Education for Investors and Traders for Indian Stock Market

Emphasis on Education:

We have added a new dimension to our work. Yes, that is investors and traders awareness, education and learning. You have been sold tips and advice but never told even once rightly ‘how to invest wisely?’ or ‘how to trade smartly?’ or even the ‘basic financial planning rules’.

We will not just guide you to make money by buying and selling but help you improve your knowledge which will become a part of your wisdom for your entire life.

Education will be provided via webinar, personal phone call discussion, soft copy email files/e-books, spot seminars, group discussion, phone conference calls, and one-to-one discussion apart from the day to day interaction with your own relationship executive at the our premises during the course of your trading.

EDUCATION FOR INVESTORS:

Investors need education more than knowledge. Not all can gather wisdom to become an astronaut, or rocket scientist yet everybody can know the basics of how a space mission works and what to do in space and what not to do to live and die. Similarly, ‘education’ is necessary to find out what is market, what is investing, why invest, why invest in stocks, what to do, what not to do, how to select right advisor, how to reject wrong advisor, what question to ask to your advisor and so on. So, now you understand what we mean by investors ‘education’. Yeah!

You will find listing or our very very very important such articles prepared  by text book study, practical live testing, back testing, experience of world’s top successful investors, writing and teaching of world’s top successful investors, and by advisory, portfolio management and personal experience of investing of our in house and freelance fundamental research team.

Education will be provided via webinar, personal phone call discussion, soft copy email files/e-books, spot seminars, group discussion, phone conference calls, and one-to-one discussion apart from the day to day interaction with your own relationship executive at the during the course of your trading about the various topics here.

Please find below the articles. Some have links to our other investors and traders portal, while some articles are provided here below only, while some links will open in this very website. We have tried to provide them in ascending order of ‘knowledge’ and investor needs.

So, go on, be a tiger!

Investor Education is all about how to benefit from investment opportunities without falling into pitfalls. Understanding the right approach/orientation/mindset and adhere to it. Understanding the wrong approach/orientation/mindset and discard it or stay away from it.

Investors don't need to learn ratio analysis, that's our work. But they must know what a ratio analysis is. Investors education doesn't mean teaching you to analyse stock market. It means teaching you and making you aware about the opportunities that markets offer. This will enable you to understand the crucial 'Dos' and 'Don't' of the market which everyone must know. It means developing the right healthy approach towards investing. When you go on board a flight, you don't fly yourself, you are not supposed to fly the plane because you want to reach somewhere, no. But you need to know the manual for safeguarding, you are advised about the rules to be adhered and guidelines. Suppose, if you panic due to noise created by take off or become fearful and panic when you look out from your window from ten thousand feet, you get crazy and faint or puke. Suppose, you think you can ride the plane and suppose, you somehow find the way to cockpit and start tackling the gears! Because you think you know about 'stuff'. Suppose, what if you are carrying a pistol full of bullets? Suppose, it is a small charter you are boarding or you are alone in it.  These example seems extreme. But it is not. It is completely fitting. Suppose, you are not informed about the oxygen mask and a disaster strikes and the oxygen level drops. You are in dire trouble then.

Now, come out of the plane. Suppose, the plane is 'market' or 'investing' or 'trading'. You can co-relate and give analogy. Getting on board with pistol bullets means you are investing with emotions, you get cheerful and optimistic when market rise and blue channel and yellow papers say so, and you get sad or panic when the market falls. You don't know where the oxygen mask is in time of extreme need on board is similar to not knowing what to do in a falling market or when your stock is plunging and portfolio value starts bleeding. If you have education/awareness/understanding/right orientation/right approach/Do's and Don'ts in terms of different situation and important issues of markets/trading/investing then there is no way you can fail. You are bound to succeed. These is what Investor Education is!

  

Our research team has prepared the following topics which must be known to every investors. We are preparing more such topics which will be imparted to Members via modes of pdf e-books, video tutorials, webinars, one to one phone call discussion education, seminar, and hard cover books.

 1.    What is Investment? What are the objectives of Investment? Devastating effect of inflation on your money. Why invest ? Why invest in Stocks ?

2.    The Concept of Compounding Rate of Interest. The Concept of inflation and investment simply explained. The history of returns on investment in Indian and World Stock markets. Why NOT investing in Stock market is Risky?

