Sensex tumbles 172 points

Greece debt woes, weak European stocks impact sentiment

MUMBAI: The Bombay Stock Exchange sensitive index, Sensex, fell 172 points on Monday mirroring weakness in European stocks over concerns if the $146 billion EU-IMF package approved on Sunday to rescue debt-riddled Greece would work.

Funds and investors booked profits at existing higher levels pulling the barometer index down by 0.98 per cent or 172.63 points to 17386.08.

This ended two straight sessions of gains, which also had followed strength in global markets after the single European currency euro gained in anticipation of the rescue package. The financial crisis in Greece worsened after rating agencies downgraded that country's debt, raising doubts about its ability to meet $85 billion worth bond payments later this month. The benchmark index dropped 212 points in the final hours to touch an intra-day low of 17345.92, after the European stocks opened in the red on unease over euro zone sovereign debt levels.

Analysts said weak global cues, coupled with sustained selling in index heavyweights such as Infosys, RIL and ICICI Bank dragged the barometer.

The euro weakened after three successive days of advance, and European shares fell as the $146 billion EU-IMF bailout of Greece failed to calm concern about the region's growing debt problems, said an analyst.

The largest financial rescue of a nation from bankruptcy will involve credit of 80 billion euro from the 15 other euro zone nations and 30 billion euro from IMF.

Rupee turns weak

The rupee on Monday weakened by 15 paise to close at 44.51/52 against the U.S. currency due to weak domestic stock markets and a strong dollar overseas. Dollar demand from importers, too, put pressure on the rupee sentiment, dealers said.

The domestic unit opened lower at 44.54/55 from its last weekend's close of 44.3550/3650. It moved in a range of 44.47 to 44.6050 during the day. — PTI

SEBI issues norms for credit rating agencies

New rules to be implemented latest by June 30

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CRAs to disclose the shareholding pattern

To keep all records in support of each credit rating

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MUMBAI: The Securities and Exchange Board of India (SEBI) has issued transparency and disclosure norms for credit rating agencies (CRAs) order to impart higher credibility to the processes and procedures associated with credit rating.

“Recent events in the global financial system have underlined the pivotal role that credit ratings play. Effective use of credit ratings by the users is crucially dependent upon quality and quantity of disclosures made by the credit rating agencies (CRAs),” SEBI stated in a circular to all credit rating agencies on Monday.

The CRAs were asked to take necessary steps to implement this circular immediately and ensure its full compliance at the latest by June 30.

The half-yearly disclosures, stipulated by the regulator, would be made by the CRAs within days from the end of the half-year (March/September). The yearly disclosures stipulated would be made by the CRAs within 30 days from the end of the financial year. However for 2009-10 only, the half yearly and yearly disclosures stipulated would be made by the CRAs by June 30.

SEBI stated that a CRA can make additional disclosures other than those stipulated with the prior approval of its board. The CRAs were asked to communicate to SEBI the status of the implementation of the provisions of this circular by July 15. “They shall also place the compliance status of this circular before their boards. The CRA shall disclose its shareholding pattern as prescribed by stock exchanges for a listed company under clause 35 of the Listing Agreement.”

A CRA would be formulating policies and internal codes for dealing with the conflict of interests: A CRA shall ensure: that its analysts do not participate in any kind of marketing and business development including negotiations of fees with the issuer whose securities are being rated; that the employees' involved in the credit rating process and their dependants do not have ownership of the shares of the issuer; prompt review of the credit ratings of the securities as and when any of its employees joins the respective issuer.

The CRAs were asked to keep all records in support of each credit rating and review/surveillance thereof: The important factors underlying the credit rating and sensitivity of such credit rating to changes in these factors; summary of discussions with the issuer, its management, auditors and bankers which have a bearing on the credit rating; decisions of the rating committee(s), including voting details and notes of dissent, if any, by any member of the rating committee.

“If a quantitative model is a substantial component of the credit rating process, the rationale for any material difference between the credit rating implied by the model and the credit rating actually assigned. These records should be maintained till five years after maturity of instruments and be made available to auditors and regulatory bodies when sought by them,” it stated

What Are Shares All About and How to Invest in The Share Market?

What are shares and the stock market all about?

All business enterprises need funds to meet their short term and long term business goals. Such capital (big amounts) can only be raised when large number of investors are available and interested to invest in business. Institutions like BSE (Stock Exchange) give a common platform to a "Business Man" and an "Investor" where a business man can sell its stock and an investor can but the same stock. Institutions like BSE give the flexibility of buying and selling of stock as and when required. Stock (shares) are nothing but 'ownership of business broken-up into a large number of small units. Each unit of stock can be easily bought and sold independently. And this buying and selling of stock takes place in stock exchanges like BSE and NSE.

There are 23 recognized stock exchanges in India. Out of these, 4 stock exchanges are national and 19 are regional stock exchanges. The 4 national stock exchanges are BSE (Bombay Stock Exchange), NSE (National Stock Exchange), and OTCEI (Over the Counter Exchange of India). In a stock exchange like BSE, shares are traded (bought and sold in daily basis). Securities are a very broad term which can be defined as an "investment instrument issued by government or a company indicating the evidence of either ownership (shares) or creditor ship (bonds, debentures). The securities can be bought and sold from one party to another. If in a trade, the ownership cannot be transferred then it cannot be classified as securities". Securities include stock, mutual fund, bonds, and debentures etc.

Security market can be classified into capital market and money market. In capital market long term investment options are traded like stock, bonds, mutual funds, debentures etc. Money market makes it possible for companies to generate funds to meet its short term demands (working capital). Examples of money market securities are T-Bills issued by government for its own borrowings. A Primary market (BSE) is where a company in search of capital makes its first contact with general public. In other words IPO's are bought and sold in Primary market (BSE). The secondary market comprises of buyers and sellers of stock and debentures subsequent to original issue (IPO). Primary and secondary (BSE) market is not physically segregated from each other. Both IPO's and subsequent buying and selling of stock take place in instructions like BSE.

How to buy and sell shares in stock market?

When we are talking about buying and selling of shares, there are mainly two type of shares we can trade. First is the IPO's and second is the regular shares daily traded in the stock market. Both IPO and regular shares can be traded through online trading. Online trading is the most convenient way of buying and selling of shares from the comfort of your house or office. You are not authorized to buy or sell shares directly from the stock exchange. Only brokers can trade shares on your behalf. There are quite a few brokers available in India who provides online share trading facility. Like HDFC Bank, ICICI Bank, Axis Bank, SBI etc. To know more about opening an online trading account please visit the link

Is investing in shares really risky?

When you are thinking to buy shares and you are a 'first timer', think like a business man instead of a trader. This type of thought process will drastically reduce the risk involvement in share trading. FOCUS ON COMPANIES FUNDAMENTALS.

Step-1) List down 5 companies that you remember by its brand name. e.g infosys, Tata Steel, SAIL, Reliance, L&T, Tata Motors, ICICI...

Step-2) List down 5 companies that you think has a stable product.e.g. Tata Steel, Tata Motors, Hindalco, infosys, ICICI.

Step-3) List down 5 companies that has made reasonable business in last 3 years.

e.g. Tata Steel, Infosys, ICICI etc.

Objective is to know one name that has a strong fundamentals. If you do one hour research in the internet you will get your answer. FOCUS ON LONG TERM INVESTMENT. When you are thinking of investing in shares, think to keep your money invested for at least 8/10 years. In other words if you buy a share now, you shall hold it for at least 8/10 years. When you have this kind of time in your hand you can take bigger risks. When I say risk, the fear is not to loose money but how much one can gain. If you invest in Insurance Policies, your money is safe. You will never loose. But you will gain not more than 4%-5%. Means @ 5% interest your invested money will take 15 years to get doubled. If you invest in Fixed Deposit, your money is safe. You will again not loose.

