Create an Account

Its Free and always will be!

Sign up or login with your social accounts
Birthday
Day

Top Intraday Trading Strategies to Follow In 2020

Before knowing about the best Intraday trading strategies in India, let’s understand a basic fact that there are more than 15 million intraday traders in India with a market size of over 4500 crores. There are thousands of DEMAT account holders who daily enter the world of intraday trading. It is amongst the most practiced trade form in Indian markets.

However, intraday trading also has its own set of risks which is also very high. Intraday trading requires quick decisions and executions which are usually not possible for everyone to make. It also requires to dedicatedly spare time until and unless you square off your position, because if the same is not done by market closing time, the broker automatically exits the intraday position at the time of market closure at the price available at the moment.

There are certain strategies, which can be beneficial for every intraday trader, right from a noob to a pro.

 

Best Intraday Trading Strategies

  • Investing in large quantities is the one of the best intraday trading strategies: A high liquidity stock means that there should be plenty buyers and sellers for that stock. So, you should make sure that the stock you are trading in is liquid enough which will make it easier for you to close and exit your position by the end of the day.

 

  • Own Your Trade: Details of stock’s holding pattern are available on the BSE and NSE exchange. A closely owned stock, i.e. a stock with a very few operators like brokers having 70-80% share, can be highly volatile and thus can reduce your chance of having a successful trade. A stock should be always widely owned, which in turn helps in minimizing risks.

 

  • Set a stop loss: A stop loss is a trigger which will automatically square off your position if it falls or rises below a specified limit. It is one of the most important factors in an intraday trade to minimize risk. As the name suggests, it helps to stop your loss after a specified limit. In a volatile market the stock prices can rise or fall sharply incurring huge losses.

 

  • Achieving the target: The time to close or exit a trade in case of intraday is very limited and thus you should be very quick and observant.

 

  • Momentum Intraday Trading Strategy: Intraday trading is all about momentum. You need to identify stocks before they make a big move and be ready to grab the movement as soon as it is made.

If you are new to trading and don’t have enough experience of market trends and trading it is better to take guidance from a SEBI registered investment advisor who can guide you with the trade. There are various SEBI registered and renowned investment advisors like CapitalVia who can help you in guiding you with Intraday trading strategies by providing research-based advice and levels for intraday trading. These intraday trading strategies can be beneficial but whenever you invest or trade in the market your capital is at risk. It is always better to enter the market with proper research and guidance.

Continue reading
Rate this blog entry:
39689 Hits

Short-Term Stock Investment with Quartile M

Investments and financial planning usually involve long tenures, but there are many investors out there, who are looking for short-term stock investment. The reason for short term stock investments, m...
Continue reading
Rate this blog entry:
29510 Hits

Why You Need an Investment Advisor

To understand the benefits of an investment advisor, we need to know that the fast pace of life in the current times has left people with little time to devote for themselves. Be it for their physical health, mental well being or their financial health. Parallel to this, finance and investment sector is advancing in leaps and bounds with many new avenues of investing being added every year to the complex world of investment and wealth management

In such a scenario, an individual working hard to earn a decent living might not have enough time to spare for the study and research it takes to invest money in the best possible manner or to manage his wealth to avail optimum benefits. Thus, enters a who specialized in guiding people to their financial goals.

There are many different categories of investment advisors and each has a different style of working. There are registered investment advisors who provide you an unbiased option and advice regarding your investments. This can be either for investments in capital markets or for your overall asset allocation for your investments.

5 Reasons to Use an Investment advisor

  1. To Keep Your Investment Plan on Track
  2. To Rebalance Your Investments
  3. To Plan Your Taxes and Save Them
  4. To Plan Distribution of Your Acquired Wealth
  5. For Your Retirement Planning
  1. Investment advisor Helps to Keep Your Investment Plan on Track

Investing money is never really a joyful experience unless it gives sure shot returns on a regular basis. Investments often reduce the amount of money you would have otherwise chosen to spend on luxuries. Hence, the temptation to use that investment capital elsewhere is forever present.

