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Showing posts from November, 2016

Is Day Trading a necessary evil

To find  if Day Trading is a necessary evil, a poll has been created in our Facebook , Twitter and Google+ page. Fb polls Twitter polls Google+ polls

Indicators of a Great Stock

For investors, finding a stock to buy can be some of the most fun and rewarding activities. It can also be quite attractive, provided he or she ends up buying a stock that increases in price. Below are five tips to help you identify stocks that have a good chance at making you money. Profits The very essence of a successful company is its ability to make a profit. In fact, profit is the single most important financial element of a company. Without profit, a company goes out of business. If a business closes its doors, private jobs vanish. In turn, taxes don’t get paid. This means that the government can’t function and pay its workers and those who are dependent on public assistance. Profit is what is left after expenses are deducted from sales. When a company manages its expenses well, profits will grow. Sales Looking at the total sales of a company . A company (or analysts) can play games with many numbers on an income statement; there are a dozen different ways ...

Cons of DAY TRADING.

Listen to the story of X, a reformed day-trader, and his burnout cycle: "We began investing in retirement plans seriously in the early 2000s - wanting to retire early. Initially we did pretty well investing in mutual funds. Things began going down hill after the Recession of 2008 when I became seduced by the idea of timing the market. I subscribed to professional market-timing newsletters and began trying to time the market.  "Market timing brought out the worst in me," says X. "When in the market I would invest in very aggressive growth and sector funds. Then I would get completely out of the market. When I was in the market I would monitor the funds daily and keep upgrading to the highest performing so that by the end of a market cycle I was very aggressively invested and took large losses when the market dropped and scarring me in the process.. "Then the market would come back so fast I would invariably miss the first 5-10 percent of ...

How can YOU be a Crorepati with stock returns!!

There have been numerous such companies that have given great returns to investors, like Reliance, Titan, Dr. Reddy Labs, etc. No one can predict which company would grow to such a huge levels before 30 years. Remember, for every Wipro like story, there are thousands of companies which has eroded investors wealth and become penny stocks. Investing in equities alone isn’t enough, investing in the right company at the right time is even more important. Power Of Compound Interest Even if someone invested in the best company in the world, its basic human psychology to book profits when the stock prices increase so many fold. Some investors don’t feel comfortable even for a 50% increase in their investment . No one would have the patience to hold such a stock when he sees how volatile the market is in short-term. If you really want such phenomenal returns, you would have to do lot of fundamental research, do your due diligence on the company and invest in it when it...

Power of compound intrest.

T alking about investing power, quite a few of us would have been involved in financial investments (i.e. deposits, mutual funds, shares, or other). We would have read about windfall gains made by investment gurus and conversely also heard/seen the major risks in equity investments . Let’s take a couple of big examples from the Indian IT space: Wipro and Infosys . The market enthusiasts would already know where I am leading this discussion to, and may want to skip the reading. But for the benefit of the general population, let’s understand how these companies fared since their inception for a shareholder . Case 1: Investing in Wipro What if you / your father could invest 100 shares of Wipro in the year 1980 and did nothing since then? Wipro was founded in 1941 with 17,000 equity shares and incorporated in 1945. As the base price or face value per share price used to be Rs 100 at that time. Assuming a minimum purchase of 100 shares (as was the norm in the era), ...

basics of investment

Let us see what is investment there are different types of investments, clasiffied based on money, term etc etc. let us see the investment based on term, Having a “long” position in an investment means that you own the security. Investors maintain “long” security positions in the expectation that it will rise in value in the future. The opposite of a “long” position is a “short” position. Power of Compound Interest A "short" position is generally the sale of a security you do not own. Investors who sell short believe the price of the stock will decrease in value. If the price drops, you can buy the stock at the lower price and make a profit. If the price of the stock rises and you buy it back later at the higher price, you will incur a loss. Short selling is for the experienced investor . Cons of DAY TRADING. Reasons Not To Trade Forex