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आपको महामारी के दौरान बचत करनी चाहिए या निवेश करना चाहिए?

2020-05-09T08:00:00.000-07:00

आपको महामारी के दौरान बचत करनी चाहिए या निवेश करना चाहिए?

महत्वपूर्ण बिंदु:
• पैसा बचाना इस समय की जरूरत है׀

• शेयर बाज़ार में निवेश करने से आप लम्बे समय का फायदा उठा पाएंगे।

• हम दुनिया की सबसे बड़ी ग्लोबल मंदी के दौर से गुजर रहे है, परन्तु यह समय जल्द ही गुजर जाएगा।

• लॉकडाउन के दौरान आप बचत और निवेश के बारे में कैसे सीख सकते है?

• क्या यह शेयर बाज़ार में निवेश करने का सही समय है?

जैसे कि हम लॉकडाउन के तहत अपने-अपने घरों में बैठे है, दुनिया को एक महामारी से जूझते और लड़ते हुए देख रहे है, ग्लोबल दुनिया की अर्थव्यवस्था और शेयर बाज़ार भी भीषण सफलता को प्राप्त कर रहे है׀

पिछले कुछ महीनों में बाज़ार ने नये नीचले स्तरों को छुआ है׀

जैसे जितने ज्यादा राष्ट्र इस बीमारी का सामना करने कि कोशिश कर रहे है, इससे विश्व की अर्थव्यवस्था का भविष्य बहुत ही अनिश्चित और अस्थिर है׀

इन सब बातों को ध्यान में रखते हुए, एक आवश्यक प्रश्न है जो इन हालातों में हम सबके दिमाग में आता है- क्या हमें इस महामारी के दौरान बचत करनी चाहिए या निवेश करना चाहिए?

तो, वर्तमान स्थिति को देखते हुए, हमें क्या करना चाहिए?

क्या होगा यदि हम इस महामारी के दौरान निवेश करे?

बार- बार हर समय, भारत ने दुनिया की सबसे बड़ी ग्लोबल मंदी का सामना किया है और इससे उबरा भी है׀

अब, जैसे कि हम इसके जैसी एक और स्थिति का सामना कर रहे है, हमें यह भी ध्यान में रखना चाहिए की यह समय भी निकल जाएगा׀

इसके साथ ही, बाज़ार में किसी भी प्रकार के निवेश से पहले, हमें बाज़ार की वर्तमान अस्थिरता को भी ध्यान में रखना होगा׀

दुनिया भर के बाज़ार इस महामारी के परिणामों का सामना करने के लिए मजबूर है जब तक कि भारत और कुछ अन्य देश आशाजनक लाभ नहीं दिखा देते׀

इसके अलावा, कुछ क्षेत्र ऐसे भी है जो इस महामारी के बाद नुकसान झेलेंगे या लाभ कमाएँगे׀

क्या हो यदि हम इस महामारी के दौरान बचत करें?

यह देखते हुए कि हम सभी एक संकट का सामना कर रहे है, इस समय पैसे की बचत करना सबसे अच्छा होगा- फिर चाहे वो आपूर्तियों के लिए हो, हॉस्पिटल के बिल के लिए या फिर हमारी सामान्य जरूरतों के लिए हो׀

जैसा की हमने पहले भी बताया है, कि किसी भी प्रकार के निवेश के लिए निर्णय लेना ठीक नहीं होगा वो भी जब आप अच्छे रिटर्न और धन-सृजन (बचत) की उम्मीद कर रहे है׀

हममें से बहुत से लोग शेयर बाज़ार को छोड़कर अपने पैसे को विभिन्न बचत योजनाओं में डाल सकते है, लेकिन यह बहुत अधिक लाभ नहीं देगा׀

अर्थव्यवस्था में इस तरह कि गिरावट से, सरकार ने इस योजनाओं में ब्याज दरें घटा कर बचत को निराश किया है׀

इसीलिए, इस समय, यदि आप अपने पूरे धन को आपातकालीन स्थिति के लिए रखे तो बहुत ही अच्छा होगा׀

जैसा कि हम उपर दर्शाए गए बातों से देख सकते है, यह बात साफ़ है कि बाज़ार कि स्थिति निवेश करने के लिए जरा मुश्किल है׀

बाज़ार की यह स्थिति में यह समय सीखने और आत्मनिरिक्षण करने का है, न कि सीधे लाभ कमाने के लिए निवेश करने का׀

यदि आप एसआईपी के द्वारा बाज़ार में निवेश करते है, आपको उन्हें होल्ड पर नहीं रखना चाहिए, लेकिन यदि आपको और लिक्विड एसेट कि आवश्यकता है तो किसी भी बड़े निवेश के निर्णय को समझदारी से ध्यानपूर्वक लेने कि आवश्यकता है या हो सके तो ऐसे निर्णय लेने से बचे׀

भले ही हम अपने घरों में सुरक्षित रह रहे है, लेकिन हम इस बात को झुटला नहीं सकते की हम सभी इस समय बहुत बुरी आपातकाल स्थिति में रह रहे है׀

कोई फर्क नहीं पड़ता कि स्थिति कैसी है, पैसे की बचत ने हमेशा हमारे बुरे समय में हमें सहारा ही दिया है׀ और लम्बे समय में, निवेश हमेशा किसी भी महामारी कि स्थिति से उबरने में सहायता ही करेगा׀

7 Ratio to Check Before Investing in BANKS

2020-05-09T04:39:00.000-07:00

7 Important Ratio to Check Before Investing in Banks

Key points

• Analyzing Ratios helps in knowing how the bank has been performing.

