Many are saying intraday traders are only making a loss it is true?
👉🏻No one is perfect in this world, where you need to learn from your own mistakes and should be controlled while you are trading in stock market.
👉🏻If you are new or only have very little knowledge about the stock market, then, first of all, you need to understand the concept Why you are trading? How will you make money from the market? What detail should you know before starts trading?
👉🏻The most crucial point is STOPLOSS. It will control your emotions while you are doing trading.
👉🏻Traders are not keeping the SL for the trade , and as a result, they are getting the loss from the market, and after that, they are saying the market is not suitable for the traders.
👉🏻If you follow strict SL for the trade and making consistent and small trades, you will always make the profit.
👉🏻You only required the right advice, and you will see the results and essential things about the stock trading you need to know, like how to buy and sell because anyone's direction, if you traded either, you will get profit or loss only.
👉🏻Make a thumb rule that when you are on the trading terminal, you should prepare yourself that loss is going to happen, and I am ready for that one.
👉🏻No advisory in the market will give 100% accurate calls, or it is not possible for any individual to that one. If you digest this theory, then you will become a master in INTRADAY.
For trading in the stock market, you required the right advisor who will guide you on how to trade with SL and make your money grow slowly and steadily. If you think you can give advice with a little knowledge and judge the stock with your prediction, then you are making a big mistake.
If you follow the proper advice and do consistent trading with the small risk, you can easily make the daily profit from INTRADAY trading.
For more details contact us » @gttrade2
Credit rating agencies available in INDIA and the role of their respective benefits and demerits
Credit rating agencies assign ratings to an organization or an entity.
Factors are considering while giving the rating:
➡️ past debts
➡️ ability to repay the debt
➡️ lending and borrowing history
➡️ level and type of debt
➡️ financial statements
Credit ratings are published by agencies like Moody’s Investors Service and Standard and Poor’s (S&P) based on detailed analysis. SEBI regulates all the credit rating agencies in India.
ONICRA - Onida Individual Credit Rating Agency of India. It was establishment in 1993.
ICRA - Investment Information and Credit Rating Agency of India Limited, which was set up in 1991 in Gurugram.
SMERA - Small and Medium Enterprises Rating Agency of India which was established in 2005
Ind-Ra - India Rating and Research Pvt. Ltd owned by fitch group who is having headquartered in Mumbai
CRISIL - Credit Rating Information Services of India Limited, which is It was launched in the country in 1987.
CARE - Credit Analysis and Research Limited, which was launched in 1993.
BWR - Brickwork Ratings was established in 2007 and is promoted by Canara Bank.
👉Basic of Risk and Riward
👉Less Cost Information
👉Discipline on corporate borrowers
👉Financial and other Representations Acquire Greater Credibility
👉Helps in Investment Decisions
👉Rating Review Benifits
👉Promise of Security
👉Easy Understanding of Investment Proposal
👉Saves Time and Efforts
👉Helps to Improve Corporate Image
👉Lower cost Borrowings
👉Wider audience for Borrowings
👉Perform as maketing tool
👉Motivates for Growth and Expansion
👉Probability of Biases & Misrepresentations
👉Non-disclosure of Certain Information
👉Issues with New Companies
👉Difference in Rating
If agencies are giving the proper report, then it will help the traders for the trading, but the info will be 100% correct.
What is IN, AT and Out of the Money?
A Buy call is said to be in the money when its exercise price is below the current price of the underlying asset. Sell call are in the money when the exercise price is above the market price of the underlying asset.
At the money if the current stock price is equal to the strike price. It doesn't matter if we are talking about buy calls or sell calls. Any buy call or sell call whose underlying stock price equals the strike price is said to be at the money. Sometimes you will see At The Money abbreviated as ATM.
Out of the money (OTM) is a term used to describe an script that only contains intrinsic value.
What is smart Trading?
»Waiting for the right opportunity
»Trade on right time
»Gather the capital and trade small
»Booked small profit and increase the capital slowly and steadily
»Take the risk only on profit.
»Never risk money more than 20%
»Never trade like a rookie
»Trade as per the right direction.
»Learn loss management
»Never trade impatiently
»Learn the mature trading
»Balancing the loss and profit margin very well
Profit is only considered when you withdrawal in the bank till the time it is called trading capital. The trader who learns this thing very well will be the master in all day and holding trading.
Mostly balancing the trading is depending on the 3 models, which we have explained in the image.
🔘Factors that are affecting the profit for the traders:
less capital, don't have an idea about the trading, a newbie in trading, randomly entering in stocks, invested for a long term without trading knowledge, impatient while trading in the stock market.
1. Trade setup:
🔘Many are thinking about the swing trading and doing buy and sell for the calls and making the consistent loss in the stock market and leaving the comment भाई मार्किट तो ख़राब है और बस लोस्स ही होता है!! मेरी मान तू दूर रहे इस दलदल से!!
🔘The reason behind such a statement because they have not followed the proper risk and reward in the stock market and deliberately hold the loss calls, and in that case, capital has gone to ZERO.
