Category: Share market

3 best apps for stock market updates

Whether you are a fresh investor new on the market, or an experienced player well acquainted with the market trends, you need to keep abreast with the constantly shifting share market. It is a complex and volatile space that is never stagnant. There is an endless need to update oneself with stock market news to successfully invest and realize returns. Thankfully, there are a number of extremely helpful apps online that give you stock market live updates and help you trade efficiently on the go.

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We have made a list of the best 3 apps that you should use:

  1. Moneycontrol Markets on Mobile: This is the most inclusive and useful app that is basically a solution for all your informational needs. It provides latest news and updates about your preferred stocks and Indices, tracks your investment portfolio, and even gives you financial advice from other investors on the forum. It is easily available and works across all platforms and devices.
  2. The Stock Watch: This app is what you need if you want to keep a close watch on your favourite stocks. It gives you real-time quotes on Indian stocks, provides intra-day charts from BSE/NSE, gives latest updates about financial news, NSE futures, equities and so on. It is also the highest rated app for android users to follow the economy.
  3. Investar: Through this app, you can view NSE stock charts and make informed decisions about which stocks to buy/sell. There are various technical indicators available for users, along with real-time quotes. You can add your favourite stocks to your watchlist that keep updating its stock charts every 5 minutes. The free app provides a limited number of watchlists, but you can get unlimited access if you make in-app purchases. With their new feature of The Watchlist Synchronization, you can back up your previous watchlists and sync the app to a desktop software of the same app. Investors work on all platforms and devices.
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All you need to know about ELSS Funds

Breads are of different types, but whole wheat bread is the best for health. Similarly, mutual funds are of various types but Equity Linked Saving Scheme or ELSS funds help you save on tax. Basically, ELSS is a type of mutual fund with tax benefits, where you can save income tax up to 1.5 lakhs under Section 80C. These funds have a lock-in period of 3 years and a majority of their portfolio lies in investing in stock markets.

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Read on as we tell you the basic know-hows of Equity Linked Saving Scheme.

How to invest in ELSS?

You can invest in ELSS funds by going to your preferred company’s website. The investments can either be in lump sum or in instalments. However, point to be noted is that each instalment is considered to be a fresh investment, and the lock-in period for each instalment would be 3 years, separately.

What tax benefits can be availed from an ELSS?

An investor of ELSS can attain tax benefits of up to Rs 1.5 lakhs in a year. The returns generated on the investments are also tax-free on completion of three years. In case of instalments

Top stock investing mistakes to avoid as a beginner

If you are a newbie in the world of investment, there are chances that you will make mistakes as you move ahead on the path of financial success. While some of the mistakes will prove to be a lesson, some can jeopardise your dream of stock market success.

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Irrespective of stocks you choose to invest in, there are a few tips and tricks without which you can make a profitable investment. We have enumerated a list of mistakes to avoid as a beginner in stock market.

  1. Investing without a plan:

Invest in Indusind bank, the stock is bound to rise. You went ahead with the investment without analysing indusind bank share price and trends and ended up in loss. Not having an investment plan is like travelling to an unknown land without a map. You will end up in loss. A good investment plan includes your own goals, finances, risk appetite, and benchmarks to measure your success. It will keep you focussed and enable you to make informed investment decisions.

  1. Investing in Bulk:

Investing all your hard earned money in one go is yet another mistake that leads to failure in the stock market. It increases the risk of loss to a great extent. Also, it paralyses your financial portfolio. Start investing small, and gradually increase the amount of investment as you understand the working of the markets. This will again help you make profitable investment decisions.

  1. Putting all eggs in one basket:

Another mistake that beginners make is putting 100% funds in a single type of asset. The best way to minimise stock market risk is to diversify money. If you are making one risky investment then it is important to balance it with a stable one. A good financial portfolio consists of equities, bonds, FDs, insurance etc.

  1. Having no investment plan

Venturing into investing without having a plan is like starting a voyage without a compass. You will end up as a loser. Before you start investing, you must have a personal investment plan or policy that include your goals and objectives, the risks that are relevant to your chosen investment style, the benchmarks for measuring your success, and your plans to diversify your investment. Having a plan will keep you focused and disciplined, and will help you adhere to a healthy long-term policy even when market conditions are unfavourable.

  1. Investing cash reserves

Yes, you have a burning zeal to bump into the investing world and start making huge fortunes later. That’s good, and that’s just the same motive every investor has. But most of the time, you will have this strong urge to pump all the money you have into your investment. Never give in to this urge, as it would make you regret bitterly in the long run.

Having an investment doesn’t mean you should have no liquid assets left. You should always set aside a good amount of cash for emergencies and opportunities that may never come again. Granted, saving your cash brings no returns, but investing everything is very risky as well.

Nine Golden Rules To Win at Intraday Trading

Intraday trading or day trading refers to the trading system where traders square-off the trade on the same day. Squaring off the trade means to sell and buy or buy and sell shares before the market closes on the same day.Intraday traders or day traders are most prone to risk and market fluctuations. One can lose all investments or become a millionaire within a few hours.Many traders use high-end technical data from brokers as well as their own calculations to decide their intraday trading strategy, best stocks for intraday, and their spending limit. It requires patience and dedication to make decent profits. If intraday trading is something which attracts you, here are some rules to remember before taking the plunge.