• Gross NPAs are the total of all loan assets that are classified as Non-performing assets as per RBI guidelines.

• Net NPAs are those types of NPAs in which the bank has deducted the provision regarding NPAs.

• A credit to deposit ratio is the ratio of how much a bank lends out of the deposit it has mobilized.

• Return on Assets Ratio is the net profit generated by the bank on its Total Assets. It helps to know-how management is using its assets to generate more income.
Investing in Banks requires a careful analysis of financial data.

This is generally done by examining the profit and loss account, balance sheet and cash flow statement but this can be a time-consuming process.

So how easy would it be for you if you could find a short cut solution for the same?
Analyzing Ratios helps in knowing how the bank has been performing and also makes easier for investors to compare it with other banks within the same industry.

1. Gross Non-Performing Assets (NPAs) :- Gross NPAs are the total of all loan assets that are classified as Non-performing assets as per RBI guideline. It shows how much of a bank’s loans are in danger of not being repaid.
If interest is not received for 90 days, a loan turns into NPA.
Gross NPA reflects the quality of the loans made by the bank. A very high gross NPA Ratio means the bank’s asset quality is in a very poor shape.

2. Net Non-Performing Assets (NPA) :- Net NPAs are those types of NPAs in which the bank has deducted the provision regarding NPAs. (Net NPAs is Gross NPAs – Provisions). Net NPA is a better indicator of the health of the bank. It shows the actual burden of the bank.
A higher level of NPA increases the amount of provision thereby impacting the profitability of the bank. It also impacts the Net interest margin of the bank.

3. CASA Ratio:- CASA stands for Current Account and Saving Account.
Different kinds of deposits like current account, saving account and term deposits forms the major source of funds for banks. CASA deposit is generally a cheap source of fund for banks if its high.
Higher CASA Ratio helps the bank in improving net interest margin as these deposits come with an Interest payment which is negligible for Banks.
The Current account does not attract any Interest Burden but term deposits come with a higher interest burden compared to Savings Account Deposit.
A low CASA Ratio suggests that the bank is not efficient, as it has to pay higher rates on more expensive types of deposits, which can hurt its Net interest margins.

4. Credit to Deposit Ratio:- A credit to deposit ratio is the ratio of how much a bank lends out of the deposit it has mobilized. It helps in assessing a bank’s liquidity and indicates its health.
Ideal Credit to Deposit Ratio is between 80%-90%.
This means that the Bank is lending this percent from the Total deposits that it has. Lending is the main business of the bank so this ratio should be high.
If the ratio is too low, it means the bank may not be earning as much as they should be. If the ratio is too high, it means that the bank might not have enough liquidity to cover any unforeseen fund requirements, which may affect capital adequacy and asset-liability mismatch.

5. Net Interest Margin:- Net Interest margin is a measure of the difference between the interest income generated by the bank on loans and the amount of interest paid out to their lenders on savings accounts and deposits, relative to the amount of their Interest earning assets.
NIMs will be higher for the bank with higher low-cost deposits (CASA) or high lending rates.
If the non-performing assets (NPAs) of the bank are rising, the interest earned would fall and NIM will decline. Low NIM and High NPA is a bad combination for the bank.

6. Return on Assets:- Return on Assets Ratio is the net profit generated by the bank on its Total Assets. It helps to know-how management is using its assets to generate more income.
The higher the portion of average earnings assets, the better would be the resulting returns on total assets.
A low or declining Return on Assets ratio means that the bank is not able to utilize its assets efficiently.

7. Capital Adequacy Ratio:- Capital Adequacy Ratio is the ratio of a bank’s Total capital (tier 1 + tier 2) in relation to its risk-weighted assets.
It is decided by the central banks and bank regulators to prevent commercial banks from taking excess leverage and becoming insolvent in the process.
Under Basel III, a bank’s tier 1 and tier 2 capital must be at least 8% of its risk-weighted assets. The minimum capital adequacy ratio (including the capital conservation buffer) is 10.5%.
Minimum capital adequacy ratio ensures that bank has enough cushion to absorb a reasonable amount of losses before they become insolvent and consequently lose depositors fund. A high CAR means that the bank is safe.
These are the ratios that can help you to know which bank is weak and is not worthwhile investing.

The Stock Market Cycle: 4 Stages That Every Trader Should Know!

2020-04-14T20:41:00.002-07:00

Stages in the Stock Market Cycle

The movement of prices in the stock market can often seem random and hard to follow. Prices may go up on certain days, and down on others. To an average person, these shifts are often confusing and the prices can resemble a casino game.

The reality, however, is that the stock market cycles move in similar ways and go through the same phases. Once an investor understands the phases, the markets will not seem so random anymore. The trader can recognize each phase and change their style of trading accordingly. There are four phases in the stock market cycle as follows:

1. The Accumulation Phase

This phase of the stock market can apply to an individual stock or the market as a whole. As the name suggests this phase does not have a clear trend and is a period of agglomeration. The stock tends to trends at a range as traders accumulate their shares before the market ‘breaks out’. It is also known as the basing period because the accumulation phase comes after a downward trend but precedes an uptrend.

The moving average does not provide a clear indicator at this point as the market is not following a particular trend. The longer the accumulation phase the stronger the break out in the market when the stocks start to trend.

