Generalized profit taking temporarily depresses a stock price during an upward stock trend. Traders and investors take profits in order to lock in gains on an advancing stock. A famous old saying is that you don’t have a profit on a stock until you take a profit. The temporary drop in stock price from profit taking is different from a correction in which the market analysis of a stock changes, driving the price down. In fact, investors and traders often take profits when they anticipate a correction.

Taking short term profits is the heart of day trading. The point for the day trader is to buy stock and sell stock during market fluctuations throughout the day. Someone who only does long term investing will typically only engage in profit taking after a substantial run up in a stock price and when he or she believes that the stock is ready for a large correction. Long term investors will usually stay invested during swings in stock price caused by profit taking. I Read more…

Here at NerdWallet, we’re big fans of the Starwood American Express. Because of its estimated 2.3% reward returns, we feel comfortable calling the Starwood our favorite hotel credit card. But in case you weren’t quite convinced, Starwood Preferred Guest just announced a few tasty sweeteners to incentivize travelers to climb the SPG rewards ladder. Here are the new additions to one of our old favorites:

• Gold Members receive a welcome gift upon check-in. Choose between free in-room Internet access, a complimentary beverage or a small Starpoint bonus.
• After 50 nights in a calendar year, enjoy 10 “Suite Night Rewards” for upgrading to a standard suite or premium room.
• After 75 nights in a calendar year, earn accelerated rewards at a 4-points-per-dollar base rate and gain the ability to choose your check-in time.
• After 250 eligible nights and 5 years of elite status, receive lifetime gold status.
• After 500 eligible nights and 10 years of platinum status, receive lifetime platinum status.

The new upgrades are tailored to benefit Starwood’s most loyal and frequent guests. Elevating

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The zero liability policy which has already been implemented in a few countries is still to find a place in India. There is still debate going on about the issue but RBI has alluded that it is in favor of it.

In India,credit card issuers are liable for the fraudulent transactions made from the card only when the customer has reported about it.

Banks are of the opinion that they take ample measure to make sure that the transactions made by the customer are secure. They expect the customers to be responsible enough to at least report if they have lost the card.

The spot price of a stock, stock option, or futures contracts is the current price, the price at which it can be bought or sold today. This is the price for immediate settlement, payment and delivery. In options trading the spot price is the stock price at which the stock shares sell at the time the options contract is settled. The strike price is the stock price at which the contract is settled. The difference between the spot price and the strike price is the profit or loss in the transaction, plus or minus the premium paid.

The spot price of stock shares takes into account the anticipated future value of the stock. The spot price rises and falls with stock market news of anticipated earnings, other activity in related market sectors, and technical analysis of the stock. In commodity trading a spot price of a perishable commodity is just the price today. For example, if a trader buys gold futures for December delivery and it is February the gold will not spoil over the intervening 10 months. Read more…