POINTS TO PONDER

Do you know how experts think abt stock market??
are they any tricks to get profits?
will this trick work?
how many work on this trick??
Any new ideas?
any new discorvery ?
some logics we need to understand ..
CRACK the STOCK MARKET.

REMEMBER we are all still learners...

1 .  OPENING RANGE BREAKOUT:

 

This is an old but effective strategy used to trade both the index as well as cash scrips.  When the stock market opens, the first 15 minutes of trading is known as the Opening range for this strategy.  No trade should be initiated in the first 15 minutes for this strategy.  In those 15 minutes, you should note down the high and the low of whichever stock or index you wish to trade using this strategy.

 

Let us assume that the markets are opening at 9 a.m., (the NSE and BSE exchanges are going to open from 9 a.m., from Friday, 18th December 2009).  The opening range will be classified as the time the market opens till 9:15 a.m.  In this period, let us take for example the Nifty, suppose in that 15-minute timespan high is 5030 and low is 5004.  It should be noted down in a piece of paper.  Once the 15-minute period is over, we should wait for either the high or the low to be broken.

 

By example, the HIGH is 5030

                          LOW  is 5004

 

Whenever, the scrip (in this example, the nifty) breaks above 5030 or below 5004, it is called the opening range breakout or breakdown.  Buy should be initiated at 5030.05 in the case of opening high breakout with the stop loss being the low of the opening range , i.e, 5004.  Or sell should be initiated at 5003.95 with the stop loss being the high of the opening range, i.e., 5030.  Profit should be booked according to one's own risk/reward appetite .

 

2.Mantras are as following:-

1. Set your financial goals:
We know how much we earn, we can earn and we can save. We should work as per our goal and limits.Be it planning for investing in Indian stock market, buying shares, buying share market recommendations, future studies, buying a car or a laptop. Identify it and put a monetary value to it. We can achieve our goals only if we systematically save for it.

2. Spend lesser on credit cards:
The plastic money is very convenient and most of us prefer this to actual money.
Since it is convenient, we tend to over spend. We should keep in mind basic rule – ‘don’t spend what you don’t have’. We should try to stay in our financial limits. Should

3. Buy an insurance policy:
For those youngsters who have dependants; insurance is a must. However, we generally undermine the importance because we are young. The sooner you get insured, the better. It will also work out cheaper because of the age factor.However, we should keep in mind there are many policies offering different return slabs of different insurance companies. We should do proper research before buying it.

4. Invest regularly:
There are various options for investing your money. One of the most popular and rewarding options is to invest in Indian stock market. From share trading or stock market investments many are earning as well as loosing money. In short if you trade then you may loose if you invest then you will earn.
But you can earn both ways condition being you should work as per stock market analyst tips or recommendations.

5. Think ‘Future:
It is never too early to start preparing for your future, plan for your retirement now,
the sooner you start the better it is for you. You will be able to see the power of compounding, when you start
investing small sums of money, but still see it grow gradually to the amount you set as target.