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How to prepare yourself before entry in the stock Market

I heard from most of the non-investors that it is easy to make investments in the stock market, but they do not do that because they think the stock market is similar as the gambling (Both are different from each other and I already clarified you this in my previous article based on the myths of the stock market). If you are new in the stock market maybe you also think the same, all it is because you are not into the market yet, but in reality, it is a tough task and how tough it is, you will get it once you entered into the market (you can also clarify your thoughts from here Epic Research). If you are really excited to enter into the market you have to prepare for it first, and how you do that I am telling it to you. For the preparation, you should ask yourself these three questions such are :

Why do you want to invest in the stock market, for money? Obviously, you are, but is it the only reason to invest in? Do you know that you also have to give so much to earn more I am not talking about the amount of money that you going to invest but along with the money it also requires your learning, your patience and the most precious your time? I don't mean that investment is the wastage of the time, but it is really good to invest in just because when you invest in some company, it helps the company in its growth. So be prepared to invest your time too. If you ask the best thing for investments most of the people would suggest you to do real estate investments either it is good and have no risk but you need a lot of money to invest in the real estate but in case of the stock market you can invest very few amounts you are able to.

What stocks you have to invest in? If you want to enter into the market obviously you have to know how to enter. Do you have to know what stocks you are going to buy for entry? There are some options of stocks you can select it based on your analysis and risk bearing factors, such are: Equity, Commodity, Forex, Index Futures, Options, and Futures ( Here I am giving you a quick intro of all of these but I will define and simplifies each of its in details in my later articles one by one)

In equity, if you invest Rs 1 you can take the leverage of 1. Is it tough to understand? Okay, you can understand it as in equity if you invest Rs 1 you can take the things which value is one so here leverage means that value, get it? Same as In futures if you invest Rs 1 you can take the leverage of 5. In Index futures, if you invest Rs 1 you can take the leverage of 10. In commodity, if you invest Rs 1 you can take the leverage of 20. In options, if you invest Rs 1 you can take the leverage of 50. And if you invest Rs 1 you can take the leverage of 400 in Forex. So higher the profit you want higher the risk you have. Select Stocks as per your temperament, and disciplines.

The last one is when to invest in the stock market? Yes, you read it correctly, time is also an important factor when you entered the market. And generally, before the budget is the best time to invest in the stock market. Do you remember when our previous government passed the budget yet before, it was the best time for the investors as the market was high? After that, the market went down and then increases at a slow rate. How an Indian market run is based on the two factors first is the growth of the company and the second one is the psychology of investors. If psychology of the people said that the market goes up it definitely goes up. In India, this psychology drives the market.

Planning for your investment? Don't wait, go for it. Make plans based on the above three questions. Keep in mind it is just to do homework before as well as after the investments you made in the stock market.

About the Author :

Hi everyone, I am a financial analyst in Epic Research. I like to read and write about the stock market. Hope the above content is readable and easy to understand for you.  

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Some Myths Of The Stock Market

A vast term that is required so much learning to understand it – “The stock market”. Of course, you all know about the simple definition of the stock market, But be honest and ask it to yourself what is the very first thing comes in your mind when you hear the term “Stock market”? Is the stock market scares you? Do you have any concepts that make you scared to make an investment in the stock market? If your answer is yes, it is necessary for you to clear out all of the false concepts that you have regarding the stock market because the reality is different. So you can take advises from the financial firms viz. Epic Research. So shall we start? Okay so there are some misconceptions of the stock market, such are:

The very first misconception that everyone has is that the stock market is the “gambling” and you are a gambler if you have any investment in it. Either there are some similarities between them but there is one difference that you can not change the probability of winning or losing in the gambling but you can change it in the stock market. Hence this one difference make both the terms different from each other. 

The second misconception of the stock market is that You must have a lot of money to make an investment in the stock market. But the reality is that you can make an investment with a very few amounts it completely depends on you that how much amount you have to invest in. Many successful investors start their investments with a few amounts.

Another misconception is the Stocks that valuation arises must be fall by the time. No, it's actually not. The valuation of the stock is based on the performance of that particular company. If you have an investment in such a company that is managed by the professionals than there is less chance to fall. So the valuation of the stock based on the performance of the company.

Another myth is that little knowledge about the stock market is sufficient to invest in. what do you think are only knowing the definition is enough for you to invest in? I think it is not. It is similar like only knowing the alphabet is not enough for the one to write a sentence or a word, for writing a word or a sentence one needs the knowledge of placing the correct letter on the correct position so that the word or the sentence make any sense. So if you really want to succeed in the stock market it is the must for you to have complete knowledge of it. Don't worry I am not saying you to do the masters in the stock market all I want to say is to take knowledge of each and every single term that is related to the stock market.

Another myth is that the forecasts of the trading are accurate to rely on. But the truth is that the stock market is quite unpredictable. One cannot easily predict the daily ups and downs of the stock market. But if it so how one can earn the profit on their investments? It is simple to study makes you perfect in it. We focus on market activities will help you to earn a profit.

