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A Full-Time Trader Should Become Very Conservative

On Friday, July 22, 2022, I received a testimonial from one of my clients in Bangalore. He took retirement (Voluntary Retirement Opportunity (VRO)) from his job and switched to full-time trading. And he started reading my strategies. 🙂

Read above – he started reading the course. So happy that in 2022 when Youtube has taken over in almost every aspect of life – from listening to music to watching shows & movies to knowledge on everything – my strategies are something my clients look back to. This is clear that he too must have tried some strategy seen on Youtube – but later realized that it’s all not worth the time. read more

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Learn How to Start Investing in U.S.A Stock Exchanges

This page has information on all the major U.S / U.S.A Stock Exchanges, how a person can start investing in them, and possible returns.

Before naming the major stock exchanges in the US I would like to discuss what happens in the US stock exchanges.

Important Information on Stock Exchanges (Applies to all stock exchanges in the world):

When you buy a company’s stock you become one of the owners of that company and are fully entitled to get the benefits of that ownership. Do not get too excited, you are only a part-owner and your rights and benefits are limited to the number of shares in percentage terms you own. For example, if a company declares a dividend of 100 dollars to be shared among its shareholders and suppose there are only 100 stocks of that company floating in the market and you own just one share, then you will get one dollar as a dividend. One share of 100 is 1% therefore the dividend you will receive will also be one percentage. read more

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How to Profit in a Stock Market Crash

As I am writing this on Monday, June 20, 2022, Sensex and Nifty are at the lowest level this year 2022. Not sure that it will go down further, but one thing is for sure it will move up someday, it’s just a matter of time. Here is the Nifty live chart at 1.46 pm on 20-Jun-2022 – Source: Google:

From 18,000 levels down to 15,300 levels. That’s a decline of 13.18% this year. Is this good? No, it isn’t good for short-term equity investors, but it’s just another day for long-term equity investors – this kind of volatility they have seen many times. read more

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Lessons From Warren Buffett Letter to Shareholders

Below are some of the lessons an Investor should learn from Warren Buffett’s letter to shareholders. I have sourced this article from many authentic websites. I have written the most important points that an investor should learn.

1. Economic Moat Keeps Changing of a Company:

What is Economic Moat?

“Economic Moat” is a long-term competitive advantage that a company holds that allows it to protect its market share and profitability. A company with a strong moat possesses a competitive advantage that is both strong and sustainable. The most effective moat is the Brand Name. For example SONY, SAMSUNG & LG charge a higher price than their competitors just because they can easily leverage their brand name in electronics items like Smart TVs, Music Systems, Refrigerators etc. read more

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Can Non-U.S. Citizens Buy Stocks of U.S. Companies

In short, the answer is YES.

There is no regulation that says that you must be a citizen of the US to buy stocks of the US company. In India and other nations, there are many mutual funds that invest in US companies like Alphabet Inc. (earlier known as Google Inc.), Microsoft Corporation etc.

I am not sure about other countries, but an Indian can invest in US markets by opening a US brokerage account. You must have a PAN to open a US brokerage account. Please also note that to buy stocks you will have to transfer money to your account first before buying the stock. read more

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You must have opened a Demat investing & trading account, if not click here to open a stock buying/selling brokerage Free Demat Account. Now if you do not know from where to start or what to do, then you are sure to do investing mistakes.

Before you start your trading/investing journey you must know the difference between intraday trading, swing trading and investing so that you know where to focus and expertise yourself. This is important because everybody’s lifestyle is different. Some people work 9 am to 7 pm and some work from 12 pm and some have night duty (security personnel, software engineers working from home for a US country etc). Plus patience plays an important part in investing and trading. read more

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How To Control Greed And Fear While Trading

This is the most common problem with traders, especially the new entrants. No, actually the problem is widespread. Even experienced traders find it hard to control greed and fear while trading.

I remember one person who is my client told me once that he made 2 crore profit from almost the same investment and then lost approx. 3.5 crore and is now left with 50 lakhs.

So what destroyed his wealth? Greed not Fear.

What is an example of fear destroying wealth in stock markets?

