Sri Lanka stocks recover on foreign buying, hopes of falling rate

COLOMBO, June 10 (Reuters) - Sri Lankan shares recovered on Monday from a three-week closing low hit in the previous session, gaining for the first time in six sessions on foreign buying in blue chips and hopes of interest rates falling further after the central bank comments.

The island nation's central bank head on Friday said the monetary authority is to issue guidelines to direct banks to cut lending rates and narrow the gap with the inflation rate, after it kept the key policy rates unchanged.

"Expectations of market interest rates falling further boosted sentiment," a stockbroker told on condition of anonymity. "We expect the market lending rates to fall from this week despite the central bank holding the rates flat."

The main stock index rose 0.54 percent, or 33.85 points, to 6,341.28, edging up from its lowest close since May 16.

Foreign investors were net buyers of shares for a 22nd straight session. The bourse saw a net foreign inflow of 357.6 million rupees ($2.83 million), extending the year-to-date inflows to 15.96 billion rupees.

They accounted for around 56.92 percent of the day's turnover of 825.9 million rupees, less than this year's daily average of 1.04 billion rupees.

Shares in conglomerate John Keells Holdings rose 2.94 percent to 272.80 rupees.

The rupee ended weaker at 126.55/60 per dollar from Friday's close of 126.45/50 on demand for greenbacks from importers, dealers said.

($1 = 126.3500 Sri Lanka rupees)

(Reporting by Ranga Sirilal and Shihar Aneez; Editing by Subhranshu Sahu)

http://www.reuters.com/article/2013/06/10/markets-srilanka-idUSL3N0EM1ZT20130610

Quote for the day

"The third-rate mind is only happy when it is thinking with the majority. The second-rate mind is only happy when it is thinking with the minority. The first-rate mind is only happy when it is thinking." - A. A. Milne

10-Jun-2013 CSE Trade Summary

Crossings - 10/06/2013 and Top 10 Contributors to Change ASPI

Following Stocks Reached New Low on 10/06/2013

Quote for the day

“As traders, we cannot afford the luxury of wishing and hoping because it puts us in a passive relationship with the markets. When we wish and hope, we are shifting responsibility onto the markets for making something happen instead of confronting the conditions and doing something about it ourselves. If we find ourselves wishing and hoping, it is an excellent indication that we don't know what is going on and as a result need to get out of the markets until we do.”- Mark Douglas

11 Steps in Developing a Successful ‘Trading Business Plan’

Every successful trader must have a written ‘Trading Business Plan’ in order to keep disciplined and focused.

Developing a thorough ‘Trading Business Plan’ will help guide your trading. This outline is for those of you who are trading or investing for yourself; those of you who are trading other peoples’ money (maybe a hedge fund, etc.) will need something much more elaborate than this. Please make no mistake about it though…this is VERY IMPORTANT in order for you to become a successful long-term trader or investor.

Alright, the 11 steps below are a brief outline for what needs to be incorporated into your overall ‘Trading Business Plan’:

01. You must have a Mission Statement. What’s your real motivation behind your trading?

02. You must spell out your trading/investing Goals and Objectives. You cannot get from A to B very easily unless you truly know where B is.

03. You must spell out your Trading/Investing Beliefs and Market Beliefs. Please remember this very important statement, “You cannot trade the market. You can only trade your beliefs about the market.” Therefore, it’s a very good idea to identify your beliefs about the market first.

04. Spell out your exact Trading Strategies. How do you go about analyzing the market and what are the key things you look at in your market analysis? What trade set-ups do you use before entry? What are your timing signals for market entry? What is your catastrophe stop loss? Where and when will you take profits? Will you use a trailing stop? Will you scale into the market? What exactly is your trade management system once you’re into the trade?

05. What are your Position Sizing Strategies? This is part of money management and is very important in reaching your trading goals and objectives in terms of profitability.

06. What are your typical Psychological Problems in following your trading plan? What is your plan for psychological management for dealing with these problems?

07. What are your Daily Trading Procedures? What should you be doing on a daily basis, not only to become organized, but to become methodical in everything you do as a trader, on a day-to-day basis.

08. Do you have an Education Plan to Help Improve Yourself on a continuing basis? If not, you should have one. Like anything else in life, you need to be continually working on yourself to become better and better.

09. What is your Disaster Plan? What can go wrong, and how will you deal with each item?

10. What is your Planned Income and Budget for Trading Expenses? This is pretty simple and straightforward; write down everything you can think of and try to be as realistic as possible.

11. How do you Prevent Trading Mistakes and Avoid Repeating Them… if they occur ? Really sit back and think about this and write down any and all mistakes that you might make during your trading. Once you do that, come up with a solution to each potential mistake that you might make so you don’t allow that to happen.

Having a ‘Trading Business Plan’ of this nature is so very important that I rank it among the top requirements for all traders and investors to complete and have. If you don’t already have one similar to this, I highly suggest you start developing such a plan. I can guarantee that you will become a much better and more prepared trader.
By Todd Mitchell
http://tradingconceptsinc.com

Quote for the day

"Intelligence and good market analysis can certainly contribute to success, but they aren’t the defining factors that separate the consistent winners from everyone else." - Mark Douglas

2013 Country Stock Market Returns

Below is a look at the year-to-date stock market performance of 77 countries around the world. Of the 77 countries shown, the average 2013 performance is +7.11%. Fifty-seven of the 77 countries are in the green for the year, 19 are down and one is flat.

As shown, Dubai is up the most in 2013 with a gain of 49.25%. Nigeria ranks second with a gain of 40.91%, followed by Abu Dhabi in third at 36.81%. While it has fallen off a cliff recently, Japan remains the best performing country of the G7 so far this year with a gain of 23.88%. The US ranks 2nd of the G7 with a gain of 14.91%, followed by the UK (8.72%) and Germany (8.44%). France is 5th out of 7 with a gain of 6.36%, while Italy ranks 6th at just +2.57. Canada has been the worst performing G7 country so far this year with a decline of 0.42%.

The BRICs have been extremely weak so far this year. India is doing the best of the bunch with a gain of 0.01%, while Brazil and Russia are the second and third worst performing countries on the entire list. Only Peru has been worse this year with a decline of 22.63%.
http://www.bespokeinvest.com