How to trade:

The accumulation phase may last a few weeks or a few months. So use this time to study the market and anticipate the right time to enter. The price range during this period is small and not particularly advantageous for day traders. It is advisable not to make large trades at this time until a market trend is confirmed. A current event in the economy can take stock out of this phase as you begin to see an uptrend. Once this accumulation phase is broken, you begin to see highs and lows in the market as we move on to the run-up phase of the market.

2. The Run-Up Phase

Just as the accumulation phase is defined by its resistance to the changes in stock prices, the run-up phase is defined by the price going above this resistance level. The breakout of the accumulation phase results in a high volume of shares as the traders who remained silent during the accumulation phase aggressively purchase stocks. As this period progresses we begin to see a trend in the prices. The highs and lows in the market attract more traders as they begin investing. This result in an upward trend as the market becomes stronger and moves on to the next phase.

How to trade:

This is the best time for a trader to make money. There is a lot of upward movement of prices which is great for momentum traders. Any downward trend during this period is not viewed as a bad thing but rather an opportunity to buy shares. When the market goes down, the shares will get bought up as the market begins to trend again. The run-up phase is best for swing or short-term traders. As this phase progresses, the volatility in the market decreases as prices move slowly every day.

3. Distribution Phase

This phase, also known as the reversal stage, is when traders who purchased stocks during the accumulation phase begin to exit the market. A prominent feature of this phase is an increase in the volume of shares but not in its price. The market is usually bullish but the demand does not exceed the supply of shares enough for the prices to increase. There are usually hard sell-offs but not enough to make the market trend downward.

How to trade:

There is a lot of volatility in the early stages as investors begin to pull out of the market which presents a good shorting opportunity as the market reaches the bottom it will bounce back with velocity. The distribution phase is identified through certain chart patterns like the head-and-shoulders top or bottom top. As the phase progresses the market starts to lose its volatility as a range begins to form. This is not the best situation for momentum traders.

4. Decline or Run-down Phase

This is the last stage of the stock market cycle and is not a favorable time for most investors. Those traders who bought stocks during the distribution phase hastily try to sell as they are underwater on their positions. However, there are few buyers to meet the sale of shares. This lack of demand drives down the prices of stocks. If there are higher lows in the market for a long period of time, it signifies that the market is headed towards the accumulation stage.

How to trade:

During this phase prices of stocks fall lower than expected so ‘don’t try to catch the falling knife’. A bear marker provides a good opportunity for long trades if the right strategies are used. It is important not to panic and sell during this period because these phases don’t last forever.

Conclusion:

Understanding each of the phases in the stock market cycle is essential to making the right decisions when it comes to buying and selling stock. A good way to study these phases it to study the past chart trends of particular stocks. You can identify certain indicators at each phase. Finally, always remember this quote by Yvan Byeajee- “Trading effectively is about assessing probabilities, not certainties.”

LEARN WHAT IS IPO AND IT'S CONCEPT

2020-04-13T06:46:00.000-07:00

Indian stock market has become one of the major investment avenues. In fact, more and more people are putting their savings in the equity market or mutual funds. The potential of returns that stock market can make is very high. This makes it the most attractive place to put the money. However, in recent years IPO market has been getting high interest from the investors. The investors are ready to put money in IPOs because the return generation in newly listed companies is very high. In addition, most of the recent listings have been outperforming. Therefore, in this article, we shall learn about What is IPO and its concept.

Meaning of Initial Public Offer (IPO)

Initial Public Offer means a private company deciding to become a public company by raising investment capital from the market. A private company goes public when it sells off its shares in the general public. In addition, any private company may go public.

Let us now learn how to invest in the IPO.

How to Invest in IPO?

There are two ways of investing in an IPO -

The first mode of applying is manually by filling the form with the broker. In fact, this is the traditional method and the applicant receives the shares in his demat account.

The second mode of applying for an IPO is online. In fact, banks provide the facility to apply for an application through ASBA facility. The procedure to apply through bank online procedure is as follows:

1. Login to your banking portal which is ASBA enabled.

2. Visit the “Investment Section” on the page and select the e- IPO section.

3. Select “Invest in IPO” and fill the application registration form. Add the DP details on the profile page.

4. Complete the verification process and select the bank account number.

5. Bank portal will take you to “Invest in IPO” screen.

6. Select the IPO and fill the form.

7. Fill the number of shares, bid price and click on “Apply Now”

Most of the banks follow the above procedure to apply for an Initial Public Offer. However, there may be little difference in the process depending on the bank.

Factors to Consider Before Applying for an IPO

There is a flurry of new IPOs in the market. In fact, more and more companies are going public. Therefore, it becomes very important to select the right company for investment. Below are the few factors that an investor must consider before applying for an Initial Public Offer.

Company Background

Before investing in an IPO, the investor must check its background. In fact, the investor must know about the functioning, nature and operations of the business. In addition, evaluation of financial statements and management decisions over past years must be considered before investing.

Future Expectations

IPO is about investing in the current business with the expectation of better future performance. Therefore, it is important to understand the future outlook of a company before investing. In fact, aspects like expansions plans, product launches, debt clearance, etc. must be considered.

Current Valuation

Before investing in an IPO of a company the valuations at which Initial Public Offer is brought requires evaluation. In fact, if the current valuation of the company exceeds the already existing companies on the stock exchange, investment should not be done and vice versa. To put it another way, the price to earnings ratio must be calculated before investing in Initial Public Offer.