It is more prevalent among mutual fund investors. When stock markets tumble they either stop their SIP or just withdraw all money in fear from their mutual fund investment. read more

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Data Patterns IPO Subscription Details:
 
IPO Opening Date: Dec 14, 2021
IPO Closing Date: Dec 16, 2021
Issue Type: Book Built Issue IPO
Face Value: ₹2 per equity share
IPO Price: ₹555 to ₹585 per equity share
Market Lot: 25 Shares
Min Order Quantity: 25 Shares or multiples of 25
Listing At: BSE, NSE
Issue Size: Eq Shares of ₹2 (aggregating up to ₹588.22 Cr)
Fresh Issue: Eq Shares of ₹2 (aggregating up to ₹240.00 Cr)
Offer for Sale: 5,952,550 Eq Shares of ₹2 (aggregating up to ₹348.22 Cr)
Qualified Institutional Placement (QIP) Shares Offered: Not more than 50% of the offer
Retail Shares Offered: Not less than 35% of the offer
Net Interest Income (NII) (HNI – High Net Worth Individual) Shares Offered: Not less than 15% of the offer
 
Net interest income = Interest earned – interest paid by the banks or financial institutions.
 
Update on 14-Dec-21 @ 12.45 pm:
 
GMP (Grey market Price) today is ₹610 which means the grey market is expecting shares of Data Patterns to list around ₹1195 ( ₹585 + ₹610), believe market observers.
 
This means investors may benefit from listing gains.
 
About the Company
 
Data Patterns is one of the few vertically integrated defence and aerospace electronics solutions providers catering to the indigenously developed defence products industry. It has proven in-house design and development capabilities, with experience of over three decades in the defence and aerospace electronics space. Data Patterns offers the entire spectrum of defence and aerospace platforms – space, air, land and sea. The company offers a wide range of products, including COTS modules, avionics displays, and communications ATES and satellites, fire control and other electronic systems for BrahMos and electronic warfare surveillance systems and radars. As of Sept’21, it has 818 employees with more than 500 qualified engineers, including 416 members in the design & engineering department. Its manufacturing facility consists of a 100,000 sqft factory built on 5.75 acres of land in Chennai, which has facilities for design, manufacturing, qualification and life cycle support of high-reliability electronic systems used in defence and aerospace applications. The order book as of Sept’21 stood at Rs5.8bn, with orders from several marquee customers in the Indian defence ecosystem, including the Indian defence ministry, BrahMos, DRDO, the Indian Space Research Organisation, HAL, BEL and a DPSU involved in the missile space. Data Patterns continues to invest in the development of various platform-specific products that have an annuity requirement, thus ensuring continuity of business in the coming years. It has received an annuity order for Rs120mn for the design and supply of cockpit displays for the Light Utility Helicopter (LUH), which has significant potential to generate additional annuity revenues from the new units required for the larger number of LUHs planned by HAL. Data Patterns has started to focus on civilian requirements like nano-satellites, wind profile radar and also plans to expand its export business, which is 10-12% of the core business currently.
 
Financials in Brief
 
During FY19-21, its revenue and PAT clocked 31% and 169% CAGR respectively, while average RoE and RoCE stood at ~15% and ~18%, respectively. During FY18-21, its order book clocked 41% CAGR to Rs4.9bn in FY21, which further expanded to Rs5.8bn in 1HFY22. The company enjoys a higher gross margin and EBITDA margin of 68.6% and 41.1% respectively, which are the highest among the key defence and aerospace companies. The order book as of Sept’21 stood at Rs5.8bn (3x FY22 annualized revenue), of which 67% share comes from production, 22% from development and balance 11% from services.             
 
My View: SUBSCRIBE
 
On FY22 annualized financials, the IPO is attractively valued at 40.7x EV/EBITDA, 16x EV/sales and 65.4x P/E vs. Paras Defence’s 68.9x EV/Sales and 19.7x EV/Sales and 157x P/E. The total addressable market is expected to grow from $1.97bn in CY20 to $6.65bn in FY30E, with a CAGR of 9%. The opportunities in the Indian defence sector is seen strong at $65bn in FY22. The company is looking to expand its product portfolio and focus on repeat large-volume production orders. Furthermore, it expects to augment design and development capabilities and increase its revenues by leveraging core competencies and growing its services and exports business. Data Patterns has a healthy order book of Rs5.8bn (3x FY22 annualized sales), providing revenue visibility over the medium term. Because of the strong financials, the healthy order book of 3x, strong track record of delivery, unmatched competency model & technology and attractive valuation, we recommend SUBSCRIBE to the issue with a long-term perspective.
 
Source: Research done on various financial websites and written here. read more

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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 crypto currency, if banned you may not be able to sell the cryptocurrencies that you bought..

For the last few years, BITCOIN And Crypto Currency 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 Crypto Currency Trading.

What is BITCOIN?

Bitcoin is a new currency that was created in 2009 by an unknown person using the alias Satoshi Nakamoto. Transactions are made with no middlemen – meaning, no banks! There are no transaction fees and no need to give your real name. Some merchants in a few countries especially the USA are beginning to accept them. You can buy Webhosting services, pizza or even manicures using BITCOINS. read more

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