  1. To Rebalance Your Investments

People who do not have a investment advisor tend to invest their money and forget about it. This is a dangerous practice. Each investment needs constant monitoring and rebalancing at regular intervals. A good investment advisor doe this rebalancing for you and keeps a check on whether all investments are yielding results or not.

  1. To Plan Your Taxes and Save Them

Just like nobody likes to invest money, nobody likes to pay taxes either. There are a lot of schemes, offers, plans and investments, where an investor does not need to pay taxes on the capital gains or invested capital. An investment advisor knows about all these avenues and can help you plan your taxes and save them in the best possible manner.

  1. To Plan Distribution of Your Acquired Wealth

This might seem rude but preparing for any exigencies is extremely important and an investment advisor helps you in planning your wealth distribution after your death, in the most efficient way. This is called estate planning and is done using an estate attorney.

  1. For Your Retirement Planning

As people have started being more aware and conscious about their future and ensuring a safe and secure life for themselves always, retirement planning has come up on the top of the list among millennials who wish to enjoy a good lifestyle for themselves post retirement.

Keeping in mind all these points, it is advisable that you get in touch with a investment advisor as soon as you start earning. Starting early on the path of financial planning and investments goes a long way in securing your financial freedom and security and making you achieve your financial goals much sooner.

Continue reading
Rate this blog entry:
25104 Hits

How to become a successful trader in the stock market in India

Trading in simple language it is to buy or sell goods & services in short term duration to earn the profit. In terms of stock market in India purchasing and selling of shares based on technical evaluation or market trend for short term duration for making money is called trading.

The dissimilarity between investor and trader is investors invest money for the long term and wait for the bull run to make benefit while trader make gain even in bad market circumstance sounds interesting. The trader can make more money than investor hence many people try this trick to make more money but fails. Trading is a mind game. This game is not for faint-hearted. To become a successful trader safely, they must take care of several things. 

When anyone wants to trade, they use a broker who will execute the trade on the market. The broker they opt for is an essential investment decision. India presently has around 70 brokers to option between. However, there are numerous top global brokers they can turn to. 

Criteria to choose broker for trading in stock market in India

  • Speed of execution – Due to the high number of trades they might make in a day, the speed of execution should play a factor. The stock markets are highly volatile, a very little delay in the speed of execution of your trader can lead to variance in price of the stock and thus impact your strategy.
    A broker has multiple clients, placing different orders at the same time. This can seriously create a situation of delay in the execution. Therefore, team size and speed of execution plays a very important role while choosing the broker. 
  • Costs – The lower the fees and commission rates, the more profit they take home, and many will reduce their commission the more they trade. The commission rates may look very small, but at the end of billing cycle the amounts are usually huge.
    If you are a long-term investor who is simply going to create a portfolio and wait for months or years, this might not be important for you. But for active intraday traders who place several orders every day, the brokerage charges pay a key role. The profits they make everyday should be at least higher than the brokerage charged on that trade. A lower brokerage charge will eventually lead to higher earnings.

  • Regulatory compliance – Make sure that the broker is regulated. They'll be legally obliged to protect their financial interests. As per the Securities and Exchange Board of India (SEBI) all the brokers and advisors necessarily need to be certified by SEBI.

    You should check the registration status of your broker, and check whether they are members to the different exchanges for India or not. Later if you wish to trade in multiple segments or exchanges, this is going to help you.

  • Spreads – As a day trader they have to demand competitive spreads. Find brokers with tight spreads and their bank balance will thank them for it.

 

What Can Be Traded in stock market in India 

  • Forex – The foreign exchange currency market is the most popular and liquid globally. It is legal in India and you can trade in various international currencies including the US dollar, Euro etc.

  • Stocks – Physical stocks in individual companies, regular and Leveraged ETFs (an “Exchange Traded Fund” holds multiple stocks or commodities and is traded like a single stock), futures, and stock options. They can buy and sell in the shares of the ICICI Bank, for example, India's largest privately-owned financial institution. This is often referred to as the equity market.
  • Binary Options – The easiest and most predictable technique, as the timing and return on a successful trade are known in advance. These are usually the derivatives of a listed equity stock.

  • Future: -The future price of a commodity or security fall under the futures segment. These are also derived from a listed equity stock and are amongst the most preferred segment as an alternative to the equity market.

