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.

Stock trading strategy

Stock trading is a quite a different job as compared to other job categories. In-fact it is not a job but it is a business which involves millions and billion of money executed in buying and selling of stock. Daily billions of dollar money is coming in and going out of the stock market and you need to have best stock trading strategy in place which will help you to pull out the money from this stock market for yourself.

The task to pull out the money through stock trading is definitely not an easy job but instead it consumes lot of deep knowledge, perfect strategy and very accurate and immediate decisions. Stock trading strategy is something which needs to be implemented in more creative way and which should be perfected accordingly the situation arise.

It is having said that one has to go through many different situations which arise while conducting stock trading at every time interval and you need to know which strategy will be useful for each of such situation. The final goal should be to make consistent money by implementing perfect strategy.

Stock trading only consists of risk and more the potential risk more will be the returns.

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.

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Stock trader

The person who performs stock trading is basically known as stock trader or stock market trader. The stock market trader is one of the vital and most essential elements in stock market. Stock traders are the peoples whose intention is mostly to perform stock trading and very less or some of stock investing. Stock trading is normally buying and selling of stock done for short period of time may be for days or for few weeks while stock investing is generally done for long period of time means after buying the stock it is hold for few months to many years and then it is sold or kept in hold as long as that stock is performing exceptionally well.

Stock market traders are basically high risk taker individual who actively participate in stock market on almost daily basis. The maximum of the stock market trader treats the stock market as their regular business work and considers this as their only mainstream income source.

The stock market trader buys the stock and usually holds them for very short period of time may be for a day, or a week or mostly for couple of months, beyond that then they could be recognized as stock investor. There is a category in stock market trader mainly called as “day trader” who usually executes the stock trading in only one day. They have the authority to short the stock means they can sell the stock which they are not holding and can cover their position by buying those stock again in the same day…..means taking the profit or loss to their home in the same day itself.

Previously in the old days the stock market trader were very less in number and the process to execute the stock trading was a very complicated process but with the discovery of superb electronic technology and internet the number of stock trader have increased significantly. With the recent development of technology now peoples from all categories are taking use of internet and are becoming regular online stock traders. Online stock trader are now able to execute the stock trading through their home with the help of internet and with the help of same technology they are able to get any information related to stock market or of any stock at their fingertip facilitating them to execute the stocktrading process in efficient way.

Stock investor

Stock investor is a character (individual or firm) who buys and sell stocks in stock market. The stock investor is differentiated in many different terms according to the activities they perform in stock market.

Some of the stock investor are recognized as follows... such as retail stock investors, high net individual stock investor, foreign institutional stock investor, domestic mutual fund stock investors, etc. These stock investors can be differentiated in other terms also as short term stock investor, mid term stock investor or long term stock investor depending upon the horizon they have kept in their mind while making any activities in stock market.

Depending upon the functionality the stock investors plays an important role in keeping the stock market workable. With the absence of stock investor the stock market will stop to function and it will bring a big financial crisis in the economy of the country. As it is evident that stock market is a heart of each countries economy and if it stopped to function then it will make an adverse effect on economy and so the stock investors are very valuable.

Quarterly result

What is Quarterly result?
Quarterly result is an announcement made by the company after every 4 months about the company’s overall performance to shareholder.

Quarterly result is most importance aspect of fundamental analysis. It has been mandatory for all the companies listed on stock exchange to make the public announcement of their company's quarterly results so that the company shareholder comes to know how the company is performing. At the time of declaration of quarterly result the company gives its overall performance of past quarter and at the same times gives future guidance by which the shareholder can clearly get a company’s overview how the present performance of company has been and can predict future performance from the company’s guidance.

While announcing the quarterly result the company has to provide all important information to shareholder such as quarter-on-quarter overall profit, net profit, expenditure, quarterly sales, annual sales, information about clients, % of market holding, expansions, organic growth of company, inorganic growth of company and many other things which gives a clear picture about companies performance.

Long term investor usually waits for quarterly result of company and for future guidance and then decides to make any stock investment in that company or not.

Stock investing basics

stock investing basic is more important for a newbie who is thinking or in an intention to make an investment in stock market.

The first basic thing for a newbie is to know more about what is stock or share?

Stock or share is a portion of ownership of a company allotted to you when you make any investment in that particular company. The portion of ownership depends upon the number of stock you have bought of that company. Making investment in any company means you are participating in the growth of that particular company. Any profit made by the company is divided among the stock investors in the form of dividend or bonus, along with the benefit of increase in price of the stock. As long as company is making consistent profit and shows quarter-on-quarter or year-on-year growth potential the chances of substantial rise in stock price is more and so are the benefit also in the form of dividend and bonus.

Once you are familiar with what the stock is then you need to be familiar with the other aspect of stock investing basics such as fundamental analysis as well as technical analysis of stock for making perfect stock investment which will give you consistent returns.

More information on Fundamental analysis
More information on Technical analysis

Rewards from stock investing

In my previous piece of writing I have given the concept of stock investing. On this page I would like to tell you about the reward you will get by making a stock investing.

