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Showing posts with the label Investment & Finance

Share Market Trading and Intraday Timeframes: An Analogy to Cricket Matches

  (Share Market Trading is comparable to engaging in a Cricket Match) 11:00 - 11:45: T20 Match Equivalent Trading Period 12:15 - 13:45: Test Match Equivalent Trading Period 14:00 - 15:00: T20 Match Equivalent Trading Period 14:30 - 15:00: Period of Short-Term Trends (Both Bullish and Bearish)

Plan for Achieving Financial Independence

  Clarity : Define clear financial goals and objectives. Self-Sufficient Stage : Transition to a state where reliance on a monthly salary is diminished. Breathing Room : Establish a financial cushion allowing for reduced financial stress. Stability: Maintain a contingency fund equivalent to six months of expenses, free from debt obligations. Flexibilit y: Accumulate investments amounting to two years of expenses, which can be utilized when necessary. Financial Independence: Attain the ability to leave salaried employment at will, without compromising basic needs. This independence facilitates pursuing higher-risk ventures, innovative projects, entrepreneurial endeavors, and creative problem-solving through product or service development. Start-Up & Wealth Accumulation : Upon success, generate substantial wealth, mirroring the achievements of founders like those of DeepSeek. This leads to financial abundance, surpassing perceived wealth. Calculating Required Capital : Determin...

Investment Principles

i) Favor the acquisition of undervalued shares. While purchasing a slightly overpriced share of a growth-oriented company with promising prospects is acceptable, investing in low-priced shares of stagnant or declining companies proves detrimental in the long term. ii) Employ portfolio diversification as a prudent strategy to mitigate risk. iii) Exercise patience and avoid impulsive share purchases. Identify companies with sound fundamentals and await a market downturn. Maintain a curated list of thoroughly analyzed and financially robust companies even in the absence of a bearish market. If the stock price of a holding declines, refrain from panic selling; market fluctuations are normal. Exercise patience and await recovery. Provided the company remains fundamentally strong, retain the position and capitalize on returns. Divest shares only upon encountering mismanagement, halted growth prospects, or diminishing market demand. iv) Differentiate between investment and trading portfolios....

9 GOLDEN RULES FOR INTRADAY TRADING

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  Liquid Stocks: Select stocks with high trading volume to ensure easy entry and exit. Trade with Small Quantities: Begin trading with smaller positions (e.g., 10, 20, 40, 50 shares). Always Use Stop-Loss Orders: Implement stop-loss orders to manage risk. The stop-loss should be set within the trading system, not just mentally. Follow a double trade rule strategy. Set Daily Profit Targets: Establish a daily profit limit (e.g., 5000/-) and cease trading once achieved. For instance, aiming for 5000/- daily over 20 trading days per month equates to a target of 100,000/- per month. After reaching the daily target, refrain from further trading for the day. Minimize Losses and Exit Trades: Limit losses and avoid prolonged trading after incurring losses. Avoid making financial decisions under emotional distress. It is preferable to wait until a calm and rational state of mind is achieved before making decisions. Emotional decisions made during periods of stress or excessive joy can o...

Investment Rules for Share Market

  i) Buy under priced shares, it is better to buy a little high priced share of a growing company having future prospects in its business. Not growing or of no future growth company’s share at low price would be costly in the long run. ii) Do not put all your money in one basket i.e. portfolio diversification is a good strategy. iii) Don’t hurry up to buy shares.  Pick the stock whose fundamentals are good and wait for the bearish market, even if there is no downside in the market you must have a list of companies. Analyzed, studied, convincing financial statements. If the stock price of the company held by you is falling then don't be afraid of it, be patient and wait for a moment because it is a normal phenomenon of the stock market. It is falling and rising by the time. If the company is fundamentally strong then hold it and get a benefit of returns awarded by the company until the company is mismanaged or future growth is halted or its services are not in demand in t...