The Stock Market Game

Stock MarketRestaurant Empire is a fantastic computer game where you take on the role of aspiring Master Chef Armand LeBeouf. Day trading is, therefore, not advisable for someone who has a busy profession and cannot devote sufficient time to monitor the market from morning till the end of the trading session. For this, one can checkout the free website , which facilitates creation of a virtual portfolio and allows a beginner to carryout experiment in day trading in stocks by playing the virtual game. It is not advisable for someone who has a busy profession and cannot devote enough time to monitor the market from morning till the end of the trading session.Stock Market

The safe proven intraday trading techniques mentioned below are the outcome of personal experience of a professional day trader and a seasoned investor in Indian Stock Market. I fully agree that unless you have sufficient time to monitor the market throughout the day it is not possible to successfully carryout intra-day trading, which is a high-risk arena. While there is a tenuous link of Fed Funds rate to short term market interest rates, that link becomes much weaker when we look at long term rates and their derivatives.

Why preserve the myth: I think it is much more comforting for developed market investors to think of low interest rates as an unmitigated good, pushing up stock and bond prices, rather than as a depressing signal of future growth and low inflation (perhaps even deflation) in much of the developed world. So you believe market determined Zero or lowest rate for last 6 years post 2008 has no or negligible influence on it.

One way to decompose the effects is to compute forward-looking expected returns on stocks, given stock prices today and expected cash flows from dividends and buybacks in the future to see how much of the stock price effect is fueled by interest rates and how much by cash flow changes. If the company is laying off people, times are bad and stock prices are sure to go down.

If this bull market has been entirely or mostly driven by the drop in interest rates, the expected return on stocks should have declined in line with the drop in interest rates. Why preserve the myth: For perpetual bears, wrong time and again in the last five years about stocks, the Fed (and low interest rates) have become a convenient bogeyman for why their market bets have gone wrong. The fed is buying to hold, and will turn around next day or hour or second or millisecond or picosecond, to put the bond on the market again.

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