Really helpful ...............for beginners in stock market..

ViJiT

Vijith Pujari
The Game:
Moneybhai is India's most exciting, simulated stock market game brought to you by Awaaz.

This virtual stock market game will give investors a chance to invest and gain from the stock market without risking their own money. Participants will be allotted Rs.10 lakhs notional money to invest in top 100 NSE Stocks. They can buy and sell stocks, experience market highs and lows by playing this interactive game through the internet or their mobile phones.

Not only will participants get to learn how to choose winning investments through the experience of the game, they can also win grand prizes and make some real money. What's more, successful investors will be featured on Awaaz with acclaimed investment gurus.


Terms and Conditions


* To be a registered user , you will have to key in your contact number.This is not for any commercial purpose , but only to ensure that we are able to contact you in case you become a winner.
* Key in your correct details as the names will be flashed on the channels. To be eligible to become the money bhai of the day, it is mandatory to login to your account atleast once a day.
* 0.5% of brokerage will be charged on every transaction executed.
* To be eligible to become the money bhai of theWeek, it is mandatory to login to your account atleast Thrice a week.
* To be eligible to become the money bhai of the Month, it is mandatory to login to your account atleast 4 times a month.
* Your contact number is your unique identity and therefore only one person can play from one number.
* Selection of the winners is on the sole discretion of awaaz. The rules are a subject to change at any given point.



www.moneybhai.com ..........rockin site.......
 
Last edited:

vengabeats

MP Guru
Investing in Stock

Price of a stock is not very important it is the valuation that is important
Typically in bull markets investors get attracted to low priced stocks. However, such stocks might be the most dangerous to invest into. First of all, if a stock is low priced despite the markets having moved up substantially then there has to be a reason behind it. That reason might be that the company is not doing well financially. Also it is important for investors to see the paid up value of the share of a company, where these days the face value of the shares of a company typically vary from Rs 1 to Rs 10. Most of the people think that all stocks are with a Rs 10 face value and as such a stock priced at Rs 10 with a Rs 1 face value would in the traditional sense be actually trading at a price of Rs 100. Moreover shares should be analyzed in terms of its price earning ratio (the most simple valuation tool for non-professionals) rather than the price of the stock. As a simple example if one share is trading at Rs 1000 and another is trading at Rs 10, but the per share earning of the first company is Rs 200 then its P/E is 5 (i.e. the stock is trading at 5 times its current earnings). However if the per share earning of the second company is Rs 1, then its P/E is 10, which essentially means that it is more expensive than the company whose stock price is Rs 1000.

Use common sense
Common sense is the most important and most difficult to use thing while investing. For example if a particular company is making some claims about its future growth prospects which do not seem likely given the performance of the domestic or global economy, investors should a such stocks even though the prospects might look very encouraging. If one believes that eh domestic economy will grow very rapidly and have huge investments in infrastructure then common sense would imply buying companies that benefit out of this. A buying stocks of companies where business models seem too complex or very difficult to analyze.

Understand that stock prices move on future prospects rather than the past
Although the past history of a company is very important for a proper analysis of the prospect of the company, investors should realize (which most people don't) that the stock prices move up and down based on future prospects of earnings growth rather than what has happened in the past. As such most of the results, which relate to a past date are already factored into the stock prices. As such a proper view formation on the future prospects is essential for successful investing.

Do not buy every thing in one lot
As we advise investors in our equity schemes to go for systematic investing, while investing directly into equities a systematic investment route should be the preferred route. Here the investor spreads out investments over different times and market levels so as to get good returns over the long run.
 
Last edited by a moderator:

vengabeats

MP Guru
What are the 17 STEPS for Successful long term Trading??

There are a series of steps and important questions that any trader must address to work consistently and long term in the markets.

