Practical Ways of Doing Day Trading

Analyze, Wait, Watch and then Trade

This sentence looks time consuming like analyze, wait, watch and then trade when to do all this and they to get profit?
Answer is - For newcomers it may take an hour and for experienced trades it may takes seconds or minutes.

- First analyze the market and then particular share - It is very important to know how the entire market is going to be today before start trading.
- Check out whether the market is going to be Bullish, Bearish or going to trade in very narrow range.
- Check out how American markets have closed at yesterday night, how Asian markets are trading in the morning (they open before Indian markets)

Once you get the knowledge how the market is going to move (it is totally acceptable that it is not possible to judge it 100% accurate but you should have at least 50 to 70% knowledge) then act accordingly.

Always trade in the market direction.
In bullish trend - buy and then sell bullish shares
In bearish trend - Short sell and then buy bearish shares
In very narrow range trading - Wait for right opportunity and then enter into trade. “Every day is not trading day”.

It is important to know the status of American markets because mostly it has been observed that based on American markets Asian markets open in the morning at 8.30 am and finally Indian markets open at 9:00 am.

Mostly (80 to 90%) it has been observed that Indian markets follow global markets.
American indices are NASDAQ and DOW.
Important Asian markets are Nikkei, HangSeng, Taiwan etc

At afternoon 1.30 pm European markets open and mostly it has been observed that our Indian markets reacts to European markets.

For example - If European markets open in negative then there are chances that our Indian market may also move some downside (if already Red then further downtrend will continue and if in Green then may some pressure on upper side)
If European markets open in Green then it is expected that Indian markets will recover (if in Red) and if already in green then continue their upward journey.

Getting Started in Share Market Trading. Things you should know

It is very interesting to invest in shares, though most of the people would like to start with small money.

First of all, you need to know a little bit in detail about the stock market, then about the shares and the mode of their trading. What are the risks involved and how to be smart in dealing with shares?

Stock Market – It is the place where the shares of listed companies are bought and sold. In India, you have BSE and NSE as two big stock exchanges.

Shares are bought and sold by you and me only through approved brokers.

Approved brokers are mostly banks like the ICICI, HDFC, IDBI, UTI Bank, SHCI, are to name a few.

Mutual Funds VS Stock Market

There are many people who have got the misconception that mutual fund and stock market are the same. So there is a big confusion between the two. So, we will discuss mutual fund vs stock market. But before discussing the two terms, you should know that the risk involved in the Indian stock market is much higher than the risk that is involved in the mutual fund.

What are mutual funds?
Mutual funds are not guaranteed by any government agency. The investor invests in the mutual fund and the money is then invested in stocks, securities, bonds…etc. There are people who invest in the mutual fund rather than stock market as they think that mutual funds are less risky. There are many mutual funds that are available which can give you good returns in a short span of time. So it is you who need to choose which mutual funds you wish to go for.

How does RBI's credit policy impact you?

A few days ago, the Reserve Bank of India (RBI) announced the credit policy.

The RBI uses the credit policy to signal what it wants banks to do.

In the recent policy, repo rate — the rate at which RBI lends overnight to banks — was raised 0.25% or by 25 basis points to 5.75% p.a., and the reverse repo rate — the rate at which RBI absorbs the surplus overnight funds from banks — was hiked by 50 basis points to 4.50% p.a.

Overnight funds with banks
So, as you freely deposit and withdraw money on a daily basis, your bank needs to ensure that it earns money on your deposits , especially as they now pay you interest too on a daily basis.

If no other bank wants to borrow money in the inter-bank call money market, your bank will invest these funds with the RBI and earn 4.5% p.a. Obviously they will lend to another bank at a higher rate than that as, for the other bank, that would be cheaper than borrowing from the RBI at 5.75% p.a. (repo rate).

GOLDEN RULES FOR TRADING

Divide your Risk Capital in 10 Equal Parts.

As part of the Successful money management, it is always advised to divide your Risk Capital (which you can afford to lose) into 10 equal Parts and at any given time none of your Single Trade should have more than 3 parts of your capital in it even if you are in a winning position. At the same time always keep some spare money for any Buying Opportunity, which may come any time.

Trade ONLY in active & high Volume Stocks/ Futures.

Many Traders get stuck with stocks for want of liquidity. Always rely upon Stocks which have reasonably high volume over a period of time. High Volume are always advised for easy Entry, Exit and Stop Loss. In low volume stocks the spread is too high and chance of Stop Loss limit getting failed is too high as there would be no Buyer or seller at your Stop Loss Level.

