Posts

Showing posts from March, 2010

Why stock prices fluctuate?

        World of Finance by M.Vijaya Sai Stock market investment is a game Successful investing requires more than just a little bit of knowhow and a dash of luck. It requires a cool head, an analytical mind, and the ability to make quick money decisions. This is especially true when investing in the Stock Market. Investing naturally comes with a level of risk. The market’s activity fluctuates on a daily basis during the opening and closing bells. Factors Affecting Stock Prices There are two basic factors that affect the movements of stock prices. Fundamental Factors Fundamental Factors Fundamental Factors Following are the major Fundamental Factors which are affecting the price of stocks Demand and supply Market Cap Earnings per share (EPS) Price/Earning Ratio (P/E Ratio Demand and Supply Demand and Supply is the fundamental factors of economics, which holds good for the equity market as well. The price of stock is d

CNBC -Classroom session on trading stocks

        World of Finance by M.Vijaya Sai As part of continuous endeavour on enhancing investors on stock market trading , here is a CNBC TV18 Classroom session from technical analyst on trading stocks . This session elaborates on stock technical analysis and it's use Share |

Formula for Intraday traders

Image
        World of Finance by M.Vijaya Sai We often hear market analysts or experienced traders talking about an equity price nearing a certain support or resistance level, each of which is important because it represents a point at which a major price movement is expected to occur. But how do these analysts and professional traders come up with these so-called levels? One of the most common methods is using pivot points, and here we take a look at how to calculate and interpret these technical tools. How to Calculate Pivot Points There are several different methods for calculating pivot points, the most common of which is the five-point system. This system uses the previous day's high, low and close, along with two support levels and two resistance levels (totaling five price points) to derive a pivot point. The equations are as follows: R2 = P + (H - L) = P + (R1 - S1) R1 = (P x 2) - L P = (H + L + C) / 3 S1 = (P x 2) - H S2 = P - (H - L) = P - (R1 - S1)

Real Estate Investments

        World of Finance by M.Vijaya Sai Real estate is usually held as part of a larger portfolio, and is generally considered an alternative investment class. Real estate fits well as part of a portfolio because it has several qualities that can enhance the return of a larger portfolio, or reduce portfolio risk at the same level of return. Advantages Some of the benefits of having real estate in your portfolio are as follows:   1 .Diversification Value - The positive aspects of diversifying your portfolio in terms of asset allocation are well documented. Real estate returns have relatively low correlations with other asset classes (traditional investment vehicles such as stocks and bonds), which adds to the diversification of your portfolio. 2. Yield Enhancement - As part of a portfolio, real estate allows you to achieve higher returns for a given level of portfolio risk. Similarly, by adding real estate to a portfolio you could maintain your portfolio returns w

Tips for Intraday Trading

        World of Finance by M.Vijaya Sai Check buying volumes Before buying check out the buying and selling quantity (volumes).If buying volume started increasing then the stock may go up and if selling volumes start increasing the stock price may come down.   Check derivative status If possible try to check out the derivative of the stock which you want to trade.If derivative of that particular stock is going up with increasing buying volumes then you can immediately grab (buy) that share/stock. Most of the time it is seen that if the derivative price goes up, then its share price also goes up. Wait for the target price to buy For example, if buy is given at 150.5 then don’t buy below this price, only buy at 150.5 price or slightly higher then price.Because the given buy price may be the resistance price, if it breaks then share price goes up or else may not go up above 50.5. So plan to buy at given targeted price, don’t buy below target price. Strictly mai

Ethics from Warren Buffett -"FINANCE GURU"

        World of Finance by M.Vijaya Sai What does it take to become a successful investor? Brilliance or Smartness? Neither, Success in investing doesn’t correlate with I.Q. Once you have ordinary intelligence, what you need is the temperament to control the urges that gets other people into trouble in investing. When do you decide to invest in a firm? The best thing that happens to us is when a great company gets into temporary trouble. We want to buy them when they’re on the operating table. (Mr. Buffett bought Coke when it had its biggest fiasco after launching New Coke; he bought American Express when it went through a loss making phase in the early 60’s) What do you look for in people when they come to sell their firms to you? I don’t look for the usual credentials such as an MBA, a pedigree (Harvard, Wharton), or cash reserves or market cap of their firm. What I look for is just a passion in their eyes; I think that’s the key. A person who is hungry will al

Import and Export Procedure

Image
        World of Finance by M.Vijaya Sai EXPORT-IMPORT PROCEDURE 1   Seller and Buyer conclude a sales contract, with method of payment usually by letter of credit (documentary credit). 2    Buyer applies to his issuing bank, usually in Buyer's country, for letter of credit in favor of Seller (beneficiary). 3    Issuing bank requests another bank, usually a correspondent bank in Seller's country, to advise, and usually to confirm, the credit. 4    Advising bank, usually in Seller's country, forwards letter of credit to Seller informing about the terms and conditions of credit. 5    If credit terms and conditions conform to sales contract, Seller prepares goods and documentation, and arranges delivery of goods to carrier. 6    Seller presents documents evidencing the shipment and draft (bill of exchange) to paying, accepting or negotiating bank named in the credit (the advising bank usually), or any bank willing to negotiate under the terms of cred

Which bank should I Investment my Funds?

        World of Finance by M.Vijaya Sai Finding the best bank will require some comparison shopping, since as with anything else, the best deal isn't likely to find you, you'll have to find it. Of course, it's up to you to decide how much time you want to spend looking for the best bank for your needs...remember that time is money. The internet is usually the easiest way to comparison shop.However, if you have a lot of questions that might not be answered on a web site, or if you just want to see how attentive a bank is, you might prefer to visit the local branch, especially once you've narrowed your choice down to just two or three contenders. You will probably make your  decision based on servises and fees. Below is a list of features and services you might be looking for, and a list of fees you should be aware of, which you can use to make your comparison shopping easier. If you're considering online banking, be sure to read the online banking s