One more myth is that non-investors thinks that it is simple to invest, what you have to do is just to buy at less and sell at high. But in reality, not only for the beginners but also for the experienced investors it took time to understand when to buy stocks and when to sell. Sometimes one wrong decision and you get the loss.

Obviously, the above myths make someone scared to invest in the stock market. That is why I am saying you to do hard work because the stock market requires lots of efforts and more and more learning about the stock market as you can. Up to date with the stock market daily updates. Clarify your thoughts of the stock market and freely invest in the stock market to earn the profit.

About the Author :

Hi everyone, I am a financial analyst in Epic Research. I like to learn and write about the stock market. I put my efforts to create the following content and really glad to share my learning with you.

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Explanation on the types of the stock

Greetings to all! Hope all of you are doing well. I am here with the second part of the Stock market learning (also on Epic Research) article. In my previous article, you read about what the stock market is? Hope you read that article and understand it. Let's Start further.

What do you think about how a company starts? To start a company there is a need for unique ideas and obviously money to invest in. Suppose there is a company that founded with three partners and 2 investors with a great idea of the business and some investment at that time these five are the partners of the profit that the company generates. After some time this company needs more amount to invest in for the growth of the company for that it needs to sell some shares that would definitely decrease the percentage of shares these five have. Since the company grows the early investors sell their stocks to earn the profit on their investments. That is why the company need more money and it allows a public figure to purchases its share. The investment of that five of the company is private and the stock that is sold to the public figure is public stock. Is it hard for you to understand? Don't go for the deep sense, just keep in mind that not only an investors ( like your friends, family member or you too) purchase shares but also the insider of that particular company also have some percentage of shares.

There are mainly two types of stock. Such are:

1. Common Stock: Maybe you heard about it because commonly most of people talk about this kind of stock. These are the stocks that have a higher rate of return than the bond (don't confuse with the term “bond” I will explain it further in this article). There is more risk in these stocks. If you purchase common stock of any company you have one voting right with it, that help you to vote board of directors of that particular company. So I think through these details you get the simple definition of the common stock that is “ Common stock is the type of the stock in which along with the stock you also have one voting right”. Now talk about another type of the stock i.e. Preferred Stock.

2. Preferred stock: This is another type of stock. In this type of the stock, you don't have a voting right (in some cases you have a voting right in preferred stock, so it depends on the company of which stock you purchased). It has less risk when compared with the common stock. The company has a right to repurchase preferred stock from you when required or when such a situation occurred (only if you are the purchaser of the preferred share of that company).

When we look at the above two types we only get a difference of voting right between these two. But there is more difference between them. One of the difference is that there is a fixed dividend on the preferred stock whereas dividend of common stock vary (In some cases there is very dividend on preferred stock too, it depends on the company). The another and the important difference is that when a company is out of business the dividend of the company firstly distributed to the creditors, bondholders and then the preferred stockholder and after that, if some amount remains it distributed to the common stockholders equally. So there is no guarantee of the returns on the common stock. This is the reason that common stock have more risk.

When a company needs money to pay off bills, or for growth or for some other reason rather than taking a loan from the bank it takes money from the public figure and provides them a bond at a fixed rate of return. At the stage of the bankrupt of the company, it firstly pays to the bondholders.

A company can have more classes of the stocks it totally based on the company to company, that fits the investors of the company. A company has classes of the stocks to concentrated on the voting power. How a company does it? By dividing investors into groups. One group have ten voting rights per share but this group has a limited member, and another group has one voting right per share.

About the Author :

I am a financial analyst in Epic Research. I like to learn and write about the stock market. I tried my best to write in such a way that it is easy for everyone to read and understand. I will further upload more article related to the stock market for learning purpose. Hope you are interested to read it.

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Basics of the stock market the thing you should know about

Are you new to the term “the stock market”? If yes and want to know about it (You can also know it from here Epic Research), then you are in the right place at this time. Why am I saying this? You get it after reading the whole article. And for the one who already familiar with this term for them to know more about it is not bad at all, right? Of course, it is right because the stock market is such a vast term that require more and more time and learning each and every day about it to understand it closely. So without wasting the precious time of yours let's start it.

The stock market you definitely hear that two words in your life either you know or don't know about it.   Do you ever think about it that what makes others talk about it? If you are an investor then you definitely know it but that time I am talking to the one who isn't an investor. Is it just about the money that everyone talking? Not at all because they're so many ways to earn. When I am saying earn I mean to earn money by money. Each and everyone wants to earn more and more that they fulfill own and their family members need. Perhaps not only the need but to show luxurious status. Perhaps there are other ways too to earn but here I am only talking about the stock market, Why so? you understand it in the future. For yet, you have to understand what stock market is?

