Online Trading India

Investment Strategy Let us begin with a caveat here. When the market crashes by 35%, it is very unlikely that your portfolio will even remain flat; forget about positive returns. That is just not practical. Your  investment strategy  must be focused on two things viz. ensuring that your long term goals are not impacted and ensuring that you manage risk effectively. To ensure that your portfolio does not crash with the market, here are 6 things to ensure. 1. When you create a portfolio, put your goals at the centre You cannot start building your portfolio like Alice in Wonderland. You need to know what you are investing towards. Your portfolio must be linked to your long term and short term goals; not an exercise in isolation. If you have a long term goal that stretches to about 15-20 years; like retirement or your child’s education, then you can use a diversified portfolio of equities or equity funds for the same. In that case, don’t worry too much about the vagaries of the

As  stock market trader s we are all well acquainted with applying  technical analysis  tools for trading. And currently market has witnessed crash due to Covid-19 pandemic. In this scenario let us analyse the  Nifty 50  movement and few other stock price movements and find out the opportunities some of us would have missed. Then we will understand what the current price levels and patterns indicate for a trader or investor. While this post will be a refreshing one for an experienced trader this will be an educational treat to the novice. First let us look at the Nifty 50 chart below. With the Nifty chart we will try to find out trading opportunities by applying various technical analysis tools. Trendline In the Nifty chart a long term trendline joining the bottoms since February 2016 is drawn and this trendline serves as a support level.  On Feb 27, 2020 Nifty broke this trendline indicating long term weakness in the market.  If traders who held long position had e

The  Yes Bank  episode may have settled for now. The future is still not clear about whether it would see a run on deposits and how long SBI would continue to support the bank. Also, what happens when SBI finally chooses to sell out after 3 years? These uncertainties remain. The bigger takeaway for the depositors is what are the lessons to take away from the Yes Bank case? The idea is to avoid getting trapped in such a situation. Remain, depositors of Yes Bank have been bailed out but the depositors of PMC Bank have not been so lucky. It is OK to err on the side of caution but here is what people need to take care of when opening a deposit account. Six Lessons from the Yes Bank case As we look back at the Yes Bank episode, it was a very basic issue of a bank mis-selling its products to a gullible audience. In an era marked by low interest rates, there is nothing more compelling than higher rates on offer. But that can work both ways as a lot of the Yes bank depositors realized

The great mathematician Euclid once said that “there is no royal route to geometry”. The same applies to  stock market  trading too. There really is no quick and easy royal route, but there is certainly a disciplined route to  learn stock trading . Here is how you can go about it. Remember the basic premise that to learn stock trading, there is nothing like the real thing. So start by opening your  online trading account . You can never get the pulse of the market unless you trade your own money. How to start trading effectively in the stock market?  It all begins with opening a  online stock broking account  and  demat account . As mentioned earlier, there is nothing like the real thing. Simulation only works up to a point. Find a good online  stock broker  and  open an account . Become familiarized with the layout and free trading tools and education offered to clients. That is the place to start. There is a lot of knowledge on markets floating around. Read good books like B