But you will gain not more than 6%-7%. Means @ 7% interest your money will take 10 years to get doubled. If you invest is Debt Linked Mutual Fund, your money is comparatively safe. The chance of loosing money is very less. But when we are talking about investment time span of 8/10 years, loosing money in debt schemes is negligible. You can expect average returns of 8%. Means your money will take 9 years to get doubled. If you invest is Equity Linked Mutual Fund, your money is at risk. The chance of loosing money is very high. But when we are talking about investment time span of 8/10 years, loosing money in equity mutual fund is very less.

You can expect average returns of 12%. Means your money will take 6 years to get doubles. If you invest is Equity/Shares directly your money is at high risk. The chance of loosing money is very high. But when we are talking about investment time span of 8/10 years, loosing money in shares is very low. Only care you have to take is to invest in companies with very strong fundamentals. In layman's term select a company which is not going to close in next 8/10 years, which is only going to grow in next years. When I talk about companies with strong fundamentals I am talking about Infosys, Tata Steel, Reliance, Tata Motors etc. You can expect average returns of 16-18%. Means your money will take only 4 years to get doubled.

Important is to understand, if you have less time in hand invest in less risky investments. But if you have good time in hand (5-10 years or more), you can invest in share market / Equity linked mutual funds and feel safe.

The author is a big enthusiast of the process of Investment and aspires to set-up a highly successful online business of himself. He is a firm believer in the concept of 'working for self can make this world a better place to live'. He has also been heavily influenced by the theories and practices of Warren Buffett and would like to practice investment just like his guru.

Market Trend - Using Trendlines to Your Advantage

It is part of human nature to want to feel like we accepted, and a welcome member of something larger than ourselves. If you're relatively new to the stock market trading game, you've probably heard people say things like "the trend is your friend," or "never go against the trend," without really knowing what they meant. Although the stock market is a very dynamic place, with prices constantly moving up and down all the time, it's important for all new investors to realize that prices don't just increase or decrease arbitrarily: what you're looking at is the manifestation of the market trend.

Outside the stock market, trends don't always make much sense, especially if you're talking about fashion or music trends. Thankfully, the stock market trend is usually motivated by much more logical principles of economics and mathematics, although public opinion and emotionalism can still act as interruption some of the time. Basically, trends in the stock market are defined as the overall direction in which prices are observed to be moving, either up, down, or neutral (flat). If you've been studying up on the practice of technical analysis, you'll know that trends are very important for predicting the future movements of stock prices before they happen.

It's important for new investors to realize that the market trend is one of the most important things they can learn to identify on stock market charts. In order to confirm that a trend is upward moving, you have to be able to point out at least two low points on the chart, and the second low point must be charted at a point that is higher than the first. Conversely, a downward trend can be confirmed by looking for successive high points, each of which closes lower than the previous one.

Of course, you won't have to spend much time looking at stock charts to realize that the market trend doesn't always take a completely positive or completely negative slope throughout the day, week, or month. There are smaller trends that form within the larger trends, which can sometimes appear like pauses or even retracements in the larger trend. These internal trends are classified as intermediate, short-term or long-term, depending on where they are positioned inside the larger trend. Becoming skilled at spotting and identifying trends is an important skill for a trader, because it can prevent them from making premature sales, or early purchases.

If you're interested in learning more about Market Trend or you looking for Stock Picks ready to breakout, go to Stock Market Video the best source on the Internet that is recognized as the leading provider. Visithttp://stockmarketvideo.com and get your FREE Daily Video!

Can Gold Climb to $6500 an Ounce? Investing in Gold Stocks Maybe the Best Investment of This Decade!

Right now, gold prices are hovering around $1,100/ounce. Can gold prices go as high as $6,500/ounce in the medium term? If you take a look at the charts of gold and silver appreciation against 23 currencies in the past ten years, one thing becomes crystal clear!

It is not the gold and silver that are appreciating rather it is the currencies that are losing against the gold and silver. What this means is that the regime of fiat currencies that was put in place after the collapse of the Bretton Woods System in 1973 is fast heading towards it's implosion. What's the reason?

Governments all over the world including the US are abusing their currencies and destroying their people's purchasing power by spending beyond their means and using debt to stay afloat. In US, the FED is printing green backs trying to goose up an economic recovery by taking up huge deficit financed by a massive debt.

Soon, this economically irresponsible behavior is going to lead to economic chaos, upheaval and later on to a recovery. Those who hold on to gold and silver investments are going to reap the most reward. As these governments print more and more of their currencies to spend more and more in hope of starting an economic recovery, gold and silver prices are going to appreciate sky high.

Gold offers the safe way to hedge against these falling fiat currencies. Take a look at these gold stocks; Ventana Gold stocks skyrocketed 3,000% in just six months, Appleton Exploration surged by more than 3,000%, Azteca Gold leaped by 2,300% and so on. This might be the best time to invest in gold stocks!

Mr. Ahmad Hassam has done Masters from Harvard University. Turn $200 into $100K in just 1 month with this FREE Penny Stock Trading Report that shows how to find killer stocks that are about to triple in price in the next few days. Watch this weird 30 minutes Stock Trading FREE video just now, don't miss it!

Investing in Funds Using a Fund Supermarket Could Save You Time and Money

In financial services it can often save money to leave the middle man in. And when it comes to investing in funds it can be beneficial to let someone, in this case a website, do the hard work for you.

Funds enable investors to pool their money with other investors to get access to more stocks or bonds than most people can buy or manage themselves. Funds can usually offer greater diversification, professional management and more convenience than investing in individual stocks or bonds and are looked after by a fund manager, who researches the market to try and provide a good return.

But because investing in funds can be complicated there are so many to choose from, many investors research and manage their funds using a fund supermarket.

Discounts and offers

These online platforms provide a facility for buying and selling a wide range of investment funds from different fund management companies. But generally one of the attractions of a fund supermarket is the discounts and offers available to customers.

Usually the initial charge, which you pay every time you invest in a fund, is as high as 5.50 per cent but via a fund supermarket you can reduce the upfront fee by as much as 100 per cent and some even offer cashback when you invest your money or transfer certain amounts from other investments.

Manage your money in one place

As well as big discounts fund supermarkets can make buying funds and managing your investments straightforward by bringing them all under one roof. So if you have existing investments with separate fund managers a fund supermarket can help you consolidate all of your investments and bring them together in one place.

Fund supermarkets also give you access to a large range of funds, Fair Investment Company allows you to choose from up to 1,300 funds from more than 90 fund managers, including Invesco and Jupiter. once you are registered you can easily switch between funds in the future, and the minimum investment is often as little as £500 or £50 a month.

Research

Fund supermarkets allow you to make an informed decision about how and where to invest your money. They will often enable you to see tables, charts and company information so you can compare and contrast the different deals at your computer screen.

You can also compare funds from different sectors against each other to see which one best suits your investment needs.

ISA investments

You can also use funds to take advantage of your annual ISA allowance by investing within your individual ISA wrapper. You can either choose to invest the whole annual ISA allowance as stocks and shares within a fund, which is up to £10,200, or up to £5,100 can be invested, with the other £5,100 reserved solely for cash savings.

