Diversification is the Key

August 31, 2009 by admin  
Filed under Investing

I practice what I preach and I preach diversification.  The answer to keeping your financial head above water in this unpredictable market is all about diversification.  That doesn’t mean to spread your investment opportunities simply over a number of stocks or within a few commercial sectors.  It means to broaden your investment opportunities over a wide variety of investment vehicles.  What you ultimately invest in is entirely up to you but you must always be sure that you are involved in a number of investment mediums. 

For instance, while a certain amount of your portfolio will, no doubt, be invested in the equity market, you should also be involved in other areas of opportunity like commodities, options, bonds, real estate, and you should also consider the Forex (foreign exchange) market.  The Forex offers you another method of diversifying your investment strategy to protect your financial future.  I advise you to consider the potential benefits of the Forex and invite you to learn all you can about this unique method of investing.  One way to learn is to get a copy of my best selling book, Forex Made Easy…6 Ways to Trade the Dollar.  I wrote the book to be very investor-friendly and it will help you understand the Forex market and how to trade it.  It’s actually very simple and that’s why I like it so much.  The way I trade the currency markets only involves the U.S. dollar against six other major world currencies. That’s it!  Not 40,000 or more stocks or mutual funds…just six currencies!  I like that kind of simplicity. 

Plus, if you are considering investing in the stock markets, you might want to consider issues that offer dividends with yields that exceed the 2.5% mark.  That’s probably much better than yield you can get at your local bank.  Check out companies that are showing brisk growth in such industries like the financial, energy or consumer sectors. Just do your homework and you’ll find something that will fit the mold and desired direction of your portfolio. 

Determine what types of investments make you most comfortable and which investments make you uneasy.  If you have trouble sleeping at night because you’re worried about your investments then you shouldn’t be there.  Educate yourself daily through various media sources available to you; books, magazines, the Internet, television and radio.  Go to workshops and perhaps consider taking a class at the local college.  Always practice trading on paper before you invest any of your hard earned dollars in anything you are not familiar with.  

Listen, these are some extremely volatile days.  It seems like the financial markets have tried to maintain some kind of balance but recently this hasn’t been all that successful on a global basis.  Political rhetoric, deep concerns about the world’s economy, the growing federal budget deficit, and the daily fears of terrorism around the world has taken its toll on all of us over the past couple of years but now is the time to rebuild.  You should always keep in mind that no matter what the Dow is doing, no matter how the NASDAQ is trading, there are always investment opportunities that are increasing in value.  Just remember to always practice the one method of cutting the odds of losing your valuable investment dollars.  Assure that your portfolio is as diversified as possible. 

(ArticlesBase ID #1180543)

www.whoisJamesDicks.com -For more than a decade, James Dicks has been one of the nation’s leading educators on the subject of Real Estate, Stocks, Options, the Foreign Exchange Market and empowering investors to handle their own investments.

James is living his dream by helping investors and businesses overcome the hurdles of reaching their financial goals. Millions of people have heard James’ message of diversification, money management and financial freedom and thousands have attended one of his many free workshops. Increasing investment knowledge is James’ goal and he strives to reach this goal by using a common sense approach that investors of all types can utilize on their road to financial freedom.

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These Is What You May Need To Know About Mutual Funds

August 30, 2009 by admin  
Filed under Investing

Mutual funds are a type of investment scheme. They bring together resources from many different investors and then these stocks are traded in a number of other different securities. The risk involved in these investments is minimized by the fact that the stocks are not individually but communally owned. They have a long history and they have long been in existence and they are proven to be a reliable source of that extra income that everyone is looking for.

Although they were badly affected by the market crash that was experienced in 2009, today, they are among the best performing investments around. After the legalization of the Securities Act in 1993 and the Securities Exchange Act in 1934, the laws have proved very useful in protecting the operations of the investments. The laws disclose useful information about mutual funds, including what the investors and managers are entitled to.

The investments can invest in many other types of securities as well. The most common are cash instruments, stocks and bonds. All these securities are further sub-divided into sub-categories depending on the risk factor, the industry to which the security belongs such as technology or utilities. The securities attract differing rates of returns depending on the regulatory, accounting and tax rules governing them.

In comparison with other types of investments, mutual funds offer an investor several advantages. One of them is that the cost and fees chargeable by the investment manager are shared among all investors that have a stake in that pool of investment. Investors also have a say on the way their money should be handled and the types of securities that should be or not be bought on their behalf. This way, the risk is diversified at the consent of shareholders.

(ArticlesBase ID #1176897)

Peter Gitundu Creates Interesting And Thought Provoking Content on Mutual Funds. For More Information, Read More Of His Articles Here ABOUT MUTUAL FUNDSIf You Enjoyed This Article, Make Sure You SUBSCRIBE TO MY RSS FEED! To Receive My Most Recent Posts & Updates.

