Posts

3 Ways to Invest in Commodities in India stock market concept

Image
Invest in Commodities in India Recently, the price of crude oil went negative due to very low oil demand because of coronavirus. This very low price of crude oil aroused interest in many traders and investors to invest in crude oil. Not only just crude almost every commodity be it natural gas, copper, aluminium, etc are also trading at very low prices. In this post we will discuss 3 ways to invest in commodities in India. #1. Buy directly from MCX All you need is a commodity trading account, which almost every broker offers. Once you have activated the commodity trading account you can directly buy crude oil and also other commodities as well through your broker. The drawback here is that commodities are traded in derivative form, which means you can trade in them through futures and options contract, which have an expiry date. So this is more of a trading product and not an investment product as you can’t hold it for long without rollover. Just recently, since US

Why do 95% of people lose money in the stock market?

Why do 95% of people lose money in the stock market? Actually it is true that 95% of people are losing money in the stock market. But what are those mistakes they do while trading in the stock market and lose capital? Here are some highlights of those mistakes: Not Understanding Market Trends People always lose money because they never understand the market trends or with which trend they should begin the trade. Letting Emotions Guide Decision-Making Emotions like fear and greed should never control your investment and trading. Greediness and fear both can spoil your trading pattern and portfolio too. Wonder to Getting Rich Quick Some traders and investors lose money in the stock market because they think stock market is a money-making machine. With this mentality to become a millionaire in a day or two, no one can get returns in the stock market, instead, they lose money. Lack of discipline in trading There is no boss for you in the stock market that doe

What are some good intraday trading strategies?

What are some good intraday trading strategies? What are the intraday trading tips for beginners? Intraday trading tips, basic rules and strategies: Below are the  Intraday   Trading Tips for beginners :- Breakout : Intraday trading runs mostly on intraday chart patterns. One should follow basic technical while doing intraday trading. If any stock is breaking it’s resistance, you can enter in buy position with appropriate stoploss, same way if any stock is breaking its support, you can sell it with appropriate stoploss. Stoploss can be pivot point or its previous close. Calculating Pivot Points:  It is also called point of rotation. To calculate pivot points you can use previous day’s high + low + closing price divide by 3. You can calculate resistance and support levels after finding pivot points. First resistance is 2*P-Low.Second Resistance is P+ (R1-S1). First support is 2*P-High. Second Support is P-(R1-S1). Basics indicators and charts have to be followed for In

Is the market out of the woods? If so, what can we expect?

Image
Is the market out of the woods? If so, what can we expect? Nope…the stock markets are still not out of the woods…the main reasons for this are… 1 country wide lockdown is still prevailing. 2 Although government has provided some relief to particular sectors like information technology and such related work… to start functioning..but still majority of economic sectors are not functional. 3 Specific sectors like tourism and hospitality have been totally destroyed due to this lockdown caused by Covid-19..and there is very less chances of their speedy recovery. 4 Although banking sector is functional.. but NBFC sector is still not functional..which is hurting this sector very badly. 5 As majority of non essential commodities production is halted …like footwear, clothing etc it also will have a negative impact on such sectors.. 6 Along with all this this lockdown has also caused a great hit to the MSME sector which is also the biggest employment provider in th

Do you also believe that long-term investors make more money than day traders? Why and how?

Image
Do you also believe that long-term investors make more money than day traders? Why and how? There are a number of highly successful long-term investors. The likes of Warren Buffett and Charlie Munger instantly spring to mind. They have generally returned around 20% per annum over their investment careers. While this level of return is unlikely to make any investor rich in the short run, when compounded over a long period it can lead to significant returns. For example, over a 30-year time period it could propel an initial sum of money around 237 times higher. As such, even modest sums could become seven-figure portfolios. Of course, most investors may be unable to deliver returns which are as high as 20% per annum over a 30-year time period. However, even returns which are in line with those of the wider index could end up turning a small portfolio into a large one in the long run. For example, returns of 8% per annum over the course of three decades would equate to an end

What is the total wealth of Mukesh Ambani after the Facebook investment in Jio?

Image
What is the total wealth of Mukesh Ambani after the Facebook investment in Jio? RIL or the Reliance Industries Ltd…has been one the biggest and most successful indian conglomerate…since from its inception under the guidance of Dhirubhai Ambani company had a great vision of becoming the top company of India…but it was.. Mukesh Ambani under whose guidance and supervision this vision had been converted into reality. Now coming to your question…as recently a major deal with Facebook (a whopping $5.7 billions) had really set the ideal growth environment for RIL..and because of this .. Mukesh Ambani has been also rewarded quite wealthy…as After the Reliance Jio-Facebook deal was announced recently, Mukesh Ambani's wealth surged to make him Asia's richest man surpassing Jack Ma. Ambani's fortune rose by $4.69 billion to $49.2 billion after the deal…and it's still on the rise.

What is the biggest lesson you have learned as a stock investor?

Image
What is the biggest lesson you have learned as a stock investor? I must confessed that I have a sceptical attitude and reservation before I started investing in the stock market. In addition to substantial risks or volatility, stock market investing is exclusively for expert business people. It must be daunting as it requires extensive financial knowledge and experience. However, the truth is even an ordinary person like you and me can participate in the stock market. What makes the difference? Simple. Two years ago, I put my money in SBI. Today, instead of keeping the money in the bank, I bought stocks from SBI. I am now a shareholder of the company. This is the difference. I must say stock market investing is a great learning experience. So, let me share with you what I have learned from my personal investment journey in the stock market. If you have been investing for long, I’m sure you can add some on the list. 1. Be patient When you see a lot of reds