To understand the stock market in a very general essence let's split the term into two words first is stock and second is market. What do you understand from the word “market”? A place where the one sells and the other is purchase a particular product and as a purchaser, you have to pay some amount to purchase that particular product to the seller, yes exactly. So you know about the market now you have to know what stock is? Stock or in other words, you can say share or equity is the product that is sold and purchase in the market. The stock is a part of the company that you purchase from that particular company and for that, you pay off some amount to that company. How many parts you have of that company is depending on how much you pay to buy that. I think now you understand what the stock market is? “A platform where one sells and other purchases the stock.” It sounds simple, Right? But it is not as simple. As I said before it is too vast to understand.  

If you really understand the meaning of the stock market then definitely you are thinking about that if you have to pay money to purchase the stock then what is a need to purchase it? Maybe you are wiser than me that you know why one purchase? But initially, when I started to learn about the stock market this question arose in my mind that why a company needs to sell stocks and one purchases it?  I visit many pages to find my answers. And I get to know that every company needs a huge amount to increase its market, to run the business successfully, and to grow. And when you buy the stock you actually invest money in that company capital that helps that company to run its business. But the thing is that what makes someone exciting to invest in a particular company or say help to that company in its growth. As you also know that Todays, no one helps anyone without any profit? Yes, you get it right, the profit. Profit is the thing that makes the one excited to invest in a particular company. How you get the profit is based on how the company performs in the market. However, is it not the right time to know how the company earns and how you get your profit over the stock that you purchases. We will understand everything about the stock market Steps by steps. Till that do your homework that understands what share market is? Honestly.

About the Author :

I am a financial analyst in Epic Research. I like to learn and write about the stock market. Here I start to write about the stock market from the very basic for the learning purpose. Hope it will interesting and simple for you to understand. I will post more articles step by step to let you people know about the stock market.  

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IMPACT OF THE ELECTION 2019 ON STOCK MARKET

Every investor thinks about the Lok-Sabha election in 2019. But why? Why investors are worried about the results of the election? What is the impact of the election on the stock market? Why everyone who associates with the stock market says that the election 2019 is a key trigger of the stock market? There are a lot more answers to find, right? So let's come to explore these.

Firstly, Let's start with the definition of the stock market, for the one who is not familiar with this term. What stock market actually is? “Stock market is actually a platform for exchanging of financial assets by buyers and sellers. Every company (Viz. Epic Research) needs a huge amount of money to grow its business. Stock market allows companies to sell their shares to the public figure.” Is it quite tough to understand? OK fine. Let's take an example that you are an owner of the company ABC, and to grow your company you need a huge amount of capital, in this situation what are you going to do? Either you can arrange that amount from your friends or family member or you can sell your company shares to the public figure. The people who purchase your company shares are the investors who invest their money in your company, and the platform that you use for these exchanges is the stock market.

If you found this topic interesting and you are really curious to know about this then definitely a question arises in your mind is that Why investors find it wealthy to invest in shares? Isn't it? What do you think about it? What it makes someone invest their money? In my point of view or maybe in yours too the return on that money makes the one invest their money. Perhaps, Banks also provide a return on your savings but the return is too less 3.5-4%. So if your money makes you possible to earn more money obviously you can invest it, right?

If you are an investor you want to know about the company in which you are going to invest just because the shares are completely based on the company even its price depends on the supply and demand of the stock. Then, why investors think about the elections? Why election matters for the investors? Is there any relation between the stock market and elections? Of course yes, there is a relation between the election and the stock market. So if the election and stock market related then how? And the answer is the stocks of any company are the parts of finance and economics. Every company that is either national or international have to follow the norms that are created by the government of the country. Every company has to follow the policies that are made by the finance and economic department of the government. When we talk about the upcoming election, after the election the government may be going to change, then will definitely the ministers of the finance and economic department change, and the result is changed in the policies and economic decisions. Share prices based on these economic decisions and this is the only relation between the election and the stock market. These economic decisions are favorable for the company or not will decide the price of the shares and industry growth.

Suppose you are an investor and want to invest in a company named XYZ, What is the first step you take in. You are analyzing the company past statement, how a company performed in the last few years. And then you are performing a fundamental and technical analysis of the stock market and so on. Is it sufficient for you to decide that you have to invest in it or not? Maybe for you it is sufficient, and you are not completely wrong but there are some more factors keep in mind while taking the decision. Obviously, you invest money to gain not to lose, so it is must for you to investigate mini to mini factors that able to do a drastic change in returns. If we talk about the current situations, our present government made changes before policies. The respected government introduced GST. They made changes in taxation, export, and other financial policies. So these policies definitely impact on the performance of the company and hence you also taking care of these too.

Let's see the table inserted below that contains the figures of the Sensex in the period of the past four governments.

It is easy for you to understand how the government impact on the market?

The one & only and the most important reason that the investors are thinking about the election is that the upcoming government formulate the policies and economics decision and these will impact on the company growth.

