UK Stock Market, UK Stock Tips

Beginners Knowledge to Invest in stock market

Stock Expert — Sun, 13 Dec 2009 04:59:37 +0000

Those who are interested in investing in the stock market in India should do their study properly. It is one of the best places to make money, but you need skill and talent to make that money. It is just a skill that checks your power to stuffy the upward and downward trend of the shares and stocks.

Many times certain stocks move in an upward trend and many people make money during such time. You should know where to invest, which stocks will give positive result and so on. You should have the knack of knowing which stock to invest in and how to approach these companies. You have to constantly watch the market news, watch the performance of the companies listed in BSE, prices of the stock regularly. When you study all these factors properly, then only you will be able to invest widely and get return for your money.
If you are a beginner, then you should be extra cautious and take your each and every step carefully. There is software on the internet which indicates the trend of the stock market. Study this software properly and you will have positive results. You should first test a practical stock trading strategy that will help you formulate and concentrate on the actual ways of getting success in the stock market while picking good stock trading opportunities. Be careful about using the stock trading strategies as the information you have gathered may not be enough to get successful venture. In the starting it is best to keep an eye on the functioning of the stocks of BSE companies. When you have followed and understood this carefully you can use your knowledge for practical use and gain from it. After that, you can use the technical analysis to further improve in your knowledge and have a better idea to improve your skills.

Forex online trading

Stock Expert — Fri, 02 Jan 2009 22:20:40 +0000

If you are a beginner in the exciting field of forex trading then course forex online trading is the best bet for you. Today a large number of forex online trading courses are available at an affordable cost to help you understand the nuances of forex trading and all its aspects. Forex market is the market for trading in various currencies of the world. Frequent fluctuations in worth of these currencies causes forex market to be volatile ad you can benefit from such fluctuations if you have the facility of online trading in forex and are aware of what to expect.

Whether you are an investor or a trader, forex concepts have to be clear to you and you need to time your moves to perfection. If you undergo a course on forex online trading, it will help you learn the ropes in a professional manner rather than by trial and error method which may prove to be costly. This is because as the potential gains from forex trading are huge, so are the potential losses. So your investment strategy should consist of steps to minimize your losses and benefit from profit making opportunities afforded by the forex trading.

Forex markets are not for weak-hearted investors. It is not the place to be in if you want quick profit without any risk. Believe me there is no course or trading strategy or investment guide which can bring you a guarantee of profits from trading in the forex market. Forex is the market which requires not only the understanding of market concepts but also a fair bit of understanding abut economic parameters, inflation, export and import performance and so on. It is here that course forex online trading can brush up your concepts and make your confident in facing the world. It makes sense to go for course forex online trading with all its apparent benefits.

Today forex trading has become much more lucrative than securities markets, which have been giving negative or no returns over last few months. Forex markets have been generally quite active and have seen some nerve wrecking moves in recent times. The growing integration of the world economies and cascading effects and coupling impacts have made currency movements volatile and difficult to predict and understand. It is here that a fair understanding of the subject will help you in great measure as you gain in confidence to face the world while trading in the forex market.

Just as stock markets, forex online trading is also gaining prominence and it is imperative that you do not miss the bus in this exciting field. After all no one wants to avoid potential for profit making. So happy investing and best of luck!!!

Monitoring of Equity investment

Stock Expert — Fri, 18 Jul 2008 16:47:24 +0000

Having made investment in shares of a particular company, it pays to monitor the same on a regular basis. Monitoring does not mean looking at the price movements on a daily or an intra-day basis. It also does not mean that you exit at the earliest possible opportunity. Monitoring of your investment means that you keep a tab on your exposure and keep your eyes and ears open.

