  We present a study of the X-ray transient and black hole candidate XTE
J1650-500 during its 2001/2002 outburst. The source made two state transitions
between the hard and soft states, at luminosity levels that differed by a
factor of ~5-10. The first transition, between hard and soft, lasted for ~30
days and showed two parts; one part in which the spectral properties evolve
smoothly away from the hard state and another that we identify as the 'steep
power law state'. The two parts showed different behavior of the Fe K emission
line and QPO frequencies. The second transition, from soft to hard, lasted only
\~15 days and showed no evidence of the presence of the 'steep power law
state'. Comparing observations from the early rise and the decay of the
outburst, we conclude that the source can be in the hard state in a range of
more 10^4 in luminosity. We briefly discuss the state transitions in the
framework of a two-flow model.
