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Showing posts from April, 2020

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?

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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?

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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?

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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?

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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

What are the best ways to make consistent profit in intraday trading?

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What are the best ways to make consistent profit in intraday trading? Is it possible to be consistently profitable in intraday trading? Now that sounds too simplistic but you need to understand that intraday trading is less about risk taking ability and skill and a lot more about how you manage your risk. In intraday trading, you start with the premise that you need to protect your capital and then start trading. To consistently make profits in intraday trading over a longer period of time, you need to start off with simple things like documentation, setting limits and managing risks. Here are the 10 steps to focus on. Have you created your trading rule book and if not, then start the process right away. The trading rule book basically lays down all the rules and regulations for your intraday trading. This includes questions like - the loss you are willing to take, the capital depletion you can afford, preferred risk-reward ratio etc. It is your trading constitution

Why do people prefer intraday trading instead of holding it for a week or two and sell it?

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Why do people prefer intraday trading instead of holding it for a week or two and sell it? Intraday trading always looks attractive to newcomers or to those who have less capital.  Intraday trading is like T20 Cricket,  which is still favorite amongst traders. As we like T20 most and Test cricket least because of timing, the same thing applies in the market as well. There are a few common reasons behind that which I am mentioning here: Intraday Margin:  All brokers provide intraday exposures to clients for intraday, which is the most common reason for attraction. Suppose if you have 50,000 balance in your account, you will get ten times to 20 times the exposure for intraday, which looks lucrative to traders because they don't have to spend huge capital for a trade of 5 lac or 10 lac. No Overnight Risk:  This is another common reason because many traders think that I don't want to take an overnight risk. I don't know what will happen tomorrow, s

What is the best method to trade nifty futures?

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What is the best method to trade nifty futures? How to Trade Nifty Futures is in continuation to what is Nifty 50 Index (Nifty) & How to Trade Nifty? which guide the beginners to understand all about Nifty Index,its constituents and how to trade or invest in Nifty? So,for those interested in trading nifty futures should learn & understand more about what is nifty and its future contract requirements & features. Nifty Futures Liquidity:- CNX Nifty futures contracts provide adequate liquidity for active day traders, hedge funds and longer-term traders, although volume can vary significantly from day to day. The Bank Nifty is also active enough for most short- and long-term traders, although once again volume can vary significantly from day to day. Day traders will need to pick which days are best to trade, while longer-term traders aren’t likely to face significant liquidity issues. The Nifty MidCap 50 usually does very little if any volume

Why did Facebook choose Reliance Jio as a partner in India?

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Why did Facebook choose Reliance Jio as a partner in India? Facebook recently invested heavily in India..for a huge amount of $ 5.7 billions it purchased good stake of 9.99% in the Reliance Jio..now coming to your question here are some key points which is why Facebook has chosen Reliance Jio.. 1 Reliance Jio is the biggest Telecom sector company both by revenue and number of subscribers an hence it was quite ideal company to invest in. 2 Both Facebook and Jio have almost equal number of subscribers close to 400 millions each and thus make it a huge subscriber base for both to do their business and earn more. 3 Like Facebook.. Jio too has great interest in technology and thus making them ideal partnership. 4 Also both of these companies have common aspirations like becoming top companies in their respective businesses and thinking out of the box..further made Facebook to consider Jio as partner. So we can see from above that why it was only Reliance Jio f

How is the RBI handling the great lockdown?

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How is the RBI handling the great lockdown? The Reserve Bank of India is the key bank or the central bank of India it is the issuer of the Currency in India as well as the chief regulator of all the banks in India…not only this but it has huge wok portfolio including balancing and safeguarding of the economy…Now as we are amidst the most difficult time of this century…as the pandemic called as Covid-19..has disrupted not only the human lives.. but also the economy of the nation and as RBI being the chief bank has enormous amount of responsibilities to tackle the situation.. specially during the current lock down conditions.. And here are some key actions that have been taken by the RBI with the consultation of Central Government…to tackle this menace.. 1- RBI has available cheaper cash for the lenders and also encouraged banks to lend it to the needy sectors… actually RBI was quite alerted and it started to work on these things even before lockdown was announce