Investment in equity and equity related instruments does require discipline and timely response to events affecting the performance of a company and its share prices. There are a few sources which you can refer to for doing it. Let us have a look at them one by one:

i. Research Reports.
Research reports published by your share broker or newswire service providers are a good source to have an indication about the future potential of your investment. The analysis is generally based on financials, order book position, growth and expansion plans and other factors affecting the company. These reports give a good insight into how the prices of your company’s shares expected to behave in future. Sector wise reports may also give an indication about the potential performance of sector in future and how your investments are going to behave in times to come. Needless to say that it is very much required for effective planning.

ii. Business Publications.
Financial newspapers and magazines such as Dalal Street, Capital Market also carry an in depth analysis of the price movements and potential of shares of various companies. These publications are a good source of information for monitoring your investments. Newspapers carry information about daily price movement of your stocks and shares as well as details about last 52 weeks high and low prices of shares. Just have a look and you will be inundated by wealth of information. You can also get information about the best performing companies and sectors and what is moving up and down over a period of time. Makes sense to you to keep browsing through these magazines and publications for your benefit.

iii. Annual Reports.
Annual Reports sent by the company to shareholders carries detailed information about its performance. It also contains a comparison with key profitability and financial ratios as well comparison with last years’ figures. The auditors reports and share price data including monthly high and low are a good source for keeping a tab on your exposure to the company. You can also compare the performance of your company vis a vis its competitors and how it is giving results year after year in comparison. Thus it is a good source of information for all those investors who want to keep an active tab on their investment.

Selling and purchase of Share

Stock Expert — Thu, 10 Jul 2008 15:45:44 +0000

Can there be a situation where I don’t find a seller for shares that I want to purchase?
It is possible that shares will not be available in the market when you want to buy it, This will be the case where the scrip is having very low floating stock and most of it is held by promoters or a few individuals or entities who do not want to sell. In such case the demand for the scrip will be far higher than the supply and price may go up to any level. The recent spike in the price of scrips such as MMTC, STC is an example of this phenomenon where more than 95% shares of the company are held by promoters (in this case the Government of India) and a few institutions and there is no liquidity available. The price of MMTC touched a whopping level of more than Rs. 50000/- because of this. It is also seen that these scrips are prone to price rigging and manipulation as a few operators control the supply situation and play the market as per their convenience. Thus in these cases, there is very thin trading happening on exchanges and these shares are called thinly traded scrips.

Can there be a situation where I want to buy or sell shares but the stock market does not allow any transactions in the shares?
In order to curb excessive speculation and volatility, stock exchanges have a system of circuit filter on scrips which are not available for trading in the derivative segment of the exchange. This may be fixed at different percentage levels say 20%, 10% or 5% for different scrips. It means that based on yesterday’s closing price of the scrip, the price today may move within this range. Let us understand the concept by way of an example. Suppose the scrip ABC limited closed at levels of 100 yesterday and it has a circuit filter of 20%, today the price of the scrip may go to the maximum of Rs. 120 and a minimum of Rs. 80. Now as actual price movement depends upon demand and supply, if the demand is more than supply and price moves up to Rs. 120, price can not move beyond that today. Thus trading will not stop but if it happens it has to be at or below Rs. 120. if some sellers are willing to sell shares at these levels, trading will be there, otherwise no further price movement in upward direction. Tomorrow again, the price can go up to Rs. 144 (say if it closes at Rs, 120 today, Rs. 120+20% maximum of Rs. 120.) This way the position will continue for all future days.

Stock exchanges also have the system of index based circuit filter where the upward or downward movement in index such as Nifty and Senses beyond a fixed percentage of 10, 15 and 20% within a predetermined time period will lead to trading halt for a fixed amount of time or for the day depending upon the time when these triggers were reached. This happened as recently as January 22, 2008 when Sensex and Nifty saw a downward movement of 10% within a matter of 1 minute and there was a trading halt for 1 hour immediately after that.

All about BTST, BNSTG and BNST

Stock Expert — Mon, 30 Jun 2008 12:33:07 +0000

Many of the frontline brokers today provide value added services to their clients apart from plain vanilla broking facility. BTST, BNSTG and BNST are a few such schemes, which provide an option to investors to gain from upward market movements or convert their expected holdings into cash, even before actually receiving the shares. Following is a brief description of each of these terms:

a. BTST (Buy Today Sell Tomorrow)
BTST is the facility provided by broker ICICIDirect to sell shares bought by you without having to wait for delivery of shares. As settlement in Indian securities markets is on T+2 basis, shares bought on say Monday will only be credited to your account on Wednesday after pay-out. However if you want to sell shares bought by you, before Wednesday, without waiting for its delivery on Wednesday, you can do it under BTST. Thus it affords you an opportunity to sell before receiving shares bought by you earlier. However in case you do not receive allotment of earlier shares bought by you, there may be default on your subsequent sale. In that case, you will have to bear additional cost of auction or close out. Thus the scheme is not free from risk in the case of failure of your purchase transaction.

