Archive for January, 2010

Newer Entries »

On BSE and Stock Trading

Tuesday, January 19th, 2010

Growth and stability are the buzzwords for the Indian stock market at present giving investors, justification to smile. International corporate players are no doubt attracted towards investing in India after analyzing market statistics that ensure faster returns compared to other world markets. With market experts giving the green signal of a picture perfect financial growth in the future, wise investors are on the look out for stock recommendations for long term investment. BSE and NSE have emerged as the two biggest and most happening stock exchanges in the Asian region; market statistics, as represented by these two exchanges, substantiate the prefacing of lucrative options for both small and big investors alike.

Trading in Indian stocks is made easy with the BSE index and NSE market statistics. As an investor, you can view live stock recommendations, share tips, performance of the BSE 30, and more about the Indian share market by browsing through the many online brokerage platforms. No matter where you are, you can take a glimpse into the latest BSE stock prices and make investment decisions after considering all aspects.

BSE 30, as the name suggests, constitutes of 30 trade stocks representing some of the major industry segments. BSE index is calculated by the Sensex on a free-flow method, making available stocks for trading with a list also displaying BSE stock prices. Besides the BSE index, the stock exchange, deemed 5th globally in share trading, also comprises of 21 indices with hundreds of companies listed in it. One of the oldest stock exchanges in Asia, the BSE has played a pioneering role in the emergence of the corporate sector in India by facilitating the availability of monetary resources for taking the business forward. Whether it is trading in equity shares or derivatives or debt instruments, the BSE offers a base for all the said platforms.

Stock recommendations can be chosen for either the long term or the short term; those for long term does create an impact on your money invested. It is all a matter of watching market movements closely and taking decisions accordingly. A smart investor, especially one who is a beginner, does rely on trading tips suggested by market experts before investing. At face value investing in the stock market seems lucrative, but with the risk involved it is necessary that investing opportunities need to be assessed properly so that losses are not incurred.

Sourav Sharma is freelance market analyst and writing reviews articles on BSE,BSE 30, BSE index, BSE stock prices, Stock Recommendations, and Market Statistics.

Article Source: On BSE and Stock Trading

Share/Save/Bookmark

Tags: , , , , ,
Posted in Weekly Market Update | No Comments »

Index Trading – What Is It?

Tuesday, January 19th, 2010

There is a definite buzz surrounding Index Trading as it has unfolded to be one of the safest and most efficient cash-flow generating investment opportunities today.

In order to explain Index Trading in a clear and concise fashion, we must first understand what an ‘Index’ is. An Index (plural – Indices) in this context refers to Stock Market Indices; indices measure the movement in value of the market or various sectors of the market. In other words, a stock market index is simply a method of measuring a section of the stock market. There are indices for almost every conceivable sector of the economy. For example, the major market index in Australia is the S&P/ASX 200, an index made up of the top 200 shares in the ASX. The Dow Jones Industrial Average is probably the most widely known index in the world. Although the topic of Stock Market Indices may seem daunting to some, don’t be put off by it as there is absolutely no need to understand its intricate workings in order to financially benefit from Index Trading. This type of investing is normally done in conjunction with a professional company specialising in this expert field. They provide you with the information necessary to place your trade, hence you only need to spend a few minutes a day in order to generate profits.

Index Trading is not to be confused with Share Trading or Options Trading, which are entirely different forms of investment also utilising the Stock Market Indices, the basic difference is they require much larger long term investments in order to possibly receive a return.

Instead of purchasing tangible assets such as Shares, you are trading on the movement of a variety of market indices. This type of trading is also called a Stock Market Wager or a Bet on the market. Indices rise and fall throughout the trading day, we are simply predicting the direction in which a market index is going to move. For example, if a market index has been predicted to move ‘down’ and you have placed your wager or bet on that prediction, then you gain a financial return. It is possible to generate profits whether an index moves up or down.

Each trade is usually carried out during the course of one hour, rather than the usual months or years required with other types of investments. No longer is it necessary to have your money tied up indefinitely, you can access your account any time you wish and use the profits right away. Many people find the low-risk nature of Index Trading very attractive as the only outlay you are putting at risk is the small portion of your account you have placed on the current trade. Therefore your account, as a whole, remains safe.

Among the many benefits of Index Trading, the greatest advantage to investors is that it suits a wide array of budgetary needs, as opposed to the more ‘traditional’ types of investments we have become accustomed to. Index trading provides an income on a regular basis rather than waiting for a long term investment to mature. With Index Trading you can invest as little as a few hundred dollars per trade (often even less) to gain a reasonable supplement to your current income, which is most advantageous for those requiring cash-flow rather than acquiring assets. However, it is also suitable for those wishing to invest larger amounts of money in order to generate more substantial profits. In a lot of countries around the world the profits resulting from this type of investment are considered non-declarable income, or tax-free income.

