Astrology and Stock Markets

I see that many websites and blogs have started to analyze and forecast Stock Market movements based on Astrology. Those persons who are behind these websites believe that they can forecast the market movements based on planetary movements.

I do learned astrology as part of improving my technical analysis skill. I came to know that the slow moving planets like Jupiter and Saturn influence most in analyzing once horoscope. And also the movement of this planets influence major events in the world. Other planets like Mercury, Venus, Mars which are fast moving planets and they influence least when compared to fast moving planets.

Stock Market movements are governed by demand and supply. The difference in the demand and supply makes the market to swing here and there continuously. The oscillating movement starts from intraday and it extends till centuries. Many analyst who are using astrology for forecasting, predict the intraday movements of the markets.

The fastest moving planet mercury takes four months to move from one Zodiac sign to another. I don’t know how a planet that takes four months to move from one Zodiac to another influence the intraday movement in the stock markets and I don’t know the methodology that is behind in predicting the stock market intraday movement.

As far as I am concerned, and also as person who know astrology and Technical analysis , I believe, nobody can predict the stock market movement using astrology.

A big bear market is looming in Global Markets

In the earlier post, in which we have written about Dubai and we have stated that this was the tip of the iceberg. Now we are hearing about Greece crisis. Greece is on the verge of collapse financially.

What is happening in Greece and will it end with Greece, or will it take further toll? The answer to this happen is, yes, the toll is likely to continue in coming months. Below I have given the technical reason for that.

Since 1929, there was not a big bear market in the world Markets. We have seen bear markets during the past twenty years, but, they were not as worst as the bear market in 1929. Various Technical studies say we are likely to see a big bear market of that magnitude in near future.

Any market would undergo a correction of larger degree every 100 years. Since 1929, we have not seen any major bear market like that. The 2000 dot com bubble burst and 2008 reality bubble burst are foretelling a big correction ahead.

Be prepared for it.

Trading is a Business

I have been a trader in stock Market for the past 10 years. Whenever I introduce myself as a stock market trader to any new people, they just blink at me and look at me somewhat skeptical at me. The reason is simple. If you are a trader in a speculative market, people look at you as gambler.

Gambling is different from speculation. Playing cards and betting on horses is a gamble. In this two, you are betting on a thing whose performance is not in your command. You are betting on a performance, not on any asset.

But in trading, you are putting money on an asset i.e. stock. The money you have invested in market is backed by the fundamentals of the company. More over you would have invested in that stock after analyzing the performance of the stock fundamentally and technically.

So, here the outcome is predictable. But in gambling the outcome is not predictable. So if the outcome is predictable, then how can we say it is gambling if we trade in stocks.

Every business is risky. The same risk is associated with trading in stocks also. Then why some body say it as gambling. So, stock trading is also a business as some other business.

Has the Gold prices topped out?

Ever since gold made a high around 1220 USD, it is declining from that level and recently it touched a low around 1050. Is this the high for another 5 years? or will it rally again above 1220 to make a new high in coming months? This is a million dollar question right now?

Almost all the fund managers and Analyst are bullish on gold and they are advising their clients to buy gold as investments. The consumption of Gold by China has exceeded the consumption of India. And it is being stated as one reason for the rise in Gold. And also it is been said by Market pundits that many central Banks would also start buying Gold for hedging purposes.

Irrespective of this, what does Technical Analysis say about future price of Gold. Technical Analysis would really predict the future course of the Gold Market. We have seen in many Markets, the top would be formed, when everybody is bullish. So once everybody has invested in Gold, surely the prices are going to decline. No market would continue to rally or decline forever. The markets need to consolidate while rallying or declining.

As the same case, the Gold market has to top out somewhere now or then. But going by the technical analysis, it says a top is already formed. So, in the future, Gold is unlikely to move above 1220 at least for another5 years. From here, it is going to decline further towards 800 USD in coming years.

Be careful when it comes to investing in Gold.

Why is Building a Brand Important?

 

The main aim of any small business or a corporate company is to build a brand. Building a brand is of prime importance than making money in the business. Of course, everybody in the business is here to take profit from the business. But before taking a profit one should build the brand for their products. Without building a brand, taking out the profits will surely sustain for short term.

If you want to be in the business for long term, first build the brand and get the confidence and loyalty of the customers. Coco Cola and Pepsi, when they entered the Indian Market, for the first five years they spent lot of money in building the brand image. They never broke even for the first five years. Think of a Company which invested lot of money in one company and they never get paid for the investments for the first five years.

It may look ridiculous initially, but they have built a brand image in every household in India. From urban population to rural population in India, everybody knows these two brands. Initially, they started with their core business of beverages. But after having built the brand name, they have started introducing other food products also.

They have slowly entered the snacks market in India. First they penetrated the urban market and they slowly penetrated rural market also. Now the traditional snacks in india is being replaced by these snacks. Such was their brand image, which could even change the way of life in one country.

What Coke and Pepsi did in India is brand building. They did for the first five years and now they are reaping the benefit of brand building. You too, if you are interested in starting business, build the brand first, and then make profit out of it.

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