🔘Most of the traders are trying to do the swing trading and sometimes got the success, but at the end of the day, they are in loss due to so much expectation of the profit, so they never booked small profit.
2. Market Movement:
🔘Traders are trading with news-based calls either as per the movement of the Nifty BUY/SELL movement and losing the capital daily.
🔘INTRADAY trading most of the traders trying their luck because of the less capital and expected the profit from 10000 or 20000 rupees in a day or more, and for that, they choose the way of options trading and result as you know capital is going to become ZERO.
🔘Never trade only one direction or keep the 2 to 3 trades open so that you can manage the profit and loss and keep the SL always for the trades to save your capital.
🔘As per the mentality of the traders, they think If I keep the SL for the trade, it will hit, and then actual profit starts if it is happened by chance 2 or 3 times they will never trade with SL and keep losing the capital.
🔘It is an important aspect, and 99% of traders are trading with some responsibility and as per that one loosing it. If you want to become a successful trader, then it should be neutral on a trading terminal, which is the right way of trading.
🔘If you want to save your capital, then take proper advice and for that follow their free calls for a week and check they have mentioned the SL for the trade or not?? How many SL hits? What are the levels for the trade with a summary for a day? And want to trade then test the trade with 100 to 500 quantities with small risk.
🔘Never trade on free calls those you are getting through telegram, WhatsApp, or any other social platform because you don't know the entry for the trade or better does the paper trading to understand the strategy.
🔘If you want to test the calls, then trade with small quantities either 100 or 500 and understand the strategy by trading on 1 or 2 days. Do not make as a habit; otherwise, you will make a significant loss one day.
Profit margin is very less, and for that, you need to take small steps and keep booked the profit on time and increase your capital through profit only.
What are pre-market calls?
Pre-market » It is the trading calls provided to the traders in the future segment before the market open. 9:08 am pre-market opening will close for the cash trade.
➡️Future segments can not be traded in a pre-market segment as per the volatility.
➡️Pre-market calls are based on the assumption that levels are going to trigger once the market is open.
➡️Levels are designed, which is a tough task because no one knows that it is open with the same price or not??
➡️Pre-market calls are delivered profit in quick time and content highest accuracy in 15 to an hour.
➡️Those deliver Pre-market calls that have in-depth knowledge of the stock market and ability to find the right call for the trade, which is going to perform in 6 hours of day trading.
➡️Pre-market calls are only given in the INTRADAY segment, and as per the volume traded in the future, it is the essential strategy for the traders to make the profit in the first half.
➡️Trade only in some time after the market opens and for that need to select the right stock on time for the trade.
Pre-market calls always give you higher returns, but for that required dedication, proper call, and SL too, if it goes against, you will lose total capital. Take the appropriate advice to take the calls on time for the trade.
What are AGR charges?? Idea-Vodafone will shut down it is possible?
Adjusted Groos Revenue(AGR): Telecom operators are required to pay a license fee and spectrum charges in the form of ‘revenue share’ to the Centre. The revenue amount used to calculate this revenue share is termed as the AGR.
☑️Telecom companies are under pressure and reported the losses on quarter ended in September. Moreover, as per the judgment from the Supreme court, they need to pay 1.3 lakh core charges, included interest and penalties too.
☑️As per the National Telecom Policy, 1994 licenses were issued to companies in return for a fixed license fee. In 1999 the government gave an option to the licensees to migrate to the revenue sharing fee model.
☑️Under this, mobile telephone operators were required to share a percentage of their AGR with the government as annual license fee (LF) and spectrum usage charges (SUC).
☑️License agreements between the Department of Telecommunications (DoT) and the telecom companies define the gross revenues of the latter. AGR is then computed after allowing for certain deductions spelt out in these license agreements. The LF and SUC were set at 8 percent and between 3-5% of AGR, respectively, based on the agreement.
☑️The slugfest between DoT and the telecom companies has been on since 2005 when the Cellular Operators Association of India — the lobby group for players such as Airtel and Vodafone-Idea — challenged the DoT’s definition for AGR calculation.
The main issue is the argument of the AGR charges calculation:
☑️The Department of Telecommunications argued that AGR includes all revenues (before discounts) from both telecom and non-telecom services.
☑️The companies claimed that AGR should comprise just the revenue accrued from core services and dividend, income, or profit on the sale of any investment or fixed assets.
☑️Now the main factor affected directly to the Idea-Vodaphone because still, the merger of an idea is going on. For that, Vodafone paid massive amounts to the Idea Cellular to take over the Indian market.
☑️After entering the Jio's with low-cost voice calling plans along with the data pack Vodafone is reduced, the charges and debt is increased tremendously, and now the decision comes on Oct24 that all the telecom sectors need to pay dues in 3 months.
☑️Now the date is coming near and Vodaphone expecting that the government should waive the charges of AGR; otherwise, it will back out from the INDIAN market. Share precise currently raging in between 6.5 to 7 and preciously traded 2.5 near too in a future segment.
☑️For paying the AGR charges, all the telecoms sectors increased the tariff, including Vodafone and Jio too.
