How to choose a better stock option for investment?

Share market is considered one of the best options to increase investment in a short period of time. However, it is good if you are ready to take the risk with your invested money because here profit and loss both exist. Either you are a beginner stock trader or having experience of few years, you should focus on choosing the best or a better option to get back more value of your investment.

stock option for investment

Each company listed in the stock market promises to return huge amount than invested but investors have limited money to invest. He cannot buy stocks of all companies, therefore, research-based selection of stocks and an adequate comparison is compulsory before buying stock.

Here we have discussed a few rules that will help you to choose the best stock option.

First Rule: You should invest in easily understandable business model companies. It will help you to predict the company’s future because its business model is simple and a common man easily can understand it. You also can select those companies which have a sustainable business; generally, such companies are considered trusted investment option in the share market.

Second Rule: In stock trading, a famous saying is “past performance is not a guarantee of future performance”. However, it is not true when you choose stocks to buy. As a company’s past track record helps to predict its future growth. Therefore before buying stock of any company you should do adequate research about past business growth of the company.

Third Rule: Some companies give a high dividend to their shareholders while some give very poor. You should go to companies which distribute rich dividends. You should give preference to rich dividends companies in your investment portfolio.

Fourth Rule: Diversify your investment portfolio. It means you should pick stocks from different industries and different fields. If any news, government rule or any other outer things affect the stock of any specific industry in such cases other stocks of your portfolio can manage the loss of those shares.

Fifth Rule: Always said choose “Best in Breed”, it applies in stock choosing also. There are numerous companies in different segment and industry but some companies are considered as “best in breed”. You should choose such companies. The stock of such companies gives high return and shareholders trust on their business model.

Sixth Rule: The most common share trading strategy is “Buying when the price is low and sell when the price is high”. However, you should go beyond it and buy stocks of new growing companies. Most of the experts suggest that buying shares of new and growing companies at an early stage is a guarantee of high return on long-term. You can go for it if looking for better stock options for long-term investment.

In the stock market, a number of techniques and strategies are used to choose the best and profitable stock option to gain a high return on invested money. One strategy may work for one but there is no guarantee that the same strategy will work for you as well.

Therefore you must be more conscious to follow anyone.

Share market investment tips for early-stage investors

These days each and every one wants to become rich as quick as possible. To search such ways, some people buy lottery tickets while some move towards share market investment. There are a big number of people who thing investment in stock market is the easiest and quick way to become rich. However, it is not true for all if you don’t follow some basic rules of the investment in the share market. Some early-stage investors also rely upon luck when they don’t have basic investing knowledge.

investment tips

Here are some common investment tips that early stage investors should follow:

1. Go for long-term aims

First of all, you should ask yourself what is the aim of investment in the share market. Do you need investing money back in the next 3 months, 6 months or a year? Are you investing for future expenses like buying a home, car or bear college expenses etc.?

Before investing in the share market, you must have a clear purpose of the investment. If you are expecting a huge profit in a short period of time then you must rethink about investment in the share market. Due to the volatility of the share market, it may not return desirable return in short time. You will have to go for long-term aims.

2. Diversify investment in share market

The most popular method to manage investment risk is diversifying investment. The most popular thought about investment is “Don’t put all eggs in one basket”. It is really true in the share market. You should buy stocks of different companies which deal in different industries. If any bad news or event hit the companies of the specific industry then investment in other industries may help to recover from the loss. All experienced investors make their investment portfolio with the share of different companies belong to varies industries.

3. Controls on emotions

To control emotions during stock trading is the key to make the profit in share trading. Most of the early stage traders and beginners fail to control their emotions especially when they suffer from the loss. Sometimes, fluctuation in the share of a particular company or companies of the specific industry may be due to rumors, market news, government’s new policy or rules and investors’ hopes along with emotions. So, you should not flow in emotions like others and make a decision on the basis of the company’s prospects, management, and assets.

4. Understanding of your risk tolerance ability

Risk tolerance varies person to person and is a psychological trait. It is based on different parameters like age, education, lifestyle, income etc. Risk is an important element of the stock trading and both early-stage investors and experienced have to face it. You must have risk tolerance ability if you are planning to invest in share market for long time. Stock trading is not free from risk, so you must be familiar with your own risk tolerance ability. However with understating of your risk tolerance capacity, you will avoid to invest in those companies which can make you anxious.