  • Commodities – Oil and natural gas, foodstuffs, metals, and minerals etc. are traded under this category. Some of the highest trading commodities including precious metals like gold, silver, crude oil etc.

If they need to branch out from the National Stock Exchange of India and the Bombay Stock Exchange, they can trade in other global markets. If they are S&P 500 day trading, for example, they will be buying and selling the shares of companies, such as Starbucks and Adobe.

In the day trading forex market, they will be trading currencies, such as Indian Rupees, US Dollars, Euros, and GBP. In the futures market, often based on commodities and indexes, they can trade anything from gold to cocoa.

Index funds rapidly occur in financial advice these days but are slow financial vehicles that make them unfavorable for daily trades. These are usually preferred for long-term investment plans.

Another growing part of the interest in the day trading world is a digital currency. Equity trading with Bitcoin, LiteCoin, Ethereum, and other altcoins currencies is a widening business. With lots of volatility, able eye-popping returns, and an unpredictable future, day trading in the cryptocurrency could be an exciting avenue to pursue.

Day Trading Strategies in stock market in India

Traders will employ day trading strategies in forex, grain futures and anything else they’re trading in, to give them an edge over the market. Day trading using the Gann method is particularly famous in India, for example. It’s while that tiny edge that is all that separates successful day traders from losers.

There are several day trading methods out there, but all will rely on accurate data, carefully laid out in charts, tables, and spreadsheets. Options include:

  • Swing trading
  • Scalping
  • Trading zones
  • Trading on volume
  • Arbitrage trading
  • A simple day trading exit strategy
  • Utilizing news

It is those who stick religiously to their trading strategies rules and parameters that often seize a slice of the 3 crores daily turnover in the Indian National Stock Exchange.

Trading in any of the market segment has a high risk associated with it and therefore it is very important to know the amount of risk that you can bear in the market. These is usually done by getting your risk profile analysis before entering the market or planning any investment. Your broker or a certified investment advisor can help you calculate your risk profile analysis. The Risk Profile Analysis usually varies with several factors including your income, liabilities and your age. Therefore, you should keep your risk profile updated.

Continue reading
Rate this blog entry:
48235 Hits

Best Investments in India for Long Term 2019

Long term investment strategies are discussed in every household. The bread winners of the family have to plan for various expenses in life, including retirement, children’s education, healthcare, emergency situations, buying a house, etc. The first strategy that almost everyone follows is to make the most of their savings or investing in assets. However, these are age-old methods which may offer lower risk but the wealth doesn’t grow fast enough. The times are changing and so are the options for planning long-term investment. Are you amongst those who still follow the traditional approach for investment or are you a smart investor?


Best stocks to buy in India for long term 2019: What Does It Mean?

Although people use the term “long-term investment” to indicate their plans for securing the financial needs of their family, it is a common misconception that has been responsible for ineffective financial planning. In order to ensure financial security, insurance is the best option to pursue. However, if you want to make your money work and grow your wealth, then long-term investment strategies will help you define the best and most effective financial plan.

Ideally, any investment done for a period of more than 3 years is considered as a long term investment. Some people hold their investments for as long as 10 years. Successful trading strategies have always focused on making a move when the conditions are appropriate for the investment. This does not have the same implications for all. While some may require shorter sprints in terms of investments, while others may be required to hold on to their investments longer. It’s all about how much risk you are ready to bear.

Common Long Term Financial Objectives

There may be several reasons for planning long term investment. However, the common objectives usually include,

  • Education of children
  • Planning for marriage of children
  • Buying a house, apartment, or plot
  • Planning for retirement

A key motivating factor for planning long term investment is that all planned and unplanned expenses are made from the funds that you have. You do not have to pay interest or other charges, which would have been the case if you had sourced the funds as a loan. Still contemplating about making a long term investment?

Best Long-Term Investment Strategies That You Should Follow In 2019

If you have not started planning for long term investment, you should do it now without wasting any more time. For those who have already made investments, this is the time to think about taking another look at your strategy.

Check out the following long term strategies that will help you make better decisions with respect to your finances.

