Flip side to forex trading is the fact that it’s not easy to make money in this market. Statistically it has been found that brokers believe ; around 90% of the traders lose, 5% end up at only break even while only 5% make a profit. It is very obvious from this that forex trading is definitely not an easy task.

There are reasons for the profits to only 5% of traders. A few of them are listed below;

1. Education: This is an essential factor that governs success and profits. Most of the 5% profitable traders learn the various aspects of trading. A lot of this learning is done through experience. It is good to have a conservative approach towards the market else it could prove you wrong. Understanding the system is also an essential factor involved.
2. Trading psychology:  A winning trader has to understand and accept the fact that every trade has an upside and a downside. There is a risk of loss involved in everything and only this psychology will prove to be a good guideline while trading.
3. Price behavior: This is one of the major aspects. Price behavior has to be understood and estimation comes with experience.
4. Money management and goal: Capital preservation should always be kept in mind while taking risks. It is important to have money in your account if you want to trade and more so ever earn profits.

Trading in the forex market it not an easy task. It is a learning process each time one trades and experience is the best way to earn profits.

There are common assumptions that people make while trading in the forex market. Some traders have an opinion that there is a holy grail of trading. Something like a magic indicator that will make them rich in a very short period of time. In reality there is no such magic indicator. It is very essential to always follow money management goal.  Whether one  has a goal of capital preservation only or capital growth along with preservation is to be accounted for while taking decisions. Not considering money management goals can cause loses and failure in trading.

Underestimation or over estimation is another important factor that should be definetly avoided.

Golden rule: Always consider a risk reward ratio while making decisions.  If you use a RR ratio of 1-2 (willing to make twice the amount risked in one trade) then you only need a system that is right around 50% to make money. If you use a RR ratio of 1-3 (willing to make three times the amount risked in one trade) then you will need a system that is right around 40% of the time to make money. So make sure to use a RR ratio below 1-1.

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There are 5 days to go for you to file your IT Returns! Avoid the rush and stress of filing on the last day i.e. July 31st, 2010 – and also avoid the potential mistakes that can be made when you file in a hurry. And if you want to tackle your return yourself, you have an online option too. The advantage of online filing is that it's convenient and user friendly exercise where you get to learn a bit about your finances too.

TaxYogi is offering a special 20% discount for my readers. Start Now to get the benefit.

Other than TaxYogi, there are a few offers from others as well.

Elagaan, rated # 1 in India by numerous TV Channels, Newspapers and other medias. They are offering a 15% discount to the readers of this blog and their friends. Please use Coupon code: RANJANTAX to avail the benefit.

TaxMunshi, which is an authorized E-Intermediary (means you don't have to upload the xml file yourself, and it's a complete filing!). TaxMunshi's offer is 20% discount and you need to use code: RanjanVarma to get the discount.

TaxMunshi Link

Trust you have already filed your taxes. If not, File IT Today!
Ranjan Varma
Blog; Website; Software

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International Stem Cell Corporation (OTCBB: ISCO), www.internationalstemcell.com, and Insight Bioventures India Private Limited (IBVI), (www.insightbioventures.in) announced on july 20^th 2010 that they have signed a letter of intent concerning funding and establishment of an Indian affiliate of ISCO (ISCO India). The goal is to establish world-class development and manufacturing operations for ISCO’s research and pharmaceutical products in India, including its Lifeline Cell Technology^® research products and human corneal tissue, CytoCor™, for treatment of corneal vision impairment and testing of chemicals.

IBVI is an experienced biomedical business facilitator with a solid network among Indian corporations, academia and government. In collaboration with Sristi Biosciences (www.sristibio.com), a full-fledged developer, manufacturer and commercial operation and the therapeutic arm of Indian bio industry leader Sri Bio (www.sribio.com), IBVI facilitated the earliest submissions and approvals of the stem cell therapy guidelines of India.

