It is imperative in todays day and age to have a meticulous plan for allocation of finances under different heads for taking care of our future needs.It leaves us with a very confusing situation of deciding about allocation between debts,equities etc.
While debt instruments like govt bonds,P.O savings scheme etc. provide security of regular returns,their rate of returns are very low when compared to average returns from the market over long periods of time.
Equity instruments like stocks on the other hand give higher returns but make a layman shudder due to the volatility and high risks involved.It has to be understood that equities can generate higher rate of returns over long periods of holding but subject to the quality of investments that are made in the markets.Any shares,stocks are to be bought after doing a thorough research about the future prospects of the company in which investments are to be made.
If not comfortable with the idea about entering the markets personally,then what are mutual funds for?They are next best bet for entering the markets through a VIA route and the vast knowledge and resources of these fund houses also help in reducing the risks.However,before investing in any of these funds it is important to have a look at there past performance and the returns they have delivered.
This presents the difficult question of the percentage of risks that can be taken at any age and choosing between amount of debts and equities.For this a simple formula can be:
% of Rate of Risk = 100 - Current Age .
Cheers
Monday, August 07, 2006
Sunday, August 06, 2006
Tips for Trading
# Respect the Trend. Always and Always trade in the direction of the trend.
#Add more positions only if current position is profitable .
#Never buy or sell just because the price is low or high .Justify your action.
#Never average a loss or hedge a losing position .
#Always use stop loss orders. Never cancel a stop loss after you have placed it and use trailing stoploss once in profit.
#When in doubt, get out, and don't get in when in doubt .
#Be willing to make money from both sides of the market .There is no point in being only a Bull or a Bear.We are here to make profits and not emotional attachments.
#Never change your position without a good reason .
#Avoid trading after long periods of success or failure .
#Don't try to guess OR time the tops or bottoms. It is not possible.
#Never ever let a winning trade turn into a loss making one.
Cheers
#Add more positions only if current position is profitable .
#Never buy or sell just because the price is low or high .Justify your action.
#Never average a loss or hedge a losing position .
#Always use stop loss orders. Never cancel a stop loss after you have placed it and use trailing stoploss once in profit.
#When in doubt, get out, and don't get in when in doubt .
#Be willing to make money from both sides of the market .There is no point in being only a Bull or a Bear.We are here to make profits and not emotional attachments.
#Never change your position without a good reason .
#Avoid trading after long periods of success or failure .
#Don't try to guess OR time the tops or bottoms. It is not possible.
#Never ever let a winning trade turn into a loss making one.
Cheers
Saturday, July 29, 2006
Markets last week
Hi,
Contrary to popular views,Nifty surged sharply and gained 6.3% in the week.Now,thanks to the sharp recovery,the overall mood has turned bullish atleast for the short term and the gains/mood should be maintained on monday too for reflecting on the rest of the week.
Index heavyweight SBI posted numbers on the wrong side and below the market expectations but still moved contrary to market expectations and saw the return of momentum on its counter.
Another heavyweight Reliance Inds, underperformed the markets.Its prices are currently struggling with its 50 day moving average lying at 990.Wait for it to breach this level with heavy volumes before going long on it.
Cheers
Contrary to popular views,Nifty surged sharply and gained 6.3% in the week.Now,thanks to the sharp recovery,the overall mood has turned bullish atleast for the short term and the gains/mood should be maintained on monday too for reflecting on the rest of the week.
Index heavyweight SBI posted numbers on the wrong side and below the market expectations but still moved contrary to market expectations and saw the return of momentum on its counter.
Another heavyweight Reliance Inds, underperformed the markets.Its prices are currently struggling with its 50 day moving average lying at 990.Wait for it to breach this level with heavy volumes before going long on it.
Cheers
Motor Accidents Claims
Hi,
A motor accident has two variables, firstly, is the commission of criminal offence and secondly, compensation claim by the dependants(in case of death) or the victim himself.Section 166 of the Motor Vehicle Act prescribes the procedure for claiming compensation which will be determined by the Tribunal taking note of responsibility for the accident, the damage suffered, age of the victim, his income,special diet,transportation,hospital expenses and other relevant factors. The person responsible for causing the accident by rash and negligent driving is liable to be booked for criminal offence, and also liable to pay compensation to the victim. However, if the vehicle is insured, insurance company will be liable to pay.
Claims can be made for demise,injury,permanent disability due to to rash and negligent driving by the driver of the offending vehicle.In case of an accident both the owner and the driver have to be impleaded as parties alongwith the insurer of the vehicle.An interest on the total amount can be claimed from the date of filing of the suit.
A copy each of the FIR filed in the concerned police station,medical/hospital report,death cetificate has to be filed in the case file to prove the accident and its effects.
