Bible qoutes of the day: Proverbs 21:5

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Proverbs 21:5


The thoughts of the diligent tend only to plenty; but the thoughts of everyone who is hasty only to poverty. 

Learn the virtue of diligence.  Who is diligent then?

Diligent means constant in effort to accomplish something; attentive and persistent in doing anything. Same is true in the stock market. 

We already knew that the stock market is not only graphs and monetary value, there is some more to it thus you need to constantly learn so that you can finally do your trades is if it is your second nature. Rushing to place a buy without researching first a stocks fundamental side is a bad move as well us buying on impulse because the news said its price has gone from a low price to a high price. 

Remember the truth that I have been saying: No one can accurately predict the stock market only probable outcomes. There will be time that you have this hunch but you hesitated to place a buy or sell order and after sometime the price have gone up or suddenly collapse and you suddenly thought you could have profited by no. But that how it is, risk is there. That is why you have to be diligent in learning the ways and psychology of the stock market.   

Don't be ashamed to ask but at the same time don't rely on somebody else opinion. You got to have your own after thinking it over.

So read, investigate, analyze, take a deep breath and place that bid or sell, if it turns out right you profit and if not you at least gained an invaluable knowledge which can help you do better in the next trade.   

Investing word of the day: Rally

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I got this article from investmentterms.net

Rally, in stock market refers to a sudden, significant rise in price of a particular security or in the total market. This can especially happen after a continuous period of falling prices. Suppose the stock market has dropped in the morning, and the investors consequently make haste to purchase companies at lower prices, then the stock market is said to have rallied.

It is caused due to a huge sum of money that enters the market, bidding the prices up. The magnitude or length of a rally is dependent on the depth and volume of buyers, as well as the amount of selling they do. Thus if there is a greater number of buyers but less investors intending to sell, there is likelihood of a large rally. If the number of buyers matches the number of sellers, the rally most likely will be of a short tenure with the price movement being minimal.

Rally is a period of sustained increase in stocks, bonds and prices of indexes. This type of situation can take place either during a bull market or a bear market.

Bear market rally

source:http://www.zealllc.com/

A bear market rally refers to a rally that occurs after a great amount of downward trend. A bear market rally apparently is an indication of the markets making recovery. In other words it is turning around to a bull market. However this might signify a temporary trend. Because of the inherent unpredictability associated with this rally, it is also sometimes termed as a sucker rally. Many people are misguided into investing seeing the upward trend only to be deceived shortly, when markets do fall.

Bull market rally

source: http://blogs.reuters.com/globalinvesting/
This is a sustained, prolonged period of rising investment prices, faster than the historical average. One of the significant periods of bull market rally in the U.S. was in the early 1990s.

Knowing the information in the Philippine Stock Exchange

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If you have not done it yet please read this post and familiarize yourself with Philippine Stock Exchange's website. Right click here and chose "open in new tab" to go to there website.

Again in this page there are so many financial and investing lingo that you might not understand. Learning these words will help you understand investing so have the effort to search and understand these words. But our lesson here is to help you out how to navigate and get information about Philippine Stock market through PSE's website. On the right side of the webpage you will see a box with the title Market information & PSEi Intraday

A new window pops showing a listing and a graph. Click on the listing under "ALL SHARES" and the PSE website will show you all the listed companies with some important information.

Familiarize yourself with the company names and their Stock symbol. You will be needing this to access the information of companies you are interested in. In the PSE's main page there is a box on the right top "Symbol Lookup" Enter here the symbol of the company you are interested so that you can view important info regarding the company.

 Let's check China Banking Corporation(I'm am not endorsing ChinaBank) use the symbol CHIB.

Chinabank's Stock info page is shown. A graph of the company's daily closing market price is available for you to see the movement of the stock price of the company.

Monitoring your stock's price should be done if you are an investor. When you are an investor time is your ally. You buy stocks of good companies when their price is low and sell them when their price is high. But if you are a trader you are betting that a small rise in price during the trading hours will make or break you. Having information is an edge either one is an investor or a trader of stocks.