Stock Pick – Tiffany And Co

TIFFANY AND CO

On Monday Tiffany & Co posted higher than expected quarterly result. The company has reported increased sales overseas and at the same the newly opened stores has helped to counterbalance the effects of a slowing US economy as that has put a strain on consumer spending.

The company reported that its net sales increased 15% in the fiscal year ended January 31, 2008 and rose 10% in the fourth quarter. Net earnings per diluted share from continuing operations excluding non-recurring items increased 22% to $2.33 in the year and increased 19% to $1.27 in the fourth quarter.

The company’s net sales in the fiscal year increased 15% to $2,938,771,000. On a constant-exchange-rate basis, which excludes the effect of translating foreign-currency-denominated sales into U.S. dollars, net sales increased 13% and worldwide comparable store sales increased 7%.

The company’s sales rose 10% to $1.05 billion. The company is expecting, for the current year, the net earnings per share to rise by 11% to 15% to a range of $2.75 to $2.85.

The Company repurchased and retired 9,299,491 shares of its Common Stock in the fourth quarter at a total cost of $418,374,000, or an average cost of $44.99 per share. In the year, the Company spent $574,608,000 to repurchase 12,374,000 shares of its Common Stock at an average cost of $46.44 per share. In January 2008, the Board of Directors increased by $500 million the amount authorized for future repurchases through January 2011. At January 31, 2008, the Company had $621 million available for future repurchases.

About Tiffany And Co

Tiffany & Co. is a holding company that operates through its subsidiary companies. The Company's principal subsidiary, Tiffany and Company, is a jeweler and specialty retailer, whose merchandise offerings include an extensive selection of jewelry (83% of net sales in fiscal 2006), as well as timepieces, sterling silverware, china, crystal, stationery, fragrances and accessories.

Through Tiffany and Company and other subsidiaries, the Company is engaged in product design, manufacturing and retailing activities.

Company’s performance on stock market

After touching the January’s low, this stock had performed quite well on Wall Street. At current situation, after the quarterly result, it is expected the stock will resume its upward movement.

Technically the stock seems to have resistant at $45. Once the stock takes out $45 resistant successfully with huge volume, the immediate target seems at $50 and from mid to long term, the stock has potential to touch $60.

From long term investor’s point of view, I think systemic small-small accumulation of Tiffany stock will be a very good strategy at current market scenario. Even though the Wall Street has gained quite considerably after the two month’s turmoil, it certainly cannot be granted that Wall Street is now completely out of woods. There is lot of uncertainties out there, and any slight negative news from economy front can drag the market southward.

If the Dow Jones and NASDAQ tends to move southward then this stock will also follow their same direction, but at lower level of $35, this stock will be a very good buy with huge upward potential and very low downside risk.

Mid Term Target: $50
Long Term Target: $60

Disclaimer: The views, investment and stock trading tips expressed on this online stock trading blog are solely from the blog owner. The blog owner advises users to check with certified experts before taking any stock trading or stock investing decision.

Current stock market behavior – best opportunity to learn

Since last couple of months, the Wall Street has been behaving more weirdly. But on the other hand, it has given a very good opportunity for newbie stock traders and stock investors to learn more about how the stock market works.

The stock market has shown
• How wildly it can behave
• How the negative sentiment can affect the investor’s pocket
• How the traders can easily burn their hands if they do not put perfect stock market management strategy in place.
• How the maximum of the bull market strategies does not work in bear market
• How losing of money is more easy then making it
• How drastically the positive things can turn into negative
• How non-fundamental stock tends to fall heavily

The stock market is showing its ugly face. This is a tough market and making money in this tough market is even tougher. But one who is able to live with this and can implement proper and perfect strategy can still make money.

You have to assume that stock market will never work according to what you think and it will never allow you to make money. But it is your skill and knowledge that you need to use to pull out the money from the stock market.

The stock trader should know how the significant dip in stock market is an opportunity to enter and how any significant rise is an opportunity to exit.

The investors should need to examine the highly defensive stock and to remain invested in such a stock that has very good fundamentals and has very good growth prospectus ahead.

Hard decision, high risk taking ability, patience and cool mind are supportive tools that help to implement this in more perfect way to make money in stock market.

