Trading Index
TRIN. A market indicator calculated by the following: Arms Index = [(# of advancing issues / # of declining issues) / (Total up volume / Total down volume)]. A value of less than 1.0 is termed bullish, and greater than 1.0 is bearish. Also called Arms Index.
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Saturday, March 14, 2009
Dividends
Trading DividendsThe practice by some corporations of buying and selling other corporations' stock to maximize collected dividends, for tax benefits (since corporations pay very little tax on dividend income). also called dividend capture.
Equity
SAMPLE GRAPH
stockholders' equity
The balance sheet quantity of a company's common stock equity. This quantity equals total assets less liabilities, preferred stock, and intangible assets such as goodwill.
Stockholder’s equity consists of contributed capital and retained earnings.
The quantity of stockholder’s equity indicates how much the company would have left over in assets if it were to go out of business immediately.
As most companies are expected to grow and generate more profits in the future, they end up being worth far more in the marketplace than the value of their stockholders' equity.
This is why stockholder’s equity is more important to value investors than growth investors. Stockholder’s equity is often called the book value of a company.
stockholders' equityThe balance sheet quantity of a company's common stock equity. This quantity equals total assets less liabilities, preferred stock, and intangible assets such as goodwill.
Stockholder’s equity consists of contributed capital and retained earnings.
The quantity of stockholder’s equity indicates how much the company would have left over in assets if it were to go out of business immediately.
As most companies are expected to grow and generate more profits in the future, they end up being worth far more in the marketplace than the value of their stockholders' equity.
This is why stockholder’s equity is more important to value investors than growth investors. Stockholder’s equity is often called the book value of a company.
Strategies
Day traders Strategies
First look at market conditions, searching for high liquidity & high volatility. Markets with higher liquidity usually have lower spreads, slippage and other costs.
For example
EURUSD, the most widely traded currency pair, has far lower spreads than less liquid pairs like the AUDNZD or GBPJPY.
The lower the liquidity, the wider the spread and the more pips a day trader will need to overcome in order to have a profitable trade.
Volatility refers to the average range a currency pair tends to trade in a day.
Compare GBPUSD to EURGBP. Because the Pound Dollar tends to trade in wider range it offers more opportunity for day traders to grab hold of market moves.
Trading EURGBP on the other hand can be one of the most painful experiences imaginable for a day trader, since is pair tends to stick to a tight daily range and offers little opportunity for intra-day speculation.
First look at market conditions, searching for high liquidity & high volatility. Markets with higher liquidity usually have lower spreads, slippage and other costs.
For example
EURUSD, the most widely traded currency pair, has far lower spreads than less liquid pairs like the AUDNZD or GBPJPY.
The lower the liquidity, the wider the spread and the more pips a day trader will need to overcome in order to have a profitable trade.
Volatility refers to the average range a currency pair tends to trade in a day.
Compare GBPUSD to EURGBP. Because the Pound Dollar tends to trade in wider range it offers more opportunity for day traders to grab hold of market moves.
Trading EURGBP on the other hand can be one of the most painful experiences imaginable for a day trader, since is pair tends to stick to a tight daily range and offers little opportunity for intra-day speculation.
Capital
Sufficient Capital
Although leveraged accounts allow day traders to open large positions with small amounts of capital, unsuccessful day trading strategies are too often the result not having enough funds in an account to weather downturns. Successful day traders know that most positions will not become profitable the moment they are opened.
This makes strategic position sizing an absolute essential, as it determines one's staying power in the market and can often mean the difference between a winning trade and a losing one. Traders that increase the amount of idle capital available to cushion their positions either through a large initial balance or smaller position sizes lower the risk of margin calls.
An over-leveraged account may only be able to withstand a small disadvantageous price move before a margin call locks in a floating loss. By reducing the position size a day trading strategy requires, the trader reduces his/her exposure to the market and is able to manage their positions more effectively.
Although leveraged accounts allow day traders to open large positions with small amounts of capital, unsuccessful day trading strategies are too often the result not having enough funds in an account to weather downturns. Successful day traders know that most positions will not become profitable the moment they are opened.
This makes strategic position sizing an absolute essential, as it determines one's staying power in the market and can often mean the difference between a winning trade and a losing one. Traders that increase the amount of idle capital available to cushion their positions either through a large initial balance or smaller position sizes lower the risk of margin calls.
An over-leveraged account may only be able to withstand a small disadvantageous price move before a margin call locks in a floating loss. By reducing the position size a day trading strategy requires, the trader reduces his/her exposure to the market and is able to manage their positions more effectively.
