Genuine Analyst
With the various changes /wild swings of the market that have taken  from last Oct when there was a P notes issue ,then the huge fall in January and then the market going into a Bear market and to add to the injuries that last three weeks of continuous downfall most of the layman investors and the traders must have lost  money and not little money but lots of money … one of the news channels was even showing that one of the four patients that go to the psychiatrist is depressed because of the share market The so called analysts have most of the time not been able to read things and in spite of charging healthy service fee have not been able to save the clients and the sad part is when the client loses money [ Big money ]  and every time most of them say we will help you recover but hardly anytime makes any attempt

No analyst can be 100 % perfect and that’s understood and acceptable  but if one can have a average of above 70-80 % accuracy even then the job is well done but things are reverse … My experiences with lots of the analyst

1.They have a big echo problem to accept that even they can be wrong and when they go they blame the market …. Very funny explanations given of why their calls went wrong   bottome line will be they will be blaming the market  … a easy way to get away

2.When they charge a service they should give a basic training on how to trade ,how much to trade in each trade,pros of corns of trading in cash/stock futures ,option trading  etc but no one gives … most of them are focused on their service fee and sadly they just dnt care about the clients

3. They have to have  conscious that they are charging a service fee so the attempt should be help clients make profits ,recover losses if any …. The basic thumb rule each the analyst  needs to have to help protect capital  and at the right opportunity help making profits  but hardly anyone sincerely follows this

4. 9 out of 10 times most of this analyst say we will help you recover losses but no one cares ,the client is left in the desert with no water

Clients need to understand rather than looking for quick Money or Free tip options better to get associated with genuine analyst who trades himself in his trade ,is interested in his clients capital protection and has help making profits

Till the middle of next year /end of next year its going to be more of trading market and even if we invest we need to understand/ learn when to enter and when to exit and both of this has to be done with proper guidance ,if done with guidance the lost money can also be recovered and more money can be made

FOLLOW ONE BASIC RULE – TRADE WITH STOPLOSS AND TRADE /INVEST ONLY 20 % of the total capital that you have and of course trade/invest under guidance.

Thanks to Mr.Chetan Tanna

Capital Adequacy Ratio, CAR, or CRAR: It is ratio of capital fund to risk weighted assets expressed in percentage terms.

Non-performing Assets (NPA) Ratio: NPAs refer to the loans given by a bank that it classified as doubtful. This means that the bank has low or no hopes of recovering money on these loans. Lower the NPA that much better it is.

A non performing asset or a loan is when the interest and/or installment of principal on it has remained ‘past due’ or unpaid — for more than 90 days

Statutory Liquidity Ratio (SLR): This is the minimum amount of reserves (held in cash, gold, short term securities and other liquid assets) a bank must maintain during all times, after all it’s investments and lending.

The SLR for Indian banks is normally 25 per cent of the capital. For example, if a bank has Rs 100 with it, before it gives away all of it, it has to maintain at least Rs 25. This helps in case depositors want to withdraw money, or for liquidity purposes.

The ratios can be checked on the balance sheets of banks which can be checked at http://www.nseindia.com

Deposits up to Rs 1 lakh are insured.

Deposits up to Rs 1 lakh is insured under the government’s Deposit Insurance and Credit Guarantee Corporation (DICGC). As per this scheme, even if you keep multiple deposits (savings and fixed deposits) across branches of one bank, only a total of Rs 1 lakh is insured. So it is prudent to have your deposits divided between two to three banks if you want to insure your total money and get maximum coverage.

Stay away from banks that offer you a comparatively higher interest rate on FDs than other banks. This is known as ‘adverse selection’ in banking terms. “A bank would offer higher rates only because they need funds,” So be cautious with your money and do not be greedy.

In order to know which banks are insured check the below mentioned link.

http://www.dicgc.org.in/beta02/comm.htm

Trading rules and strategies always help an Investor as well as nonprofessional to trade effectively and are in profits rather than being in losses. Intraday trading requires lot of skill and patience which every individual needs to have otherwise profits can turn into losses. Here are some Intraday Techniques that would be useful to everyone. 