Economics worries make the Dow Jones to fall 300+

Wall Street saw one more bloodbath day on Friday. The bloodbath day was more with the concern of economic worries. It seems like the Wall Street has granted that the recession is almost entered or at the door of the US economy.

If for time being we grant that the recession has almost entered and it is affecting the US economy then we should also conclude that this market will lack investor. If investors face out from this market then certainly there will be more falls or the market will stick in range with slowing and sliding waiving upward movement and will start moving downward.

If such is the situation then small retail investor should remain away from the stock market. However retail online stock trader those who are mainly doing online stock trading from their home can enter the market near to the strong support level of 12,000 with strict stop loss of same.

Though the fear of recession is eating out the Wall Street, I strongly feel the Dow Jones should hold 12,000 levels. I estimate that for at least next 3-4 months the Dow Jones should remain in zone of 12,000 to 12,700 levels. But still it is too early to estimate because market reacts with situation. Any positive step from Fed and US government can fuel the market upward.

Wall Street end Mixed Amid Inflation Fears

February 20, 2008

The major indices on Wall Street opened sharply higher on Tuesday and gave up a big early advance and closed mixed with modest losses due to weakness in financials and tech. Stock investors were concerned after the oil prices closed above $100 for the first time and put fuel on fears that inflation will baffle on already troubled economy. The rising inflation fear might make the Fed think again its preconception in the direction of lowering interest rates to help the troubled economy.

The market mood seems more cautious at this point of time. Investors are positioning themselves ahead of important economic reports that could give the stock market further direction. The most important economic data will be Wednesday's Labor Department report on consumer prices for January.

The hardly hit sector on Tuesday was Financial. As it is know that banks are facing more financial problems this year that dragged the sector sharply lower. There are reports that Lehman Brothers may face its rockiest quarter since the mortgage crisis began, noting it may face $1.3 billion in additional write-downs. Additional to this, the selling pressure came from the news that Credit Suisse had overvalued assets by about $2.85 billion, with the company blaming a small number of traders for the write-down.

The Dow Jones industrial average fell 10.99, or 0.09%, to 12,337.22 after being up more than 150 points earlier in the day stock trading session. The Standard & Poor's 500 index fell 1.21, or 0.09%, to 1,348.78; and the Nasdaq composite fell 15.60, or 0.67% to 2,306.20.

Wall Street Crash by Worse Credit Fears

Sunday, January 13, 2008

Friday was again a worse day for stock trading session on Wall Street, in the midst of fears that the financial sector's trouble with worse credit won't soon end. It is having said that some consumers are collapsing under the influence of a slowdown in economy.

Stock investors are worried about how banks and brokerages will turn out in this quarter after suffering losses in the collapse of the subprime mortgage market. Stock Investors are also anxious after American Express Corp. warned that slowdown in spending and more negligence on credit card payments will impede profit throughout 2008.

Stock traders seemed to grow more distrustful in advance of quarterly result reports due next week from the nation's biggest financial institutions. Merrill Lynch & Co., Citigroup Inc. and JPMorgan Chase & Co. are slated to weigh in next week.

With the beginning of New Year, the stocks have slipped lower. Dow Jones repeatedly falling by whopping triple digits in many single sessions.

The major indexes each lost more than 1 %, including the Dow Jones industrials, which finished down nearly 250 points. The Dow is down 4.96 % for the year. The S&P is down 4.59 %, and the Nasdaq has lost 8.01 %.

Online stock broker

Online stockbroker is one of the most important aspects of your online stock trading business. Trading stocks without the help of stock broker is entirely impossible but one should also understand that choosing the best stock broker is also that essentially important. There are tons of online stockbrokers who provides you the platform for executing online stock trading but not all are good enough that will help you to make consistent profit from online stock trading or stock investing.

An online stockbroker should provide you all the basic resources that are needful for a stock investor or a stock trader for doing online stock trading or stock investing in more profitable way…mean the stock broker needs to provide variety of educational material like real–time stock charts, streaming news, various high–quality tools and a user–friendly stock trading platform.

There are also some other important things that need to be evaluated while choosing a perfect online stock broker and that is listed below but not limited to following.