Using a fund supermarket to do this bypasses hefty charges, some of which can be up to 5.50 per cent of the initial investment. This allows you to make the most of your tax free allowance in one go. Existing ISAs can also be brought together into one place using a fund supermarket.

For fund quotes and advice visit Fair Investment Company

Article submitted by Lois Avery, Editorial Assistant for Fair Investment Company Ltd. Writing about savings & investments and pensions. Fair Investment Company is a financial services provider, acting as an 'introducer' for consumers to other companies who provide financial products and services. Through our website Fair Investment Company we offer a range of online tools that enable consumers to engage with leading financial products and services so they can make an informed decision about what to do with their money.

Mutual Funds and Other Cruise Control Investing Approaches May Perhaps No Longer Cut It

It used to be that if the analysts called it a burst bubble, or a recession, or an economic slowdown, all you required to do was hold your breath and hunker down, whilst it played itself out; and pretty soon you found items had been on the mend. Those had been the beneficial days. Now although, booms, busts, bubbles and recessions are just as normal as the waves that rock your boat. If you desire to hunker down, you could possibly too make your self acquiring comfortable in there. They wipe out your company, leave your carefully planned-out portfolio in tatters, and should you aren't punchdrunk already it looks like acquiring used to being wiped out is one of the very best expense methods to have nowadays.

And not without having reason as well. Even a minor exposure to how hedge funds work, shows that you can find alarming issues in the air. The huge banks and also the hedge funds have been constantly involved in moving fantastic sums of money out of the country; it definitely points to some thing. You cannot actually predict what exactly it may well be even though or put together factors investing techniques for it. Just a couple of years ago, it was the housing bust, wherever individuals bought too much property they could not afford, with money that was not theirs. Who's to say exactly where the next scare is heading to come from? It might be treasury bonds, or investments in South America or anything at all.

But you do not truly have to have particular data; it is possible to still plan your life on certain all-weather investing techniques that may protect you no matter what. For example, keeping your debt levels under control, is an ever-popular life strategy. At a time when one of these economic Katrinas is bound to tear via your life sooner or later, a beneficial method to conduct factors could be to lower your monthly bills for everything, and to lower debt in general. Picking a fixed-rate mortgage to refinance now will be fantastic. If you've everything left on your student loans or your car loans or on your credit card, it could be finest to direct your income towards bringing them down as far as feasible. Everything you need to purchase, you could be much better off purchasing for cash, whenever you save up for it.

You are heading to have to not strategy on any support from anyone but your self. Everyone who relied on their pensions and their health insurance from GM is beginning to wake up to a new reality. Even government programs like Medicare or Social Security, are just as well generous being in a position to stay afloat for considerably longer. Needless to say it is the government, and they'll maintain them in place for long as they can. But the party has to end sometime. So much for lowered expectations. Let's come down to basic expense approaches. You've been performing the disciplined thing over the last ten years - you spread your money out among all the respectable low-cost mutual funds, and you did this regularly. There nevertheless isn't a lot to show for it, what with the shakeup inside markets.

In case you believe that you simply have to speculate to accumulate, and would like to bet on China or India, or short treasury bills, you just entered a raging debate on regardless of whether these kinds of tactical investing techniques may well perform anymore. It just takes too much knowledge and too much disciplined timing. But then there's definitely no other selection. The whole theory that you just could bet risk-free, and stay on top may well just belong to an additional era. We live in a time when America may well no longer be capable to dictate terms inside world. When American firms lose clout and power, investments in them, no matter how secure, may perhaps inevitably not do very much for you. The way individuals used to bet harmless across a variety of stocks, nowadays, betting across a range of expense techniques is exactly where it is heading. Try a tiny of the old technique, try a tiny of the new. Who knows which one will strike?

Find out more about the author in:

Good Investment Management For Average People

You can pay a penny on the dollar for good investment management or pay lots more for asset management like some rich folks do. Does the latter guarantee good investment returns? No way. Whether they call themselves investment management companies or asset management firms, you lay your money down and you take your chances. Why pay more?

Investment management or asset management takes various forms for the individual investor. Hedge funds might charge 2% yearly plus 20% of profits, and are out of bounds for the average investor. You can't legally invest there unless you are rich by normal standards. That's fine with me because I'm not interested in paying big bucks for investment management that offers no guarantees. The good news is that there are some very good investment companies out there that work cheap in my opinion. If you are like most people and lack the experience and skills necessary to manage an investment portfolio, listen up.

Good investment skills take years to develop and few people ever develop them without losing considerable money during the learning process. Skip the aggravation and put the professionals to work for you on a budget. Mutual funds are the investment management alternative of choice for 10s of millions of Americans. Why? That's what they are designed to do... manage money for individual investors who are not necessarily rich or financially sophisticated. Now, let's talk about good investment management for pennies on the dollar.

Not all mutual funds, especially stock funds, are created equal when it comes down to the cost of investing. A $10,000 investment in the wrong fund could cost you $500 off the top in sales charges plus yearly expenses of $200 a year, increasing with the value of your investment. On the other hand, a similar fund with a more favorable cost structure is likely available with no sales charges and yearly expenses of less than ½%, total cost of investing. The only predictable investment performance difference between the two is the cost of investing. Every penny you pay in sales charges and fund expenses comes right out of your pocket, and acts to reduce your net profit or investment return.

The very lowest cost of investing can be found in NO-LOAD INDEX FUNDS. There are no loads (sales charges) here and low yearly expenses, because the investment management team simply invests in the basket of securities that are included in an index. For example, if you want to own a small part of a large portfolio of major stocks, an S&P 500 INDEX fund will have you invested in the 500 most valuable U.S. stocks for less than a penny on the dollar, less than ¼% a year if you pick the right one. The two largest fund companies in the country, Vanguard and Fidelity, offer no-load funds. One of them offers a nice variety of index funds at very low cost to investors.

I've followed mutual fund companies since the early 1970s; and watched as the really good investment management companies among them grew to be some of the very largest. In my opinion they reached the top by offering good performance, good service, and a low cost of investing.

A retired financial planner, James Leitz has an MBA (finance) and 35 years of investing experience. For 20 years he advised individual investors, working directly with them helping them to reach their financial goals. Jim is the author of a complete investor guide, Invest Informed, designed for average investors or would-be investors of all levels of financial background and experience. To learn more about investments and investing and his new financial guide go tohttp://www.investinformed.com.

Stock Trading - How to Invest in Stocks

In this article, we shall add to the glossary of stock trading basics by explaining what are stock market orders.

Stock market orders: As more and more investors start to trade online to take advantage of the reduced transaction costs and the convenience, it is important for them to be totally conversant with the methodology of placing buy and sell orders with their brokers. You can, in fact, use a variety of buy and sell orders so that you can take more control over the transaction and not be entirely at the mercy of the broker. Some types of orders exercise control over the transaction by price while others control it by time.

Here is a rundown on the various types of orders that you can use with your broker.

Market order: this is the quickest and the simplest method of placing an order and getting it fulfilled. In a market order, you instruct the broker to buy or sell at the prevailing price at the moment of execution. If you are following the market, do not expect to get the exact price that used the on-screen but you can expect a price that is fairly close unless your stock is hugely volatile. Remember that there is no guarantee of any price and you will simply had to trust the broker to do his best. This is also the cheapest type of order in terms of transaction cost.

Limit order: the limit order is an order in which you instruct the broker to buy or to sell at a specific price. If your price is not available, the transaction will not go through. You therefore have control over the price at which you will enter or exit a position. Remember to check with your broker what he charges to execute limit orders. If the charge is higher than you would like, and your stock is not particularly volatile, you may be better off placing a market order.

