Posts

When is the right time to sell your stock

With reference to investing, buying is a science but selling is an art. We will not go too specifically into the nuances of income statements and balance sheets but focus on some broad ideas to sell. We shall look at five such ideas with specific reference to the Indian context. Let us look at when to sell stocks? Sell stocks when your target is reached This is the primary rule for traders and an important rule for investors. If you are a trader then the focus must always be on churning your capital. A smart trader respects the stop losses and the profit targets as that discipline is the key to sustainable trading. Once the target is reached, then there should not be a rethink. Also, once the stock is sold, avoid looking at the notional gains you missed. While trading is understandable, what about investments, especially when you have taken a long term view on the stock? Check if the triggers still exist and whether there is a justification to revisit the targets. Alternatively, you c
Post a Comment
Read more

Options As A Trading Tool

Options As  A Trading Tool Options are financial instruments used for hedging against adverse price movements in the underlying asset class like index, stock or forex. However they're widely used as instruments for speculation by traders all over the world. The total turnover of options is far higher than the actual turnover of the underlying which reinstates the importance and popularity of the options . Options trading can be very rewarding if done properly and with right risk management . You will find hundreds of articles on the technicalities and terminologies of options on the internet. In this article I will try to focus on the positive sides of options rather than providing definitions of terms like calls, puts, strike price, moneyness etc. If you want to learn them simply google or you can check out my YouTube channel https://tinyurl.com/tradetogether for video on option basics. Why will I trade options: 1. Options can be bought with almost one tenth of margin req
Post a Comment
Read more

How to pick a stock?

Image
After knowing what stock market is and reading about successful investers and there journey, you also finally decided to enter the stock market. You open your demat and trading account with broker and ready to make your first investment, you look for the company to invest in. There are around 5000 companies listed on National Stock exchange (NSE) and around 3000 companies on Bombay Stock exchange (BSE) Now the main question arises, which company should you invest your money into? Which company will give you good returns? How to select a good company which can give you good returns? Remember buying a stock of company make you part owner of that company, it means that you are buying a company. So before selecting the stock to invest, first understand about the company you want to invest in , know about its business model and it's history. To analyse about the company you want to invest your money into , one has to look at few parameters before coming to conclusion. T
Post a Comment
Read more

Why market is falling?

Everyone in the market has the same question that what is happening, why is share market going down and how much more will it go down ? Nifty in last two weeks has fallen 1000 points after making high of 12000 to 11000, Why this happened? Well I will tell you here why it happened and what should you do in this situation. It all started after the SEBI announcement of tighthens the regulation of mutual funds. Earlier mutual funds such as large cap mutual funds use to invest in mid and small caps to get high gains, people who where the invester in such mutual funds use to think there money is safe in large cap but mutual fund manager to get good profit use to take risk and invest in mid and small cap companies. Due to this valuation of mid cap and small cap stock was high , and after the announcement of SEBI, mutual fund manager where forced to sell the mid cap and small cap stocks, and invest there money in large cap stock which leads to increase in price of large cap companies.
Post a Comment
Read more

How do people get rich from stock market?

Image
In 1930, During the great depression, there was a family who was struggling with their lives and after so many efforts one of the family member (father), failed to get hired at the family grocery store. Without a job, and without any money after a run on the banks, the family of four ran up a tab of grocery bills at the store to put food on the table, and even then, his mother sometimes skipped meals. Among the family, there was a little boy who was very depressed to see his family’s situation. Somehow times passed and the family gradually achieved a financial health which was worth to live. Father started a small stock brokerage firm. Young boy started showing an aptitude for numbers. He became obsessed with timing everything, calculating odds, even tallying the frequency of the letters that appeared in the bible most frequently. The only constant thing that the boy had was ‘I just don’t want to be poor’ For money, he started collecting Coke bottles to make some money by selli
Post a Comment
Read more

Basic Concept of the Stock Market

Investing in the stock market is among the most common ways investors attempt to grow their money, but it's also among the riskier investment options available. Understanding the basic concept of the stock market is a first step in becoming an informed investor. While the stock market is an extremely complex system, its basic traits are much more simple. OWNERSHIP The most basic concept of the stock market is the idea that each share of stock represents a small portion of ownership of a corporation. While most businesses are founded by small groups of people, when a company "goes public" its owners decide to sell shares of stock and, in turn, receive cash from buyers. A company may have thousands of investors, but each one has the right to profit from the company's success and each runs the risk of losing money if the company performs poorly. Stockholders receive updates from the company and can vote for board members to influence the business's activities.
Post a Comment
Read more

INVESTMENT AT YOUNG AGE

Image
I will tell you how to become rich. Close the doors. Be fearful when others are greedy. Be greedy when others are fearful." - Warren Buffett This is the simple way to become to rich given by man having net worth of 83.3 billion us dollars, he started investing at age of 11 and when asked about right age to start he said he was 11 years late to start investing. So it is very clear form this statement of mr Buffett why investing at young age is important. It is important to note that saving money at young age to invest isn't easy, but you simply can't afford to wait until it is convenient. Simply start by making small investment and give them time to mature, let's compounding do it's magic. Investing in share market at young age is the best decision one can make, you can start with as low as 500-1000 ruppes and then when you have gained enough experience you can invest more money Why is investment necessary? It is necessary to beat "Inflation" w
Post a Comment
Read more