Posts

Showing posts from December, 2018

How to find and invest in blue-chip stocks for long-term?

Image
The stocks that are of high quality, the companies which are established, big, renowned, and are in the market for decades are called blue chip stocks .  Blue chip stocks got their name from the poker game. In a poker game, there are three colored chips white chips (valued at $1), red chips (valued at $5), and blue chips (valued at $10).  Blue chip  is an analogy that is used for identifying the “most valued stock”. What factors make a stock/company “blue chip”? There is a combination of factors that transform a stock into a blue-chip stock means the stocks Which has the largest market share Is highly valued. Has strong financial standing. Pays regular and  high dividend . The company is large and established one. Strong and known brand name. Which has high weight-age in main stock indices etc. Blue chip companies have the largest market share Every company operates in a specific sector or industry and there can be many companies operating in similar sector/indu

Why should you start stock investing early?

Image
Most of the people are confused between saving and investment. Saving is usually for a small duration and is for short-term goals. Investment is for long-term goals and is usually for more than five years with the future plan like education, home, retirement, etc. In savings, there is hardly any risk as you are insured by the government if something goes with the banks. While in investments you may lose some or all your money you invest. Better use surplus money that is with you. You earn interest on your savings which are very limited, sometimes not even beating inflation. Investments, on the other hand, have the  potential to give you returns  which even you may not imagine, as your investments may go up in value (appreciation) over a period of time. This indirectly improves your net worth and change lifestyle. Investing is growing money over period of time Always remember greater the risk of your investment, higher potential return or loss of money. But by taking the calc

How much money do you need to invest in stocks market?

Image
The Indian stock market is basically divided into two stock exchanges.  National Stock Exchange  (around 2000 companies listed) and  Bombay Stock Exchange  (around 5000 companies listed). The companies listed and traded on the stock exchange have a price range from low of Re. 1 to the high of Rs. 74000 per share. Now the question is how many numbers of shares you wish to purchase and of which company? Also, note the broker will charge you brokerage charges and certain mandatory government taxes. Investors are often confused about how much minimum amount they can invest in the stock market. There is no rule as to what minimum and maximum amount one can invest in stocks . Though this question has been asked by those who wish to  start investing in the stock market , it might have crossed others’ mind too who are sitting on the fence, and who have small regular savings. Technically your bare minimum amount required depends upon the requirements of the brokerage firm to open an

Number of hours extended for commodity derivative segment

Image
SEBI, the capital and commodity market regulator has decided to increase the trading time in the commodity derivative segment only. The time is extended by an hour to spread the commodity derivatives market and also enhance the part-taking of stakeholders which includes foreign entities and farmer-producer organization. For agriculture and agri-processed  commodities , the trading hours will be from 9 AM to 9 PM. And for non-agriculture commodities the trading hours will be from 9 AM to 11:55 PM. SEBI cleared that it has decided to extend trade time and recognized stock exchanges are to adjust to set up their trading hours only for the commodity derivatives segment. It is on the condition that there shall be enough volume. Increased hours are in line with the recommendations by Commodity Derivatives Advisory Committee. In the past for non-agriculture commodities SEBI had fixed time from 10:00 AM to 11:55 PM and for agriculture commodities, it was from 10:00 AM to 9:30

How to trade in BTST and STBT stocks?

Image
BTST (Buy Today Sell Tomorrow) and STBT (Sell Today Buy Tomorrow) are the terms used in the share market. Traders are always on a lookout for opportunities to make more money in the market. The decision to sale/purchase the stock is driven by its fundamental and technical strength. The confidence of the  trader  also plays a crucial role in it. What is BTST? It is a short-term opportunity wherein the trader purchases share today in cash or F&O segment and sell it the next day. The trader does not hold long positions. This BTST position is taken by a trader in those stocks which are expected to trade at a higher price tomorrow. What is STBT? It is also a short-term opportunity wherein the trader sells the stock today in an F&O segment and purchases back the next day. This is not possible in the equity segment of the stock market. This position is taken by the trader in those stocks which are expected to sell at a lower price tomorrow. Difference between BTST/STBT