Stop loss order: stop losses are standard risk management practices that prevent you from taking large losses on open-ended positions. You predetermine what losses you can live with on a particular stock and, if that price is reached, you sell straightaway and crystallise your losses. Remember that you will lose some of the time at least and the trading discipline enforced by a stoploss means that you can limit your losses to what you are comfortable with. You will normally place a stoploss order by giving the broker a price trigger that would be below the prevailing market price. The moment the stock drops to your stoploss price, your order becomes a market order which the broker will execute instantly.

Trailing stop order: this operates in a similar fashion to a stoploss order except that it is used to protect a profit rather than contain a loss. If your stock is already in profitable territory, you set a take profit price to protect you against a sudden drop in the price. If your take profit price is reached the order immediately becomes a market order and your broker will sell without reference to you.

Good till cancelled order: this means that the order continues to to be in effect until you cancel. This is used in conjunction with other orders to control the timing.

Day order: a day order is an order that is valid only for that particular trading day. If the order cannot be executed, you will need to place a fresh order on the following day.

All or none order: this means that the entire order has to be filled and a partial execution is not acceptable. This is useful particularly in the case of thinly traded stocks.

For more information articles on stock trading and stocks to buy visit our Stock ideas website.

Retirement Planning

Single Premium Immediate Annuities (SPIAs) And IRAs

A single premium immediate annuity is an annuity contract with an insurance company in which the contract owner contributes one lump sum (single premium) and immediately begins to receive annuity distributions either monthly, quarterly, semi-annually or annually from the insurance company. Oftentimes the agreement with the insurance company is to receive a specified amount for life pursuant to the account holders life expectancy. Commonly referred to as a SPIA, this annuity has no accumulation period, or period of time in which the annuity grows in value due to appreciation of the underlying assets and/or due to future contributions (future premium payments).

Most SPIA distributions are regular, level payments. Your primary distribution options include:
1. Single Life - The SPIA distribution payments cease upon the death of the account holder.
2. Joint and Survivors Annuity - The SPIA distribution payments (lower in amount than single life payments) continues to pay annuity distributions to a surviving beneficiary.
3. Period Certain - The SPIA distribution payments cease after a specified period of time, even after the account holders death, in which case the designated beneficiary receives the remaining distributions.

The main purpose of a SPIA is to provide retirement benefits for the account holder and/or spouse. SPIA's are funded either with after-tax contributions (known as non-qualified SPIA) or with pre-tax contributions (known as qualified SPIA). After-tax SPIAs distributions are part tax-free (a portion of the distribution is considered a return of contribution and, thus, not taxable). Pre-tax contributions are funded by employee retirement plan assets which are, themselves, funded with pre-tax contributions such as 401(k) plan employee contributions and employer matching contributions. In this case the SPIA is created when the retirement assets are converted to a SPIA, upon retirement. This pre-tax, or qualified SPIA most often involves the utilization of an Individual Retirement Arrangement (IRA).

Pre-Tax SPIAs and IRAs
There are only two types of IRAs:
1. Individual Retirement Account and
2. Individual Retirement Annuity

A Pre-Tax SPIA may be purchased by rolling retirement funds into an Individual Retirement Account and then purchasing a SPIA, inside an Individual Retirement Account. In such case, the IRA is the owner and recipient of the SPIA distributions and Required Minimum Distribution (RMD) rules apply to the Individual Retirement Account, which includes the value of the SPIA.

A Pre-Tax SPIA may be purchased by rolling retirement funds directly into an Individual Retirement Annuity, which then purchases the SPIA. In such case the SPIA distributions are considered paid directly to the individual owner of the SPIA. With an Individual Retirement Annuity there is no IRA Account RMD requirement (the SPIA calculates its own separate minimum distribution amount) as the IRS assumes the IRA Annuity will pay out distributions that equal or exceed any RMD calculation.

In some cases an individual will roll over retirement funds into an IRA Account and then use some of those funds to purchase a SPIA. There is much confusion regarding the RMD rules in this case so let's clear it up. When you use part of your IRA Account to purchase a SPIA, the SPIA is part of the IRA Account and you must calculate your RMD by including the value of the SPIA. This can be tricky as the value of the SPIA may not be easily determinable every year. Because an RMD is based on the value of the funds in the IRA Account at the end of the prior year (i.e. a 2011 RMD is based on the value of your IRA Account as of 12/31/10) you must include in this value calculation the value of the SPIA. How is this done? You must determine the present value of the SPIA at the end of the prior year so that the value of the Individual Retirement Account can be determined in order to then determine the RMD.

Because of this added complexity in buying a SPIA inside an Individual Retirement Account, knowledgeable financial advisors will advise purchasing a SPIA through the use of an Individual Retirement Annuity and avoid the purchase within an Individual Retirement Account.

Tom is a Certified Public Accountant, a Certified Financial Planner, CLTC (Certified Long-Term Care) and President of Cerefice & Company, the largest CPA firm in Rahway, New Jersey. Tom works with clients helping them manage their money, retirement planning, college savings, life insurance needs, IRAs and qualified plan rollovers with an eye towards maximizing tax benefits and minimizing taxes. Tom is founder of the Rich Habits Institute and author of "Rich Habits".

Stock Market Investing - who is looking to stay invested in a particular company

Many people think that if you are a long-term investor who is looking to stay invested in a particular company for several years, the timing of your entry point is not that important. However this isn't necessarily the case because timing is actually very important.

Okay so it doesn't really matter if you buy a stock at 340p or 345p, for example, if you are planning a long-term investment, but you have to look at the bigger picture. Unfortunately the share price of an individual company is not entirely dependent on their own fortunes. It also moves in accordance with the wider stock market.

There are exceptions of course. If you invest in small-cap stocks then you will find that they are relatively independent of the wider market, and the share price is mainly driven by company-specific news and results.

However on the whole you have to be aware of the wider market when investing in mid and large-cap stocks. The fact is that you could invest in the strongest, most profitable company that is growing both it's earnings and it's dividend payouts every single year. However if the wider stock market is trading at very high levels when you buy the shares, you may find that the share price will be dragged down quite significantly (despite the strong fundamentals) if the wider stock market index suddenly reverses to the downside.

You should also pay attention to the industry the company is in as well. For instance you could be invested in the strongest company in a particular sector, but if you get some negative news coming out which affects the whole industry, there is every chance that the share price of your particular company will fall along with most of the others in the sector.

So the point is that timing is everything. Ideally you should hold on to your money until the wider stock market is massively oversold. When this happens you can simply filter through various stocks to find the strongest most profitable companies, because you can be sure that their share price will also be oversold and trading at bargain levels when this happens.

Similarly if there is a particular sector you are interested in, such as mining for instance, you should wait until this sector as a whole is heavily oversold, and then invest in the strongest companies from within this sector, or those have that have been sold off the most and now represent the best value based on forward earnings projections.

Either way you can generate some significant profits if you take your time and concentrate on purchasing a stock at exactly the right time. Just remember the old mantra - buy low and sell high - and you should do just fine.

Click here to read a review of the Stock Trading Nitty Gritty course, the new training course that teaches you how to successfully trade individual stocks.

Stock Market Bubble

A combination of forces such as rapidly increasingly stock prices, market confidence that the companies have strong potential of churning future profits, individual speculation at every corner, and a widely available investment capital create an environment which inflates the stock prices and gives rise to a situation that is termed as stock market bubble.