* Divide your trading capital into five equal risk segments: If you want to trade in five stocks then divide your capital in five equal parts and make sure that you stick to it. Never break your own rule.
* Use a two-step order process: If you have a tip of buy above a particular level then it is safe to assume that below that level, it can be a good sell and you need to have your own stop loss but trading with the trend of the market always helps.
* Don’t overtrade: If you make a loss, in particular scrip then do not trade in that scrip again, instead go to next, do only five trades in a day and not more than that.
* Never let a profit turn into a loss: When you make profit then exit rather than waiting for the target to hit since markets have become very volatile, So it is always advisable to book profits wherever you can so that you don’t turn a profit making trade into a loss making one.
* Trade with the trend: If you see the trend of the market is up then go long with a Stoploss and If the trend is down then Short at higher levels with a stop loss.
* If you don’t know what’s going on, don’t do anything: If you don’t understand the trend of the market then sit out for a day, It is always better to sit out and not trade rather than trading and making a loss.
* Tips make you money: Tips make you money provided the provider of the tips and the person who is using those tips are on same understanding.
* Use the right order to get into the markets: Always important to know the trend of the stock whether it needs to be bought or needs to be shorted.
* Don’t be whimsical about closing out your trades: Don’t be in a hurry to book profits if you know the trend for the whole day is down and not volatile.
* Withdraw a portion of your profits: Always book 50% Profit on first target and Increase the stop loss so that in worst-case scenario also you do not lose money.
* Don’t buy a stock only to obtain a dividend: Do not buy a stock because you will get dividend, but buy it because of its strong fundamentals.

Inspite of knowing many things in trading people still commit mistakes, whether they are done unknowingly or because of the fear and the mindset, which they have, needs to be known. Here are some common mistakes, which many traders do.

1. Many traders trade without a plan. They do not define specific risk and profit objectives before trading. Even if they establish a plan, they do not stick to it, which results into loss.

2. Many traders do not realize the news they hear and read is factored by market, so it is not advisable to take decisions by sitting in front of TV and watching news along with analyst’s views proves risky while trading.

3. after several profitable trades, many speculators become wild and aggressive. Which is unwarranted and not wise to do in any intraday trade?

 4. Traders often try to carry too big a position with margin amount and that proves suicidal when market goes against the trend which was expected which results in huge losses.

5. Some traders try to “beat the market” by day trading, nervous scalping, and getting greedy. However, they forget that market is always one-step ahead of everything and human mind cannot beat it.

6. They fail to pre-define risk, add to a losing position, and fail to use stoploss thinking that they know everything but that again results into losses.

7. They frequently have a directional bias; for example, always wanting to be long but it is not good you have to be short also sometimes when the trend is other way around otherwise it will result into loss.

8. Lack of experience in the market causes many traders to become emotionally and/or financially committed to one trade, and unwilling or unable to take a loss. They may be unable to admit they have made a mistake, or they look at the market on too short a period. It is always advisable to learn from your mistakes and move ahead rather than being stubborn and making losses.

9. Overtrade is another thing which many indulge into when they make loss in one trade, Which is never advisable as it might be one of the bad days, So always a person should not do more than 5 trades per day by dividing his capital equally in all the scrips.

10. Many traders do not want to take the small losses. In addition, often stick with a loser until it really hurts, then take the loss. This is an undisciplined approach…a trader needs to develop and stick with a system

Stock market is a game of outsmarting and competing with all the traders, Investors, and analysts who are there, it is a game where every second influences in deciding whether you are gainer or loser. It is a game of chess where every move that you make today influences your finances and life. So are you the smart one who is ready to win a game of chess? If yes then market is for you otherwise stay away and do not burn your hands. It is not a game for those who cannot devote time or those who do not understand the basics. Here are some pointers, which would be useful in picking fundamentally strong stocks for a period of five years.

Companies that have Market cap more than Rs 250 crores.