Prosperity Group International (PGI) provides leading edge information within the Index Trading Industry. They also actively develop products and systems that enable people to create ongoing cash-flow with minimal risk and time input. Please visit PGI at www.pgi.net.au Get More Information On Index Trading

Share/Save/Bookmark

Tags: , , , , ,
Posted in Weekly Market Update | No Comments »

Introducing the Commodity Channel Index by David Adams

Tuesday, January 19th, 2010

If there is a handier trading tool than the Commodity Channel Index I would be hard pressed to identify it. Many day traders have flocked to using this indicator for it’s sheer versatility, if nothing else, and it’s following grows yearly.

The Commodity Channel Index (CCI) was introduced in 1980 by Donald Lambert as a way to chart cyclical turns in commodity prices. I don’t trade commodities, so you are probably wondering why I would take an indicator and plug it into trading something like the financial indexes. I wish I could claim to be the first one to do so, but that is far from the case. Scores of day traders use the CCI to trade a variety of trading systems with excellent success, and I simply plugged the CCI into my system. The fact of the matter is one of functionality, regardless of what the Commodity Channel was designed to do, it works well as a daytrading tool. Functionality over form, I suppose.

So what, exactly, is the CCI in relation to day trading?

The formula to calculate the CCI is as follows:

CCI = ( Typical Price – SMATP ) / ( .015 X Mean Deviation )

Thankfully, you will not have to calculate the CCI by hand, unless you want to bone up on your mathematic skills, because most day trading charting program have the indicator included in their trading package. Notice that the constant being multiplied (.015) to the Mean Deviation is a fixed number. That is no accident, as Lambert found using .015 kept the majority of price action, specifically, 70-80%, between the +100 and -100 lines. I have actually written several programs where the constant is different than .015 and had some great success. However, the .015 will work just fine for our purposes.

Lets talk some about “overbought” and “oversold” levels in the security you are trading. Conventional knowledge would indicate selling out of an equity when it reaches an overbought level. I tend to disagree with that analysis, as people (especially traders) are not the logical calculating cabal you might expect. You see, I like momentum in trading, and when a security reaches an overbought level, daytraders who missed the trade tend to pile into to security hoping to catch whatever upward movement they may have missed. Of course, this only adds to the upward movement, and the security continues along it’s merry way, further up. Time and time again I have watched this phenomena.

Having said that, I define overbought and oversold as the +100 and -100 lines on the CCI. Further, I define market noise as anything between the +100 and -100 lines. Those definitions work pretty well for daytrading. I realize that using these assumptions challenges some conventional thinking about the market. But this model works well for my purposes as a scalper. (a day trader who is looking to take small chunks out of a short term trend)

I am trying to avoid trading during periods of market noise, when the market is going through the tedious backing and filling process, and only trade when the market is breaking out or breaking down. The CCI and it’s magical +100 and -100 lines gives me an excellent snapshot of when to trade. By that, I am referring to overbought and oversold conditions.

In the formula above, the other constant is 20, and this indicates the number of time periods the program will use in the averaging process. So the formula, to be clear, is using a 20 period average. I don’t use 20 period averages when trading. I generally set the time period to 16, sometimes as low as 10. I have found that a quicker time period makes me more nimble in entering and exiting trades. You may want to start at 20 time periods, and see if that number is a good fit for your trading style.

I don’t use the CCI as a stand alone indicator. For that matter, I don’t use any indicator as a stand alone. No, I find it important to use several other indicators to confirm buy and sell signals. As a trader, I cannot put my trust in any single indicator.

To summarize, the CCI is an indicator that was developed to chart cyclical changes in the commodities market, and I fiddled with it’s settings and found it effective in trading the financial index markets. The Commodity Channel Index has several constants in the formula, and I have chosen to alter those constants to fit my needs. Finally, I have a set view on the market which is defined by the +100 and -100 lines on the index, and use the index to set my view as to defining the following terms:

1. Market noise
2. Overbought condition
3. Oversold condition

Take some time and play with this indicator. I think you will find it’s versatile and nimble in the markets and worthy of your attention. Just don’t put too much stock in a single indicator, seek out the relationship of the indicator and price action and the synergistic relationship it shares with other confirming indicators.

