Many people will lose money in the stock market and go on a blaming streak. They blame the market for being volatile, they blame the government for raising or lowering interest rates, or they even blame their friends for giving them hot stock tips.
For the amateur trader nothing is ever their fault. Something outside of his control made him lose money on his last trade. If they buy a stock and the market crashes it isn't their fault. After all he did what he believed was the right thing to do.
The professional trader thinks a little different. Everything that goes wrong is his fault. If he places a trade and loses money he takes the blame and looks to see what HE did wrong. They should have been prepared just in case the market crashes.
Funny how that works, trading armatures never make mistakes but professionals (the ones making money in the market) make mistakes all the time. At least that is how they perceive it. The Real benefit of accepting loss as a bad decision is it leads to growth.
When you blame others you assume that it was not your fault, so you do not need to improve on anything. When you take responsibility for your losses you tend to want to fix the mistakes you have made. You want to look back and see what you did wrong so that you will not make the same mistakes in the future.
The first question someone who lost money should ask is. Did I follow my rules? If not how can I make it so I follow my rules more closely in the future? Maybe you have to become stricter when following your investment plan. If you were following your rules and you still lost money then you should look at your rules.
What is the weakness of your trading strategy? (Every strategy has one). How can you improve it, how can you make it so you don't lose money again in the future? Accepting the blame and attempting to fix the problem when something bad happens is the only way to enjoy long lasting success as a trader.
We always hear that Google has a sophisticated system to detect the invalid clicks, and result in termination of the cheaters’ account. But, how can Google do that? In this post, I summarize those ways that Google depends on to detect whether the clicks on your site are invalid or not. Google will not first ban your account immediately. Rather, they will first flag your account and Google will keep a closer eye to your account. In some occasion, they may send you a warning letter to notify your situation; but sometimes not.
1. IP Address
It is the easist and must be recognized by everyone. If those clicks on your ads are originated from the same IP Address as the one used for accessing your AdSense account, your account is flagged.
2. Click Through Rate (CTR)
Normally, Click thru Rate should not excees 10%. Otherwise, Google will flag your account. For your information, normal CTR should ranges from 0.5% - 10%.
3. Physical Location
Google has good tracing software and technology.They can trace traffics origin down to the small town. So, using different computers with different IP address does not secure anything. So, don’t try to click your ads in various internet cafes. That will kill you.
4. Cookies
Most home users do not use static IP Address for Internet connection. In most cases just disconnect and reconnect will give you a new IP Address. But don’t forget, Google has set cookies on your computer. They can trace these cookies and see whether they originate from the same computer.
5. Click Pattern 1
It is also suspicious when people click on their clicks and then run away immediately (hit-and-run). But normally, people will surf for a while inside your pages and then click on the ads they want.
6. Click Pattern 2
why this computer / IP address / person is so trigger-click-happy on this particular website but never click on the ads on other sites?
7. Click Pattern 3
And why is it that people accessing these sites direct (type-in URL or from bookmark) tend to be very active ad-clickers compared with those referred from search engine or other sites?
8.Other Google Services
Apart from Google Adsense, Google also provide a series of services to us. Don’t just think that it is safe if you do not log in your adsense account and click on your ads. What other Google services do they provide to us? Here are some: Gmail (most poeple are using it), Google Earth, Google Calendar, Google Search, Google Toolbar, Google Talk, Google Sitemap, Google Desktop, Blogger, or even Youtube (coz Google has just recently acquired it).
10. Search Engine Ranking
Your website is not indexed on any search engine, not linked by any prominent website, but get consistently high traffic? How come people can access your website and click your ads? That will make Google to smell a rat.
11. Webpage design
How about the “Please click a link below” or “donate us by clicking the ads”? These kinds of encouragement is not in line with Google’s TOS. Google can use their winning search engine, or even human eyes to check your sites from time to time.
12. Advertisers conversion rate
Ad click is one thing. But does it bring value to the advertisers? If none of the clicks on your site translate to conversion to the advertiser, you are in trouble. First the Smart-Pricing hits, then your AdSense account disabled.
The best way to invest money is based on the client's individual characteristics. The obvious goal is to make as much money as possible. The wisest investment decision depends on many factors including - amount available, time involved and risk/reward assessment.
An investor with a small amount should focus on retaining his capital. The best way to invest money is to be sensible. Start with a safer investment. Slowly build up the money over time through prudent decisions.
No investor should invest what he cannot lose. Be wise. Try to make a small gain, increasing your capital gradually. No solid building is built in a day.
When a larger amount is involved, there is more leeway for error. Higher cash amounts can withstand initial losses more readily. Concentrate on sound investments that will accrue value eventually.
