Top 15 All time Greats of Stock Market Investing

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There are thousands and thousands of wannabe investors in world and in India, Again there are thousands of active investors. Many newbies who want to make a career out of stock investing have role models from the same field. Almost every newbie has a hope that one day he want to make into the list of all time greats list of stock market investing. This is a very tedious task and requires sheer commitment, ample time input, persistence, a lot of patience and above all it needs lots of good analytical skills.

This list is not limited to stock market investors of India, but it includes all time great stock market investors from across the globe. As the basics of stock market investing is not different for different markets, therefore understanding investing techniques of any of them would surely be beneficial for various stock markets across the globe. SO do not worry if it does not have any of Indian Stock Market investor name in the list.

However major reason for backing out of the domain of Stock market investing is lack of patience among normal human being. All time greats of stock markets have most patience, which helped them to become multi-billionaire in their lifetime. Still many newbies choose any one of these greats as their role model and try to imitate their way of investing. So here is the list of All time greats of stock market investing and feel free to make one of them as your role model for this field. I have kept this list limited to top 15 investors. It's your take to select one of them and further continue your study about their way of investing. If a newbie understands Investing techniques used by these Investing Giants then it's sure that you can save a lot of money(which otherwise you would have spend for taking advice of a stock market analyst.

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Binary Options trading v/s Day Trading - explained

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Many of the newbies on financial world are not familiar with differences in various trading options available and consider them as a single entity of 'share trading'. This is broadly correct, however share trading itself consists of dozens of trading styles, explanation of each and every trading style is beyond scope of a single blog post.

Best way to learn basic about each of the trading style is by knowing it wrto another trading style. Since majority of the share trading techniques differ only at operational level, It is required that one should know operational level in a detailed manner.

In this post I would discuss about difference between two common share trading techniques-

Day Trading v/s Binary Options trading

Since Binary Options trading and Day trading deal with making or losing money in financial markets. All the similarities between Binary Options trading and Day trading thus ends in the previous sentence.

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Top 5 Android apps for share trading tips for Indian Markets

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As the market of Smartphone grows and more and more stock traders own a Android based smartphone. Hence I found it would be good to list down top rated android apps for Indian Stock markets and share market trading. Some of the apps are very authentic and genuine as they are backed/owned by strong Financial Institutions themselves. I have divided these apps based on the functionality and order of user based ratings they get on Google's playstore. Majority of the apps are free to use(with limited functionality), You can also purchase some of the apps though. I will not give app review here but post a link from the app review section of play store, This would help more to the newbies as they would get authentic/unbiased reviews of thousand of app users(rather then just my review alone)

Android apps for Mobile Share Trading and tips:

1. NSE Mobile trading app : NSE Mobile Trading system provides a revolutionary application suite featuring comprehensive trading and market monitoring platform. We offer real time streaming quotes, with simple and user friendly interface for all type of users. It provides the freedom to trade hassle free anywhere and at any time.
User Rating - 4.3, with 3289/5486 5 star ratings so nearly 60 percent of users give it 5 stars, which is actually quite good. On the flip side it has got rating of 2 star or less 525 times, which translates to < 10 percent of all ratings. So NSE's Mobile trading app is something which one must try.
For using this app - ** User ID and Password shall be provided by your NSE registered Trading Member. Kindly call 1800 22 0052 (Toll Free) for assistance **

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IntraDay-trading tips for novices and beginners

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People often want to board the day trading train in order to make quick money, but very few suceed in making big while doing day trading. Ease of starting day trading by simply sitting at your home is one of the factor for it's popularity. However lot of people leave it within a year saying that day trading is not their cup of tea. The participants in day trading are not limited to professional traders, retirees, executives, teachers, small business owners, housewives, etc. Remember, earning profits in day trading over a period of time is not a CHILD's PLAY!

One has to follow some rules for day trading, especially when you are a newbie in this field. These rules/guidelines are very basic and are not binding (as exceptions are always bound to be there), but these definetly helps in making informed decisions needed for making a good investment. Basically these are guidelines and not rules.

