Trading is the toughest location to make smooth money. This holds actual for all types of trading i.e fairness coins/futures, commodities and forex. In our previous articles, we explored the pros and cons of the commodity buying and selling and F&O buying and selling. The final segment, that we haven't touched upon, of the regulated trading, is forex. foreign exchangetrading, also referred to as currency trading, is the maximum liquid marketplace and draws highest volumes from the investors across the globe.
As it is about buying and selling, it's about big income and even bigger losses, excessive-flying tempers and avenue smartplayers.
Let's take a trip down the lane of the foreign exchange buying and selling and try to apprehend the rules of the game, how tomake a winning bid and most importantly--whether you ought to strive it or live clean of it.
We think at least in large caps, it would be more of a timewise correction, Harsha Upadhyaya stated.
At the same time as the steep correction seen in small and midcap shares has taken even some pinnacle marketplace voices through surprise together with ace investor Porinju Veliyath, Kotak AMCs Harsha Upadhyaya says that the space ought to see greater correction. In an interview to ET Now, Harsha Upadhyaya stated that given the sizable outperformance of small and midcap shares in 2017, the gap was bound to remain volatile within the current year. looking at that the stock markets universal are buying and selling above the ancient stages, he said that a time wise or a price clever correction should show up in massive cap stocks.
We think at least in large caps, it would be more of a timewise correction. It has already happened for last two-three quarters and could continue for some more quarters. But in mid and small caps, where you do not get comfort of earnings growth if the valuations are high, than those stocks can really correct very sharply, he informed the channel.
Extensively, the cost erosion visible inside the current calendar year has baffled even investor Porinju Veliyath. We are going through a underperformance in PMS since January this year. An unusual sell-off in mid and small cap stocks is going on leading to irrational pricing of many of our portfolio stocks, ace investor CEO of equity Intelligence, Porinju Veliyath wrote in a letter to buyers last week.
To be very frank, Im a little baffled this time looking at the extent of erosion in portfolio value in such a short period, he delivered. however, he expects a substantial get better in price stocks. We will do some re-structuring, as required in a more rational market, he wrote in the note.
Consistent with Upadhyaya, the intake subject matter is slated to witness strong boom. Growth continues to be very strong for most of the consumption elements whether it is discretionary or non-discretionary. Our results are also in line with expectation in most of the cases but the worry there is of the valuations because this is one pocket where earnings have been steady for last couple of years and hence more money has gone into this particular pocket, he noted, he noted, adding that consumption is one area where the latest quarterly effects had been either in line or slightly better than expectancies and a number of the retail personal area banks have additionally been accurate in phrases of income increase.
Get stay inventory prices from BSE and NSE and modern-day NAV, portfolio of Mutual price range, calculate your tax by using earnings Tax Calculator, understand marketplaces top Gainers, pinnacle Losers & fine fairness finances.
Key Jhunjhunwala shares see sell-off Aptech and Escorts, key stocks in billionaire investor Rakesh Jhunjhunwalas portfolio, got here beneath heavy selling strain ultimate week. stocks of Aptech dropped eight according to cent, and people of Escorts declined seven in line with cent on Friday.
Jhunjhunwala holds more than 12.6 % stake in Aptech and 9.2 per cent in Escorts. Except these stocks, different key holdings of Jhunjhunwalas which includes Lupin, Crisil, Tata cars and Aurobindo Pharma have also come below promoting pressure in recent months. Samie Modak Analysts bullish on .
The stock market has always lured investors with the promises of big money, however, generating a profit through equity investments is not easy. It requires a huge amount of discipline, patience, in-depth understanding of the market, and a great deal of research among others.
We all have heard our fair share of stories of someone becoming a multimillionaire or going bankrupt by investing in shares. While the bankruptcy and loss booking stories may turn off most people from the share market there are those who dream of the millions they can make.
This article is for all such dreamers.
New To The Share Market?