  • Assess your beliefs about trading and about yourself. Although it’s difficult to grasp, did you know that nobody actually trades the market? Instead, you always trade your beliefs about the market
  • Determine your objectives for trading. System experts know that understanding your objectives thoroughly is half the battle in developing a system but most people have never taken the time to even consider what their objectives might be.
  • Understand the big picture. What’s the market doing overall and how can you measure it for yourself? It's important that you know how to determine the big picture for yourself and how to measure it.
  • Include three strategies that are compatible with the big picture in your business plan. Although there are thousands of systems out there, there are not many types of strategies. Know the essence of ten key strategies that you could use, the general picture of how they work and how you can adapt them for yourself.
  • Understand what your personal edges might be and how they set you off from the crowd. Having an edge in the markets isn’t just a slight advantage; it could be the pivotal difference in your success. So it’s very important to list your edges in your business plan and be able to capitalize on them. You need to know the key edges that almost any investor has over market makers or institutional investors. Or if you are a CTA, hedge fund, or portfolio manager, you need to know what your key edges might be.
  • Understand the key systems that almost every business must understand and start to think about developing structures for those systems. From marketing to cash flow, to back office and clients, trading is a business and should be regarded as such. More importantly, developing the right structures and systems is crucial for business success. For example, if you are a private trader, you must deal with clients – even if those clients are you and your family.
  • Select your trading market based upon two key factors. Learn what you need to know so that you can determine the following: Are you going to trade stocks? Are you going to trade futures? Are you going to trade mini-forex or real forex through the big banks? Are you going to do options on any of these? What market will you trade? Whatever you select must take into account the big picture and what is likely to happen in the next five to ten years.
  • Develop a worst-case contingency plan. Most people don’t even consider this crucial component until it’s too late, but the key to a successful business plan is to be able to overcome disaster.
  • Know about strategy preparation. There are several key sub steps that you should take before you think about trading. You need to know what you should do to get ready and how to follow up.
  • Know the key steps in strategy development and how to test for each. You’ll need to understand how to test exit signals, determine what your initial risk will be, and select and test your profit taking exits.
  • Properly evaluate your system. Know what information you’ll need to gather to really test and compare your system with any other system. It's good to have a formula that will allow you to compare your system with any other system in the world and rank that system. Thus, you’ll know whether your system is weak, average, good, excellent, or superb.
  • Master a simple way to get to know your system well without a lot of cost. You need a method to understand if your back testing is accurate. And, to understand what the worst-case scenarios will be for your system. Through this testing, you’ll be able to develop a simple position sizing model to fit your objectives.
  • Work on your objectives to actually develop position sizing models. This step is one of the keys to developing a system that fits you.
  • Know how to do a complete self-assessment. A successful trader needs to know the answer to these questions: How does my personality type impact trading? What is the most important attitude that I must have as a trader and how can I assess if I have it? What are my beliefs and values and how can I assess them? How do I begin to assess my key issues so that I know what could happen that might really interfere with my trading?
  • Commitment to do what it takes. There are many things you can do on a regular basis to really improve yourself. And if you have the commitment to really doing them, you’ll be unstoppable.
  • How to develop a top down approach to discipline. Few traders have the kind of discipline needed for successful trading, but if you combine top-down discipline with regular self-work, you’ll be amazed at the difference in your trading.
  • Put what you know into action. Learning and studying are very important factors in any endeavor, however the only true way to be successful as a trader is to take action. Getting in there and learning from your experiences.
 