In conclusion, the company growth is mapped by the election. Whether it is expected that the upcoming election will boom the market, but situations may get change. That is why as an investor you have to analyze the situations. If you are a short term investor you have to focus on the market news, sector news etc. And if you are a long term investor you have to perform fundamental and news analysis. Your years of experience will be helpful to you in these analyses.

Author's Bio:

I am a financial analyst in Epic Research. I like to learn and write about the stock market. I started to write articles on the stock market. I hope that my article is helpul for you and is interesting.

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How to deal with the losses in stock market?

Stock market gives you numerous opportunities to earn profit. However, at the same time it is very risky too. So, there are chances to loose money at some point if you invest in stocks. In order to avoid the chances of risk traders have started taking financial services like Indian stock market tips for tomorrow from the well known firms. Because losses are bound to happen sooner or later.

Loss in its simplest and perhaps in the most painful form is when you buy a stock and then you watch the price go down and stays down. At some point of time you decide to sell stock in order to end the pain. This kind of loss is called as a capital loss because it involves an actual dollar amount. For tax purposes you can use a capital loss to offset profits which is called as capital gains. However, beyond that, they are just a painful investing lesson.

Lost opportunities-

This type of loss is very real, however it is less painful. You might have bought Rs. 10,000 of a hot growth stock and then one year later after some ups and downs in the market, you find the stock is very close to the price what you paid for it. You might feel and also tempted yourself by saying that “atleast I didn’t lose anything”. But this is not true. For a year you tied up your money and received nothing in return. Even if you had bought a bank CD i.e, certificate of deposit, then it would have earned you at least a little bit of interest.

You are losing money when a stock goes nowhere. Here, you have lost the opportunity to invest your money in something that would have earned you a positive return over and above the risk-free return and this is a true loss.

Missed profit losses-

When you watch a stock make a significant run-up then fall back, then the loss results is known as missed profit losses, something that can happen with more volatile stocks. Many people are not successful at calling the top or bottom of a market or a stock. You might feel that the money you could have made is lost money or the money you would have had if you had just sold at the top.

There are many investors who sit tight and hope that the stock will recover and regain the high, but this is not always the case. Even if it regain the high then too many investors are there who still hold on hoping for even greater profits only to see the stock retreat again.

Everyone want earn profit on their investments and no want to suffer any kind of loss. The best way is often to cut your losses and move on to the next deal. Taking investment ideas are also very good option. Hence, many traders are preferring market related tips such as nifty derivatives, which in result give great returns with less chances of risk.

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Meaning of insider trading and how it is conducted.

Insider trading also known as insider dealing is trading of shares by any insider like manager or executive based on information which is not yet made public. It is usually prohibited by the law and it can be legal or illegal depending upon the piece of information which is used is made public or not. Some investors may involve in practicing legal insider trading as they believe insiders have better insight about companies performance and goals. Member of management buying shares of their company often conveys positive message in market, but illegal insider trading should never be practiced. Traders can take help from financial advisory services providers to know about useful trading strategies and precise levels to trade with.

Following are some ways by which insider trading is conducted:

1) Members of company

Employees who are working is any public traded company have access to information which are not easily available to public. They make use of this information and buy/sell shares based on it. By doing so they expect they will earn good once the information is made public.

2) Different professionals

Bankers, lawyers, brokers may have access to confidential information of their clients. They make misuse this privilege and buy/sell shares based on the information they have learned.

3) Government officials

Government officials can get access to different confidential information while execution of their duty. They may perform insider trading using this information.

4) Hackers and thieves

Clever people find number of ways to get access to company's confidential information. Once they get access they may make use of such information and trade on the basis of it.

An innocent investor or trader may perform insider trading accidentally. Following are some precautions which you can take to save yourself from doing so :

1) Rely on usage of reliable and authentic source of information while trading in market. If any person is providing you any kind of information then make sure that information is available at other sources as well.

2) Inform suitable authorized person if you come across any piece of information related to your portfolio which is not yet made public.

3) While working in a company if you are having access to its confidential information then do not use it for wrong purpose.

It can be concluded by saying that insider trading is considered to be illegal in most of the cases. So before you make use of any information while trading always make sure that information is easily available to public also. If found guilty, fine may be imposed on you or it can even lead to imprisonment. While trading in market traders can use mcx tips and other experts suggestions to earn expected returns and accomplish their trading goals. Discipline is one quality that every trade must posses for becoming a successful trader. Indisciplined trading practices are not going to help good from market on long term basis.

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Brief introduction to momentum traders and their types.

In stock market there are different types of traders, momentum traders are those who are looking for movements in stock's prices. Once they identify movements in price they take long or short position  in that stock and hope that this momentum will continue in upward or downward direction. This strategy is more dependent on short term price movements and therefore trader here trades with stocks which are moving significantly in one particular direction on high volume. Time period for which a trader will hold his position depends on how fast a stock is moving. To earn good  profit from market often traders prefer to use mcx tips of proficient market experts. These traders are very different from other as they only focus on stocks which are in the news. Whereas other traders gives emphasis to different fundamental factors, technical charts and graphs and company's performance.