Fundamentals
Market FundamentalsEvery professional day trader will tell you they have a good understanding of what drives markets. Where that expertise lies, though, may vary from one day trader to another. Some develop bias based on underlying economic fundamentals, like the direction of trade & capital flows or central bank policy.
Other professional traders say they have developed a sense for turning points in market sentiment, knowing precisely how to differentiate a true reversal from a fake-out. This characteristic can be summed up simply as market expertise. Traders who do not possess such qualities are often left guessing as market conditions shift, resulting in heavy losses.
Professional traders surveyed for this article suggest the best way newcomers to the market can develop the expertise needed to be a successful day trader is through practice. Demo accounts, mini accounts and e-minis all allow practice with small amounts of start-up capital.
Day Trading
"Day Trading" refers to opening and closing positions within the same day. The markets do not fluctuate much over the course of a given day relative to their movements over longer periods of time. Therefore, day traders will look to use as much leverage as possible to magnify their exposure to those market moves that they can find.
Most day traders treat market speculation as their full- or part-time job. They see trading through the lens of a daily employment regiment, punching in at the beginning of the day and closing out any positions at the end.
Gift to the Markets
Day traders benefit the market by offering liquidity and efficiency. Markets operate best when there are active buyers and sellers at all times. With numerous day traders operating in the market for Euros and Dollars for example, a bank knows that when you exchange your travel money they can easily and instantaneously find a counter party to your exchange.
In terms of efficiency, any trader who has looked for any small arbitrage opportunities knows that few if any easily exist in markets, since day traders will take advantage of them the moment they appear.
Most day traders treat market speculation as their full- or part-time job. They see trading through the lens of a daily employment regiment, punching in at the beginning of the day and closing out any positions at the end.
Gift to the Markets
Day traders benefit the market by offering liquidity and efficiency. Markets operate best when there are active buyers and sellers at all times. With numerous day traders operating in the market for Euros and Dollars for example, a bank knows that when you exchange your travel money they can easily and instantaneously find a counter party to your exchange.
In terms of efficiency, any trader who has looked for any small arbitrage opportunities knows that few if any easily exist in markets, since day traders will take advantage of them the moment they appear.
Monday, February 23, 2009
Tokyo Stock Exchange
Tokyo Stock Exchange or TSE, located in Tokyo, Japan, is the second largest stock exchange market in the world by market value, second only to the New york Stock Exchange. As of 31 December 2007, the the Tokyo Stock Exchange had 2,414 listed companies with a combined market capitalization of $4.3 trillion. Nikkei 225 is a stock market index for the Tokyo Stock Exchange (TSE). It has been calculated daily by the Nihon Keizai Shimbun (Nikkei) newspaper since 1950. It is a price-weighted average (the unit is Yen ), and the components are reviewed once a year. Currently, the Nikkei is the most widely quoted average of Japanese equities, similar to the Dow jones Industrial Average. In fact, it was known as the "Nikkei Dow Jones Stock Average" from 1975 to 1985.
The Nikkei 225 began to be calculated on September 7, 1950 , retroactively calculated back to May 16, 1949.
The Nikkei 225 Futures, introduced at Singapore Exchange (SGX) in 1986, the Osaka Securities Exchange (OSE) in 1988, Chicago Mercantile Exchange. (CME) in1990 , is now an internationally recognized futures index.
The Nikkei average hit its all-time high on December 29, 1989 when it reached an intra-day high of 38,957.44 before closing at 38,915.87. Its high for the 21st century stands just above 18,300 points.
Taiwan Stock Exchange
The Taiwan Stock Exchange Corporation (TSEC) is a financial institution , located in Taipei 101 , in Taipei, Taiwan. The TSEC was established in 1961 and began operating as a stock exchange on 9 Feb. 1962. It is regulated by theFinancial Supervisory Commission.
As of 31 December 2007, the Taiwan Stock Exchange had 703 listed companies with a combined market capitalization of $664 billion.
The exchange has normal trading sessions from 09:00am to 01:30 pm and post-market sessions from 02:00pm to 02:30 pm on all days of the week except Saturdays, Sundays and holidays declared by the Exchange in advance.
Hong kong Stocks Exchange
Hong Kong Stock Exchange
Traditional Chinese: (HKEX), SEHK:) is the stock exchangeof Hongkong . The exchange has predominantly been the main exchange for Hong Kong where shares of listed companies are traded. It is Asia's third largest stock exchange in terms of market capitalization , behind the the Tokyo Stock Exchange and the Shanghai Stock Exchange . As of 31 December 2007, the Hong Kong Stock Exchange had 1,241 listed companies with a combined market capitalization of $2.7 trillion. Hong kong Exchanges and Clearing is the holding company for the exchange.
