Category Archives: Stock Markets Tips

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.

How to make profit in stock market

Stock Market neither a game nor it is a sweepstakes where you would instantly earn loads of money. It also doesn’t mean, if you know everything about stock market and you will always win.  Considerably there are only three thumb rules in stock market. Below thumb rules will always land you in profit side in stock market.  But all in all you only require two things, patience and time in stock market or stock exchange. 
1.      Buy when stock is low and Sell when High: This is plain and simple logic that even a school boy can understand. Buy stocks of a company only when their rates are low and sell stock when price goes up. For example, Union Bank of India started with stock value of Rs16 and currently stock rates are going near Rs200. But in two months ago Union Bank of India stock’s rates were around Rs90-Rs100 but some year’s back they were boosting to above Rs300. Union Bank of India entered stock market with face value of Rs16. So since it has already crossed stock value Rs300 per share last year, Rs100 can definitely considered as low with current stock market rates. So it’s always good chance to buy them at such rates which are below half value of their highest value in previous years. and provides all history records. Hence anyone can go to their site and look up for highest and lowest stock rates. 
Once stocks prices goes up, just sell it. Don’t lurk for large profit. You could buy 10 shares and earn more profit rather than chasing profit on single stock.
2.    Buy Good company shares only: You should only buy the stocks of company which are rates A and B grade. Stock exchange provides a rating for every company based on their performance in market. Always buy stocks of good company. For this you can go to website and check for A rates companies. Most of them will have higher stock rates. So if you are willing to buy NOT SO FAMOUS company’s rates, then you can go to respective company’s website and check their last quarter performance. As per ISO standards, every registered company has to provide their company performance reports and you can dig such company’s websites for information on their performance. Don’t buy shares of companies which are recently entered into stock market or companies never heard. Companies like Ashok Leyland are top companies but they have low share values than Union Bank of India. So buying such company’s shares are always safe.
3.   Never buy stocks when stock market is sinking: This is again very simple logic that you can implement in stock market.  During storm, Will you stand out of your house during or inside the house? Never put your money or buy any shares if stock market is in continuous fall. If you will, you will always fail. Hold your shares and sell only when stock rises.
With above simple rules in stock market, you will always earn profit. Please try to understand, stock market never produce money. In stock market, money just get transferred from one man’s pocket to another. So have some patience’s after you buy stocks and sell them only when price goes up than your purchase value.