1) Knowledge:
'Knowledge' wrto Day trading includes information about the basic trading procedures and tools, information about stocks you plan to trade (like company financials, reports and charts), knowing the latest in the stock markets, keeping track of events that affect stocks, etc. Day trading can become more difficult and risky in the absence of knowledge. As a rookie, do your homework; make a list of stocks which are on your wish list, keep yourself informed about the selected companies and general markets, scan a business newspaper and visit reliable financial websites on a regular basis.

2) You need to be Realistic for returns:
Being realistic about profits is important. As you gear up to trade, make sure that you don’t lose out on decent gains in the greed for more! Markets are tricky and it’s better to settle down for a smaller profit than ending up losing heavily. If required, you can always buy the same stock when it dips. Every small profitable trade will help boost your confidence and also give you a chance to try out the strategy again.

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Why copying Institutional/Big investors is dangerous for Retail investors

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Many newbies of stock market often find that the easiest way of entering the domain of stock market investing is by copying the investing techniques/portfolios of seasoned investors or institutional investors, but remember
COPYCAT STOCK MARKET INVESTMENT IS VERY DANGEROUS FOR INDIVIDUAL INVESTORS!!

There are many reasons for the questions: Why is copycat stock investing dangerous?. I am covering some of the aspects regarding the same in this post. READ CAREFULLY

1. Holding diversification becomes too difficult to achieve: Institutional Investors or Big investors hold different stocks from almost every domain in their portfolio, they have lot of money for ensuring that their risk is mitigated by a diversified portfolio. Such a diverse portfolio is too hard to match for a retail investor because of money crunch, hence they are not able to diversify and hence face a greater risk of a loss from their investment portfolio. The main reason of big investors making profits from their investments over time is 'Diversified stock portfolio'

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Investing in ETF's and calculation of Net Asset Value (NAV)

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Exchange Traded funds, popularly known as ETF's are some-what similar to Mutual funds. Exchange Traded Funds or ETF's is basically a security that tracks an index, a commodity or a basket of assets like an index fund, but trades like a stock on an exchange. ETF's experience price changes throughout the day as they are bought and sold and the NAV for ETF is dependent on movement of a stock index over a period of time.

Benefits of putting your money in Exchange Traded funds is that it helps in getting a broad exposure to stock, bonds and comodities, which are traded daily on various stock exchanges. ETF's are similar to Mutual Funds as both's performance is based on value of Net Asset Value or 'NAV'. Since ETF's are actively traded they are thus similar to stock trading.

Net Asset value of ETF is generally calculated at end of the trading day of Exchange. Following is method for calculating the investment return percentage for ETF. Since Exchange Traded funds trades through out the day, hence for getting accurate numbers use the iNAV(Intraday Net Asset Value), There would be very less difference between NAV and iNAV though.

Calculating ROI in Exchange Traded Funds:

Purchase price of 1 NAV -> INR 50
Number of shares purchased -> 75
Total Money invested in ETF's -> (Price of 1 NAV)*(Total number of Assets purchased) = 50*75 -> INR 3750

Price of single NAV after 3 months -> INR 60
Total value of investment after 3 months waiting period -> 60*75 -> INR 4500

Net Appreciation = 4500 -3750 = INR 750 or 20 percent return.

Indian stock markets decline on profit booking

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[11/6/2014] Indian stock indices declined today as investors booked profits, thus ending a 4 day winning streak. 30 component benchmark SENSEX declined by 110 points today and ended the day at 24,473.89 points. NSE's NIFTY 50 declined by 29.55 points to close at 7626.85 points. Investors booked profits from power, metal and consumer durable stocks, which led the list of losers. BSE's Realty index declined by 4.21 percent today.

Indian stock markets closes flat | Realty index declines 3 perc

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[10/6/14] Benchmark Indian stock indices including SENSEX and NSE's NIFTY 50 both ended the day almost flat. IT and Pharma sector led the gainers list. 30 component SENSEX closed up by just 3.48-point at 25,583.69. 14 out of 30 components of SENSEX closed higher while 16 of them declined today.