You can learn to trade from a 15 year veteran trader, not a salesmen. This program comes with a lifetime mentoring program and an educational package that is second to none. Additionally, the trading system is time tested and has been in use more than ten years. You can get your free emini starter pack (valued at $500) by going to Click here for your free trading pack at Trading Concepts, Inc

Article Source: Introducing the Commodity Channel Index

Share/Save/Bookmark

Tags: , ,
Posted in Weekly Market Update | No Comments »

5 things to check before buying a rental property

Tuesday, January 19th, 2010

Buying a rental property is a huge investment. Is more than just the actual purchase of the home, it takes time and a well thought action plan in order for the owners to be sure that they are satisfied with their purchase. Whenever it seems like something is going on in the real estate world, investors are going to be looking for the perfect property to make sure they are getting the best deal to maximize their profit.

There are things that investors need to keep in mind. Below are a few tips that one could consider to help them with making their choice and maximizing their profits. It is important to follow certain guidelines in order for the person to know their rights and responsibilities as well.

When an investor is considering a property for a rental, they are going to want to make sure that they buy below market value. This will ensure the investor and nice sized profit and not have to worry about having a mortgage on the home and it be way higher than they can afford. This certain rule is very important for both the residential and the commercial properties that are going to be purchased for rental purposes.

You should always check your credit and know what is going on. If you are going to have to take out some kind of mortgage on the property, then you are going to want to get the best rate and terms possible. If you have problems on your credit report, it can cause your rate to be pretty high and the payment be way to out of reach. It also leave you with not making any profit at all.

Do as much research on the properties that are available in your area. This is an area in which you are going to have to do your homework. This is an area that knock many investors out of succeeding in the investment business. Knowing all the odds and ends of the housing market is going to help. It will also help you when it comes to getting the best property for the best price.

If you are going to be purchasing a home that needs to be “fixed” up then keep that to the lowest minimum possible. There is nothing wrong with buying a property that needs to be fixed up. Just make sure to keep the work that needs done a minimum and that way you can maximize your return.

The last thing that you are going to want to do is make sure that you know what kind of neighborhood the home is in and if it is somewhere people are going to want to rent a home or not. You need to know things such as the crime rate and if someone is going to be staying long enough for you to make a profit or constantly having renters coming and going.

Investing in rental properties is something that is going to be taking a lot of thought and consideration. Following the very simple guidelines and tips above can help with making a decision about the property that you are going to purchase and help you make as much as you can with your rental property.

Trendy Patio is where you can find Patio Heaters,

Outdoor Area Rugs,

href=”http://www.trendypatio.com/catalog/Patio_Umbrellas-33-1.html”>Patio Umbrellas.

Share/Save/Bookmark

Posted in Weekly Market Update | No Comments »

Private Lending with Your IRA

Tuesday, January 19th, 2010

My name is Luis Mirabal. For over the last 6 years, I have worked in the Corporate and investment real estate industry, I have owned & sold just about every type of multi-family property around the Passaic/Clfiton/Paterson NJ areas and Scranton/Wilkes-Barre/Poconos PA areas as well. Currently expanding our reach into Florida, Michigan, Ohio & the Dominican Republic.

Private Lending with Your IRA

You can invest through your IRA with a truly self directed IRA. This method of investing is not well known because no one receives a commission when you invest this way. Therefore, there is no motivation for anyone in the financial services business to educate, advocate or recommend something they can’t make money on.

More and more people are asking us about investing in real estate with their IRA. I think private lending through your IRA is a great way to earn strong returns and capture fantastic tax benefits! I also found out that the fastest way to build wealth is to be an investor/private lender.

So, here are a few things to consider as you learn about investing in your IRA.

You can invest your funds from your Traditional and Roth IRAs, many people do. You will need to open an account with a “Third Party Administrator” (TPA), which acts as custodian of your account – investing the funds as you direct them to do.

If you already have an IRA you will transfer funds from your existing account likely held by a conventional brokerage firm to whichever TPA you choose.

When you conduct a real estate or private lending transaction in your IRA, you will fill out a few very simple forms provided by the TPA to direct the investment.

The TPA, acting as custodian of your account, will also sign all official documents on your behalf.

There are many, but here are several companies you might consider using as a Third Party Administrators:

Equity Trust Company
Entrust Administration
Pensco Trust Company
Guidant Financial

A. B. Home Buyers LLC, Luis Mirabal nor they affiliate aren’t investment advisor, and are not qualified to provide advice on IRA rules, regulations, or eligibility requirements. Please consult with your tax and investment advisors. We are not affiliated with any of the companies listed and only provide them for informational purposes.

