13 July 2011

Reasons for the current melt down!!

Yes, the market is down for the past 2 years. What are the reasons for the current meltdown? The following reasons may be attributed to the current situation of the market!

1. The inactive Government

2. The 2G and other Scams

3. Higher Inflation

4. Global economy still in doldrums

5. Unfavorable RBI policies towards curbing the inflation

6. Lower GDP growth rate

7. FIIs afraid to invest in the Indian markets

8. Higher Oil price and commodity prices

9. Investors stay away from the Indian market

Whatever may the reason an investor should be happy about the present market condition as nearly 75% of the tradable securities are down by more than 30% from its 52 week peak price. Interestingly among them nearly 425 stocks are down by more than 70% from its 52 week peak price. Though not all the stocks are worth investing some of them may be a great find.
As an investor we can make use the opportunity thrown by the market and to borrow the quote of Warren Buffet “we should look at market fluctuations as our friend rather than our enemy; we should profit from folly rather than participate in it.” Tomorrow let us check which stocks have lost the most in the current meltdown.

03 July 2011

Stock Investment

A good stock investing tip for the stock market is to never gamble all their money. This investing advice should be more particular for investors who have little comprehension of how the stock market really works. It is quite ideal to lose a tiny investment rather than a big one so start small. If you are new to the stock market, make sure to read through the beginners guide to investing and get some tips for smart investing for beginners.

There are some investment opportunities which seem attractive and alluring however it is important that investors dodge investing in them if they are not prepared to lose money. This is a good investing tip for the stock market. Irrespective of how anyone else thinks about the stock, if the investor has some qualms they should not invest in it.

Another good plan for the stock market is the “Trailing stop strategy”. This is a strategy usually utilized by stock market investing gurus. What these smart investors do is ride their stock high at the same time having an exit strategy in the event the situation gets out of hand. The liquidity of their investment is important to their business. Appreciating their liquidity so they can immediately convert it into cash is a crucial key to success with this investment method.

There are many online share tips that will help you to protect your money. Before you start investing, make sure you have a good understanding of the stock market investing basics then you can learn stock trading and begin making money trading stocks