Trading Aspirants

What is a share? The capital of a company is divided into shares. Each share stands for a unit of ownership. These shares are offered for sale when an organization needs to raise funds. An Initial Public Offering means that a company is making a portion available for traders or investors to buy. Companies benefit from this exercise as they receive the required funds for different purposes. Here are the reasons why people invest in share market: Wealth Creation Future Opportunities to own Portfolio diversity Minimizing loss Easily accessible money Combating risks Added benefit of dividends

Types of IPO: Fixed Price Issue Book Building Issue The issues differ on these factors which are tabled as below. Fixed Price Issue Book Building Issue   Pricing   The Share Price Is Fixed On The First Day Of Issue And Is Printed In The Order Document.   The Exact Share Price Isn’t Fixed. Only The Price Band Is Fixed. The Price Is Fixed After The Closing Date Of The Bid.   Demand   It Is Known Only After The Close Of Issue.   It Can Be Known Every Day.   Payment  The Payment Should Be Done 100% In Advance. Refund Is Given After The Allocation.  The Payment Can Be Made After The Allocation.   Reservations  50% Of The Allocations Are Reserved For Investments Below 2 Lakhs, And The Rest For High Amount Investors.  50% Of Allocations Are Reserved For The QIBs. 35% For Small Investors And The Rest To Other Categories Of Investors.

Technically speaking, any adult who is competent to enter into a legal contract is eligible to apply in the IPO of a company. Of course, it is essential that you have a PAN card issued by the Income Tax department and you also have a valid d emat account. Remember, having a trading account is not necessary in case of IPOs, a demat account alone is sufficient. However, if you want to sell the shares on listing then trading account will be required. That is why brokers will advise you to open a trading account along with demat account when you apply for an IPO for the first time. An important point to be remembered here! When you apply for an IPO, it is not an offer but an invitation to offer. Only when the IPO issuer offers you shares, it amounts to an offer.

If you have bought an IPO for the company, you are exposed to the fortunes of that company. You bear a direct impact on its success and loss It is this asset of your portfolio which has the highest potential to reward the returns. On the flip side, it can sink your investment without a sign. Remember stocks are subjected to the volatility of the markets You should know that a company which offers its shares to the public is not indebted to reimburse the capital to the public investors You should weigh up your potential risks and rewards before investing in an IPO. If you are a novice, read up an account from an expert or a wealth management firm. If still in doubt, talk to your personal financial adviser.                                                                              💹Angel Broking🌐

Offering an IPO is a money-making exercise. Every company needs money, it may be to expand, to improve their business, to better the infrastructure, to repay loans, etc Trading stocks in the open market mean increased liquidity. It opens door to employee stock ownership plans like stock options and other compensation plans, which attracts the talents in the cream layer A company going public means that the brand has gained enough success to get its name flashed in the stock exchanges. It is a matter of credibility and pride to any company In a demanding market, a public company can always issue more stocks. This will pave the way to acquisitions and mergers as the stocks can be issued as a part of the deal.                                                                💹Angel Broking🌐

IPO means  Initial Public Offering. It is a process by which a privately held company becomes a publicly traded company by offering its shares to the public for the first time. A private company, that has a handful of shareholders, shares the ownership by going public by trading its shares. Through the IPO, the company gets its name listed on the stock exchange. A company before it becomes public hires an investment bank to handle the IPO. The investment bank and the company work out the financial details of the IPO in the underwriting agreement. Later, along with the underwriting agreement, they file the registration statement with SEC. SEC scrutinizes the disclosed information and if found right, it allows a date to announce the IPO.                                       💹Angel Broking🌐

Companies typically go public to raise huge amount of capital in exchange for securities. Once a private company is convinced about the need to become a public company, it kick-starts the  process of IPO.  Companies which want to go public follow a process that exchanges adhere to.   The  IPO process is quite complicated.  So, what are steps to tread to make an initial public offer? One should note that the entire IPO process is regulated by the ‘Securities and Exchange Board of India (SEBI)’.  This is to check the likelihood of a scam and protect investor interest.  Step 1: Hire an investment bank Step 2: Register with SEC Step 3: Draft the Red Herring document Step 4: Go on road show Step 5: IPO is priced Step 6: Available to public Step 7: Going through with the IPO                                                💹Angel Broking 🌐

