The lessons of the fall of WALL STREET

The lessons of the fall of WALL STREET: During the fall of Wall street of 1929, several people lost their money and properties. Many corporations were declared bankrupt. Some committed suicide because they felt that their loss was monumental and irreparable. But in all this chaos and confusion, one young man remained unperturbed. He was a young Jewish immigrant who had come to America several years before. He had worked hard for years as a labourer and had every penny saved. He was excited when he heard about the crash of Wall Street. He left Charleston to New York and headed straight for Wall street. He bought stocks like a crazy man. He bought up companies and corporations that had gone bankrupt. He saw opportunity where others saw failure. He saw GOLD in the fall of Wall Street. This visionary young man became a millionaire from these same stocks that had appreciated. He later became one of America's wealthiest men.

Stock business will never collapse

Stock business will never collapse. The reasons are most companies are standing strong with a strong capital base having $18million and above. In order to address the current global economic recession going on, world leaders have been having series of meeting. In their conclusion each government should pump money into its stock market which they did and it led to a turn-around in their stock market via a rise in their economy. Therefore don't rush sale your stocks, invest more like the richest man in the world. This is the time to invest. This time you can buy stocks at their actual value or lower than the face value. You have to know the true value of stock you are buying. True value of a stock is what the company you are buying is actually worth, which is usually discovered in the recession period. However, don't buy dead stocks. Dead stocks are stocks that don't have any basis for their price appreciation, no fundamentals, no results, noprospect or any other basic thing to make the price appreciate.

How to select stocks in the Bear market like the Richest man in the World

How to select stocks in the Bear market like the Richest man in the World: Picking stocks like Warren Buffett should be a major desire of any trading investor who wants to become a guru in trading stocks and making billions from the stock market. Trading is different from investing. Use billionaires strategies if you want to be like them. Out of 483 billionaires, 42 made their billions through stock with the current richest man Warren Buffett being one of them. He has a net worth of $62billion. Trading in stocks refers to short term investment while profitable investment is long term. Picking stock successfully like him involves being a able to value stock at their actual value.

Market correction

Market correction is a process whereby stockbrokers try to correct the value of over priced stocks. The stock market responds to both fundamental news and rumours. These two factors can drive the price of stocks to an over-priced level or an under-priced state. When market is grossly overvalued, there will be problem especially for those who borrowed money to buy shares. Overvalued stocks are stocks that have reached their peak for a period; they either enter into a resting phase or in most cases begin to decline.

Importance of Central Securities Clearing System(CSCS)

Importance of Central Securities Clearing System(CSCS). Registering with CSCS will enable you have record of your shareholding with the companies you have shares with and make such units available for trading if necessary. This record of your shareholdings can be printed out for you monthly by your stockbroker. Doing this monthly will enhance your trading proficiency. You can also access your account daily if you have internet access through the CSCS website with an annual fee. CSCS keep up to date records of transactions on the stock exchange.

Functions of CSCS

Functions of CSCS: 1. Provides depository for share holders who wish to deposit their certificates for stock market transactions. These share certificates are kept in the coffers of CSCS; such certificates are dematerialized for transaction purposes. 2. CSCS processes inter-market transfers(that is, transfers of transactions from money market to capital market etc). 3. CSCS operates as an issuer of central securities and clearing house of the exchange. 4. CSCS is in charge of securities on the stock exchange that is they guide and supervise stock transactions on the floor of the market. 5. CSCS is a safe and central depository for share certificates of companies quoted on the NSE or any other stock exchange around the world. 6. Issue of central securities identification numbers to stock brokers and investors.

Stop-loss method

Stop-loss method: This method is focused on the price movement of the stocks in a particular portfolio against the purchase prices. The current market price of stock is consistently compared to the purchase price to determine the market direction of these stocks. Stop loss method works. You can use it to forestall heavy losses. An investor who purchases a stock at $100 with a stop loss of 10-20%. It therefore means that if the stock drops below the range of 80-90 automatic sale of the stock is expected to be executed. If your stop-loss is 10% you can't lose more than 10% of your stake plus your stockbroker's charges. By using this system you may sometimes sell a good stock too soon and frustratingly watch it go on up and up. That is the price you pay for operating a safety net.