W.D.Gann's Valuable Rules--

Some of today’s great trading philosophies actually date back to the early to mid1900s.And W.D. Gann, was considered "market mavens" of that time. He stressed hard work and preparation as pre-conditions for successful trading of markets. His  work is still valid and renowned by successful traders of all markets worldwide.

William Delbert Gann made an enormous contribution to analysis and trading throughout his long lifetime. The fact that his techniques are used by so many traders and investors today, almost 50 years after his death, is evidence enough of his enormous contribution. Even his few critics flatter him by repeating his never failing rules as their own, more than half a century after Mr. Gann first devised them.

Gann’s 28 Valuable Rules:

In order to make a success trading in the stock market the trader must have definite rules and follow them. Gann said "The rules are based upon my personal experience and anyone who follows them will make a success."  It is now more than 50 years since W. D. Gann documented his 24 rules, yet they apply today as much as they ever did.

1. Amount of capital to use: Divide your capital into 10 equal parts and never risk more than one-tenth of your capital on any one trade.

2. Use stop loss orders. Always protect a trade when you make it with a stop loss order 1 to 3 cents, never more than 5 cents away, cotton 20 to 40, never more than 60 points away.

3. Never overtrade. This would be violating your capital rules.

4. Never let a profit run into a loss. After you once have a profit of three cents or more, raise your stop loss order so that you will have no loss of capital. For cotton when the profits are 60 points or more, place stop where there will be no loss.

5. Do not buck the trend. Never buy or sell if you are not sure of the trend according to your charts and rules.

6. When in doubt, get out and don’t get in when in doubt. 

7. Trade only in active markets. Keep out of slow, dead ones.

8. Equal distribution of risk. Trade in two or three different commodities if possible.Avoid tying up all your capital in any one commodity.

9. Never limit your orders or fix a buying or selling price. Trade at the market.

10. Don’t close your trades without a good reason. Follow up with a stop loss order to protect your profits.

11. Accumulate a surplus. After you have made a series of successful trades, put some money into a surplus account to be used only in emergency or in times of panic.

12. Never buy or sell just to get a scalping profit.

13. Never average a loss. This is one of the worst mistakes a trader can make.

14. Never get out of the market just because you have lost patience or get into the market because you are anxious from waiting.

15. Avoid taking small profits and big losses.

16. Never cancel a stop loss order after you have placed it at the time you make a trade.

17. Avoid getting in and out of the market too often.

18. Be just as willing to sell short as you are to buy. Let your object be to keep with the trend and make money.

19. Never buy just because the price of a commodity is low or sell short just because the price is high.

20. Be careful about pyramiding at the wrong time. Wait until the commodity is very active and has crossed resistance levels before buying more, and until it has broken out of the zone of distribution before selling more.

21. Select the commodities that show strong uptrend to pyramid on the buying side and the ones that show definite downtrend to sell short.

22. Never hedge. If you are long one commodity and it starts to go down, do not sell another commodity short to hedge it. Get out at the market: Take your loss and wait for another opportunity.

23. Never change your position in the market without a good reason. When you make a trade, let it be for some good reason, or according to some definite rule; then do not get out without a definite indication of a change in trend.

24. Avoid increasing your trading after a long period of success or a period of profitable trades.

25. Don’t guess when the market is top. Let the market prove it is top. Don’t guess when the market is bottom. Let the market prove it is bottom. By following definite rules, you can do this.

26. Do not follow another man’s advice unless you know that he knows more than you do.

27. Reduce trading after first loss; never increase.

28. Avoid getting in wrong and out wrong;getting in right and out wrong: This is making double mistakes.

Types of mutual funds---

This guide for the various types of investment funds. A mutual fund is a professionally managed type of collective investment scheme that pools money from many investors and invests it in stocks, bonds, short-term money market instruments, and/or other securities.

When it comes to investing in mutual funds, investors have literally thousands of variations. Before investing in the fund on the feasibility of investment strategy and risk funds good opportunity for you. 

The first step for the success of the investment is to determine your financial goals and risk tolerance - whether in its own discretion or professional help financially. Once you know what you do if you need money, and how much risk you can tolerate, you can choose. 

Most mutual funds fall into one of the three main categories - money market funds, pension funds (also known as the "Fixed Income" fund), and stock funds (also called the "L" Equity Fund). Each type has its own characteristics and different risks and opportunities. Typically, higher yield potential, higher risk of loss. 