The most common question that occurs in our minds while talking of bubbles is that what actually causes the bubbles to form and then what is it that again causes it to burst. Interestingly, it has been noted that greed and only greed causes a bubbles and then fear lets it go pop. We are all aware that stock market is predominantly ruled or controlled by greed and fear.

A bubble will form without causing much ripple due to the influence of what is known as the herding effect. When a stock market hype starts, everyone gets a wind of the hot new stock in the market and tries to buy as much as they can. We sit back and enjoy as the profits shoot up with the skyrocketing prices. We then get more and more greedy and wait and watch but forget to sell.

Even the stock gurus and analysts who dominate the media add on to the hype and trendily pitch their latest stock picks. They show the rosy side of the picture with the aid of complex research analysis, flashy charts and attractive graphs. But what they do not do is remind the people to sell off and take home the profits. It thus takes time for the news of selling to reach the grapevine.

By that time however, the big-time investors or as called the smart money segment will have sold the shares and have cashed in some of those unrealized paper-only profits. The peak is thus reached as everybody is in and now the speedy downturn begins as the panic selling starts and stock prices tumble. This is exactly when it is said that the stock market bubble has popped.

The small and big everyday buy and hold investors get frustrated and shun away from the stock market. They walk away from the stock market with a determination to wait till the market psychology has regained its composure or never to return at all. But the illusions of euphoria, the pleasures of taking home high returns are too seductive for them to ignore the stock market for long. They thus come back and with a similar hope as in the time of the formation of the previous bubble and repeat the mistake of investing when the market is once again moving up and thus contributes to the next bubble.

During the times of bubbles, you ought to keep higher cash reserves than you hold normally. In order to reap profit out of a bubble situation you need to be careful and smart. You should invest only in those shares that aren't overvalued. It is easy to tell when you are in a bubble situation but difficult to time the burst. Bubbles may take a long time to burst and in case you are holding too long the continuous inflation may result in severe losses. Bubble investing is certainly different from bull market investing. Play safe and put only a fraction of your money in bubble play.

There are several examples of big time stock market bubbles that continue to intrigue the economists world over. To highlight some exceptional bubbles we should site the examples such as the tech or dot com bubble that peaked in 2000, the oil bubble that peaked in July 2008 when the oil prices had shot up to $147 per barrel and then the housing bubble that popped in 2007-2008.

However, instead of playing too cautiously or being too much wary about these bubbles one should just take some unprecedented and calculated risks and try and gain something out of the bubble situation.

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Retirement Income and Inflation Protection Strategy

Master limited partnerships (MLPs) are ongoing businesses which pay out most of the cash flow to investors. Master limited partnerships are like bonds in that they pay out regular cash to investors. However, they are unlike bonds in that the payout to investors has historically risen with inflation and through increasing profits. Master limited partnerships are also like stocks in that they are equities and trade on the New York Stock Exchange or NASDAQ. Unlike typical companies, the income of the MLP is not taxed at the corporate level. All the money that would have been taxed is passed along to the investors. The effect is that there is substantially more cash available to investors.

Investors seeking to build a MLP portfolio should consider the following:

• The balance sheet and income statements are reviewed for strength.
• Projections for distribution increases over the next three to five years are ascertained.
• Examine the ratio of cash flow paid out to investors with the amount that has been available to pay out.
• Divide the MLPs into three risk profiles which are as follows: Rock Solid, Secure and Other.
• Examine the percentage of the cash payment to investors that is tax deferred.
• Review research from a variety of companies and industry sources.

Unlike bonds, MLPs have a history of raising distributions at a faster rate than inflation. For example - Buckeye Pipeline, headquartered in Radnor PA, paid out $1.20 in 1991. Today, Buckeye pays out $3.71 per year, a 209 percent increase in nineteen years.

When people as me about the risks of MLPs compared to bonds, I ask them if they would be happy to be assured they would get their money back in a twenty year U.S. Treasury bond. If we look back over the last nineteen years, would you have been happy getting your money back from a triple A rated bond? A first class stamp was $.25 at the beginning of 1991.

If you invested $10,000 into a twenty year U.S. Treasury bond you would have received approximately $800 per year for twenty years. In January of 1991 you could have bought 3,200 first class stamps per year. Today you could only buy 1818 stamps per year. If you had invested the same $10,000 in Buckeye Pipeline, you would have received approximately $1000 per year and bought 4000 stamps. Today you could purchase 7026 stamps per year with the cash flow generated.

So, with Buckeye you could purchase 7026 stamps vs. 1818 stamps per year from the U.S. Treasury bond. The original investment was the same. When understanding risk, it is important to rank the risk. If you consider inflation as a risk over the next fifteen years, you need to own something that can raise prices and pay you an increasing return. Of course there is no guarantee that the future return from a portfolio of MLPs will grow at any particular rate. Just as there is no way to guarantee just how fast the purchasing power of the U.S. dollar will drop over the next fifteen years. I am willing to bet that you will buy fewer postage stamps in 2025 than you can today with the income you receive from U.S. Treasury bonds.

©DeWitt Capital Management

David T. DeWitt, CFP specializes in Creating Income for Life, Growth Stocks and IRAs. For our latest report, visit our website at http://www.incomingchecks.com

Day Trading Techniques - How to Exploit the Open to Make Money

Quite often the open is unusually high or low in relationship to a normal trading range a particular day, so called gaps. One reason might be that the market is overreacted on special news.

There is an old adage saying that "the market abhors a vacuum", meaning that most gaps (not all) eventually will be filled. In this regards, many traders exploit these gaps in the open to make a quick profit in a short amount of time.

Here's how you can do it if you have gaps on the upside:

If the stock opens unusually high it is telling you that the buyers are so motivated and they are prepared to pay more for the stock that day than they did throughout yesterday's trading range.

In this case you'll enter the market at a point close to the lower part of the gap and place stop-loss a safe distance under your entry position.

Here's how you can do it if you have gaps on the downside:

If the stock is open unusually low, it is telling you that the sellers are so fearful and they are willing to liquidate at prices well below yesterday's trading range.

In this case you'll enter the market at a point close to the start of the gap and place stop-loss a safe distance over your entry position.

Such positioning as pointed above is often low risk because you soon find out whether you are right or not. If you are wrong, the market will tell you by moving quickly beyond the gap areas. So, exploit the gaps in the open can often be a great way to make money day trading.

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Day Trading, Buying and Selling Strategies

The term 'day trading' is used to define the act of buying and then selling a stock in the same day. A day trader tries to make a profit by taking advantage of small price changes in the market through leveraging a large amount of capital. There are a few common day trading strategies, and these have been listed below:

There are certain stocks that are great for day trading systems, and a trader may choose them depending on their price and availability. A trader will look for two qualities when daily trading a stock and those are its volatility and its liquidity. The volatility of a stock is its estimated price range for that day; this is the price range in which the trader will then operate. The more volatility a stock has the great the profit may be, and the greater the loss may be. The Liquidity is what allows you to exit and enter the stock at a quality price.

One example day trader strategy favorite is Sun Microsystems. The reason why many day traders buy this stock is because it is very cheap to purchase and very liquid and volatile. Other stocks like this are very convenient for day traders.

One of the most popular trading strategies is called Scalping. This practice sells the stock immediate after profit can be made from selling it. This type of trading tends to move very fast, with the traders watching the moment the stock becomes profitable so they can sell it.