3.    Classification of Investment based on Duration. Meaning of Short Term, Mid Term, Long Term, and Longer Term investment.

4.    Classification of Asset Classes. Classification across asset classes and Classification within Equities. Ideal asset allocation within equities and across all asset classes.

5.    3 Essential Strategies for Investors.

6.    Portfolio Investing: The key to superior returns in markets.

7.    About Diversification and Concentration in investing.

8.    About Wealth Destruction in Stocks and How to avoid it. Aviation Sector Case study. SKS Micro case study.

9.    The art of making your Stock Investment cost zero.

10. Important things to know about IPOs. Why avoid most of the IPOs?

11. Classification of Money/investible money.

12. Why you must stay INVESTED in markets? The Cost of missing best days in markets.

13. What is Strategy based Advisory vs. Blind Tips.

14. What is Contrarian Investing? How it is useful to you?

15. About market correction and more

16.  Enter before these 10 crore investors & benefit from early bird investment in Indian Equity markets?

17. How handful of people ate cream of Indian Economic Growth and Why it is not their fault?

18. The most common mistakes of investors? Including irony etc…

19.  Why bubbles will continue to create in markets?

20.  How to overcome fear of falling markets?

21.  What is a Stock/Share? What is a Stock market?

22.  What is investing? What is trading? The difference between them.

9 QUESTIONS TO ASK AND THINGS TO CONSIDER BEFORE SELECTING YOUR ADVISOR

9 QUESTIONS TO ASK AND THINGS TO CONSIDER BEFORE SELECTING YOUR ADVISOR

1. What risk-reward ratio will you give me?
2. Please give me 10 investors and traders awareness and educational articles prepared by you.
3. What is your educational qualification and experience in market of how many years?
4. Are you providing advice and recommend only to trade or investment also? (one must recommend and suggest about long term investment also)
5. Will you give me trading calls in segment which I tell you or will you tell me in which segments and sub segments to trade? (advisor must not let client to select their own segment and sub segment, because advisors must know better than clients who are seeking advice which segments and sub segments to trade and which not)
6. Are you giving free trial or not? (true advisor will not give free trial. Reason is simple. He must be already having enough paid customers and not have time to give free tips. Also such advisor believes ‘free things has no value and quality thing always has value and are costly. He will ask you ‘How can you take judgment of my service in 2 day of sample calls? This is unreasonable’.)
7. Do you give trades daily or there is no fixed frequency of it? (There should not be any frequency of trading calls giving, every day is not good for trading and no one knows which day will present best opportunity and which day worst. So, there should not be fixed frequency of giving calls.)
8. What is your accuracy ratio? ( If the advisor says 70% or 90%, beware. Ask him about ‘WHAT NET PROFIT WILL YOU GIVE ME AT THE END OF SO AND SO NUMBER OF TRADES?’ Do not ask about accuracy ratio in %. It doesn’t make any sense and doesn’t give you any idea about accuracy either.)
9. I have 1 lakh trading capital, what kind of exposure will you give me? (if the advisor say that he will make you trade on full exposure, then beware. A good advisor always cuts 30% from your trading exposure and then gives you positions on the rest of size.)

BEST OF LUCK WITH YOUR HUNT FOR A GOOD ADVISOR!

Navratri Discount Offer! Make this Dassehra Profitable for you!

Navratri Discount Offer! 

Make this NAVRATRI and Dassehra PROFITABLE with Megha Investments & Research

CALL ON 09376858284 or write on info@meghainvestments.com TO FIND OUT EXCITING DISCOUNT OFFERS .... on Trading and Investment Advisory Services.

CMC LTD. BUY RECOMMENDATION FOR MEDIUM TERM INVESTORS AND TRADERS

CMC LTD is a TATA GROUP Company.

We recommend a buy for medium term traders and investors with a Target Price of Rs1606.

There is going to be a boost in next result announcements as well as the company is expected to give higher guidance for its export based services.

The promoter group can also announce a stake hike in the company.

All are source based information.

Technically speaking there is highly reliable cup and handle pattern which has been formed on the monthly chart as you can see in the image.