Companies go public to raise money. It gives them financial capital, that they can use to clear off debts, improve the infrastructure, invest in research and development of new products, introduce new products and so on. Apart from that, the increased financial scrutiny during the process of going public will get them better debt rates when they are issuing it. And if the company’s stocks are in demand, there is always scope for mergers and acquisitions. The terms of negotiations can be in stocks. The demand also attracts the company’s top talents as the company can offer stock options as reimbursement. The company gets credibility and visibility after it gets listed on the stock exchange.                                                                                                               💹Angel Broking🔮

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Q:  I have a saving of around Rs 10 lakh. Would it be wise to use the amount to buy a house with the help of a home loan? I am currently living on rent and paying Rs 17,000 for it. My monthly take-home salary is around Rs 72,000. A:  Yes, a home loan is the only thing that I suggest people should borrow. And more so for a person like you who will be able to buy the house, live in it and save on that Rs 17,000 which is the rental outflow. Never consider buying a home as a second home or as an investment wherein you are unlikely to live. That's not a good idea.   So, in this case, it makes eminent sense. Just do your calculation. Make sure that you are not paying more than a third of your income of Rs 72,000 divided by three. So, Rs 24,000 should be your maximum EMI.  I am just framing it so that you do not lose onto the basic framework of financial prudence. So, you have to wait to buy a house wherein your down payment is such that the instalment or your EMI for the home loa

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Confusion by choices Equity mutual funds are the recommended investment avenue for most ordinary investors because they are convenient and easy to manage. An investor can rely on the expertise of the fund manager, without having to spend too much time and energy in picking stocks. This sounds like a simple enough thing to do. In practice, however, it is not as easy. The first task at hand is probably also the toughest, which is picking an equity fund to invest in. There are literally hundreds and one can't blame an investor for getting lost. Narrowing down the options The Fund Selector tool comes to the rescue. This tool helps an investor pick the right fund out of the many options available. You can use the tool to choose funds by fund house and fund category. You can further filter the selection by excluding funds by their star rating, type, etc. Once your selection is done, click on the 'Go' button to get a list of funds that fits the chosen criteria. Selecting

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No, never. For most investors, making one-time investments becomes a problem. This is because when you invest a large sum of money, then even a one per cent decline becomes unnerving, as one starts relating it to one's monthly income and it looks like one has been defrauded. So, for most individual investors, a fall in lump-sum investments becomes quite frightening. Having said that, in my opinion, any equity investment should be done with your long-term money (five years or more). Also, this should never be invested as a lump sum. Averaging your investments is very important for managing your behavioural reactions to short-term market movements. One can never say where the markets may go and we can only say such things with great precision once things have happened. Since you don't know what the markets have in store, being regular with your investments in high-quality funds is the key.

When faced with the prospect of figuring out how much insurance to buy, most people pluck a figure out of the air - something that just seems adequate. Or another common practice is to rely on insurance agents to decide a policy and sum assured. This is obviously not the way to make this important decision. The only reasonable way of deciding what and how much insurance you need is to unemotionally create a financial plan that your family should follow if you die suddenly. Families also have to consider the impact of both parents passing away in an accident. The impact of such a tragedy could be greater than just the sum of two deaths occurring separately. Here are five things to consider. Consider these five factors when buying life insurance Time left to retirement: Before buying any term insurance plan, an individual must assess the time left to retire and what 'sum assured' will be sufficient. Time remaining to retire here does not necessarily mean retirement fro

It's a very complex question, as the answer depends on the kind of fund you have invested in. After seeing excellent returns in 2017, many investors invested in the market. But 2018 turned out to be very devastating for equity and even now, the market is not going anywhere. So, many people are getting disappointed. But when it comes to equity investments, a time framework of one and a half years is too short to decide on exiting the fund. Likewise in fixed-income funds, some funds suffered because of rating declines or poor credit. Many funds were marked down. But that money has not disappeared and is subject to some resolutions. So, don't get out of those funds in a hurry. There can be another situation wherein one invested in a fund based on its recent performance but now it is not working out as expected. In such a case, you should take out your money and rethink about how you should invest the money and then, be methodical about your investments. Generally, when inves

