First week of June 2010 will be an interesting one and it will set the direction of June trading per say. With investors being extra careful about their losses, even a small drop in the price of a stock will probably cause heavy selling across the board. Be watchful of the market and GLTA

May witnessed worst selling frenzy in the stock market. Everyone is very skeptical of what lies ahead. I cannot stress enough on the fact that this is a perfect opportunity to make 20-30% profit within few weeks if you play your cards carefully. I am including 5 tips for small investors to use in volatile markets like this

Month of May 2010 so far has proven to be very depressing for usual investors. European debit crisis coupled with several other worldwide events such as BP oil spill, China’s announcement regarding potential pullback in European bonds, tension between North and South Korea, are taking a major toll on the market currently. Euro is trading at 4 year low level and DOW traded under 10,000 market after February.

Cash is an important position to keep in your portfolio. I usually maintain 20% cash. That helps me take advantage of last minute buying based on news and in sudden market crash etc. Given the age of automatic trading, cash becomes even more important. Everyone has stop sell orders set and if market starts to go down, all these orders trigger, and you can buy in bulk and be up 10-20% immediately.

Google finance has turned into a spam portal, which has nothing but useless advertisements by same people on a daily basis. Yahoo finance on the other hand is much better quality with actual discussions happening.

Third week of May 2010 was nerve breaking for lot of beginners. Seasoned investors on the other hand realize bear markets are the perfect time to invest as you can find several stocks whose prices are less than 10% from where they are supposed to be. Over the last several bears, I have realized that fact and was sure to cash-in the rare opportunity!