To get regular updates and alerts, become member here http://www.meghainvestments.com/contact_form.php

14 ATTRIBUTES OF SUCCESSFUL TRADERS

14 ATTRIBUTES OF SUCCESSFUL TRADERS:

1.      View TA as a picture of where traders are lining up to buy and sell

2.      Approach trade no.5 with the same conviction as the previous 4 losing trades

3.      Use naked charts

4.      Comfortable making decisions with incomplete information

5.      Do not think of markets as expensive or cheap

6.      Aggressive with trade size when doing well and modest when not

7.      Realize the market will be open tomorrow

8.      Judge their trading success on anything but money

9.      Study human psychology – Use ful books are- The wisdom of crowds by James Surowiecki, the art of strategy by Avinash Dixt and Barry Nalebuff, Markets Mobs and Mayhem:A modern look at the Madness of Crowds by Robert Menschel, extraordinary popular delusions and the madness of crowds by Charles Mckay.

10.  See themselves as market makers.  Think like a market maker and not just a trader

11.  Practice reading the right side of the chart, not the left.

12.  Always have an edge, don’t trade if you don’t

13.  Determine position size based on risk, not round numbers

14.  Play reaction, not the news

SOME TRADING SUCCESS MANTRAS BY RENOWNED TRADING COACH TODD MITCHEL

SOME TRADING SUCCESS MANTRAS BY RENOWNED TRADING COACH TODD MITCHEL:

Trade for skill, NOT the money=.  If you’re focused on the money aspect of trading…you’re not focused on the ‘trade’.  And SCARED MONEY NEVER WINS!

Concentrate on what you are trade.  Each market has personalities, habits and friends…get to know them all.

Focus on your executions.  Remember, every execution is a trade.  Money is valuable…don’t leave it on the table.

Remember that even the best of the best traders lose money.  Learn to accept your losses and move on to the next trade.  That’s just part of the business – you will NEVER win 100% of the time.

When in Doubt, Get Out (or Stay Out)!!  Deal with reality, if the market doesn’t behave like you expected, Get Out Immediately!

Learn the difference between gambling and trading: (1) Don’t trade just because it’s irrationally high or low, (2) No positions before major market announcements, (3) always use a protective stops,  and(4) always have a high probability trade set-up before putting on a trade.

Anticipate, identify and take full advantage of momentum in the market.

Report on DTH and Cable Network Industry in India

Present Situation of DTH and Cable Network Sector in India.

Brief idea of future prospects of DTH and Cable Network Companies in India

Small Report on  DTH and Cable Network Industry in India.

What we are going to talk about here is about the companies that brings the channels to our TV sets in our houses.

Please note that the content providers are different entities (like Star group, the ZEE group and other small TV channel maker companies also known as broadcasters). Also the DTH that is direct to home are companies that deliver channels to your TV sets by wireless technology i.e. dishes and the Cable Operator Companies (also known as MSO or Multi System Operators) are the companies who deliver channels to your TV Sets via wires/cables.

We will try to cover important points in a point by point manner to understand the basic and present situation of the sector in India and the future prospects of the same.

·         To begin with DTH is only 10 years old sector in India. While Cable Operators are there for more decades now. In the starting STAR TV tried to lauch DTH services in 1995-96 in India but government banned such operations on the ground of security issues. Then the government gave out the first license to DISH TV of ZEE GROUP in 2003 and kick started the regulated sector.

·         Presently there are 7 DTH operators namely, Dish TV, Tata Sky, Reliance Digital, Sun TV, Videocon D2H, Airtel Digital and DD dth.

·         The 7 DTH players have estimatedly put about USD4 billions or Rs.20000 to Rs.25000 crore investment in to the sector.

·         The players have mainly divided markets into rural, semiurban and urban areas.

·         DTH got boost in 2008 with the entry of 4 new players namely Sun, Airtel, Reliance and Videocon.

·         The maximum subscriber base growth was reported between 2007 and 2011 years at 4-5 times in that 4 years.

·         Dish TV is the largest player with over 4 crore subscribers as on march 2013. The subscribers base has risen 10 times in the last 6 years. 60% of its subscribers are in the top 20 cities of the country. Its share of the total Satelite Homes (Cable + DTH) is 30%. However it is still making losses. It is believed by most analysts and this writer as well that this company will act as a bellweather for the sector and when this company will turn profitable, it is most likely that one by one most players will start turning profitable as well.

·         The broadcasters like the DTH players over the cable operators. The broadcasters got Rs.2500 crore as subscription revenues from DTH players in 2012-13 which is 51% of the DTH plus Cable households put together.