Newbies generally buy shares after hearing of a solid share market tip. A tip that promises quick and easy money.
Here’s A Quick Stock Tip For Today (31st May 2018):
(Read the latest share market tips updated on a daily basis)
Bharat Electronics (NSE Code: BEL) - Can be a good investment option at its current market price of Rs.119.
Valuation: Overvalued stock with trailing PE of 17.67x as compare to closed peers.
Reasons to consider: The company posted healthy numbers over last five years. ROE improved to 17.63% as of now from 14.52% in FY13. Slow down in order inflow and shrinking operating margin impacted the company. BEL is India’s one of the largest PSU in defence segment. It is a key beneficiary in defence capax. The company is having intact competitive profile. Stock is also trading at all time low level.
Drivers: BHE would benefit from ramp up of private sector capability (defence segment).Company is also having many large projects in hand with revenue visibility by FY21. Its order book is slated to grow over the next few years because of steady demand for its existing product range, potential orders from high value projects (e.g., tactical communication systems) and growth opportunities in the non-defence/ export segments.
Financial: Revenue of the company increased to Rs 8654 cr in FY17 from Rs 6272 cr in FY13. EBITDA margin expanded to 25.56% in FY17 from 20.53% in FY13. EPS rose to Rs 6.20/share from Rs 3.45/share in FY13.
The above tip provided by Niveza India suggests that you can invest in Ganesha Ecosphere. To understand why you can read the points listed above and get a brief understanding.
Who Provides The Best Share Market Tips?
The best share to buy or multibagger stocks, etc are words thrown around by anyone who knows anything about the share market.
A quick google search would lead you to share market tips being offered by top brokerage firms, investment gurus, online financial portals.
Even financial news channels run several talk shows featuring some eminent investor or fund manager readily offering you advice on what to buy. Heck, even your uncle or next door neighbour would have a share tip or two that promises to make you instant and easy money.
However, the majority of these tips never hit the promised targets and there’s nothing you can do if in case your investment incurs a loss.
Deciding The Best Share Market Tip For You
In the stock market, every step has to be taken with utmost caution as in short term, even good stocks can bring you losses.
Thus you need to understand the two most basic methods used by investors to analyse the profitability of a share:
- Fundamental Analysis
This evaluation method involves studying all aspects of the company right from the balance sheet, leadership team, employees etc. And then comparing it with current/upcoming market conditions, government regulations, etc, to determine the profitability of the stock.
Read More : Fundamental Analysis
- Technical Analysis
This trading tool is employed by share market professionals to evaluate securities and identify trading opportunities by analyzing statistics gathered from trading activity, such as price movement and volume. Unlike fundamental analysis which attempts to evaluate a share's intrinsic value, technical analysts focus on charts of price movement and various analytical tools to evaluate a security's strength or weakness.
Read More: Technical Analysis
Huge Profits Come At A Cost
You’re most likely to come across share market tips based on technical analysis as it is very easily done in comparison to fundamental analysis.
Remember all those bankruptcy and loss making stories I was talking about at the start? Well investors who are into intraday trading, F&O and other such venues of the share market are the one’s who mostly lose money. And the one thing common between all of them is (no prizes for guessing the right answer) - technical analysis.
A fundamentally strong share would almost always return a profit even in case the entire stock market crashes. This in combination with a disciplined personal finance strategy has the potential to generate a lot of wealth. A LOT of WEALTH!
This Is A Lot Of Hardwork, Just Show Me The Money!
Niveza India provides free share market tips. They analyse the top trending share tips and give you a fair fundamental analysis of the tips so that you can make a wise investment decision. In fact, they also provide answers to any share market-related questions that you may have.
The stock market has always lured investors with the promises of big money, however, generating a profit through equity investments is not easy. It requires huge amount of discipline, patience, in-depth understanding of the market, and a great deal of research among others.
Further to this is the stock market volatility always confuses the investors. They're in a constant dilemma whether to enter, hold or exit a certain stock.