bonddonraj

MP Guru
Market analysis, in the simplest term, is the study to determine price direction. Whether that movement is up, down or sideways. Timing the price direction has been the trick for most analysts. The two critical events for traders is where and when. From Wall Street to LaSalle Street the country is full of ex-traders who were right on calling a market move but dead wrong on timing. Looking at the most popular market in history, namely the stock market, I want to point out two reliable tools that have so far been uncanny in helping to pinpoint both time and price with a small degree of error in determining important market bottoms this year.
The first tool is the study of cyclical analysis. The study of cycles, or the reoccurrence of events, like predicting tops and bottoms of market prices, is a fascinating tool. Cycles like timing the sunset or tide changes can be useful in determining turning points for those events. It is also an important trader's tool for predicting price points. According to some traders due to the unpredictability of future market behavior derived from past performance, it is not a consistently accurate trading tool.
However, I wish to point out the coincident factor of recent Equity market price behavior and show you how it has been an incredible tool in determining the major short term bottoms in the Dow futures contracts so far this year.
The other traders tool is using Pivot Point analysis from different time frames, to help calculate the corresponding support numbers when these cyclical lows have occurred.
To better understand the methodology behind cycles let's first examine the foundation of the basics behind the principles. First, I want to review the four important topics or principles of cycle analysis.
1. The first is Summation, which is the addition or measurement of two or more cycle lengths.
2. The next is Harmonically interacting cycles. This is where the price will react with a cycle within a cycle.
3. The concept of Synchronicity relates to the market price having a strong tendency to repeat at the same time.
4. The last principle is for Proportionality. This has to deal with the time interval of corresponding price behavior (tops or bottoms) and the price movement or market reaction from that point.
Fibonacci Pivot Point Analysisis a famous technique that is used as a price forecasting method for day traders and professional traders as well. It is very popular among professionals. Let me point out one more issue on time. In every given month there are usually four business weeks and twenty-two business days. In some instances, if you break it down, one day of one week in a given month a high and or a low will be established, thus creating the range for that month. How can we, as traders break it down to help determine what the high or low for that time period will be? Well trend lines or prior price targets help, but the aid of using Pivot point analysis for all time periods is essential. The benefits to you may help improve your timing of entry and exit points of the market.
Most novice individual investors and even brokers are not familiar with this formula. I believe that most inexperienced investors have a hard time with incorporating this technique in their trading "tool box" due to the time it takes to calculate the numbers. But make no mistake the professionals' look at it and so should you.
First here is the mathematical formula where P= Pivot point; C= Close: H= High: and L= Low.
The Pivot point number is the high, low, close added up and then divided by three. P=(H+L+C)/3= pivot point
Now for the first resistance level take the pivot point number times two and then subtract the low. (Px2)-L= Resistance 1
For the second resistance, take the pivot point number add the high and then subtract the low. P+H-L= Resistance 2
For the first support take the pivot point number times two and then subtract the high. (Px2)-H = Support 1
For the second support, take the pivot point number subtract the high and then add the low. P-H+L= Support 2
All right, now that we have that established you can see it is a detailed formula. So let's try to simplify it. Consider the actual Pivot Point as the average of the previous sessions trading range combined with the closing price. Based on the past weight of the markets strength or weakness, which is derived from the calculations of the high, low and distance from the close of those points.
One method for using these support and resistance numbers is to consider them as the potential range for the next trading session's time frame. The previous sessions trading range could be based and calculated for an hour, a day, a week or a month.
Another method that Pivot Point analysis is used for is identifying breakout points from the support and resistance calculations from the R-1, R-2, S-1 and the S-2 numbers.
Since most technical analysis is derived from mathematical calculations the common denominators that are used are the high, low, close and the open. This is what is used for plotting a bar chart. More notarized techniques like Moving averages, Relative Strength Index, Stochastics, and Fibonacci numbers are all calculated using mathematics based on those points of interest. It is also what is published in the Newspapers. It is there for a reason. The concept is this, as technical analysts we are trying to use past price behavior to help us indicate future price direction. I am not trying to predict the future I just want an Idea of where prices can go in a given time period based on where they have been. After all isn't that similar to the concept of drawing trend lines?
Verify, verify and verify. What it means to me is this, before deciding to invest or make a trade, if I understand the underlying fundamentals, I would want to look at a chart to confirm the trend and then I would look at varying technical indicators to help confirm my beliefs.
By incorporating different techniques like cycle studies and pivot point analysis, the figures help me speed up my analytical process. With these numbers I can take my charts and draw lines with the support and resistance numbers on them to see if they help clear the "visual" picture. This is one technique that traders should try. Verifying the validity of cycles is a relatively easy task. One can back test with a software program or manually by visualizing with charts by a ruler and a calendar.
I want to also introduce the basic theory of Fibonacci, as it is an important element in the price behavior of this study. Thirteenth century Italian mathematician Leonardo Fibonacci concluded that a number sequence reflected human nature and that patterns repeated themselves in a certain order. The Fibonacci Series, as it is called, is an infinite series of numbers that adds each number to the previous. An example is 1,1,2,3,5,8,13,21,34,55,89,144… These numbers are used to help cycle analysts time market turns, lengths of price moves. Major tops or bottoms are often calculated by starting with the event of a high or low and then calculating out in time by price increments that correspond to the Fibonacci series. Fibonacci is also famous for the ratios derived from the number series. For example .382%, .50% and .616% are the most popular of numbers. More detailed numbers include .786%, 1.00%, 1.272% and 1.618%. Some programmers and sophisticated analysts will multiply or subtract from either a time series or a price level to help them calculate a price extension or correction as well as a time event on the axis of a chart. Taking a number from the Fibonacci series and applying it to the time axis of a chart, one can look for the repetitive, or coincident sequence of highs and lows. This will assist a trader to project or anticipate the next time series of events in the future.
