Author: StockIsy

Best Stocks For Long Term Investment

Today we will discuss the best stocks for long term investment. These stocks can give you a better return. Don’t miss the chance just go & invest in these stocks. These stocks are fundamentally & technically strong stocks. Let’s analyze some best stocks for long term investment.

1.RELAXO FOOTWEARS

Relaxo Footwears Limited is an Indian multinational footwear manufacturer based in New Delhi. It is the largest footwear manufacturer in India in terms of volume and second-largest in terms of revenue.[4][5] The company makes products under 10 brands including Flite, Sparx, Bahamas and Schoolmate.

Market Cap ₹ 23,716 Cr.

Debt ₹ 174 Cr.

ROE 14.0 %

Sales growth 12.5 %

Promoter holding 70.8 %

Stock P/E 102

Industry PE 55.1

ROCE 18.0 %

2.ALKYLAMINE

Incorporated in 1979 by Mr Yogesh Kothari, Alkyl Amines is a leading manufacturer of aliphatic amines in India. Aliphatic amines are products derived from Ammonia (NH3) by displacement of H2 in the Ammonia molecule by other radicals (R) such as Methyl, Ethyl and Propyl.

Market Cap ₹ 13,531 Cr.

Debt ₹ 23.3 Cr.

ROE 25.2 %

Sales growth 24.2 %

Promoter holding 72.0 %

Stock P/E 60.2

Industry PE 22.1

ROCE 33.0 %

3.ULTRACEMCO

UltraTech Cement Limited is an Indian cement company based in Mumbai, and a part of Aditya Birla Group. UltraTech is the largest manufacturer of grey cement, ready-mix concrete (RMC) and white cement in India with an installed capacity of 116.75 million tonnes per annum. It is the only company in the world to have a capacity of over 100 million tonnes in a single country, outside of China.

Market Cap ₹ 151,047 Cr.

Debt ₹ 11,299 Cr.

ROE 15.5 %

Sales growth 17.6 %

Promoter holding 60.0 %

Stock P/E 20.6

Industry PE 17.2

Also Read | List Of Best MidCap Stocks To Buy Now In India

27 June, 2022
JARGONS IN SHARE MARKET
There are certain terms which are commonly used in the share market that every traders in the market should be aware of. The stock market has a set of unique phrases and jargon and if you wish to be a investor in the market, it is very necessary that you are comfortable with these different terms.

To understand the stock market and it’s functions, you need to have a basic knowledge of this jargons. So, we are here with some important terms which are mention below.
1. GTC – Good Till Cancelled
2. STT – Securities Transaction Tax
3. MCX – Multi Commodity Exchange
4. BSE – Bombay Stock Exchange
5. NSE – National Stock Exchange
6. NCDEX – National Commodity & Derivatives Exchange Of India
7. IPO – Initial Public Offer
8. QIP – Qualified Institutional Placement
9. FPO – Follow On Public Offering
10. FII – Foreign Institutional Investors
11. DII – Domestic Institutional Investors
12. FDI – Foreign Direct Investment
13. IIP – Index Of Industrial Production
14. OFS – Offer For Sell
15. F&O – Future & Option
16. IUC – Interconnection Usage Charges
17. BTST – Buy Today Sell Tomorrow
18. QIB – Qualified Institutional Buyers
19. VWAP – Volume Weighted Average Price
20. SEBI – Securities & Exchange Board Of India
21. M2M – Mark To Market
22. SL – Stop Loss
23. CMP – Current Market Price
24. CE – Call European
25. PE – Put European
26. MF – Mutual Fund
27. AMC – Asset Management Company
28. OTC – Over The Counter / Off Exchange
29. OTCEI – Over The Counter Exchange Of India
30. HNI – High Networth Individuals
31. GDR – Global Depository Receipt
32. ADR – American Depository Receipt
33. FCCB – Foreign Currency Convertible Bond
34. ECB – External Commercial Borrowing
35. NSCCL – National Securities Clearing Corporation Limited
36. ICL – Indian Clearing Corporation
37. MCCIL- Metropolitan Clearing Corporation Of India LImited
38. BOISL – Bank Of India Shareholding Limited
39. NSDL – National Securities Depository Limited
40. CDSL – Central Depository Services Limited
41. SCRA – Securities Contracts Regulation Act
42. DEA – Department Of Economic Affairs
43. ECN – Electronic Contract Note
44. KYC – Know Your Client
45. KRA – Know Your Client Registration Agency
46. UCC – Unique Client Code
47. UID – Unique Identification Number
48. DMA – Direct Market Access
49. IFSC – Indian Financial System Code
50. CSD – Central Securities Depository
51. SPAN – Standard Portfolio Analysis
52. VaR – Value At Risk
53. SI – Standing Instructions
54. SPN -Secured Premium Notes
55. IPF – Investor Protection Fund
56. IGRC – Investor Grievance Redress Committee
57. ISC – Investor Services Cell
58. AMFI – Association Of Mutual Fund In India
59. ARN – Advisor Registration Number
60. ASBA – Application Supported By Blocked Account
61. PMS – Portfolio Management Services
62. NAV – Net Asset Value
63. GTD – Good Till Day
6 February, 2022
8 Mistakes That Destroy Investors Returns
1. OVERTRADING:

