How to control yourself when market fluctuate

Fluctuations in market is necessary for buying and selling a stocks but you know if you can control yourself when everyone is tense then you will definitely get a benefit from market for your patience.

Now the question arises what you should do to control your emotions so here is the answer
Very easy but not mostly people do READ BOOKS such as THE INTELLIGENT INVESTOR, POWER OF SUBCONSCIOUS MIND, POWER, THINK AND GROW RICH etc.

These are some examples of books which you should definitely read for not only earning money in stock market for any field.
So start now I know if you reading this that means you can read BOOKS as well and you are really want something from life so KEEP LEARNING AND KEEP EARNING.

Please share this blog for benefit people like and tell in comment if you want to suggest anything or mail me.

Types of companies in Stock Market

If you want to invest in any company first you should know about company. So for understanding the company we will start with types of company and how many sectors are in stock market.

Basically there are three types of companies in stock market

1. Large cap

2. Mid cap

3. Small cap

Stock market has distributed companies on the basis of their market capital.

Large cap companies has huge market capital and mostly are fully developed companies. Nifty 50 and Sensex are indicator of market which include large cap companies to show the trend of market.

Similarly like Nifty 50 and Sensex there are more indicator like Nifty midcap, Nifty smallcap, Nifty Bank etc.

Nifty Midcap has midcap companies as its name shows and Nifty Smallcap shows small cap companies.

Investors prefer to invest in small cap and midcap who are risk taker because small and midcap are in developing stage so their value of share is lower than the large cap companies. small and midcap companies provide more returns than large cap companies.

INVESTMENT VS SPECULATION

Giving money for expected return on future after considering all factor which will effect your future expect return is called Investment. Whereas speculation means giving money for expected return but not considering anything for example when you buy lottery tickets your future return is dependent on uncertainity there may be posible return or not.

In investment you try remove your risk about uncertain future. I already specify some investment which you can do with little amount and huge amount.

link http://learnbasictrading.blogspot.com/2018/03/5-best-investments-in-india.html

Stock market is place where some person do investment but some do speculation for example when you bought share in market without considering what is company's future return just buy on basis of some tips or price.

Investor do investment in stock market on the basis company's future return or stability of future

Warren buffett famous investor in the world has said that he never do investment in anything until he understand the source of investment so try to understand every minor thing about source in which you are investing your fund.

Pivot Points for Support and Resistance of Share Price

What is Pivot Points ?

Pivot chart is technical indicator which shows support or resistance of shares. Here support means point of level from where share price could stable for a while and resistance also same meaning but difference between them is that support occurs after decline and resistance occurs after rise in the share price.

Basically Pivot points automatically calculated on the basis of last day movement. It is dependent on Last day High, Law, Open and Close. For inserting Pivot Point go to studies of your menu bar 
than search and insert. 

In this picture you can see there is Black line that is pivot points and there are six lines also. Three lines above the pivot points and three lines down the pivot points. The lines which are above the pivot points are called Resistance. Resistance lines named as R1, R2, and R3 on the basis of there nearness to pivot points R1 is first dark red line.

Three lines which are down the pivot points are called Support lines named as S1, S2, and S3.

Dark green is S1 line.

Never take Position when share price is moving around  Support and resistance always take position when share price cross the support and resistance.

Thank you for reading Learn trading blog.

Top 4 Indicators which helps in a trading

There are so many indicators available in technical analysis so now the question arise that which indicators should use for trading. There are some i am suggesting you can choose as per your preference. Indicators are basically classified as there use some are for trend analysis, some are for support and resistance and some are volume.

Candle chart

This indicator mostly used for technical analysis. It shows about trend, volume, open price, close price, high price, low price and it shows the pattern for analysing stocks you need to focused for recognising pattern of Candle sticks.

For more details click on this link http://learnbasictrading.blogspot.in/2018/03/candlesticks-chart.html

 MACD

One of the best indicator for trend analysis olf stocks. Macd is easy to understand. MACD stands for Moving Average Convergence Divergence. 

For more detail click on this link http://learnbasictrading.blogspot.in/2018/04/macd-for-shares-buying-and-trend.html

RSI

RSI is stands for Relative Strength Index. It is one of the best indicator in technical analysis it helps in where to buy and where to sell of Shares.

For more detail click on this link http://learnbasictrading.blogspot.in/2018/04/

Pivot chart

Pivot chart is technical indicator which shows support or resistance of shares. Here support means point of level from where share price could stable for a while and resistance also same meaning but difference between them is that support occurs after decline and resistance occurs after rise in the share price.

how to analyse pivot chart i will upload early.

Thank you for reading this blog.

RSI for finding overbought and oversold situation in shares

RSI is stands for Relative Strength Index. It is one of the best indicator in technical analysis it helps in where to buy and where to sell of Shares.

Basically RSI oscillates between 0 to 100. When it cross above 70 that means share is overbought it can go down and if RSI cross below 30 that means oversold it can go up.





















Here in this picture i select by rectangle the overbought and oversold situation which are above 70 are overbought and which are below 30 are oversold.