10% YOY growth for past 3 years in net sales.
10% YOY growth for past 3 years in net profit.
Profits or sales should not have decreased in previous two quarters.

Operating Profit margin should have grown steadily in last two years

Operating Cash Flow should have been flowing in last 3 years.
Other important ratios are Return on Equity, EPS, Cash EPS, and PE.

“Credit bubbles are created during euphoria and busts during financial turmoil.” Well it sounds good but then why are they created first and who is responsible for it? The answer is we common people, we are the one’s who over emphasize things when the going is good and vice-versa. Nevertheless, the ultimate sufferer of these bubbles is the common person who loses all his savings and loses trusts.

Using plastic cards by American consumers and reducing interest rates in times of financial turmoil was the reason for this situation then who will save emerging economies who are impacted and to safeguard their economies they have started reducing interest rates, What will be it’s impact on the economy in the long run? People have lost faith, Banks don’t want to lend, defaults have not yet started in India but if the situation don’t improve then it won’t be too long before a bubble bursts in India as most of the middle and lower middle class have started using plastic cards and living a lavish life.

It is high time for all of us to understand our own financial position and time to play safe rather than having a lavish life, It’s time to save and cautious. If things do not improve in few months then many job cuts and distress will be seen which will have an impact that could take years and years to redeem confidence.

If Singh is King was a good movie then Cash is king won’t be the wrong title either in the present scenario of market condition, As analyst’s say that Invest for long term and you will make good money but see the last one year and people have lost money by staying long term? Therefore, is staying long term wrong or Being prudent and booking profits consistently right.

Well I would say that being prudent and booking profits on every rise is the mantra for consistent profits and building wealth, it is not bad to be long but then booking profits is also important. Take an example of the food items and consumables which you store in have in your house or for that matter thinking about fresh air or planting water, In all these things changing is important then why people don’t apply the same rule to market and their portfolios?

Portfolio churning and booking profits is as important as watering your plants, Wealth creation is an art and it can be created by proper planning, It is not that people are born rich they all know how to take that calculated risk and grow money on consistent basis.

Is it right to blame FII’s for pulling out their money? Well the answer is no because when the market does well then it’s the FII’s who buy and when they buy an euphoria is created, So does that mean that their buying and selling determines the market sentiment? Well it will not be wrong to say that because when FII’s buy lot of foreign inflows start coming into India, thus rupee becomes stronger, and people start talking of cheap valuations and start buying.

The problem with common trader or Investor is that they don’t take decision on their own, their decision and thoughts are determined on someone else’s opinions and views, When the market is up people tend to forget the basics which proves to be fatal during a market fall. Today there is so many outcries about FII’s selling and liquidating their stocks and that’s the reason why market is falling and every analyst want to have a ban on short selling. But have they ever thought that FII’s are not the only ones who are selling, But there are small investors also who realize that to make money in a falling market you have to short, So what’s the point in crying over FII’s.

Ultimately, everything depends on which side you are whether you are a buyer or seller, Also lot depends on your awareness about the news flows that impact. The problem with most of the Investors is that many don’t have time to think and many don’t understand the basics, All they want is quick money and come with wrong notion that market is a place to make quick money which is right provided you know what to do otherwise it can result in wealth erosion. So stop blaming FII’s for the fall of market and start thinking yourself as to who is responsible, I am sure you will find a appropriate answer.

Gap up opening of 200-250 points on Nifty is expected after US NASDAQ up +11.81% & Dow Jones up +11.08 – The S&P 500 posted up +11.58% – which was the  largest percent gain in past 69-years. Following the queues Asia was not left behind and markets rallying there also. Another positive development that took place late last night was a tie up between two rivals in the aviation industry i.e. of Jet Airways and Kingfisher Airlines.

Stocks to watchout today would be in Banking space, Oil exploration, Telecom and Information Technology space. Market is anticipating another rate cut from RBI which if happens will trigger a rally. It is advisable to exit from long positions on every rally.

Rocking Performance: ICICIBANK 380to450,

PUNJLLOYD 198to222.

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