Monthly Archives: May 2009

Intro about Orders, Time-related orders, Condition-related orders, Maket orders, Limit Orders, Stop Loss Orders

Orders you place with your stockbroker neatly fit into two categories:1) Time-related orders2)  Condition-related ordersGet familiar with both orders, because they’re easy to implement and invaluable tools for wealth building and (more importantly) wealth saving! Using a combination of orders … Continue reading

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Unrealised Points to keep in mind while investing in stocks

Below is the best approach which i considered for investing or holding positions with stocks. Don’t follow advisory services. They are not infallible Be cautious with brokers’ advice. They can be wrong Ignore market sayings, no matter how ancient and … Continue reading

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Rating each stock according to relative degrees of safety and value

High Grade stocks whose dividend payments are considered elatively sure are rated: AAA—Safest AA—Safe A—Sound Investment Merit stocks that usually pay dividends: BBB—Best of group BB—Good B—Fair THE FUNDAMENTALIST: Lesser Grade stocks, paying dividends but future not sure: CCC—Best of … Continue reading

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Cash or margin Accounts an Introduction

Buying or selling stocks is referred to as a “trade.” For instance, if you decide to buy 100 shares of XYZ and the stock price is $100, you are trading your money for the shares. In this case, the trade … Continue reading

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Market Capitalization an Introduction

Market capitalization is defined as the total dollar value of a stock’s outstanding shares and is computed by multiplying the number of outstanding shares by the current market price. Thus, market capitalization is a measure of corporate size. With approximately 8,500 stocks available … Continue reading

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Options an Introduction-derivatives

Options are classic examples of derivatives that can be used to increase or reduce risk exposure. An option is a contract that gives its owner the right to buy or sell some asset for a fixed price at some future date … Continue reading

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Financial Derivatives Introduction

A derivative is a contract that is used to transfer risk. There are many different underlying risks, ranging from fluctuations in energy prices to weather risks. Most derivatives, however, are based on financial securities such as common stocks, bonds and foreign exchange instruments. … Continue reading

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Ten ways to Keep your protfolio healthy – Trading tips

1. The market teaches humility. As soon as you believe you know why the market acts, you will be proven wrong. Arrogance can kill a portfolio. You must be able to admit defeat and preserve enough capital to fight again. Following the point and … Continue reading

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Few common Investor Mistakes

◆ Falling in love with a position. An account has limited capital, soask yourself if the position is the best one to be in here. Are you tying up capital that can be put to better use elsewhere? Don’t get sucked into … Continue reading

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Tooling the stocks with ratios

A ratio is a helpful numerical tool that you can use to find out the relationship between two or more figures found in the company’s financial data. A ratio can add meaning to a number or put it in perspective. Ratios sound complicated, … Continue reading

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