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A lot of investors panic when the markets fall and start selling their stock holdings – this leads to even more drastic fall. This is what happened on Friday, 26-Nov-21. When the markets falls do not worry – not a single company fundamentals changed in the last 24 hours – it takes time. So why take your investments out when only one bad news of a new variant of COVID was found, that too in Africa.

See the NSE fall in 26-Nov-21:

NSE on 26-Nov-21

Very soon the clever investors will start investing and markets will rebound. They look a fall as an opportunity to buy not sell. But these kinds of investors are less. Panic investors never make money – it’s the clever investors who wait for an opportunity and get in and make money. read more

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Should You Invest In BITCOIN And CryptoCurrency Trading

Before reading you should know that in India Government is planning to move a bill to ban all private cryptocurrencies. So be careful before investing in any cryptocurrency, if banned you may not be able to sell the cryptocurrencies that you bought..

For the last few years, BITCOIN And CryptoCurrency Trading is making a lot of news. Investors especially in the western countries, and now in India too have shown a lot of Interest in BITCOIN And CryptoCurrency Trading. read more

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Diwali Muhurat Trading 2021 Time and What You Should Do

This post was written on: Thursday, November 4, 2021

Diwali Muhurat Trading is a 50-year-old tradition for Equities, Equity F&O, Currency F&O, and Commodities market. Today – Thursday, November 4, 2021, is Diwali 2021. Today the Diwali Muhurat Trading is set to be held between 6:15 PM to 7:15 PM.

From 5:45 PM to 6 PM there will be a Block Deal Session. A Block Deal Session is a single transaction, of a minimum quantity of five lakh shares or a minimum value of Rs 5 crore, between two parties which are mostly institutional players. The transaction happens through a separate trading window. read more

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NIFTY Support and Resistance in November 2021

October 21 saw Index touch a record high to 18,604.45. This happened because of these reasons:

1. Decreasing COVID cases in India and no increase in cases even after a lot of festivals in the month.
2. The International Monetary Fund, as well as India’s central bank, this month estimated the nation’s gross domestic product will grow 9.5% in the year ending March 2022. This data is the quickest among major economies. Compare to last year same time the GDP of India contracted 7.3%.
3. Manufacturing sector saw the fastest growth giving signals that the economy is moving in the right direction. read more

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NSE EOD as on Thursday, 07-Oct-2021

In the last one year, Nifty rallied from 11669 to 17790 as of 07-Oct-21 closing. That’s a growth of almost 52%.

Now ask yourself this question – has your trading account gained 52% in the last one year? Or even 25% (half of it)?

Or has it lost money?

If you lost money then what mistakes you did?

Do you repeat this mistake?

Maybe yes.

But do you want to repeat this mistake again and again? If yes the results will be the same.

Therefore you must learn how to trade correctly with a proper plan. A losing trade loses because there is no proper planning. After doing my courses you will become a disciplined trader. read more

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If India VIX is Low Options Premium Will Also be Low

First what is India VIX Index?

Volatility Index is a measure of market’s expectation of volatility over the near term. Volatility is often described as the “rate and magnitude of changes in prices” and in finance often referred to as risk. Volatility Index is a measure, of the amount by which an underlying Index is expected to fluctuate, in the near term, (calculated as annualised volatility, denoted in percentage e.g. 20%) based on the order book of the underlying index options.

India VIX is a volatility index based on the NIFTY Index Option prices. From the best bid-ask prices of NIFTY Options contracts, a volatility figure (%) is calculated which indicates the expected market volatility over the next 30 calendar days. India VIX uses the computation methodology of CBOE, with suitable amendments to adapt to the NIFTY options order book using cubic splines, etc. read more

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How To Calculate Owners Earnings

Owner earnings is different from the company’s earnings. In this post, I will explain what is Owner earnings of a company and teach how to calculate the owner’s earnings. It’s a long post please get a cup of coffee and read full.
 
Owner earnings is a valuation method detailed by Warren Buffet in Berkshire Hathaway’s annual report in 1986. He stated that the value of a company is simply the total of the net cash flows (owner earnings) expected to occur over the life of the business, minus any reinvestment of earnings. read more

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I have written earlier in my blog on managing the personal financial portfolio and asset allocation which I follow personally, you can read it here. But I am no genius, so writing this post to help you understand a very popular stock investment, asset allocation and money management strategy known as “The Kelly Criterion”.

First a word on who is Kelly?

John Kelly was a physicist working with AT&T’s Bell Laboratory. He developed the Kelly Criterion to assist long-distance telephone signal noise issues in AT&T. In 1956, John Kelly published a paper titled A New Interpretation of Information Rate, now available as a book – Bet Smart: The Kelly System for Gambling and Investing. In the paper, he draws an analogy between the outcomes of a gambling game and the transmission of symbols over a communications channel. This is basically an allocation technique also called the Kelly strategy, Kelly formula, or Kelly bet, that we can follow in our investments that you will read in this article. Kelly’s original paper can be found here ( not easy to understand, lots of mathematics there). In the paper, Kelly described a simple and elegant way for investors to strategically allocate capital in the face of uncertainty. This is what is now known as the Kelly Criterion. read more

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First lets see the fall of NSE in Mar 2021:

Source: https://money.rediff.com/index.html

On 03-Mar-2021 NSE closed at 15,245.60, and on 26-Mar-2021 closing, its 14,507.30. That is 700+ points fall.

Why Indian stock markets are falling in March 2021?

Disclaimer: This is my personal view not written or told by experts anywhere. Most experts are saying that it is due to resurgence of the Novel Coronavirus (COVID-19) in India. Sudden spike has spooked investors. Well that is also true. I am just adding one more reason of the fall written below. read more

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Share or Stock Buyback or Repurchase Explained

Lots of investors are still confused when they hear XYZ company is buying back its shares from the public. They do not understand what exactly is Share/Stock Buyback/Repurchase. 

Please note that all these mean the same thing:

– Share Buyback
– Share Repurchase
– Stock Buyback Share or Stock Buyback or Explained
– Stock Repurchase

Let me first explain in short what exactly is Share Buyback.

A share buyback happens when the issuing company pays shareholders the market value per share and re-absorbs that portion of its ownership that was previously distributed among public and private investors. Once this happens the owners of the public and private investors decrease in the shareholding pattern. One immediate and short term effect of this is that the EPS (Earning Per Share) increases of the company. This increases the valuation of the company in the stock market and may take the price of its share a tad higher. read more

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