·         The DTH players are expected to grab major pie of rural growth in satellite households as they will be fast rather than cable players who will have to make more capex and take time to expand simply because they have to put wires.

·         Presently the growth in subscription revenue of DTH and Cable operators is almost going hand in hand at Rs.2481 crore and Rs.2372 crore respectively for 2011; Rs.3020 and Rs. 2800 crore for 2012; and Rs 3625 crore and Rs.3758 crore respectively for 2013.

·         While the average incremental growth annually is clearly on the side of the DTH players at 1.05 crore. in 2011 vs.that of 26 lakhs of the Cable Operators; 1 crore and 46 lakh respectively in 2012 while 85 lakhs and 18 lakhs respectively in 2013. This is the best indicators to go for DTH guys for high growth expectations, among other factors such as transparency, global expertise, brand image, lower capex, fast penetration and efficient systems.

·         While the picture of ARPU (average revenue per user) paints a different picture but it has its explanations. In 2011 the ARPU growth for DTH players was 190 Rs. while that of Cable Firms was Rs.197 for the year 2011. The figures for 2012 were Rs.190 and 197 respectively for the year 2012 while the figures for 2013 are 197 and 208 for the year 2013. However, these figures should not be too much concerning to a DTH investor as most DTH players entered the show after 2008 and all of them took time to understand the business, implement the technologies and set up organizations functions mainly region wise strategies and marketing. While cable players still enjoyed advantage of having been doing business for several decades and easy penetration within the cities and periphery areas. I believe the ARPU of DTH guys will not take rise until one more decade as the industry will mature during this time and there will be rise in Cable players revenues via the incremental advantage of broadband service which will accrue to cable operators in next couple of years or 5.

·         It is said that the compulsory digitization drive by the government has taken away natural advantage that the DTH companies might have came to use. Now, the Cable players also had to digitize, and give set top boxes compulsorily. Many say that now Cable Operators also giving digital channels, why would one prefer DTH over Cable? The argument is right. But why do such comparision. It is resolved now that digital picture quality is not an issue of competition any more. To add only 15% of the Pay TV subscribers have been covered so far in the fist 2 phases of digitization.

·         About 30% of the incremental DTH customers are taking HD set top boxes. The ARPU for both DTH and Cable players will increase due to subscribers’ preference for HD viewing. This will increase profitability of the sector and rise margins or act as a stabilizer if due to competition some margins are squeezed.

·         The ARPU for DTH players presently is between Rs.160 and Rs.220. Any entry of new big player will only add to threats to this parameter to decline while the Cable guys will sing joyfully on that.

·         According to a study by Hong Kong based research firm Media Partners Asia the present DTH market in India is about 1.5 billion dollars and is expected to touch 3.9 billions by 2017 and 5.3 billion by 2020. These are annual figures. The research further states that the active DTH subscriber base in estimated to grow from 3.24 crore in 2012 to 7.66 crore in 2020 and 6.38 crore in 2017. The report also stated that Dish TV leads the market with 27% of additions in subscriber base. Tata Sky and Airtel Digital TV have 19 and 18% market share respectively.

·         Advantage to Cable Operators: 4G and highspeed internet broadband service offering in near future will be an additional income with cable operators. This benefit is not available to DTH operators. While DTH operators have advantage of corporate culture, brand image, corporate governance (untrust of broadcasters and content developers on cable operators due to lower subscriber base reporting), low capex, benefit of centralize system, internations joint ventures and tie ups, access to large funds and so on.

·         This author believes that the stock prices of DTH players will outperform that of cable operators in the mid to log run. Long term investors should prefer DTH player over cable operators. One can also go for dish tv and siti cable network ltd which are both sister concerns and subsidiary of Zee Group. Do not expect huge return from this sector in the short time. However, investment at every decline in right company’s stock is advisable for exposure in this sector. Also mind that you should keep separate exposure to broadcasters and TV channel firms apart from exposure to operator firms.

·         There are presently 2 listed DTH players namely Dish TV, and Sun TV Network Ltd while there are 6 cable operators listed which are Siti Cable Network Ltd, Den Networks Ltd, Hathway Cable and Datacom Ltd, Hathway Bhawani Cabletel and Datacom Ltd, Sea TV Network Ltd, and Hindjua Ventures Ltd which is the holding company of Indusind Media and Communications Ltd running cable network across india under InCable brand name.