Although there isn't a sure-shot formula that would guarantee success in stock markets, here we give you 5 golden rules. If you follow these stock tips prudently, the chances of your success will definitely increase:
- Maintain A Disciplined Investment Approach:
Historically, bouts of panic moments have been recorded even during great bull runs. Share Market volatility has inevitably led to numerous investors losing great deals of money even in the face of great bull runs.
Besides keeping a long-term broad picture in mind, it is advisable to have patience and follow a disciplined investment approach. Hence, if you invest your money systematically, and buy the right shares and hold on to your investments patiently they will generate outstanding returns.
- Invest Only In Businesses You Understand:
Always invest in a business instead of simply buying shares, and invest your money in a business that you understand.
- Don't Follow The Herd Mentality:
As Warren Buffett - the world's greatest investor said, "Be fearful when others are greedy, and be greedy when others are fearful!" Typically a buyer's decision is heavily influenced by the actions of her/his relatives, friends or neighbours. For eg, if everybody you know is investing in a certain stock market tip or a specific stock, chances are that you being a potential investor would do the same. It is very easy to be influenced by a friend who gives you a stock market tip and asks you to invest in it as it will give you good returns. However, this strategy generally backfires in the long run. So stick to your research and understanding.
- Never Take Uninformed Decisions:
Always ensure that you have done your due research before investing in stocks or stock tips. Amateur investors in general simply go by the company name or the industry that the company belongs to. This is a definite way of gambling with your money.
- Don't Try To Time The Stock Market:
Even Warren Buffett doesn't try to time the market, although he does recommend on having a strong view on the price levels appropriate to individual shares.
So, don't try to time the market. In fact, nobody, not even Buffet has been able to successfully and consistently do this over multiple businesses or stock market cycles. It is a myth to be able to catch the tops and bottoms. Majority of investors have and still keep losing money in trying to time the market.
Follow these 5 basic stock market tips before buying shares and reap the benefits of higher returns on your investment.
Are you one of the investors who is getting sleepless nights because of falling market? If yes, you have to review your investment philosophy, like immediately. The reason why investors like Rakesh Jhunjhunwala and Warren Buffett look forward to the market corrections is that it gives them an opportunity to buy quality stocks at discount. Expert investors often say - to get value out of your equity investment it is important to think beyond the investment horizon of a couple of years. In other words, they are saying have a long term investment view. As redundant and boring as it may sound, the old investment wisdom holds true even at the present time.
Think of it this way. You have bought good stocks/Mutual Fund after doing extensive research. Now all you have to do is hold them for a long, long time. Only by following this method will you get the wholesome benefits on your capital.
Herd Mentality - A Recipe For Disaster
What is a trend? A trend a thing that is done/performed by a big number of people at the same time. When a certain style makes a prominent presence, it becomes a trend of the season. In the same line, there are stock market trends. However, when a 'trend' comes to stocks it becomes very dangerous. In the stock market, a particular sector draws huge buyers which ultimately makes the sector a trending sector and the stocks in the sector, trending stocks.
If you take a close look at the stock trends you would realise that the element that drives a trend is herd mentality. This is the very reason we call a "stock market trend" an extremely dangerous phenomenon. People, while following a herd, buy a particular stock not because they are convinced about company's fundamentals but simply because someone else is buying it.
In such situations, people don't do any analysis of the stock. Following a stock trend is akin to driving a car blindfolded. It's destined to end up in a disaster.
Beat The Market Volatility With Long Term Investment View
Volatility is virtually a synonym of stock investment. In a way, short-term investors, intraday traders are the people who gain or lose money only due to the market volatility. The high returns come here at the expense of high risk.
Long term investors, on the other hand, are at an advantage in this regard. As they are focused only on the long term stocks which have long-term potential, they automatically disregard the short-term roadblocks which every stock goes encounters in its life cycle. On the other hand, some companies' stocks look very volatile in the short-term but give great returns in long term. Therefore, we can say that long-term perspective drives you clear from all the roadblocks of short-term investment.
