Monthly Archives: February 2015

Various Skills required for Stock market analysis

To efficiently perform stock market analysis, one should work on following areas

  • Mathematics: Mathematics is a base of the stock market. You will frequently need to perform lots of calculations in  your mind when you are trading in stock market. If you are not in touch with mathematics, then you can simply buy academics books of 6th 7th, 8th and 9th standard students. They all have ration and percentage questions and equations. You don’t even need to study the books of 9th grade. If you can easily remember all mathematical percentage formulas then you will hardly lose money in stock market. 
  • General knowledge: Please keep reading daily newspapers, especially economics times or business newspapers. They are full of corporate and government policy news. They will help to select right company share when you want to trade in stock market
  • Family: This is the most important: While trading in stock market, your mind will always be under lot of expectation like rise of share price. Such things incurs lots of mental tension and hence you will need to regularly get indulge in your family activities like outing, playing with kids. This will help you remain calm during the stock market crash.

hope this helps

Profit and price relation in share market

If you see dark clouds in the sky, does it mean it will always rain? Noo.. It will not. Same relation can be found in share market. If you come across a news that mentioned particular company has earn some profit in some quarter result, then it does not necessarily means that share price of that company will rise. In-fact, this might be a trap for sincere traders like you.

Smart traders will try to accumulate share and will raise a price bit by bit to make a bait for you so that you will feel that, oh wow! this company recently got profit and lots of people are buying shares. 

Don’t fall into such traps. Because as soon as you purchase share of such company, smart traders will immediately sell out their shares and will leave you in pit hole from which it will take some days to you to recover your money from it. 
Be sincere and smart trader and keep your emotions aside when you investing in stock market. 

Do you know Basic principle of share market trading?

Below are very basic fundamental rules in stock markets.

1) Never take a loan or borrow money from someone if you want play in stock market or If you would like to invest money in stock market. Always buy stock from you available money.

2) Don’t purchase the share if you don’t have enough finance to purchase them.

3) Don’t go for margin transactions unless you are extremely expert in the stock market.

4) When the price of the stock is falling down, make sure to convert the intra-day stock into delivery based product so that you cannot lose the money

5) Profit is a profit, so if you have made small amount of profit or large amount of profit then it doesn’t matter. Profit is profit and never to lurk for the maximum profit in stock market. When price of the stock is above the purchase price including the brokerage then immediate sell out the stock and get out of it. Don’t keep your personal feeling or emotion with company in a thought that company will grow and price will rise more and you will get rich after some month or so.

6) When you enter into stock market then please take the broker who take less brokerage charges. Once you have become the expert then you can switch to higher standard broker companies.

8) When you are purchasing the delivery product then make sure you are purchasing the share of good companies and not the any unrecognized companies.  It’s your money. So please careful while investing the money.

9) Final and most basic rules it that. Always listen to yourself. Don’t purchase or sell the shares based on the judgment of some other personal.

How to pick up companies for stock purchase and trend analysis

You would currently see many sites providing the stock market analysis and related trend information these days. Its easy to watch the video and learn from them but when you would start actually buying a share, you would definitely come up with a question that how the hell I would know which company I should pick for analysis and trading.

Answer is very simple, select the share or equity which has highest number of the quantity traded in
last month. Why is that so? Because when you see traders placing orders, everyone wants the profit. So when a share is traded, someone earn profit and someone will lose the profit. The group of persons who earns profit, would like to see the share price to go down again and hence they would place tiny orders of share in low price to accumulate the share price. On the other side, the group of people who have lost profit will buy more shares in tiny orders to raise the price of the share. This way there is always a tug-of-war between buyer and sellers or in stock market world we call them as bulls and bears
Ultimately, you would see such shares falling into high number of trades. Hence you can pick up any share that was traded recently in high quantity (around millions) and go for analysis to further study and purchase the share.
Hope this was useful.

Feature Topic – Software & Services Sector Listings on Hong Kong Stock Exchange

Software & Services (a sub-sector of Information Technology) constitutes about 5% of all listed companies on HKEx. As of 31 December 2014, there are 86 Software & Services companies listed on HKEx, including 52 Mainland enterprises, 28 Hong Kong companies, 1 Macau company and 5 international companies (Japan, Malaysia, Taiwan, Canada and US). The average P/E ratio for this sector is 21.8 times as of 31 December 2014. IPO fundraising activities of this sector have been strong in the past few years. During November to December 2014, there were 2 listings from Software & Services sector raising a total of US$179 million funds.