Daily Pivots is a strategy that allows profits from the volatility of the stock. This is accomplished by buying stocks during the low time of the day and when the high time of the day comes, the stocks are then sold. When traders short stocks after they have had a rapid upward move, the process is called Fading. This strategy uses the assumption that the stocks have been over bought, and earlier buyers are already making profits from and selling they're stocks. In addition, they also try to scare out any existing or potential share buyers. This strategy is very risk, but if all goes well it can generate a huge profit.

The Momentum strategy utilizes strong trend moves or trading on news releases. The day trader will buy when there has been news releases and then continue on with they're trend until there are signs of reversal.

Generally, daily trading requires the same tools that are used when trading normally. Buying shares is quite the same as normal trading, but the exits are very different. Most of the time, you will want to exit when interest of the stock has decreased. With day trading, investors are more vulnerable to quick price raises and drops, much more so than normal trading. Trading can be a very difficult thing to master, and there are many who try it and fail. But if you create one or more good day trading strategies, with practice and persistence you can stand to make a great amount of profit.

The author has spent a lot of time learning about stocks for cheap and how to find value stocks. Read more about stock trading investments at John Espinosa's website.

This article shows you one of the many techniques employed by professional traders when executing their trading strategies. There are many trading methods, systems, techniques and strategies used by professional traders -- from basic moving average-based methods to high-speed, high-frequency quantitative trading strategies. Trading is trading. Whether the instrument is futures, Forex, indices, commodities, interest rates or individual stocks that make up the stock market; there are common elements to all of them. One common element is how professional traders trade these separate instruments. Because of this it is possible to identify the techniques professional traders employ to boost your own success in trading. The most significant goal that every trader is continually aiming for is reduced risk and increased reward on every trade. This leads to the following... Professional Traders Trade COUNTER-TREND This may seemingly go against what you already know about trading -- that you "must" trade with-the-trend to have any chance of success. Now, trading just plain counter-trend would kill any traders' account in no time -- professional trader or not. This is known as picking-tops and picking-bottoms (link to another article perhaps). Professional traders will generally have a trading strategy, method or system that underlies the actual taking of trades -- they are not just rolling a dice or trading when they feel like it. There is structure. There are essentially two types of market scenario traders must deal with: #1 - Ranging #2 - Trending Professional traders treat #1 -- ranging markets -- in various ways. Some will aim to only trade ranging markets, some will aim to stay away from ranging markets and the rest will try to adapt to what the market is throwing at them. Figuring out when a market is likely to range, and likely to continue ranging, is larger in scope than is possible to talk about here. But simply put, if the market is ranging, and you're trading counter-trend, it is in fact very easy to make money. The focus of this article is #2 -- trending markets -- and the-how-and-the-why professional traders trade counter-trend when a market is trending. Going back to what is the common goal among traders -- reduced-risk and increased-reward on every trade -- this is the modus operandi, or underlying goal in-mind while trading. Markets don't trend in a straight line. They flow. They move, they come back a bit then they move again. Even when the trend is identified it is still about getting the risk down and the reward up. Going back to the original premise of, 'Professional traders trade counter-trend'. The risk is generally not worth it unless the trader gets a bargain price. In other words, the potential risk must be small and the potential gain must be large. If the market is in an uptrend, the trader will not try to fight it by selling it. He will trade, what can be regarded as counter-trend, by buying when the price goes down -- anticipating that the down-move is temporary before the trend resumes. The same goes for the market in a downtrend. He will trade this in a counter-trend manner by selling when the market makes a rise - anticipating the down-move to continue. This may sound very simple -- and it is. But there is something more to be read into it. So the professionals are essentially just buying 'dips' and selling 'rallies' -- that's old ancient trading "advice". Here Is The Secret... The professionals will never be caught buying-the-high or selling-the-low. The amateur trader is seduced by seeing charts where the market makes a new high, keeps going and never looks back; this looks like a no-risk trade. And it was -- on THAT trade. What the amateur misses is the many times a new high was made and the market came right back. The professional trader is reluctant to "pay-up". So he misses the one "no-risk" trade where the market makes a new-high and keeps going. So what? He never missed all the low-risk bargains each time the market pulled back. This article was not about a strategy in the typical sense. But to become a professional trader, you must start thinking like a professional trader. Most professional traders do not have "fancy", "secret" systems. They see the market for what it really is. Yes, they know things that amateurs do not know. Yes, they do things that amateurs don't do. And yes, these things can be learned. James Macdonald REAL Market Trading Learn how to trade at a professional level by going to http://realmarkettrading.com/REAL-Trading-Course.html

The most important rule concerning day trading of stocks in the United States is called the Pattern Day Trader (PDT) rule. Approved by the SEC, this rule states that you can only perform three day trades within a rolling five-business-day period if you have less than $25,000 in a cash or margin account. However, if you have more than $25,000 in a margin account, there is no legal limit on the number of day trades you may make.

Definition of Day Trading
A day trade is the buying and selling (or shorting and covering) of the same security on the same day.

Penalty for Violating the Rule
You will be flagged as a Pattern Day Trader by the brokerage for that account. Your account will be frozen (no new positions can be added) for 90 days or until you deposit enough cash to get your account value above the $25,000 minimum level, whichever comes sooner. Some brokerages will warn you ahead of time when you are about to be flagged as a PDT, while others will not, so be careful if you trade a lot!

If you violated this rule accidentally and you have no intentions of being a day trader, you have the option of informing your brokerage of the situation and they have the ability to remove the PDT flag from your account.

Why Do They Have This Rule?
The goal of this rule is to protect beginners and those with little cash from participating in risky trading activities that could lead to significant losses in a small amount of time.

Example 1: Safe from PDT Rule
1. Monday: Buy and Sell MSFT
2. Tuesday: Buy and Sell GOOG
3. Wednesday: Buy and Sell F
4. Next Monday: Buy and Sell GM
Result: 3 trades in a 5-day period

Example 2: Violation of PDT Rule
1. Thursday: Buy and Sell MSFT
2. Friday: Buy and Sell GOOG
3. Monday: Buy and Sell F
4. Tuesday: Buy and Sell GM
Result: 4 trades in a 5-day period

Three Days for Settlement
There are several other federal regulations that affect day trading, and the settlement period is one of them. Whenever you buy or sell a position, it takes up to three days for the trade to "settle." This is similar to a check taking a few days to clear at your bank. In the first three days after a sale, your brokerage may or may not allow you to trade using the money from that sale, since it has not settled yet. This restriction only applies to cash accounts though. The way to get around this problem is to not spend all of your money on one trade. This will make sure you always have some settled cash to trade with. If you have a margin account, your brokerage will lend you the money during the settlement period so that you don't have to wait before you trade again.

Nicholas Swezey is the creator of the free stock market game on his site, http://www.HowTheMarketWorks.com.

Trading Strategies of the Professionals

This article shows you one of the many techniques employed by professional traders when executing their trading strategies.

There are many trading methods, systems, techniques and strategies used by professional traders -- from basic moving average-based methods to high-speed, high-frequency quantitative trading strategies.

Trading is trading. Whether the instrument is futures, Forex, indices, commodities, interest rates or individual stocks that make up the stock market; there are common elements to all of them. One common element is how professional traders trade these separate instruments.

Because of this it is possible to identify the techniques professional traders employ to boost your own success in trading.

The most significant goal that every trader is continually aiming for is reduced risk and increased reward on every trade.

This leads to the following...

Professional Traders Trade COUNTER-TREND

This may seemingly go against what you already know about trading -- that you "must" trade with-the-trend to have any chance of success.

Now, trading just plain counter-trend would kill any traders' account in no time -- professional trader or not. This is known as picking-tops and picking-bottoms (link to another article perhaps).