Read Prospectus

The prospectus is a document that consists of all the details of the company. Therefore, before investing in the IPO one must try to read the necessary information available in the document.

Types of IPO

Fixed price and book building are the two types of IPO. The difference between the two IPOs is quite simple to understand.

1. Fixed Price Issue :

The company offers its shares at a fixed price. The investors know the share price before the firm offers shares for public. The demand from the market for the shares is out only when the issue closes. An investor has to pay the full price of the share while applying for IPO. The price per issue is set after a systematic evaluation of the company’s financial aspects. The price shows up in the printed order document which elaborates the price in light of various factors. This one is first Types of IPO.

2. Book Building Issue :

Through book building issue, the company offers only a 20% price on shares to the investors. Investors bid before the settlement of the final price. Investors declare how many shares they are buying and what amount they are ready to give out. There is no definite price. Instead, there are lowest and the highest share prices. Depending upon the bids of the investors, the final price is fixed when the bidding process closes.

Wrapping up

The number of fixed price issues is more than the book building issues. But the capital gathered from the book building issues are much more than the fixed price issues after the market price corrections. Book building issue is making a place for itself in the Indian Stock Market. It is most widely used in case of mega issues.

About Us

We are providing stock market education. We help the beginners and old investors to learn the technical charts of the stocks. In fact, by understanding the technical charts they can become successful intraday traders. In addition, the investors and traders get to understand the factors they must consider before applying in an IPO.

BEST BOOKS FOR STOCK MARKET

2020-04-13T03:58:00.001-07:00

Best books for stock market

Best pick for Investing

Investing in equity is one of the most profitable ways to build wealth over the long term.These books belong on every investor’s bookshelf. Whether you are new to investing or a longtime veteran, any of these reads can boost your investing IQ and help you reach your long-term investment goals.

1. The Intelligent Investor: A Definitive Book on Value Investing (Edition: English & Hindi )
by Benjamin Graham

If you're only going to read one book about stocks, "The Intelligent Investor" is the book to go with. Originally released in 1949 by Benjamin Graham, Warren Buffett’s college professor, this title remains the single best book on investing to ever hit the shelves.
While the book is a bit dense, its concepts help investors follow Graham’s popular “value investing” philosophy.

2. How to Make Profit in Share Market
by Mahesh Chandra Kaushik

This book is an excellent work of the famous financial advisor Mahesh Chandra Kaushik. It focuses on retail investors and provides useful suggestions for their investments. After reading this book, you will understand why some people always make money in share market while some people always lose money. If you read this book step-by-step and follow the suggestions provided herein you will never lose money in share market.

3. The Science of Stock Market Investment by Chellamuthu Kuppusamy

This comprehensive book touches upon every aspect of stock market investment. A fantastic starting point for anyone aspiring to enter into the unknown world of share market. Even for investors who are already in the market, this book can serve a guide.
This book preaches the secrets of learning and earning at the same time. It takes you through an introduction about shares, functioning of share markets, relevance of stock market indices and different approaches for primary & secondary market investments. In also talks about the real qualities of an investor and how he differs from a speculator in the marketplace. Relationship between inflation & investments and the need for achieving inflation adjusted returns are stressed upon.

4. Stock Market and Technical Analysis: Learn Basic Information About Stock Market (Hindi Edition)
by Abhijit Zingade

This book is especially written for the audience who are the beginner to the stock market. It is also applicable to the audience who are not beginner but working in market without any knowledge and making losses. This book is also designed for the audience who is trading in market by making little profit and need to revise some basic things to work more efficiently and earn more money. And finally this book is for any person who wants to make profit in market by following some disciplines.In this simple book we cover some basics of stock market.

5. Fundamental Analysis for Investors
by Raghu Palat

Fundamental analysis will help you base your investment decisions on relevant information, not tips, hunches or assumptions. Doing that will help you make solid, consistent long-term profits. Legendary modern day investors like Warren Buffet and Peter Lynch used basically this approach to amass fortunes on the stock market.
Raghu Palat's book will help you master the essentials of fundamental analysis. It clearly explains, with illustrations, all the analytical tools of economic, industry and company analysis, including ratios and cash flow. It shows you how to judge a company's management and its products, and discover what actually lies behind the figures and notes in a company's annual report.

Best Pick for Trading

1. The Richard D. Wyckoff Method of Trading in Stocks: Tape Reading And Active Trading by Richard D. Wyckoff

Richard D. Wyckoff was an extremely successful stock market trader. His technical trading strategies and techniques have withstood the tests of over 75 years of changing markets.
The Wyckoff strategies and techniques teach technical traders to read the markets and discover what and when

the professionals are buying and selling.By analyzing the price movements and related volumes, Wyckoff traders can discover when large interests are accumulating or distributing a particular stock. This allows them to take a position just before the stock is ready to move.
2. Profitable Elliott Wave Trading Strategies by Rakesh Bansal

Elliott Wave Theory is one of the most enduring — and intriguing — forms of technical analysis.The book starts with a concise introduction to Elliott Wave Theory, and an explanation of its various key building blocks. It then focusses on three proven market-tested trading strategies. Each trading strategy is explained in detail with entry, stop loss and exit rules — and illustrated with real-life examples from the Indian market. Find out:
* The key concepts of Elliott Wave Theory
* Wave Principle: Dominant and corrective trends
* What fractals are and how they simplify the recognition of the nature and count of waves
* Rules and guidelines for trading Elliott Waves
* How Fibonacci sequence and relationships help determine the likely length of waves and their retracements
* 3 market-proven trading strategies explained in detail
* Plus: 100 real-life examples, with charts, from the Indian markets.