Money Market Fund: 

Money Market Fund, have relatively little risk compared with other investment funds. Investor losses have been rare, but they are possible. Money Market Fund to pay dividends, which generally reflect the short-term interest rates, historically funds and money market yields are lower than in bonds and securities funds. 

Bond Fund: 

Bond funds are generally more risk than money market funds, mainly because they tend to  achieve higher yields. Because there are many different types of bonds, bond funds can be very different in their risks and benefits. 

Stock Fund:

A stock fund is a fund that invests in Equities more commonly known as stocks. The objective of an equity fund is long-term growth through capital appreciation, although dividends and interest are also sources of revenue. Specific equity funds may focus on a certain sector of the market or may be geared toward a certain level of risk.

A small information for the new investors if they have a certain objective, they can invest accordingly---

Investors interested in:	Should invest in:
Growth	Stock Funds
Income	Bond Funds
Safety of Principal	Government Bond Funds
Immediate Liquidity	Money Market Funds
Tax Relief	Municipal Funds
Maximizing Current Income	Corporate Bond Funds

Debt guarantee programme altered in US---

The US regulators  changed a Federal Deposit Insurance Corp debt guarantee programme to help unfreeze credit  markets by encouraging American banks to issue hundreds of billions of dollars in new debt. 

The market could see roughly $50 billion in new debt issued each month through June 30 because of lower fees and other technical changes, according to a Bank of America report. The FDIC board agreed to modify the agency's Temporary Liquidity Guarantee (TLG) program, which was initially put in place last month to reduce banks' funding costs and increase their liquidity. 

The program is expected to fill a financing gap for banks shut out of the corporate bond market by skyrocketing yields. 

Without the FDIC guarantee program, banks may have been forced to pay some of the highest yields in decades to help refinance the debt. The FDIC program is intended to insure a pool of about $1.4 trillion in new senior unsecured debt and also up to $500 billion in transaction deposit accounts, which businesses typically use to meet payroll and pay vendors.

The big mo

Why do share prices move relentlessly in one direction?

Think..!!

read this:

http://www.economist.com/finance/displayStory.cfm?story_id=12652255&source=hptextfeature

Know about-Angel Investor & Angel Investing..---

An angel investor (known as a business angel or informal investor in Europe), is an affluent individual who provides capital for a business start-up, usually in exchange for convertible debt or ownership equity. A small but increasing number of angel investors organize themselves into angel groups or angel networks to share research and pool their investment capital.

Angels typically invest their own funds, unlike venture capitalists, who manage the pooled money of others in a professionally-managed fund.Funding estimates vary, but usually range from $150,000 to $1.5 million. Angel financing, while more readily available than venture financing, is still extremely difficult to raise.

Angel investments bear extremely high risk and are usually subject to dilution from future investment rounds. As such, they require a very high return on investment.

Today's new crop of young technology entrepreneurs sees a ray of hope. Domestic markets getting to be large enough to support innovation, the technical innovation needed is something they feel they can master. But they are getting stuck at the first step which is finding the capital for their start-up ventures.

In the United States, that haven of innovation and entrepreneurship, this financing need is filled by a group called "angel investors".  The capital such angel investors need to put in is in the Rs 1-2 million range. This will help the young entrepreneur take the first step, set up shop, make a working prototype of his new product and find the first few customers. This capital will help him focus on the crucial product development stage and not get distracted by having to earn revenue from unrelated activities merely to meet payroll.

There are already a number of such angel investors operating in India but the existing numbers are too little for the scale of innovation needed or possible in India today. The Center for Venture Research estimates that there are about 200,000 angel investors in the United States. By this count, India needs at least 10,000 of them.

Three defining characteristics of Angels and Angel investing:
>	Support entrepreneurs at earliest stage
>	Invest their own money
>	Actively mentor company

Count the number of US banks collapsed this year

With slumping home prices and the worsening economic crisis taking an increasing toll on financial institutions, as many as 22 American banks have collapsed so far this year. 

Collapse of such a large number of US banks, despite a $700-billion bailout package, reflects the deep turmoil of the US economy.