Some of IBVI’s major collaborators include ophthalmology research center and hospital, Sankara Nethralaya (www.sankaranethralaya.org), The Centre for Cellular and Molecular Biology (a federally funded institute run by the Indian government, www.ccmb.res.in), the All-India Institute for Medical Sciences (www.aiims.edu), and the Indian Council for Medical Research (www.icmr.nic.in). IBVI has established a dedicated Biofund to finance novel businesses in India.

According to Dr. Jayaraman Packirisamy, Executive Director of IBVI, “ISCO offers our investors as well as corporate and academic partners a unique combination of Lifeline marketed research products with near-term revenue potential in India, CytoCor with potential to change standard of care for the widespread corneal blindness and vision impairment in India and the rest of Asia, and an opportunity to apply our well-educated work force and industrial grade facilities to develop and manufacture these and other biomedical products cost-efficiently in India. We therefore look much forward to lead the funding and implementation of ISCO India.”

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For example, if a TDS of Rs 2,332 and education cess of Rs 68 are deducted from your April salary, Form 16 details the same. It does so for every month in the financial year. It is the final certificate issued by your employer giving details of the salary you have earned and the tax deducted on your behalf.

If you have worked in two different companies in the same financial year, then u must obtain two of Form 16 to file the IT returns.

This certificate is given to you at the end of the financial year, generally by April 30. In case there hasn’t been any TDS from your salary, you just get a salary certificate, and not the Form 16.

There are many other areas where TDS may be applicable like deducing the tax for interest earned by your Fixed Deposit in the Bank. Here bank plays the role of deducting the tax. This again is done on financial yearly basis. The form 16A is used for this purpose which has to be filled and given to the customer.

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It was late on thursday that TCS announces that they were facing a strong demand after posting a better-than-expected 21 percent rise in quarterly profit.

JPMorgan has also raised price target for India’s TCS
JPMorgan said on Friday it had raised its March 2011 price target for leading Indian outsourcer Tata Consultancy Services to 915 rupees from 850 earlier.
TCS is our top pick among the large-caps in the Indian IT sector, JPMorgan said in a note.

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The company has a long term capital requirement of 30 Crore and also require financil procurement of around 16.24 crore for construction equipment. The other requirements for funds is for setting up of maintenance and storage facilities for construction equipment for Rs 4.99 crore, setting up of a training centre for employees for Rs 5.41 crore.

The company has listed its equity shares on 16th july which were recently issued via public issue. The issue price was fixed at 240 per share which is higher of the 230-240 band.
On 16th july, the stock started trading at 272 rupees which rose to 280.35 rupees in the early hours.
The analysis shows  that the company raised 718 million rupees in the initial share sale. This is a remarkable rise of  as much as 20 percent on its  first trading day in Mumbai today. The stock seems to be a promising one.

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The content on this blog should NOT be construed as investment advice.  All information is a point of view, and is for educational and informational use only. The author accepts no liability for any interpretation of articles or comments on this blog being used for actual investments.

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Tata consultancy services is India’s largest software services provider. The remarkable rise in the net income of Tata Consultancy , has caused fluctuations in the Indian Stock market.

Tata Consultancy climbed 5.3 percent to 823.50 rupees, the biggest gain since May 26, as of 10:36 a.m. local time. The stock led gains on the Bombay Stock Exchange’s benchmark Sensitive Index, or Sensex, which was little changed.

The results helped ease the concern Infosys Technologies Ltd. triggered this week when it reported an unexpected drop in profit and pushed shares of Indian computer-services companies lower. However, gain of Tata Consultancy has come has as a hope of revival for the sector. Demand for information- technology services is strengthening in the U.S. as customers resume spending.

“We’re seeing that demand from the U.S. is very strong,” said Naushil Shah, analyst with Anand Rathi Financial Services Ltd. in Mumbai. “Normally in a downturn, the discretionary spend is what goes for a toss. That’s turning around now–they are seeing a pickup in spending, and possibly a pricing increase towards the end of the year.”

Sales in TATA consultancy that provides computer services and back office support to clients from Citigroup Inc. to General Electric Co., rose 14 percent to 82.2 billion rupees, surpassing the 80.6 billion rupee average of 36 analyst estimates compiled by Bloomberg.