MACD for Shares buying and trend analysis

What is MACD ? 

MACD is indicator for technical analysis it helps in identifying trend of market. MACD stands for Moving Average Convergence Divergence. 

How to use MACD ?

Basically Macd use two Moving average line and one centre line. Let's look in picture here one is black line one is red line whenever black line cross red line toward downward the share price goes down that means down trand. Whenever black line cross red line toward upward shares price goes up that means upward. 

If black line cross red line and also cross center line it more confirmed the trand.

Is portfolio helps in a risk reduction?

Don't put all your eggs in one basket

Everyone said that don't invest in one investment vehicle or in one type shares there should be a well distribution of money in investment. Now question arise is how risk reduce in portfolio.

Let's Say Mr. A and Mr. B two best friends when teacher get out one friend another one also goes out with him now both missed the class lecture. In this example both have positive relation.

Just like in share if you invested  in one type of share or one investment vehicle than your portfolio will more risky because you invested all money in two shares but with positive relation.

Now let's say Mr. A and Mr. B are not a good friends but they know each other if teacher get out one another will take class and he will teach him after class. Just like in share and gold if we  invested in both than, if shares price  are down than gold will be up which will reduce your  risk.

Mutual Fund vs ETF(Exchange Traded Fund)

Mutual fund

People combine there money for investment in stocks(Shares, Bonds, Debenture etc.) which is done by professional that Pool of money is called mutual fund.

Creation            Mutual fund is created by anyone who qualify the regulatory requirements

Charges             Maintenance charges, Operational charges etc.

Initial margin     Initial margin required but not so much like ₹500

SIP                     Here you can make SIP(Systematic Investment Plan) it makes habit of investment

Listed               It is not listed on stock exchange

Counseling      Mutual fund professional provide counseling for best investment

NAV                 Net asset value is calculated end of the day 

ETF(Exchange Traded Fund)

Exchange traded fund are fund which are listed in stock exchange. It can be Gold ETF's, Index ETF's,  and many more.

Basically it is started for trading in Index.

Creation              ETF's are created Authorized Participants(AP's) They have high degree of buying                                power

Charges               Charges are very low than Mutual fund

Initial margin       No initial margin required

SIP                       There us no any such type of SIP

Listed                   It is listed on stock exchange 

Counseling           No one provide counseling here  

Value                    Value shows just like Stocks value  

   

FUNDAMENTAL ANALYSIS VS TECHNICAL ANALYSIS

Fundamental analysis means analyzing the company that company is fundamentally strong for profit
generating in future. There are some factor which are analyzed like Profit earning ratio, Profit consistency, Liability against Assets, etc.

Basically professional use fundamental analysis to select share and it is required to know how is company fundamentally.

In Fundamental analysis some key factor use to analyzing shares whereas In Technical analysis some Indicators are use to analyze past data of share.

In fundamental analysis value comes after analyzing the company's financial structure could be different from value comes after technical analysis.

Now question arise which analysis should follow, Use fundamental analysis to select the share and use technical analysis for finding the trend of share.

  

Books which will you help in Earning

Books are best means to gain knowledge about everything if you are interested in how to manage your financial issues than there are some books which will definitely help you in solving these issues.

Language of these books are so simple everyone can understand easily. In these time people don't have time to read books so they can listen books. Some books are also available on YouTube just save them offline and start listening everywhere at time of travelling, morning walk, and wherever they want.

Personally i like audio books because it saves my time and enhance my knowledge. i will provide some YouTube links for audio books. There are some paid application where you can find all audio books  of your interest.

Rich Dad and Poor Dad

I read this book two month ago it has changed my concept about money management. Basically this book is about how normal people expend their money and how should they expend their money.

It will also suggest you best means for invest your money from where your money will give you best return to increase your wealth.This book suggest you why people always have scarcity of money.



Trading For A Living

This book will explain about trading psychology, trading tactics, Money management.
Some people want to make full time career by trading in stock market this will help you to choose.

If you are already trading than this book will improve your strategy of trading and increase your knowledge about stock market.


Intelligent Investor

This book is written by Benjamin Graham and it is suggested by Warren Buffet. This is one of best book about Investing in stock market. This book will explain you Value Investing. 

In starting it will little hard to understand but after reading and reading you will be able to understand this book. When you will complete this book you will have different view of seeing Stocks.

There are so many books available which you can read and improve your knowledge. Keep learning Keep earning. Thank you for visit my blog.

5 BEST INVESTMENTS IN INDIA

Before looking to 5 best investments in India first look why should people need to do investments. Investments is a medium from one can increase there income and let the Money work for them. One more reason is money is inflated every year like if you have ₹100 in 2018 then value of ₹100 in 2019 will less than the 2018.

Here are some best investments in India.

1. Public provident fund (PPF)

Public provident fund one of the best vehicle of investments. It provide 8.1% interest Per Annum with no tax liability. It can be opened from banks after filing required form Initial amount is need to deposit is ₹1,00 only.

Return                                     8.1% p.a.