"Elliott Wave Principle represents the most dramatic advancement in price forecasting since investors began attempting to anticipate the price movement of tulip bulbs on the Amsterdam Exchange during the seventeenth century"
3. How to Make Money in Intraday Trading by Ashwani Gujral

A master class on making money in day trading by one of India’s most famous traders, Ashwani Gujral. In his trademark blunt style and laced with wry throwaway humour, Ashwani Gujral cuts through the clutter and awe surrounding day trading, sharply zeroing in on the skills, methods and abilities which spell success in this most challenging and rewarding of endeavours. This book will equip you with the skills and temperament to make you market ready. It reveals Ashwani’s time-tested and practical day trading strategies and systems which are easy to understand and implement:
The 3Ms of trading success — method, money management and mind-set
The technical pillars — moving averages, pivots and exceptional candles
Profitable trade entry, trade management and exit tactics
How to trade the morning range, trends, gaps and sideways markets
How to add the catalyst of big news events to power your trades
How to avoid — and profit from — market traps
How to harness the explosive power of multiple trading tools working in tandem
Money management — position size and risk management
How to master your mind in order to vanquish the market
The daily discipline of a successful day trader.

Packed with more than 200 real market examples and charts, this book shows you how to approach the market every single trading day like a winner, equipped with appropriate technical expertise and supreme self-confidence.

4. How to Make Money in Trading Derivatives: An Insider's Guide
by Ashwani Gujral

This is an ideal book for those looking to earn money through trading. Ashwini Gujral shares his own expert opinion in this matter making this book the standard bearer in its category. His industry experience acts as an insider’s guide in the world of trading for those seeking to invest in it. This book extensively deals with fundamentals of successful trading and focuses on three aspects- trading psychology, charting and entry techniques and money and trade management. The book focuses on defining the technical indicators, which should be applied in various phases. Moreover, he talks about determining the scope of the current market situations. He devotes time in explaining future trading strategies like swing trading, day trading and positional trading. He also keeps us informed about the risks involved with each and therefore, the precautions that need to be taken.

5. The Ultimate Option Trading Strategy Guide by Roji Abraham

If you are a beginner to the world of options trading, this is the only book you will need to learn the basics of the game and to start earning a handsome income consistently every month.

As a beginner’s guide into the world of options trading, here's what this book contains:

1. What Stock Options are in simple terms!

2. The various types of options and the common terms used in options trading.

3. The underlying principles of options trading using easily-understandable scenarios.

4. Basic mistakes made by beginners and how to avoid them.

5. Six great strategies, with real case studies, to that teach you how to consistently make profits while controlling your risk.

WAYS TO LEARN SHARE MARKET TRADING

2020-04-10T00:10:00.000-07:00

Ways to learn online share trading as Beginners

Online share trading involves buying and selling of stocks through online platform. Using the online share trading account, you may buy or sell share stocks, mutual funds, bonds, and other securities easily, without the need of intermediate broker or agent.

Online Share Trading for Beginners

Share trading can be profitable if investors know the fundamentals of trade. The best way for a beginner to succeed in the share market is research. Research the best stockbroker who charges a low commission and yet provides the best services in terms of user-friendly interface, customer service, etc. Also, research your stock picks before placing a buy/sell order. Look at a company’s EPS, financial statements like P&L accounts, profit margins, future growth plans, etc. before investing in their shares. In the beginning, avoid highly volatile types of instruments, like futures and options. Another helpful tip while trading in the share market is discipline. Set your desired profit and stop-loss margins. Stop trading when you’ve reached these margins. It helps you to limit your loss as well as prevents you from being too greedy.

13 Great ways to Learn Share Trading

Stock market is not a difficult subject to understand as you may think and anyone can learn how to trade stocks. Learning stock trading can feel overwhelming, but if you take it one step at a time it is quite accessible and could end up being very rewarding. So here are 13 ways you can learn stock trading.

1. Open a demat and trading account:
Hands on experience in the stock market will give you a better idea. Open demat and trading account and begin investing in a small way. Gradually increase the percentage of money allotted to investments. Try investing in different assets and gradually you will become an expert in investing and trading. Demat and trading account can be opened online easily without any difficulties.

2.Get started and learn the basics

The good news is you don’t need to start spending money to get a basic knowledge of stocks and investing. Some wonderful free resources are available.

3. Read the best trading books

Books provide a wealth of information and are inexpensive compared to the costs of classes, seminars, and educational DVDs sold across the web. See my list of few stock trading books. One of my personal favorites is Profitable short term trading strategies by Rakesh Bansal.

4. Discover your style of trading

Before you start buying your first stock, you have to make an important decision: what trading style will you adopt? Usually, this will be a factor of several things: your personality, the funds you have, your appetite for risk, your expected returns, your resistance to stress and the time you are willing to devote to trading.