• Brokerage fees – Lower the brokerage fees and commissions more you will be able to benefit. Many online stock brokers provide various brokerage schemes depending on your account balance and the number of trades you make per day or per week or per month. The more the transaction happens from your side, the lower the brokerage fees becomes which helps you to gain more profit in less trade margins.
• Many of the best online stockbroker offer multiple options for your investment such as stocks, stock future and options, mutual funds, IPO’s, exchange traded funds (ETFs) and fixed income investments that helps you to branch out your investment portfolio.
• Customer service is also one of the useful attributes while choosing online stock broker. It happens many time that you are caught in an unsuitable situation where you are not able to execute your trade or you have very important query which needs to be resolve as soon as possible and then in such a case good customer service is very mush important to get your issue resolved within minimum timeframe.
• Online stock broker should provide easy to use and highly compatible web structure for you to execute your trade in more efficient and easy way. The structure of the website should be easy to understand along with all the needful resources at minimal approachable clicks.
• User’s security is also extreme importance while it happens to transferring private information over the web. An encrypted password protected secure website, fraud protection and a Securities Investor Protection Corporation (SIPC) membership are highly indispensable.

Wall Street Showed Resilience

January 1, 2008

Wall Street ended in mixed and showed resilience in a year of economic turmoil.

After a year of high up and down swings, the Wall Street managed to finish 2007 with a modest gain regardless of crises in credit and housing market and concerns about an economy possibly headed for recession. Probably it was a mixed year of bull and bear and many analyses predict that the same will continue in year 2008 also.

The US stock market started 2007 with a short-lived rally and plunged in late February, with the Dow cracking almost 416 points in one day as concerns about subprime mortgages swept through the market, but within weeks, the stock investor were optimism about a strong global economy and solid domestic employment began pushing the stock price higher and on May 30, the S&P 500 hit an all-time high, surpassing its record reached at the end of the tech bubble seven years earlier, but all that distorted almost overnight in mid-summer with the subprime concern morphing into a credit freeze..

Financial stocks took a hard hit as their earnings outlook fogged up as well as shares of automakers, consumer goods that produce household goods, textiles, etc were also beaten down as stock market investors doubted the aptitude of consumers, who fuel two-thirds of the economy, to keep spending.

Even though the stock market gain was skimpy at best. Most of the analysts and stock traders noted that initial public offering activity was high, share buybacks were at record highs and investors in certain sectors were handsomely rewarded.

At the end of the year, the Dow Jones industrial average was up 13,264.82, up 6.4% for the year. The broader Standard & Poor's 500-stock index closed at 1468.36, up 3.5 % for the year.

According to me for stock investing I will look for sectors such as energy and healthcare and specific stock pick from power sector, internet companies and might take some risk in financial related stocks also, however for stock trading there are lot of stocks hanging around which could be good bet on a short term basis.

Rise on Wall Street ahead of Fed’s meeting

December 11, 2007

Strong rally was seen on Dow Jones and NASDAQ on Monday with an expectation of interest rate cut by Federal Reserve in coming meeting.

Investors hang about ahead of the Federal Reserve decision on interest rate cut on Tuesday, but majority of policymakers are still split over whether there will be a 0.25 basis or 0.50 basis cut. The National Association of Realtors bestows stock investors about their forward-looking index of U.S. home sales rose in October for the second month in a line, but still investors expect the housing market to remain weak well into 2008, the association is forecasting sales and prices to start recovering modestly next year.

According to UBS the financial stocks have already discounted the worst case scenario and may be a good stock investing opportunity on a longer term.

As compared to last month which was worse volatile month for Wall Street, this month the Wall Street has showed excellent performance as investors gained more confident in the Fed's directness to loosening its policy again. The Dow Jones has rose more than 740 points over the last two weeks, a rally that has brought the blue-chip index to about 3% below the record close it reached Oct 9.

On Monday The Dow Jones closed at 101.45 points higher, or 0.74% to 13,727.03. The Standard & Poor's 500 index rose 11.30, or 0.75% to 1,515.96. The Nasdaq composite index rose 12.79, or 0.47%, to 2,718.95.