Types of momentum traders are discussed below :

1) Technical based momentum trader

These traders take decision on the basis of their perception that market is either being higher or lower than it is expected to be. To conclude this they study different technical factors. If they find that market is high then it is expected then they take take short position in stock and buy it later. On the contrary of they find that market is low than it is expected they buy stocks and sell them later.

2) Event based momentum trader

These traders take decision on the basis of different factors. They usually look for volatility in market which is caused because of some specific news or event in a particular trading day. When any news hits the market different traders perceives it differently and because of it high volatility is witnessed in the market. Once the news reaches mass traders market becomes more volatile and stocks affected by it tends to swing in one particular direction and this movement last for some time. Momentum traders make use of this time and plan rapid trades during it to earn maximum profit. These traders needs to be very attentive in market , a delay of seconds also can make them miss a good opportunity.

We can conclude by saying this momentum trading is all about identifying stocks which are showing strong movement in any one particular direction and are likely to last there for some time. Traders need to have exceptionally good knowledge about market for using such strategy and also they should be able to perceive different market news and updates correctly. Then only they can take the right decision and earn good profit for themselves. They can also follow share trading tips as suggested by experts of market to ensure that they are on the right path. Discipline and patience are two qualities which a momentum trader must have as without them it is really difficult to succeed in market.

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What is meant by preferential allotment of shares and why it is done ?

Preferential allotment is a process in which shares are alloted to a specific group of people or companies which are interested in it on preferential basis. Company which allots shares states that whenever it will pay dividend, preference shares holders will be paid first.This can be done by any company which is listed on exchange and all rules and regulations stated by SEBI are to be followed to do so. Traders often refer experts advise on mcx tips and more as they looking for consistent earnings from market. A company may decide to raise funds from public in order to meet different financial requirements. If they will go for issuing shares to public on large scale it will consume a lot of time and is complicated as well.  Among all methods of raising funds this one is most convenient as less paper work is required.

Why company go for  preferential allotment of shares

When a company wants to raise funds it can do so by issuing new shares to public or bulk allotment of shares. The main reason behind preferential allotment of shares is to facilitates shareholders who are unable to buy large chunk of shares from market as it is too costly or unfeasible for them. But these shareholders do not get any voting rights and they are paid only when company earns profit.

Benefits of preference shareholders

1) No brokerage costs is incurred and preferential shareholders get paid first when company earns profit and  after them other share holders are paid.

2) If any company has not paid dividend in present year then shareholders has right to claim this dividend in the next years.

3) Capital of preference shareholders is always safe. If in case company fails or gets bankrupt then preference shareholders will be paid first among all.

Along with these advantages it has some drawbacks as well. No voting rights are issued here and it is risky than bonds. Also when company gets bankrupts they are paid after NCD (Non Convertible Debentures).

Some companies start performing well after preference allotment of shares. The reason behind this may be that they have used raised funds in an efficient manner. And if some well informed veteran investors have invested in them then definitely it will drive the growth of business. As per needs a trader may decide whether he wants to go for preference shares or common shares. Also they can take guidance from some financial advisory services providers to take optimum decisions while trading in stock market. They assists with useful experts recommendations after carefully understanding present market conditions. Though extra cost is involved to get such experts recommendations but it helps traders in improving their trade results.

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What is meant by multibagger stocks and how to identify them ?

Different investors have their own goals which they want to accomplish by investing in stock market. Some of them who wants to earn high returns from short term trading are the ones who looks for multibagger stocks. Though these stocks do not perform well at present but they have good potential to perform in future. Financial advisory services providers can be consulted to get recommendations on such stocks. Multibagger stocks are those which can offer returns which is several times their costs. They have strong fundamentals and thus they attracts investors.

It is not an easy task to identify multibagger stocks. Following are some guidelines which can be referred to identify them :

1) Understand all basics related to stock market as you need to have really good familiarity with different terminologies used in market to find multibagger stocks.

2) Generally these stocks belongs to small cap companies which have strong fundamentals and likely to perform exceptionally well in future.

3) Check for companies debt level. Although there is no benchmark for this using which an investor can compare as it varies from different industries. But it should be assured that it is not more than 30 percent of the total equity value.

4) Look for companies sources of earnings. Such information will help in understanding whether their primary revenue segment is likely to grow at macro level? If is it so , then you can say its stocks are multibaggers.

After studying different stocks you may find that many stocks have good potential to become multibagger stocks. But the truth is among 8-10 potential stocks present in your portfolio only 1-2 stocks will meet your expectations.

These stocks are not meant for every investor. Before investors decide to invest in these stocks they should ascertain some factors like :

1) No need of cash in 1-2 years

2) Risk bearing capability is high

3) Steady cash flow from investment is not expected

All multibagger stocks have to face tough market conditions before they rise. Some of the top performing companies have also faced 50-70% crash from their peak in adverse market conditions. Therefore if you have some really good risk bearing capability and you do not have to worry of invested cash for long period of time then only you are suitable for making an investment here.