Here's a list of debt free companies V I P Industries Ltd Vinati Organics Ltd Page Industries Limited Tata Elxsi Limited Dabur India Ltd Nestle India Limited Britannia Industries Ltd Jubilant FoodWorks Ltd Hindustan Unilever Ltd 3M India Ltd Sanofi India Ltd Pidilite Industries Limited Dr. Lal PathLabs Ltd Bosch Ltd Whirlpool Of India Ltd. Colgate-Palmolive (India) Limited Monsanto India Limited Amara Raja Batteries Ltd Indraprastha Gas Limited Bayer CropScience Ltd Maruti Suzuki India Ltd Natco Pharma Ltd. Lakshmi Machine Works Ltd Eicher Motors Ltd V-Guard Industries Ltd. CRISIL Ltd. Bajaj Corp Ltd Wabco India Ltd P I Industries Ltd VST Tillers Tractors Limited Symphony Ltd Avanti Feeds Ltd Time to grab this kind of companies.

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The one conscious habit that everyone needs to adopt is the habit of SIPs. Saving something every month and investing it systematically in mutual funds is a habit that most of us should inculcate. It's not that hard and the long-term benefits are fabulous. Cultivating the SIP habit frees you from having to decide when and how much to invest. SIPs are in this sense the best way to invest in equity funds. Systematic investments average out the cost of your unit purchases, they don't put you at the risk of catching a market peak, and they earn you the benefit of compounding. And probably the most important benefit, from a non-technical perspective, is that SIPs force you to save and invest that definite amount periodically. Money saved is money earned, we know that. And in the case of SIPs, money invested is money that works to earn more money for you. Now, isn't that a habit you could get used to?

At Market Research, we get a steady stream of investor emails asking questions that show that for some, SIPs remain misunderstood and misused. Here's a typical one, 'The markets are expected to stay oversold because blah blah. Is it wise to hold SIPs in such a period?'. This is just one such example. In general, those who have a punter's approach to investing, or spend too much time watching the punting channels on TV, carry over that approach to SIPs, trying to stop and start SIPs by timing the markets. Back in 2010, when equity-based investments were just recovering from the biggest crash anyone has ever seen, I remember investors claiming that SIPs were no good and that they had barely broken over the preceding years. This was actually not true. However, what had happened was that these were investors who had stopped their SIPs after the crash of 2008, and then restarted after the recovery in 2009. Obviously, their returns had suffered badly. With smaller degre

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What is value investing some it wants to know what value investing is his friend Ashish an arbitrator with Angel Broking explains let’s compare two similar manufacturing companies ABC filters and proof filled enterprises whose current net worth is 500 crore rupees each however a DC filters market capitalisation zation or market value is 250 crore rupees this means that the market has given ABC filters a lower valuation that is only half its net worth Pro field enterprises market capitalisation is 500 crore rupees this means the market has given profile enterprises evaluation at par with its current net worth so ABC filters is trading at half the valuation of pro field enterprises and at a discount to its actual value assuming that the prospects of both the companies are the same investing in ABC filters will give a better return on investments a few years down the line this would be a case of value investing Warren Buffett used this concept to generate enormous wealth Samir now unders

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Watch this video for clear understanding  https://youtu.be/EEUdNFN47LI Here are 5 golden rules of equity investment: Rule#1 Avoid the herd mentality. Don’t let the decision of others influence you. Seek advice from established market experts & make your own informed decision. Rule#2 Stay away from speculators. No one actually knows, the exact time to buy low or sell high. Rule#3 Diversify your portfolio by spreading your investment. This will weaken any risk of loss. Rule#4 Invest long-term & don’t let emotions like fear and greed cloud your judgment. Rule#5 Be a disciplined investor. Invest a fixed amount of money at regular intervals & monitor your investments periodically. Create wealth in the stock market with Angel Broking as his trusted partner.

