By admin | March 29, 2009 - 11:57 am - Posted in Education
Hi,
Nirav Shah is conducting a Workshop on Technical Analysis is specially designed to provide you a perfect Method and different trade setups that Technical Analysis has to offer. It initiates a person in to the field of Technical Analysis. Thus equipping him with necessary gear to battle various moods of the market and emerge as a winner.
COURSE DETAILS
Duration – 16 hrs. (2-Days)
Level - Beginner
Workshop Fees - Rs: 10,000/-
Location - Hyderabad
Course Highlights
* A unique Method to trading and Investment in stock Market
* Different tools and combinations of Technical Analysis
* Profiting in bull and bear market using various strategies
* How to apply Technical Analysis for spotting trading opportunities
* Simple Strategies which are easy to master and earn profit
* When to enter and How to enter
* How to set Stop Loss and keep trailing in order to book big profits.
Small Groups
We believe that personal attention and tutoring is the most effective way to help you understand the material and succeed. Therefore we are allowing only 8-10 persons in each workshop. We intend to provide personal attention, training and depth of knowledge which is needed to become successful traders and investors.
Limited Seats are available, so Hurry up and don’t miss this golden opportunity. For more details send an E-mail at niravshah279@gmail.com or Call@9052222016.
By admin | January 26, 2009 - 1:31 pm - Posted in Education
Hi,
Learn all about technical analysis and understand few things about investing, support, Resistances and how Bull and Bear Market works all that in a self-explainatory investment analysis lecture. Click on the below link to learn.
By admin | December 31, 2008 - 5:12 pm - Posted in Education
Time to look back and make some promises to your self that you will not commit the mistakes, which you committed last year. Here are the few things that you can do in order to plan your future and make money in the coming year.
Have a proper stoploss whenever you trade
Get into the habit of revising stoploss
Invest that much only which you can afford to lose
Make sure that risk-reward is favourable
Save money for bad times
Don’t get into the habit of taking out cash from your credit card and investing it in stock market
Don’t invest from borrowed money
Before investing all your earnings based on someone’s recommendation always see how other’s recommendations work and understand their style
Keep a track of your expenses and minimize them wherever you can
Remember that stock market is a beautiful place to money provided you are disciplined.
Above all, educate yourself.
Diversify your investments among all asset class
Be ready for unexpected emergencies and events that can create havoc in your life.
Be alert and try to keep yourself updated with regard to the events with regard to economy.
By admin | October 27, 2008 - 7:11 pm - Posted in Education
Capital Adequacy Ratio, CAR, or CRAR: It is ratio of capital fund to risk weighted assets expressed in percentage terms.
Minimum requirements of capital fund in India:
* Existing Banks 09 %
* New Private Sector Banks 10 %
* Banks undertaking Insurance business 10 %
* Local Area Banks 15%
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.
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.
By admin | October 2, 2008 - 3:49 pm - Posted in Education
Ever thought why people always complain that their credit card company has charged more than they were supposed to pay or they did not inform or that a particular company is fraud, blah blahhhhhhhhhhhhh. Well it will continue but is it the fault of the Credit card Company who is issuing the card or of that person who does not bother to go through the terms and conditions? Well it is the fault of that person.
There are many people like you and me who do not know how the interest rate on credit card is charged and when we receive the statement, we are bemused and start criticizing the company of fraud whereas it is our fault. Well here is a procedure, which will help you to understand how interest on Credit Card is charged.
X made purchases on his credit card – a Fridge for Rs. 15,000 on 01 April 08 and Shopped Clothes worth Rs. 6000 on 15th April 08 – both at an interest rate of 3.2% per month. The table below highlights how the interest rate is calculated on these purchases:
Statement date 20th April 08
Amount outstanding Rs 21000
Due date 11th May 08
Payment made on the due date Rs 5000
Balance carried forward Rs 16000
Interest rate@3.2% p.m.
a) Interest on Rs 15000 for 41 days (From 01 April to 10 May) Rs 647.01
b) Interest on Rs 6000 for 26 days (from 15 April to 10 May) Rs 164.12
c) Interest on 16000 for 10 days (from 11 May to 20 May, the next due date) Rs 168.32
Total Interest charged in 20 May statement Rs 979.45
Service Tax 12.36% on Interest rate Rs 121.06
Outstanding due in 20 May statement Rs 17100.51
Interest rate is computed on daily basis on the outstanding amount from transaction date, so it is very important for you to clear your credit card dues in timely manner otherwise your balance will keep on accumulating and the chances of you becoming a defaulter will increase.
The recent burst in US is a live example of how credit bubble is not good and how it sinks the whole economy if proper credit mechanisms are not used. In financial terminology, it is called discipline; there is no point in giving a credit card or cash to someone who does not know how to use it in the right way.
By admin | July 5, 2008 - 8:29 am - Posted in Education
In Day, trading volumes have equal importance along with price to confirm the formation of a trend or a technical pattern. With the help of volumes, we can easily understand the imbalance in the demand and supply forces of a stock.
VOLUME TOPPERS: Generally, the first hour high volume stocks will move in the same direction, higher or lower for remaining part of the day. In such stocks, it is profitable to enter into trades if the stock is moving in the direction of the market. In other words if the market is strongly moving in upward direction, it is profitable to take long position in high volume stocks which are also moving in upward direction and if the market is weak and moving in downward direction, it is profitable to take short position in high volume stocks which are also moving in downward direction. To use this technique, you should find out the first hour volume toppers and enter into trades after 10.55 a.m., Details regarding top volume stocks can be seen on both BSE and NSE Terminals. This information is also available in many web sites like money control, yahoo finance etc.
