Create an Account

Its Free and always will be!

Sign up or login with your social accounts
Birthday
Day

Top 5 money management tips to help you invest in stocks

Overview

There are many people around who want to put their investment in a way that it generates a lot of return for them. It is thus, only deciding about where and how should people put their money. This is what is called financial wisdom. The great thing about this wisdom is that everybody wants it.

The beginning of every management whether it is related to business or money comes within. It is important to feel confident. According to the American financial advisor Suze Orman, if a person is scared and behaves like a weak, then it is impossible to get efficient results. Therefore, when you are heading to make the year count, you should be confident about your decision-making abilities. It is going to shape your money management in the year.

In this article, the emphasis will be on the top five money management tips that one needs to consider while one invests in stocks in the year:-

  1. Understanding every investment or decision related to investment before taking it

We know that every investment involves risks. It is very natural that sometimes you get good returns and sometimes your ideas do not come up on the bigger picture. This is why it is important to think before act. It is good that you are surrounding yourself with good financial planners. But only you know what is your ability to take risks. You are the only one who knows to what extent can you bear the losses. So, while taking any decision it is very important to learn about the various cases that can come up. You need to study all the folds of any decision.

According to the Director of Investment Products of World Gold Council (WGC), Mr Greg Collett, one should keep his or her money in the bank if one is not willing to do the work or is unable to understand every consequence. Probably he is trying to say that if one is unsure about the consequences or results concerning their investment decisions, they should not do it. This is because if you indulge into something without proper planning then it will create a problem at some stage. Therefore, planning your every step and looking for everything is very important.

  1. Never follow the crowd

Whenever there is aggressive marketing of stocks in any sector there is always a trend that everyone blindly buys the stocks of that segment. This can be fruitful in some cases. But one should never think that it would be a sure shot thing. Profit will not always come to your way if you just follow the trends. You need to analyse the market separately. You should pick your stocks and then target them at the price you want to. If you follow blindly what other people are doing you will never make a smart purchase. It will be always be considered as ordinary deals.

One of the most recognised name as an investor, Warren Buffett says that you need to be fearful when others are greedy (going for a particular segment), and at the same time you need to be greedy when others are fearing (not participating in exchange). Even the great host of the show related to financial investment Dave Ramsey too says that one should aim not to be normal. It is all about daring to be different. Profits are all about the dare.

  1. Expand your investments to distinct sectors

One of the common mistakes that every second investor today doing is targeting a few concentrated stocks. If you are not expanding your investments with money management ideas into different sectors or segments then it becomes very profitless. Therefore, maintaining diversity in stocks is considered essential. Once you have invested in stocks of different sectors or segments, there will be two direct benefits that will come to your way. The first benefit is that you will get a much better return. As you can buy the best stocks from each of the sectors or segments, there will be more profitable. The second reason is more important than the first one. This reason is that the loss will be minimised. As you have invested in every sector you will always get good profit and hence the loss would be lessened.

  1. Try and save every penny so that you can invest more

One of the most important thing that should be done is to save money. It works on a simple theory, the more money you have, the more investment you can make. If a person is doing a job, his or her target should be to try and save at least some fixed amount every week. This can help.

As you accumulate more and more fund it would be good as you will be able to invest a little more. So, the aim should always be at that. If you are a businessman, your aim should be to earn a little more profit so that you can earn a little more.

Saving money can help you with money management. It is considered that good if you have more money as you will invest more. If you invest more and make wise decisions then surely you will earn better returns too.

  1. Analyse every decision at the end of the week or month

An analysis is an important tool everywhere. It is something that wakes you up and tells you where you are wrong. It is very important to analyse every investment-related decision after a specified time. It can be a week and it also can be a month. When you analyse the profit or loss that you are getting and the non-performing stocks, it will be easy for you to remove obsolete purchases. Thus, the analysis only makes you more improvised.

Summary

These are few of the important money management tips that one should use to invest in stocks in the coming year of . What one requires is a good partnership that gives one hope and helps a person in making a prudent decision by backing them up. Arihant website and app for mobile is the right platform to give guidance and support to all the professional and budding investors who are eyeing big in the new year of . It will be a great thing to start your investment with quality decisions backed up by the experts and analysis team of Arihant Capital that monitors every minute detail and comes up with the rightmost decisions.

Arihant app has a user-friendly interface which connects with the customers easily. There are no chances of frauds or misuse as it is backed by security. It eases the pressure as there are many tools for analysis.

If you would have seen some of the popular investment apps, then you would be familiar with the fact that how do they lure their customers or potential customers. There is no such thing with Arihant Mobile Trading App. This app keeps you in the real world without any fake promises.