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Go through this video link —->  https://youtu.be/nQhaL9Jo3Lw Yogesh is new to investing and wants to know more about Mutual Funds. Mutual funds are like a basket of investments. It can consist of shares, bonds, derivatives and other financial instruments. There is a fund manager who manages the portfolio. He uses his professional expertise to spread out the money in several financial instruments from different sectors so that, losses from an investment can be balanced out by gains from others. This way, the fund stands a better chance to generate maximum profit. When investors like Yogesh, buy a mutual fund, they are actually investing into the pool of money, which is then invested into the financial instruments by the fund manager. So, if Yogesh invests in a mutual fund, he will own a unit of the mutual fund and not shares of companies. Mutual funds are suitable for investors who want to profit from the stock-market without having to manage shares directly. You can invest i

Go through this link —>  https://youtu.be/ChIYxEkn5ko In India, there are two major stock exchanges –  NSE or National Stock Exchange  &  BSE or Bombay Stock Exchange . BSE is the oldest stock exchange in Asia while NSE is the largest in the country. Sensex & Nifty are indexes or indicators that offer a general idea about whether most of the stocks have gone up or down. Sensex is like a barometer of market sentiments for BSE. So, if the Sensex goes up, there is a high probability, stock prices of companies listed on BSE will largely go up. Similarly, Nifty registers market sentiments for NSE. So, if the Nifty goes up, there is a high probability, stock prices of companies listed on NSE will largely go up. You can trade in both Sensex & Nifty by partnering with Angel Broking.

WHAT IS THE POWER OF COMPOUNDING         Go through this video ---->>  https://youtu.be/UdcyF8FkLuU                                           The power of compounding what it means Aashish a young professional and his father an avid trader with Angel Broking are talking when are she asked what the power of compounding is all about his father explains through the power of compounding a small amount of money can grow into a substantial sum over a period of time the longer the time-frame  the greater the value for example in order to achieve your future financial goal you invest 1 lakh rupees per annum in a bank fixed deposit for 30 years at five point five percent interest that is post tax effective rate your savings will grow to seventy six point four lakh rupees which is two and a half times the amount you invest in equities however have historically outperformed other asset classes yielding approximate returns of 16 percent over a longer period of time if you in

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Reality 🆚 Fantacy If a friend with little farming experience told you that he planned to feed himself with food grown on a quarter-acre (1,000 square meters) plot, you’d expect him to go hungry. One can squeeze only so much from a small piece of land.There is, how- ever, a field in which grown-ups let their fantasies fly—in trading. A former employee told me that he planned to support himself trading a $6,000 account. When I tried to show him the futility of his plan, he quickly changed the topic. He was a bright analyst, but refused to see that his “intensive farming” plan was suicidal. In his desperate effort to succeed, he’d have to take on large positions—and the slightest wiggle of the market will quickly put him out of business. A successful trader is a realist. He knows his abilities and limitations. He sees what’s happening in the markets and knows how to react. He analyzes the markets without cutting corners, observes himself, and makes realistic plans. A professional tr

Emotional Trading Most people crave excitement and entertainment. Singers, actors, and professional athletes command much higher incomes than such mundane workmen as physicians, pilots, or college professors. People love to have their nerves tickled—they buy lot- tery tickets, fly to LasVegas, and slow down to gawk at road accidents. Emotional trading can be very addictive. Even those who drop money in the mar- kets receive a fantastic entertainment value. The market is a spectator sport and a participant sport rolled into one. Imagine going to a major-league ball game in which you are not confined to the bleachers. Pay a few hundred dollars and be allowed to run onto the field and join the game. If you hit the ball right, you’ll get paid like a professional. You would probably think twice before running onto the field the first few times. This cautious attitude is responsible for the well-known “beginner’s luck.” Once a beginner hits the ball right a few times and collects his p

Commissions: Commissions have become much smaller in the past two decades.Twenty years ago, there were still brokers who charged one-way commissions of between half a percent and one percent of trade value. Buying a thousand shares of GE at $20 a share, with a total value of $20,000, would have set you back $100 to $200 on the way in—and again on the way out. Fortunately for traders, commission rates have plummeted. The extortionate rates haven’t completely disappeared. While preparing this book for publication, I received an e-mail from a client in Greece with a small ac- count whose broker—a major European bank—charged him a $40 minimum on any trade. I told him of my broker whose minimum for a hundred shares is only $1. Without proper care, even seemingly small numbers can raise a tall barrier to success. Look at a fairly active trader with a $20,000 account, doing one roundtrip trade per day, four days a week. Paying $10 one way, by the end of the week he’ll spend $80 in commi