Online stock trading practice

Online stock trading practice is a must for a novice stock trader. “Practice makes the man perfect.” Stock trading is very tricky and complicated task and to execute this task successfully you need to practice yourself before trading in stock market.

Putting all your money in stock market is not vice at initial stage without acquiring considerable amount of knowledge and knowledge does not come only with theory but it comes with lot of practice, and for practice you need to have a platform which will help you to understand real aspect of stock market. Online stock trading consists of complicated process and to get aware with these complicated processes you need to practice.

Wall Street Survivor has launched a product where novice as well as trained stock trader and stock investor can participate in stock market without investing a dime. Wall Street Survivor will provide $100,000 virtual money (not real money) to novice as well as trained stock trader who want to participate in stock market. With the help of this platform novice as well as trained stock trader can learn and can practice more as much as they want to become skilled and knowledgeable with live stock market and can also compete with other stock trader for daily, weekly and monthly prizes worth of nearly $25,000.

Some Stock Investing Tips

Stock investing strategy and specific guidelines if established and maintained properly can provide you high returns in mid to long term basis. Below you will find some of the useful stock investing tips.

1. Avoid investing in low market capitalization or low price stock probably stocks price which are lower than $5. The reason behind avoiding investing in these stocks is that maximum of these stock does not have good financial earning background. As it is know than earning is one of the main factors that drive the stock price up, if any company is not making any earning then it is always good to avoid making any investment in such stocks, no matter the price of these stocks are low.

2. Make investment in stocks (companies) which you know very well and has huge customer base with good financial history and great prosperity ahead for that company. Look around and you will find great investing idea.

3. Avoid making investment in only one stock; diversification is strong mantra in stock investing. Diversify your investment in few stocks maybe at least 2 to 3 stocks rather than only in one stock depending upon your investment budget.

4. Averaging stock is good stock investing strategy; you can also call it as systemic investment plan.

5. Invest only part of your money in stock at initial stage and increase them gradually once you are comfortable and become knowledgeable how stock market works.

6. Become value investor and invest your money in stock when there is massacre going on in stock market. Many stock market investors become panic and sells their stock at any price when there is massacre going on in stock market and this is stage where value investor emerge and find out highly appreciable stocks at low price and picks up them. Buying stocks when there is massacre going on in stock market require huge guts and deep understanding of stock which you are going to hold.

7. Know the difference between stock trading and stock investing and plan out your strategy according to it.

Online stock trading tips

Here are some of the online stock trading tips that online stock trader can use in their stock trading strategy. There are certain parameters that need to be taken into account by the stock trader while doing stock trading. These parameters help significantly for stock trader to make a successful stock trade.

Momentum – Stock momentum illustrates you the velocity at which stock prices move happens over a certain period of time. High momentum stocks are highly preferable for trading stock on short term basis.

Volume – Volume is another parameter where one can easily make out to select stock for trading. Significant increase in volume against average volume in stock over the last 7 days can give you clear picture that there is more number of stock traders as well as stock investor’s interest in this stock and with the knowing of direction one can easily buy or can short that stock.

Direction – Direction is one of the most important things for trading stock. Stock volume, trend and direction moves hand in hand. Increase in volume and change in direction tells you to buy or to sell the stock.

Trends – Trend illustrates the pushiness of prices to move in a particular direction over a certain period of time.

Stock strength – Stock strength tells you the intensity of interest in a stock. High volumes specify more participants and therefore more strength.

Volatility – Volatility describes the degree of day-to-day stock price fluctuations. More volatility arise nervousness to stock investors but there is some community in stock trader who likes to do stock trading in highly volatile stock. Volatility increases the risk but also gives high returns.

Support and Resistance – Support and Resistance represent the occurrence of stock prices repeatedly rising and falling between certain prices levels. When stock prices breakout support or resistance levels, they tend to create new support and resistance levels.

Stock chart patterns – Chart patterns provides you hits of identifiable shapes on a stock chart. Certain stock chart patterns preempt changes in stock direction and price.