The financial media promotes overtrading. Because if you’re not trading you’re not trying, right? Wrong. They create exciting stories about where markets will move and why. For many investors, the desire to play outweighs the desire to win. They rather medicate their boredom by making trades and hopping on the latest hot trend. The best traders are much less active than you’ve been led to believe. They aim to profit by riding long-term trends that play out over months and years, not minutes and hours. Trading on such short time frames gets you nowhere.

THE BEST TRADERS:
- On average, trade each market only 1-3 times per year
- Do not make predictions, but follow trends
- Do not let short-term volatility shake them out of their positions
- Do not feel the need to trade every day, every week or month; only when they see opportunity
2. GOING AGAINST THE TREND:

We all need a trend to make money. If we buy at price A, then we must sell at a higher price B in order to profit. Betting against trends is not only unnatural, but inherently unprofitable. Surfers do not try to ride waves out to sea. Those that do, wipe out – and look ridiculous. Traders do not make profit by holding long positions in downtrends or short positions in uptrends. In trading, the only thing that matters is price. Our job is to measure it and align with each market’s trend. How we do this doesn’t matter.

3. LETTING LOSSES RUN:

You must have an exit point for every investment you hold. Without one, whether you admit it or not, all of your money is at risk. Ya gotta know when to let it go. This goes for everything in life. If ascertain food doesn’t agree with your stomach, stop eating it. If an exercise gives you pain, stop doing it. If you’re dating a person who makes you miserable, break up with them and move on. When you let losses run, you waste resources – namely, time and money. But you also miss out on other opportunities. Exiting losing investments frees up your capacity to be deployed to new and possibly better opportunities in other markets or stocks

4. CUTTING WINNERS EARLY:

As the old saying goes: “If it ain’t broke, don’t fix it”. Investors are too eager to book gains, especially those that come quickly. Our lizard brain likes being right and feeling smart. When one of our investments shows a profit, our lizard brain wants us to quickly ring the register. This behavior comes at a cost though. Like pulling our flowers before they bloom, cutting winners inhibits us from generating huge gains. If you want big profits, you must hold your winners and let them grow. Investments do not always grow into big winners, but you allow them that chance. One or two big winners can make your year or even your career. You may be tempted to pull a George Costanza and go out on a high note, but George was one of the biggest losers in TV history. Selling your winners keeps your profits small and, thus, from major investing success.

PROFIT-LIMITING TACTICS INCLUDE:
- Selling a position soon after it becomes profitable
- Selling profit targets
- Selling volatility targets
- Selling price targets
5. IGNORING YOUR RISK TOLERANCE:

If you know how much pain you can take, you increase your odds of survival and winning Knowing your pain threshold allows you to grow at your desired speed. If you want to grow fast, you must take on more risk, but with more risk comes higher volatility and larger drawdowns. If you’re OK with this, great! If and when your performance becomes volatile, you won’t abandon your plan. As an investor, you want to stay away from your pain threshold or “uncle point” – the point at which you lose all faith in your plan. If your plan delivers too much volatility (especially on the downside) then you risk losing your discipline.

ADVANTAGES OF RISK AWARENESS:
- Lower stress
- Lower risk of aborting your plan
- More capable of setting and managing performance expectations
6. NOT DIVERSIFYING:

What’s the point of diversification? To reduce your portfolio’s maximum loss below that of each individual investment’s. People prefer picking winners and betting it all. The possibility of making a lot of money in a short amount of time attracts many people to this strategy. Think: the lottery. In most years, a diversified portfolio rarely beats the absolute performance of the best performing market(s) or stock(s). Consistent underperformance in the short-term can be too much to bare for some investors. So, rather than striving for steadier long-term results by building a portfolio of dierent markets and strategies, they choose to move all of their money from one market to the next attempting to catch a big winner. This strategy inherently places more emphasis on Market-timing instead of diversification.