If you follow the above-mentioned tips then you can become a successful early-stage investor.

Why do most people suffer a loss in intraday trading?

One has to work hard to earn money and there is no free lunch. Same is true with intraday trading as well.

Many traders enter in intraday trading enthusiastically thinking they will earn a lot of money in a very short time period and will become rich overnight.

Indian Stock Market

The sad part is that nearly 90 percent of them exit within a few months of trading and losing most or all the money they have invested when they started trading.

Reasons for such a huge percentage of failures

Most of the people do not understand the rules of the game. In anticipation and haste of reaping huge profit overnight, they keep on committing the same mistake repeatedly. They do not understand that they have to spend adequate time to learn the ropes and succeed in the long term.

Some traders repeat same mistakes again and again

In life everyone makes mistakes but a newbie trader makes blunders. They believe in tips provided to them from unknowledgeable investment consultants. The tips that are provided are based only on market speculations only. There is no reasoning, calculation, analysis, and rationale of the tips that they provide and many of them do not have the license to provide any consultancy services.

So at the end of the day when the stock has to be squared up, the traders have no option except to sell it at a loss. So when things like this happen repeatedly traders lose confidence and start playing safe. This, in turn, reduces the profit margin and thereby is at loss of the whole purpose of intraday trading. Only those persons should go for intraday who have deep pockets. For shallow pockets sustainability is low.

Prepare and analysis for intraday trading

One of the important reasons why people fail in intraday trading is that they jump into this field without any preparation. They do not study market behaviour and pattern. Many even do not know the high and low of stock. They do not go through or read the company parameters. Just based on some relatives or friends tip they put in their hard earned money at stake. If the basics and fundamentals are not clear or you do not have a profound knowledge of the subject matter naturally the trades will not earn you any profit.

Taking care of timing

One has to be very cautious about the timing during intraday trading. Both the entry and exit points should not be missed. Before buying any stock one should decide at what price one has to enter and at what price one has to exist for both the high and low of it. As soon as the stock price rise reaches the predetermined price or the prices that you have decided upon one should book profit and exit. One should also use stop loss and adhere to it. In case the price falls to your predetermined stop loss it is better to square off your position and move forward.

Those who do not follow these plans religiously, land into trouble. One should have self-control, make a plan and stick to it. Trading with a disciplined approach will help you reap good profit in a long run.

How can intuition help to predict the share market?

Dictionary meaning of intuition is 1) the knowledge to understand something through instinct, without the conscious reasoning 2) without a conscious reasoning but only from instinctive feeling

intuition to predict

Must Read: All time stock trading techniques that you should follow

Acquiring knowledge without evidence, proof or logical reasoning can be called intuition. It is a direct access to unconscious knowledge. The ability to understand without the need for conscious reasoning. According to modern psychology, it can encompass the capability to know justifiable solutions to decision making. A stock advisory company can help you in affirmation to your intuition whether both are in the same direction or not.

Standing at the bus stop or at the railway station, if you observe person near you minutely, you can guess what all is going in his mind. Is he worried, happy, stressed out and things like that. As a human being, we can intuitively feel the other person’s feeling.

Many people have an intuition about the things that will happen in future. As an observant trader, you can read the market pulse by your intuition and experience. You can read and feel what other traders in the market feel about the events of the market that will unfold. Same things hold true for nifty future tips.

Must Read: How much you can earn from share market in India?

Many people do not realize that every human being has a varying capacity of intuition. Sometimes the feeling is so strong that it can be felt easily and strongly, and sometimes it is so feeble that one does not even realize it.

It so happens in share market that we plan to purchase certain shares but wait to reach our expected price. Once it reaches our expected we wait for it to go lower. It goes lower. We again wait for it to go still lower and keep on waiting to purchase at lower and lower prices. Then all of a sudden it shoots above our first purchasing prices. We fret and fume why we didn’t purchase at the proper time. Kept on waiting unnecessarily. The same thing also happens in commodity tips.

The same thing happens when selling. We keep on letting the prices move north and finally lose an opportunity to sell at the right time to get the best price.

Must Read: Why is research important in share trading?