Cycles – Many a time some stock sectors show a propensity to move in cycle patterns. For example after a good participation in technology sector, the stock investor turns their attention towards any other stock sector say energy sector and after the momentum in finished in energy section their tends to move their attention in steel sectors and so on and this gives an opportunity for stock investors as well as stock investor to monitor closely the sectors which are presently performing well and tries to do stock trading or stock investing in such sectors as these sectors are in momentum chances of making money is good enough that sectors which are not showing any strength or momentum.

The above following online stock trading tips can be highly useful for online stock traders as well as stock investor to make vice decision to conduct any stock trading or stock investing.

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Late stock trade burst the Wall Street

November 27, 2007

Fresh credit concerns, banking made the Wall Street to sell off sharply on Monday’s stock trading session. The Dow Jones industrial average fell nearly 240 points giving a rise to new lows. The Dow's fell its mid-October closing high is now 10.03%. The collapse to Wall Street comes as stock investors were nervy by more incoming statements that pointed to enduring problems in the credit, home loan debt going bad under the weight of a vacillating housing market; however Fed said it would inject $8 billion into the banking system on Wednesday to handle the credit market situation.

The present fact looking at the Wall Street clearly demonstrates stock investors are becoming too sentimental and caution and trying to pull out their cash at every rise. I will be waiting for Dow Jones to hold 12,500 marks but this possibility is also very less for me. At this point I would like to stay on a sideline and will wait for few days how the market pans out from stock investor as well as from stock trader points of view, however I would be monitoring my favorite internet as well as energy related stocks and if I find any good opportunity I would like to do stock trading but will avoid to do any kind of stock investing.

Bear market

In a financial market the bear market is said to be a condition in which maximum of the stocks as well as overall stock indices are making lower lows. Bear market is said to be an inappropriate period for making any stock investing but with strict discipline and proper strategy one can still easily make money through stock trading.

Bear market is much played with the sentiment of economy. Any recession or possibility of slowdown in economy gives rise to bear market and this period is worthless for making any short term or mid term stock investing, however one can take long term view for stock investing by finding out excellent stock which can show strong growth potential even if the economy is in recession stage.

In bull market there could be a significant correction which only could be called as short term “stock correction” but it can’t be called as bear market because the tendency of stock which are corrected bounce back immediately at the same pace and again resumes their bull trend.

Unlike the bull market bear market is very harmful for stock investors as it becomes a very difficult task to make out perfect stock for stock investing which will give high returns.

Bull Market

What is bull market?
Bull market is a condition in stock market where maximum of stocks make all time highs along with the index and this phenomenon continues for many days, weeks, months and even years. As long as the overall main index of stock market is making new highs one can easily call it as bull market. Maximum of the stock investors rush in for stock investing in bull market.

It is having said that no one can make out or predict exactly how far the market remains in “bull” stage but as long as overall indexes and maximum of stocks are making new highs it gives out a clear indication that market is in bull stage. It also does not mean that bull market has no correction and no stock can make news lows but companies (stock) which are showing bad performance in terms of their year-on-year or quarter-on-quarter profit margin performance are beaten down significantly and companies which are showing high growth potential are preferentially given thumbs up.

In a secular long term Bull market there can be many small bear market which can last only for few days or few weeks or few months and this may be mainly due to some external factor affecting the stock market but overall the bull market resumes its upward move again and makes its new high.

Maximum of the stock traders as well as stock investors make significant money in bull market through stock trading and stock investing.

Skills required for mastering the stock trading

Stock trading is very complicated and stressful job but with lot of hard work and gathering of deep knowledge and understanding the details of stock can make one successful in mastering the stock trading. There are various factors that need to understand for a person who want to develop the skill and master the stocktrading to make consistent profit.

Stocktrading is not a clerical or simple job which requires same repetitive thing to repeat again and again to execute it but it needs things such as

• A will to study the stock trading thoroughly
• Strong discipline, patience and very cool mind which are strong points of very good stock trader.
• To adjust the stocktrading strategy accordingly the need arise
• Strong money management skills
• Strong stock market knowledge along with knowledge of stock behaviors
• Strong technical analysis skills
• Strong ability to learn and keep updated with stock market news, resources, etc
• Creative mindset and ability to think properly and exactly to take immediate decision accordingly the need arise.
• Ability to detect and avoid getting in bad stock which will make you loser
• A newbie should devote maximum of his time to master trading of stock by studying, executing initial stock trading through paperwork and devoting several months to this until he collect enough experience and expertise to start stock trading through his real money.
• Ability to understand the mindset of other stock trader as well as stock investor is a great plus. Knowing the strategy of other will gives you enough room to adjust your strategy.