Copyright (c) 2009 Luis Mirabal A. B. Home Buyers, LLC http://www.abhomebuyersllc.com
Up To 15 http://www.upto15.weebly.com

Share/Save/Bookmark

Tags: , , , , , , , , , , ,
Posted in Weekly Market Update | No Comments »

Lloyds reveals plans to issue new shares

Tuesday, January 19th, 2010

Lloyds Banking Group has announced plans to sell shares at 37p in the biggest rights issue seen in the UK. A rights issue is when a company issues new shares offering them exclusively to existing shareholders at a fraction of the listed share price, in this case 59.5% lower than Monday’s closing price.

The share sale is hoped to raise £13.5bn, which would allow the bank to avoid having to take part in the government’s banking insurance scheme – a protection scheme that many feared could end up being a form of nationalisation by stealth.

Shares in the 43% government owned bank were up 1% in morning trading.

Lloyds, the UK’s biggest mortgage lender, will be issuing a total of 36.5 billion new shares, which is the equivalent to 1.34 new shares for every one that currently exists.

The sheer amount of new shares has caused concerns among shareholders regarding the value of each share after it was suggested that, like quantitative easing in the UK caused the value of the pound to fall, this would result in share value being diluted.

Robert Talbot from Royal London Asset Management said the fate of the group lies with the performance of the UK economy.

“I think it puts them into a much stronger capital position to be able to withstand whatever lies ahead. The crucial question facing the bank over the next two to three years is what happens to the UK economy,” he said.

Lloyds currently has 2.8 million shareholders, together with Britain’s largest number of private investors. A meeting for shareholders will take place in Birmingham on Thursday to approve the plan.

The share sale will cost the average shareholder £336.67. Existing shareholders are not obliged to buy new shares but failing to do so would cause their current share value to be diluted.

The rights issue is only one of Lloyds’ plans to raise around £22.5bn in total.

Lloyds currently holds a dominant position in both the personal and business banking markets, offering a range of current accounts and savings accounts, as well as mortgages.

UK Price Comparison website Which4U – Compare Credit Cards, Savings Accounts, Fixed Rate Bonds, Bank Accounts, ISAs, Loans, Mortgages, Insurance, TV & Broadband and Gas/Electric bills to find the best UK deals

Share/Save/Bookmark

Tags: , ,
Posted in Weekly Market Update | No Comments »

Mumbai Stock Market Growth Outperforms Shanghai Over Past Decade

Tuesday, January 19th, 2010

Mumbai may be on the way to overtaking Shanghai as a financial hub in the coming years based on data revealed by the Financial Times which shows that the Bombay Stock Exchange’s main index significantly outperformed the Shanghai Stock Exchange’s main index in terms of growth in the past decade.

The Bombay Stock Exchange (BSE) Sensex grew by 249 percent over the last 10 years, while the Shanghai Stock Exchange (SSE) Composite Index managed 140 percent growth. This is more remarkable given the Shanghai market has the advantage of a fixed population access; Chinese nationals can only invest in the Shanghai or Shenzhen exchanges and require special permission to acquire stocks from overseas. Indians meanwhile are free to invest where they choose, however increasing amounts of foreign capital and returning Indian investment are now flowing back to India (the Shanghai Stock Exchange places limitations on foreign investment with a only 79 foreign institutions currently able to buy and sell A (locally priced) shares).

Another influence to the Chinese market has been increases often caused by government liquidity due to the stimulus plan. Speculations on bubbles are rampant when it comes to China’s indexes, again a feature India’s exchange does not tend to have. Government interference in the Mumbai market is far more limited.

The BSE traces its roots back to 1830, with its primary trading index, the Sensex, being first compiled in 1986 with a base level of 100. The BSE is now the largest exchange in South Asia and the 12th largest globally with an estimated market capitalization of US$1.03 trillion in June 2009. There are are over 4,00 listed companies on the exchange. In contrast, the SSE was only reformed in 1990 and lists some 900 companies. It is the sixth largest exchange in the world with a market capitalization of US$2.07 trillion, but is dominated by government-owned companies and is not fully open to foreign investors. Shanghai’s primary index, the SSE Composite IX was formed in 1991 with a base value of 100.

This article was written for the Asia business news site, 2point6billion.com, by the business experts at Dezan Shira & Associates, an India and China consulting company helping foreign companies do business in China and India.

They also contribute to the India business news website, India-Briefing.com.

Share/Save/Bookmark

Tags: , , , , , ,
Posted in Weekly Market Update | No Comments »

National Bank Ratings – The Best Bank Might Surprise You

Tuesday, January 19th, 2010

Reading national bank ratings isn’t particularly fun-that’s for sure-but its’ necessary for finding the best financial institution.