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Bullet Advisory Analyses Indian Stocks NSE BSE

August 30, 2009 by admin  
Filed under Investing

Bullet Advice For Indian Stocks Weekly –Nifty touches 52-week high

BSE Sensex (15922.30) and Nifty (4732.35) closed  4.5 % and 4.51% up respectively last week.Nifty Future September was quoting at 5.45 points premium.Nifty Call Option September 4800 was very active.Support for Sensex is at 15530 and Nifty at 4590.Resistance for Sensex is at 16340 and Nifty is at 4870.Crude oil was at 72.87 $.

Tata Steel declared Q1 results which.were below market expectations.Shares of NHPC will start trading in BSE and NSE on 1st September 2009.RNRL-RIL case hearing was adjourned to 20th October instead of 1st September 2009.

Unitech and Tata Steel added Open Interest in September series.Dabur and FinanTech shaded Open Interest.Huge position was build up at DLF September Call Option Strike Price 400.Good build up was also seen at Unitech  September Call Option Strike Price 100..

1)JPHYDRO(84.95) Lot Size-3125

Buy One Call Option of September Strike Price 85@ Rs.5.85

Sell One Call Option of September Strike Price 95@2.00 Rs.

Premium .Paid=5.85*3125=.18281.25 Rs.

Premium Received=2*3125=6250.00 Rs.

Net Premium Paid=18281.25-6250= 12031.25 Rs.

Maximum Profit==95-85=10*3125=31250-12031.25=19218.75 Rs.

Maximum Loss=12031.25 Rs.

Break Even Price=88.85

2)Reliance(2071.50) September Future-Lot Size 150 shares.

Buy One Lot September Future @2071.50

Sell One Call Option of September Strike Price 2160@50.00 Rs.

Premium Received=50*150=7500.00 Rs

Maximum Profit=2160-2071.50=88.50*150==13275.00+7500.00=20775.00 Rs.

Max Loss=Unlimited.

Trend of Major Stocks

STOCK TREND Days WeeklyTrend MonthlyTrend

  1. BHEL.NS        2          Rising   Falling
  2. ICICIBANK.NS         1          Falling  Falling
  3. INFOSYSTC.NS        7          Rising   Rising
  4. ITC.NS            1          Falling  Rising
  5. MARUTI.NS   2          Falling  Rising
  6. SBIN.NS         2          Falling  Falling
  7. TATASTEEL.NS         2          Falling  Rising
  8. TCS.NS           6          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

  1. BHEL.NS        2330.15           61.37   59.74   14.07
  2. ICICIBANK.NS         763.6   58.11   55.94   12.98
  3. INFOSYSTC.NS        2190.65           64.11   67.49   38.23
  4. ITC.NS            236.6   33.5     51.06   59.03
  5. MARUTI.NS   1421.4 54.73   60.62   21.91
  6. SBIN.NS         1781.75           51.14   54.48   10.84
  7. TATASTEEL.NS         438.65 48.53   49.78   17.11
  8. TCS.NS           540.8   60.53   60.12   22.27

Trading Idea

1)Suzlon(93.65)Buy this stock in decline and trade.

2)IDBI(102.25) Buy this stock in decline and trade.

Bullet Advisory Indian Stocks-India’s Top Most No.1 Best Stock Market Advice Blog,Hot Stock Tips Calls by Expert Technical Analyst Narendra Nainani of India.Most Preferred and Successful  Paid Subscription Stock Tips Calls Website of India.Excellent Success Ratio of more than 90% with Superb trading ideas.Most Successful Intraday Stock Future Calls Provider Service Indian Share Market.

Website   http://www.narendranainani.blogspot.com

By

M-+919898162770

Narendra Nainani
AHMEDABAD, GUJARAT, India
Narendra Nainani is renowned technical analyst and stock market advisor of INDIA having experience of more than 26 years having excellent success ratio.Expert in Derivatives Products-Futures & Options,Intraday,Short Term ,Medium Term,Long Term,Portfolio Management,IPO & Mutual Fund Advisor.Covered regularly by E TV & Business Magazines like The Economic Revolution for Market views.
India’s top most no.1 best stockmarket advice blog hot stocktips calls by expert technical analyst of India.Most preferred paid subscription stocktips calls website India.Excellent success ratio of more than 90%.good superb trading ideas.M-9898162770
Website MostSuccessfulIntraDayStockFutureTipsProviderIndia.