For investment recommendation and updates on the sector and investment opportunities, write to info@meghainvestments.com OR register in our free updates list.

Stock recommendations, targets and holding duration are available to members only.

NATURAL GAS FUTURES: IMMEDIATE, MEDIUM AND LONG TERM OUTLOOK

NATURAL GAS FUTURES: BULLISH IN MEDIUM TERM TO LONG TERM, BEARISH ON IMMEDIATE BASIS

NATURAL GAS IS A STABLE COMMODITY TO TRADE IN COMPARISON. THE MOST STABLE COMMODITY IS NICKEL, FOLLOWED BY COPPER THEN BASE METALS COMMODITIES, THEN CRUDE OIL, AND GOLD AND SILVER AT LAST ON MCX.

HOWEVER, IT GIVES 2-3 MOVES IN A MONTH WHICH ARE ABOUT 5-10% IN 2-3 TRADING DAYS IN A RAW.

THE OUTLOOK FOR NATURAL GAS ON THE IMMEDIATE BASIS IS BEARISH. IT IS TRADING AROUND 221. IT CAN GO DOWN TO TEST 205 LEVELS. DO NOT EXPECT IT TO BREAK 200. EVEN IF IT BREAKS THEN ALSO IT WILL LIKELY BOUNCE BACK RAPIDLY.

IT WAS A VERY GOOD LEVEL TO SHORT ABOVE 230 ON WHICH IT WAS TRADING FOR LAST FEW TRADING SESSIONS.

HOWEVER, RISK TAKERS CAN STILL SHORT AROUND CURRENT LEVELS OR PATIENCE TRADERS CAN WAIT FOR IT TO AGAIN COME AROUND 230 LEVELS.

THIS IS TYPICALLY NOT A COMMODITY THAT YOU CAN CORRELATE OR TRACK VIS-A-VIS THE DOLLAR INDEX, THE RUPEE MOVE AGAINST DOLLAR AND EVEN TRY TO CORRELATE WITH CRUDE OIL.

THIS IS A COMMODITY WITH HIGHLY COMPLICATED AND UNCERTAIN PRESENT GLOBAL FUNDAMENTAL SET UP.

THIS COMMODITY IS NOT LIKELY TO GIVE BREAK OUT EASILY FOR FORMATION OF NEW RANGES. IT IS EASIER TO TRADE NEAR THE LOW AND HIGH ENDS AND TOUGH IN BETWEEN.

REGISTER ON http://www.meghainvestments.com/contact_form.php FOR IMPORTANT UPDATES ON VARIOUS COMMODITIES AND STOCKS.

11 Reasons to Choose MEGHA INVESTMENTS AND RESEARCH®

How MEGHA INVESTMENTS AND RESEARCH® is different than all other advisory

1.  Strong backbone of and consolidation of our long experience and expertise in markets

2.  Law of large numbers: We all trade together as a group and better our prospects of winning trades

3.  Wealth improvement Concept by trading and investing and not selling products of day trade etc.

4. Long Term Relationship Approach: Our approach is to start with 1 year then quarter and then extend each client to 1 year. We don't want people looking to hit big by monthly membership and tips service.

5.  Emphasize on Education: Educating our members on various topics of investing and trading.

6.  Trade Verification: We at most times are doing the same trades in some or other of our own clients or personal account, this adds in our responsible behaviour while sending out advice to clients.

7.  Trade Justification: We follow world class trading and investing techniques. We will send you with graph and logic why we selected certain trade and why we failed in every failed trade. We don't make you play blind.

8.  Wealth for Health: Everyone knows the importance of money in modern lifetime. We help you improve your wealth and in turn improve your health too.

9. Following top traders and investors of world and India: Yes, we follow approaches of top successful traders and investors in India. With our network all members remain with the trend and gain from the trend.

10. Concept of giving 'trades' and not 'tips' : Tips are for beggars. We give 'trend trades'. As mentioned we will trade along with the top traders and other fellow members of the club. So, all advice will be 'trades' and not like 'tips sms' you purchase from so called tips advisory firms.

11. Gain from Growth of India: Yes, this is the main concept why this firm exists. For Indians. We want all to gain from economic growth of our own India. It's not fair that few are eating the cream out of stock and commodity markets. We will show you and help in gaining from the growth of your own India.

Loser vs. Gainer: What are you? Read why most lose in trading?