The company, which derived 53 percent of its revenue from companies in North America, 16 percent from the U.K., and 11 percent from continental Europe last year, added 36 clients and won orders during the quarter from Norway’s Telenor ASA and entered into an agreement with Rolls-Royce Group Plc to set up a design and engineering services center in Bangalore.

It is being estimated that the worldwide information technology spending, which includes computer equipment and software purchases, will grow 9.3 percent this year from an estimated $1.4 trillion in 2009, according to Forrester Research, Inc. in Cambridge, Massachusetts. The U.S. will lead the growth, spending an estimated $550 billion on information technology this year.

This comes as an opportunity for the Indian IT sector and computer services sector to further make considerable level of gain. As an investor one can definitely hold on to the stocks of this sector. With the increase in the spending to invest, demand will further increase causing a price hike in the IT sector ultimately leading to gains to the company.

TATA consultancy as of now seems to be a good buy and hold stock..

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Source: bloomberg.

The content on this blog should NOT be construed as investment advice.  All information is a point of view, and is for educational and informational use only. The author accepts no liability for any interpretation of articles or comments on this blog being used for actual investments.

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The RBI ( Reserve Bank of India ) is in control of the monetary policy within the country. If the RBI increases the supply of money in the market the direct impact is observed on the interest rates which tend to fall. Here the demand for money happens to be less than the supply of money and hence the reduction in interest rates. This affects the overall economy as aggregate demand increases further causing an increase in GDP. On the other hand when the RBI reduces the supply of money in the market, the direct impact is increase in interest rates.

The RBI will review its monetary policy on the 27th of July 2010. The RBI has to consider the high input costs and rising prices of most manufactured goods while making a policy decision. All of this has added another dimension to an already worrying level of inflation in the economy.

The Rationale behind the government to take the tightening of monetary policy is as follows.

On the domestic front, the revised growth estimates by the Central Statistical Organization (CSO) for 2009-10 and for Quarter 4 of 2009-10 suggest that the recovery is consolidating.

The manufacturing sector has recorded robust growth in recent months, aided among others, by expanding exports. The strong underlying growth momentum is also evidenced by the sharp upturn in the capital goods sector, acceleration in credit growth and the widening current account deficit.
The monsoon situation so far has been decidedly better than during last year holding prospects for good agriculture growth. In its April policy review, the Reserve Bank projected real GDP growth for 2010-11 at 8 per cent with an upside bias. More recent data suggest that the upside bias has largely materialised. The growth projection will be reviewed in the First Quarter Review on July 27, 2010.
The developments on the inflation front, however, raise several concerns.Overall inflation increased to 10.2 in May 2010, up from 9.6 per cent in April 2010.

Food price inflation and consumer price inflation remain at elevated levels. More importantly, the prices of non-food manufactured goods and fuel items have accelerated in recent months.
Although entirely justified in terms of long-term fiscal and energy conservation objectives, the recent increase in fuel prices will have an immediate impact of around one percentage point on inflation, with second round effects being felt in the months ahead. Significantly, around two-thirds of inflation in the month of May 2010 was contributed by non-food items suggesting that inflation is now very much generalized and the effect of demand-side pressure is quite evident.

Measures taken by RBI to follow the monetary policy:

RBI, on an assessment of the current macroeconomic situation, has decided to take the following monetary policy measures as a part of the calibrated exit from the expansionary monetary policy:

• To increase the repo rate under the Liquidity Adjustment Facility (LAF) by 25 basis points from 5.25 per cent to 5.50 per cent with immediate effect.
(Repo rate is the interest rate paid by the banks when they borrow money from RBI)
• To increase the reverse repo rate under the LAF by 25 basis points from 3.75 per cent to 4.0 per cent with immediate effect.
(Reverse repo rate is the rate at which RBI borrows from banks)

Overall Impact.