Day Trading Precautions

1. If you are new comer to share market
2. When you have a strong mind set (especially new comers to share market)
that you want to earn big amount of money very fast in single day.
3. Not confident and not sure
4. Not able to judge market
5. No good mind frame
6. When market opens and closes (especially few are new comers).
7. When shares and markets are trading in very narrow range.
8. Impatience, Greed and Fear

If you are new comer to share market
New comers to share market should avoid day trading. They should study entire market like important terms, global markets, share movements and should acquire lots of information and then start doing paper trading practice before actual starting the day trading.

If you have mindset that you want to earn fast money and in that also in single day
We have heard that most of the people come to share market or to day trading to earn fast money and in single day.

Dabba Trading

We often read about dabba trading, not being permitted by the regulators. Many do not know the mechanics, and also the risk associated with it, till now. Dabba means box and a dabba operator, in stock market terminology is the one who indulges in dabba trading. His office is like any other broker’s office having terminals linked to the stock exchange showing market rates of stocks. However, the difference is that the investor’s trades do not get executed on the stock exchange system but in the dabba operator’s books only. A dabba operator acts as a principal to all the trades and not as an agent of the client. He is a counter party to the trades, whereas, he should be the Clearing Corporation who guarantees trades on the BOLT/NEAT system. This kind of operation, where trade is kept within the books of the operator is called “dabba” in the popular market terms.

A Dabba operator flouts rules and regulations relating to Client Protection, which includes registrations, margins, transaction, execution and settlements. Not only he evades the Income tax regulations, which prohibit dealings in cash, but also service tax rules and many other mandatory requirements.

Concept of debentures

The important features of the debentures are:

A debenture has a face value which is the amount paid per debenture. This face value may be divided into different parts say Part A, Part B, recto understand the concept we take an example of a debenture of face value of Rs.200 with Part A of Rs.20, Part B of Rs.90, and Part C of Rs.90.

These different parts of a debenture have different terms with respect to conversion of redemption.

Commodities Trading FAQ

Where do I need to go to trade in commodity futures?

You have three options - the National Commodity and Derivative Exchange, the Multi Commodity Exchange of India Ltd and the National Multi Commodity Exchange of India Ltd. All three have electronic trading and settlement systems and a national presence.

What is the minimum investment needed?

You can have an amount as low as Rs 5,000. All you need is money for margins payable upfront to exchanges through brokers. The margins range from 5-10 per cent of the value of the commodity contract. While you can start off trading at Rs 5,000 with ISJ Commtrade other brokers have different packages for clients.

Building up Wealth With the Stock Market

Investing in the stock market can be an unbelievable way to develop wealth. Even so, there are many folks out there who refrain from investing in the stock market because they believe it’s too dangerous. And you know what? To a certain extent, they're right. The stock market can be one of the most effective ways to build riches, but only if it is done right. You should be smart and strategic in the way you pick out your stocks. You likewise need to take the time to study the most favourable ways of investing your cash. Here are a few tips to help you along:

Affordability. This is in all likelihood among the most significant tips for an individual who's looking to invest in the stock market to develop money. You should only invest cash that you can afford to invest. If you're going to have difficulty paying off your mortgage or your car loan, then do not invest in the stock market. That is not wealth creation. You should always be comfy about the amount you've invested.

Building Superb Trading Habits

=The world of financial trading can be an unpredictable one. Even the finest and most knowledgeable traders in the market have a awful trading session every so often. The reality that traders are human means that mistakes will happen. Nonetheless, there's always room for improvement and constructing first-rate trading habits could go a long way to increase trading profits. Here are a few basic principles that mold the building blocks of sound trading habits:

=Stick with your techniques. Proficient traders have a pre-defined trading plan and many very specific trading principles. As the market turns on you, do not scrap your trading plan. That will only help to keep you away from the action. The sole formula to make money is if you continue trading and using the methods that have consistently worked for you.

Bombay stock exchange

Market is a place where exchange of Goods and Services takes place between Buyer and Seller, similarly stock exchange or Indian stock market is a market where stock transaction (goods or services) are exchange between two individual. Bombay stock exchange is one of the part of stock exchange market, it is established in the year 1875 and become the first stock exchange in the country to be recognized by government. It is the oldest stock exchange not only in the country but also in Asia’s.

Its role is significant in the development of the capital market. In the past it was known as association of person(AOP),but now it is demutualized and corporatised entity incorporated under the provision of the companies act 1956,pursuant to the BSE(corporatisation and demutualization)scheme,2005 notified by securities and exchange board of India (SEBI).

BSE DEALS WITH:

Around 3,500 Indian companies listed with the stock exchange, and has a significant trading volume

Exchange has a nation-wide reach with a presence in 417 cities and towns of India.