With all these features and the customer support, it provides Arihant is one of the leading contenders for money management app in the year .

Continue reading
Rate this blog entry:
13145 Hits

How to open Demat account and its charges with required documents?

 

 

With the growth in the Indian economy market participants is also growing with a much faster pace than our economy. This creates a business opportunity for the brokers to open Demat and trading account for the investors who want to invest money in the stock market. If you want to invest in the fastest growing economy of the world you can do so by Open Free Demat Account with the Best Stock broker. Here is everything you need to know about the Demat account.

 

Different brokers

Different brokers offers varied services with their products, For investing one have an option to open demat with any of the brokers like Arihant Capital, ICICI Securities, HDFC Securities, Angel broking, Zerodha etc. These broking firms’ are either discount brokers or normal service broker. Discount brokers doesn’t have lot of product features on their platform they only provide online free Demat account and trading account where investor can trade in any of products offered by NSE/BSE like cash futures and option. Clients has to trade online but if he want to call and trade then these brokers charges amount for call and trade, while on the other hand normal service brokers offers varied service like IPO mutual fund, Insurance, PMS and research advisory services.

Opening Demat Account

For trading and investing you should have a Bank account, trading account and Demat account. In demat account you can only hold securities which you have purchased to hold and to be sold in future while in the trading account you can buy and sell securities on a intraday basis trading account is also mandatory for trading in futures, option, gold and bonds

There are two depository participants companies active in india who open Demat account of investors they are NSDL and CDSL. Investor has nothing to do with these depositories because they don’t have to contact these depositories while buying and selling the stock it is the broker who transact on behalf of clients with these participants.

Documents Required for Opening Demat Account

Now a day’s all the brokers has facility of opening demat account online, you just have to upload the documents on the portal pay the account opening fees if applicable and you are done. Only thing is when are transacting on your demat account then you have to give POA (power of Attorney) to your broker. With POA broker will be allowed to transact on your behalf with the depositories. Following Documents are required to open a demat account online

Proof of Income

  1. Income Tax Return (ITR) Acknowledgement slip
  2. Certificate of Net Worth
  3. Salary Slip of the current month or Form 16.
  4. Last 6 Months Bank Statement

Proof Of Identify

  1. PAN card having a valid photograph
  2. Aadhaar card / Voter ID card / driving license/ Passport.
  3. Identity card issued by Central/State Government

Proof of Address

  1. Passport/Voters Identity Card/Ration Card/Driving License/
  2. Landline telephone bill, electricity/gas bill
  3. Bank Passbook

How it works

Once your demat and trading account if opened you need to transfer funds from your bank account to your brokers account. You can now place buying and selling order in cash segment or in futures and option segment. You can also buy and sell difference products like IPO, Insurance, Mutual funds, PMS Etc if your account is with full service brokers. If you want to trade offline and want to take home the shares which you have purchased then you to sign the DIS (delivery instruction slip) and give it to your broker however if you have given POA then you are not suppose to sign DIS every time you transact on demat account your broker will do the same on your behalf.

 

Charges

Broker charges account opening fees and annual maintenance fees in addition to the regular brokerage on buying and selling. Sometimes annual maintenance fees and account opening fees is waived off depending on the offers run by a broker. Brokerage charges differ from broker to broker standard charges of full service broker vary from 0.10 paise to 0.50 paise for delivery and 0.01 to 0.005 paise for intraday while discount broker charges vary from Rs.10 to Rs.30 per trade. Full service broker charges brokerage on a turnover while discount broker charges on each trade. One should select the plan which suits in his type of trading.

 

Continue reading
Rate this blog entry:
14184 Hits

How To Open Online Paperless Trading Account

A Trading Account is your foundational step to go about the share Market Trading. Without it, you will not be able to invest in any kind of securities.. So, it is a pre-requisite that you will need a trading account. These trading accounts can be opened online & will help to make your investments much easier and worry-free.

There are a lot of advantages of this too and subsequently on the off chance that you are actually considering the offer exchanging, then, at that point you should start the procedure with this progression.
So let’s look at how you can open trading account for yourself online.

Step1.
Visit broker’s website and search for the option to open paperless trading account. Sign-in with PAN & contact credentials to recieve a one-time password (OTP) on the mobile number that you are using while registrations. Submit OTP to validate your PAN details.

