Should You Average Down in Price?

Tags: stock market, stocks, stock market useful guide, stocks tips, Earn Money from stock, How to make money in stock market

Should You Average Down in Price?

One of the worst mistakes I have seen some stockbrokers make is to be reluctant to call customers whose stocks are down in price from what they paid for them. That is the very time a client is unsure and may need some help and reassurance. To shirk duty in the difficult periods is not very professional and shows a lack of courage, or "guts," under pressure.

About the only sin that is worse is for brokers to take themselves offthe hook by advising customers to average down and buy more of the stock that already shows a loss. If a broker advised me to do this, I would close my account and look for a smarter broker.

Everyone loves to buy stocks; no one loves to sell stocks. As long as you hold a stock, you still have hope it might come back up at least enough to get you out even. Once you sell, you abandon all hope and accept the cold reality of defeat. Investors are always hoping rather than being realistic. You just can't afford to have a love affair with any stock.

Let's see where the real problem lies. Does the fact that you want a stock to go up so you can at least get out even have anything to do with the action of the stock market?
The stock market only obeys the law of supply and demand. So try to overcome this harmful emotion because it has absolutely nothing to do with the action of your stocks.

A great trader once said, "There are only two emotions in the market— hope and fear. The only problem is we hope when we should fear and we fear when we should hope."

How You Can Spot Stock Market Bottoms

Tags: stock market, stocks, stock market useful guide, stocks tips, Earn Money from stock, How to make money in stock market

How You Can Spot Stock Market Bottoms

Once you've recognized a bear market and scaled back your stock holdings, the big question is how long you should remain on the sidelines. If you plunge back in the market too soon, the apparent rally may fade and you'll lose money. But if you hesitate at the brink of a roaring recovery, opportunities will pass you by.

Again, the daily general market averages provide the best clues. Watch for the first time an attempted short-term rally follows through on anywhere from its third to tenth day of recovery. The first and second days of an attempted improvement can't tell you if die market has really turned, so I ignore them and concentrate on die follow-through days of the rally. The type of action to be looked for after the first few days of revival is an increase hi total market volume from die day before, with substantial net
price progress for die day up 1% or more on the Dow Jones or S&P Index.

There will be some scarce cases where whipsaws may occur; however, in almost every situation where the rally has a valid follow-through and then abruptly fails, the market will very quickly come crashing down on furious volume, normally the next day.
Just because the market corrects the day after a follow-through, however, does not mean the upward follow-through was false. When the general market bottoms, it frequently backs and fills (testing) near the lows made during the previous few weeks. It is usually more constructive if these pullbacks or tests hold up at least a little above the absolute intraday lows made recently in the market averages.

Sell:Tata Motors, HCL Tech, Wipro

Tags: Tata Motors, HCL Tech, Wipro

Technical experts are saying today that should sell the Tata Motors, HCl and Wipro.

The current price of Tata Motors is Rs 650.05. It is Better to sell at a target of Rs 644 and stop loss of RS 652.

The current price of HCl technologies is Rs 339.70 and sell with target of Rs 332, stoploss is at Rs342.

Settle Dispute With Farmers and Chinese Stocks Surge

Farmers and sugar mills have been compromised after long disputes in Uttep pradesh.Sugar mills are buying the sugarcane RS 190-195 per quintal. This price is more than the Government support price. The Chairmen of Chinese Association of Uttar pradesh Ptudia c.B said that "This is a victory for the farmers of uttar pradesh. Chinese mills have agreed to their demands". After this announcement Chinese stocks looking stronge to 2.5-4%.

Due to conflict with farmers and sugar mills many mills had stopped the supply of sugarcane.In morning trade the shares of Sugar companies as follows.

Nifty closed below 5100

Indian stock market ups - and downs after the main index closed with a decline. BSE Sensex is at 49 points of weakness with 17.131. Nifty closed at 5090 with a decline of 13 points. Of 0.52% in the medium Midkap Sianaks NSE index was strong. 0.23% in BSE Sensex and BSE Midkap 0.36% of the Smolkap is bullish.
Indian stock markets early this morning began with an edge. Sensex closed yesterday down to 51 points above the level of 17.180 to 17.231 went. Nifty opened with a brief consolidation. Sensex and Nifty, but it could not stay ahead for long and both indices based on red marks left. Went below the psychological 5100 level Nifty. Then the stock market index in the two red marks on the top - are come down. Sensex and Nifty in afternoon trade on and green marks gone. Nifty again in 5100 has crossed a psychological level. But this advantage could not remain intact for long. Both indices have again seized with lipstick. Nifty below 5100 levels was rolling. In today's business on behalf of the Nifty 5113 and below the 5053 level of the data untouched, while the Sensex and the data upwards of 17.231 to 17.027 Status touched down. Sensex 0.29% and 0.25% of all Nifty closed with a decline in light.