BSE have an exclusive facility for financial training

Beginner Investing

The Stock Market
The stock market is an organized system of buying and selling stocks and shares, and a place in which these transactions take place is called the stock market. The stock market deals with stocks of listed companies. In short, the stock market aims at the overall stocks sold and bought at stock markets. Before investing in the stock market, you need to know how it works.

How Stock Market Works?
Every investor is allowed in the stock market to make transactions with stocks, shares or bonds. In the stock market, small investor or a beginner investor to big traders everybody trades with each other. The price of a stock depends on the demand and supply of that particular stock. In stock markets, a middleman does the share dealing. This person is known as a share broker. The seller and the buyer mutually decide the price of the trade.

ABC of Technical Analysis

Advance/decline line

Each day's declining issues are subtracted from that day's advancing issues. The difference is added to (subtracted from if negative) a running sum. Failure of this line to confirm a new high is a sign of weakness. Failure of this line to confirm a new low is a sign of strength.

Area pattern

When a stock's or commodity's upward or downward trend has stalled, the sideways movement in price which follows forms a pattern. Some of these patterns may have predictive value. Examples of these patterns are head and shoulders, triangles, pennants, flags, wedges and broadening formations.

A Bailout

What Is A Bailout?
Fundamentally, the term bailout refers to the practice of injecting liquidity to a business when it is bankrupt or close to the point of bankruptcy. There are multiple ways in which this could be done. The money could be given as a loan to the company which it needs to repay on reaching solvency.

Alternatively, the bank buys the distressed assets of the company and gives it cash in return. It could also be done via the trading of stocks and bonds. It can be undertaken either by a group of investors or in certain cases by the government. A group of investors may pump in the money and get a stake in the company. However, intervention from the government generally happens in a case when it is expected that the downfall of the company could have larger repercussions on the economy.

8 Ways to Reduce Stock Market Stress

=Do not watch Bloomberg, CNN, CNBC, or any stock news channel for a lengthy time. All the news will disrupt your rhythm. Remember that the stock market is all about demand and supply, simply put. You do not need to listen to all those reporters, who themselves, I bet, are not even investors or traders. Being informed is good but being too paranoid with news data is not needed.

=Do listen only to yourself. There will be a lot of rumors in the grapevine regarding inside information on certain stocks. Take these with a grain of salt. In fact, treat these as humor only. You are the only one who controls your investments so you should do your own homework. You will be responsible for all the sound decisions you make so you have prepare yourself very well and not follow rumors floating.

Day Trading Techniques

Day trading is a risky job if you enter into market and place order without any research. One can make or loose money in a day.

A Day trader should be absolutely clear about the amount of work, discipline, his risk appetite research, knowledge and sheer luck that is required to be Successful.

Day Trading Techniques for Individuals ( Must Follow )

I will Trade small.

I will not Trade without stoploss.

I will win and walk out.

Techniques

1. Trend following

Trend following, a strategy used in all trading time frames, assumes that stocks which have been rising steadily will continue to rise, and vice versa. The trend follower buys a stock which has been rising, or short-sells a falling stock, in the expectation that the trend will continue.

12 Basic Stock Investing Rules Every Successful Investor Should Follow

There are many important things you need to know to trade and invest successfully in the stock market or any other market. 12 of the most important things that I can share with you based on many years of trading experience are enumerated below.

1. Buy low-sell high. As simple as this concept appears to be, the vast majority of investors do the exact opposite. Your ability to consistently buy low and sell high, will determine the success, or failure, of your investments. Your rate of return is determined 100% by when you enter the stock market.

2. The stock market is always right and price is the only reality in trading. If you want to make money in any market, you need to mirror what the market is doing. If the market is going down and you are long, the market is right and you are wrong. If the stock market is going up and you are short, the market is right and you are wrong.

P.M.S: Portfolio Management Services

What is Portfolio Management?

Managing investments in equities requires time, knowledge, experience and constant monitoring of stock markets. Those who need an expert to help manage their investments, portfolio management services (PMS) comes as an answer.

The business of portfolio management has never been an easy one. Juggling the limited choices at hand with the twin requirements of adequate safety and sizable returns is a task fraught with complexities.

given the unpredictable nature of the share market, it requires solid experience and strong research to make the right decision. In the end it boils down to making the right move in the right direction at the right time. That's where the expert comes in.

Equity/Stock

Equity/Stock Advisory

Offers share trading services to all its clients and sub-brokers on the National Stock Exchange (Cash Market and Futures and Options Market) and also on the Bombay Stock Exchange (Cash Market).