National Stock Exchange's NIFTY 50 closed up by 1.80 points at 7,656.40 . Indian stock indices are highly overpriced at the moment and correction might be around the corner, probably union budget would be trigering point for correction. Sector-wise consumer durables index gained the most by rising 3.55 percent, followed by IT by 2.32 percent and healthcare index by 1.97 percent. On other hand Realty index suffered the most by closing 2.96 percent down, PSU index closed lower by 1.28 percent and oil and gas index declined by 0.96 percent.

SENSEX | NIFTY closes at record high as speculations about Union Budget rise

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[9/6/14] As the days for preesentation of Union Finance budget approaches near and industry awaits maiden budget by finance minister Arun jaitely, speculations in Indian stock markets are already on rise. President Pranab Mukherjee's address to new parliament raised some hope about a budget targeting lower fiscal deficit, thus there might be some cuts in subsidies.

Benchmark Indian stock indices including Bombay Stock Exchange's 30 component SENSEX and National Stock Exchange's NIFTY 50 ended the day at all-time high closing rate. Most followed SENSEX closed today at 25,549.97, up 153.51 points, Index touched an all-time intraday high of 25,644.77 today. While NSE's NIFTY 50 closed at 7,645.80, up 62.40 points, touching an all-time intraday high of 7,673.70 today. Only loser was the oil and gas index which declined by 0.42 percent today. Market breadth was positive on the NSE with 1126 gainers against 434 losers.

As the speculations about Union finance budget keeps on rising, Indian indices might keep moving upwards till the budget is presented, There would be probably correction after budget is presented.

5 steps for building your Stock Portfolio

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Many stock investors often dream about having an ideal stock portfolio where none of the stock is a laggard. This is however a 'never-to-be-true' scenario as one cannot correctly analyse how the stock would perform over a year from purchasing it. In this post I would guide readers who are new to stock markets/investing, how to build their stock portfolio. Choosing a correct stock is most important of all the requirements for a successful portfolio. This involves sheer analysis acumen of the person. Analysis involved includes tracking the stock performance of the past couple of years, smartness of the management of the company.

Is it too early to directly start the detailed analysis...PAUSE...lets start with the introduction about STOCK PORTFOLIO!

IF I compare a person's stock portfolio to a house then I can find various similarities in two of them. Actually building a stock portfolio is like building your house where different stocks represent different rooms and If one of the room is filthy then a person hates it and doesnot want to enter the room again. All the rooms should be rightly furnished/lightened so that the overall experience feels pleasing and comfortable.

Step-by-step guide for Stock portfolio: 1. Create a blueprint: A person should make a blueprint which clearly states following bullet points: a) Reason for stock portfolio, what a person wants in his portfolio b) What is the goal of the investment. c) How long a person can invest/hold d) How much should a person put into cash, bonds, and various types of stocks. 2. Know your portfolio and make periodic calculations for the market value of all your investments, keep yourself updated with present trends in these investments in order to find perfect time for exiting one or many . 3. Make sure your stock portfolio is strictly in accordance to the blueprint you made, If it is not so then your house is not being made according to the plan, which would haunt you later in case of emergency. a) Remove any of the redundant investments you have made, If you have 3 large-cap bond investments then try to exit two of them as all would give similar returns/risks and because similarly you never want your house to have 3-4 store rooms. 4. Balancing the stock investments is the key : Generally stocks give higher returns then bonds, hence there is high possibility that your investments would include higher percentage of stocks as the time passes, thus increasing your risk percentage. Hence do a periodic check that your investments as exactly in accordance to the initial blueprint. If you want to invest more in stocks over time then invest the profit money which you received till now from your investments, This would mitigate risk and your principle amount would be much safer. 5. Analyze your Investments periodically: There is a high possibility that the mutual funds part of your investment doesnot have the same rating which you decided in your blueprint, hence you need to sell them and purchase the ones which fit in accordance to the blueprint. You should sell stocks only when it has reaced the target sell price you made during the blueprint creation. These 5 steps are very basics which should be followed by everyone who wants to make his/her stock portfolio. Still there can be more additions to above steps which I might have missed, so using your own brain is foremost important thing needed for making stock portfolio. Note - These steps doesnot gurantee positive returns always, read the disclaimer at the bottom of the blog.