Step 2:
Validate Aadhar Details
Once you put in your Aadhar linked phone number, you will receive a one-time password (OTP) on that mobile number. The OTP is sent to validate your Aadhaar cards. After that, it will ask for your banking details, address and the brokerage plan you require. The webpage will then prompt you to upload document proofs. This may include Aadhaar ,PAN, Income proof, cheque, & Signature.

Step 3: Verification process

In-person verification is the last step. Previously, a DP representative would physically visit and verify the documents before opening the account. But, a big thanks to technology, DPs now do the verification through a video session .

Once the process is complete, the portal will facilitate you with an e-sign button. You will then receive a one-time password (OTP) on your registered mobile number. Once the OTP is submitted, your e-sign will be affixed & the e-KYC process will be completed.

You will receive a unique client code (UCC) on your phone via email for Demat A/c & Trading A/c. In a separate mail you will receive the login credentials to start trading.

The process is very simple and it takes no time for you to open your own trading account if and when you submit all the required documents. Bank procedures have been quite simple after the technology kicked in and made everything easy to unexposed hands.

Continue reading
Rate this blog entry:
10005 Hits

Intraday Trading Guide For Beginners

 

“Trading effectively is about assessing probabilities, not certainties.”

The term intraday simply means “within the day” and also named day trading. Hence, the intraday trading refers to buying and selling of trading stocks during regular trading hours in a single day. Intraday trading is based on price movement. It means you buy shares when the price is low and sell them when the price rises.

Got the idea? Now, if you wish to start with intraday trading, read on to understand the basics of it and how to begin with

How to do you start?

Before you start trading, you should keep pace with the latest stock market news, events happening and get to grips with stocks you are looking forward to trading for. Scan business news and visit some good financial websites. So, do your homework first! To begin with Intraday trading, you need to Open trading and DEMAT account. 

Start Small

As a beginner in intraday trading, keep it simple and small. Focus on only a few stocks during a session. It’s easy to understand the process. Once you understand the process and get good making, branch out.

When to trade? 

One of the most frequent questions asked is, “when to trade”? Well, timing is crucial for intraday traders. As a day trader, make sure you can adjust your timings easily because the different time zones can make you miss the best entry signals of your day. Experts suggest maintaining consistency and trade during the same hours of daily.

For stocks, the first one to two hours after the open, and the last hour before the close.

For futures, the best day trading opportunities are from 8:30 am to 11:00 am EST. It starts a bit earlier than stocks.

For forex, 1200 to 1500 GMT sees the biggest price hikes, so this is a popular and active time for day traders.

Define your target 

As a new trader, it is important to have a daily trading target to prevent yourself from being disheartened (in case of loss) or being too greedy (in case of profit). Try to understand the risk-reward ratio and set your profit & loss price target. Stop for the day once you hit the cap. Track your daily records in a spreadsheet that will help you identify the gaps, any pitfalls, and also guide you in minimizing losses next time.

The risk factor

There is no trade without the risk involved. Day trading is risky for beginners as it requires to watch the market regularly and closely. Also, you need a good understanding of daily charts & technical terms to make the right decisions. Therefore, it is suggested for beginners to keep a risk-reward ratio and stick by it. This will help you to “lose less and win more”. “If you personalize losses, you can’t trade.” 

And finally the right broker 

Choosing the right broker should be the wisest decision when it comes to day trading. Brokers facilitate your trades, provide you with market research, and suggest you the best investment plans. In return, they charge you a fee or commission on your trade. Open your trading account with Arihant Capital and get the best services.

A final word to the new traders, as Euclid wrote, “there is no golden rule to the Geometry” similarly there is no golden rule to excel the day trading. Only practice and a better understanding of the market can make you a good intraday trader. Always remember, don’t rue over the losses and don’t get carried away over handsome profits. It’s day trading get your profit and walk out!

Continue reading
Rate this blog entry:
9613 Hits

How does Stock Market work for beginner

Stock Market as perceived by many is a complicated trading platform , meant to be understood by only the financial experts. You are not alone who is terrified of investing in the stocks, there are man...
Continue reading
Rate this blog entry:
12218 Hits

What is Trading Account? How to Open Paperless Trading Account?

A trading account is your basic foundational step to share market trading. Without a trading account, you will not be able to invest in equities and take part in the share trading of stocks. So, it is...
Continue reading
Rate this blog entry:
14538 Hits

Popular Investing Books

Aswath Damodaran
Eli Broad
Pranab Uniyal
Bruce C. N. Greenwald
John F. Carter
Spencer B Meredith

Search Blogs

Most Popular Authors

Top 100 Investment Blogs

 593 Investors Online.


Be a Smart & Well Informed Investor!
Join Today its Free.
Register or Login with just one Click using your Social Account