Monday, 19 September 2011

Stock Market for beginners, How to join stock market.

Stock Market is a place for Investment. Stock market is the most sought after Investment in the world and India. There are many instances where people who invested only in thousands managed to make millions. The great software boom in India is a great example. People who Invested in Infosys became millionaires overnight. Remember the reverse happened too. Beginners must spend some time learning the basics of the stock market. You will be provided tutorials on stock market for beginners and also on how to join stock market.

What is a stock market, Beginners guide

Stock market or a Stock exchange is a place where stocks and derivatives of the companies are traded. The trade happens and are controlled by the stock exchanges. There are some important stock exchanges in the world. For Example NYSE, Nasdaq, London Stock Exchange, BSE, NSE, Euronext etc.

Stock Markets are the place for companies to raise money. Companies sell the ownership of the company in shares to be publicly traded and thus they raise money for expansion or improvement. Main benefit of an investor is also this feature liquidity. He can sell his securities immediately and make money easily compared to real estate or other assets.
Over years stock markets have re defined the economies of the country. A raising market is the main economic indicator of a country now a days.

How you make money with stock market.

There are many ways of making money with stock market. Let us begin by explaining the possibilities of making money for a beginner. You as a beginner would like to invest in shares to make money in the long term. Here you make yearly or every six moths dividends. You will be given a share of the profit every company makes. It will be proportionate to the shares you have in your possession. It is called dividend. There is another way of making money with shares and that is capital appreciation. Suppose you by a share for 100 USD. After an year it is valued in the market for 150 USD. The difference of 50 USD is what we call as capital appreciation.

Join Stock Market. 

To begin investing on shares you are required to follow certain formalities. You must have a valid Income tax Permanent Account No PAN  and you are required to open a d-mat Account. You are also required to have a valid bank account.
A d-mat account is an account very similar to a bank account. You can open a d-mat account at any banks that offers the  service and also from stock brokers. In India almost all banks starting from Icici, HDFC, AXIS, Oriental Bank of Commerce, SBI have this facility. There are brokers who offer this service for free. A d-mat account is where your transactions are being recorded. Every buy and sell would be recorded in your d-mat account. It is very easy to open a d-mat account.
Once you have a d-mat account along with other required steps like bank account and PAN no you can instruct your broker to buy and sell the shares for you. A good idea for the beginners shall be to have a patient understanding broker who would sit along with you explaining the formalities an various methods of investment available for you.

A beginner must not go straight in to the day trading or short selling etc. You have to learn the basics of the market first. You can begin by selecting some good shares which have strong basics and performance. By performance we say how much dividend they issue ever year, how strong is their credit standing etc. There are some rating agencies that give ratings to the companies. You can also learn the performance and the capital appreciation  of the share over years before you buy. Once you begin your investment you can learn the various other money making ideas on stock market one by one.

Monday, 1 August 2011

How to make money from Forex Trading

Forex Trading or Fx trading is the trading between currencies. Like every other business,demand and supply determines the trade volume and profit here.  It is Great opportunity. There are hundreds of Brokers offering this service.Thousands of success stories about Forex and there are people who want to learn how to make money with it.

For beginners, one must understand few things. It is an attractive offer. It is exciting. It will get your adrenaline pumping faster. But this is a business laced with lot risks too. Decide whether you are capable of taking the risk. You can begin a trading account with 100 dollars or lesser amount now. Begin small and learn the tricks of the trade before moving to the higher league.

What is Forex? 

 The answer is simple It is the trading between countries. In Forex market, the trading usually happens between currencies. As the world is leaned towards USdollars, so does currency market. Usually the base currency is US Dollar except when trading happens between British Pounds and Euro. The trading happens between pairs. GBP/USD, EURO/USD, USD/CHF etc. In the First 2 instances Pound and Euro will be considered as the base currency and in the third instance US dollar is the base currency.  

Why do we trade Forex? 

Well the answer again is very simple. An in the case of every other commodity, demand and supply determines the trading.  Foreign currency must be bought and sold fora few reasons.
Governments require them to increase the BOP (Balance of payment) situation. Foreign currencies almost replaced Gold in this respect.
Individuals require foreign currency at the time of traveling to a particular company.