Short term investments target higher returns. The wise investor does not act presumptuously. He is aware of shady salesmen who will exaggerate the opportunity to make money, suggesting that it is "guaranteed". Nothing is "guaranteed". If it sounds too good to be true, it probably is.
A real estate investment can be wise for the long term, if the price and interest rates are reasonable. Real estate is about location - gaining intrinsic value from its surrounding environment. Research the area's history. Focus on long range property values rather than short term market bubbles.
Long term investments are better able to build profit upon profit over time. Trust in unchanging basic laws. 1+1=2. It always has and always will. If investing in stocks, find a company with valuable core assets.
The concept of high risk and high reward is best illustrated by trading firms. Moving goods from high availability to relative scarcity can involve many potential problems: weather, laws and market gyrations. The more issues there are, the higher the risk. The more scarce the good, the higher the reward. Items, not indigenous to areas, have greater value because they are scarce. Higher risk should bring higher reward.
A government bond is a lower risk and lower reward example. Few governmental entities go bankrupt; thus, the risk is lower. Lower risk should bring lower reward.
The best way to invest money is to match your risk/reward tolerance. Maximize your risk to levels you are comfortable with. All investments have some risk of failure. Calculate a reasonable level of risk for the reward you expect.
Use time efficiently. Timing is essential. Allow for the investment to mature. A man can easily lose money, if he is forced to withdraw his money early. So use "extra" money that can grow over time.
Doing your homework beforehand is the best way to invest money. A wise investor does not believe everything he hears. The wealthy and powerful are usually privy to detailed insider information the average man cannot get access to. Be reasonable assessing your advantages and disadvantages.
Be careful, prudent and wise. Don't jump into anything that you are unprepared for. Wait for your opportunity, get ready and then grab your profits.
The completion of the new voters list is a huge achievement for Bangladesh's caretaker government, which has promised to reform corrupt institutions and hold free elections by the end of December.
It came to power a year and a half ago, after the last elections were cancelled following months of street violence. The opposition then claimed that the electoral register contained the names of millions of fake voters. So the caretakers, and their backers in the army and international community, decided to tear it up, and start all over again.
The Election Commission now claims that the new register is the most accurate in Bangladesh's history. Military units have painstakingly recorded information on more than 80 million people. This means that the new voters list has about 13 million fewer names on it than the last, discredited one. The election commission also says that new ID cards, which will soon be printed, will make it harder for people to vote twice. The whole process has cost 80 million dollars.
In itself, however, this new register will not guarantee a credible election. There are still doubts over the participation of the main parties, dozens of whose leaders have been jailed for corruption. Also the interim government still governs by emergency rule, with the firm backing of the army. But it says that restrictions on political activities will be lifted before campaigning begins.
The IMF says the global economy is in a tough spot, caught between sharply slowing growth in many developed economies and rising inflation everywhere. The agency's chief economist Simon Johnson said this is a very difficult moment for policy makers in almost every country. The IMF is becoming increasingly concerned about inflation.
Mr Johnson said the acceleration of price rises is a serious negative development. It's partly due to the rising food and energy prices, especially oil. But the IMF says that economic policy in some developing countries is also a factor.
The report predicts a modest slowdown in growth in the developing nations and Mr Johnson says that unless they take action to prevent inflation rising further the outcome could be substantially worse.
When a beginning trader is first starting out, their risk for losing money in the stock market is at its highest. There are several reasons for this, most of them pretty obvious:
They lack experience in picking the right stocks They are not experienced in reading the right entry and exit points They make mistakes, like chasing a fast riser as it increases
If you are getting started trader and you plan to trade stocks quickly and try to make your profits fast, then you should incorporate these other ways to minimize your risk:
1. Diversify Your Portfolio - The most common way to minimize risk is to diversify your portfolio. Even if you are a trader who is buying and selling stocks quickly, you should not invest your entire fund in one stock. Spread your fund out over five or more stocks at a time. Even this is a very small number compared to the number of stocks that make up a mutual fund. But it should be fine if you are just starting out with a fairly small fund.
2. Don't Buy Penny Stocks - Penny stocks are popular for many traders because they offer a way to make big gains fast. However, for the beginner, the down side to them is that they also offer a way to take a big loss fast. If you are not confident in your ability to read the technical indicators, it is best to stay away from them for now.
3. Use a Stop-Loss Order - A stop-loss order is a sell order that you place right after you buy the stock. You set the "strike" price, or the price it will trigger the sale, below where you bought the stock. This gives you automatic protection against a stock that unexpectedly drops in price. While you will take a small loss, you are prevented from taking a huge loss, and that is a good thing.
