Recently have been hearing a lot about people getting more attracted towards forex trading compared to equities and commodities, is it because of higher risk-reward ratio or because of its liquidity. Lets us understand about it in detail.

Forex trading provides an unique opportunity of trading throughout the day i.e. 24 hours along with its liquidity meaning there is always an buyer available for every seller. Forex traders also have an advantage of leveraging their capital 100 times of base capital, which is something that is not feasible in equity and commodities. Forex market has a cycle, so high and low can be determined to make more profits.

There couldn’t have been a better verdict other than what we got and i.e. Congress winning the Loksabha elections without the support of left meaning we would be having a stable government for coming 5 Years. Now congress can totally concentrate on pushing the pending reforms which were pending during last 5 years because of left opposition.

It was good to see that common man has given more preference to the actual work that is done by Dr.Manmohan Singh government with regard to loan waiver for farmers and timely releasing various fiscal stimulus packages to make sure that growth is not impacted much.

Youth of India is not interested in voting for a party which does not talk about growth but always commands vote in the name of religion and cast. Cheers for Congress and Cheers and the team at Stock21283 wishes Dr.Manmohan singh All the Best.

Year 2008 provided lot of action and drama starting with Stock Market crash of 70% , Collapse of Global financial system and their downfall led by Banking legends like Lehman brother’s, Biggest bailout of  Freddie and Fannie and AIG, Merger of Meryll Lynch with Bank of America, Banking license to Goldman Sachs and Morgan Stanley, Recession in USA, Europe, UK, Japan and Honkong. Slowdown in emerging economies like INDIA and CHINA, Commodities at all time high which Included Gold, Silver, and Crude which made a high at $147 per barrel and then falling all the way down to $32 per barrel.

Bailouts has become a fashion in which no country was left behind not even INDIA where lot of drama happened with regard to exposure of Indian banks to LEHMAN Brother’s and one stock which got heavily punished in all this was ICICIBANK, It took lot of efforts from Finance Ministry, RBI and Management of ICICIBANK to regain confidence of Investors.

Year 2008 would be remembered for lot of things that would include rate cuts announced by RBI. Stimulus package by Government to boost economy, More than 20 terrorists attack,  Job Cuts ,  Pay  cuts , Corporate Governance, Ranbaxy and Daichi deal, Satyam and Maytas Deal, Famous battle between Ambani brothers with regard to KG Basin Gas price which is impacting lot of projects and companies… & at the end MUMBAI ATTACKS where innocent people lost their lives, WHAT A YEAR….!!!

A year which everyone would like to forget and move on but inspite of so many events which have shaken the strongest of economies, INDIA is not that much impacted because of strong financial system and hats off to Finance Ministry, SEBI and RBI for their commendable job. Hope this New Year brings with it lot of new things and Happiness along with it, So Wish You All Happy New Year, 2009………………………………………

Genuine Analyst
With the various changes /wild swings of the market that have taken  from last Oct when there was a P notes issue ,then the huge fall in January and then the market going into a Bear market and to add to the injuries that last three weeks of continuous downfall most of the layman investors and the traders must have lost  money and not little money but lots of money … one of the news channels was even showing that one of the four patients that go to the psychiatrist is depressed because of the share market The so called analysts have most of the time not been able to read things and in spite of charging healthy service fee have not been able to save the clients and the sad part is when the client loses money [ Big money ]  and every time most of them say we will help you recover but hardly anytime makes any attempt

No analyst can be 100 % perfect and that’s understood and acceptable  but if one can have a average of above 70-80 % accuracy even then the job is well done but things are reverse … My experiences with lots of the analyst

1.They have a big echo problem to accept that even they can be wrong and when they go they blame the market …. Very funny explanations given of why their calls went wrong   bottome line will be they will be blaming the market  … a easy way to get away

2.When they charge a service they should give a basic training on how to trade ,how much to trade in each trade,pros of corns of trading in cash/stock futures ,option trading  etc but no one gives … most of them are focused on their service fee and sadly they just dnt care about the clients

3. They have to have  conscious that they are charging a service fee so the attempt should be help clients make profits ,recover losses if any …. The basic thumb rule each the analyst  needs to have to help protect capital  and at the right opportunity help making profits  but hardly anyone sincerely follows this

4. 9 out of 10 times most of this analyst say we will help you recover losses but no one cares ,the client is left in the desert with no water

Clients need to understand rather than looking for quick Money or Free tip options better to get associated with genuine analyst who trades himself in his trade ,is interested in his clients capital protection and has help making profits

Till the middle of next year /end of next year its going to be more of trading market and even if we invest we need to understand/ learn when to enter and when to exit and both of this has to be done with proper guidance ,if done with guidance the lost money can also be recovered and more money can be made

FOLLOW ONE BASIC RULE – TRADE WITH STOPLOSS AND TRADE /INVEST ONLY 20 % of the total capital that you have and of course trade/invest under guidance.

