IS STOCK MARKET A CASINO ??

This is definitely the most important thing one wants to know the day they listen to the term, stock markets. For most of the people, it is like a casino, where people come to lose money and go broke.

THIS IS NOT THE TRUTH. IN FACT THIS IS TOTAL BULLSHIT.

Yes, most people blow up their account and go bankrupt but it all happens not because stock market is a casino but because people don't have the required skills, knowledge, understanding and strategies to play this game of stock markets.

Imagine the day when you came to know about the game called "CRICKET" and the same day you decided that you will face Brett Lee straight away. You can expect what probably will happen! Right?

IT IS NEVER YOUR BROKER FAULT

People do the same thing in stock markets, the come to know about stock markets from someone and they think they have found a gold mine. Rather than spending time about learning what actually is a stock market people tend to play the game, without even knowing the basic rules.

And then people rue stock market is a bad place to be. In fact stock market is a great place to be in if you are willing to put time and learn and then apply techniques which you will learn by making mistakes.

So, here we will start learning from scratch about stock markets, using better platforms, techniques and making money.

Have a great day!

To open a Demat & Trading account and start investing, visit Zerodha.

Understanding The Market Cycles!

Even though most of us know that the stock market follows cycles, there is still a lot of mystery why one is unable to spot it. It is important that one has to understand this market dynamics to be able to benefit from it. The length of each cycle is different- Every market cycle is of a different length. Sometimes the cycle could last only for a year and other times for decades. Valuations are not constant- Valuation or the price to earnings ratio keeps changing and they differ from one cycle to other. So what may be expensive in this cycle may not be expensive in the next. There is thus no set value when you know that if say the P/E is 50 then the market is overvalued or when P/E is 10 then the market is undervalued There could be one cycle within another- The stock market cycle is defined in a set But it can happen that there is a cycle within a cycle. The individual sectors could have their own cycles and small cycles would affect different stocks etc. These actually ge...

Understanding Credit Default Swaps!

In just over a decade, the credit default swap (CDS) emerged on the scene, grew exponentially, found fame and fortune, and then crashed to the depths of public opinion — to the point that it is today blamed for the current financial crisis. The tarnished CDS is even accused as “the monster that ate Wall Street”. It was created to cover asset losses if a default happened, similar to taking out home insurance to protect against losses from fire and theft. Except that it did not. The CDS was traded from investor to investor with no oversight, ensuring that the “insurer” had the ability to cover the losses if the asset defaulted. However, recently, the Malaysian Rating Corp Bhd indicated that CDS should be introduced in the local financial market to spur bond trading. With the CDS being in an infant stage in Malaysia, this could be a sound move, as we may be able to avoid the pitfalls encountered by the early adopters and trade it as an enhanced and rehabilitated product. In doing s...

What is the Nicolas Darvas Trading System?

Nicolas Darvas (1920–1977) was a dancer, self-taught investor and author. He is best known for his book, “How I Made $2,000,000 in the Stock Market.” Trend following trader? You bet. From Time Magazine Monday, May. 25, 1959: Nicolas Darvas in Time Magazine Monevman Darvas’ methods would raise the eyebrows of most Wall Streeters. Instead of studying what Wall Street calls the fundamentals—price-earning ratios and dividends—he judges public enthusiasm, a method that works best in volatile markets. “In my dancing I know how to judge an audience,” he says. “It is instinctive. The same way with the stock market. You have to find out what the public wants and go along with it. You can’t fight the tape, or the public.” More: Darvas’ system is tailored to his job. Since he has to do trading from wherever he is dancing (he recently completed an Asian tour) he ignores tips, financial stories and brokers’ letters, has never been in a broker’s office. Basically, his approach is that ...

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