Loser vs. Gainer: What are you?

There are 2 types of personas in this market .Losers and gainers. 95% are losers and 5% only are Gainers.

The stock market advisers rely on losers for their business. Yes, it is right. A loser wants to earn money. Loser doesn't think like now you think- in terms of wealth for health. The loser will search the internet and find websites/so called advisory companies who will give them free ‘tips’. They lose money and then turn to another ‘tips provider’ and then again lose money. He continues until he loses all money, and then bids goodbye to investment and trading for his entire lifetime.

You don’t want to be one, do you?

While Gainers have their advisors. Gainers have legal advisors, their chartered accountants, their wealth advisors and their health advisors. They don’t search for ‘free tips’, because they know ‘WHAT IS THE WORTH OF THAT THING WHICH IS FREE-ZERO’

The loser takes advice after losing. First, he goes to money-grabber so called ‘tips providers’ and then turn to the ‘right people’ after losing most of his initial capital and more importantly his confidence, trust and moral. They first take advice and then invest or trade. For this they find right knowledgable people by asking them right questions. While loser just rely on flattering commitment of ‘big overnight profits’.

Thus the loser also again and again keep taking tips from small advisory companies and keep on losing. They first open demat and trading account, then start trading without knowing basic requirements of this business. They keep on watching news channels and keep tracking the market on their own. They are also foolish enough to lose focus from their own business and job.

Losers does not maintain stop loss. They trade with emotions.  They hold on with losses, and wait for m2m. On the other hand the gainer appoints legal advisors and takes service of a reputed and established experienced company who don’t sell ‘tips’ but show way to improve wealth because ultimately you want to improve your wealth and financial well being, you want to improve your bank balance, you don’t want to track the ups and down of market. You are not interested in playing stock market game of buying and selling, right!

Why most lose in trading is because,

1. They enter with less capital and the nature of trading is that they get wiped out

2. They trade emotionally

3. They first open demat, trading account and start trading on 'hot tips' and wipe out initial capital and their confidence and moral; then search for education/knowledge and good advisor instead of the other way around

4. They are not full time or don't have full time team working for him as support

5. They fail with the concept of SL-Stop Loss.

6. They keep watching blue channels, staring at terminal screens and read/rely on yellow papers

7. They don't have mentors and guides

8. They don't trade with systems and not invest with proven methods/approach found by successful people in past

9. They book profit early, and keep losing position longer

10. They never complete learning curve and get out of market by blaming market and others instead of themselves

11. They don't know how to understand and integrate investing and trading in their overal 'life financial/wealth planning'

...there are many other reasons as well.

Any ways, don't worry no more as you are with the MEGHA INVESTMENTS AND RESEARCH team cnow!.

We don’t give Tips, We give ‘Trades of Trend’:

We don’t give Tips, We give ‘Trades of Trend’:

Beware of 'Tips' providers. What are Tips? A tip is for beggar. Are you a beggar? No, you are sons and daughters of great India. Asking for tips is like bagging. You are relying your hard earned wealth on some fluke to come true and then bet your money. This is the cause of your losses in stock market and commodity market.

You should ask ‘How can I increase my wealth?’ to the advisor. But you ask for 'free tips'. The advisor also doesn’t ask you right questions. But it is your money, your future. So, it is you who have to become vigilante and ask right questions to the advisor/service provider. Ask for trades. Ask about your financial planning. Ask about what you will learn in terms of education. Ask about risk management. Ask about reasonable return on your capital. Also ask about whether your advisor has any product and service for long term investment. Ask, do they provide advice to investment in mutual funds. Ask them what to do to secure you children’s future. Ask them how you can secure your life, wealth and health…

We don’t sell tips, because we don’t think of you as beggars. We help you how to improve your wealth for your health. When someone tries to tell you they sell tips or give tips, remember the waiter in restaurant whom you give tip after finishing your meal . Are you that waiter? No. Then, don't go after 'tips'.

As per one of the main theme of our services 'invest with investors, trade with traders', we put same trade as we give you, so we will also provide with the proof of the same to you. This is called 'trade verification proof'.

So, what we give is 'Trend Trades'. Yes, We give TRADES and not tips. We give trend trades because trend is out friend. For investors going against trend is profitable and for traders going with the trend is profitable. So always remain with the trend, be it up or down, we do not care. We just care about finding trend and remaining with the trend.