Learn the Stock Market

In order to know what stock is and the basic meaning of stock market first we have to dive into the history of stock market specifically , the history of what has come to be known as the corporation. Corporations in one form or another have been around ever since one guy convinced a few others to pool their resources for mutual benefit. In order for a corporation to do business, it needs to get some money from somewhere. A stock is a piece of ownership of a company. When a Company needs some money, which is helpful in growing business, they acquire extra money by selling ownership in small percentages in form of stocks. The word stock trading is commonly used to describe both the physical location for buying and selling (trading) stocks as well as the overall activity of the market.

Small Saving Scheme

Small savings schemes are designed to provide safe and attractive investment options to the public and at the same time to mobilize resources for development.

Post Office Monthly Income Scheme (MIS)
Interest rate of 8.4% per annum payable monthly w.e.f. 01-04-2013 Maturity period is 5 years.
No Bonus on Maturity w.e.f. 01.12.2011.
No tax deduction at source (TDS).
No tax rebate is applicable.
Minimum investment amount is Rs.1500/- or in multiple thereafter.
Maximum amount is Rs. 4.50 lakhs in a single account and Rs.9 lakhs in a joint account.
Auto credit facility of monthly interest to saving account if accounts are at the same post office.
Account can be opened by an individual, two/three adults jointly, and a minor through a guardian.
Non-Resident Indian / HUF cannot open an Account.
Minors have a separate limit of investment of Rs. 3 lakhs and the same is not clubbed with the limit of guardian.
Facility of premature closure of account after 1 year but on or before 3 years @ 2.00% discount.
Deduction of 1% if account is closed prematurely at any time after three years.
Suitable scheme for retired employees/ senior citizens and for those who need regular monthly income.

Fixed Income Products

Fixed Income

A type of investing or budgeting style for which real return rates or periodic income is received at regular intervals at reasonably predictable levels. Fixed-income budgeters and investors are often one and the same - typically retired individuals who rely on their investments to provide a regular, stable income stream. This demographic tends to invest heavily in fixed-income investments because of the reliable returns they offer.

Fixed income investments generally pay a return on a fixed schedule, though the amount of the payments can vary. Private and government bonds, Private and government companies fixed deposits may be the best known type of fixed income security.

Mutual Fund

What Is Mutual Fund?

Mutual Fund is a vehicle that enables a collective group of individuals to:

a.) Pool their investible surplus funds and collectively invest in instruments / assets for a common investment objective.

b.) Optimize the knowledge and experience of a fund manager, a capacity that individually they may not have

c.) Benefit from the economies of scale which size enables and is not available on an individual basis

Tax Planning

Tax Planning

Are you the one who is tired of spending every last quarter financial year in extreme worries? Looking forward to save huge on your income tax? If yes, then tax planning alone is considered to be a way of conceiving and implementing various strategies in order to bring a curtailment in the amount of taxes you pay. The sole purpose of tax planning is the arrangement of your financial affairs so that the amount paid each year can be minimised.

The hidden benefits of a successful tax planning include huge savings on money by minimizing the tax liability legally. You can further invest the saved money to attain the investment benefits later in future. Side by side, it reduces your stress and worries by granting you an absolute peace of mind year after year.

Goal Based Planning

Child Education & Marriage

As a parent, you would not like to compromise your child's bright future regardless of the rising cost of living. Most of the parents start saving for Child Education from the birth of Child, which is a great. You too need comprehensive financial planning for your child’s education/ developmental needs. Here is the 5 step guide for your child’s future planning.

Set a Target Date
Set a Target Amount in Today’s Term
Find out the Amount you need on target date
Estimate the return which you can
generate over your investments
Calculate per month Contribution

Financial Planning:

What Is Financial Planning?

Financial planning is the process of meeting your financial goals through the proper management of your finances. Financial goals can include buying a home, savings for your child’s education, planning for your retirement or estate planning.

Armstrong helps you to work out on where you are now, what you may need in the future and what you must do to reach your goal by the process that involves gathering relevant financial information, setting financial goals, examining your current financial status and coming up with a strategy for a plan on how you can meet with your goals, and map the gap.

About Regan Financial Architect

Company Profile:

Reagan Financial Architect Pvt Ltd is a fee based financial planning firm providing holistic solutions in personal finance. Established in 2010,Started Journey as Wealth Advisory Company. Reagan Financial offer the most diversified product.Presence in 3 cities (Mumbai ,Ranchi ,Patna )

Financial Product Offered By us Equity ,Mutual Fund ,Life Insurance ,General Insurance ,Fixed Deposit ,Bonds and PMS.