BENEFITS OF DIVERSIFICATION:
- Rather than trade one market and experience all of the swings in that instrument, diversifying helps create a smoother ride.
- By having a large number of markets in the portfolio, you can ride the ones on the move and avoid the choppy ones
- Risking a small amount on each position, you do not have to win on every trade. You can still win even with 30-40% winners.
7. FOCUSING TOO MUCH ON WINNING PERCENTAGE:

Winning percentage matters, but so does the size of your winners. The combination of your winning percentage and average winner size tells you if you have a good strategy. No one can accurately pick winners above a 70-80% rate for an entire career. Not happening. Has never happened. Will never happen. But it doesn’t need to happen. The best traders can produce win rates of only 30-40% and still produce huge profits. How? They make up for their low winning percentage by letting their winners run. They do not cap their profit potential. If they did, then they’d have to be much more accurate in order to maintain their large profits

8. PAYING TOO MUCH ATTENTION TO NEWS AND “EXPERTS”:

Convincing media outlets can force you to jump o-your plan, often at the wrong times. TV and online personalities pitch their ideas every single day. Their job is to get you to tune in. Their strategy is selling certainty – making you believe they know what’s coming next. Investors without a plan of their own become susceptible to falling hard for convincing stock picks-jumping from one idea to the next. Media only focuses on 1) what markets to trade and 2) when to enter. They never talk about position sizing or exit methodology to protect your capital if/when the market goes against you. Investors must not concerned with pie in the sky ideas. They first must have a plan of their own and then be able to tune out other people’s opinions. When you have a plan, you already have all you need to be successful.

Also Read | Best 5 Sites for Indian Stock Market Analysis
4 December, 2020
CHART FORMATIONS

Chart patterns are the basis of technical analysis that requires a trader to know exactly what they are looking at, as well as what they are looking for. A chart pattern or price pattern is a pattern within a chart when prices are graphed. In stock and commodity markets trading, chart pattern study plays a larger role during the technical analysis. When data is plotted there is usually a pattern which naturally occurs and repeats over a period. Technical analysts have long used price patterns to examine current movements and forecast future market movements.

The assumption is made that trading results can be improved when trading skills are improved. This requires practice! Surely any time spent learning to trade on past historical data, will not be wasted when it comes to preparing to trade for the future.

TYPES OF CHART FORMATION:

Here you will learn some types of chart formations. These formations will help you to improve your trading skills.

1. TRENDLINES:

Trendlines shows the direction & speed of price, and also describes the chart patterns during periods of price contraction. Let’s discuss about which types of trendlines we can drawn:

a. INCLINING TRENDLINE

                    A straight line is usually drawn to define an uptrend against or through price bar low.

b. DECLINING TRENDLINE

A straight line usually drawn to define a downtrend against or through price bar high.

c. SUPPORT

                                   In general terms, the Support level is a price point on the chart where the traders expects maximum demand (in terms of buying) coming into the stock/index. Typically, support can be identified on a chart by a previous set of lows.

d. RESISTANCE

                                        Resistances are used by traders to refer to price level on the chart. A horizontal ceiling where the pressure to sell is greater than the pressure to buy. Therefore, an increase in price is reversed and prices revert downward. Typically resistance can be located on a chart by a previous set of highs.

2. CHANNELS:

a. INCLINING CHANNELS

                                              The inclining channel is a formation with parallel price barriers along both the price ceiling and floor. Unlike the sideways channel the inclining channel has an increase in both the price ceiling and price floor.

b. DECLINING CHANNEL

                                    A descending channel is drawn by connecting the lower highs and lower low of a security’s price with parallel trendlines to show a downward trend.

c. HORIZONTAL OR SIDEWAYS CHANNEL

                                       A horizontal or sideways is a formation that features both support and resistance. Support forms the low price bar, while resistance provides the price ceiling.