  • Open a PPF Account

One of the most traditional long term investment strategies is public provident fund. You must have heard the elders in the house talk about their pension schemes. PPF the most tax efficient and one of the safest options to invest in. There is no risk in this investment and fixed return is assured at maturity. As per statistics, the PPF interest rate for Q1 of 2019-20 is 8% p.a.

When it comes to PPF, you would have to wait for 15 years (which happens to be the lock-in period) before the funds can be withdrawn. Partial withdrawal is permitted in the 5th year but it is subject to certain conditions. You can claim a deduction U/s 80 C of Income Tax act, for contribution made towards PPF up to a maximum of Rs.1.50 lakhs.

  • Invest in Gold

If you have been around elders in the house, you would have realized that their concept of investing was most focused on purchasing gold (in the form of gold coins, biscuits, or ornaments). In the current scenario, one has the option to invest in gold through mechanisms like Gold ETFs, Gold Mutual funds, Gold Deposit Scheme etc. Despite the fluctuations in the price of gold, people still consider it as a lucrative investment option. The best way to make the most out of your gold investment is to analyse the demand and supply in the market, and purchase gold when the time is just right.

  • Consider Investing in Real Estate

Real estate investment is another traditional and popular investment strategy. One can invest in a house or land for the purpose of personal use or giving it on lease. In either case, the long term benefits from these investments are quite beneficial. However, it is quintessential that the investor remains patient and makes the move when the conditions are perfect. Property valuations may change overnight or it may take years for the value to appreciate considerably.

Real estate investments require substantial funds and more than often, the returns are not earned immediately. Moreover, there are quite a few scammers who trap people with lucrative deals but end up usurping their money and leaving them with nothing. Make sure that you make multiple analyses and conduct various checks before investing in any property.

  • Invest in Mutual Funds

When it comes to investments, people have become quite familiar with mutual funds, especially due to the extensive marketing done by various service providers. Brands like HDFC, ICICI and Reliance have further popularized mutual fund investments. The companies that manage these funds are called AMCs (Asset Management Companies) and they are regulated by SEBI. Hence, there is a certain trust in these services with respect to compliance to guidelines and the way investment advice is provided.

It is possible to withdraw funds from mutual fund investments in shorter durations. However, it is advised that long term investment should be maintained for better returns. One should also be aware of the various mutual funds available in order to select the most suitable type. For example, equity mutual funds are riskier than debt mutual funds. However, if you have the capacity to bear that risk, then you can go for an equity mutual fund.

  • Become a Stock Market Investor

You might not have heard many people discuss the possibilities of stock market investments being considered as a long term investment. But it is, in fact, a very good option if the investment is managed through proper approach. Investing through correct strategy will not only add to your financial assets but you can enjoy tax benefits as well. But, be cautious of the manner in which you make the investments. The stock market provides opportunities for massive benefits but also causes losses when the market dynamics are not considered before making a move.

This is why you should consider consulting with an investment advisor before investing in the stock market. There is a certain theme based trading strategy (suggested by a prominent investment advisor) which is really suitable for people looking for long term investments in the stock market. This strategy includes several themes and approaches which might be suitable for certain segments. Based on your preferred investment style, you can select a particular strategy and plan your investments based on the recommendations provided by the experts.

Not only does this help you to manage risk better, but you will have recommendations based on extensive research, and this makes it easier to make decisions with respect to stock market investments.

A Word Of Advice - Never Work on Assumptions

Whether you are investing in gold or in stock market, you should never base your decisions on assumptions. If you are more confident about weather reports provided by the weather department than the assumption of expecting a particular weather condition, then you should also not base your financial decisions on assumptions.

Always make it a practice to consult with people who have expertise in the investments that you are interested in. Cross reference their suggestions with market statistics, historic data, and experiences of people who have made similar investments, to arrive at a proper conclusion. You should always consult with an investment advisor to make sure that your actions are based on data driven information.

Continue reading
Rate this blog entry:
31818 Hits

Popular Investing Books

Peter Lynch
Nassim Nicholas Taleb
Edwin Lefevre
Robert J. Shiller
Janet Lowe
Anurag Sharma

Search Blogs

Most Popular Authors

Top 100 Investment Blogs

 771 Investors Online.


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