Stock trading versus stock investing

In my previous post I have detailed about stock trading and stock investing, but still once again I would like to summarize it in brief.

Stock trading is basically and usually done from short interval of time. Stock traders who usually prefers to do stock trading buys the stock for very small interval of time and exist immediately once their target price is achieved or their predetermined profit get triggered while stock investing is done keeping in view the long term returns which is basically performed by stock investors.

The is a huge difference between trading in stock and investing in stock

• Trading in stock is basically a business done on day to day basis to make profit while investing in stock is an investment done in stock only for long term returns.
• Trading in stock involves lot of risk while investing in stock has low risk if the stock pick is just right.
• Trading in stock done by stock trader does not make use of Fundamental Analysis of stock but they usually like to use Technically Analysis to predetermine their entry and exist point, while stock investor who usually invest in stock make use of Fundamental Analysis and very less of Technical Analysis.
• Trading in stock requires very high technical skill, experience, patience and mentality to accept losses if the stock triggers against their way, while stock investing requires basic fundamental knowledge and person from any category can do it very easily.
• % of success in trading stock is less while % of success in investing stock is very high.
• Stocktrading needs continues monitoring and needs to keep in touch with their stock portfolio on day to day basis while Stockinvesting does not require that much of monitoring or does needs to be in continuous touch with their stock portfolio.

Stock investor information

There are separate categories to define in stock trading - stocks investor and stock trader.

1. The first being long term stock investor. They normally buy and hold a stock position for couple of years to almost endless period. They may do some research on a stock before buying, maybe checking out some of the fundamentals such as the PE. ratio (price to earnings), valuations, dividend paid, market capital, or market analysts recommendation but to be a successful stock investor in stock market one much have a good fundamental and technical knowledge by which he can determine at which level which stock to buy and at which level to sell by making good profit.

The fundamental analysis knowledge means that the stock investor should have to know about the valuation of any particular stock, PE ratio, market capitalization, product, % of market that particular company hold etc. Fundamentalists study the cause, while technicians study the effect. "Price" is the final result of all forces that can affect a stock. Price even discounts the future, unknown news, while fundamentals reflect the past. It is because of this reality, we often see tops being made on good news and bottoms being made on bad news.

2. The second category consists of "stock traders." They hold a stock position for a few days or weeks or a month at the most. This group tends to treat the market as a business. They are not interested in fundamentals like the stock investor category. They are more interested in a stocks price movement, which they can determine by technique chart. When the people of this category make a stock purchase they know exactly where the exit points are. Their profit and loss points are predetermined. This group is guided by a set of predetermined rules, when a rule is met a reaction takes place either buying or selling.

Technical Analysis is basically the study of Price Chart, undertaken to get an idea about future price action of any traded stock. A Price Chart plots the quotes of a stock traded on a stock market. All past\present\future news relating to a stock, together with stock investors' opinion about it, determines the price of the stock on the trading floor. The "Value" discounts everything; therefore study of anything else is unnecessary. Technical Analysis comprise of a variety of techniques to study such price action over a period, by which stock trader can make a good decision at which price the shock has to buy and at which price it has to be sold. If stock trader is perfect in these things then that stock trader can make decent money in stock market.

How Technical Analysis helps stock investors and stock traders?
With the help of Technical Analysis, the stock investors and stock traders can enter the stock (long or short) when it starts trending, instead of locking their money during the periods of consolidation. Traders may look for such trending moves in daily (or shorter) charts, while the investors may look for such trending moves in weekly/monthly charts. Volatile market trading strategies are appropriate when the trader believes the market will move but does not have an opinion on the direction of movement of the market. As long as there is significant movement upwards or downwards, these strategies offer profit opportunities. A trader need not be bullish or bearish. He must simply be of the opinion that the market is volatile.