Traditional Chinese: (HKEX), SEHK:) is the stock exchangeof Hongkong . The exchange has predominantly been the main exchange for Hong Kong where shares of listed companies are traded. It is Asia's third largest stock exchange in terms of market capitalization , behind the the Tokyo Stock Exchange and the Shanghai Stock Exchange . As of 31 December 2007, the Hong Kong Stock Exchange had 1,241 listed companies with a combined market capitalization of $2.7 trillion. Hong kong Exchanges and Clearing is the holding company for the exchange.
Monday, February 16, 2009
Asian stocks
Asian stocks plunge as Japan’s recession deepens; China gains
Most Asian stock markets fell Monday, as new figures showed Japan’s economy contracted the most in 35 years and Group of Seven finance ministers warned the global slump will drag on through most of the year.
Japan’s Nikkei 225 stock average edged down 22.45 points, or 0.3 percent, to 7,756.95, and Hong Kong’s Hang Seng Index dropped 204.62 points, or 1.5 percent, to 13,350.05. South Korea’s Kospi lost 1.4 percent to 1,176.23.
Markets in Australia, India and Singapore also declined, while benchmarks in Shanghai and Taiwan gained.
But China’s benchmark stock index rose Monday to a 5 1/2-month high on investor enthusiasm about added liquidity amid rising bank lending, shrugging off declines in other Asian markets on news of Japan’s economic contraction.
The benchmark Shanghai Composite Index climbed 3 percent, or 68.59 points, to 2,389.59, its highest close since Aug. 29. The Shenzhen Composite Index for China’s smaller, second exchange added 1.9 percent to close at 763.3.
Oil prices stayed above $ 37 a barrel Monday in Asia as OPEC members talked up more production cuts over the weekend amid weakening global demand for crude.
Light, sweet crude for March delivery fell 5 cents to $ 37.46 a barrel by late afternoon in Singapore on the New York Mercantile Exchange. The contract rose $ 3.53 on Friday to settle at $ 37.51.
Investors also seemed disappointed after finance chiefs from the Group of Seven developed countries finished their meeting in Rome with pledges to work together to boost growth and unemployment, but stopped short of concrete measures.
Increasingly, investors are unconvinced governments around the world are acting quick enough to solve the credit crisis, plummeting consumer demand and other problems at the heart of the economic slowdown, analysts said.
source:mb
Most Asian stock markets fell Monday, as new figures showed Japan’s economy contracted the most in 35 years and Group of Seven finance ministers warned the global slump will drag on through most of the year.
Japan’s Nikkei 225 stock average edged down 22.45 points, or 0.3 percent, to 7,756.95, and Hong Kong’s Hang Seng Index dropped 204.62 points, or 1.5 percent, to 13,350.05. South Korea’s Kospi lost 1.4 percent to 1,176.23.
Markets in Australia, India and Singapore also declined, while benchmarks in Shanghai and Taiwan gained.
But China’s benchmark stock index rose Monday to a 5 1/2-month high on investor enthusiasm about added liquidity amid rising bank lending, shrugging off declines in other Asian markets on news of Japan’s economic contraction.
The benchmark Shanghai Composite Index climbed 3 percent, or 68.59 points, to 2,389.59, its highest close since Aug. 29. The Shenzhen Composite Index for China’s smaller, second exchange added 1.9 percent to close at 763.3.
Oil prices stayed above $ 37 a barrel Monday in Asia as OPEC members talked up more production cuts over the weekend amid weakening global demand for crude.
Light, sweet crude for March delivery fell 5 cents to $ 37.46 a barrel by late afternoon in Singapore on the New York Mercantile Exchange. The contract rose $ 3.53 on Friday to settle at $ 37.51.
Investors also seemed disappointed after finance chiefs from the Group of Seven developed countries finished their meeting in Rome with pledges to work together to boost growth and unemployment, but stopped short of concrete measures.
Increasingly, investors are unconvinced governments around the world are acting quick enough to solve the credit crisis, plummeting consumer demand and other problems at the heart of the economic slowdown, analysts said.
source:mb
Thursday, February 12, 2009
Stockmarket
I was surprise while reading the latest news about the stockmarket, and for this morning here is the fresh news from Manila Bulletin . Philippine time: 4:20 am.
