Trading And Investment

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...

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 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 ...

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...

After every day or two a news comes in related to North Korea and market reacts sharply to it. The latest news came yesterday as North Korea confirmed that it tested a nuclear bomb which created earthquake of magnitude 6.3. US already warned North Korea not to do all these stuffs related to nuclear tests but all the warning has been neglected by the other side. Kim Jong- un is not listening to any one and he continues to do what he want to do. He is also even threatening to US and probably he is ready for a nuclear war. Donald Trump reacted to this test and is trying to find a way how to counter this without getting involved in a war. He asked to stop all trade with any country doing business with North Korea. Probably Trump is hinting towards China which is the lone country who supports North Korea behind the curtains. US along with his allies called for an emergency meeting on Monday to discuss about all options available. The fear of a war cannot be ruled out and if this happens...

Share market is a place where everyone joins it to make profit and several of them end up in losses.There are many reasons due to which loss happens in market.Market is nothing but it is just the predictions,one who predicts well fetches the result in profit on the another hand one whose predictions are wrong end up in losses.Many of the losses occurs due to greediness and emotions.Some of the losses becomes huge because of not placing SL. There can be several other factors like getting suggestion from wrong advisors or brokers.Many of them loose because they want to make money in free of cost calls but forget this fact that nothing in this world comes free of cost.Poison which kills human being also require money to be purchased. There are two kind of risk associated in the market: 1.Systematic Risk 2.Unsystematic Risk Systematic risk is uncontrollable and Unsystematic risk in controllable.So with every trade there is always a risk involved there is nothing in this market which i...

Trading and Investment are two different things done in market. Investment is done for creating wealth by accumulating different stocks in your portfolio for a long term view.Investment can be diversified in different stocks to balance one’s portfolio.There is no any rule of selecting no. of stocks for one portfolio and there can be n number of stocks in one portfolio but having many shares may create difficulties in tracking portfolio.So a limited number of stocks should be there may be around 15.The portfolio should be diversified in different segment of market and also it should be reviewed on every quarter basis.Remember there is no any need to track your portfolio stocks on daily basis otherwise it will create panic in your mind.The selection of stocks should be only done on the basis of fundamental analysis.Entry and exit in a particular stock can also be tracked with the help of technical analysis. Trading on the another hand is done for making some money in short term or...