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Herman Said:As a new trader I would like to practice trading the stocks markets - is there a game or demo account ?
We Answered:Yes, there are plenty of virtual or "fantasy" stock market games available and they will allow you to test strategies and to become comfortable with both buying and selling stocks online. They are nearly all free to sign up and most offer prizes so it's worth having a go.
Understanding how the stock market works is a bit like trying to eat an elephant - the only way to do it, and succeed, is a little piece at a time.
Remember risk and money management are the keys to success. If you lose all your trading capital you are out of the game. Most professional traders risk no more than 0.5% to 1% of their trading capital on each trade, in effect, this means you can get 100 to 200 trades wrong and still survive- just!
Agnes Said:I want to invest in blue chip stocks of emerging market countries to get better return than indian markets,?
We Answered:look for stocks that are currenty priced not more than 10 times free cash flow. you can calculate this by getting the (earnings before income and taxes + depriciation - taxes)/common shares outstanding. also, look for the ones with strong Return on Equity and high Operating Margins. look for companies where its executives (preferably the CEO, CFO, COO) have big stockholdings. do not buy a company just becasue technical analysis tells you to do so.
for more stock market terms and formulas to get those that i have mentinoed aboive, got : investopedia.com
good luck and happy investing!
Loretta Said:how to buy stocks in foreign markets before the american bell?
We Answered:Hi, yes there is a time difference between foreign markets and the US Market. You can buy US stocks in foreign markets but, that is a lot of effort. Forget about trying to get ahead of the opening, focus on good stock picking and buy on US exchanges. It is a lot simpler. Pre-market and after-markets are a crap shoot.
Perry Said:Stock Markets and Investors-if they behave rationally why isn't the stocks fairly priced?
We Answered:Rational is not the same as realistic. There is a lot of propaganda going on in financial markets that often deceives investors.
Rational behavior based on false perceptions is no different from irrational behavior in its consequences. Which means deceived investors acting rationally can end up bidding up stock prices to irrational levels. Which has happened most spectacularly during the dot com boom. But this kind of thing happens in financial markets all the time to some degree.
The problem is that stock market investors try to predict the future when they buy shares. Nobody knows the future for sure. And in these circumstances it's relatively easy for various players in the stock market and for the government to manipulate people's expectations of the future.
Such attempts at manipulation don't work every time. But it usually does work for some time, before people learn from their experience. Then some more time passes by. Some people leave the stock market or forget their experience. New people enter the stock market. And the manipulation begins to work again.
Marc Said:I trade in stocks on the Indian markets. Where can I get really good tips with about 90% accuracy ?
We Answered:Never believe in tips. Only contacts with reputed Broking house will give you the information but it is not guaranteed. Of course they study the scrip and its movements through financial analysis and than recommend the buy and sell options.
You say you trade in shares. Now what is your experience.
How profitable have you been in your transactions. Be frank and evaluate your own actions. My experience is only delivery based transactions have given profits. Share market is a forum which draws you in with the prospects of gain and takes the investor by confusion.
You should not trade on borrowed funds. That may prove too costly.
Only trade if you can afford to suffer short term losses without panic.
Hold on to your stocks even when price goes down. Any panic selling is not the game. Avoid futures, options, put, call, commodity mkts.
they have ruined many an individual.
Valuation of scrips can be had in depth on sites BSE & NSE.
Study them, observe the trends and than invest. Keep the no. of scrips to a low levels with high volumes to enable you to observe the progress. Investments in very many scrips will be a tedious follow up work. Do reconcile what is reported above and you have no regrets.