Do not take the position in less than 10 rupees stock for the longest time if you want to trade in the INTRADAY segment only.
50 COMPANIES ARE THE PART OF THE NIFTY SEGMENT
The NIFTY 50 index is the National Stock Exchange of India’s benchmark stock market index for the Indian equity market. Nifty is owned and managed by India Index Services and Products (IISL).
➡️The base year is taken as 1995, and the base value is set to 1000.
➡️Nifty is calculated on 50 stocks actively traded in the NSE
➡️Fifty top stocks are selected from 24 sectors.
➡️Top 10 companies are mostly from the banking and IT sector. Those are included in the top list.
➡️As per the daily trading and volume available for the trade, according to that list is going to shuffle.
➡️Right now YESBANK is on the bottom side as per the last board meeting there is no clear indication for the $1.2 billion investment from Canada, and they will make a decision at the next meeting.
➡️As per the current GDP, scenario, and global market position stocks are under pressure, and soon, it will pick up speed. As per the AGR charges telecom industry is in tremendous stress, and continuously stocks are down like today Airtel stock down 3%.
➡️This month's opening from 480 Airtel is continuously fallen and hit the 429 today in the Future segment.
For more details contact us for trading » @gttrade
What is a Strike Price?
Strike Price/Exercise price: it is used for the options segment of the derivatives market. Strike price at which a specific derivative contract can be exercised.
The strike price is the specified price at which an option contract can be exercised.
For call option Strike Price(SP) is the price at which underlying security can be bought & for a put option, SP is the price at which underlying securities can be sold.
The difference between the strike price and market price on exercising an option shows profit per share for the option holder.
In a Call option, if the strike price is less than the market price on the day of expiry, the ‘call option buyer’ will exercise the same, and the price difference will be his profit
In a Put option, if the strike price is more than the market price on the day of expiry, the ‘put option buyer’ will exercise the same, and the price difference will be his profit
If the holder of an option does not exercise the option, he has to pay ‘option premium’ to the other party, and not the strike price.
For example, ABC is looking to buy a call option for a stock that is currently trading at 100 and is available at a strike price of 95. It implies that the seller is bearish about the stock and thinks that its value will go down soon.
On the other hand, you are bullish towards this stock, and as per your analysis, the stock price will jump to 120 very soon.
If the market price becomes 115, then the buyer will be at a profit, buying the stock at a 95 strike price.
If the market price becomes 92, then the seller will be at a profit, taking home the premium amount the buyer paid to get into the contract.
WHY ARE COMPANIES ENTERING IN SHARE MARKET?
➡️Share market is a way where a company can quickly raise funds without interest and make the plan for future investment. It will give a boost to the companies and, at the same time, to the people if the stock rise, they will get the benefits from the share.
➡️Going public and offering stock in an initial public offering represents a milestone for most privately-owned companies. A large number of reasons exist for a company to decide to go public, such as obtaining financing outside of the banking system or reducing debt.
➡️The main reason companies decide to go public, however, is to raise money - a lot of money - and spread the risk of ownership among a large group of shareholders. Spreading the risk of ownership is especially important when a company grows, with the original shareholders wanting to cash in some of their profits while still retaining a percentage of the company.
➡️One of the most significant advantages for a company to have its shares publicly traded is having their stock listed on a stock exchange.
➡️Fundraising is an essential aspect for the companies to grow and sustain in the market were to pay a debt, new invention, planning, strategies, investment for all these things required capital through the share market it is very easy for the companies.
Advantages for a Company Having Listed Stock
In addition to the prestige a company gets when their stock is listed on a stock exchange, other benefits for the company include:
🔘Being able to raise additional funds through the issuance of more stock.
🔘Companies can offer securities in the acquisition of other companies.
🔘Stock and stock options programs can be provided to potential employees, making the company attractive to top talent
🔘Companies have additional leverage when obtaining loans from financial institutions.
Market exposure - having a company's stock listed on an exchange could attract the attention of mutual and hedge funds, market makers and institutional traders.
Indirect advertising - the filing and registration fee for most significant exchanges includes a form of complimentary advertising. The company's stock will be associated with the exchange their stock is traded on
Brand equity - having a listing on a stock exchange also affords the company increased credibility with the public, having the company indirectly endorsed through having their stock traded on the exchange.
Other Considerations for a Company Going Public
Offering shares to the public has other advantages for companies, besides the prestige of having their stock publicly traded on a stock exchange. Before the Internet boom, most publicly traded companies had to have proven track records and have a history of profitability.
Unfortunately, many Internet startups began having IPOs without any semblance of earnings and without any plans on being profitable. These startups were funded with venture capital. They would often end up spending all the money raised through the IPO, making the original owners rich in the process and leaving the small investors holding the bag when the shares became worthless.
Some companies choose to remain private, avoiding the increased scrutiny and other disadvantages having publicly traded stock entails. Some huge companies, such as Domino's Pizza and IKEA remain privately held.
If companies listed in the stock market, then the brand value is always high, and as per the valuation fund can be easily av beailable for the respective company.