Scalping

The most extreme form of trading, with trades that last from a few seconds to a few minutes. The idea is to accumulate micro-profits, until they add up to significant gains. It is definitely a stressful trading style, challenging and usually reserved to experienced traders. You need to be able to make split second decisions, without hesitation, and in a repeated manner. Scalping requires you to remain focused for long hours. I would not recommend it as a trading style for beginners, however if you want to give it a try, This trading style is quite appropriate for impatient people;

Day Trading

Trades are held anywhere from a few minutes to a couple of hours. The main principle is that you hold no overnight position, so day trading is appropriate for people who want to avoid the stress of keeping open positions. Often presented as an easy way to get rich, a lot of day traders are severely impacted by the importance of transaction costs so if this is the style your elect be careful to choose a competitive broker with low spreads;

Swing Trading

Swing trades are usually held for several days, so this is a style for patient people, who can let a trade unfold over several days. This kind of trading requires larger stop losses, to become a swing trader you need to be able to manage trades that go into negative territory for some time. It is however one of the styles most recommended for aspiring traders;

Positional Trading

This type of trading consists in holding stocks from a few days to several years. Usually position trades are taken based on fundamental analysis, contrary to “shorter” trading styles who rely quite a lot on technical analysis. You need to be very patient, to stick to your strategy and not be too influenced by general opinion or news events.

5. Start trading with a demo account (also called paper trading)

Getting started on a Live account can be risky, especially if you‘re still learning, uneasy with order entry and trade management, or simply not decided on your trading style.

6. Read articles on Stock Trading

Quite a vast amount of literature is regularly produced on stock trading, however regular articles stand out in terms of quality, usually from a few websites. Bloomberg is one of them, with daily articles and news on all types of assets in their Markets section.

7. Buy an online trading course

Once you have given yourself a basic education around stocks, there is a possibility that you’ll want to take things a step further. Online courses can provide you more advanced techniques, and Udemy is a wonderful platform for that.

8. Use free Stock Chart Platforms and Screeners
A great way to find trade ideas and plan your trades, or just analyze the market, is to use some online charting platforms. A great option is Finviz.com with its famous free stock screener.

9. Attend a trading seminar
Trading seminars are a great way to exchange first hand with top-notch traders or other like-minded investors. You can also get insights on things that are not that easy to convey in online courses: trading psychology, real life examples, track records.

10. Emulate the greatest traders
Learning from the greatest traders is both inspiring and thought provoking. I suggest you learn from some of the world’s most outstanding stock traders.

11.Follow stock market news
Staying in tune with the market is important if you’re a day trader. Breaking news events on a stock can trigger big moves, so it’s likely you’ll need to stay put.

12.Subscribe to investment newsletters
There’s a good number of newsletters available for stock pickers. They can provide you with lots of trade ideas.

13. Monitor & Analyse the market
Always keep yourself updated with stock market news. Analyse the past trends and learn the pattern in which share market functions. Stock market is affected by political, economic and global factors. Look at the way the market reacted to each and every event.

The most commonly used terms of the share market.

1. Stock: Stock is the basic ownership unit of a company; also referred to as share or equity.

2. Stock Market: This is the market in which shares of publicly held companies are issued and traded through exchanges.

3. Volatility: Volatility is the degree of variation of a trading price series over time, as measured by the standard deviation of returns. Simply put, the fluctation of a stock or the market in general is referred to as volatality.

4. Liquidity: Liquidity is how easily you can buy or sell a stock ; convert it into cash.

5. Dividend: The part of the company’s profits, which is usually distributed to company’s shareholders, periodically.

6. Bull Market: A bull market is a market condition that means stock prices are expected to rise.

7. Bear Market: A bear market is a market condition where stock prices are expected to fall.

8. Stock Splits: Stock Splits increase the number of shares outstanding, by reducing the face value per share of the company’s stock. Stock split is done to infuse liquidity and to make shares affordable for various investors who could not buy the shares of that company before due to high prices.

HOW TO MULTIPLY YOUR MONEY IN STOCK MARKET

2020-04-06T03:17:00.000-07:00

How to Multiply your money in Stock Market

In the world of the stock market, every investor comes with the dream of making huge profits. If only earning profits in the stock market would have been as easy as it looks, then there are many people who perceive that making an investment in the stock market would help them to get out of all their financial problems and all people will generate easy income by investing.

However, the fact is totally different from this.!! Fact is that by doing investment with willing to double their money, they are only brightening their chance of incurring further losses. The idea of doubling the money seems exciting but the duration set for it is more unrealistic.
For those who are prepared to invest in the market, there is essential advice for read these books

A stock is an investment, not a lottery ticket.

To make your money increase by double in the stock market is an inaccessible reality. It is not even easy to earn a profit in the stock market. Making your money double in the stock market is very hard and it requires a long time. This entire concept of making your money double in the stock market is very hypothetical in nature and that is true because success, in whichever field does not come easily.

If you want to double your money from the stock market, first you need to learn the stock market and understand its behavior. Remember one thing that not all the successful traders in the stock market gets rich within few days. It takes time, patience and discipline.

Is it really Possible to Double your money from the stock market?

Successful Investing is about managing your RISK, Not avoiding it. Many of the investors are still skeptical about investing in the stock market. Most of them find it too risky, thus they don’t even consider learning about it.

Well, most of you have a question in your mind that – “Is it possible to make money in the stock market?”. And the answer is YES…! 100% it is possible.

If you have taken a risk in life and ready to take a risk then you are at the right place. There are two ways from which you can double your money in the stock market.

No.1: Gambling and

No.2: First Learn then earn (Trading)

No.1: First option is the easiest and riskiest method where you can easily earn or wash your whole capital at a moment. Because in this method most of the traders depend on the luck and they have only hope to make money.