4. Don;t Trade Low Volume Stocks - Low volume stocks refers to the average number of shares traded for a stock each day. If you own a stock that is not performing well, you would probably put in a sell order at a set price. If that stock is a low-volume stock, the problem is that there may not be a buyer out there willing to buy that stock at your asking price. This spells trouble when you are desperate to get out of your position. Set your volume limit at 100,000 shares traded per day. If you do, you can be pretty sure there will always be someone out there to buy when you are ready to sell.
Download my free guide, 7 Steps to Online Trading Profits to learn how to get your online trading going fast and profiting quickly at http://www.beginningonlinetrader.com/
Surge in joblessness, oil near $140 fuel recession fears
The stock market tanked on the news, only to see losses accelerate as oil continued to surge, fueling fears people paying more at the pump will cut back on consumer spending.
"In past times usually when our economy went down, oil prices would go down," said Owen Fitzpatrick, chief U.S. equities strategist at Deutsche Bank. "But we're not in the driver's seat anymore. Supply is coming from Saudi Arabia, and it's China on the demand side.
"This time, it's not a sign of our economy overheating," he added.
Crude finished the session on a gain of nearly $11 at $138.54 a barrel, after earlier reaching a record high above $139.
At the end of Friday, the Dow Jones Industrial Average
12,209.81, -394.64, -3.1%) plunged 394.64 points, or 3.1%, to end 12,209.81, giving it a weekly loss of 3.5%.
"Some people are throwing their hands up in the air with exasperation, and have thrown the towel for the week," said Sam Stovall, senior investment strategist at Standard & Poor's.
1,360.68, -43.37, -3.1%) fell 43.36 points, or 3.1%, to 1,360.69, leaving it down 2.9% for the week. The technology-heavy Nasdaq Composite Index :
Nasdaq Composite Index
The SENSEX ( The sensitive index of Bombay stock exchange) closed today at 15300 points (almost near 52 week high) up from 10149 (almost near 52 week low) a year back. A whopping 50%. If you look at the dolex 30 52 week high of 3119 and 52 week low of 1729, dollarwise returns are almost unbelievable 80%. Indian stock markets are in this dream run because of the effects of FII investments, increasing corporate earnings and realisation of better valuations by Indian companies. BHARTI TELEVENTURES gave 126%, HDFC gave 80%, ICICI BANK gave 96%, LARSEN & TOUBRO gave 96%, STATE BANK OF INDIA gave 110%, RELIANCE COMMUNICATIONS gave 108% returns during this period. 9 stocks gave negative returns versus 21 stocks which gave positive returns. The PE Ratio of the sensex currently stands at 20.5 times. During september 2006 when SENSEX was at around 12000 points the PE Ratio was at 20.75. This means that the Indian markets are as attractive as it was in September 2006. I predict a 35% returns on SENSEX in the coming 1 year.Tips for Indian stock investorIndian Stocks market is showing strength from strength and is making steady gains over last few years. SENSEX and NIFTY are less than 5% below the all time highs. Advice on buying and selling of Indian stocks and indices. Indian stock market investing made easy. Expert recommendations, mature tips, share market information at one place. Portfolio advice for Indian stock markets. Making money from Indian stock market was never so easy. But although markets are in the upswing we find more and more people exiting citing losses in stocks. A close analysis shows non understanding of financial markets as the main reason for this. Stock price movement is just more than a simple graph. Fundamental analysis helps you to identify potential winners which can be multibaggers. Technical analysis helps you time the markets. If you are a long term investor, Fundamentals play a more important tool. If you are a short term trader, Technical analysis, news, rumors play a more important role. Indian corporate earnings are showing strong growth in last 4-5 years which is well reflected in Indian stock market. Stock market trading without proper research is bound to make you loose all your finance. We recommend studying charts, avoid keeping a close eye on quotes / prices, day trading, penny stocks. Finding a good stockbroker, stock exchange like New York stock exchange, Toronto exchange, NSE etc. Stock picks should be purely based on research on fundamentals and technical analysis. Consider future trading and options. Mumbaibull.com presents a set of stocks to buy based on these principles. Emphasising more on fundamental and a bit on technicals
When I wrote the below article few months back, many were saying Indian markets expensive. The SENSEX was at 15000 levels. Now SENSEX did 30% from those levels and crossed 20000 for a short while and now trading around 8% lower from the peak at 18750 levels. The PE for the SENSEX should be now around 23 times now ( I have not calculated the exact value). The SENSEX stocks are bound to grow at least 25-30% cumulative for next 3 years (I here advance tax collection up by 40%). This will take the SENSEX EPS to 1600 – 1800 range. Taking a low PE of 20, SENSEX should at least see 32000 mark. Taking a higher PE of 23 times on a higher growth and higher EPS target, SENSEX should see 41000 mark. This target is for next 3 years.