Tax                                         No tax liability

Initial Amount                       ₹1,00

Annual Deposit Amount        ₹5,00 to ₹1,50,000

Period of Deposit                    15 years

Withdraw                                 Every year after year 7

Full Amount Withdraw           At maturity

 2. Gold ETF's

Gold ETF's is an exchange traded fund (ETF) which is similar to gold. It is in paper form which is listed in stock exchanges like shares. It can be buy minimum one unit which is equal to 1 gram. It is very beneficial than physical gold because there is no need to worry about storage, Locker, Stolen etc.
It can be buy anytime by stock market. Here anytime means when stock market is open.

Return                          Depends on gold prices

Tax                                law tax liability than Physical gold

Period                            No limit

Withdraw                       Anytime as gold

Secure                           It is listed in stock exchanges it is very secure

Purity                            It represent 99.5% pure gold

3. Mutual fund

Mutual fund are unit which money is invested by professional in stocks. There are many types of mutual fund are available in market some are Equity oriented fund, Debt oriented fund, Hybrid fund.
Equity oriented fund means most of the fund money is invested in Equity shares. Debt oriented fund means most of the money of the fund is invested in Debenture and bonds. Hybrid fund means Equity and Debt both.

Return               10% to 12% p.a.

Tax                    ELSS (Equity Linked Saving Scheme) provide Tax deduction

Period                Different from Funds to Funds

Withdraw           At maturity

4. Post office monthly income account (POMIS)

 POMIS is one of the best investment for people who want risk free return on monthly basis. It can be easily open through any post office

Return                   7.8% p.a. Risk free

Period                   5 years

Tax                       Interest is taxable

Withdraw             After 5 years

Maximum           4,50,000(single), 9,00,000(joint)
amount deposit

5. Real estate

Real estate one of the best investment in India it increases constantly over a period and it has law risk. Basically investment in real estate is done on the intention of earning rental income and gain in value increasing over a period.

Disclaimer- Information provided above only for knowledge before investing in any of them please check 

MUTUAL FUND

Banks vs Mutual fund

Bank provide maximum 6% interest on there deposit and Mutual fund provide at least 12% interest on there deposit like if you deposit ₹1,00,000

In Bank return after 10 years   1,79,084

In mutual fund return after 10 years  3,10,584

Shares vs Mutual fund

Shares are part of ownership of company which price fluctuated by market behavior whereas mutual fund use there fund to invest in Shares, Bond, Debenture etc. Directly investing in share increase more risk investing through mutual fund diversify the risk which decrease the risk. 

Shares Give more Return and more Risk also whereas mutual fund give less risk than shares but it also decrease the risk.

Candlesticks chart

What is candlesticks chart?

Candlesticks chart is indicator developed by  Munehisa Homma, a Japanese rice trader of financial instruments. Candlesticks are used for analyzing trend of market by paying attention on patterns of candlesticks.

 

   Candlesticks are basically in two colors it could be Red and Green. Red color candlesticks are bearish candles that means price of share is going downward. Green color candlesticks are bullish candle that means price of share is going upward. One candlesticks shows all about the shares at what price share is Open and at what price share is closed and it also show what is highest price it gone and lowest price it gone. Green candle is open from down and Red candle is open from up.

 Candlesticks Body and shadow body made by open and close price of share and shadow made by high and low of share price. This is basic about candlesticks there is too much to learn about candlesticks

TECHNICAL ANALYSIS

WHAT IS TECHNICAL ANALYSIS?

Technical analysis means analysis of stocks(Shares, Debenture, currency, etc.) by using some Indicator. Technical analysis helps to find Trend(Shares price is going Up or Down) of market.

There is many indicator which are uses for analysis of stocks like Candle chart, MACD, CCI, RSI, volume, moving average etc. Analyst use these indicator on there preference. Candle chart and Moving average are  mostly use by analysts. Analysts make millions of profit by analyzing the Trend. 

In this picture RSI, Candle sticks(Candle chart), Moving averages, volume, and MACD is shown.

BUY SHARES AND SELL SHARES

Second step for Trading you need to know when to buy shares and sell shares. There are two types of buying Intraday and Delivery. Intraday means you buy shares and sell shares within a day and Delivery means you are buying shares for more then a Day like for Week, Month, Year and Decade also.
Warren buffett is best investor in world hold shares for long time like 5 to 10 years so it is best to hold shares for long period.
Start trading today but intention should be learning and understanding the market not to get rich in a month. Day trading good to understand market fluctuations. Always take time before taking any position. 

Demat account charges

First step of trading is to open a Demat account before opening a Demat account you need to there are certain types of charges like, Opening charges, Brokerage, Account maintenance charges(AMC), etc.
Basically opening charges are free from many broker companies but it is taken by some like ₹500. Brokerage is main charge in trading account it is different broker by broker they will charge like 0.03% on your Trading value.
You bought 10 shares of Yesbank at 300 per share 300*10=3000 and you sold those 10 shares at 305 305*10=3050 per share here your Profit will be 3050-3000=50 and your Trading value will be 3000+3050=6050 hence your brokerage will be 6050*0.03%=₹1.815.
AMC is charged yearly mostly broker companies charge 0 in first year.