3I INFOTECH long at cmp with a sl of 168 for a T1=176 and T2=185
for trading if investing can keep sl below 160.
cheers
rish
Sunday, September 10, 2006
3I INFOTECH
3I INFOTECH long at cmp with a sl of 168 for a T1=176 and T2=185
for trading if investing can keep sl below 160.
cheers
rish
Know When You are Going to Sell a Stock Before You Buy It
When investing in stocks, the agony of defeat is much sharper than the thrill of victory.
Several studies have concluded that investors remember the sour feelings of losing money in an investment more acutely than making the same amount of money in a winning investment.
A few losing investments and an investor can become so nervous that good decisions are all but impossible. For some investors, the mere thought of losing money is eno
ugh to make them nervous and emotional about investing.
Emotions can play havoc with your investing because they trump logic unless you have a plan that you prepare in advance and commit to stick with regardless of what else is happening.
Bad Investing Decisions
Emotional investors usually make all the wrong decisions for all the wrong reasons.
It’s important to note that if you fall into this category (and many investors do), it doesn’t mean you can’t be a successful investor. It simply means you have to acknowledge your concerns and allow for them in your investing process.
The safest way to do this is to plan your sell strategy before you buy a stock. Decide a what point you can no longer support the stock and mark that as your sell point.
Consider the normal price fluctuations of the stock and how low you think the stock might fall under relatively normal market conditions.
Selling Point
Find that fundamental point and make it your sell point. This is your exit strategy and commit to writing, so that when things get rocky you can refer to it.
With a plan in hand, you can take the emotion out of the sell decision, which should help you avoid holding the stock too long or selling too quickly.
You can put several strategies into place that will help you take some of the emotion out of sell decisions. There is a delicate tension between selling too soon and holding too long.
On the down side, you can only lose 100% of your investment (the stock goes to $0), however if you sell prematurely what you potentially could lose is unlimited because there is no limit to how high a stock can rise.
Investing Strategies
If you are a “buy and hold” investor, and the stock is rising you don’t want to exit out prematurely, however you also don’t want to see a nice gain disappear if the stock reverses course and begins a sustained downward plunge.
One way to protect profits is to use trailing stops and stop loss orders. These simple trading techniques will help you cover you profits and protect against losses.
These strategies won’t “guarantee” you a profit or protect you against an absolute loss, but they will help you take some of the emotion out of the investing process, which will help you make better decisions. Better decisions means betters investments over time.
Conclusion
There is much emotion attached to money and there is no escaping that fact. You can minimize the influence emotions play on your investment decisions by planning your exit strategy even before you buy the stock.
Several studies have concluded that investors remember the sour feelings of losing money in an investment more acutely than making the same amount of money in a winning investment.
A few losing investments and an investor can become so nervous that good decisions are all but impossible. For some investors, the mere thought of losing money is eno
ugh to make them nervous and emotional about investing.Emotions can play havoc with your investing because they trump logic unless you have a plan that you prepare in advance and commit to stick with regardless of what else is happening.
Bad Investing Decisions
Emotional investors usually make all the wrong decisions for all the wrong reasons.
It’s important to note that if you fall into this category (and many investors do), it doesn’t mean you can’t be a successful investor. It simply means you have to acknowledge your concerns and allow for them in your investing process.
The safest way to do this is to plan your sell strategy before you buy a stock. Decide a what point you can no longer support the stock and mark that as your sell point.
Consider the normal price fluctuations of the stock and how low you think the stock might fall under relatively normal market conditions.
Selling Point
Find that fundamental point and make it your sell point. This is your exit strategy and commit to writing, so that when things get rocky you can refer to it.
With a plan in hand, you can take the emotion out of the sell decision, which should help you avoid holding the stock too long or selling too quickly.
You can put several strategies into place that will help you take some of the emotion out of sell decisions. There is a delicate tension between selling too soon and holding too long.
On the down side, you can only lose 100% of your investment (the stock goes to $0), however if you sell prematurely what you potentially could lose is unlimited because there is no limit to how high a stock can rise.
Investing Strategies
If you are a “buy and hold” investor, and the stock is rising you don’t want to exit out prematurely, however you also don’t want to see a nice gain disappear if the stock reverses course and begins a sustained downward plunge.
One way to protect profits is to use trailing stops and stop loss orders. These simple trading techniques will help you cover you profits and protect against losses.