3. The third category consists of day traders. This category has all the characteristics of the 2nd group except they leave nothing to chance. All positions are closed before the end of the day, buying and selling without hesitation, according to their guidelines, strictly 100% business.

Lackluster stock trading day

Friday October 26, 2007

Wall Street saw a lackluster stock trading day on Thursday mostly dogged by credit and economic worries along with steady rise in crude oil prices. Over the last few days the oil prices are steadily rising high; giving a bit of concerns to stock investors; that might give rise to inflation and which might impact the economy a whole, however housing and credit data is now an ongoing concerns which is making the stock market to trade in a narrow zone. Investors are still confused about the definite direction of economy and whether the Fed will be forced to lower interest rates again to boost spending. The Fed cut interest rates last month by a 0.5% basis and now market is expect not the same amount of cut in interest but at least 0.25%, which will be somewhat positive news for the market, but still going forward the market will be having a tough days to gain momentum unless clear and good picture arise from housing and credit data front.

EMC - A data storage software and hardware company showed impressive result, which the market showed a thumbs-up and that stock was up 8.7% gained almost $1.97 to $24.40; however after a disappointing guidance from Symantec company the stock tumbled $2.52 and ended at $18.50.

The Dow Jones fell 0.02% or 3.33 to 13,671.92 after a strong volatile session. The blue chip index was temporarily down more than 100 points.

According to me if there is any interest rate cut by Fed next week, the stock investor definitely will take this as a positive note and maybe the market will rise higher, but still in coming days I don’t see the market will make any new highs unless clear pictures arise from the housing and credit data.

At this point from stock trading point of view, my strategy will be to take a short term trading position by buying in selective stock and at every significant high I would like to book my profit, and any significant deep of 500 to 600 points in the Dow Jones, I would like to do selective stock investing.

Stock Investing

Stock investing is an investment done in small, medium or big companies on short term, mid-term and long term basis for the companies which are listed on Stock Exchanges of each country. The main stock exchanges of the world are where large numbers of companies are listed and where big amount of buying and selling of stocks happens and they are DOW, S&P500, FTSE, DAX, Nikkei, MSCI, etc.

One has to be aware that investing in the stock market can be sometime or many a time loss making if not done in proper way but to discount loss making and to make a consistent profit from your online stock investing, one has to acquire good fundamental and technical knowledge of stock market. It is having said that investing in stock is an art of tactic by which one can make a consistent amount of profit and can make their good livings on it. One has to understand that investing in stock market is a part of nervousness and one has to pass through many ups and down to make oneself perfect in stock market.

Investing in stock is a pure business which one has to take a rational risk to gather steady rewards. With enough fundamental and technical knowledge and an adequate amount of discipline, you are all but definite to make a consistent profit in the stock market. Patience and willingness to intersperse your hard money savings across a portfolio of stocks, personalized to suit your age and risk profile will force your revenues at the same time cautions you against any major losses. Investing in a stock market is a method of buying assets in order to make money in the form of reasonably predictable income (dividends, interest, or rentals) and appreciation over the long term.

Why one should do stock investing?
Couple of decades back investing in the stock market for ordinary peoples was not so easy and safe and so utmost of peoples used to prefer to make their savings safe in bank and were satisfied with just very small interest that they used to get on their savings, but with the discovery of internet and advancement of technology the mentality of peoples has changed and instead of keeping their money safe in bank they are now willing to take little and some more risk to shoot up their earnings and to protect them against rising inflation and also with the intention to create wealth for better standard of living, vacations, retirement, etc. Also, it's exhilarating to appraise your stock investing returns and to see how they are accumulating at a faster rate than your salary.

When one should start stock investing?
If looking from stock market perspective you will never be able to catch any specific best time for making trade or stock investing as every day is a new day for stock market with tremendous changes in stock market mood. When entering in the stock market one has to keep a better view in his mind about the time horizon that he is looking for returns from his stock investment. Long term investor can enter the market anytime no matter market is going down or going up, medium and short term investors whom we can also calls as traders enters in the market with full study and risk that they are willing to adopt.

