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Showing posts from December, 2016

INDIA STOCK MARKET 2016 REPORT

#Crude Price Doubles- 2016 Started with Fall of Crude Price. The consensus target among Large Investment banks like Goldman Sacks, Barclays, RBS etc for Crude price Target was 10-15$, well as we see it today, crude prices have doubled from its February low of 26$. Infact commodities have been the best performing stocks in 2017, where Nifty metals is up 40% for the year. This has happened on backdrop of lower Chinese demand. #Brexit- In july Majority of people expected that Brexit wouldn’t happened and Incase it did market’s would crash as that would be the start of fall of EuroZone. Well Brexit did happen, but FTSE has rallied 20% since then and is very close to its lifetime high. India's economy surpasses that of UK #Donald Trump – The odds of Hillary Clinton winning was 91% till 3 days before election day. The Market was expecting that if Hillary wins, the market will rally and incase Trump Wins, markets would Crash. Well Trump won, and US Markets went on to hit...

Best Indian Penny Stocks of 2016

Around 25% of BSE and 10% of NSE are penny stocks. This might seem shocking, but is true!!!! What is Penny Stocks Investing ? What are best penny stocks in India NSE-BSE ? Have you just started to invest in the stock market? You have found some stocks trading at just Rs.5 or 10. What an opportunity? There must be blind people to leave these stocks unnoticed. I will profit from them. It can easily double or triple. If this is your thought then that is exactly ‘ Penny Stocks Investing ‘. But is this rational? Let us find out…. I have a friend who bought a lot of Birla Power Solutions and Jupiter Biosciences in 2009. These were really hot penny stocks in late 2008. Let me tell you that he regrets his decision now. They have gone way down. You buy thinking ‘I bought it at Rs 4 or 6. How much more can it go down?’. Penny stocks can give super-normal returns or super-normal losses(if there is such a term). If the penny stock you bought is not of at least reasonable quali...

Undervalued Stocks: Filter with Stock Screener

Investors generally underperform the market because they do not buy stocks that are healthy and cheap, but stocks which grab their attention.  The reason why this approach leads to sub-par returns is because stocks which are covered in the media and followed closely by the masses are less likely to be undervalued . In addition, if you invest in the stocks everyone else is investing in, your performance will be equal to theirs; average at best. However, you can't really blame people for taking this approach, because analyzing thousands of publicly listed companies is a daunting task. Or is there an easy way to filter out the hidden gems ? I would argue there is, and in this post I guide you through my simple three step process of finding healthy, undervalued stocks to invest in. Generate ideas Goal: identify +-30 companies to analyze further Finding stocks to analyze is something many investors struggle with, but it is really not that hard . True, internet has p...

Think and Grow Rich: A Honest Review

This is the best self help book any entrepreneur / investor could ever read and perhaps the only one they need to. Truly transformative. Napoleon Hill was tasked by Andrew Carnegie to write a book on what made a successful person succeed, and he spent 20 years researching and interviewing every great name of the day (Ford, Woolworth, Edison etc), plus lots of people who failed(because you have to know what doesn't work too). This book is the result. It brings to a single point, over and over again. Success comes from knowing what you want to achieve and having a burning desire to achieve it. "The starting point of all achievements is desire. Keep this constantly in mind. Weak desire brings weak results, just as a small fire makes a small amount of heat" "The first book I ever read in my life: Think and Grow Rich. I have read it 20 times since then," says John Daymond. It seems that every successful business person. I have ever known...

Are systematic investment plans worth it?

Now-a-days, with the effect of rising inflation, the importance of money is increasing day by day. Money has become the first priority in everyone’s life as it is needed in various stages of life at any time. In this expensive world, it is unwise to keep money idle.  So, the need is to make money from the money we have which can be achieved by making the right investments. Though the equity market gives good returns, it is highly volatile due to its constant rise and fall. Now, the question arises as to how can one safeguard their money from market volatility? The answer lies in Systematic Investment Plans in Equity. What are SIPs? The Systematic Investment Plan (SIP) is a simple plan to increase wealth over a long period of time in a disciplined manner.  It allows us to invest in the stock market by way of mutual funds so that you can beat the ups and downs in the market by averaging your cost and diversifying across sectors. Equity SIPs of different amounts and...