The importance of the cycle of the five-month market low is, the number five is a Fibonacci Series number. What about the 11-week cycle what is the relationship there? Harmonically, it is extremely relevant as 11 weeks represents nearly half or .50% of the value of five months. The next intricate study is when we dissect the 11 week cycle you will conclude that it represents 55 trading days and there is the exact tie in from a Fibonacci sequence number of 55. This is what I would consider a strong confluence of sequence numbers
Fibonacci Pivot Point Analysisis a famous technique that is used as a price forecasting method for day traders and professional traders as well. It is very popular among professionals. Let me point out one more issue on time. In every given month there are usually four business weeks and twenty-two business days. In some instances, if you break it down, one day of one week in a given month a high and or a low will be established, thus creating the range for that month. How can we, as traders break it down to help determine what the high or low for that time period will be? Well trend lines or prior price targets help, but the aid of using Pivot point analysis for all time periods is essential. The benefits to you may help improve your timing of entry and exit points of the market.
Most novice individual investors and even brokers are not familiar with this formula. I believe that most inexperienced investors have a hard time with incorporating this technique in their trading "tool box" due to the time it takes to calculate the numbers. But make no mistake the professionals' look at it and so should you.
First here is the mathematical formula where P= Pivot point; C= Close: H= High: and L= Low.
The Pivot point number is the high, low, close added up and then divided by three. P=(H+L+C)/3= pivot point
Now for the first resistance level take the pivot point number times two and then subtract the low. (Px2)-L= Resistance 1
For the second resistance, take the pivot point number add the high and then subtract the low. P+H-L= Resistance 2
For the first support take the pivot point number times two and then subtract the high. (Px2)-H = Support 1
For the second support, take the pivot point number subtract the high and then add the low. P-H+L= Support 2
All right, now that we have that established you can see it is a detailed formula. So let's try to simplify it. Consider the actual Pivot Point as the average of the previous sessions trading range combined with the closing price. Based on the past weight of the markets strength or weakness, which is derived from the calculations of the high, low and distance from the close of those points.
One method for using these support and resistance numbers is to consider them as the potential range for the next trading session's time frame. The previous sessions trading range could be based and calculated for an hour, a day, a week or a month.
Another method that Pivot Point analysis is used for is identifying breakout points from the support and resistance calculations from the R-1, R-2, S-1 and the S-2 numbers.
Since most technical analysis is derived from mathematical calculations the common denominators that are used are the high, low, close and the open. This is what is used for plotting a bar chart. More notarized techniques like Moving averages, Relative Strength Index, Stochastics, and Fibonacci numbers are all calculated using mathematics based on those points of interest. It is also what is published in the Newspapers. It is there for a reason. The concept is this, as technical analysts we are trying to use past price behavior to help us indicate future price direction. I am not trying to predict the future I just want an Idea of where prices can go in a given time period based on where they have been. After all isn't that similar to the concept of drawing trend lines?
Verify, verify and verify. What it means to me is this, before deciding to invest or make a trade, if I understand the underlying fundamentals, I would want to look at a chart to confirm the trend and then I would look at varying technical indicators to help confirm my beliefs.
By incorporating different techniques like cycle studies and pivot point analysis, the figures help me speed up my analytical process. With these numbers I can take my charts and draw lines with the support and resistance numbers on them to see if they help clear the "visual" picture. This is one technique that traders should try. Verifying the validity of cycles is a relatively easy task. One can back test with a software program or manually by visualizing with charts by a ruler and a calendar.
I want to also introduce the basic theory of Fibonacci, as it is an important element in the price behavior of this study. Thirteenth century Italian mathematician Leonardo Fibonacci concluded that a number sequence reflected human nature and that patterns repeated themselves in a certain order. The Fibonacci Series, as it is called, is an infinite series of numbers that adds each number to the previous. An example is 1,1,2,3,5,8,13,21,34,55,89,144… These numbers are used to help cycle analysts time market turns, lengths of price moves. Major tops or bottoms are often calculated by starting with the event of a high or low and then calculating out in time by price increments that correspond to the Fibonacci series. Fibonacci is also famous for the ratios derived from the number series. For example .382%, .50% and .616% are the most popular of numbers. More detailed numbers include .786%, 1.00%, 1.272% and 1.618%. Some programmers and sophisticated analysts will multiply or subtract from either a time series or a price level to help them calculate a price extension or correction as well as a time event on the axis of a chart. Taking a number from the Fibonacci series and applying it to the time axis of a chart, one can look for the repetitive, or coincident sequence of highs and lows. This will assist a trader to project or anticipate the next time series of events in the future.
The importance of the cycle of the five-month market low is, the number five is a Fibonacci Series number. What about the 11-week cycle what is the relationship there? Harmonically, it is extremely relevant as 11 weeks represents nearly half or .50% of the value of five months. The next intricate study is when we dissect the 11 week cycle you will conclude that it represents 55 trading days and there is the exact tie in from a Fibonacci sequence number of 55. This is what I would consider a strong confluence of sequence numbers
 
Thanks for Info..............

Provide the same in the future...........

It will help in my 100 marks project...........
 
Last edited:

hiren_m_b

New member
Thanks dude....really helpful for me :)

Will Help me in my project of finance n cost...thanks again...good job
 

rohitbegwani

New member
Re: Really helpful ...............for beginners in stock market.. - INVESTORS SUMMIT

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kukuthejak

New member
hi guys,
I am kunal.doing my MBA IN FINANCE.....THIS THREAD IS OF GREAT HELP.I JUST JOIN TODAY.I DO HAVE INFORMATION ON STOCK MARKETS WUD LIKE TO SHARE WITH EVERONE.

i AM attaching a word doc on basics in stock market.hope it will help .\\\\





thanks &regards
kunal
 
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