Trading And Investment

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How to become a successful Trader?

If you want to succeed and grow as a trader what you have to do is to learn from your mistakes. The first time when you commit an error which costs you money will be counted as mistake but if you have done this again it means you are stubborn, if you make a mistake for the third time you are foolish. One can be active in market for a decade but if he/she repeat the same fault again and again then it is like a new trader every time. Your growth as a trader will only happen if you learn from your mistake and stop doing the wrong things and start doing the right things. Few important points which can help one grow as a trader:- 1. Try to find your own strategy to trade, it can be influenced by your fellow trader but you can’t copy anyone’s style of trading. If you don’t have any plan for trading and you are trading randomly then it is gambling and it all depends on your luck. 2. If you have got your trading system then you have completed your first step. You have to follow it with discip...

Plan Your Retirement Now

We always talk about our challenges of old age and seems bothered about it but within a fraction of seconds we forget it. The most probable reason why we forget it is because in our childhood we had not been taught about money. Most of us has an extreme emotional quotient and always seems to be dependent on our next generation and we justify it as well. As the time are passing by dependency on next generation seems a bad option. It doesn’t mean that there should not be any expectations but we also has to keep in mind that expectations is the seed by which tree of dissatisfaction grows. According to World Bank report life expectancy in India is about 69 years, although average life expectancy seems to be in between 70-80 years. Most of the people works till 60 and there are many working after 60 also. If we assume 20 years post retirement that will be a balance assumption. Living a life with same standard of living along with various other expenses needs to be planned. We generally ...

A view on Automobile Sector

India's automobile industry is an industry which has steadily increased and the money invested in the shares of the companies of this industry has increased manifold. As we take the example of Maruti Suzuki or Bosch Limited or TVs Motors or even Hero Moto Corp. One of the biggest reasons for the increase in automobile sector is the increase in spending capacity of the people. Today you will definitely see a motorcycle in any home. Motorcycle cycle is one of the basic necessity of today's time. If I talked about some major changes, then banning of BS-3 vehicles was a major change. At the time the Supreme Court ordered this, all the companies had sold their vehicles at a discounted price. Prolonged pressure in crude oil prices was also a major reason for the growth of the automobile industry, because the pressure on crude oil prices is considered good for tyre companies. Another change is in taxation, which is GST, it was a change that made the sector even stronger, contrib...

Impact of festive season on trading

Stock market trading is driven by only two factors fear and greed. Trading is a pure speculation of the price in a very short span of time. One has to be a master in this art and should follow strict rules to remain profitable. India is a country of festivals, almost every month there is some festival being celebrated in some part of the country. But there are several festival which is celebrated in larger part of the country like Holi, Diwali, and Durga puja. All these seasons sees a drop in numbers of retail traders. Indian market is largely driven by FIIs and one of the major festival for them is Christmas clubbed with New Year celebration. So around this time market liquidity gets reduced and volatility in market also sees a drop. One thing which can not be ruled out is that before the starting of every festive season we can expect a profit booking approach from Institutional investors as well as from retail investors. There is a cycle which is repeated on yearly bas...

Impact Of Company's Quarterly Result On Share Price

Impact Of Company’s Quarter Result on Stock Price Quarter results of all listed companies are released as per SEBI guidelines. Due to which a very rapid fluctuations in stock prices can be seen. Sometimes a minor jump in sales figures drive the stocks in green and several times stocks fall after increasing in sales number also. It’s almost impossible to analyze the quarterly result in one go just after seeing the flash of news on TV. There are certain key things which can be analyzed in quarterly result: · Gross Sales: It’s basically a number of total sales figure. · Net Sales: From gross sales, one can derive net sales by deducting sales return, sales allowances, and sales discount from gross sales. · Operating expenses: To run a business there is a minimum base requirement of capital to operate. Basically this is the cost ...

India: Growth Slow Down (A note on GDP)

Indian economy slowed down significantly in the first quarter of FY2017, which is worst in last three years exactly the same years Modi government is in center. According to recently released data GDP expanded a weak 5.7% annually in Q1 FY 2017, which was sharply below the 6.1% increase in Q4 FY 2016. All those analyst who were forecasting a healthy growth rate now are vanished and our finance minister is accepting that this is a matter of concern. The probable reason of this slow down can be demonetization or implementation of GST. Export growth slowed notably from 10.3% in Q4 FY 2016 to 1.2% in FY 2017, the worst result since Q4 FY 2015. A strong rupee and confusion over the looming implementation of the Goods and Services Tax (GST) likely weighed on the result. There are many evidence in which suggests that firms were not sure of how to price product, with some even providing pre-GST discounts, which likely caused disruption in economic activity. Meanwhile, import growth rose to...