Bull And Bear Market Explained

May 25th, 2010

Bull and bear market is a much known phenomena in the stock market. The names bull and bear are the symbols used of two animals which act as opposite opponents. The rises or the falls happen in fraction of seconds. At one instant the record shows profit and the other minute the record shows loss. This is how the battle between the bulls and bears continues. The ups and downs at times have devastating effect upon the market. If we start analyzing the bull or bear market, they are both different in there own way. To know the market, understanding how either a bull or a bear market works is very important.

Both the words have opposite meanings like, Bull market is where prices of the stocks increase in the stock market and the sign of bull indicates confidence as it thrusts its horns up into the air. The trader is always on the profit side. This type of situation mostly happens due to boom in the economy. In this type the shares that are invested in the market are in for a rise or are expected to rise in the near future. When we technically analyze the market, the rise seen in the market is of at least 20%. The right thing to be done for the investor in the bull market is buy to buy early and sells them when it reaches the profit point.

On the other hand bear market symbolizes fall in the market or decline in the prices of the stocks invested. As this is totally opposite of bull as it shows lack of confidence and swipes its paws down. The prices of the shares continuously drop which results a downward slope in the market. This condition normally leads to rise in unemployment. The decline is mostly 20% in the downward direction. As the rise or fall can’t be predicted in this situation the trader should opt for short selling as it is a safer option.

This situation is mainly critical for buyers and sellers. A trader needs to be careful while trading in this market. They need to be systematic while planning any buying or selling of any stock. There are instances where people tend to loose money or even make profit in the similar situations. As for both the markets the ending periods are different and are caused by different reasons of the market. The investment in this market requires knowledge. A person has to know when to buy the stock and when to sell. As both the markets have influence in the market the investor needs to remember that every market has an upturn at a certain time.

Stock Market Investment

May 23rd, 2010

Every one dreams of a better future. To obtain ones dream the first and foremost thing required to be done is investments so that we remain independent. Even investments are of different kind but as the competition has been increasing even the amount of savings need to be increased. We keep looking for the different kind of investments but investments in the stock is one sure way of building wealth.

People often compile the investments in the stocks with the investments in the banks. But there is a difference, the stocks are shares which eventually means a part in the ownership of the company. Stocks of a company provide us the rights towards that company. As we keep buying shares from the company, we keep increasing hold on that particular company.

The stocks are also known as shares. These are one of the ways of increasing ones wealth on day to day basis. Stock is the part of every investment organization. In the past few years a common man has started taking interest in this kind of investment. There was a time when only rich people use to invest in the stocks but as the years are passing this has become a way to become rich. The number of people has been increasing and so is the knowledge about the investments in the stock.

But there are people who still are living with the half information. As there are lot of people who invest in this market but need the whole knowledge about the market. Normally we keep thinking we could earn money through stocks but as every coin has two sides even the stocks have certain sharp edges. There are risks involved. The stocks can undoubtedly create utmost wealth but it is not without risks. The only way to remain protected in the stock market is to be aware where we are investing our money.

There are certain basic information’s regarding the investments in the stock market.

  • Knowledge of the basics is must.
  • We need to have leverage to invest in this market.
  • Market survey and current status of companies.

The market survey brings us one step closure towards the stock investments. Through the markets we are able to judge the reputation of the company, as well as the rates of the stocks which keep changing.

Stock market investment is the best way to acquire wealth from home. A person cannot work forever, there always comes a time when a person has to sit at home, at that time the first thing would be a regular income. So investing in stock markets can be a sure way to earn money

Intraday Trade Explained

May 22nd, 2010

Intraday trading is a system where the stock trader trades in the market for a very short time during which he buys and sells the stock in one day. This process is also known as day trading. The main aim of the trader is to earn maximum profit from his trades in one day trade which is difficult in itself. In the intraday trade the trader is never worried about the ups and downs of the market neither is he concerned about the recession, he would focus for his profit for the day, and how to earn it.

When we read this process is sounds easier than it is. A trader has to maintain his balances so that he doesn’t have risk of loosing more than he has got. When he enters this trade he needs to have large amount of money to take up the day trade as this is the first rule of the market. In the normal markets we had different type of trading ways, there were funds available to buy the stocks but intraday trade is different and follows different rules.

In the intraday trade, the trader has two types of stocks referred as liquidity and volatility. In this, liquidity means that a trader can buy the stock or sell the stock making a profit at any time of the day, whereas volatility means the expectations that a trader has from its stock till the end of the day. As per the bifurcations done by the trader, it is decided what best time would it be to trade in the market. The decision of the stock that in which category does it fall, is done by technical experts in this field. The predictions are done by the way of charts or at times there are predictions done by detailed study of the past and present balance sheets of the company.

The intraday trade is followed by many to earn money on a daily basis. But there are certain points, if followed can be proved helpful; such as,

  • Keeping a record of previous day’s trade, this helps the trader to have an idea of the ups and downs happened during the previous day.
  • At times there is a sudden rise in the price this gives an idea to the trader that that particular share is currently in demand.

These are not the only points proved to be helpful, there are methods used by the trader, such as scalping which is a very popular method used. In this type, the shares are sold as soon as they purchase making a profit. There are many other methods such as purchasing the shares and then selling them again with the hope that they would reach the point where it makes profit again. As there are losses involved, Mainer times the trader opts for stop loss limit, which means there is a limit placed for the trader till the amount he can risk and the selling of the shares do not go beyond that limit.

The intraday trade is a trade which involves profits and losses. If the person is skilled in this type of trade and is aware about the market, this type of trade can be fruitful and at the same time profitable. If the idea of being the sole owner of a business excites you, the intraday trade can be proved to be a good option.