A Minus-Sum Game : Winners in a zero-sum game make as much as losers lose. If you and I bet $20 on the direction of the next 100-point move in the Dow, one of us will collect $20 and the other will lose $20. A single bet has a component of luck, but the more knowledgeable person will keep winning more often than losing over a period of time. People buy the industry’s propaganda about trading being a zero-sum game, take the bait, and open accounts. They don’t realize that trading is a minus-sum game. Winners receive less than what losers lose because the industry drains money from the markets. For example, roulette in a casino is a minus-sum game because the casino sweeps away between three and six percent of every bet. This makes roulette unwinnable in the long run. You and I can get into in a minus-sum game if we make the same $20 bet on the next 100-point move in the Dow through brokers. When we settle, the loser will be out $23, and the winner will collect only $17,

The Odds against You!! Why do most traders lose and wash out of the markets? Emotional and mindless trading are big reasons, but there is another. Markets are actually set up so that most traders must lose money. The trading industry slowly kills traders with commissions and slippage. You pay commissions for entering and exiting trades. Slippage is the difference between the price at which you place your order and the price at which it gets filled. When you place a limit order, it is filled at your price or better, or not at all. When you feel eager to enter or exit and place a market order, it’s often filled at a worse price than prevailed when you placed it. Most amateurs are unaware of the harm done by commissions and slippage, just as medieval peasants could not imagine that tiny invisible germs could kill them. If you ignore slippage and deal with a broker who charges high commissions, you’re acting like a peasant who drinks from a communal pool during a cholera epidemic.

Most Important to become successful trader?? Before you begin reading this post, ask  yourself: what’s the single most important step you can take to become a successful trader? Psychology is important. Since I was actively practicing psychiatry while writ- ing the original Trading for a Living, its psychology part stood the test of time and I changed it very little in this new edition. Market analysis is very important—but remember that when we look at a chart, we deal with only five pieces of data—the open, the high, the low, the close and volume. Piling up masses of indicators and patterns on top of those five values only increases confusion. Less is often more. If you’ve read Trading for a Living, you’ll see that I’ve reduced the number of technical chapters and moved some of them into a downloadable addendum. On the other hand, I added several new chapters that focus on new tools, notably the Impulse system. I also added a section on stops, profit targets and other practical

The Mutual Fund Show: Investors Shouldn’t Be Scared Of Investing In Mid-Cap Funds Taking cues from previous trends while investing in the stock market may not be a wise move. An index that has given consistent returns in the past could be on the verge of a correction and the one...

Why Trade? Trading appears deceptively easy. A beginner may cautiously enter the market, win a few times, and start feeling brilliant and invincible. That’s when he starts taking wild risks and ends up with bad losses. People trade for many reasons—some rational and many irrational. Trading offers an opportunity to make a lot of money in a hurry. Money symbolizes freedom to many people, even though they often don’t know what to do with it. If you know how to trade, you can make your own hours, live and work anywhere you please, and never answer to a boss. Trading is a fascinating game: chess, poker, and a video game rolled into one. Trading attracts people who love challenges. It attracts risk-takers and repels those who avoid risk. An average person gets up in the morning, goes to work, has a lunch break, returns home, has a beer and dinner, watches TV, and goes to sleep. If he makes a few extra dollars, he puts them into a savings account. A trader keeps odd hour

Psychology Is the Key Remember how you felt the last time you placed an order? Were you anxious to jump in or afraid of losing? Did you procrastinate before entering your order?When you closed out a trade, did you feel elated or humiliated? The feelings of thousands of traders merge into huge psychological tides that move the markets. Getting Off the Roller Coaster The majority of traders spend most of their time looking for good trades. Once they enter a trade, they don’t manage it but either squirm from pain or grin from pleasure. They ride an emotional roller coaster and miss the essential element of winning—the management of their emotions.Their inability to manage themselves leads to poor risk management and losses. If your mind is not in gear with the markets, or if you ignore changes in mass psychology of crowds, you have no chance of making money trading. All winning professionals know the enormous importance of psychology. Most losing amateurs ignore it. Friends and s