In General, heavy volumes should support rising prices. Heavy volumes confirm the up move and indicate uptrend.
In this chapter, we will discuss about how volume figures help us to take trading decisions. Price and volumes have certain characteristics, which are very general in nature. Since we know that the fluctuation in the prices of stocks are due to difference in demand and supply forces of stocks, volume figures helps us to determine whether the demand side is greater or supply side is greater for stocks at any given point of time.
If you open an online Trading Account for day trading in Geojit, Kotak Securities, India Infoline, or some other Stock Broking Company, which gives you real-time terminal facility, and subscribe to their Online Real-time Trader Terminal Facility, you can watch real time volumes in both figures and charts. With the help of this volume information, you can take profitable trading decisions in real time by clearly understanding the demand and supply forces of stocks that you are watching.
The general characteristics of price and volumes are as follows: When the price is in Uptrend, the volume of trading usually increases, when the price breakout to the upside of a formation or pattern, the volume of trading usually increases, when the price is in downtrend, the volume of trading will be usually low, when the price breakout to the downside of a formation, the volume of trading will be usually low.
PRICE AND VOLUME COMPARISON IN UPTRENDS:When the price of a stock is in uptrend, generally the volume rises, since rising price attracts more and more traders who want to get into a profitable situation.If you observe an uptrend in the price of a stock, you should not buy that stock until the uptrend is confirmed by increase of volume. If the volume increases and remains higher than average volume, you can consider that the uptrend is confirmed. On the other hand, if the start of the uptrend is not accompanied by increased volume, the uptrend may not be strong and the uptrend may not continue. PRICE AND VOLUME COMPARISON IN UPSIDE BREAKOUTS
If a price breakout took place on upside in a price pattern or formation, an increase in trading volume actually confirms that upside breakout and further price rise. The larger the increase in volume, the greater is the price rise potential signified by the breakout.
The combination of an upside price breakout and a large increase in volume represents a strong buy signal. This type of signal presents the opportunity to buy at a lower price than waiting for an uptrend to become established. The best time to buy a stock is just after it has made a high volume breakout to the upside of a bottom formation above a boundary line, trend line or a neckline. PRICE AND VOLUME COMPARISON IN DOWN TRENDS When the price of a stock goes into a downtrend, the daily trading volume usually decreases. This happens because the potential buyers lose interest in a stock when they see that its price is declining. The price of a stock can fall without a rise in volume if potential buyers loose interest. (But a rise in price is usually accompanied by higher volumes). However, higher volume can also accompany a falling stock price, this happens when all of a sudden on some rumors or some negative information when many of the stockholders decide to sell the stock.
Therefore, when a stock price goes into down trend, the volume may decrease, increase or remain the same. It is always better to sell away the stock when you see a downtrend in its price.
TIMING ANALYSIS IN DAY TRADING
In Day trading generally stock prices registers either its intra day high price or intra day low price before 11.00 a.m. In the same way generally in most cases, price breakout or price breakdown will took place after 2.00 p.m. The market will become slow in between 11.00 a.m., and 2.00 p.m., this timing analysis will not apply in certain extremely bull phase or bear phase of the markets. In the same way it will not apply to certain actively traded stocks due to favorable or unfavorable news announcements etc., In General FIRST hour and LAST hour trading is most important.
This is also one of the most popular day trading technique. The day trading recommendations, which you receive from Technical Experts, helps you to do day trading without making much calculations and analysis. Various support and resistance levels of your recommended stocks are given to you in advance and your job is simply to observe the price action of your recommended stocks and take decisions based on the predetermined support and resistance levels.
Before taking trading decisions you should simply confirm your profitability by calculating the day trading risk index, understanding and analyzing the market direction, analyzing volumes and analyzing the price and volume chart to understand favorable or un-favorable Technical Analysis formations.
TO SUCCESSFULLY USE THIS TECHNIQUE:
(a). First you should purchase or get free day trading recommendations with 2 to 3 clear support and resistance levels in highly liquid stocks, actively traded stocks and large cap stocks from Stock Market Technical Experts.
(b). If the price of your recommended stock took support near support levels, or if the price is strongly moving in upward direction towards 2nd resistance level after crossing 1st resistance level, you can consider buying that stock to exit at next resistance level after booking your profit.
IMPORTANT: If your recommended stock is moving in between 1st and 2nd resistance level, you should consider the 1st resistance level as immediate support level, similarly if it is moving in between 2nd and 3rd resistance level, you should consider the 2nd resistance level as immediate support level. In the same way if you enter into a stock at 3rd support level, you should consider the 2nd support level as immediate resistance level or your target level and if you enter at 2nd support level, you should consider the 1st support level as your immediate resistance level or your target level.
(c).To use this technique effectively, you should day trade in your own place using your own personal computer and internet connection. You should open a trading account with virtual Trader Terminal facility, real time price and volume charts, streaming quotes, immediate buy and sell order execution, real time price updates etc.,
(d). You should compulsorily observe the price charts every time before taking buying decision. If the chart formation (according to various technical analysis formations) is positive or neutral, you can enter into that stock. If the chart formation is negative you should stay away from that stock.
(e). Before entering into any stock, you should check the intra day line chart for any uptrend breakdowns, reversal formations at tops, downtrends etc., to stay away from that stock.
(f). If the chart formations supports the price action, then you can consider it as a strong BUY signal.