Not all good companies are capable for generating multibagger returns. Timing plays a vital role here. Investor needs to buy stocks at the right time and also sell them at the right time. Investors can make use of experts views like trading tips, mcx tips and more while making an investment in different segments of market to ensure their good earnings and manage risk in a better way. Multibagger stocks demands for good patience. Investors who are new to market should never prefer to invest in them.

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Useful guidelines to efficiently monitor performance of stocks.

Stock market is of highly volatile nature and keeps on fluctuating. There are several economical, political and global factors responsible for it. Depending upon the conditions market follows upward or downward trend. In order to plan wise trading strategy traders needs to monitor performance of stocks  and identify which strategy is going to help them in earning good returns. For better results traders may also refer experts suggestions like mcx tips and more. As sometimes traders do not have sufficient knowledge about market and are not able to wisely plan their trades.

Having a good understanding of stocks helps in taking better decisions at the time of trading. Some useful guidelines to monitor stocks performance are discussed below:

1) Explore stock tables

Stock tables can be easily found on Internet or in business section of any newspaper . They provides with useful information like changes in value of stocks from previous day , different trading activity and more. Learning such information will help to determine whether the stock is performing well in market or not.

2) Pay attention to important news about the company

Companies issues annual, half yearly and quarterly reports which can referred for learning about its performance over a period of time. Along with this a trader should also keep himself updated with all the recent activities which company is performing. Stock prices gets affected with these activities and therefore traders should pay attention to important news about the company.

3) Use benchmarks for comparison

There are different benchmark indexes like sensex, nifty and bank nifty. Compare stock performance with these benchmark indexes and identify whether stock under-performed or out-performed the index. You need to have a good understanding of different financial ratios for performing such comparison. In case stock is under-performing index from long time then trader should look for reasons behind it and then decide whether he should continue to trade in it or not.

4) Learn about the market trend

Depending upon the conditions market may follow bearish or bullish trend. Stock prices are not only affected by activities carried out by an individual company but also from market conditions. All important information related to market performance is easily available on the Internet.

Above mentioned guidelines can be used to monitor stocks performance in an optimum way. Sometimes traders are not able to study such factors on their own as they do not have good familiarity with different terminologies or may be they do not have sufficient time to devote in market. Financial advisory services provider can be consulted in such cases. As they have team of market experts who studies different important factors related to market and then according to market conditions suggests best levels to trade with.

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Which indicators are used to assess the value and growth potential of a stock ?

Indian stock market is a well diversified market and it comprises of stocks belonging to different sectors. Traders face a lot difficulties to decide in which stock they should trade. It is very important to select good performing stocks as performance of stocks will only decide what returns you earn from market. Often traders prefer to follow trading tips, mcx tips as suggested by experts of market to be on the safer side and earn profitable returns from market. Studying different fundamental and technical factors related to stocks helps in understanding whether a trader should trade in it or not.

Following are some indicators used to asses value and growth potential of stocks :

1) Earning per share (EPS)

EPS is the measurement of profit made by a company over a year divided by total number shares issued by it in market. While calculating EPS, preferred shares are not included only common shares are included.

EPS indicates the amount shareholders will get for each share they hold if company distributes its profit. This ratio helps in understanding which companies are performing well. Companies which shows steady growth and earnings are likely to perform well than companies which have inconsistent earnings.

2) Price to earning (P/E) ratio

Among all indicators this is considered to be the best. Though P/E ratio has some imperfections , it is the most widely used indicator for valuation of stocks. It is calculated by dividing current market price of share by company's EPS. All information required to calculate this ratio is easily available on Internet or reports issued by companies.

3) Debt to equity (D/E) ratio

This ratio is a leverage ratio. It is calculated by dividing total liabilities by equity. This indicator helps in understanding how much suppliers, creditors have invested in company and how much shareholders have invested. It is easy to calculate this ratio and determine equity- liability relationship of a company.

4) Dividend yield

This is basically the measurement of return on dividend as a percentage of stock price. This ratio is calculated by dividing annual cash dividend per share by current market price of stock. You can determine how much cash-flow you are getting with the help of this indicator.

These are few indicators which can be used for assessing stocks performance. Along with these there are many other indicators as well which are sometimes not easy to determine as well. Stock market traders can consult financial advisory services provider to pick good performing stock if they lack in sufficient market knowledge. Traders can use these important indicators and learn  in which stocks they should trade. Market offers ample opportunities to earn profitable returns. In order to become successful trader, a trader needs to learn how to use these opportunities  in most efficient manner. Earning good returns from market is not much difficult, stay disciplined and well informed to sustain here and earn well.

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What is meant by post/pre/after market orders ?