3.TRIANGLE:

a. SYMMETRICAL TRIANGLE

                             A symmetrical triangle is a chart pattern characterized by two converging trend lines connecting a series of sequential peaks and troughs. These trend lines should be converging at a roughly equal slope.

b. ASCENDING TRIANGLE

                              A continuation pattern. Price contracts with level swing highs (short term resistance) and higher swing lows (rising trendline) towards a single point. The pattern is confirmed on a break of short term resistance, usually occurring in the final third of the pattern.

c. DESCENDING TRIANGLE

                                 A Continuation pattern. Price contracts with lower swing highs (falling trendline) and level swing lows (short term support) towards a single point. A pattern is confirmed on a break of short term support, usually occurring in the final third of the pattern.

d. PENNANT TRIANGLE

                                      A continuation pattern. Price forms a short term symmetrical triangle pattern (smaller scale than the usual symmetrical triangle). The pattern is confirmed on a break of the pennant in the continuation direction.

4. WEDGES:

a. RISING WEDGE

                                  A continuation or reversal pattern. Price forms higher swing highs and higher swing lows which both converge towards one point. The pattern is confirmed on a break of the lower trendline of the pattern.

b. FALLING WADGE

                             A continuation or reversal pattern. Price forms lower swing highs and lower swing lows which both converge towards one point. The pattern is confirmed on a break of the upper trendline of the pattern.

5. FLAG:

                           A continuation pattern. Price forms a short term consolidation, tilted against the direction of the market trend, between approximately parallel sloping support & resistance. The pattern is confirmed on a break of the pattern in the continuation direction.

6. DOUBLE TOP:

                                    A reversal pattern at the top of an uptrend. Price forms to highs at approximately the same price level. The pattern is confirmed on a break of the intermediate swing low.

7. DOUBLE BOTTOM:

                                          A reversal pattern at the bottom of a downtrend. Price forms two swing lows at approximately the same price level. The pattern is confirmed on a break of the intermediate swing high.

8. TRIPLE TOP:

                             A reversal pattern at the top of an uptrend. Price forms three swing highs at approximately the same price level. The pattern is confirmed on a break of the lowest of the intermediate swing lows.

9. TRIPLE BOTTOM:

                                     A reversal pattern at the bottom of a downtrend. Price forms three swing lows at approximately the same price level. The pattern is confirmed on a break of the highest of the intermediate swing highs.

10. ROUNDED TOP:

                               Anticipate change in price from up to down.

11. ROUNDED BOTTOM:

                                        Anticipate a change in price from down to up.

12. HEAD & SHOULDERS:

                                        A reversal pattern at the top of an uptrend. Price forms a swing high, a higher swing high, and a lower swing high. The pattern is confirmed on a break of the neckline – the line joining the intermediate swing lows.

13. INVERTED HEAD AND SHOULDERS:

                                            A reversal pattern at the bottom of a downtrend. Price forms a swing low, a lower swing low, and a higher swing low. The pattern is confirmed on a break of the neckline – the line joining the intermediate swing high.

24 November, 2020

PENNY STOCKS

DEFINITION:

“Penny stocks are those that trade at a very low price, have very low market capitalization, are mostly illiquid, and are usually listed on a smaller exchange. Penny stocks in the Indian stock market can have prices below Rs.10/-. These stocks are very speculative in nature and are considered highly risky because of lack of liquidity, smaller number of shareholders, large bid-ask spreads and limited disclosure of information.”

The concept of Penny stocks originated in the USA and derived from the unit of currency called “penny”. Penny is equivalent to one hundredth of USD. Penny stocks or penny shares as they are referred to are stocks which trade at a low prices and have extremely low market caps. In India, usually stocks which are priced below Rs.10/- are commonly known as penny stocks.

However, it is important to note that not all stocks which are priced low are penny stocks. Some great companies and businesses may also be trading at single or double digit prices due to smaller face values but they are essentially large companies with large capital structures and market capitalization and not essentially penny stocks. Therefore it is very important to distinguish between penny stocks and penny business.

5 things you must know before investing in penny stocks in India:

1) Don’t look at the share price, but look at the value:

Penny stocks are available at a relatively low share price. Share price would tempt investors to buy in such stocks. For example, Infosys stock price is Rs.2,180/- per share. On the other hand, one of the penny stocks like GV Films is Rs.0.58/- per share. Now if you have Rs.10,000/- to invest, you would get only 4 Infosys Shares, while on the other hand you would get 17,240 shares of GV Films. Here one should not think how many shares they are getting, but what value these stocks offer. I am not saying this penny stock is good or bad, but an investor should assess how good such a stock is before investing in such stocks.