EQUITY, COMMODITY, FOREX TRADING: 2 BASIC APPROACHES/STYLES

STOCK TRADING STYLES, STOCK TRADING APPROACHES, COMMODITY FOREX TRADING STYLES, COMMODITY FOREX TRADING APPROACHES...

Below are 2 different and diverse approaches to trading. These are not system but approaches.

1. JUMP AND TRADE APPROACH:

The basic feature is not to wait for sl when the line is going against you and many times not to wait for tgt when the line is going in favor of you.

Here the market is very volatile. There are bigger opportunities to grab and to miss. The markets are many given break out or it is trading at further support or resistance after giving the initial breakout with bit moves.

There are usually also many news factors and new pressure is also higher. There are multiple news factors from domestic and international levels.

In this approach ultra alertness is required.

Apparently higher churning and turnover takes place.

Losses are mostly limited so in that sense it is very good approach to keep the losses short.

It doesn't mean that you do not average on the winning side and not extend your target if you feel so.

There is good chance of missing profits due to premature exits.

2. SL AND TARGET APPROACH:

This is a standard and systemic approach.

You have made a system of risk management, risk reward ratios are predetermined by you and you strictly follow it in most or all trades.

You stick to SL even if you are long and there are all chances of hell breaking loose. At the same time you remain in position till the target is achieved even if it is taking time for any of them to occur.

When market has reasonable movement then even 2-3 trades can fetch good profit due to wait till the target and absence of premature exit.

Review of system is more possible and practical at the end of duration in this approach.

This system is cool and calm, does not require ultra alertness, you can place limits and relax for days.

This is particularly effective approach when markets are moving from one end of the range to another or when market are slow but in trendy or untrendy but consolidating with room for individual stock movement in individual sectors.

© MEGHA INVESTMENTS AND RESEARCH.

The Shape of Indian Economy 2003-2004, 2008-2009, and 2012-2013

The Shape of Indian Economy 2003-2004, 2008-2009, and 2012-2013

THIS IS IMPORTANT FOR YOU...create side income from trading and build long term wealth and future financial requirements from investing

THIS IS IMPORTANT FOR YOU...create side income from trading and build long term wealth and future financial requirements from investing

How handful of people ate the cream of Indian Economic Growth! Ajim Premji, A Case Study: And Why You Are Responsible For Your Own Financial Good and Bad In This Age:

How handful of people ate the cream of Indian Economic Growth! Ajim Premji, A Case Study: And Why You Are Responsible For Your Own Financial Good and Bad In This Age:

If you are reading this than you must be aware that stock market/capital market is the barometer of the economy and it is the place where you trade the growth of the economy. But how many out of the entire population eligible to invest has invested in this growth of the country? Have you ever wondered that there are only 3-4% population of the country that is invested into stock markets right now (including mutual funds) and why so? The ratio of entire country’s population invested into stock markets run somewhere between 20-50% in China, USA and other such economy. The lower equity participation is also one of the reasons why India, after 20 years of liberalization has not been able to come on the fast track of sustained growth rate like China and other Asian peers.

The point we are discussing here is however distinct.

What we want to throw light is here that how handful of promoters have ate the cream of privatization and benefited from the liberalization of the economy.

We will take only one example or case study here. The IT sector is one of the major beneficiary of the liberalization process. Wipro has been among the top 5 IT companies among Infosys, TCS, Patni, Satyam, Tech Mahindra and a couple others.

Quote on 'Discounting' in market

13 Cognitive Biases to be aware of by traders and investors

Here are 12 Cognitive Biases that prevent human beings from behaving rationally.  As perception is reality in the financial markets, I thought it might be useful to address those issues through the lens of a trader.

1. Confirmation Bias

This is a fatal flaw of trading; we tend to surround ourselves with information that validates our own point of view and dismiss input that conflicts with our reasoning (also known as cognitive dissonance).  This is the primary reason why we always strive to see “both sides of every trade” as the residual grist between variant views is where education—and profitability—resides. 

2. In-Group Bias

This is a manifestation of confirmation bias, or the tendency to surround ourselves with those who share similar takes on the tape. This could pertain to our physical environment or a virtual experience, such as Twitter.  Not only does this provide a false sense of security in our individual viewpoints, it makes us suspicious—or angry—with outsiders who dare to question how we feel.