From long term perspective the rewards from stock investing are pretty good if you are only in just right stock at right time and that you can achieve with the help of fundamental and technical knowledge.

Assets history has proved that there is no other asset class where investors had made pretty descent earnings other than stock market in long term, but for that the only thing is that you just need to be in right stock. I would once again like to emphasize on just right stock. There are tons of stocks traded on stock market but not all stocks can give you descent returns on long term basis so your choice for stock investing on long term basis should just needs to be perfect.

Once you are in perfect stock your long team earning will grow substantially, the more than you have expected. The rewards you will get in long teams are
• Dividend: Dividend is a distribution of a portion of a company's earnings allotted to the shareholders. The board of direction decides the amount of dividend to be given to shareholder i.e. dividends per share. If the company is making a consistent profit chance of getting dividend once in two years, annually or biannually is high. The dividend can be in cash, bonus shares/stocks, or property.
• Substantial price increase in your stock holding
• Allotment of subsidy shares if any merger or de-merger of another section from the one main company happens.

The person who had made stock investing in the very early days of stock like Wal-Mart, Microsoft, or in any other Fortune 500 companies had achieved significant growth in their asset. In the future there will be new companies replacing the place of Wal-Mart or Microsoft or any Fortune 500 companies and you have to hunt such companies for your asset growth and to get steady return on long term basis.

Worldwide stock market rally on Fed’s meeting ahead

Monday October 29, 2007


The Asian market were on rollercoaster movement today which was mostly impacted by Friday’s strong ending on Wall Street and ahead of Fed’s meeting this week. All the major indices amongst the Asian pack made a significant positive ending lead by Hang-Seng 1000+ points gain and Sensex gained almost 600+ point and end at its all time high. European markets were also open on strong positive note, rising for the third session in a row.

Australian market ASX 100 end 1.35% at 5495, Japanese market Nikkei end 1.17% higher at 16,698, Hang-Seng end 3.89% at 31586 and Indian market Sensex end 3.82% at 19977.67.

The Indian markets seen another milestone after Sensex touching all time high at 20,000 marks. The Reliance pack leaded this rally followed by L&T and ONGC. Today gain was third biggest single day absolute point for the Sensex. All the major indices showed solid performance.

Volatility–a playing game in stock market

There are certain stock investor communities in stock market who feel volatility plays an important role in their profit margin in-fact they like to do stock trading whenever there is significant amount of volatilities in stock market. According to them volatile stock often gives them an advantage to make their stock trading successful. Any significant upward rise in stock which is volatile gives a sell signals while any significant dip gives a buy signal.

Volatility is a significant fluctuation in prices of stocks or swings in stock market. Any significant increase in volatility in stock market concerns a lot of stock investor as it does not gives any perfect direction to stock market but for genuine stock traders it is a positive signal to make money if there is good kind of volatilities in their selected best stocks.

There are many different views on volatility but according to me it gives a good chance for stock trader to become active and make their successful stock trading. Volatile stock shows significant movement in their prices which give chance for stock traders to enter in that stock and exit by making profit. It is a riskier job but for trader it is their daily business part. They know the exact entry point and exact exist point in these type of stocks.

If one has to become expert in trading volatile stock they need to have significant knowledge of stock market as well as has to know how the movements of stock happens and this only can be achieved by consistent monitoring the stock price movement on daily basis. One can use Newton law’s rule while stock trading on stocks which are volatile. According to Newton law’s every action has equal and opposite direction and same law applied to volatile stock also. Every significant upward action in volatile stock should need to have download reaction and every significant downward action in stock should need to have upward reaction.

Any view expressed in this website is solely of author’s personal view. Before stock investing or stock trading you should need to take advice of your stock market advisor.

Penny stock

Penny stocks are stock which value is not more than $5 per stock, however these stock are more likely to be treated as a speculative playing stocks by large number of stock investors. Maximum of the small retail investors are fascinated by these stocks due to their low price.

Pennystocks are mainly low liquid, low volume and highly speculative stocks which tend to move any direction is significant way. One has to be more aware when trying to do stock trading or stock investing in this high risk penny stock as chances always remains high that these stocks tends to move in your opposite direction, but nevertheless one can make high descent earnings from these stocks if they are in right stock at right time and at right price.

Peny stock does not give transparent financial history due to which the main movers of stock market avoids to do any type of stock trading or stock investing in these stocks owing to which these stock lack enough liquidity as well as enough volume and due to these reasons there is significant price fluctuation. Whenever there are large number of buyers than seller in these stocks the stock make a significant upward move and if there is large number of seller than buyer there is significant downward move, which at many a point breaks the circuit which has been put by regulatory authority.

Proper technical study, stock market savvy and high risk taker peoples definitely makes good money from best penny stock but newcomers to stock market mainly the retail investor should remain out of these stocks as long as a clear fundamental picture arises from these stock.

Tips for penny stock trader

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.