Tokyo’s Nikkei stock average lost 259.59 points, or 3.3 percent, to 7,686.35
Japan’s market caught up with region-wide losses on Wednesday after being closed for a national holiday.
Hong Kong’s Hang Seng lost 359.32 points, or 2.7 percent, to 13,175.65.
South Korea’s Kospi lost 2.3 percent,
Shanghai’s main index was off 2 percent
Taiwan’s benchmark retreated 2.1 percent.
Australia’s key stock measure gained 0.8 percent.
Overnight in New York, the Dow Jones industrial average rose 50.65, or 0.6 percent, to 7,939.53 in a choppy a session as investors digested the flood of news coming from Washington.
Broader stock indicators also rose.
The Standard & Poor’s 500 index rose 6.58, or 0.80 percent, to 833.74,
Nasdaq composite index rose 5.77, or 0.4 percent, to 1,530.50.
US futures were mixed, suggesting investors were still wavering ahead of Wall Street’s open.
Oil prices rebounded slightly after a steep fall overnight, with light, sweet crude for March delivery up 25 cents at $ 36.19 a barrel in Asian trade.
The contract shed $ 1.99 to settle at $ 35.94 a barrel on the New York Mercantile Exchange on Wednesday.
Tokyo’s Nikkei stock average lost 259.59 points, or 3.3 percent, to 7,686.35
Japan’s market caught up with region-wide losses on Wednesday after being closed for a national holiday.
Hong Kong’s Hang Seng lost 359.32 points, or 2.7 percent, to 13,175.65.
South Korea’s Kospi lost 2.3 percent,
Shanghai’s main index was off 2 percent
Taiwan’s benchmark retreated 2.1 percent.
Australia’s key stock measure gained 0.8 percent.
Overnight in New York, the Dow Jones industrial average rose 50.65, or 0.6 percent, to 7,939.53 in a choppy a session as investors digested the flood of news coming from Washington.
Broader stock indicators also rose.
The Standard & Poor’s 500 index rose 6.58, or 0.80 percent, to 833.74,
Nasdaq composite index rose 5.77, or 0.4 percent, to 1,530.50.
US futures were mixed, suggesting investors were still wavering ahead of Wall Street’s open.
Oil prices rebounded slightly after a steep fall overnight, with light, sweet crude for March delivery up 25 cents at $ 36.19 a barrel in Asian trade.
The contract shed $ 1.99 to settle at $ 35.94 a barrel on the New York Mercantile Exchange on Wednesday.
Sunday, February 8, 2009
How to start in the Market
Beginning in the market
Regardless of whether the stock market rises or falls in the days and months ahead, it probably makes sense for you to have well-thought-out program of cautiously and gradually investing in the market. if the nation generally does well in its domestic and foreign policies in the future, its economy should do well; and if the economy prospers, the stock market should go up over the long term. It is indeed the long term that most of us should be thinking about when we invest.
More and more people are setting aside part of their paychecks to invest in the market. they also recognize that when you begin investing while young, you can still afford to take some risks in search of great profits. But regardless of your age, how can you best get started in the stock market?. Your first decision is whether to aim for income or for growth. Most investment counselor agree that young people should choose a strategy of capital growth.
As a start, you might consider investing in a mutual fund. You can buy shares in a pool that is invested by the fund's professional managers in a wide range of stocks. That way you get a diversified investment that you probably could not afford on your own. Many funds grow nicely and, on the downside, few conservative funds lose very much.
There are two basic types of funds; load and no-load. You buy load funds through brokers or financial planners, and they charges you a sales commission. you buy no-load funds by mail or telephone, and you pay no commission for them.Since both kinds of funds perform about the same, it often makes sense to save the commission by buying the no-loads.
History's lesson is that stocks tend to perform better than most other investment. Some people earn much more than the market averages, particularly if they red widely of economic trends and other development that affect markets, and if they choose their brokers wisely.
Regardless of whether the stock market rises or falls in the days and months ahead, it probably makes sense for you to have well-thought-out program of cautiously and gradually investing in the market. if the nation generally does well in its domestic and foreign policies in the future, its economy should do well; and if the economy prospers, the stock market should go up over the long term. It is indeed the long term that most of us should be thinking about when we invest.
More and more people are setting aside part of their paychecks to invest in the market. they also recognize that when you begin investing while young, you can still afford to take some risks in search of great profits. But regardless of your age, how can you best get started in the stock market?. Your first decision is whether to aim for income or for growth. Most investment counselor agree that young people should choose a strategy of capital growth.