A Forex market is a place where the trade takes place. It has some basic differences to stock market. There are some glaring differences.

There is no opening bell or closing bell for Forex Market.
The Trading happens 24/7  
A broker can enter and exit at any time. He can create a schedule for himself.
 The Market it open on Sundays too..
You are not required to present yourself physically. A networked computer is enough to do the trading.

A forex broker is a person who facilitates the trading of currencies. You can open an account with him and begin trading in currencies. There are brokers now offer the choice of opening an account for 25 dollars. With a small investment like this you can learn the trade better before entering the market in a big way.

Why the profits are higher in Forex trading?

FX trade returns a profit percentage that is unheard and unmatched by any other traditional trading methods. That is the reason behind people entering this market in a big way. Here the traders follow a unique high leverage margin system.  This makes it possible to earn in a big way. Small changes in the currencies could result in huge change in our fortunes because of this unique margin system. Let us learn it in detail

High leverage margin system

As I told High Leverage is what makes FX different from other business. Leverage in FX market is usually 100:1. For example, if you bring in a capital of 1000 dollars, you can trade 100000dollars. Now let us translate this into real business.  With an investment of 1000 dollars you trade in currencies worth 1lacs. Out of those 100000dollars worth business you earn 1percent profit. The profit thus earned is equal to 1000dollars. The amount you brought in as capital is 1000 dollars.Your profit thus is 100 percent with high leverage.

Now without leverage think about how much you will make with 100000 dollars business. You will make only1percent profit with 100000dollars worth investment. That is the difference that High leverage brings in to Forex business.

Now let us go little deep in to this business. Suppose with 1000 dollars worth business, we make negative business of 1 percent. I percent loss is equal to 1000 dollars is equal to the amount you invested. Add to this the commission you pay to the broker you lose a lot of money. High leverage is a double edged sword actually.

What makes you a shrewd investor here is the Knowledge. There is technical Fundamental analysis that are required to learn the basic of this trading. I am not going to make you sweat with those technical details. An investor must keep his eyes and ears open. There are political and economical factors that control the currency market. To make it simple if there is an impending political turmoil in a country, uncertainty etc then, you can guess the value of the particular currency will go down. 

Like in economical terms an impending financial decision that will adversely affect the economy will make the currency of the particular country move downwards. You must be prepared and glued to the changes that are happening in the currency.  and Let us learn little about going long and short.   I told you in ForexMarket currencies are traded in Pair. In the case of USD/JPY, USDis the base currency and JPY is the quote currency. If you buy the base currency selling quote currency in the anticipation of the raise in the prices of base currency it means you are going long. In the example you will sell JPY and buy USD dollar to sell it again at a higher price.

In another example, we buy JPY selling base currency USD. We are anticipating USD to move downwards. Once the currency goes down we make profit again by selling JPY. This is called going short or short selling.

There are many brokers now offering this service at lower investments. Given the opportunity to make huge returns it a good option to try with small investment. Once you are confident,you can move forward and invest higher. I would like end this article by stressing the need of acquiring that knowledge. Learn a lot before deciding to invest. Research on every topic before you invest and keep learning to keep yourself updated.

Forex Trading - Easy As 123 - Forex Learning For Beginners

Making foreign exchange trading an easy thing to learn is a challenge to most educators. There are a lot of technicalities involved in a forex trade, not to mention the gut-feel a forex trader should have in making a successful forex trade. The School of Pipsology has made things as easy as can be by segmenting the learning into levels that are more manageable to the beginner. Just like when you were learning how to count, you can learn forex trading in a snap. You go from Pre-school level learning the basics, and move on to other concepts in the grade school, high school, and college levels. More advanced studies are likewise available to those who want to take their forex trading education to higher levels.

First things first. If you want to succeed in forex trading, you should not bypass the basics. Take the time to learn the basics of forex options trading and currency trading just like when you were learning your 123s.

The first step to learning how to trade forex is to know about the types of trading and the types of charts used in analyzing forex figures. This is covered in the Kindergarten level. The 1st Grade level covers candlestick patterns used in analyzing how the market is trading.