So what’s the top one?

There are many-but one of the best is Bank of America (BOA).

Have I lost my mind?

I know you’ve heard plenty of bad things about them-and there are plenty-but OVERALL their pros outweigh the cons.

Trust me

Here is a look at the good and the bad to help you decide if this is the best one for you:

Pros

# Of branches and ATMs

Unless you live in the middle of nowhere, there won’t be a problem getting to the nearest branch or ATM. That’s one of the benefits of doing business with the biggest bank in the country.

Internet system

Their online system is among the top ones out here-few will dispute that.

What makes it so good?

It’s one of the most secure out there-and you don’t have to worry about ANYONE hacking your account. And it’s not difficult to figure out how to use it either.

No matter how long you’ve used the internet for transactions, it won’t be difficult to get rolling when using this.

Cons

Customer service

Everyone knows about this so I won’t harp a lot on it… but there customer service leaves something to be desired…

ESPECIALLY over the phone

Like just about any other financial company they outsource this service-and you never know what you’re going to get.

Just try and stay away from the phone and you should be fine. I recommend always dealing with a physical branch whenever possible.

And yes, like any bank it’s mostly a “branch by branch” deal of how your customer service will be. But it’s not that much worse than any other bank–trust me.

Conclusion

BOA has their problems-but on the whole they are one of the best banks in the country. For more national bank ratings check out http://www.OnlineBankRatings.com.

Article Source: http://EzineArticles.com/?expert=George_Frederick

http://EzineArticles.com/?National-Bank-Ratings—The-Best-Bank-Might-Surprise-You&id=3598080

Share/Save/Bookmark

Tags:
Posted in Funds | No Comments »

How to Protect Yourself From Bank Failures – What to Ask Your Banker

Tuesday, January 19th, 2010

Bank failures! Who would ever have thought that we would be talking about bank failures? We aren’t living in the wild West or the depression era when banks routinely went out of business and depositors lost all their money! The FDIC was created to stop bank runs after all…

But then the recession of late 2008 and 2009 struck. 100 banks went out of business in 2009, and some authorities believe that number could increase in 2010. And it’s not just little banks; major banks have also gone out of business within the last year. Some of these banks get bought up by larger banks, but some of them simply fade away…

Yes, we have FDIC insurance that will pay you back all the money you lose up to a certain amount. But! It may be years before you see that money! And what happens if you have more then the FDIC minimums? I’ll tell you what happens, you’re out of luck!

So how do you make sure your bank isn’t about to go out of business? Here is a list of several questions you can ask your banker that are appropriate and not at all pushy that will give you a pretty clear indication of how financially firm and solvent you bank really is…

First, ask for your bank’s financial statement. Any bank or thrift will be able to provide you with their most current financial statement. Most of them publish them either annually or semiannually. Try to get the most current up-to-date financial statement.

When looking at the financial statement, pay special attention to the net worth of the bank and also look and see how many workouts are listed. A workout is When the bank is helping troubled companies. Also pay special attention to the amount of real estate the bank owns or has lended out.

If your bank is a publicly traded company then you can check with the SEC, the Securities and Exchange Commission, to get all of their current financial statements. Take a look at the investments that the bank has made, are they safe investments or do they seem shaky to you?

Take a look at the bank’s track record over a long period of time. What you’re looking for here is the growth rate. Has the bank grown quickly? If so this may be a warning signal since fast growth rates can be interpreted as the bank taking Too many risks.

Finally you should ask about the banks “at-risk” loans. At-risk loans are loans that have been in default for two months to four months, that is sixty to one hundred and twenty days. Obviously the more of these at risk loans your bank is carrying, the higher the risk that the bank could go out of business.

The best thing that you can do is to make sure that you keep less money in your account than the minimum FDIC payout rate. This used to be $100,000, but has been raised recently. Check with the FDIC to see what the current rate is and make sure you keep less than that in any one bank.

And be sure to keep up on current events. Most of the time newspapers like the Wall Street Journal begin to sniff around a bank if they feel it may be in trouble. Spotting warning signs early can ensure that you get your money out in time.

Jason has been writing articles online for nearly 14 years. When not writing about finance, Jason runs a very helpful silverware chests web site where he reviews and finds deals on silverware storage for any type of home dining need.

Article Source: http://EzineArticles.com/?expert=Jason_Markum

http://EzineArticles.com/?How-to-Protect-Yourself-From-Bank-Failures—What-to-Ask-Your-Banker&id=3597066

Share/Save/Bookmark

Tags: , , , ,
Posted in Trading | No Comments »

Newer Entries »