Cheers
A motor accident has two variables, firstly, is the commission of criminal offence and secondly, compensation claim by the dependants(in case of death) or the victim himself.Section 166 of the Motor Vehicle Act prescribes the procedure for claiming compensation which will be determined by the Tribunal taking note of responsibility for the accident, the damage suffered, age of the victim, his income,special diet,transportation,hospital expenses and other relevant factors. The person responsible for causing the accident by rash and negligent driving is liable to be booked for criminal offence, and also liable to pay compensation to the victim. However, if the vehicle is insured, insurance company will be liable to pay.
Claims can be made for demise,injury,permanent disability due to to rash and negligent driving by the driver of the offending vehicle.In case of an accident both the owner and the driver have to be impleaded as parties alongwith the insurer of the vehicle.An interest on the total amount can be claimed from the date of filing of the suit.
A copy each of the FIR filed in the concerned police station,medical/hospital report,death cetificate has to be filed in the case file to prove the accident and its effects.
Cheers
Sunday, July 16, 2006
Tata Coffee
Dear All,
Tata coffee has come up with a rights offer.It is currently on a run thereby registering new highs in this volatile market.It is also increasing its international presence with big acquisitions and getting on a strong foothold and making a good base for itself in international markets which it shall be able to exploit in future.With more and more people getting hoooked on to the coffee bandwagon in India also and new coffee outlets also opening up in upmarkets with every passing day,this should help the company in incresing its profits and order book.
Currently,the stock has run up quite a lot from its 270 levels touching a high of 417 and its CMP is at 368 on the back of oversees acquisitions report.It should be accumulated at around 330 level and this will surely give great returns in the long term.
Cheers
Tata coffee has come up with a rights offer.It is currently on a run thereby registering new highs in this volatile market.It is also increasing its international presence with big acquisitions and getting on a strong foothold and making a good base for itself in international markets which it shall be able to exploit in future.With more and more people getting hoooked on to the coffee bandwagon in India also and new coffee outlets also opening up in upmarkets with every passing day,this should help the company in incresing its profits and order book.
Currently,the stock has run up quite a lot from its 270 levels touching a high of 417 and its CMP is at 368 on the back of oversees acquisitions report.It should be accumulated at around 330 level and this will surely give great returns in the long term.
Cheers
Wednesday, July 12, 2006
Infosys Posts Robust Numbers
Dear all,
As posted yesterday,Infosys has been able to post great Q1 results and on the back of these great set of nubers Sensex made an intra day gain of more than 300 points(3%).Infosys gained 8% in intra day trade.Now,we may also expect that Index heavyweights like TCS,Wipro,Satyam should post good numbers and drive the markets up.
IT had not been a very enthusiastic participant in the recent bull run but now with Infosys and expected results from abovementioned majors,they should make Markets go up in the short term.
Oveall,the markets are still in a choppy mood as the retail investors are not participating due to fear and confusion which shall now change gradually with good set of numbers pouring in.But,IT has to be supported by other sectors like FMCG,Cement etc also for changing the trend and the volatile mood of our Markets.Trade only in small lots and do not keep positions open for long as of now as any volatility will trigger your stops either way.
Cheers
As posted yesterday,Infosys has been able to post great Q1 results and on the back of these great set of nubers Sensex made an intra day gain of more than 300 points(3%).Infosys gained 8% in intra day trade.Now,we may also expect that Index heavyweights like TCS,Wipro,Satyam should post good numbers and drive the markets up.
IT had not been a very enthusiastic participant in the recent bull run but now with Infosys and expected results from abovementioned majors,they should make Markets go up in the short term.
Oveall,the markets are still in a choppy mood as the retail investors are not participating due to fear and confusion which shall now change gradually with good set of numbers pouring in.But,IT has to be supported by other sectors like FMCG,Cement etc also for changing the trend and the volatile mood of our Markets.Trade only in small lots and do not keep positions open for long as of now as any volatility will trigger your stops either way.
Cheers
Tuesday, July 11, 2006
Dear all,
Markets are in a choppy mood.We will have to wait for infosys Q1 results till 12/07/06 and then take further positions in the market.Infy should be able to post robust numbers on the back of a strong U.S dollar and if it happens then then TCS,Satyam,Wipro et all shall definitely drive the market in the short term.Till then better keep out and wait for clearer signals.
Cheers
Markets are in a choppy mood.We will have to wait for infosys Q1 results till 12/07/06 and then take further positions in the market.Infy should be able to post robust numbers on the back of a strong U.S dollar and if it happens then then TCS,Satyam,Wipro et all shall definitely drive the market in the short term.Till then better keep out and wait for clearer signals.
Cheers
Subscribe to:
Posts (Atom)