No.2: the Second Option is the best way to make profits from your investments. The first step to walk on this way is to learn about the stock market and how to trade? Then you can apply your strategies to trade. with the discipline and continuation in the following your strategy, you can enjoy a huge amount of profit.

With this second option, you can enjoy more than 100% return on your investment – with proven strategy, discipline, and patience. So, the doubling may take longer time by trading. But you need to believe in yourself.

Don’t just enter into the stock market, if you think about “huge profits” with the minimum time period. Remember one thing that without making efforts, you cannot earn anything. The only thing that overcomes hard luck is hard work.

Ways to Learn Share Market

2020-04-02T09:26:00.001-07:00

Best ways to learn share market as a beginners

Investment in the share market is risky but it can be turn out to be profitable if it is done in proper method. If you are beginner in the stock market, the very important first step is to understand the basics, how stock market works, types of stocks, and the do’s and don’ts of stock market. The information given below in this blog will be helpful for you to start investing in the stock market.

What are stocks?

A stock is a type of security that signifies the state of ownership in a corporation and claim on the respective part of corporation’s earnings and assets. Corporation issue stock to raise fund to run their business. Stocks are bought and sold on stock exchanges, though there can be private sales as well.

Type of Stocks

There main types of stock: Common and preferred.

1. Common Stock: It is a security that represents ownership of shareholders in a corporation. Shareholders having this type of shares have the right to elect board of directors, which represent them and decide how the profits would be utilized. In case of company goes bankrupt, the shareholders of common stock do not receive their money until the preferred shareholders and creditors have received their respective share of the leftover assets.

2. Preferred share: The shareholders of this type of security receive a specific dividend at predefined intervals. One of the advantages of owning this type of share is dividend paid to shareholder of preferred share is generally before the dividends are paid to the shareholder of common stock.

How do the stocks work?

In a company, if the ownership is divided in to 500 parts, the profit and loss will also be divided in to 500 parts. Later on, it can be decided whether the profit is to be reinvested in the business or a part of them is to be shared among the shareholders. In case of any owner decide to sell his share of ownership, and the corporation is very large, it can come out with an IPO (Initial Public Offering) where the shares are sold to public directly in the primary market. After the completion of IPO, the shares get listed on the stock exchanges, from where people can buy and sell shares. The movement of stock depends on the demand and supply concept. It also depends on the company’s management, future prospects and growth.

Beginner’s guide to investment in the stock market:

The following guide (Do’s and Don’ts) can help you to start investing in stock market as a beginner.

Do’s:

Prefer market intermediaries who are registered with stock exchanges.
Make sure that you have very clear communication with broker, agent and intermediary.
Before you start investing, read all offer and risk disclosure and documents.
Get proper knowledge of right trading techniques, technical analysis, risk assessment.
Strictly work with discipline, Risk Management Techniques.
Before investing in the stock, always do proper research and analysis.
Learn to control greed and emotions.

Don’ts:

Do not believe in News, Media reports and speculations, specially avoid speculation for day trading.
Avoid investing in Penny stocks.
Don’t deal with brokers, sub-brokers who are not registered with SEBI and stock exchanges.
Do not sign/agree into consideration any documents without reading and understanding of terms and conditions.

Don’t trade without getting proper knowledge of technical analysis especially when you want to trade in derivative market.

Read Books

Books and articles are great source of information. There are numbers of book and articles related to stock market, available online and offline. Books are the great source of knowledge and information. Which helps you to get education of stock market.

Books in Hindi

1. Share market guide by Sudha Shrimali (Hindi)

2. The Intelligent Investor by Benjamin Graham ( Hindi Edition: 2020)

3. Technical Analysis aur Candlestick ki pehchan by Ravi Patel

Books in English

1. Investonomy by Pranjal Kamra

2. The Intelligent Investor by Benjamin Graham

3. How to Avoid Loss and Earn consistently in Stock Market by Prasenjit Paul

How to open Demat Account in Zerodha

2020-03-29T04:49:00.000-07:00

# What is Zerodha?
Zerodha is largest Discount broker in India. It was established in 2010 in Bangalore and by now the company has a presence in multiple Indian cities.

Over 2+ millions clients of Zerodha are satisfied by its powerful ecosystem of investment platforms, and customer support system.

To open a Zerodha trading and Demat Account signup here now
Zerodha Demat Account

Different products of Zerodha
Zerodha offers different products and services such as software and mobile applications. The details information of products is given below

KITE

Our ultra-fast flagship trading platform with streaming market data, advanced charts, an elegant UI, and more. Enjoy the Kite experience seamlessly on your Android and iOS devices.

CONSOLE

The central dashboard for your Zerodha account. Gain insights into your trades and investments with in-depth reports and visualisations.

COIN

Buy direct mutual funds online, commission-free, delivered directly to your Demat account. Enjoy the investment experience on your Android and iOS devices.

VARSITY

An easy to grasp, collection of stock market lessons with in-depth coverage and illustrations. Content is broken down into bite-size cards to help you learn on the go.

SENTINEL

Create powerful market alerts on the cloud for stocks, futures and options, and more for free.

