A good mentor

One aspect of learning new things is to have a good mentor. My mentor is Pradeep Bonde. He has been studying the stock markets over years and has developed his own methodolgies. He is reaping the benefits of his efforts now.

You can read about his methodolgies at Stockbee. For more experienced traders he has a member only area at easyguru. The principles I will be developing here will be mostly, though not entirely, based on the principles mentioned at Stockbee.

One of the first thing I will be implementing is Market Monitor for UK stock market. I will discuss about Market Monitor in my next blog.

Raj

Market Recovery

Markets around the world seems to have recovered well. Bombay stock exchange is all time high and will continue bull run as festive season approaches. Gold will be a good invesment now as many people in India buy gold around this time of the year. It is 28 years high.

Also miners dealing in gold might be a good buy like BHP Billiton (BLT.L). Other miners took a beating today as metal price came down.

Banking stocks are best avoided. Northern Rock is due for further fall as they have done a U turn on the dividend and they are struggling to find a buyer.

Software Tools

To build a good investment strategy, it is useful to invest in a good software. Personally I have invested in Amibroker. It is used worldwide by most investors from armatures to professional. Also with my software background, it is easy for me to customise the software to my needs. I will be posting the formulas on this blog as I develop them.

Market very volatile

Currently markets around the world are very volatile due to slow down in US housing market. In UK, Northern Rock is the first casualty of this even though it is not directly linked to the ongoing sub prime woes in US.

Today banking shares are down. Northern rock is down 40% today and has lost 80% from where it was at the start of current year.

I have burnt my figures with it and will try to stay away from the banking sector for some time now. This section has performed very well in past.

For time being I am on the sideline and will be watching market actions very closely.

Raj

Learn to Trade - Another blog on share trading?

For many years I have kept myself away from the stock market. I always beleived that it is for the experts. I couldn't have been wrong any more.

I think stock market is a place where the money flows from fool to smart people. Yes you need to have good undestanding on how things work and what those figures mean. But you don't have to be an expert to make money.

I know there are many blogs out there on investing, picking shares etc. In this blog I will be sharing my personal experience and the things I will learn as I go along.

Hope more people will add to this blog and we will be able to share our experience.

As the name suggest, this blog will discuss few basic principles of selecting good shares for trading. We will build our own principles as we go along and we will test them to see if they work.

We will discuss other means of investment. I will be primarily covering UK and Indian stock market.


Thanks

Rajesh