Survey
* Your assessment is very important for improving the workof artificial intelligence, which forms the content of this project
* Your assessment is very important for improving the workof artificial intelligence, which forms the content of this project
Private equity secondary market wikipedia , lookup
Land banking wikipedia , lookup
Investment management wikipedia , lookup
Commodity market wikipedia , lookup
Technical analysis wikipedia , lookup
Financialization wikipedia , lookup
Investment fund wikipedia , lookup
High-frequency trading wikipedia , lookup
Amman Stock Exchange wikipedia , lookup
Algorithmic trading wikipedia , lookup
Investment Vs Trading Investment Basics Why People Invest in Financial Markets • To achieve financial goals • To increase income • To gain wealth and feeling of security Based on long term / short term financial goals investments could have • Targeted Rupee amount • Targeted maturity date Investment Vs Trading • They are often thought of as interchangeable actions while they are not • Commonality is the application of capital in the pursuit of profits • Investing is more open ended; trading is close ended with exit targets • With the same process and stock, intention and definition of objectives separate trading from investing Investing • When savings are put buy stock that will earn a decent amount of income and/or go up in value over time • Decisions are made for the longer term. Stock is bought because it is valuable now or likely to become more valuable in the future Trading • Time the market — buying low and selling high as quickly as possible • Successful trading requires close attention to price trends, insight to market movements and the courage to make quick decisions Do not trade like an investor or invest like a trader INVESTING v/s TRADING • Buy and hold/wait for the markets to come back • Never Buy or hold/wait for the market to come back INVESTING v/s TRADING • Averaging • Never Average INVESTING v/s TRADING • Never use a stop • Never trade without a stop loss INVESTING v/s TRADING • Never short the market • Shorting is a integral part of trading INVESTING v/s TRADING • Focus on the fundamentals • Focus on Technical Parameters Which One is Better? • Both the styles have numerous arguments in favor and in against. A client should stick to its goal and investment objectives. • HOWEVER combining both would be an excellent ‘style’ diversification. Obviously one should not miss the opportunity when market offers it on any given day. The winning Combination 1. Have clarity in terms of investment objectives 2. Set targets / rules for opening and closing the position, closely follow the calls. 3. Define exposure. Follow it and manage it closely. Portfolio : An Example Investment Positional Day Trade Exposure Trade 100% 0 0 100% 80% 20% 0 100% 80% 10% 10% 130% • Before going for a transaction ask this very basic question: What type of transaction this is? Decide Before Ordering • Investments • Positional Trade • Intra-day Investments • Few months to few years • Fundamental Factors • BUY & HOLD till the theme & under valuation persists • Let long term remain long term and do not book short term profits. Products • Inquire Research Reports • Updates, Visit & Result Notes • MOSt Value • Results Preview Positional • Overnight to few days • Technical Factors • May not be in Sync with Fundamental factors • Always make use of STOP-LOSS loss levels • Should not be converted into Long-term Investments- HFCL, GTL etc.. Positional • Market Diary • Awacs or Derivative Products Intra-day • Same day square-off • Technical Factors • May not be in Sync with Fundamental factors : Remember MAY 17th • Always make use of STOP-LOSS loss levels • Should not be converted to Positional or investments Product Grid Investors are advised by dedicated relationship managers through various advisory products Market Analysis Technical Analysis Regular Yearly Fundamental Research Inquire Company & Sector reports Quarterly Results Preview Monthly MOSt Momentum Daily MOSt Commodity Futures Weekly Guide Mutual Morning Calls Derivativ e Strategy Market Hours Market Information & Intraday Calls Market Dairy Pivot Points MOSt Market Action Wealth Creation report Budget Coverage India Strategy MOSt Value Weekly Thematic Research MOSt MOSt Morning Research Mathematics of Trading IntradayAssumptions • Success Ratio of not more than 60-65% • Reward –Risk Ratio of 2:1 • For an expected profit of Rs.2, you are accepting a risk of losing Re.1 Succes No. of Total Loss s times StopRatio loss(Re. 1) is hit No. of Profit times Earned (Re.2) is earned Net Position 40% 6 6*1=Rs.6 4 4*2=Rs.8 +Rs.2 50% 5 5*1=Rs.5 5 5*2=Rs.1 0 +Rs.5 60% 4 4*1=Rs.4 6 6*2=Rs.1 2 +Rs.8 70% 3 3*1=Rs.3 7 7*2=Rs.1 4 +Rs.11 If you know where you're going and why, you will Thank You