Posts

Penny stocks, How to choose shares for Investment ?

Image
Penny stocks Penny stocks have been very popular among investors ever since the bull market began in 2020.The retail crowd, especially, has taken a liking to these stocks. And the reason is not hard to find. Penny stocks offer the chance to make quick profits in a short time. `Of course, these stocks are high risk. But retail investors seem to be fine with that. If the profits keep flowing in, they don't mind taking the risk. But there is a problem with this kind of investing. It's not really investing. Most investors are just punting on penny stocks. They're hoping the penny stock they bought goes up in price quickly. They're not concerned about anything else...like fundamentals. Now this would be fine as pure speculation and nothing else. But many retail investors think they are really investing and not speculating in these stocks. And that's dangerous. Penny stocks are famous for going down just as fast as they go up...if not faster. In a market crash, or God fo

How to start your journey in the share market?

Image
The first thing to do is to learn what is a share ? and how does it work?. L earning what is a share is the easy part but figuring out how it works is the tough part where many do not understand that it is a business not betting. You need to understand that every business has its good days and bad days likewise you need to figure out how to gain more during good days and how to lose less during bad days this is the key principle you need to follow to be successful. The major requirements to start trading in share market are Bank account(to transfer money from to share market) Kyc documents (to open Demat cum trading account) Demat account(to hold your shares) Trading account(to buy and sell) Next is what type of style you want to follow in share market. There are mainly 3 types Investing Day Trading Speculating             These 3 styles follow different risk appetites depending on your wrist appetite you can choose any of the 3 styles and also These 3 styles ha

Beginners guide to Share market Series : chapter 1

Image
Beginners guide to Share market Series: chapter 1   Introduction What is a share? In general, a share is a part of ownership divided among several people . when it comes to share of a company the total worth of the company is divided into parts and distributed among its partners, mostly the majority shareholders have the decision-making rights. Example if a company is worth ₹ 1,00,000 and there are 4 shareholders   Let us consider The shareholders as A B C D   consider A has 60% of the shares = ₹ 60,000 B has 10% of the shares                    = ₹ 10,000 C has 5% of the shares                       = ₹ 5000 D has 25% of the shares                    = ₹ 25,000   here A has majority shares so he will be the decision making partner       What is share market? Share market is a place where shares are bought and sold, now in the digital age everything is done through computer end servers Eliminating the need to visit the market physically or

Nifty 50

Image
What is Nifty 50 ? M ost people who are new to share market or watch news have wondered what is Nifty 50 ? , what does it represent? and what is the basis of its calculation?.  Nifty is the name derived from N (National Stock Exchange) and ifty (Fifty stocks in the index). An Index is a list of stocks  grouped to form a particular Index like Nifty 50 (group of 50 stocks)which represents the performance of the Share market which in turn represents the strength of the Economy of a country.  In most cases it serves as a benchmark for investment , Economic growth,  stability and ease of business in a country. The NIFTY 50 is owned and managed by NSE Indices Limited (formerly known as India Index Services & Products Limited-IISL), India’s first specialized company focused on an index as a core product. Now coming to Nifty 50 it has a group of 50 stocks whose price is calculated using the free-float market capitalization weighted method wherein the level of the Index reflects the total m