2) Low volumes means low liquidity:

Several Penny stocks generally trade at low volume. Means if you want to sell and come out, there might not be any buyers. Hence invest in penny stocks that have high volume so that you can liquidate if required. E.g. Odyssey Corp share price is Rs.4.23/- and avg. trading volume is 24,200 shares only. The maximum amount traded is only Rs.1 Lakh. Such stocks have less liquidity as it would depend on demand from buyers.

3) Upper circuit and lower circuits:

Penny stocks have upper circuit and lower circuit. Upper circuit means a stock price cannot increase beyond a predetermined percentage move. Generally it would be 5% to 10%. Lower circuit on the other hand means a stock price cannot reduce by specified percentage. As an investor, you should know that you cannot double your money in a short span, just because a stock has been locked in the upper circuit for a couple of days. Penny stocks may see the upper circuit for a few days and can see the lower circuit by a few days based on demand from buyers.

4) Brokers / Promoters can manipulate share prices:

Since penny stocks have low volume, share prices for such stocks can be easily manipulated by market participants, stock brokers or promoters of the company. If a penny stock price is reaching the upper circuit every day without any news about the company, it clearly indicates that someone is manipulating the share price. As an investor if you hear positive news about the company and think the future prospects are good, you can invest in a company irrespective of whether it is hitting the upper circuit or not.

5) Ignore success stories:

Many stock brokers, websites, blogs, etc. indicate a success story about penny stocks. While these look good, no one wants to talk about hidden stories about investors losing money on penny stocks. Many brokers charge high fees, giving penny stock recommendations indicating a success story saying a penny stock raised by 100% or 500%. Investors fall for that trap, invests and loses money. As an investor, you should understand why a penny stock price has gone up, the reasons behind that and future prospects. If you are convinced by this, you can adopt similar strategies for other penny stocks and invest based on such strategies.

Here are the some List of Penny Stocks:

SERIAL NUMBER	STOCK SYMBOL (NSE)	PRICE (IN INDIAN RUPEES)
1	3IINFOTECH	2.3
2	3PLAND	6.15
3	A2ZINFRA	8.45
4	AKSHOPTFBR	6.95
5	ANDHRACEMT	2.05
6	ANIKINDS	8.3
7	ANSALAPI	5.25
8	ASHIMASYN	7.25
9	ATLANTA	6.35
10	BAJAJHIND	6.95
11	BHANDARI	1.3
12	BILENERGY	1.05
13	BKMINDST	0.7
14	BLBLIMITED	4.1
15	BLKASHYAP	9.2
16	BSELINFRA	1.05
17	BURNPUR	1.5
18	CELEBRITY	6.9
19	CENTEXT	2.5
20	CHROMATIC	0.5
21	CINEVISTA	8.15
22	CKFSL	0.45
23	CNOVAPETRO	7.85
24	COMPUSOFT	7.8
25	COUNCODOS	1.65
26	DHARSUGAR	8.05
27	DIGISPICE	5.05
28	DPSCLTD	9.05
29	DUCON	5.25
30	ENERGYDEV	6.4
31	ESSARSHPNG	6.7
32	FCSSOFT	0.25
33	GAL	2.3
34	GENUSPAPER	5.2
35	GINNIFILA	8.25
36	GISOLUTION	2.55
37	GLOBOFFS	5.35
38	GOLDTECH	8.4
39	GTL	1.6
40	GTLINFRA	0.4
41	GTNIND	6.25
42	GVKPIL	3.95
43	HCL-INSYS	7.3
44	HINDMOTORS	5.9
45	HOTELEELA	5.9
46	IDEA	6.1
47	IFCI	6.7
48	INDBANK	7.1
49	INDOWIND	3
50	INDSWFTLTD	3.1
51	ISMTLTD	4.5
52	IVC	4.1
53	JAYNECOIND	3.6
54	JBFIND	7.25
55	JISLDVREQS	8.6
56	JISLJALEQS	9.1
57	JMTAUTOLTD	1.25
58	JPASSOCIAT	2
59	JPINFRATEC	1.35
60	JPPOWER	1.7
61	KMSUGAR	8.05
62	LGBFORGE	3.7
63	LPDC	1.6
64	LSIL	0.55
65	LYPSAGEMS	4
66	MADHUCON	3.75
67	MAGNUM	3.65
68	MANAKALUCO	4.45
69	MANAKCOAT	4.25
70	MBLINFRA	4.45
71	MCLEODRUSS	4.55
72	MEGASOFT	7.35
73	MERCATOR	0.85
74	METALFORGE	4.85
75	MIRCELECTR	8.6
76	MOHITIND	4.3
77	MOHOTAIND	8.85
78	MSPL	7.35
79	MTNL	9.9
80	NAGREEKCAP	7.6
81	NATNLSTEEL	2.25
82	NECCLTD	5.45
83	NEXTMEDIA	9.7
84	NIBL	6.6
85	NILAINFRA	4.5
86	NILASPACES	1.15
87	NOIDATOLL	3.45
88	OISL	3.15
89	OMKARCHEM	4.85
90	ONELIFECAP	6.75
91	OPTOCIRCUI	2.95
92	OSWALAGRO	5.7
93	PARACABLES	8.5
94	PENINLAND	4.05
95	PILITA	5.6
96	PRAENG	6.05
97	PRAKASHSTL	0.25
98	PROSEED	0.3
99	PSL	0.55
100	RADAAN	1.05
101	RENUKA	9.2
102	RHFL	2.85
103	RKDL	5.4
104	ROLLT	1.85
105	RPOWER	3.5
106	RTNPOWER	2.1
107	SABEVENTS	0.65
108	SABTN	1.25
109	SAKHTISUG	9.25
110	SAKUMA	6.75
111	SALSTEEL	2.75
112	SAMBHAAV	2.55
113	SANWARIA	1.7
114	SCAPDVR	0.2
115	SEPOWER	2.7
116	SETUINFRA	0.85
117	SGL	6.05
118	SHAHALLOYS	8.55
119	SHIRPUR-G	8.15
120	SHREERAMA	5.2
121	SHRIRAMEPC	5.1
122	SHYAMCENT	3.05
123	SIMBHALS	6.95
124	SOMATEX	3.5
125	SREINFRA	9.8
126	STAMPEDE	0.45
127	STINDIA	4.6
128	SUBEX	6.15
129	SUNDARAM	1.3
130	SUPREMEINF	9.65
131	SURANASOL	6.35
132	SURANAT&P	3.55
133	SUZLON	2.7
134	SYNCOM	0.9
135	TALWALKARS	3.7
136	TALWGYM	3.45
137	TCIFINANCE	8.45
138	TECHIN	3.1
139	TGBHOTELS	3.6
140	TIJARIA	7.25
141	TREEHOUSE	5.35
142	TRIDENT	6.75
143	TRIL	7.7
144	TTML	2.35
145	TVVISION	1.2
146	UJAAS	4
147	UMESLTD	1.05
148	UNIPLY	8.95
149	UNITEDBNK	8.85
150	UTTAMSTL	8.4
151	UVSL	0.15
152	VASWANI	5.3
153	VIJIFIN	0.45
154	VIKASECO	2.9
155	VIKASMCORP	3.2
156	VIKASPROP	7
157	VIKASWSP	8.8
158	VIPCLOTHNG	8.45
159	VISASTEEL	5.05
160	WSI	0.85
161	ZENITHBIR	0.5

28 October, 2020

Common Mistakes by Traders

Everyday many people enters in to the share market with a lot of expectations of making a huge money in less time. People generally thinks that share market is all about making a lot of money in less time with low investments. And entering in this world with such a wrong expectations leads to a big mistake for the investors. Though it is understood that making a mistake is a part of learning but, learning at such a high risk it’s really a chapter of worry. So, before entering into the market it is very necessary to learn that how to do trading in share market.
As there are many mistakes which a traders usually makes day-in day-out. But after a deep study of many mistakes we are here with few of them which a traders commonly makes.

1. Not calculating the RRR (Risk- Reward Ratio):

                   Many traders do not calculate the risk-reward ratio of their capital & also does not calculate the risk -reward ratio of the stocks before placing the orders/trade. Before establishing a position in stock market you have to be prepare with your Risk-Reward Ratio.

2. Failure to implement stop loss orders:

   Without a Stop Loss only one trade of yours can wipe all your profits and substantial amount of capital as well. Always follow your Stop Loss. Once your stop loss is hits it indicates that it’s a time for you to take your loss & get out of the trade.

3. Not Having a Trading Plan or Not trade as per plan:

New traders, they do not plan any trading strategy for the next day, they just jump in the market without any trading plans. It is harmful for traders to dive in the market without doing a homework. Your plans should outline your risk management rules. It should also outline exactly how will you enter and exit trades in both win and lose situation.