Uptrend continues in Stocks Market

Saturday October 27, 2007

US stock market ended higher on Friday after having a volatile week; however technology stock rose higher on Friday’s stock market trading session as Microsoft declared whopping 23% jump which was mostly driven by brisk sales of the new Halo 3 video game. Microsoft shares raised $3.04, 9.50% to end at $35.03. Stock market investor also showed good interest in financial stocks after mixed bags of number in major blue chip companies.

The Dow Jones ended the week up 284.68, or 2.11% at 13,806.70. The Standard & Poor's 500 index ended up 34.65, or 2.31% at 1,535.28. The Nasdaq composite index ended up 79.03, or 2.90% at 2,804.19.

At the present time it clearly seems like stock investors are eagerly waiting for Fed’s decision on interest rate cut at their next week meeting which will bring cheer to stock market.

eBay stock seems good for me from stock trading point of view at this point as the ebay stock chart is showing some good strength.

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.

Strong comeback for US market

October 24, 2007


The US market showed strong bounce back on Tuesday mostly was helped by strong earnings by blue chip company comprises of American Express Co and Apple Inc. The technology sector were in limelight and were the biggest gainer following the excellent quarterly result by Apple which were ahead of street expectations with a 67% jump in fiscal 4th-quarter profit on strong sales of Macintosh computers, iPods and iPhones. However concerns still were roving around housing and credit which might drip over into the rest of the economy.

The stock market increased its recovery from Monday after seeing a very bad session on Friday as well as conservative sold off for five continuous market sessions as uncertainties about the credit market's outcome on the economy after a time when several blue chip companies presented sluggish outlooks and S&P downgraded more mortgage-backed securities.

The Dow Jones rose 100+ or 0.81%. The Standard & Poor's 500 index rose 0.88% to 1,519.59; the Nasdaq composite index rose 45.33 to 2,799.26.

Wall Street stock investors are also expecting some more good positive news from Fed at their meets next week to decide the future of rates.

At this point, from only stock trading perspective I would like to book my profit at higher level whereas from stock investing perspective I would still like to wait and watch and see how the situation pan out in coming days, but at every significant dip of more than 500 points, I would like to do bargain hunting in selected stock pick from long term stock investing perspective.

Stock Chart-Technical Analysis Tool

A stock chart is a string plotted on a graph for stock prices versus specific time frame. Once you are familiar with technical analysis, a concept used in identifying stock movements, then you could find the technical stock chart a more useful tool used in technical analysis, in-fact chart formation is most important aspect of technical analysis.

If you want to make stock investing, or to day trading or stock trading or online stock trading you definitely need to thinks about stock price chart formation technical pattern for your above help in making a vice decision to select perfect stock pick. There is a big community in stock market who strongly believes in stock chart pattern in-fact maximum of them use it on day-to-day basis.

Stock price chart helps in many way giving you a perfect view of price movement on per hour, per day, per week, per month, and so on basis to make a exact decision.

US market - Still seems not out of woods

October 23, 2007

The Wall Street sees increase volatility on Monday’s trading session. Experts are still doubt about the market direction and are looking for definite clue to make any call from online stock trading perspective, but still market end in positive territory on Monday cheered the investor’s mood little bit. Merck & Co quarterly results were somewhat decent but it rival drug maker Schering Plough Corp.'s gave disappointed set of result, a way below market expectations along with many blue chip companies.

Despite the fact that the key US stock indexes performance were good on Monday, there are still big uncertainties on Wall Street concerning how tribulations in the financial markets might haul on corporate and economic growth in coming future.

Given the positive closing of Dow Jones on Monday, the Asian markets open in positive territory on Tuesday bringing back the investor sentiment back in the market. The Indian stock market showed a strong comeback after the tumbling sessions of more than 2000 points. The Sensex was up of more than 800 points. European stock market rebound on Tuesday session after taking positive clue from US market and Asian market along with strong results from engineering sector.

From stock investing point of view selected stock pick which showed good quarterly results seems good, but still the direction of the market is not sure, but bargain hunting clearly seems evident.

Avoid stock investing at this time - major correction seems ahead

Monday October 22, 2007

With the significant plunge in Dow Jones on Friday made a worst scenario all over the world. The major stock markets of world were badly hit on Monday post US stock market activities on Friday. A strong 366 points plunge in Dow Jones industrial average was one of the major reasons along with weak news from credit and housing front. Japan’s Nikkei stock market was down 2.24%, Hong Kong's Hang Seng index was dropped by 3.7% almost 900+ pounds and along with weak opening in European trading market with fall of more than of 100 point in Britain's FTSE 1.21%, France's CAC-40 fell 1.75%, Germany's DAX index fell 1.29%. Indian stock market which was badly hit about 2000 points in Sensex from it highest point of 19000+ near to 17000 in just two sessions were recovered somewhat after getting some positive news from domestic front along with better quarterly results.

Looking at the present scenario it clearly seems like there is still a major correction ahead in US market stock market along with strong volatility. At this point I would like to short the market and at every significant dip of say more than 300+ point I would like to do bargain hunting in selected stock pick from long term stock investing point of view.