Flow charts of Rising Returns

Derivatives is too risky. In my point of view Don't do Derivatives Trading. Derivatives means Futures, Options, Forwards and swaps. 

In stocks Large cap companies allocation is more preferable.

Happy Trading & Happy Investing

How to use MACD Indicators Technical Analysis of Stocks?

Moving Average Convergence Divergence (MACD) is the indicator.

MACD is calculated as follows:

1. Calculate Average of 12th day EMA
2. Calculate Average of 26th day EMA
3. Subtract the 12th day EMA and 26th day EMA, this is called MACD line.
4. Calculate the 9 period SMA from MACD line, this is called signal line.

The difference between Signal and MACD line, this represented histogram.

When the blue line crosses red from below and values of MACD are negative, then you buy.

When the blue line crosses red from above and values of MACD are positive, then you sell.

Happy Trading & Happy Investing

4 P's is to invest in Stock Market.

 Planning - It requires a lot of research, understanding and most importantly planning. If you don't have a plan, don't have a goal then the probability of you achieving it goes significantly down.

Persistence - Sticking to your investment strategy needs a great degree of persistence and this characteristic makes sure that you are always on the winning side.

Performance - The performance of the portfolio has to be in-check all the time. The portfolio return should compared with the appropriate benchmark index and the performance has to be analysed regularly.

Patience - Patience is not just needed to hold stocks but also to pick the right stocks at right valuation and at the right time. The profit making investor waits for the best trades.

Happy Trading & Happy Investing

https://twitter.com/garimalakhotiya?s=03

What Makes Stock Prices Go Up & Down? 📊

There are many factors that determine whether stock prices rise or fall. 

These include 

• the media
• the opinions of well-known investors
• natural disasters
• political and social unrest, risk, supply and demand
• and the lack of or abundance of suitable alternatives
• over buy off or sell off means when many buyers come and sellers are not much then prices rise..and when sellers are much and buyers not much then prices will be fall.

The compilation of these factors, plus all relevant information that has been disseminated, creates a certain type of sentiment (i.e. bullish and bearish) and a corresponding number of buyers and sellers. If there are more sellers than buyers, stock prices will tend to fall. Conversely, when there are more buyers than sellers, stock prices tend to rise.

Happy Trading & Happy Investing 

https://twitter.com/garimalakhotiya?s=03

Derivatives (Futures and Options) Trading

Futures and Options (F&O)

These are the contracts signed by two parties in the share market.

Futures 
 A future is a right to obligation of buy or sell an underlying stock at a predetermined price and deliverable at predetermined time.

Options
Options are right without an obligation to buy or sell equity.
Options is done in two ways:

• Call option
• Put option

A Call option means right to buy. It is an contract that gives the buyer right to buy the underlying assets at strike price at any time up to the expiration date.

A Put option means right to sell. It is an contract that gives the buyer the right to sell underlying assets at strike price at any time up to the expiration date.

Now, I want to tell what is Strike Price:

A Strike price means where the derivative contracts can be bought or sold. For example, In call options the strike price means where the security can be purchased by option holder.

And In put options the strike price is the price in which security can be sold.

Happy Investing & Happy Trading 

https://twitter.com/garimalakhotiya?s=03

Basics of Stock Market

Investment in Stock Market can be done in two ways

• Direct Investment
• Indirect Investment

Direct Investment means the investor identifies the shares and purchases the specific shares in stock market.

How we do Direct Investing

• You should do research before investing

Indirect Investment means the investor purchases units of Mutual Funds and Mutual funds invests in shares of companies listed in stock exchange

Kinds of Trading

• Intra- day Trading:- It means buying and selling of shares in same day. In intraday trading, brokerage will be less.
• Positional Trading:- It means buying and selling of shares are on different days. In this, brokerage will be higher than intra-day.

Two Stock Exchange in India

• BSE: It denoted by SENSEX and 30 companies is listed.
• NSE: It denoted by NIFTY and 50 companies is listed. 

How to Select Stocks?

• Fundamental Analysis
• Technical Analysis

How to Invest in Stock Market? 

Step 1: Open Demat Account by Brokers 

Step 2: Get username and password

Step 3: Login and start trading

Step 4: Buy or sell

HAPPY INVESTING & HAPPY TRADING

Next Blog will publish soon 
Any Doubt comment below

Thankyou
Garima Lakhotiya
https://twitter.com/garimalakhotiya?s=03

Capital Markets & Securities Laws

OVERVIEW OF CAPITAL MARKET

Capital Market is a market for financial investments that are direct or indirect claims to capital.
Financial Markets are of two types:-
1) Money Market
2) Capital Market
Money market means refers to the market where borrowers and lenders exchange short-term funds to solve their liquidity needs.

Capital market is a market for financial investment that are direct or indirect claims to capital.