Blog of stock trade

Buying stock on margin.

agendakita — Sun, 30 Nov 2008 14:20:13 +0000

One way to purchase stocks is to buy them on margin. Buying stocks on margin allows investors to pay for a fraction of the stock (usually around 50%, but it cannot go beyond this), and then borrow the rest from their broker.

Also referred to as leveraging, buying stocks on margin can result in a large return when the stock goes up.Buying on margin allows you to purchase more stocks by using the assets you already have as collateral for the loan, and it also lets you to react quickly to new investment opportunities because you have the added money in your account.

Trading apart from the crowd

agendakita — Wed, 05 Nov 2008 04:36:02 +0000

Trading apart from the crowd is the only way to consistently profit in the stock market. History has shown that the majority of people are wrong, the majority of the time.

Even so, it is human nature to follow the crowd. That has helped us to survive when we were hunters and gatherers. It was either eat or be eaten and if you are in a big group you aren’t going to get eaten. There is something to the strength in numbers after all. But in the world of the stock market following others only leads to disaster.

Finding good stock market picks should be done with research and logic. You should develop rules in which to trade. Yet so many people will decide what to buy based off of what the news says, or what the bloggers are saying.

This could lead to good returns during a bulls market but can also completely destroy your account when the markets are heading down. Following the crowd and buying the “Hot” picks can sometimes lead to good results in the short term, but will not make you money in the long term.

The only way to make consistent money in the market as a short term trader is to develop your own strategy. By developing a system that you trade you can make a profit in the long term.

Your system doesn’t have to be perfect all systems fail now and then. The only thing it needs to be successful is it needs to work in the long term. If after 100 trades you make $10,000 then you have a working system that can generate money for you in the long term.

By refusing to take the extra mile to develop a strategy that works you will be unable to make it in the stock market. And you will probably fall back to trading with the crowd.

For more information about the stock market visit http://www.stocks-simplified.com

Source: Free Articles from ArticlesFactory.com

Stock Market: where we are now…

agendakita — Thu, 30 Oct 2008 01:01:56 +0000

Let’s look at valuations. Asia’s valuations have reached 1.2x P/BV. That figure is all of Asia minus Japan as Japan is a weird animal on its own. Earlier this year the valuations went as high as 3x P/BV, thus Asia as a whole has corrected severely. The question is whether it can go down some more. Well yes of course it can go down some more, there is always 0.00 to that P/BV figure.

The biggest crises for the past 40 years in Asia had been in 1982 and 1998 and during those times the P/BV went as low as 0.9x. Will we get there? I don’t think so. I think we are pretty close to the bottom give or take 10%.

Its interesting to also look at what the Asian investment banks are weighting Asia as a whole with the “new clearance prices”. Most are putting just 4 countries in the Overweight category, in order of attractiveness and weightage: Korea, Taiwan, HK and Malaysia.

(more…)

Flag

agendakita — Fri, 24 Oct 2008 14:58:45 +0000

Bursa Malaysia

agendakita — Wed, 22 Oct 2008 01:17:23 +0000

The 2008 Global Financial Crisis

agendakita — Mon, 20 Oct 2008 00:29:17 +0000

Here are a few key resources
that I believe will help to give you a good idea of what all is going
on:

Canada Rated World’s Soundest Bank

agendakita — Fri, 17 Oct 2008 01:39:49 +0000

Reuters provides the gory details in “Canada Rated World’s Soundest Bank”

Canada has the world’s soundest banking system, closely followed by
Sweden,Luxembourg and Australia, a survey by the World Economic Forum
has found as financial crisis and bank failures shake world markets.

But Britain, which once ranked in the top five, has slipped to 44th place
behind El Salvador and Peru, after a 50 billion pound ($86.5 billion)
pledge this week by the government to bolster bank balance sheets.

The United States, where some of Wall Street’s biggest financial names have
collapsed in recent weeks, rated only 40, just behind Germany at 39,
and smaller states such as Barbados, Estonia and even Namibia, in
southern Africa.

The United States was on Thursday considering buying a slice of debt-laden banks to inject trust back into lending between financial institutions now too wary of one another to lend. The World Economic Forum’s Global competitiveness Report based its findings on opinions of executives, and handed banks a score between 1.0 (insolvent and possibly requiring a government bailout) and 7.0 (healthy, with sound balance sheets).
Canadian banks received 6.8, just ahead of Sweden (6.7), Luxembourg (6.7),Australia (6.7) and Denmark (6.7).

UK banks collectively scored 6.0, narrowly behind the United States,
Germany and Botswana, all with 6.1. France, in 19th place, scored 6.5
for soundness, while Switzerland’ s banking system scored the same in
16th place, as did Singapore (13th).

The ranking index was released as central banks in Europe, the United States, China, Canada, Sweden and Switzerland slashed interest rates in a bid to end to panic selling on markets and restore trust in the shaken banking system.

The Netherlands (6.7), Belgium (6.6), New Zealand (6.6), Malta (6.6)
rounded out the WEF’s banking top 10 with Ireland, whose government
unilaterally pledged last week to guarantee personal and corporate
deposits at its six major banks.

Also scoring well were Chile (6.5, 18th) and Spain, South Africa, Norway,Hong Kong and Finland all ending up in the top 20.

At the bottom of the list was Algeria in 134th place, with its banks
scoring 3.9 to be just below Libya (4.0), Lesotho (4.1), the Kyrgyz
Republic (4.1) and both Argentina and East Timor (4.2).

RANKINGS
1. Canada
2. Sweden
3. Luxembourg
4. Australia
5. Denmark
6. Netherlands
7. Belgium
8. New Zealand
9. Ireland
10. Malta 11. Hong Kong
12. Finland
13. Singapore
14. Norway
15. South Africa
16. Switzerland
17. Namibia
18. Chile
19. France
20. Spain
———— ——— ———
124. Kazakhstan
125. Cambodia
126. Burundi
127. Chad
128. Ethiopia
129. Argentina
130. East Timor
131. Kyrgyz Republic
132. Lesotho
133. Libya
134. Algeria

*SOURCE: World Economic Forum Global Competitiveness Report 2008-2009.**

Asia stocks dive in early trade

agendakita — Fri, 10 Oct 2008 01:30:41 +0000

# Japan shares plunge 8.17 per cent, South Korea 6.5 per cent and Australia 6.5 per cent

# Singapore stocks open 7.3 per cent lower, city-state in recession
# Dow Jones drops 7.3 per cent to close below the 9,000-line for the first time in five years

HONG KONG:Asia stocks dropped sharply today, with Japan’s
headline Nikkei-225 index down more than 11 per cent, while the yen and
gold rose on growing fears that no government effort so far has
rejuvenated credit markets or kept the global economy from a path to
recession.

The index lost a whopping 1,042.08 points or 11.38 per cent to 8,115.41 in the morning trade before trimming losses.

More news..

Chart DMA

agendakita — Tue, 07 Oct 2008 15:14:34 +0000

Market Summary

agendakita — Tue, 07 Oct 2008 15:10:50 +0000

October 6, 2008

Underlying economic issues plagued the stock market again last week despite the news of a freshly approved government bailout.

The rescue effort was shunned by investors as they sent stocks down for their worst week in seven years. The Dow Jones Industrial average shed 7% on the week while the S&P 500 fell an astonishing 9%.

The fact that the major indexes are trading below the long-term resistance of their respective 200-day moving averages continues to suggest that a lot of work that needed to be done in order for the panic selling to cease any time soon.