Why FIIs are BUYING?

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This is the second part of a two part article asking if the nervousness of the stock market is overblown and necessary. This article addresses the factors that go into finding a good quality stock.

The article discusses the stock market, why it goes up and down, and ways you can relieve your fears. The article mentions with common sense and a little bit of homework, how to improve your chances of making money with your investments.

The double top pattern is a reversal pattern that is used to help predict the tops of a market. It normally appears after a long bullish trend.

The stock market is a really nice place to invest your hard-earned money. Provided you know all the ropes. The Stock Market is no place for the tender-hearted and the weak-kneed.

E*Trade Financial (ETFC) is the only major discount broker to get hit with substantial sub-prime related losses. Last summer (2007) E*Trade was trading in the low to mid $20 range, and when their sub-prime mortgage exposure was reported, the downward slide ensued.

Paper trading is trading with a fake account. You can place trades just like a normal account but the wins and losses you experience in a paper trading account does not hurt or help you financially. This is something all traders should use before putting any real money into the market.

Buy stocks online and learn what buying stocks and trading is all about without spending lots of cash from the beginning. In reality you literally own part of a company that you decide to buy stocks in and you could make that company a success with the capital amount that you are willing to invest.

Stocks with lower P/E are not necessarily bargains. They could frequently be the most dangerous ones you could buy. Understand what P/E is, how is it calculated and how do you identify a bargain?

Understand investments when you put in your hard earned money in it. Many times we are tempted to forgo research and we depend on arm chair advice from others. This advice may not be appropriate. When you buy a stock that is widely followed, you may see short term growth, but when interest in the stock wanes, the prices may drop. These are ten things one must look into while making any stock purchase.

Oscillators are indicators that you can put on your chart that use mathematical formulas to try and find the best time to buy and sell a given security. It is a good idea to combine these with other indicators.