How to invest in Stock Market for beginners and experts

2020-03-28T00:06:00.000-07:00

Best Tips to Invest in Indian Stock Market – Trading and investing in the stock market is nothing less than an art. High returns in the stock market always lure the investors. Investing in the stock market requires a lot of researching and analysis. Therefore, if you are new or a beginner in the stock market the dilemma regarding investing in the stock market shall definitely exist. In this article, we shall understand how to invest in stock market for beginners.

Many beginners think that stock market is a magic box that will give a lot of money. However, this is not the real picture. Stock market holds the potential to make any person rich but it does not guarantee that. Thus, it becomes more important for beginners to invest the correct way in the stock market.

Below are few points that will help in knowing how to invest in stock market for beginners.

Avoid What Others are Doing

The beginners often taking buying decision under the influence of neighbours, relatives or known person. To put it other way, the beginners invest in stocks in which everybody is investing. This approach is wrong in the long run. The beginners should avoid investing in stock having the herd mentality.

Invest After Researching

The beginners should do proper research on the company and its current valuations before investing. They should not fall for the name of the company but consider its fundamentals in the long run. Therefore, the investor must learn to analyse the company before investing.

Invest in Business of Understanding

The beginners must invest in the business of their understanding. Any beginner must research and analyse only that company or sector that interests him. To put it another way, the beginners must know that they are not investing in a stock, they are investing in the business model.

Diversify Your Portfolio

Any beginner in the stock market must diversify the portfolio. The returns in the stock market can be optimized if the investor diversifies the portfolio. The level of diversification depends on the risk-taking capacity of the beginner.

Control Emotions

The beginners must learn to keep a check on emotions in the stock market. They should know that stock market is not quick wealth making machine. The ups and downs will come. In fact, they must learn to keep holding their stocks for the long run. In addition, rather than burning the fingers by taking a wrong decision during the panic in the market, it is prudent to hold the stocks.

Do Not Time Markets

No one in the stock market can rightly predict its direction. In fact, it is not right to take a position in the stock by trying to time the market. In addition, while timing the market more people have lost money rather than making the money. Thus, the decision of a beginner in the stock market should never be on the basis of an attempt to time the market.

Understanding Basics of Stock Market

2020-03-26T15:50:00.001-07:00

What Is the Stock Market and How Does It Work?

Investors buy and sell stock and other investments through the stock market.

The stock market is where investors connect to buy and sell investments — most commonly, stocks, which are shares of ownership in a public company.

Definition: What is the stock market?
The term “stock market” often refers to one of the major stock market indexes, such as the Sensex or Nifty50. Because it’s hard to track every single stock, these indexes include a section of the stock market and their performance is viewed as representative of the entire market.

You might see a news headline that says the stock market has moved lower, or that the stock market closed up or down for the day. Most often, this means stock market indexes have moved up or down, meaning the stocks within the index have either gained or lost value as a whole. Investors who buy and sell stocks hope to turn a profit through this movement in stock prices.

How does the stock market work?
The concept behind how the stock market works is pretty simple. Operating much like an auction house, the stock market enables buyers and sellers to negotiate prices and make trades.

The stock market works through a network of exchanges — you may have heard of the New York Stock Exchange or the Nasdaq. Companies list shares of their stock on an exchange through a process called an initial public offering, or IPO. Investors purchase those shares, which allows the company to raise money to grow its business. Investors can then buy and sell these stocks among themselves, and the exchange tracks the supply and demand of each listed stock.

That supply and demand help determine the price for each security, or the levels at which stock market participants — investors and traders — are willing to buy or sell. Computer algorithms generally do most of those calculations.

Buyers offer a “bid,” or the highest amount they’re willing to pay, which is usually lower than the amount sellers “ask” for in exchange. This difference is called the bid-ask spread. For a trade to occur, a buyer needs to increase his price or a seller needs to decrease hers.

What is NSE & NIFTY?
The National Stock Exchange of India ltd (NSE) is an Indian Stock Exchange located at Mumbai, Maharashtra India. It was established in 1992 and promoted by leading financial institutions on request of the government of India. It provides investors with access to asset classes like equities, debts and derivatives as well as currencies and mutual fund units.
NIFTY is the benchmark index of NSE known as NIFTY50.
Nifty50 comprises of top 50 and largest most actively traded stocks on NSE. Nifty50 is nothing but the calculated weighted average of the performance of 50 companies from various sectors. The base period for the Nifty index is November 03, 1995. The base value of the index has been set at 1000, with a base capital of Rs2.06 lakh cr.

What is BSE & SENSEX?

BSE (Bombay Stock Exchange) was founded in 1875 and is the oldest stock exchange in Asia.
BSE lists close to 6000 companies, it has helped develop the country's capital markets, including the retail debt markets, and helped grow the Indian corporate sectors. In 1995 the BSE switched from an open floor to an electronic trading system.

The BSE's overall performance is measured by the SENSEX.
SENSEX is a combination of Sensitive and Index, it was introduced in 1986. It is the benchmark index of BSE and consists of 30 companies that are listed on BSE.

Small cap Mid cap & Large cap stocks

Small-cap is a term used to distinguish companies with relatively small market capitalization. A company’s market capitalization is the market value of its outstanding shares. In India, normally a company below market capitalization of Rs.5000 crores is classified as a small-cap company.
Mid-cap company is a company with a market capitalization above Rs.5000 crores and less than Rs.20000 crores are viewed as a midcap company.
Large-cap refers to a company with a market capitalization value of more than Rs.20,000 crores is recognized as Large-cap companies. Large-cap is a reduced version of the term large market capitalization.