b. BNSTG (Buy Now Sell Tomorrow-with Guarantee)
BNSTG facility is offered by broking house- Kotak Securities. Under this scheme, an investor can sell upto 75% of shares bought by him before receiving the actual delivery of shares. The sale transactions are also guaranteed by Kotak Securities. Thus in case you receive short allotment in respect of shares bought by you, your subsequent sale transaction will still go through backed by guarantee of Kotak Securities. Hence you will avoid the penalty and other charges applicable in case of auction or close out of your sale position. This seems to be a better option than BTST as your subsequent sale is guaranteed and in the event of your failure to receive against your purchases, your broking house will come to your rescue.

c. BNST (Buy Now Sell Tomorrow)
BNST scheme offered by broker Motilal Oswal Securities Limited is like BTST scheme of ICICIDirect. Here also you can sell shares bought today before actually receiving them. The scheme is available for a select number of scrips. Here again in case of your earlier purchase transaction failing to get through, you may have to incur a loss on your subsequent sale.

Internet Trading and costs associated with trading in secondary market

Stock Expert — Sun, 08 Jun 2008 01:48:23 +0000

Changes in technology have brought about significant change in the way investors used to invest in securities market. Today internet trading has made great inroads and completely changed the traditional brick and mortar model of stock trading. Internet trading has gained popularity amongst all classes of investors be it big or retail. The ease and convenience of placing your buy and sell orders for execution and getting an online confirmation without having to move out of your home or office is simply great.

Let us have a look as to how to begin in the field. First of all, you need to open a broking account with a broker providing internet trading facility. Today many brokers provide trading facility through internet. All these brokers are also depository participants (DP) and have a tie up with banks so that your three accounts viz broking, DP and bank are all interlinked. When you put a buy order, there is a seamless fund transfer from your bank account to the broker account and in case of execution of your sell order, shares move from your DP to the broker online. You also get a direct credit of money to your bank account in case of sell transaction and credit of shares in your DP account in case of buy transaction without having to worry about paper work and other inconvenience. The ease of doing it all through click of a mouse is simply too great to ignore.

Costs associated with secondary market trading
There are different costs associated with trading in the secondary securities market. You must take them into account and compare across different brokers and their services. For example some brokers only provide broking services without any add on such as research or recommendations. Generally the brokerage charged by a full service broker is more than that charged by others. You may also need to pay DP charges, every time your make a transaction. There will be annual maintenance charges also known as holding charges for holding shares in your account by the DP. It makes sense to clarify all the charges with your broker and DP before start of trading. This way you will be able to make a decision about the costs payable to a particular broker or a DP.

You also need to put in margin money with your broker so as to allow you to trade. Some brokers may also insist on margin money before buying on your behalf. This is because brokers have to pay different forms of margin such as Value at risk (VAR) margin, mark to market margin to the stock exchanges. These margins are imposed by stock exchanges to cover their risks and to take care of adverse market movements. Brokers in turn pass on these margins to their clients.

Things to remember while trading through internet
You need to take a few things into account if you are investing through online facility of brokers. Internet seems too simple to resist. Hence makes sure that you invest only that much as you can afford to invest. So not fall prey to media hype and easy money making claims. Invest in good companies showing good results and with professional management and good background of promoters. Internet is abode of huge information and it is up to you to use information to your advantage.

Stock Market site and blogs

Stock Expert — Sun, 20 Jan 2008 23:44:02 +0000

Indian Share Market – Indian Stock Market, Indian Stock trading strategies, Indian stock investor or trader or broker. better insight to trading and investing in best stocks.
Indian Stock Market – Indian Share Market, Indian Stock Market, Indian Stock Pick, Stock exchange, IPO.

Investing Stock, Online Stock Trading – Share Market, Stock and Share Market Tips, Investing Stock, Online Stock Trading.

Stock Market Blog – Blog on stock maket. Hot stocks, Penny stocks, How to invest? How to ensure maximum ROI