Insanely Practical

If the market condition is not good and impossible to predict even to the half probability, then there is nothing wrong with staying out of it untill you find the time after things loosen up.

Expecting a big move while with the formation of wide CPR is unwise. CPR indicates the movement in advance and studying deeply about it before taking a trade is extremely beneficial.

Panic selling the cause of loss. If we invest in a very good company with strong fundamentals and a leading player in the growing industry, there is no point in worrying about the correctionms that the market gives. Market always corrects if the valuations are in a state of bubble. You should be focusing on companies that are fundamentally good.

It is evident that the highly valued stocks always corrects itself. It doesn't matter whether it is in a booming industry or a company with solid fundamentals, once it reaches high valuation, it will someday somehow corrects itself. By somehow I meant that the usual occurance in stock market. The news, people's psychology, candlestick formation, poor financial results, corporate mismanagement, lawsuits and price action. It is not necessary that any of this should contribute to the fall. But one thing for sure is that, once overvalued, it always corrects.

When the current price of a stock is way higher than its book value, then it is the time to think before investing. It means then the share is over priced and we can expect a correction sooner or later. Once the fundamentals are equally balanced, them the further movement indicates the real trend.

There is nothing insaner than investing without knowing the basic fundamentals of a company. A company should be subjected to study before investing. People those who invests based on news and tips often get in trouble and finally concludes that stock market is a gambling. This is wrong and stupid. But with internet we can make better decision to win the stock market. And guess what? Everything that you need to become a successful investor are freely available in the web.

 Sectorial indices are greatly useful when it comes to economy of nations. By viewing their rate of growth, we can say how the country is aligned with the global trend. For the past couple of days we see the rapid growth of IT sectors and how they are affecting the economy. We can briefly calculate the number of opportunities they are offering.  

Market doesn't fall for same reason twice.

Cutting down the expenses is one of the way to increase revenue. Some companies perform better from last year due to increased number of product sales and services extended. This surely get reflected in the financial statements issued. Therefore more revenue can be generated without cutting the unwanted expenses. Even for companies with solid management teams, cutting expenses are really hard as it requires a total makeover. But some times it makes sense to do so.

Market corrections are obvious and being used to it is the best part of earning money.

Booking a loss in investing or trading is a part of the process. No trader in the world has become a trader without booking the loss. Loss is inevitable while trading. Look at any field or any career path, there we can see failure ad a probability. Failure means a test where we can check ourselves whether we would be able to sustain or not. Everything in the universe brings failure as a probability. Without failure nothing is complete. We can even congest it with death. Death is an equalizer and life would be incomplete without it. That’s how failure is associated with success. In order to taste the sweetness of success we must first taste the failure. Trading we can say is a volatile and riskier game. There is no middle ground. Either you lose money or win the jackpot. Our goal is to convert the success probability as the most possible outcome. Once we win this, we could see ourselves getting improved. We can say the more we try the more we fail, thus the more we succeed. One of

People when came to know about the benefits of index trading, they migrate to it. There are several reasons. It varies from person to person. One may say trading in indices are reliable. Newbies are always advised to trade in equities before entering into the derivative market. Equities are less volatile and very good to learn and earn. You pay less for your losses or in other way, for the things you learnt. This is obvious and people go through this as usual. But there are people who skips the equity market directly to the derivative with only one and only reason, to get rich quick. With that in mind loss is guaranteed. Experienced traders choose indices for not or less being manipulated. Because of the volume and less volatility, it is safer to trade than other segments. It is also very reliable. Even the disappearance of number of heavyweight cannot make the indices disappear. That is a very good point to remember and keep in mind while selecting which one to trade. Whenever we t

 When it comes to trading the patterns play a huge role in reaping the reward. The reward for the risk is what each trader hopes for. Sometimes the risk shows its part by showing us the loss. But loss is just a part of the game. Whenever there occurs a loss we tend to go in full revenge mode burning all the rest of the money. We know that is a wrong approach, but we do it frequently. The reason is we don’t like being a loser. At least we need the money we put in. Forget about the profit and focus on the investment. But that is wrong and dangerous. Because markets work against psychology. An emotionally weak person always has a weak portfolio and a weak profit and loss statement. When you become a person with a rigid mentality and have the patience for the right time execution, then it is very much rewarding. That is why when we a good trader he is patient and well disciplined. Discipline is necessary since money is involved. An indisciplined person keeps liability more than an asset. H

 The thing with trading with real money comes with a lot of problem. The first reason is the lack of experience. Since trading involves a lot of things, it takes time to get in flow. During those times trading will the real money causes a lot of trouble. People often go out money because of the inexperience in trading. On the other side, experience only comes when we trade. This is a paradox. But money is not a very good option to start with. With the kind of technology available today, we can create any experience that is not real, but gives the taste of the experience. In the field of trading, it comes in the way of paper trading. People born at this era has this advantage, they can practice as much as they want until they develop their own strategy. But a couple of days ago, this is not the case. In order to enter into a trade you have to play with real money. That is why most people never ever tried trading in their life. Once an individual trade with real money, but with lack of k

Whenever the price of goods and services increases, it is normal that there must be an involvement of central banks to increase the interest rate and thereby balancing the economic growth as with inflation. It is global and most practiced. But when something other than usual happens and central authorities standing on the same decision is what induces a threat. In the surge of covid, while people tried and landed upon investing in public and private equities, it generated a great cash flow in the free float market. After a quick dip, the stock market recovered and made it to the track. That is good sign. Amid this the global governments were forced to decrease the repo rate, fearing the growth of economy. The decision that happened is yet to reveal the results. But the results might not be controlled, because once the participants tremble to stay upon momentum and get suspicious, market falls down brining download most of the goods with it. The employed people might get unemployed aga