Next, 2nd Grade, comes learning about support and resistance levels for market tolerance as indicated by trend lines.

The 3rd level covers how the Fibonacci retracement and extension levels can be applied to your charts and help you place your buying or selling orders. Pricing movements and charting are covered in the 4th Grade level.

And finally, on your last level in the elementary stage, you learn about the common chart indicators like the Bollinger Bands, the MACD, and the Relative Strength Index among others.

Once you have gotten these learnings down pat, you can move on to the high school stage and learn about more complex forex concepts. The succeeding forex education curriculum is available at the School of Pipsology. These levels will be easy enough for you to understand once you have a strong basic foundation.

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Forex Trading - Preparing For the Forex Market

Soon you will be raking in pips when you study forex trading at the School of Pipsology. This is because learning forex trading is made so much easier by people who like you have had their fill of self-educating before becoming successful forex  traders. The School of Pipsology curriculum was developed with beginners like you in mind trying to figure out the odds and ends of forex trading. By replicating your schooling experience, the forex trading curriculum takes you through the successive grade levels as you learn the basics of trading in the forex market.

• At Kindergarten level, you will learn about the types of trading and the types of charts used for the analysis of the forex market. At the end of the level, you will already know how to analyze both market fundamentals vis-a-vis the economy and the price movements in the forex market using charts.

• The 1st Grade level focuses more on reading candlestick charts as a way to read market behavior. At this point, you will learn how to read the buying or selling activities of the bulls and the bears.

• The 2nd Grade level familiarizes you with the support and resistance levels. It tells you how to read the upper limit or resistance, the highest point before an upward market turns towards the opposite direction. The part where the downward movement switches back upward is read as support. With the support and resistance levels, you will also learn about plotting trend lines and channels.

• You will learn about the Fibonacci retracement and extension levels at the 3rd Grade level. These levels are used as support and resistance levels, and profit taking levels respectively. You will see how traders watch these levels to place their buy and sell orders.

• Moving averages is the focus of the 4th Grade level. Simple and exponential moving averages are introduced to you as a way of tracking the performance of forex trading prices and of showing you how other traders are moving.

• The 5th Grade level takes you through each of the most common chart indicators used in analyzing market indices. The Bollinger Bands, the Relative Strength Index, and the MACDs among others are introduced to you in this Grade level.

Click Here This is simply the start of your forex options trading and currency trading education. These basics will allow you to move on to the more advanced levels in the School of Pipsology curriculum. After completing the course, you will be able to actively do forex options trading and currency trading and start raking in pips.

Forex Trading Tips You Need to Know to Make Money

Plenty of individuals have started using forex trading as a way to make some more cash. Absolutely anyone with a live internet connection can try trading currencies online which has made a crowd of people to play the markets in the hopes of gaining money.

We've heard much of conversation about currency trading because of the influx of individuals who have started trading as a "do it from home" business. Obviously as more people jump into forex, it's normal that rushes of people want to learn the tricks behind cashing in from currency trading. OK everyone -, let's have a closer look!

Making money with currency trading is similar to trading stocks: You want to buy low and sell high. As an example, if you are buying Canadian currency with US dollars, each CDN dollar costs around 0.75 cents as of now. If you believe that the Canadian dollar is going to increase in value, then obviously the strategy is to purchase it today and then unload it the days ahead.

traders take a great deal of time studying currency pairs (the Mexican Peso and Hong Kong Dollar are one example of a currency pair), searching for key indicators or economic indicators to determine buy and sell transactions and make a profit.

Forex Traders also employ automated trading softwares that automatically them spot profit opportunities. Utilizing a forex program is such an important part of any currency trader's money making kit, as it looks at the markets and spots out trends and buying patterns that will turn a profit.

Think of your programs as a research assistance tool; you'll see lots vendors claiming they have the best program, almost all of these programs are utilizing similar realtime data - what makes them different is the mathematics behind them.