Indian stock market has become a good source of investment know. Every individual trader has its own trading goals which he wants to accomplish from market. Depending on the goals and risk bearing capability traders decides using which financial instrument and strategy they should trade. For ensuring their good earnings and boosting returns from market considering experts recommendations on mcx tips and more is really helpful. Sometimes traders can not trade at particular time and therefore to facilitates them to trade in an efficient manner market offers different ways using which orders can be placed.

Meaning of  post/pre/after market orders is discussed below:

1) Pre market order

There is high volatility in market when it opens and to control this volatility NSE has introduced the concept of pre market order. Also this allows to get suitable effects of previous night news on stocks opening prices. The pre market session is conducted between 9-9:15 am on NSE. In this 15 minutes duration, during first 8 minutes orders are collected, altered or canceled and after this no orders can be placed. Therefore while placing pre market order you can place order in only first 8 minutes and that too in equities only.

2) Post market order

Like pre market orders, post market orders can be placed only in equity segment. The post market session is conducted after market is closed from 3:40 pm-4 pm. In this duration traders can place their buy/sell orders at closing price. For example at the time of market closing price of TCS share was Rs 850 then you can place post market order at this price level. The purpose of this order type is to facilitates traders to place their orders at LTP(last traded price).

3) After market order

Unlike other order types discussed above after market orders can be placed in all segments. As the name suggests this order can be placed after the market is closed and before pre market opening session is conducted. If you want to trade at market opening and because of some reason you are unable to do so then this order can be helpful to do so. All AMO orders can be canceled anytime before 8:45 am next morning. Also these orders are not immediately sent to the exchange like other orders.

Traders must know about these important facts related to market before they began to trade as lack of good market knowledge can bring them losses. Vague knowledge may help to succeed for short period of time but on long term basis it will not help. Traders can make use of financial advisory services to ensure good returns and manage risk in a better way. After carefully studying technical and fundamental factors experts of market gives suggestions to stock market traders.

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What is meant by seasonal investing and how to use it for your benefit ?

A seasonal investing has a start date, end date and price ups or downs between this time period. Stock market is of highly volatile nature and market performance is not only dependent on the time of year but days of month as well. Traders who have  picked  stocks wisely have earn good returns from market and those who have not it has been really difficult for them to earn well from market. For improving trade results precise trading tips, mcx tips and more can be used. Along with relevant information , some seasonal related trends , trends which have to do very less with stocks and economic conditions prevailing at present also influences the prices in market. Having a good understanding of seasonal effects is important because they often explains the reasons behind the frequent changes in market.

Following are the ways through which stock market undergoes seasonal change :

1) The December effect

Indian market perform reasonably well by the end of year but it is not true that it will give you steady returns at this time period. As global market is off during this month, we do not see much movements in market  and there is less liquidity in market. In this particular period traders can go for auto stocks as they tend to perform well here.

2) The January effect

In January budget is awaited therefore traders should be careful with their trading strategies here. It is advised to use stop loss level aggressively to protect their portfolio from market effects and perform well.

3) A new month and monthly change

With the changes in months it bring few new patterns in trading. Traders can use this seasonal investing trend for their benefit easily. A smart trading strategy which can be used here is trade only on the first day of a month. This idea is not necessarily fruitful in different segments of market. Therefore be careful while using such strategy.

Just like consumer goods witness ups and downs at different months the same is true with stock market. As some items have their best sales in some particular month, stock market has its best and worst months.

4) The Monday blues

The first day of week is difficult for people and tend have different effect on everyone.For stock market traders as well it is a hard day. Mostly on Monday you wont see market rising and if you are planning to buy a stock then Monday is not a suitable day.

Along with political, economic factors it is important to know about impact of different seasons on market. In order to sustain in market and earn good returns trader use financial advisory services . Also financial advisors can help you in understanding and identifying different patterns of market. This is true market keeps on changing but at different times it offers useful opportunities. It is on us to identify them make proper use of them.

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How stock market investors can build an optimally balanced portfolio ?

Every individual investor has goals which he is willing to accomplish by making an investment in stock market. To achieve these gaols and sustain in market on long term basis it is required to construct an optimum portfolio . An investors should ideally first learn about his risk bearing capability and design his portfolio accordingly. For improving returns from market financial advisory services can be referred as well. Investors should aim to maintain a well diversified portfolio as diversification helps to limit the impact of any particular asset class on your overall portfolio. At times some asset class do not perform well and some does, diversification helps to compensate the loss caused by one from the good performance of other. By balanced portfolio it is meant that specific portion of your portfolio allocated to each asset class is according to your desired risk/reward ratio.

Following are some suggestions to build  an optimally balanced portfolio :

1) Traders should avoid taking concentrated position i.e high percentage of portfolio should not be devoted to one investment. Ideally total value of your investment portfolio should be divided among different types of asset class.

2) You may opt for investment which can offer greater returns but consider the fact that high returns are associated with high risk. To protect your portfolio from market's volatility in any particular asset diversify your investment which will help in diversifying the overall risk. Your portfolio may consist of assets which have more or less risk then your risk bearing capability but you should try to maintain average risk of your entire portfolio according to your risk tolerance level. For example you can not face high risk in market then you should look for asset which can offer you steady returns.