Look At The Big Picture
Forget the 'risk' factor, here's an example which explains how short-term investment perspective can fail. Imagine you have a Rs.1 Lakh and you invest it in stocks with a short-term horizon of 6 months. After six months, your vision turns true and you get 25% returns on your invested capital effectively taking the value of your capital to Rs.1,25,000. To get 25% returns in 6 months is a big deal. An ordinary investor would simply go ahead and book the profits. Most of the investors would do the same.
Here comes the catch, when people see big profits then totally disregard the fact that the same stocks can give better returns.
The problem with booking early profits on good stocks is that you don't get to extract the full potential of the underlying companies. Those stocks go-ahead to become multi-baggers and you miss out on 2 things - more profit and regular dividends.
People say there is huge money to be made in trading. It is true, those who are successful at trading make tons of profits. However, the important point that people usually miss while reading these glossy statements is that only 2% of the traders are actually successful and make money. It means, if you are going to try your hand at trading, the odds are heavily against you. If you don't mind taking high risks and losing a considerable money in the process then you can have a swing at trading. After all, only after trading, you will know whether you are good at it or not.
However, many people don't have the risk appetite to take big-stake trades. Moreover, when you know that the chances of succeeding are so slim, a smart, thinking creature should immediately turn around and look for investment avenues which give not just better returns but also keeps the capital safe.
Can Any Other Medium That Gives As Good Returns As Trading?
The answer is - NO. No other medium be it equity, real estate or gold can be as effective as trading, in short term. But there are mediums which are far safer than trading. In trading, there is a huge risk to your capital. It is perfectly capable of wiping out your entire account if you haven't assigned a stop-loss. The best and the most effective method of getting good returns is long term investment in equity.
The Advantages Of Long Term Investment
Experience The Power Of Compounding - To put it simply, compound interest means the interest you get on the interest. You would be wondering how is it connected to stock investment? There are various perks of long term investment. On the long term basis, you get regular dividends on the stocks your holding. The dividend is a reward you get on your stocks from the company. The assumption here is that you have invested in companies that have good dividend yield rate. As the dividend is a bonus income, it's an opportunity to roll it over into other good stocks which, in future, will bring you more income. As you are earning income from the income it can be said that this is a form of compounding. This way you are experiencing the power of compounding in your direct equity investment. That a great deal, isn't it?
Pay Less Tax & Brokerage - The big benefit of long term investment in equity is that you get extensive tax exemptions. When you hold the stocks for more than 1 year, the tax is considerably less than what you will pay if you sell them before one year. These are the benefits of long term capital gains. Investors generally underestimate the importance of tax discounts and rebates. Due to their negligence, they end up paying more and miss out on rewarding opportunities. But if planned well, saving tax is just like earning profits. This is the reward that short-term investors and intraday traders miss out on as they don't hold their stocks for more than 1 years. Not only that, as intraday and short-term are way riskier than long term, the capital they invest in their trades also has to bear big risk as it has to live through the day-to-day market volatility. It will be safe to say that no other investment instrument gives tax and growth incentives like the long term investment. Therefore it's always better to buy when you are absolutely certain of the stock's fundamentals. Remember, every penny that you save is the penny you earn.
Peace Of Mind - One of the biggest and the most underrated advantages of long term investment is - peace of mind. Yes, this is not any monetary gain or tax incentive but this quality is important in the larger scheme of things. Trading, contrary to investing, is an affair filled with dramatic highs and lows which consequently have a toll on your health. It's stressful and prone to give anxiety to those who can't deal with high-stakes trades. Long term investment is about becoming a part of a success story of the company. As it is not about pocketing some profit and moving on, a person involved in the long term investment enjoys a possibility of getting advantages like bonus shares, split shares and regular dividends from the company. On top of that investors also gets plenty of peace of mind as they can rest assured about their capital which will only grow with the company.