How to make money from stock investment Part 4

Happy Friendship day. “Every person is a new door to a different world” a famous quote. So be friend with everybody, learn, enrich, and collaborate with each other peacefully and meaningfully until they prove otherwise.

Bull and Bear are one’s perspective about stock or overall market condition. Bull means full of optimism, take charge now. The bulls usually drive market to acme. Bear means cautiously optimist, don’t want to take decision now, slow down and usually drive market to nadir. For further reading
http://ibloggergeek.blogspot.com/2008/06/optimism-vs-cautiously-optimism.html http://www.sastwingees.org/2007/08/24/optimistic-or-pessimistic-which-is-better

The point to remember is, we should transmute bull mode or bear mode time to time. An investor who plays always bull or always bear means he/she tend to lose money and called pig. So how to become bull or bear based on conditions? Prediction is the key element of transmute. Here are points to predict market well before to take charge or wait in sidelines.

1. Always follow bellwether company news and their announcements. For example, DOW 30 index companies are bellwether to their industry. A caveat from bellwether company means, we can sell their competitor stock without hesitant.

2. Visit http://www.intrade.com/, for prediction market update. Yes folks, we are living extreme capitalist era, we can buy/sell prediction also. As per prediction trade currently most of the investor’s thinks Obama becomes president and before Dec 31st US congress lift complete ban on offshore drilling.

3. Express/collaborate our predications with our friends, even though, that are foolish or utter blunder. This would help to enhance our prediction or get more pointers. For example, I expressed one prediction almost 2 years ago, when I read it again, I wrote something important and today people are talking about it.

4. There is information spread across all over place in net. Just we need to connect each point to get clear picture.

Now, I’m predicting something, at end of it, I will be bull for one stock.
Step 1:
From intrade.com, it is most likely that Obama might be next president.

Step 2:
From TV talk shows, news articles, and http://www.barackobama.com/issues/energy, I know that he is against nuclear power, clean coal energy etc. He is big favor of Go Green concept.

Step 3:
From Barack Obama site, “Obama will invest $150 billion over 10 years to advance the next generation of biofuels and fuel infrastructure, accelerate the commercialization of plug-in hybrids, promote development of commercial-scale renewable energy” I think renewable energy is now Hobson’s choice.

Step 4:
Go to http://www.ishares.com/ and search renewable energy.

Step 5:
Click on S&P Global Clean Energy Index Fund and browse top holding from main fund screen. I’m now in favor of ETF so I might stop here and try to buy some funds from ETF trading. If you want to buy a stock, please continue.

Step 6:
Click on view all holding click and see all the stocks. I like a stock ENER from the list. Because I had a position on this stock, this is solar cell manufacturing company and why buys somebody using it rather buys a manufacture.

Step 7:
Go to Yahoo and follow the http://ibloggergeek.blogspot.com/2008/07/how-to-make-money-from-stock-investment_28.html tech. analysis and creation of limit orders.

Comments

sukumar said…
This is a nice series Subba. It will also help to talk about what kind of returns your strategies bring you. Is it 15-20% kind or the 50-70% kinds or higher? BTW, thanks for the link.
Thanks Sukumar. Next post I will talk about returns.

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