The Zerodha Varsity!

Varsity is an education initiative by Zerodha for its clients and all others free of cost.

First thing to keep in mind that Zerodha entered the stock market with an innovative discount broking model in 2010. They are a technology based start up who redefined the broking business in India.

What do they differ from the existing brokers in the market ?

They reduced the number of services that a full service broker provides except the basic ones, trading & investing in stock market. They now have Pi and Kite for trading and investing and Coin for investing in MFs.
They lowered the brokerage to an unbelievable point, zero brokerage for delivery and 0.01% or upto Rs 20/-per executed order for intraday trading.
They encourage self trading. They don't have numerous offices with all infrastructural set up for their clients. Rather they have user friendly platforms with advanced features in the form of apps for mobiles.
They donot provide tips for trading and investing. Rather they take care for education of their clients so that a client know ins and outs of investing in stock market.

They introduced (Uni)Varsity which is a package of in depth knowledge of stock market broken into modules on various topics ranging from introductory knowledge to technical analysis, fundamental analysis, Trading Psychology, Risk Management, etc. Besides, they have interactive QnA session with experts to clear doubts at the end of every segment.

So, this is undoubtedly a good platform and very useful to gain knowledge and confidence before investing in stock market.

To open an 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...

#7 Tips for starting out in the world of investing

Here are my #7 tips for anyone starting out in the world of investing. Stay away from intraday trading. It is gambling and you will lose all your money. Not a single person became rich by day trading. Never invest borrowed money. Only invest that extra money left after spending on your daily basic needs. So that even if you loose the money then it will not effect your normal life. Don’t put all your eggs in one basket. Diversify your portfolio by investing in different sector stocks. Buy when everyone is selling. The best time for investing in a fundamentally strong stock is in bear market. Follow strategy of buy on every dip. Invest small small amount on every 5-10% fall. Don’t check price of stock daily. Because that will create panic situation. If the stock in fundamentally strong then no need to worry. Don’t invest blindly in the stocks recommended by others. Do your own research and invest only when you are satisfied. Keep patience, understand the power of compoundin...

Finskool

Search This Blog