Monday, 30 September 2013

India decides to Build Nehru Port Highway

To improve trade and growing traffic volume Indian Federal Government has finally decided to build a new 27-mile expressway connecting the Port of Jawaharlal Nehru (Nhava Sheva) with the interstate highway system. The road project requires an investment of about Rs. 1,944 corer (about $314 million).

This highway network would serve variety of purposes such as reduce the time and cost of travel for traffic, particularly heavy traffic, going towards JN Port and would connect the port, including the proposed Navi Mumbai International Airport in Maharashtra.


Nehru, India’s largest container handler, aims to double its throughput capacity from the current 4.17 million 20-foot-equivalent units to nearly 9 million TEUs with a fourth container terminal facility, for which the first stage of bidding is under way.

US, Japan Organic Food Trade Agreement


Recently a trade agreement between U.S and Japan was streamlined. The agreement announced that organic products licensed in Japan or the U.S. may be sold as organic in either country, starting Jan. 1, 2014. Before the agreement was certified, organic farmers in both countries wanting to sell products   in either country had to obtain separate certifications to meet each country’s organic standards, typically requiring two sets of fees, inspections and paperwork. By this agreement US farmers can easily access Asia’s largest organic market while in return enhancing the opportunities for trade in Asia. Both the countries have carried out on-site inspections to make sure that their programs’ regulations, quality control measures, certification requirements and labelling practices were compatible. The terms of partnership have also been verified and met.


Trade strengthens the market and allows countries to simplify import/export between them.

Wednesday, 25 September 2013

Factors affecting Market Trends

Markets move bidirectional (up or down).  May it be stock, indices, futures, individual stocks, currencies, etc. markets trend to move down quicker than they rise within all time frames (fifteen minutes, hourly, daily, etc). Yet it doesn't matter to a professional trader in which direction the current market moves because his only intention is to extract profit by trading in either direction. But how does the trader know which shares hit big and what to sell?
There is no magic or predictions that can accurately guess the rising and falling markets. Many issues affect the rises and falls. This tendency can be best understood by studying market fluctuation trends. Many­ factors affect prices in the stock market, including inflation, interest rates, energy prices, oil prices and international issues, such as war, crime, fraud and political unrest. This article discusses each factor separately.

Inflation: Inflation is the rise in prices across the board. Over a certain period inflation is good, because consumers are spending more on products. However, if inflation persists for long, consumers pull back and avoid spending. When a consumer spends less investor sell their shares in the companies.   As the demand for the stock decreases, the price of the stock decreases. When this happens to many companies in the stock market, the stock market experiences a downward shift.

Interests Rates: Inflation is controlled by increasing interest rates. The Federal Reserve System increases the interest rates which the banks pay on loan that they from Federal Reserve. In return banks raise their own interests on the borrowers. When businesses don't borrow money to develop that new widget, they tend to grow at a slower rate. When consumers don't buy things and businesses don't grow, companies' profits decrease, causing a stock price decrease. Quite the opposite happens for when Federal Reserve cuts down the interest rates.

Earnings:  When a company reports lower profits, investors lose confidence in the company and sell their stock, which decreases the value of the stock.

Energy Prices: Energy is a daily necessity. Only major changes in energy costs have a significant effect on the stock market.

Oil Prices:  The stock market tends to react negatively to high oil prices.

International and Domestic Issues: War tends to affect the stock market negatively. The same goes for crime, fraud, and domestic or political unrest.

All these factors cause changes in the market. Market tends to rise or fall according to these factors.

Tuesday, 24 September 2013

Avoiding Common Day Trading Mistakes

Trading is risky and challenging esp. for day traders. It’s difficult to make money by buying stocks and selling them again the same day.  Not since the internet became a common resource of information, the tools of day trading were not available to an average investor. With easy and all time available internet connections  real time stock results, analysis tools and access to instant trades have become easy access and everybody can day trade. But here are some hazards to avoid.

Learn to roll the dice:  The first step to day trade is to educate oneself about it. Take up classes with a qualified trading consultant/coach. The purpose is to put an end to losing money due to lack of sound knowledge and learn to win and earn profit.

In day trading you hold nothing. Day trading is NOT about holding a stock or any other financial instrument for more than a few minutes, and certainly not beyond market close.

Understand the stock markets. Learn to use stock indexes to evaluate overall performance of the market. Without this you cannot day trade.
    
Losing money at the stocks can make u cranky, sad and depressed. Manage your mood variations in such situations else you will end up making costly mistakes. Wining in this business stock is like wining in sports/business
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 Have sufficient risk Capital. Don’t pay bills or invest your trading capital. Keep sufficient amount for endeavoring in day trading. Save money in your account the day trading occurs and use it for such purpose only
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Be prepared to spend money on tools and stuff such as efficient computer equipment and software and information service resources. For on-line trading, you need a high-speed Internet connection to minimize latency. You will also require specialized software and a variety of different analysis tools, not to mention your real-time research tools (including daily real time access to stock quotes and ticker feeds).
Always create a plan. Success lies in acute planning and hard work. Without a plan, both new and seasoned traders can easily lose thousands a day.

Be a keen observer. Keep track of the market. If you want to be successful at day trading, you need to keep an eye on the markets. Conduct pre and post-market.

Save your profits. Whenever possible, leave your profits in your account and do not spend them. Run your day trading like a business.