- Swing Trading combines the best of two worlds --
the slower pace of investing and the increased
potential gains of day trading.
- Swing Trading works well for part-time traders —
especially those doing it while at work. While day
traders typically have to stay glued to their
computers for hours at a time, feverishly watching
minute-to-minute changes in quotes, swing trading
doesn't require that type of focus and dedication.
- While Day Traders gamble on stocks popping or
falling by fractions of points, Swing Traders try to
ride "swings" in the market. Swing Traders buy fewer
stocks and aim for bigger gains, they pay lower
brokerage and, theoretically, have a better chance
of earning larger gains.
- With day trading, the only person getting rich is the broker. "Swing traders go for the meat of the move while a day trader just gets scraps." Furthermore, to swing trade, you don't need sophisticated computer hook-ups or lightning quick execution services and you don't have to play extremely volatile stocks.
Wednesday, June 27, 2012
Swing Trading .. 3
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.
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/-.
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.
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
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