How to Calculate Money Flow for Analysis? (Hindi)

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Generating profits from trading the stock market can be quite an exciting experience. However the technicalities will confuse most people at first. And especially so if your maths and market research skills aren’t that great. Here I will discuss some of the stuff you should become familiar with before you begin your quest towards stock market success.

When people first delve into the business of stock trading, all they concern themselves with is making a whole lot of money. Unfortunately, they are quickly let down as they find that jumping into the deep end feet first is not the best scenario for a winning stock market trading business, or for that matter any business you could think of.

When it comes to building any stock investment portfolio the foundation of your holdings should be the stocks found in the S&P 500 index. After all, this is the standard by which all portfolios as well as fund managers are judged. When you look at performance comparisons they always compare them to the performance of this index.

The exchange of stocks and securities in the form of money in an attempt to gain profit from the fluctuations over a short period is called stock or financial training. It is on the same principles as investment of money in areas like real estate or banks with the profit arising from rate of interest or value of money, the only difference being that stock trading is usually for a very short period. The technology has also supported the stock trading over the years. Before traders and brokers used to quarrel on a stock trading platform manually but now the same thing is possible on an online platform with the use of computers. Thus telecommunications is known to have played a major role in these online transactions.

Learn about the various academic studies that definitively show that value investing does work in emerging markets and India in particular. The Brandes institute has shown that value stocks have outperformed glamour stocks by a wide margin on an 5-year average annualized return basis from June 30, 1980 to June 30, 2007.

When I broke into Wall Street more than four decades ago, the concept of macroeconomic investing was unknown. Even today, the term will cause many alleged investors to scratch their heads in wonder. The term may be unknown to them but in truth, they are slaves to an investment concept that will play havoc with their chances to be long-term successful investors.

Sound research and good fortune- two of the key ingredients that could increase your chances of building a share portfolio that will achieve your investment objectives. The first ingredient is one that rests comfortably within your control, even if it means engaging the services of an independent investment advisor to bring knowledge to the table on your behalf.

P/E ratio is often used to value stocks. However, a high p/e stock does not always mean it is overvalued. On the other hand, some times a low p/e stock may really be over valued. It is important to research the stock further.

Online trading is mostly done on BSE and NSE stock exchanges. Many traders carry out trading in these markets when the market is live between 9 am to 4 pm.

In investing there are two types of investors: those who buy growth, and those who buy value. Traditionally tech stocks have been looked at from a growth lens. Rapid technological changes and obsolescence, low barriers to entry, network effects, and expectation of great profits have led the tech companies to seek rapid growth to gain market share early.