Wednesday, August 8, 2012

What is a MUTUAL FUND


A mutual fund is a professionally managed type of collective investment scheme that collects money from investors and invests it in stocks,bonds, short-term money market instruments and other securities. Mutual funds have a fund manager who invests the money on behalf of the investors by buying / selling stocks, bonds etc. And provide returns to the investor.

The mutual fund industry in India started in 1963 with the formation of Unit Trust of India, at the initiative of the Government of India and Reserve Bank of India.India has around 1000 mutual fund schemes. 


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Sunday, July 29, 2012

Difference Between Stock and Share


Stock is a term investor used to describe ownership in number of companies.
for example X has stocks Then he will have any companies stocks.such as Tata motors, Reliance, Bhel etc.

Share is a term investor used to describe ownership in a particular company.
for example X has share in his D-mat account.Then question will appear which companies stock he has. Answer will be X has shares of Tata motors.

Friday, July 27, 2012

Day Trading



DAY TRADING  means you buy and sell shares on same day,you wont hold a position for the next day.

When to buy or sell a share ?


no one can answer this question straight, but there are certain methods in the Technical Analysis,with 
the help of them you will get an idea or conformation, when you have to buy or sell a share !

When it is at low or high price ?


you can find it possible low or high price of the share for a particular day.
There is simple method you can use for it


1) compare current trading price of the share with yesterdays high-low price
if it is breaking previous high then it is making new high,you can say here price is rising with higher highs,you can use this Technic for to buy a share. and if it is not breaking the previous high then you can exit your current position here.


2) If it is breaking previous days low then you get new low, here can move out of your buy position so  it will not going to extend your losses any more. if prices are consolidating near or at previous days low but not breaking it then you use this signal to buy the share.


3) compulsory use stop loss, so it will helping you to protect your capital and limit your losses as well.

Thursday, July 26, 2012

Gold Investment

1) Gold:-
If you like to invest in gold then there is not necessary that you have to invest in the company.
NSE have provided more helpful and attractive platform or options of investment. Which are exchange traded funds and they are more attractive. You just have to buy a GOLDBEES which is similar to other common shares. 
For example if on the commodity exchange gold is trading around 28500 then on nse it will trading around 2800-2850. It has liquidity, needed less investment ,and easy to buy and sell.
There is three ways you can make profit from your investment in the gold.
*first one is you can take a advice from expert in the gold or adviser
*second one you have to study world markets, economies, in short you have to study fundamental analysis
*Third one is Technical analysis which is study of chart and price data so on your own you can generate buy and sell signal for yourself.