Thanks to Mr.Chetan Tanna

“Credit bubbles are created during euphoria and busts during financial turmoil.” Well it sounds good but then why are they created first and who is responsible for it? The answer is we common people, we are the one’s who over emphasize things when the going is good and vice-versa. Nevertheless, the ultimate sufferer of these bubbles is the common person who loses all his savings and loses trusts.

Using plastic cards by American consumers and reducing interest rates in times of financial turmoil was the reason for this situation then who will save emerging economies who are impacted and to safeguard their economies they have started reducing interest rates, What will be it’s impact on the economy in the long run? People have lost faith, Banks don’t want to lend, defaults have not yet started in India but if the situation don’t improve then it won’t be too long before a bubble bursts in India as most of the middle and lower middle class have started using plastic cards and living a lavish life.

It is high time for all of us to understand our own financial position and time to play safe rather than having a lavish life, It’s time to save and cautious. If things do not improve in few months then many job cuts and distress will be seen which will have an impact that could take years and years to redeem confidence.

If Singh is King was a good movie then Cash is king won’t be the wrong title either in the present scenario of market condition, As analyst’s say that Invest for long term and you will make good money but see the last one year and people have lost money by staying long term? Therefore, is staying long term wrong or Being prudent and booking profits consistently right.

Well I would say that being prudent and booking profits on every rise is the mantra for consistent profits and building wealth, it is not bad to be long but then booking profits is also important. Take an example of the food items and consumables which you store in have in your house or for that matter thinking about fresh air or planting water, In all these things changing is important then why people don’t apply the same rule to market and their portfolios?

Portfolio churning and booking profits is as important as watering your plants, Wealth creation is an art and it can be created by proper planning, It is not that people are born rich they all know how to take that calculated risk and grow money on consistent basis.

Is it right to blame FII’s for pulling out their money? Well the answer is no because when the market does well then it’s the FII’s who buy and when they buy an euphoria is created, So does that mean that their buying and selling determines the market sentiment? Well it will not be wrong to say that because when FII’s buy lot of foreign inflows start coming into India, thus rupee becomes stronger, and people start talking of cheap valuations and start buying.

The problem with common trader or Investor is that they don’t take decision on their own, their decision and thoughts are determined on someone else’s opinions and views, When the market is up people tend to forget the basics which proves to be fatal during a market fall. Today there is so many outcries about FII’s selling and liquidating their stocks and that’s the reason why market is falling and every analyst want to have a ban on short selling. But have they ever thought that FII’s are not the only ones who are selling, But there are small investors also who realize that to make money in a falling market you have to short, So what’s the point in crying over FII’s.

Ultimately, everything depends on which side you are whether you are a buyer or seller, Also lot depends on your awareness about the news flows that impact. The problem with most of the Investors is that many don’t have time to think and many don’t understand the basics, All they want is quick money and come with wrong notion that market is a place to make quick money which is right provided you know what to do otherwise it can result in wealth erosion. So stop blaming FII’s for the fall of market and start thinking yourself as to who is responsible, I am sure you will find a appropriate answer.

A pre-Market call is nothing but calls given before the market hours or before the market begins. Pre-market calls always helps an investor to mentally prepare himself for the stocks in which he wants to trade and since they are given before the market opens they provide ample time to an individual to himself analyze and mentally prepared with a strategy to trade.

There is a general belief in people’s mind when they think that pre-market calls do not work which is wrong and that is one thing, which we prove wrong. Well it is the levels which work so whether the calls are pre-market or live doesn’t make much of a difference what you have to do is watch out for that particular level where you can buy or sell. They provide great advantage compared to live calls, as you know at what price you have to buy or sell a particular stock.

In live calls, stocks are not bought at the recommended price rather there is always a difference that arises and thus proves to fatal sometimes when the market is trading in very narrow range and people might have to incur losses. One thing, which I have always believed, is that trading is 95% based on your mindset and 5% on calls.