Every now and then individuals are a touch scared off by these forex programs because they think the programs will be too hard to use, however they're a snap to make use of. You can be happy that these softwares have been programmed - commonly by a squad of professional traders and mathematicians - to analyze the trends of the market and pick out juicy trades that anyone with the program can make.

If you're considering getting into currency trading, it's in your best interest to grab some type of trading software like this in order to help you make money making trades immediately. This type of software can rapidly produce profits for you on it's own. This will give you extra time to do further research on the markets and later on you will use a combination of the trades the program points out and the trading ideas you generate yourself based on your info.

Currency traders all share a common characteristic - they are ok with taking risks and can handle the occasional swing. Actually, many embrace this aspect of the job! Obviously it requires a specific type of midset, however if you have what it takes you can be making some terrific cash.

Something that makes forex trading appealing to many traders is the fact that even if a currency falls in relative value, it's really never going to fall all the way to zero. This is a significant change over options trading or trading stocks.

If you want to get more forex trading tips just make sure you pace yourself - it's easy to get overwhelmed!

Click Here   to see how you can start a free trial of the top forex trading program available.

Understanding Forex Trading For Beginners

What is Forex Trading? Perhaps you've heard of it somewhere in passing, but really never given Forex Trading much thought. I wanted to write a brief guide here to explain it in easy to understand terms.

Forex is short for "Foreign exchange," and simply means the online trading of foreign currencies. All currencies around the world are assigned a three letter code, such as USD for United States Dollars, EUR for the Euro, or GBP for the British Pound. Trading is done in combinations called a "cross."

A cross is formed by combining the codes for the two currencies you are working with, forming a 6 letter combo such as GBPUSA. When doing a combo, the more expensive currency is listed first. The four most common currency pairs that dominate the Forex Market are:

Euro vs US Dollar USD vs Swiss Franc USD vs British Pound USD vs Japanese Yen

After the cross, you will see a number. For example, if you saw GBPUSD=1.529, what that means is that it takes 1.529 US dollars to equal 1 British pound. When a rate changes, it is displayed in bold print, so a change from 1.529 to 1.531 would equal a move of 3 points.

The goal, in very simplistic terms, is to invest in a currency that appreciates in value in relation to the other currencies, AKA buy low - sell high.

Unlike the stock market, Forex currency trading runs 24 hours a day. Since every country around the globe trades on the market, it's always business hours somewhere. So if you are just researching Forex, you can do it in your spare time to get a feel for the real time trading without having to quit your day job.

There are online Forex brokers, just as there are online stock brokers. In the past, only large financial institutions could trade on the Forex Market, but now with the advances of technology, even individual investors can profit with online currencies trading.

The important thing with any investing is to do your homework. Take time to watch and understand the markets before jumping in.

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Forex Trading books Trading system

The Natural Behavioural Cycle (NBC) Trading System The theory behind the system is that, there is a rotational, repeating cycle in the movement of the market prices. This is much like that of the waves of the ocean, where the waves react in relation to the invisible undercurrents of the ocean. These cycles keep repeating itself again and again with a time frame of not longer than 2 months for each cycle (from experience). The reason that such a phenomenon happens and repeats itself is due to the nature of human behaviour.

 All through time, people have basically acted and reacted the same way in the market as a result of: Greed, Fear, Ignorance, and Hope Markets can change, but human nature has stayed the same for centuries. Take a sneak peek at the NBC Trading System Model, How to trade Click Here! Four Reasons Why 241Forex Is Different:Offering 2 Forex Trading Systems For The Price Of 1 It helps you to start trading successfully within 24 hours.

Yes 1 day! The "24-1" differentiator. It gives you 2 different trading systems for the price of 1. The "2-4-1" differentiator. It is suitable for beginner, intermediate, and advanced traders. The "Keep Your Own Pace" differentiator. It can be tweaked to fit your own style of trading. The "Personalize It" differentiator. Both systems use a form of safety net. Trading is all about money management and we have employed an excellent way of controlling your losers and making sure that winners don't turn into losers.

 Further tweaking instructions Except your trading experience there are other variables that make you unique such as different goals, capital, time etc. That's why you will find which parameters to tweak so you can find the set-up that suits your trading style and situation best.