Article Source:http://www.articlesbase.com/investing-articles/bullet-advisory-analyses-indian-stocks-nse-bse-1175210.html

Dow Nasdaq U.S.Stocks Technical Analysis By Bullet Advisory

August 29, 2009 by admin  
Filed under Investing

Dow Nasdaq U.S.Stocks Technical Analysis By Bullet Advisory

Bullet Advice for Indian Stocks-U.S.Market Trend

DOW (9544.20) and NASDAQ (2028.77) closed 0.4% and 0.41% up respectively last week.Support for DOW is at 9350 and NASDAQ 1960.Resistance for DOW is at 9720 and NASDAQ 2090..

Trend Of Major Indices and Stocks

Symbol Trend No. of Days WeeklyTrend Month

^DJI     Bearish 1          Falling  Rising

^IXIC  Bulllish  8          Falling  Rising

AA       Bulllish  2          Falling  Rising

AXP    Bulllish  3          Rising   Rising

BA       Bulllish  7          Flat!     Flat!

C         Bulllish  2          Rising   Rising

CAT    Bearish 3          Falling  Rising

DD       Bulllish  1          Falling  Rising

DIS      Bearish 1          Falling  Rising

EK       Bulllish  4          Rising   Rising

GE       Bearish 1          Falling  Rising

HD       Bulllish  4          Rising   Rising

HON   Bearish 1          Rising   Rising

IBM     Bearish 1          Flat!     Flat!

INTC   Bulllish  4          Rising   Rising

IP         Bulllish  8          Rising   Rising

JNJ      Bearish 3          Falling  Rising

JPM     Bearish 1          Falling  Rising

KO      Bearish 1          Falling  Rising

MCD   Bearish 1          Rising   Falling

MMM  Neutral 1          Falling  Rising

MO      Bearish 1          Rising   Rising

MRK   Bearish 1          Falling  Rising

MSFT  Neutral 1          Falling  Falling

PG       Neutral 1          Falling  Rising

T          Bearish 1          Rising   Rising

UTX    Bearish 1          Rising   Rising

WMT   Bearish 2          Rising   Rising

XOM   Bearish 1          Rising   Rising

Useful Technical Indicators for Major Indices and Stocks

Symbol Close PVBreakout MFI-21 RSI-14

  1. ^DJI     9544.2 Loser   59.4     66.92
  2. ^IXIC  2028.77           Neutral 56.99   63.33
  3. GE       14.08   Loser   65.48   58.35
  4. IBM     118.22 Loser   50.54   55.22
  5. MSFT  24.68   Loser   68.69   63.05
  6. PG       53.19   Neutral 40.45   49.79

MFI=Money Flow Index

RSI=Relative Strength Index

PV=Price Volume

Trading Idea

(1)INTC(20.25)Buy at declines and trade.

By

Bullet Advisory Indian Stocks-India’s Top Most No.1 Best Stock Market Advice Blog,Hot Stock Tips Calls by Expert Technical Analyst Narendra Nainani of India.Most Preferred and Successful Paid Subscription Stock Tips Calls Website of India.Excellent Success Ratio of more than 90% with Superb trading ideas.Most Successful Intraday Stock Future Calls Provider Service Indian Share Market.

.

M-+919898162770

Website http://www.narendranainani.blogspot.com

Narendra Nainani is renowned technical analyst and stock market advisor of INDIA having experience of more than 26 years having excellent success ratio.Expert in Derivatives Products-Futures & Options,Portfolio Management.Nifty Future,Nifty Options,Stock Future,Stock Options,Nifty Call Put Options Calls Tips,Stock Future Option Trading Recommendations Advice.Best Advisor India

Narendra Nainani
AHMEDABAD, GUJARAT, India
Narendra Nainani is renowned technical analyst and stock market advisor of INDIA having experience of more than 26 years having excellent success ratio.Expert in Derivatives Products-Futures & Options,Intraday,Short Term ,Medium Term,Long Term,Portfolio Management,IPO & Mutual Fund Advisor.Covered regularly by E TV & Business Magazines like The Economic Revolution for Market views.
India’s top most no.1 best stockmarket advice blog hot stocktips calls by expert technical analyst of India.Most preferred paid subscription stocktips calls website India.Excellent success ratio of more than 90%.good superb trading ideas.M-9898162770
Website MostSuccessfulIntraDayStockFutureTipsProviderIndia.

Article Source:http://www.articlesbase.com/investing-articles/dow-nasdaq-usstocks-technical-analysis-by-bullet-advisory-1175221.html

SO WHERE IS THE CORRECTION? August 28, 2009

August 28, 2009 by admin  
Filed under Investing

Being Street Smart

Sy Harding

SO WHERE IS THE CORRECTION?  August 28, 2009.

