Tuesday, June 19, 2012

Swing Trading ... 2

  • The basic strategy of Swing Trading is to jump into a strongly trending stock after its period of consolidation or correction is complete.
     
  • Strongly trending stocks often make a quick move after completing its correction which one can profit from.
     
  • One then sells the stock after 2 to 7 days for a 5-25% move. This process can be repeated over and over again. One can also play the short side by shorting stocks that fall through support levels.
     
  • In brief a Swing Trader's goal is to make money by capturing the quick moves that stocks make in their life span, and at the same time controlling their risk by proper money management techniques. 





Saturday, June 9, 2012

Swing Trading

What is swing Trading? To be honest, I was baffled too when I first heard the term. Swing Trading takes advantage of brief price swings in strongly trending stocks to ride the momentum in the direction of the trend. Swing trading combines the best of two worlds - the slower pace of investing and the increased potential gains of day trading. Swing traders hold stocks for days or weeks playing the general upward or downward trends.

Swing Trading is not high-speed day trading. Some people call it momentum investing, because you only hold positions that are making major moves. By rolling your money over rapidly through short term gains you can quickly build up your equity.







Saturday, June 2, 2012

Fixed Deposit Account

A fixed deposit account allows you to deposit your money for a set period of time, thereby earning you a higher rate of interest in return than a savings bank account. Any individuals and organizations with the intention of retaining their savings for a fixed period for some future use can have this account.

You can withdraw the deposit at any time before maturity without any difficulty. You can avail loans upto 85% of the principal. There are variable deposit periods ranging from 6 months to 120 months available.

The minimum deposit amount is Rs. 1,000/- and deposits can be made in multiples of Rs. 100/-.








Thursday, May 24, 2012

Stock Exchange

Stock Exchanges are an organized marketplace, either corporation or mutual organization, where members of the organization gather to trade company stocks and other securities. The members may act either as agents for their customers, or as principals for their own accounts.

Stock exchanges also facilitate for the issue and redemption of securities and other financial instruments including the payment of income and dividends. The record keeping is central but trade is linked to such physical place because modern markets are computerized. The trade on an exchange is only by members and stock broker do have a seat on the exchange.





Sunday, May 13, 2012

Investment Bank


Investment Bank is a financial intermediary that performs a variety of services. This includes underwriting, acting as an intermediary between an issuer of securities and the investing public, facilitating mergers and other corporate reorganizations, and also acting as a broker for institutional clients.
Unlike commercial banks and retail banks, investment banks do not take deposits. There are two main lines of business in investment banking. Trading securities for cash or for other securities (i.e., facilitating transactions, market-making), or the promotion of securities (i.e., underwriting, research, etc.) is the "sell side", while dealing with pension funds, mutual funds, hedge funds, and the investing public (who consume the products and services of the sell-side in order to maximize their return on investment) constitutes the "buy side". Many firms have buy and sell side components.
The role of the investment bank begins with pre-underwriting counseling and continues after the distribution of securities in the form of advice.
Investment Banker is a person representing a financial institution that is in the business of raising capital for corporations and municipalities.





Friday, March 30, 2012

Friday, September 9, 2011

Joint Life Insurance Policy


Joint life insurance policies are similar to endowment policies as they too offer maturity benefits to the policyholders along with all the other benefits by normal Life Insurance policy. Joint life policies are different than normal life insurance as they cover two lives simultaneously, thus offering a unique advantage for a married couple or for partners in a business firm. Under a joint life policy the sum assured is payable on the first death and again on the death of the survivor during the term of the policy. Vested bonuses would also be paid besides the sum assured after the death of the survivor. If one or both the lives survive to the maturity date, the sum assured as well as the vested bonuses are payable on the maturity date. The premiums payable cease on the first death or on the expiry of the selected term, whichever is earlier.

Accident benefits equivalent to the sum assured are available under Joint life insurance policies on the first death. In case both the lives are covered under Double Accident Benefit, the surviving life is covered under Double Accident Benefit until the end of the policy year, in which the first life dies under the cover of the policy.