Meditation helps intuition get stronger. Peaceful and free mind attracts more thoughts. It helps to judge things in a better way. One can calmly weigh both the pros and cons of the situation to come to a better conclusion.

How can intuition help to predict the share market?

Apply the logic of reading emotions and feeling to a crowd. While observing the crowd at share marketplace one can predict the behavior patterns arising. It can give you a rough understanding of what people are thinking. Like they do for nifty option tips.

Say on a particular day you felt that shares will be going down. But the prices go up. Based on your price observation and judgment along with your intuition in future, the price will fall. Though it may not happen at the same instant, it may take a day or two. Reading a stock market is something that needs to be done over a period of time.  Not to be based only on your experience or just plain assumptions.

Must Read: Why should you invest in blue chip companies?

The available indicators and technical tools are available to predict the market movement, but without intuition they have limitations. These tools do help and support your intuition, and by practice and constant observation, you can get the better understanding of the market.

For Free Trading Tips Visit: https://goo.gl/2nhRwT

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Impact of Bitcoin on Indian economy

Like any other currency, Bitcoin is also a type of currency, but it is a decentralized cryptocurrency, that is virtual money. It is a system without the central bank or single administrator.

bitcoin indian economy

It has acquired the status of the worldwide payment system. Though, most countries have not given it any legal status to it. Mostly it is used by illegal channels. It was launched in 2009.

Must Read: Top ten day trading secrets for beginners

Bitcoin is supposed to be started by Satoshi Nakamoto. They can be exchanged for other currency, services or products. At present nearly 3 to 6 million people are using cryptocurrency wallet. Most of them are using Bitcoin. If you are interested to earn good money from nifty future tips contact advisor.

Bitcoin is a unit which is further subdivided into millibitcoin (1 millibitcoin = 0.001 Bitcoin) and Satoshi (1 Satoshi = 0.00000001 Bitcoin). Satoshi is the smallest unit in Bitcoin parlance.

All transactions are recorded in a block which acts like the ledger. Once the block is filled, a new block is created. All these blocks are connected to each other by hashtags. A linear sequential record of events of these block forms a blockchain.

It should be noted that though transactions are recorded but the information of the participants in the transaction is not revealed. Hence it becomes impossible to trace both the parties the receiver and giver.

Must Read: Share market tips from experts – why you need it?

First Bitcoin transaction was when programmer Hal Finney received 10 Bitcoins from Nakamoto.

India is technically advanced country. With the use of smartphones, which is spreading rapidly along with the internet availability, information flows is at a faster rate.  Most of the technology startups are interested in Bitcoin because it can be integrated into almost any software and can be monetized.

Bitcoin has tremendous potential and is serving the purpose it was meant to. Transferring money from one party to another, without the worry of rules and regulation of the government and no intermediaries (central bank) to charge commission.

For investment purpose, it is becoming an alternative to gold. Usually called Gold 2.0 It has become an alternative asset class for investors with huge but volatile returns. For more details you can contact stock advisory company.

It has no backing of any government and its value does not depend on the precious metal. All the currency in the world are valued against precious metal, usually gold, and are backed by the concerned government.

Must Read: Why should you invest in blue chip companies?

According to SourceForge, Bitcoins are fast gaining favor in India. Looking at the number of downloads India has moved to 16th rank in the world.

As far as Bitcoin is concerned Indian government is employing wait and watch policy. How developed countries across the globe respond to cryptocurrency. Though Reserve Bank of India has clearly advised general public not to buy or sell virtual currency.

RBI feels Bitcoin will help to circulate black money internationally, as it is very simple to transact without leaving any traces. It is unacceptable and unregulated in Indian financial system.

Must Read: Why is research important in share trading?

Though Bitcoin community is small in India, it wants RBI to step in. They want RBI to create policies to improve the safety of the consumer. The community feels strict guidelines of know your customer (KYC) will help to curb illegal transitions of cryptocurrency.

The community has suggested to the government to set up its own exchange, just like the stock exchange, where all Bitcoin traders can trade, as they trade with other currencies of the world. You can trade with commodity tips.

RBI along with central banks of the world are unable to track economic activities of this cryptocurrency. Hence they are worried about this unpredictable and uncontrolled form. It is impacting banking, finance, and economies of the world. These are the backbone of every country’s progress.

For Free Trading Tips Visit: https://goo.gl/2nhRwT