TradeHero : Virtual vs Reality

TradeHero is a virtual trading app on the iOS and Android . Although we have known about simulated trading games and competitions, it is unprecedented in a way as TradeHero combines trading and social network. If you are a good stock picker, you can easily top the charts with high Return On Investment (ROI). Essentially, TradeHero wants to serve as a platform to determine the best traders through a social network. I have participated in many trading programs like  Stock simulator  by Investopedia  and I have heard about many as such. But these programs involve real money and require good understanding about trading and investing to begin with. TradeHero is easy for anyone to participate and accessible on-the-go with your phone. Before we delve deeper into the review, we have to understand TradeHero a little more. Every player starts with a capital of US$100,000 (virtual money) You can trade securities from 22 exchanges N...

India's economy surpasses that of UK

As Theresa May returned home from her unsuccessful visit to India, she would bear witness to another relegation for the UK: India’s economy will be larger than the UK’s, For the first time in nearly 150 years This dramatic shift has been driven by India’s rapid economic growth over the past 25 years as well as Britain’s recent woes, particularly with the Brexit. Once expected to overtake the UK GDP in 2020, the surpasso has been accelerated by the nearly 20% decline in the value of the pound over the last 12 months, consequently UK’s 2016 GDP of GBP 1.87 trillion converts to $2.29 trillion at exchange rate of ~GBP 0.81 per $1, whereas India’s GDP of INR 153 trillion converts to $2.30 trillion at exchange rate of ~INR 66.6 per $1. Furthermore, this gap is expected to widen as India grows at 6 to 8% p.a. compared to UK’s growth of 1 to 2% p.a. until 2020, and likely beyond. Even if the currencies fluctuate that modify these figures to rough equality, the verdict is ...

Reasons Not To Trade Forex

George Soros broke the Bank of England on Black Wednesday back in ’92, and since then, we have all become starry eyed dreaming up all those ways we can sit at the computer for a few hours and rake in millions in profits Do you trade forex? Do you consider trading forex? Do you consider learning how to trade forex? Don’t do it. I like the profit opportunities that currency trading carries. I also like the risks involved, it wouldn’t be fun otherwise. But I don’t like the idea to trade myself. here is why: 1. Trading forex is work If you want to make your money work for you, trading forex is not an option. You will have to work for your money. Day trading may look exciting for someone who never tried it, but once the initial excitement is gone you’ll realize it’s just a computer based work like any other. Cons of DAY TRADING. 2. Trading forex is too risky This sounds paradoxical from the keyboard of a high risk investor but I really think forex is too risky. Th...

Characteristics of Successful Investors

Are you a trader or investor? Have you ever wished you were an investment whiz kid like Warren Buffett , Peter Lynch or George Soros ? Would you give everything just to become successful as these men? What special characteristics do highly successful investors possess that you don't? If someone offered to explain to you in detail the basic characteristics possessed by every successful investor, will you listen and learn whole heartedly? If your answer to the last question above is yes? Then please read on as I share with you characteristics possessed by successful investors such as Warren Buffett. "The philosophy of the rich and the poor is this: the rich invest their money and spend what is left. The poor spend their money and invest what is left." -- Rich Dad "Do you know the only thing that gives me pleasure? It's to see my dividends coming in." -- John D. Rockefeller 1. Highly successful investors are proactive learners The firs...

Rules for Successful Investing

Saving is the first step to investing. Unless you have wealthy, benevolent relatives, living within your means and saving money are prerequisites to investing and building wealth. Know the three best wealth-building investments. People of all economic means make their money grow in ownership assets — stocks, real estate, and small business — where you share in the success and profitability of the asset. Be realistic about expected returns. Over the long term, 9 to 10 percent per year is about right for ownership investments (such as stocks and real estate). If you run a small business, you can earn higher returns and even become a multimillionaire, but years of hard work and insight are required. Think long term. Because ownership investments are riskier (more volatile), you must keep a long-term perspective when investing in them. Don’t invest money in such investments unless you plan to hold them for a minimum of five years, and preferably a decad...

Traits of Successful Investors

Everyone knows that to succeed as an investor or trader you must buy low and sell high. As simple as this concept is, the actual act of doing so is almost impossible. That is unless you are prepared (i.e. pre-programmed) to buy at low prices, or to sell at irrationally high prices. Behaviorists suggest that we are pre-wired to avoid pain and to pursue pleasure. Unfortunately, these instincts can work against you in the financial markets. It’s painful and unpleasant when prices are low and declining even further. It’s euphoric when markets are climbing beyond rational levels of value. The following 10 traits of successful investors may help improve your odds whenever the urge to buy or sell occurs.   Trait #1. The ability to buy stocks when everyone else is panicking, and sell stocks while others are overly optimistic. Mark Sellers told a graduating class of Harvard MBA’s that the ability to succeed as an investor has nothing to do with I.Q. or education.  ...