Professional traders will generally have a trading strategy, method or system that underlies the actual taking of trades -- they are not just rolling a dice or trading when they feel like it. There is structure.

There are essentially two types of market scenario traders must deal with:

#1 - Ranging

#2 - Trending

Professional traders treat #1 -- ranging markets -- in various ways. Some will aim to only trade ranging markets, some will aim to stay away from ranging markets and the rest will try to adapt to what the market is throwing at them.

Figuring out when a market is likely to range, and likely to continue ranging, is larger in scope than is possible to talk about here. But simply put, if the market is ranging, and you're trading counter-trend, it is in fact very easy to make money.

The focus of this article is #2 -- trending markets -- and the-how-and-the-why professional traders trade counter-trend when a market is trending.

Going back to what is the common goal among traders -- reduced-risk and increased-reward on every trade -- this is the modus operandi, or underlying goal in-mind while trading.

Markets don't trend in a straight line. They flow. They move, they come back a bit then they move again. Even when the trend is identified it is still about getting the risk down and the reward up.

Going back to the original premise of, 'Professional traders trade counter-trend'. The risk is generally not worth it unless the trader gets a bargain price. In other words, the potential risk must be small and the potential gain must be large.

If the market is in an uptrend, the trader will not try to fight it by selling it. He will trade, what can be regarded as counter-trend, by buying when the price goes down -- anticipating that the down-move is temporary before the trend resumes.

The same goes for the market in a downtrend. He will trade this in a counter-trend manner by selling when the market makes a rise - anticipating the down-move to continue.

This may sound very simple -- and it is. But there is something more to be read into it. So the professionals are essentially just buying 'dips' and selling 'rallies' -- that's old ancient trading "advice".

Here Is The Secret...

The professionals will never be caught buying-the-high or selling-the-low.

The amateur trader is seduced by seeing charts where the market makes a new high, keeps going and never looks back; this looks like a no-risk trade. And it was -- on THAT trade. What the amateur misses is the many times a new high was made and the market came right back.

The professional trader is reluctant to "pay-up". So he misses the one "no-risk" trade where the market makes a new-high and keeps going. So what? He never missed all the low-risk bargains each time the market pulled back.

This article was not about a strategy in the typical sense. But to become a professional trader, you must start thinking like a professional trader. Most professional traders do not have "fancy", "secret" systems. They see the market for what it really is.

Yes, they know things that amateurs do not know.

Yes, they do things that amateurs don't do.

And yes, these things can be learned.

James Macdonald
REAL Market Trading

Learn how to trade at a professional level by going to http://realmarkettrading.com/REAL-Trading-Course.html

Forex Trading Software - How it Can Significantly Boost Your Earning Potential

The most successful Forex traders today are generally using Forex trading software when doing trades at the foreign currency market. This is due to the fact that most of these robots are able to generate more reliable and credible analysis that can significantly boost the earning potentials of several investors in foreign currency trade.

Most Forex trading software is generally programmed to read complex algorithms and data that allow them to generate excellent reports and analysis based on market trends over the years; as well as on other factors that affect the performances of each currency. It can significantly save you a lot of time and efforts in digging through heaping piles of relevant information and come up with credible analysis.

Another positive side of using these Forex robots is that they are devoid of emotional influences and personal preferences; it simply generates reports based on facts and trends, and possible outcome. However, on the negative side of using the program, you cannot purely on it to do the trade for you. Your expertise and skills, as well as your Forex trading strategies, are still required for complete success in this venture.

Bear in mind that the Forex trading software is an excellent tool for you to improve your success rate; and boosts your earnings in just little time compared to investors doing the trade without using one of these products to aid them. Hence, having one of these robots to support you in your investments in foreign currency market gives you significant edge over other traders who are not using the product.

Therefore, if you are harbouring some thoughts on investing some of your extra money in foreign currency market, make sure to get Forex trading software like the FAP turbo robot to support you in your venture if you want to have some gains from your investments.

Get more advice on how to get more gains in foreign currency trade at Foreign Currency Trading and start generous income from this business.

Penny Stock Investing Vs Trading

When most people think of getting rich with Penny Stocks, they are actually thinking of investing in Penny Stocks, NOT trading them. They are actually very different.

When you invest you are generally investing for a reason, you may like the companies' fundamentals, you may like the technology, the management, there could be a multitude of reasons which you want to invest in the company.

When you are looking to trade, you have an idea of what you are going for. You can make a certain percent on the move, you generally set a stop and a target. You have a defined time period, whether it is 5 minutes, the end of the day, a month, etc. There are many different types of trading that one can do, fundamental, swing, position, pairs, etc.

When trading penny stocks you generally look at it a bit differently. You will not ask yourself, "how will this company do in 10 years?", instead you will most likely say something like "this company is breaking out, what's going on?", you then look up the news and find out whether it's something which you would like to get into or not. You make your move, or you get stopped out, and then you continue. You do not hold it hoping that it turns into the next Microsoft, which it may very well do.

Penny Stocks can work well both as an investor, or as a trader. One is certainly not better than the other, investing is longer term, without a finite life, your risk is usually higher, but you will be able to make it big. When you trade, you will make a large percentage much faster, but you will usually never be able to catch the stock that most people only dream of, which is actually fine for me. I do not need 100000% my return, a much lower percentage will make me a very happy man.

Milton Matthews is a trader who spent his free time writing articles for http://pennystockfinds.com on his free time. For more information on this, please check out http://pennystockfinds.com/penny-stock-investing.php

Day Trading Penny Stocks

So you want to day trade? Do you know what day trading is? Do you know what penny stocks are?

If after knowing what all of those are, you still want to do it, you must know that you are taking some serious risk. The rewards are great, the rush is amazing, but you have to be prepared. You are either stupid or confident, hopefully confident in yourself. Confident that you know what you have to do, willing to be patient and wait.

You cannot day trade any penny stock, you cannot day trade the same penny stock everyday or else you must be prepared to get killed. There are certain days when a stock makes a move which you must be willing to trade it that day. If you catch it early enough, you can buy it and go with the momentum on the upside.

Do not just buy it, sell it, buy it, sell it, you'll get chopped up and there will be nothing left. You have to be very patient, careful, pick your entries and exits. This is much different than if you were going to day trade a regular stock, you can trade it a multitude of ways, but you cannot really scalp penny stocks. You have to hold it for more of a move. Every time you get in, you must be willing to lose money.

When you go day trading penny stocks, it is day trading, but it's not the same as any other type of stock. There is a special way you have to do it, there is a special method, it is a unique beast. You may say, okay, I am willing to lose 5 percent to make 30 percent. Something like that is more understandable, you can have a plan for every entry. Day Trading Penny stocks are very risky, but the percentage rewards are huge. You have to find a method which you feel is believable.

Lastly, don't think you will be able to day trade it every day, every day you day trade is different than the next. Tomorrow won't be the same as today, and neither will the day after. What this means is, not just the same stock, but penny stocks as a whole there are many days when absolutely NOTHING happens in the market. You have nothing to do, so you must sit on your hands and be patient, wait. The turtle wins the race.

Milton Matthews is a trader who spent his free time writing a few articles for http://pennystockfinds.com/ hoping that people will not make some of the same mistakes he has made. For some information on day trading penny stocks, please see his website http://pennystockfinds.com/day-trading-penny-stocks.php.

Indian Stock Exchanges - Basics For Beginners

In 18th century, East India company established Stock exchange in India. In 1860, exchanges had 60 brokers and it was going very well, in 1874 with the rapidly developing share trading business, brokers used to gather at a street (now well-known as "Dalal Street") for transacting businesses. In 1946 India had only seven exchanges and in 1995 constricted to 22 exchanges.

