Rules of Investing.

The above is from rediff website.

My personal experience,has made me,to:-

1.FOLLOW THE TREND…….

2.THOROUGHLY, RESEARCH,ON STOCKS,MARKETS…NO HASTY DECISIONS.If you are serious about the Stock markets,you should be aware of the following;-

a)The markets are MANIPULATED….

b)Big Players have inside information due to contact with the Governments.

Use the following;-

a)Economic calendar.That is,meetings od RBI.US Federal Reserve,ECB,Bank Of Japan,BoE,Chinese banks etc

b) Dates of announcements by Governments,especially,China,EU and the USA now.

3.BUY LOW and SELL DEAR…….This requires patience.The Speculators who “RUN” the Stock,Currency and Commodities, Exchanges rely on the boom-burst cycle to loot the wealth of the unwary. Hence patience,always pays.

4.USE  ‘STOP-LOSS’.VERY IMPORTANT FOR TRADERS AND INVESTORS ALIKE,TO CUT LOSSES…..

5.Study Quarterly results,….before deciding on a stock,buy or sell.

6.BUY,Physical Gold and Silver, preserve one’s wealth,whether they rise or fall.About 25% of your WEALTH should be in these forms,namely,Physical Gold and Silver.Buy in SMALL LOTS……..

7.Start a FINANCIAL BLOG.YOU’LL LEARN A LOT……….

8.IN YOUR BLOG,WRITE ABOUT THE FOLLOWING;-

a)THE BALTIC DRY INDEX.

This is very low now,and the TREND is downwards.SINCE THIS IS A “LEADING INDICATOR’ OF THE GLOBAL ECONOMY,the situation is very bad now.

b)The price of Crude:-

Following this is very important,as one gets an idea about INFLATION…Based on this,Central banks adjust interest rates.

c)INFLATION:

A knowledge of this,will give an idea as to how the markets will behave.

d)The value of your National Currency,viz-a-viz,the US Dollar

e)The US Dollar Index

Since,the US Dollar,is the Reserve Currency, KNOWLEDGE OF THIS,IS ESSENTIAL…

f)CAD,BOP,GDP,Debt,Fiscal Deficit……..

These will give an idea as to the Financial Status of a nation…..

g)The historical values of Gold,Silver and Crude prices…The US Dollar index too….Your national Currency V the US Dollar….

h)The prices of the Petroleum Fuels….

To be continued…….

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