These strategies won’t “guarantee” you a profit or protect you against an absolute loss, but they will help you take some of the emotion out of the investing process, which will help you make better decisions. Better decisions means betters investments over time.
Conclusion
There is much emotion attached to money and there is no escaping that fact. You can minimize the influence emotions play on your investment decisions by planning your exit strategy even before you buy the stock.
Saturday, September 09, 2006
TRADING POLL
HI
Following are few questions put forward read them and tick the appropriate option lets understand the mentality of people around and their style of trading and get benefited.
cheers.
Following are few questions put forward read them and tick the appropriate option lets understand the mentality of people around and their style of trading and get benefited.
cheers.
Friday, September 08, 2006
When is the Best Time to Sell a Stock?
When is a good time to sell a stock?
* The Stock Drops by x%
If you buy a stock as a trader, rather than an investor you may set an arbitrary floor for the stock. When the stock falls to this floor, you sell. Many traders set that floor in the 6% – 8% range, depending on the volatility of the stock.# They may not be happy about a small loss, but they make sure it doesn’t become a big loss.
# The Company Flounders
This is the investor’s signal to sell. The investor bought the company because of its fundamentals and its business plan. When something changes and the company loses its way, the investor has to re-examine whether it is the same company or not. Maybe a new CEO takes the company off in a direction that the investor (and market) believes is wrong.
# When a Stock is Over Valued
Can there
be too much of a good thing? There certainly can in the market. When stocks are pushed way past their true value, they are often set up for a fall. The strategy is to sell when they are over valued and buy them back after a market correction has knocked the price back down. This, of course presumes an accurate knowledge of the top and bottom of prices – something very few of us are particularly good at with any consistency. Selling an over-valued stock is certainly preferable to buying an over-valued stock. Just be prepared to watch it keep going up after you sell, as happens sometimes. Don’t second-guess yourself; it could have more easily gone the other way.
# Rebalancing Your Portfolio
You have decided that the best allocation for your circumstances is 60% stocks, 30% bonds and 10% cash in your portfolio. Good fortune has smiled on you and your stocks, which are now valued at 70% of your portfolio. As tempting as it might be, your best move is to rebalance your portfolio by selling off some of your stocks and bringing the percentages back into alignment. Obviously, the stock(s) you sell should meet the long-term capital gains test of one-year ownership. Beyond that, look at how your stocks break out and decide which stocks can be sold to keep the diversification intact.
Conclusion
There may be other market-driven reasons to sell that are just as valid as these are. Always consider the consequences (transaction costs, taxes, etc.) before making any decision to sell.
* The Stock Drops by x%
If you buy a stock as a trader, rather than an investor you may set an arbitrary floor for the stock. When the stock falls to this floor, you sell. Many traders set that floor in the 6% – 8% range, depending on the volatility of the stock.# They may not be happy about a small loss, but they make sure it doesn’t become a big loss.
# The Company Flounders
This is the investor’s signal to sell. The investor bought the company because of its fundamentals and its business plan. When something changes and the company loses its way, the investor has to re-examine whether it is the same company or not. Maybe a new CEO takes the company off in a direction that the investor (and market) believes is wrong.
# When a Stock is Over Valued
Can there
be too much of a good thing? There certainly can in the market. When stocks are pushed way past their true value, they are often set up for a fall. The strategy is to sell when they are over valued and buy them back after a market correction has knocked the price back down. This, of course presumes an accurate knowledge of the top and bottom of prices – something very few of us are particularly good at with any consistency. Selling an over-valued stock is certainly preferable to buying an over-valued stock. Just be prepared to watch it keep going up after you sell, as happens sometimes. Don’t second-guess yourself; it could have more easily gone the other way.# Rebalancing Your Portfolio
You have decided that the best allocation for your circumstances is 60% stocks, 30% bonds and 10% cash in your portfolio. Good fortune has smiled on you and your stocks, which are now valued at 70% of your portfolio. As tempting as it might be, your best move is to rebalance your portfolio by selling off some of your stocks and bringing the percentages back into alignment. Obviously, the stock(s) you sell should meet the long-term capital gains test of one-year ownership. Beyond that, look at how your stocks break out and decide which stocks can be sold to keep the diversification intact.
Conclusion
There may be other market-driven reasons to sell that are just as valid as these are. Always consider the consequences (transaction costs, taxes, etc.) before making any decision to sell.
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