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Choose particularly liquid shares:

Traders need to square off before the market closes. Always choose shares which are very liquid and traded in large volumes. It ensures that despite market fluctuations, you will have some buyers for your shares at the end of the day. If you trade in small-cap shares, you might stand to lose a lot of money.

Limited Scrips:

Scrips or shares are traded every minute, intra-day traders may have a lot of scrips in their portfolio, but it’s practical to trade in two or three as they have to be monitored continuously for the entire day during day trading.

Stop Loss:

Stop Loss refers to an order placed with a broker to sell or buy shares if it reaches a certain price. This is done to avoid losses.

Example – A trader has bought 20 Reliance shares worth INR 100 each and sets a stop loss of INR 80. If the price of the share falls to INR 80, the shares are sold. This ensures that if the price falls even further, the traders safe from loss.

Book profits:

A trader’s mentality changes whenever he/she makes a trade. It’s vital for a trader to book a profit whenever it’s made. If a trader has 20 Reliance shares worth INR 100 each and a stop loss of INR 70, however, the trader feels bullish that the share price could increase to INR 120, the stop price should be increased from INR 70 to INR 90 to reserve some profits.

Research:

Intraday trading involves traders doing obsessive research and analysing data provided by broking houses. Traders need to know all upcoming business events (IPOs, mergers, bonuses, bankruptcies). Any event which can change the market trend should be known to a day trader.

Respect The Market:

There’s a saying at casinos ‘The House Always Wins’. The same rule is applied in trading. A trader can feel that he/she can overcome market trends and each time a trader feels this, he/she bites the dust. Work hard, trade hard, and always respect the market.

Greed:

Every intraday trader wishes to earn a lot of money. If a trader’s having a great run, it’s good, but the trader shouldn’t fall in for greed and put in more money to trade without careful thought. There’s a good chance that whatever profits made earlier could be wiped out. Always book your profits, simple profits accumulated over time is better than blind and greedy risks.

Choosing a Broker:

A trader needs to have an excellent broker. Brokers should provide services which are quick and efficient when it comes to intraday trading. A great example would Angel Broking, they offer well-researched data, market updates during the night, efficient money management and their brokers come with a wealth of experience. Always go for such brokers.

Invest money you can afford to lose:

The last and most important point. Do not pledge valuables, go in debt, or borrow from others for intraday trading. A trader should always invest money which he/she can afford to lose and which belongs to him/her.

Intraday trading can seem lucrative with easy money, but it’s far from that. It takes a lot of years of experience and hard work to earn money. If you are up for it, tread with little steps keeping the above rules in mind.

How does the share market function?

While we all know what a stock market is and this where all the shares are traded, however, many are still unclear about how it works.

To begin with, a stock market is where all the financial instruments such as derivatives and stocks are traded. Be it the broker, the company that issues shares, investors or the traders, all of them need to first register with the stock exchange as well as Securities and Exchange Board of India.

share-market-function

The company who issues shares is listed through IPO, i.e. Initial Public Offering in the primary market such as ICICI bank share price, SBI share price, and share price of other banks and companies. All the details about the company as well as the number of shares to be issued are mentioned in the offer document. The stocks are then allotted to the investors as per the bid.

Once the stocks have been listed, they can then be traded in the secondary market. There are many brokerage firms as well as brokers who play the role of intermediaries between the investor and the stock exchange. When you place an order with the broker, he then forwards it to the exchange which in turn checks for a share sell order matching with the same share.

When a particular price is decided upon by the seller and the buyer, the order is confirmed by the exchange and hence communicated to the investor’s broker. The exchange also ensures that both the buyer and seller, do not default. After this is done, the ownership of the shares is then transferred which is called as settlement.

Once the order has been placed, there cannot be any cancellation. Therefore, it is very important to think, analyse, and decide in order to place any order in the stock market. The trade that has been confirmed has to take place as it is a question of sanctity on behalf of the stock exchange.

Importance of Share Market Research

In life, there are certain times, when we need to do a lot of thinking before we could arrive at a decision. In today’s world, with so much negativity around us, and people trying to make profits out of us even as we speak, it becomes imperative to double check, especially at the time of making any financial commitments. As our hard earned money needs to be taken care of in a sensible manner, it is important to make smart financial investments. While making investments, a lot of people get cold feet.

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Making investments is quite different from investing your money into buying property, vehicles, etc. As when you buy a product, you basically pay in order to get a commodity in your hand, depending on the quality of the deal you have made, you may end up with a good product or a faulty one. In order to make it a smart move, you can return a faulty product, and replace it with a good one. Investments on the other hand do not usually give you something in return for the amount you have paid, other than the promise of getting something usually better than what you have paid for now. The quality of the investment made can only be determined after a certain period of time.

In order to enable yourself to be able to take smart decisions in life, it becomes essential to do your home work before making an investment. Especially when it comes to share markets, one must conduct a thorough share market research before taking a dive. Doing proper analysis of the market behavior, technical research of the company, etc. are extremely important steps in order to improve your chances of achieving success. Websites such as Share Khan.com, etc. are always there to allow you to take their assistance in order to arrive at an acceptable decision. As it is always helpful to get a second opinion for what you have thought, and the opinion becomes all the more important when coming from an industry expert, there is tremendous scope in this field.