Wednesday, June 30, 2010
Trading Trick (General Market Advice)
1. Never chase a stock.
2. Buy when markets are in the grip of panic.
3. Only buy fundamentally strong stocks, which are undervalued.
4. Buy stocks grown in top line and bottom line over the past years.
5. Invest in companies with proven management.
6. Avoid loss-making companies.
7. PE Ratio and Growth in earnings per share are the key.
8. Look for the dividend paying record.
9. Invest in stocks for sure returns.
10. Stocks have been the high yielding asset class over the past.
11. Stocks are an asset class.
12. The basic property of any asset class is to grow.
13. Buy when everyone is selling and sell when everyone buys.
14. Invest a fixed amount each month.
Quarterly Results
Tata Steel Q3 net up 155% to Rs 1,191.75 cr
Canara Bank Q3 profit zooms 50 pct
Dena Bank Q3 net dips 4 pct to Rs 134 cr
Lanco Infratech Q3 net up 34 pct at Rs 106 cr
Motherson Sumi Q3 net nearly triples as sales surge
BPCL Q3 net down by more than half
Stock Terms and jargons
Active Share: An active share is the one which has a volume in trade (it has changed hands in many), these are the shares which are easy to buy or sell. which also may have some news sticked along with it.
Advance-Decline ration: It is also known as advanced decline ratio. This ratio is used to find whether market is in bullish trend or in the bearish trend, in other words whether the market is in advacing or declining. It is found by dividing the total number of advanced shares to the total number of declined shares. For instance: there are a total of 10000 stocks listed in the market of them 800 advances and 200 declines then the Advance Decline ratio would be 4 and since the ratio. Any value more than 1 would indicate a rising trend (bullish trend) and any value which is less than 1 would indicate a declining trend (bearish trend).
ADR: American Depository Receipt is a negotiable receipt issued by the US banks stating that the number of shares have been deposited with them. This can be directly traded in the stock market. This in turn eases an American investor to buy ADR than to buy an foreign stock in a foreign market. The rate of an ADR is close to the rate of the stock in the home market.
After-Tax:
Aging Schedule
AGM or Annual General Meeting
Amortization
Annual Report
Application-Money
Asset
Asset Coverage
Asset Financing
Auction Market
Auctioning of an Issue
Automated Screen Trading (AST)
Average
Averaging
Averaging In/Averaging Out.