mail support. That's not necessarily a reason to write them off, as often times I've found that they'll respond to your queries extremely quickly.

Consumer reviews are also generally great places to find the best technical analysis tools from people who have used them themselves first hand.

The Secret of the Pros to Tripling Their Investments on Undervalued Stocks

Tripling your investments in the stock market is as simple as relying on a method which the professionals have been using for many years now to uncover undervalued stocks and which recently has become available to less experienced and first-time traders.

Let's take a look at this method for tripling your investments on undervalued stocks which the pros have long relied on.

The single most reliable method for anticipating individual stock behavior is to look at the factors and well performing undervalued stocks of the past or more specifically the market factors surrounding that stock before it went on its breakout upswing.

This is difficult to do manually given this size of the market, so professional traders have long relied on database based programs which build, maintain, and regularly amend large databases of high probability trend behavior which it constantly applies to the real time market in search for matches. Even the smallest overlaps in behavior can tell you everything about what to expect from a stock's performance.

This technology is now available on a consumer based level only individual traders generally don't have complete access to the program themselves but instead sign up for an e-mail list which sends out these generated undervalued stock tips when the algorithm picks up on a match in behavior in the current stock market.

Some of these programs only go after penny stocks and nothing else, so they're better equipped to handle the increased volatility associated with them and pick up on the huge upswings which cheaper stocks are accustomed to.

How to Get the Best Online Trading Strategies Program

Millions of traders worldwide are embracing online trading strategies programs to do their analytical work for them and based their investing on cold algorithmically crunched market data rather than emotions. This leaves them free to simply invest accordingly without having the time or experience to put towards it themselves. While stock programs are enjoying this popularity, more programs are hitting the market every day and are not all necessarily as good as the next. For this reason I found the following guide essential for picking out the best online trading strategies based picking program.

First and foremost you should make sure that the online trading strategies program either focuses on penny stocks or greater priced stocks but never both. Penny stocks carry a great deal more volatility with them than greater priced stocks because by their very nature they are more easily influenced by trading. Therefore, the programs which exclusively target cheap stocks are much better equipped to find penny stocks and the same goes for those which focus on greater priced stocks.

Secondly, look for a money back guarantee on the online trading strategies program which you go with. This enables you to test the program first hand if you like but at the same time it's also just a sign of good faith from the publisher. Many of the most reliable publishers and legitimate ones encourage that you try their programs first-hand in this way by getting it and receiving a handful stock picks and by subsequently following their performance along in the market.

Finally, user review sites are good resources to turn to to learn obscure and important things about a program which you wouldn't learn otherwise.