4. Averaging Down (or Up) to Redeem a Losing Position:

Adding to a losing trade is a dangerous practice. The price can move against you for much longer than you expect, as your loss gets exponentially larger.

5. Changing your trading strategy after losing some trade:

Losing is unavoidable and even the best traders will regularly realize losses. Changing your approach after a few losing traders sets you back on the learning curve. Stick to your approach, every losing streak will end.

6. Not using a trading Journal:

               One of the surest signs that you do not have a future as a trader is when you do not have a trading journal and claim that you do not need one.

7. Trade based on your Gut:

                This is a similar mistake for new traders. When a gut feeling is your only reason for entering a trade, that’s one of the trading mistakes too many people make while trading. First learn how to read charts , learn to follow trend lines. Learn from your mistakes by keeping trading records.

8. Try to anticipate the news:

Often the price will move in both directions, sharply and quickly, before picking a sustained direction. That means you will likely be in a big losing trade within seconds of the news release. So anticipating a news plays a very important role in stock market.

9. Shirking Homework:

When we make profits , we reduce our homework which creates overconfidence & makes us desperate to participate in loose trades. Homework was not only important in school but it is equally or more important in the market.

10. Start trading without Knowledge:

                         Most of the beginners enter the share market with zero knowledge. This is the common mistake made by the traders. Without knowledge you can not make profit and people (firms) make you fool. And you always make decisions based on other news channels & others opinions. Without knowledge you guys can not raise your win trade.

11. Overconfidence after a profit:

                       When a new trader made his first profit in the share market then they feel that they have superior skill and also felt that nothing will go wrong. It is overconfident. Overconfidence is risky for traders because they believe that they predict the market movement; it is not possible for anyone to predict the perfect market movement, not you, nor me or any professional Institute.

12. Follow Others Instructions:



                     When beginners start their career in the share market they follow their friends opinion, other brokerage firms instructions or news channels. This is the reason new traders lose their money.

Also Read | 8 Mistakes That Destroy Investors Returns

27 October, 2020
MOVING AVERAGE
Definition:

              “ A moving average is simply the average value of data over a specified time period, and it’s used to figure out whether the price of a stock or a commodity is trending up or down. Although simple to construct, moving averages are dynamic tools, because you can choose which data points and time periods to use to build them. For instance, you can choose to use the open, high, low, close or midpoint of a trading range and then study that moving average over a time period, ranging from tick data to monthly price data or longer.”

          Moving Average (MA) is a stock indicator that is commonly used in technical analysis. Technical Analysis is more important than Fundamental Analysis. Moving Average is one of the most popular techniques. moving averages that are used in timing a financial market. These averages are employed to detect the direction of the stock price trend and identify turning points in the trend in real time.

                  Moving Average smooth the price data to form a trend- following Indicator. They do not predict price direction, but rather define the current direction with a lag. Moving Average is primarily the summary of momentum & trend. Moving average reduces the noise in the price and also helps to follow trends.

Popular Time Period Of Moving Average:
1. 10 Period MA
2. 20 Period MA
3. 50 Period MA
4. 200 Period MA
Moving Average COMBINATION:

This is the main calculation

Sr.No. DAILY WEEKLY

1 10 SMA 2 SMA

2 50 SMA 10 SMA

3 100 SMA 20 SMA

4 200 SAM

MOVING AVERAGE SETUP FOR:

DAILY INCOME TRADING (DIT)
1. I put 10 EMA, 21/20 SMA & 50 SMA on the daily chart.
2. If 10 below 20/21 below 50 I consider that stock is trading in the down trend & I focus on short trades.
3. If 50 below 20/21 below 10 I consider that stock is trading in the up trend & I focus on long traders.
4. Apply your strategy & take your trade accordingly.
TYPES OF MOVING AVERAGE:

The most popular type of moving averages are Simple moving average & Exponential moving average. These moving average uses for identifying the trend of the market.

a. SIMPLE MOVING AVERAGE

                   SMA is the easiest moving average to construct. The Simple Moving Average (SMA) is calculated by adding the price of an instrument over a number of time periods and then dividing the sum by the number of time periods. The SMA is basically the average price of the given time period, with equal weighting given to the price of each period. Most moving averages are based on closing prices

CALCULATING SIMPLE MOVING AVERAGE

                              If you plotted a 5 period simple moving average on 1hour chart, you would add up the closing prices for the last 5 hours, then divide that number by 5.