3) Proper capital allocation is important. On basic level it is not difficult as your portfolio may consists of stocks, bonds and commodities but you can further sub categorize them on the basis of potential returns they can offer. First learn risk and returns associated with different asset class and then allocate funds to them.

Some common portfolio problems are discussed below :

1) Often investors follow a one sided approach i.e their portfolio consists of stocks belonging to particular sector.

2) Large capital allocation to one investment type is another one core problem.

Building an optimally balanced portfolio is really important to earn expected returns from market and control losses. Investors often do not understand how  important it is and tend to loss their hard earned money in market.To maintain an ideal portfolio there are some core basic rules which must be followed. If you are unable to design your portfolio then you may take advise from financial market experts or portfolio managers.

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How to design optimum trading plan while trading in commodity market ?

As commodities are of highly price volatile nature it is essential to have a trading plan before you start to trade in commodities. Having a sound trading plan helps in managing risk and return in a better way. For earning desired returns traders can rely on usage of experts mcx tips as well. Good returns can be earned from commodity market but not without an optimum plan. Traders with vague knowledge and poor trading plan often tend to loose their money in market. When a beginner began to trade in market then his experience, knowledge about market and different trading strategies is basic but with time it gets improved.Designing a trading plan is not a difficult task but it is time consuming. It is not required to design a complicated plan to succeed as even most of the successful traders rely on basic approach to market.

Below are some tips which can be used to design optimum trading plan in commodity market :

1) Decide the number of commodities to trade

Traders may trade in market on long term basis or short term basis. If a trader is active trader and is going to square of his position in market in short period of time then he should try to trade in not more than three commodities. However long term trader may look for more diversification and good opportunities in more number of commodities.

2) Account size

Many traders believes that they must start with some minimum balance in their account. However it is not true as account size is not responsible for losses in market.  Traders should learn about their risk bearing capability and accordingly trade in market. With less capital also good returns can be earned by following disciplined trading practices.

3) Trading strategy

The reason why commodity traders fail to earn good returns for themselves is they do not use wise trading strategy. Merely watching market news and learning updates timely is not going to help. Traders need to study different strategies technically and fundamentally and should also test the results of strategy using past data.

4) Study risk factor

Before entering in market to trade a trader should know about his risk bearing capability. Trading should be done as per individuals risk bearing capability by using proper level of stop loss.Traders should always try to keep their looses small. This will help them in becoming a successful trader in short period of time.  

5) Maintain trading records

Every time you enter or exit a trade you must make a note of it along with the reason to do so. These notes are very helpful in designing optimum trading strategy in future which is most likely to give favorable results. Also you can make notes of profit/loss you earned with each trade.

A wise trading plan serves as a blueprint to trader and indicates how trader should approach in market in-order to achieve his trading goals. Without a good trading plan chances are that a trader finds it really difficult to accomplish his trading goals.

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Meaning of day trading in futures contracts, its advantages and disadvantages.

Day trading is a form of trading in which a trader square off its position in market the very same trading day i.e position is not held in market for more than one trading day. Day trading in futures is a similar type of trading strategy and here traders buy/sell different future contracts within the same trading day. With this strategy traders can not keep their position open in market overnight. For earning better returns while trading in market, traders can rely on usage of financial experts advise on mcx tips and other trading tips. As experts with good knowledge gives such recommendations it will help in earning better returns from market. Time duration in day trading can be few minutes or entire trading session but it can not be more than one trading day. To trade in day futures contracts successfully traders are required to be disciplined in market and also have good knowledge about market.

Advantages of day trading in futures:

1) With this trading strategy all open position in market is closed by the end of trading day. Usually future market contracts opens at a different price from its previous day close. Traders who trades on day basis in future contracts does not have to deal with this price volatility as they do not keep their position open in market overnight.

2) Day trading in futures helps in learning different important concepts related to day trading in short period of time. As traders who hold their position in market generally trade once or twice in a week and they do not get much opportunity to learn about market. Day traders trades more frequently and learn about market quickly.

Disadvantages of day trading in futures:

1) As more number of trades are planned it will increase the commission paid to the brokers.

2) Very good market knowledge is required to earn better while day trading in future contracts and therefore traders with vague market knowledge are not able to earn well with this type of trading strategy.

3) More time is required to devote in market and traders need to have trading plan ready and stick to their trading plan and be disciplined in market always.

Day trading in future contracts can be made profitable by keeping emotional factors aside while trading. Both short term day trading and long term trading has its own pros and cons. Depending upon the volatility in market traders can choose optimum trading style for themselves. As we know day trading is quit risky form of trading, to sustain with this strategy by earning good returns  traders may refer financial advisory services like mcx trading tips, day trading tips and more while trading. Traders should learn about their risk bearing capability and trade accordingly in market. It is never recommended to get involved in trades which are beyond your risk bearing capability.