There’s been a significant change in the mood on Wall Street and therefore in the financial media, in recent weeks. After perpetual bullishness for months, it seems that independent analysts, and even Wall Street spokesmen, pretty much now agree the market is overbought and overdue for a correction.

The only debate seems to be that those bullish on the market say it will be only a minor five or ten percent pullback, while bears expect something worse.

At first glance, it does make me wonder to see so many expecting a correction, the only debate being its severity, given the market’s history of doing whatever it takes to fool the majority.

But then when I look around, I realize that it’s Wall Street professionals and insiders, for instance Mohamed El-Erian, CEO of bond-trading giant PIMCO, Jeremy Grantham, chairman of giant money-management firm GMO, etc., long-term very astute and successful, so-called ‘smart money’, previously bullish, who have now turned bearish. It’s Sam Stovall, chief investment strategist for Standard & Poor’s, and Art Cashin, director of NYSE floor operations for UBS.

When we look at the so-called ‘not so smart’ money, the groups that are so often wrong at market turning points that they are known as a ‘contrary’ indicator, we don’t see expectations of a correction, but the excessive bullishness and confidence usually seen at rally and market tops.

For instance, the Investors Intelligence Sentiment Index is at 51% bullish this week, its highest level since December, 2007. Its bearish percentage is just 19.8%, its lowest level since the market top in October, 2007.

At last look a couple of weeks ago, traders at Rydex had two and a half times as much money in leveraged bullish funds as in leveraged bearish funds, a higher ratio of bullishness than when the market topped out into the four straight down weeks in June.

Then there is the VIX index, also known as the Fear Index, which is based on the sentiment of options traders. It has plunged from a record level of fear and bearishness, 81 on the index, at the market’s November low, to a benign and unworried 25.

So there we are, with the smart money warning of a correction, while the usually wrong groups are at high levels of bullish sentiment usually seen at market tops.

But it’s been that way for several weeks.

So where is the correction?

And indeed, why does the smart money expect a correction?

Well, not only does the market have a history of doing whatever it must to make the majority of not so smart money wrong at the turning points, but it also has just as clear a history of correcting its excesses. And it’s difficult to claim that there are not substantial excesses currently in the market.

The most obvious and frequent observation is the overbought condition technically, with the major indexes over-extended above their 20-week moving averages to an extreme degree. Historically that has usually resulted in a correction back down to at least retest the potential support at the m.a. But more often than not it overshoots on the downside as it did on the upside, and breaks below the m.a.

A decline just to their 20-week moving averages would be a 10% correction in the S&P 500 and Nasdaq, about the worst of what bulls expect. A break below the moving average would be something more, bears calling for a retracement of half the rally off the March low, or worse.

Seasonality is also often mentioned in the ‘smart money’ warnings, references to the historically most negative three-month period of August, September and October.

Then there are concerns that in its huge rally off the March low the market has factored in better economic conditions ahead than are likely to be seen.

So, a very overbought market, extreme investor bullishness, unfavorable seasonality, a market that’s ahead of reality, selling by insiders, and warnings from ‘smart money’.

So where is the correction?

Those expecting it are shaking their heads, wondering the same thing.

PIMCO’s El-Erian refers to the market as being on a ‘sugar high’, and says we know the letdown when we come off the energy created by a sugar high, but we can’t pinpoint the hour when it will begin.

Each week it has been said the market decline will begin the next week. Art Cashin’s favorite phrase each week for the last month has been “It should all become clear by next Friday.”

A few weeks ago the newly bearish (as well as the already bearish) were pointing to August as frequently being a reversal month into September, which in turn is historically the worst month of the year. Three weeks ago, after four straight up-weeks, the market was down for the week, and that was probably the beginning. Two weeks ago, it was the old adage of sell on the beginning of Ramadan (August 22 in North America this year). Last week, it was that once the positive activity associated with last Friday’s options expirations are history, the correction would begin this week.

But it hasn’t happened.

This week it is that typical positive action around the end of the month, and the lack of participants, is holding the market up. But when September, historically the worst month of the year, arrives next week, and big investors and institutional traders get back from their summer vacations, and volume picks up, watch out.

Well, maybe. Meantime, no wonder investors remain bullish and confident. Nothing is coming of the warnings, no matter their source.

Sy Harding is president of Asset Management Research Corp, publishers of the financial website www.StreetSmartReport.com, the Street Smart Long/Short Stock Advisor, and a free daily market blog, www.syhardingblog.com.

Sy Harding is CEO of Asset Management Research Corp., author of 1999’s Riding the Bear and 2007’s Beat the Market the Easy Way, editor of www.StreetSmartReport.com, and www.SyHardingblog.com.

Article Source:http://www.articlesbase.com/investing-articles/so-where-is-the-correction-august-28-2009-1173366.html

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