From 2003 to 2007, only 10 US banks were reported to have collapsed. In 2008, the figure has already touched 22, with still more than a month to go…

1. Downey Savings and Loan
   
2. PFF Bank and Trust
   
3. Security Pacific Bank
   
4. Franklin Bank SSB
   
5. Community Bank
   
6. Freedom Bank
   
7. Silver State Bank
   
8. Columbian Bank and Trust
   
9. First Priority Bank
   
10. First National Bank
    
11. ANB Financial
    
12. IndyMac Bank
    
13. Washington Mutual
    
14. Alpha Bank and Trust
    
15. Meridian Bank
    
16. Main Street Bank
    
17. Ameribank
    
18. Integrity Bank
    
19. First Integrity Bank
    
20. First Heritage Bank
    
21. Hume Bank
    
22. Douglass National Bank
    

Singapore PM takes a pay cut..!!!

Salaries for Singapore politicians, who are amongst the highest paid in the world, will be cut by up to 19 percent next year due to a weakening economy, media reported on Monday. 

Singapore ministers, who are paid millions each year, have a component in their salary that is pegged to economic growth and with Singapore in a recession and the outlook gloomy for next year, this variable will fall, Channel NewsAsia said on its website, quoting the government's Public Services Division. 

Singapore's Prime Minister Lee Hsien Loong, whose pay was increased to S$3.76 million ($2.46 million) this year -- or five times that of U.S. President George W. Bush -- will see his salary fall to S$3.04 million ($1.99 million).

State wealth fund Temasek, headed by Ho Ching, the wife of the prime minister, also said on Friday that senior managers had volunteered to take pay cuts of between 15 to 25 per cent.

RTGS in banking

Real Time Gross Settlement (RTGS) is an online system for settling transactions of financial institutions, especially banks. 

RTGS systems are  push payment systems with transactions initiated by the paying bank. If Bank A or one of its customers needs to pay $1,000 to Bank B or one of its customers,Bank A initiates the transaction and Bank B is immediately paid $1,000 electronically by Bank A. There is no physical exchange of money.

Examples of RTGS systems include CHAPS in the UK and Fed Wire in the United States. Each country has its own RTGS system. This electronic payment system is normally maintained or controlled by the central bank of a country. The RTGS system is suited for low-volume, high-value transactions. It lowers settlement risk, besides giving an accurate picture of an institution’s account at any point of time. 

Such systems are an alternative to systems of settling transactions at the end of the day, also known as the net settlement system such as BACS. In the net settlement system, all the inter-institution transactions during the day are accumulated. At the end of the day, the accounts of the institutions are adjusted. Extending the example above, say another person deposits a check drawn on Bank B in Bank A for $500. At the end of the day, Bank A will have to "electronically" pay Bank B only $500 ($1000 - $500).

In an RTGS system, transactions are settled across accounts held at a Central Bank on a continuous gross basis. Settlement is immediate, final and irrevocable. Credit risks due to settlement lags are eliminated.

Becoming a Commodity--

This snippet comes from  article Solopreneur or Small Business Owner. 

Becoming a Commodity....

Not uncommonly, new businesses suffer from a lack of definition. 

To niche or not to niche? It’s a scary proposition to enter in to a new field,  or to opt for self- employment and we often want to keep our options  (for revenue) open. It is natural when one enters new territory to search  for any measuring stick one can find to learn how to succeed in one’s chosen field.

Unfortunately, this often means discernment gets tossed out and you can start to read every industry directive on what it takes to succeed as relevant to your business.

It may not be. 

In fact, some of what you read may go so against your inherent strengths that you will risk being trapped in inefficiency and find yourself stalled and overwhelmed at every turn should you try to follow their recommendations.

It’s important to understand that what is common to all distinguishes none.

When you find yourself about to change anything in your business, take the next step and simply STOP! 

"Don't compromise yourself. You are all you've got."    ~Janis Joplin

The rishest Indian--Forbes

Reliance Industries' Mukesh Ambani has overtaken NRI steel tycoon Lakshmi Mittal as the richest Indian in the world, with a net worth  of $20.8bn, Forbes said in its annual rich list for the country.  Richest Indians on Forbes cover Mittal, who has moved to second position with a net worth of $20.5bn, is followed by Mukesh's younger brother Anil Ambani, whose wealth stood at $12.5bn.  The magazine said that the combined net worth of India's 40 richest has declined by 60% due to weak stock markets amid depreciating rupee against the greenback.  Their total wealth is now $139bn, down from $351bn just a year ago, according to Forbes India Rich List.  While all 40 tycoons listed last year were billionaires, only 27 have 10-figure net worths now. A net worth of 760 million dollar was needed to make to the list this year, 840 million dollar less than last year.