In an already inflated economy it would be difficult to understand how the rise in the interest rates further will help. However, The following may be a possible explanation

1. The RBI engages in open market operations and tightens the monetary policy reducing the ank reserves.
2. Decrease in bank reserves leads to an increase in repo rates.
3. Other short term rates increase as well. Other interest rates in the economy increases as banks have less amount of currency to lend and consumers are still in need to funds. As supply for loanable fund decreases the equilibrium rate for loans increases.
4. Longer term rates , which are viewed as short-term rates plus a premium fr expected inflation increases aswell
5. The increase in rates makes the investment in other countries less attractive and rupee value increases.
6.The increase in interest rates will cause less business loans and hence less business expansions. As funds are costly people tend to borrow less and invest less on plant equipment , property,etc.
7. This is actually a slowing down of growth or inflationary cycle. Consumers react to the increase in the interest rates on consumer loans by reducing the purchases of goods that are typically financed such as houses,automobiles and appliances.
8. The appreciation on indian rupee makes Indian goods less attractive to foreigners.
9. In sum, the decrease in business investment, consumer purchases of durable goods,
and exports all  together tend to decrease aggregate demand                                                                       

10. The decrease in aggregate demand puts a downwards pressure on both the price level
( decreasing inflation) and GDP.

However, in practice this monetary policy may not follow and bring about the intended effects as there is a loose link between short-term interest rates and long term rates that RBI can influence.
Also monetary policy affects the economy with a significant amount of time lag. By the time an effect actually occurs the economy may have passed the phase of inflation or recession. Hopefully, This time in view, the government policy seems to be on time and we expect a reduction in price levels in the future.

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UTI Mutual Fund (UTI MF) launches the largest Investor Education Initiative called “Swatantra” for creating awareness about the concepts of financial planning and benefits of investing in mutual funds. As a part of this initiative three UTI Knowledge Caravans will travel through the length and breadth of the country for spreading financial literacy. UIT MF’s Investor Education Initiative called “Swatantra” was dedicated to the nation today in Mumbai by Shri Pranab Mukherjee, Hon’ble Finance Minister.

UTI Knowledge Caravans will travel from Porbandar, Jammu and Guwahati covering all the major towns and cities in India and will complete their journey at Kanyakumari. During the journey Investors Meets will be held in various centres for spreading financial awareness.

The Investor Education Initiative is in Partnership with Ministry of Corporate Affairs, Government of India.

Shri U K Sinha, Chairman and Managing Director, UTI Asset Management Company Ltd. said, “ ‘Swatantra’ is India’s Journey to financial freedom and is the largest investor campaign in the country which will cover over 300 cities in 100 days through 100 investor meets. Financial Education is very crucial for the growth of India’s capital market and India will progress at a faster pace if there is higher retail participation in the capital markets. This Campaign will target inculcating financial literacy to potential investors which will help them to take informed decisions.”

Shri Jaideep Bhattacharya, Chief Marketing Officer, UTI AMC said,” UTI Knowledge Caravans will travel throughout the country and will cover a total distance of over 9500 kms. The Investor Education Initiative will be conducted in 10 languages. Penetration of Mutual Funds in India is still very low. This Initiative will help in increasing investor awareness, wealth creation and will also help in creating Financial Advisors across the country.”

On the occasion, UTI Mutual Fund also entered into a tripartite agreement with Bharat Petroleum Corporation Ltd (BPCL) and Corporation Bank for providing Micro Pension initiative through UTI-Retirement Benefit Pension Fund to the Short Distance Commercial Vehicles (SDCV) Community Members of BPCL Dealers Network. The tripartite agreement was signed by Shri U K Sinha, Chairman and Managing Director, UTI AMC, Shri Ashok Sinha, Chairman and Managing Director, BPCL and Shri J M Garg, Chairman and Managing Director, Corporation Bank in the presence of the Hon’ble Finance Minister.

Members of the SDCV associated with BPCL & Corporation Bank, will contribute an amount as low as Rs.200/- every month towards UTI-Retirement Benefit Pension Fund. This initiative aims to provide the much needed social security cover for the low income group during their old age.

Hon’ble Finance Minister also presented mementos to organizations like SEWA (Ahmedabad), COMFED (Patna) and Mann Desi (Satara, Maharashtra) where the Micro Pension concept has been successfully implemented.

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