Friday, October 24, 2014

Short equity taking position and covering equity position

       short equity taking position and covering  on stock market


                         it's about short position and covering (equity segment)

Short Trades In stock market you can find people who are really need to buy stocks to gain benefits in the raising market, but most of the time market can't fallow upper trend so correction may take place, during in that situations how people need to react in stock market. people not only buy stocks to gain in raising market but they also take advantage in the falling market. here people sale the stocks first without buying the shares first then they will buyback their shares for covering their position, see the example if share is quoting around 330 now they will sell first, if if falls below 330 then they will buyback their shares for covering their position so time is limited on short selling, so during the day they need to cover their positions.

Wednesday, October 22, 2014

Top Twenty investment principles for beginners traders in stock market

                         stock market investment principles 

                             major stock market investment principles

Every stock has specific trend over period of time so you may be observe some times few of the stocks have broad scope to increase but majority of stocks may not move further instead of it, it will fall sharply so how we need to understand the stocks and market. Here are the some basic points need to be understand before investing on various stocks.

           principles are listed below

1) Is the stock fundamentally good?
 2) Is the stock technically better ?
 3) is the stock fallowing any trend or news?
 4) whether the stock is moving against expectations? find out reasons if yes?
 5) Further company commitments or orders towards clients (future improvement)
 6) checking that whether the stock already reached destination
7) understanding the breakout points
 8) Deliverable quantity whether increased or decreasing
 9) keep Book profits or losses for reducing more risk
10) understand yourself that whether you are day trader or short term or long term investor.
11) keep stop loss, if you want to trade on day trading
12) diversify your investment especially in short term or long term in order to minimize risk.
13) always try to book profits around 15% on investment ,if you still expect more than that then you are inviting more risk so in-fact takes long time to achieve your targets.
14) estimate brokerage on every trade you do on investment. remember brokerage changes for day trading and Deliverable trade.
15) Generally people make mistake by investing less money but taking high margin on investment so it leads losses once the stock fallows reverse trend against your bought price so a) take less margin on your investment b) book small profits c) keep a stop loss on your view ( not given by expert)
16) Buy every stock on low and sell on high this formula need to be followed by everyone.
17) Try to avoid short selling if your not a expert on stock market because there is only limited time to cover your position before ending the session. I personally suggest not do so many trades in a day.
18) short selling is too dangerous because generally people prepare to invest their money by accepting uncontrollable risk.
19) don't fallow any advice given by any one of them even friends or relatives so and so because self analysis is necessary while investing money , even a person doesn't have knowledge on stock market then take most expert advice go for long term investment and diversify your investment , do analysis at least every 6 months once.
20) don't fallow the crowd on market but crowd should fallow you.

Monday, October 20, 2014

capital management rules for success of business


                capital management rules for success of business

Working capital management has broad scope on industry,company and all organizations to maintain balanced business to avoid working gaps during the working hours and they are so many working capital used by organizations but mostly and commonly use two types of working capital.
 1) temporary working capital
 2) Fixed working capital Temporary working capital refers where money can be spend on to meet day to day expenses.
 Fixed working capital refers to use for long term to balance the business. anyhow spending money is an art because situations and conditions made us to make decisions.