Stock Exchanges are organized marketplaces, either corporation or mutual organization, where members of the organization gather to trade company stocks and other securities. Indian stock market have 23 exchanges, in which two stock exchanges are most powerful, they are BSE (Bombay Stock Exchange) and NSE (National Stock Exchange).

BSE, Bombay stock exchange established in 1875, and have listed 4700 companies. BSE is the oldest exchange in all over Asia, other name of BSE is BSE-30. BSE index is managed by Top 30 companies and most of Indian investors and foreign investors are investing their money in BSE. All the activities are performing by BSE under the SEBI rules and regulation. The values of all BSE Indices are updated on real time basis during market hours and displayed through the BOLT system, BSE website and news wire agencies and all BSE Indices are reviewed by the BSE Index Committee. The timimg of trading in BSE is from 9 am to 3:30 pm and we can trade only Monday to Friday.

NSE, National Stock Exchange established in 1992 and it have 1587 numbers of listing. NSE consists as main indexes like S&P CNX NIFTY, CNX NIFTY JUNIOR, S&P CNX 500. It is the largest exchange in India in terms of daily trades and turnover and expected biggest exchanges in India in terms of market capitalization. NSE is set of leading financial institution, insurances companies, banks and other financial organizations but, all rules and regulation followed are handled by NSE committee. NSE is the third largest Stock Exchange in the world in terms of the number of equities and trades, It's the second fastest growing stock in the world with a recorded growth of 16.6%. NSE consist five major market these are Future & Option market, Equity, Retail & Debt, Wholesale Debt, Currency Future market. The timimg of trading in NSE is from 9 am to 3:30 pm and we can trade only monday to friday

Apart from that some other exchanges are also existing in Indian stock market has known as regional exchanges named as Madras, Delhi, Jaipur etc. In India there are some other exchanges also, which are totally different with these stock exchanges known as MCX exchange, NCDEX exchange.

If anyone wants to invest or trade in Indian stock market, then he must have a demat account in relative bank, after having a demat account anyone can trade in stock market. You can trade or invest in stock market under the rules & regulation declared by SEBI. You can trade with any of the broking firms which are listed in exchanges and get free stock tips from different advisory firms running in the market.

PREM SHARMA
E Marketing Executive
Capitalvia Global Research Limited
You can make a call at 0731-6680000 or Login on http://www.capitalvia.com.

The Many Facets of the Indian Stock Market

The concept of trading in the Indian stocks market has been over a century-old phenomenon. It is true that initially for several years, there were no online trading; hence, the number of investors was limited. Investors completely relied on stock brokers for all their investing decisions, besides tickers and news updating them about the latest conditions of the market.

But with the advent of Internet technology, things have altogether changed. The stock market in India witnessed a dramatic growth with the number of investors increasing in huge numbers. It is the convenience of online trading, facilitating investors to trade from the comfort of their space anytime anywhere. Whether it is trading in the NSE market or BSE market, you should be equipped with the nuances of trading.

To enter the stocks market, you need to have a trading account. This is called a demat account, equivalent to a bank account where you will have to deposit enough funds for trading. Whatever transactions are made for buying, selling including adding of profits in the stock market are recorded in detail; the investor can view the same as required.

There are several trading options of BSE stocks. If you want to make some quick money, you can opt for day trading and invest in accordance with the rising and falling NSE market and BSE market. Register yourself at an online trading platform to get day trading recommendations from market experts. Applying your own judgments as well as considering the recommendations, you can take wise decisions and gain a lot from your day trading. Besides getting tips and recommendations at an online platform, you also can take a glimpse of what is really happening in the stocks market via stock news, gainers, losers, and lot more information. It is only a blend of definite goals and pre-determined strategies following which you will be able to make a mark in the NSE or BSE market.

To be at the winning edge in case of day trading, the exact entry price point or exit price level of BSE stocks should be identified on time. This will help you earn profits on a daily basis no matter whether the market is rising or falling. To avoid losses, you should be able to manage your risks. Managing risks is not that easy; you can follow risk management techniques for the same. Other trading options include short term and long term investment; you cannot expect quick gains in the latter choice and you will have to wait with patience. In both the cases investors buy BSE stocks or NSE stocks or other stocks at low price and sell them at high price at an opportune time.

As aforementioned, given the many investment options, you can choose any or all; do consider the real time price action of all the stocks you buy. Most investors are driven by the wrong notion that falling markets mean losses, but it is not so. Many people earn by leaps and bounds at this stage too.

Nirmal Kumar is author of market analyst and is writing reviews articles on stocks and shares, stock investment, Online Share Trading, online trading, shares trading, BSE Stocks, online share trading platform.

How to Start Investing in the Indian Stock Market

How should I start investing in Share Market? This is the question which comes in the mind of those who are not familiar with stock market and who are not directly related or deal with the field of finance. But believe me investing in stock market is not that tough, like any other skill it can be learned with gaining enough knowledge about companies and doing some analysis.

For beginners I recommend to start with virtual 'demat account' and start trading there to gain some knowledge about trading and in which sector you should invest. You can sign up for virtual trading accounts at nseindia.com and moneycontrol.com. When you are confident enough of yourself then you can open demat account with any of the brokers or in the bank and start investing with small amount first and under someones' guidance who has some experience in investing. That someone could be your friend, colleague or family member.

Recommended Stocks to Buy

The next question which comes in the mind of beginners is 'Recommended Stocks to Buy'. There are various sectors in Stock Market in which you can start investing. Some of them are Oil, Banks, Telecommunication, Real Estate, Construction, Finance, Refineries, Steel, Broking firms, Food and beverages, Metals, Jewellery, Consumer Goods etc. To decide upon the sector to invest in you must see the fundamentals of the company, turnover, volumes traded, balance sheet and so on.

One more deciding factor is term of investment; you can either invest for short term or long term. Short term investment are those in which investor buy shares and keep in his/her portfolio for 3-6 months and long term investments are those in which investor buy share and keep those in his/her portfolio for more than 6 months. If you want to invest for short term then you should choose critical moving sectors or stocks and you should not follow any third party recommendation blindly. If you are going for long term investment then you should analyze the pure fundamentals of the company, the dividend amount it pays to the share holders, the capital and the percentage of share ratio between the company and the public.

Some popular Stock Exchanges and Share Trading brokerage Firms

Share trading is done electronically through stock exchanges and brokerage houses. Two most popular stock exchanges in India are Bombay Stock exchange (BSE) and National Stock Exchange (NSE). Multi Commodity Exchange (MCX) and National Commodity and Derivatives Exchange (NCDEX) are exchanges for bullion and agri market investments respectively.

Some of the well known brokerage houses in India are Angel broking, ICIC Direct, Reliance money, Sharekhan, HDFC Securities, India Infoline, Mangal Traders etc.

Thus to Start investing in stock market you should keep these things in mind:

Get educated by reading articles about stocks and commodities, watch financial news on television, visit financial websites etc.
Develop investment strategy and financial goal.
Read annual and quarterly reports of companies and do some fundamental study.
Invest in what you know i.e., invest in those companies with which you are familiar and in which you have confidence.
Diversify your investment and avoid putting all your money in one or two stocks.
Do not rely on third party stock tips unless and until it is given by a certified technical analyst.
Aditya Todawal
e-Marketing Executive
CapitalVia Global Research Ltd.
http://www.capitalvia.com/

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