Example:

A 5-day simple moving average is calculated by adding the closing prices for the last 5 days and dividing the total by 5. 10+ 11 + 12 + 13 + 14 = 60 (60 / 5) = 12

b. Exponential moving average

                          Exponential Moving Average can be specified in two ways- as a percent based EMA or as a period based EMA. A percent based EMA has a percentage as its single parameter. A period based EMA has parameters that represent the duration of the EMA.

CALCULATING EXPONENTIAL MOVING AVERAGE

EMA = K * (Current Price – Previous EMA) + Previous EMA

K: The weighting factor the EMA

K = 2/(n+1)

Where:

n = the selected time period
16 October, 2020
SUPPORT & RESISTANCE
INTRODUCTION:

In the share market, support & resistance these two concepts are highly discussed among the trades & investors. Trading by using support & resistance concepts is considered an old methodology. It has been popular for a long time.

                       Support & Resistance play a key level in trading. And obviously each & every traders and even investors are aware about this concept/levels. Support & Resistance are the zones where price will either halt & reverse or break through. These zones can also be called supply & demand zones, where buyers & sellers are active.

                             It is the most powerful concepts in Technical Analysis. Most of the technical analysis use support & resistance levels to identify price points on the chart where the possibilities of prices are reversal or pause of a prevailing trend.

                              The past price action indicates where these zones are. Mark them on the chart for future reference. An important concept to remember is that support & resistance zones marked from higher time frame charts are relatively more reliable. If you trade the 5 min chart, then go to 15 mins or hourly chart to mark these levels & import them on your 5 min chart & observe the reactions off these.

TWO TYPES OF SUPPORT & RESISTANCE
- HORIZONTAL SUPPORT & RESISTANCE
a. Horizontal Support



                          The first support is called Minor support. When market return touch this level and take support & go up side, then these second support is considered as a strong support. Third time price return comes to this level & return move up side.,then this level is called Major Support. The third support is most strong.

b. Horizontal Resistance



                                          We see the price going up & stop at a level or take a resistance & return goes down. This first resistance is called minor resistance.When Price goes up again & price goes around the first resistance & goes down again, so that is Second resistance which is called as strong resistance.When the price once again becomes the resistance to the same level, then you call that level a major resistance. It is not necessary that only 3 resistances are made. There is more supply compared than demand. When we look at the Horizontal Support & Resistance chart, we have to note that at least 7 to 8 candles between the levels are deferred.
- TRENDING SUPPORT & RESISTANCE
a.Trending Support

When the market starts moving towards the uptrend and when the market comes down it makes it’s first support and then it returns towards the up side.The second support is made higher than the first support. As we have got two supports so if we touch the lowest of first & second supports then it makes a Trendline. Then there are chances that third support touches the trendline & goes upside. It is a bullish continuation signal.

b. Trending Resistance

When the market starts moving towards downside then resistance is formed. When the second resistance is formed it is lower than the first resistance. We have to touch the highest point of the first & second resistance than draw the trendline. There is a possibility that the third resistance will touch the trendline & move towards the downside. It shows a bearish continuation signal.
- Importance for S&R Zones
a. Number of Touches

                                   The more times the price tests a support or resistance area, the more significant the level becomes. When prices keep bouncing off a support or resistance level, more buyers and sellers notice and will base trading decisions on these levels.

b. Preceding Price Move.

                                   Support and resistance zones are likely to be more significant when they are preceded by steep advances or declines. For example, a fast, steep advance or uptrend will be met with more competition and enthusiasm and may be halted by a more significant resistance level than a slow, steady advance. A slow advance may not attract as much attention.

c. Volume at Certain Price Levels

                                   The more buying and selling that has occurred at a particular price level, the stronger the support or resistance level is likely to be. When strong activity occurs under high volume and the price drops, a lot of selling will likely occur when price returns to that level, since people are far more comfortable closing out a trade at the break-even point rather than at a loss.

d.Time

Support and resistance zones become more significant if the levels have been tested regularly over an extended period of time.

Tools for Support & Resistance
- Top & Bottom (Historical High & Low)
- Elliot Wave
- Trend Lines
- Moving Averages
- Pivot Points
- Gann Square of 9
- Bollinger Band
- Fibonacci Retracement & Extensions
19 September, 2020

Sr.No.	DAILY	WEEKLY
1	10 SMA	2 SMA
2	50 SMA	10 SMA
3	100 SMA	20 SMA
4	200 SAM

Author: StockIsy

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