Rewards From Stock Investing

Stock investing basics

Stock investing tips

Learn Free Stock Investing and Stock Trading

Quarterly result - Important thing to know while doing any investment in stock

Mid Term Stock Investing

Fundamental Analysis for stock investing

Long Term Stock Investing

Stock portfolio

Stock portfolio is a very strong professional stock trading tool if managed in proper and effective way gives you high and high returns in stock market by any other mean is not that quite possible. Stock portfolio provides you an additional security and decreases your risk appetite in significant way in stock market.

Stock portfolio is a mixture of any number of stocks mostly preferable for small stock market investor or stock market trader is 10 to 15 numbers. Stock market traders prefer to have 10 to 15 numbers of best stock collections in their favorite stock portfolio which helps them to execute stock trading almost on daily basis. It always does not happened that day traders are able to conduct their day trading in only one specific stock on daily basis because they know that only one stock cannot give them a perfect entry point on daily basis to conduct day trading so to overcome this issues they prefers to have 10 to 15 stocks or more which helps them to give chance to enter in any 2-3 stocks for day trading on daily basis.

Professional stock market investors also prefer to maintain 5 to 10 numbers or a bit more of best stocks in their stock portfolio. By investing money not only in one stock but diverting the money in mixture of stock gives them an additional security and reduces their risk appetite. The stock portfolio consists of mixture of stocks such as large cap, mid cap, highly volatile stock, highly defensive stock, highly liquid stock, very less affected by external factor stock, etc. The stock investor prefers to maintain portfolio as per their investment horizon and amount of money they want to invest in their best stocks.

Now you might be thinking about how the stock portfolio will give high return and will reduce risk?
As it is know the stock trading or stock investing is a risky factor to make money. No doubt that if your stock pick selection is perfect from all angle chances are evergreen that you will make handsome of money, but still it is having said that there is still risk associated in it, because the external factors which might impact your stock pick is not in your hand and nor you can imagine it, which might cause the stock dump.
The external factors might consist of
• interest rate.
• crude oil dependence
• government policies
• natural disaster, and many more
which might negatively influence the specific stock pick you are holding, so to overcome this issue you need to make stock trading or stock investing in more than 2 to 3 stocks of different categories as mentioned above which will help you to trim down your risk associated only in one stock.

The stock portfolio is only established after a strong stock research which you want to include in your portfolio. Stock research includes the fundamental as well as technical study which gives a correct view about the overall performance of your favorite stock pick. The some of the categories in stock portfolio but not limited to are:

Large Caps
• Large cap stocks are stock with market capitalization of more than $5 billion such as IBM, Microsoft, Wal-Mart, etc
• You need to keep these types of stock in your stock portfolio because these stocks are consistently out performer in their whole history and will remain out performer in future also
• This stock has a deep market penetration, endurance and solid business management background and has a capacity to cope with any unsuitable condition.
• These stocks make consistent good innovative changes in their product which gives you an assurance and faith that you money is always safe and will give you high returns.

Mid Caps
Mid cap stocks are stock with market capitalization between $1 billion to $5 billion.
• There is slight risk as compared to large caps in doing stock trading or stock investment in these stocks because mid caps stocks does not always give that much of consistent performance as compared to large caps.
• Also there is lot of competition in mid cap companies which might impact their profit margin in significant way along with inconsistent market base
• But still if your have done strong stock research and have pick out a good mid cap stock which might sustain at any unsuitable condition and has a capacity to become a large caps in coming years then you have a very good potential to make good money in coming days.
• The advantage of investing your money in mid cap is that the mid cap stocks has a big room to become a large caps which will increase it market capitalization giving you high stock price return along with other benefits.

Small Caps
Small cap stocks are highly risky stocks and are also called as penny stocks.
• There is sudden inflow and sudden outflow of funds from these stocks which makes these stocks more vulnerable.
• If at any point any uncertain situation arise in the stock market, these small caps penny stocks are the first which are hammered significantly, but also if there is any strong rally in stock market, these stocks have a big potential to go high giving you high returns.

So to increase your efficiency and to maintain consistent profit from stock market you need to be more specific in selecting your stock portfolio. Consuming mixture of stock pick of different categories and of different business aspect will end up giving you consistent money at low risk.