As a start, you might consider investing in a mutual fund. You can buy shares in a pool that is invested by the fund's professional managers in a wide range of stocks. That way you get a diversified investment that you probably could not afford on your own. Many funds grow nicely and, on the downside, few conservative funds lose very much.
There are two basic types of funds; load and no-load. You buy load funds through brokers or financial planners, and they charges you a sales commission. you buy no-load funds by mail or telephone, and you pay no commission for them.Since both kinds of funds perform about the same, it often makes sense to save the commission by buying the no-loads.
History's lesson is that stocks tend to perform better than most other investment. Some people earn much more than the market averages, particularly if they red widely of economic trends and other development that affect markets, and if they choose their brokers wisely.
Join in an Investment Club
Another way to begin is to join an investment club.
Since members jointly choose stocks to purchase,a club offers you an opportunity to invest and to get experience in researching the market. Determining when to sell and when to hold onto to a stock is another valuable lesson that can be learned in such a club. Most members ultimately gain enough confidence to their own investing .
Once you strike out on your own, you probably will be able to afford only one or two stocks at first. But ultimately you should aim to afford five or ten . that is enough diversity but not too much for you to keep watch over. Balance is important.a quarter of your investments might be in very small companies that give you a chance for big gains, , of course, the possibility of big losses. Another quarter could be in the largest, most conservative companies for stable growth, the remaining half might be medium-size concerns that are growing faster than the economy.
In every case, try to spot companies whose share prices are relatively low compared with their current earnings and future prospects. Keep your eye on investing's early warning system. the market as a whole usually moves about three to six months ahead of chances in the economy. On average, the market begins to rise about six months before a recession ends. Typically, the climb last two and a half years of downturn.
Bear in mind that business conditions affect various stocks group differently. Basic industries such as autos and housing rise and fall along with the economy, so they prosper when an economic recovery begins. but when the recovery is a year or more old, the strongest companies tend to be consumer-goods firms such as retailer,clothing makers and home-furnishing manufacturers. That is because consumers finally feel secure enough to spend freely.
When you buy stocks or bonds, you can choose either to hold the certificates yourself or keep them in so-called street name. That means they are held by your broker. Which is better for you.There is one clear drawback to holding your stocks in street name. if the brokerage firm runs into severe financial trouble, your holding could be tied up for months. you will, however, get them back eventually, because they are insured by the Securities Investor Protection .
But keeping your stocks and bonds in the street name has many advantages. It is certainly convenient. you do not have to worry about losing your certificate or sending them through the mail. If you want to barrow margin--- that is, take out a loan from your brokerage houses also maintain up-to-date records on the value of your holdings, and will reinvest your dividends automatically in, say, a money market account.
Since members jointly choose stocks to purchase,a club offers you an opportunity to invest and to get experience in researching the market. Determining when to sell and when to hold onto to a stock is another valuable lesson that can be learned in such a club. Most members ultimately gain enough confidence to their own investing .
Once you strike out on your own, you probably will be able to afford only one or two stocks at first. But ultimately you should aim to afford five or ten . that is enough diversity but not too much for you to keep watch over. Balance is important.a quarter of your investments might be in very small companies that give you a chance for big gains, , of course, the possibility of big losses. Another quarter could be in the largest, most conservative companies for stable growth, the remaining half might be medium-size concerns that are growing faster than the economy.
In every case, try to spot companies whose share prices are relatively low compared with their current earnings and future prospects. Keep your eye on investing's early warning system. the market as a whole usually moves about three to six months ahead of chances in the economy. On average, the market begins to rise about six months before a recession ends. Typically, the climb last two and a half years of downturn.
Bear in mind that business conditions affect various stocks group differently. Basic industries such as autos and housing rise and fall along with the economy, so they prosper when an economic recovery begins. but when the recovery is a year or more old, the strongest companies tend to be consumer-goods firms such as retailer,clothing makers and home-furnishing manufacturers. That is because consumers finally feel secure enough to spend freely.
When you buy stocks or bonds, you can choose either to hold the certificates yourself or keep them in so-called street name. That means they are held by your broker. Which is better for you.There is one clear drawback to holding your stocks in street name. if the brokerage firm runs into severe financial trouble, your holding could be tied up for months. you will, however, get them back eventually, because they are insured by the Securities Investor Protection .
But keeping your stocks and bonds in the street name has many advantages. It is certainly convenient. you do not have to worry about losing your certificate or sending them through the mail. If you want to barrow margin--- that is, take out a loan from your brokerage houses also maintain up-to-date records on the value of your holdings, and will reinvest your dividends automatically in, say, a money market account.
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