NSE PAATHSHAALA -- पाठशाला

Those who are interested to learn trading without using a single pai, can use this link from national stock exchange - http://www.nseindia.com/NP/nse_paathshaala.htm

Here after registering each user account shall be provided Rs. 5,00,000 as virtual cash, i.e. paper money. Instead of using real money u can use this money for trading / investing and u can analyze your own results.

Here is link for help page for "HOW TO TRADE" http://www.nseindia.com/NP/how_to_trade_paathshaala1.1.pdf

Here u can get information regarding what is meant by market order, limit order? And various other terminology also can learn to put orders on your own via internet. So start learning.

HAPPY LEARNING!

RIDING THE EQUITY WAVE

Nice article from moneyworks4me.com about why it is necessary to invest in stock(equity) market. HERE IS LINK http://stockshastra.moneyworks4me.com/learn/why-invest-in-stocks-equity-wav/?utm_source=MadMimi&utm_medium=email&utm_content=Volatility+grips+the+market%3B+Why+you+still+need+to+invest+in+Equities%3F&utm_campaign=14+October+blog&utm_term=Click+to+read+the+post

 HAVE U NOTED NAME OF WEBSITE www.moneyworks4me.com isn't it interesting? Have u ever thought how hard u are working to earn money and was your money also working hard for u? Just give a thought.

DISCLAIMER: This Blog is meant for sharing my trading ideas only and no calls to be taken as trading recommendation. Visitors please do your own research or consult your advisers for safe trading.

SHORT/ MEDIUM/ LONG TERM INVESTMENT

All of you must have heard about short term, medium term and long term investment. But have u ever thought what is really meant by short/medium/long term and how it affects your decision regarding choosing the investment vehicle? Let’s try to find the answers.

FROM THE TRADERS PERSPECTIVE -----holding period for different time frames is as follows

SHORT TERM --- from few minutes to few hours, for this purpose he analyzes 5min or 15 min time frame charts technically.

MEDIUM TERM --- from few hours to few days, for this purpose he analyzes hourly / daily chart.

LONG TERM --- from few days to few weeks, for this he analyzes daily/ weekly chart.

Most of the traders don’t consider fundamental analysis but they rely on technical analysis.

FROM THE INVESTOR PERSPECTIVE ----- here there is lot of variation regarding holding period for different time frames in general public as well as experts. I personally follow following holding period for different time frames

SHORT TERM --- up to 3 years.

MEDIUM TERM --- 3 to 7 years.

LONG TERM --- more than 7 years.

The main reason for which we invest is to meet our future goals, which could be either short, medium, or long term in nature. You can able to decide in which product you  will invest if you can able to take decision regarding for how much period you are going to invest.

SHORT TERM objectives are usually met through debt assets, which are less volatile, as one cannot take risk with short term capital. Assets like fixed deposit, recurring deposit, P.P.F., MUTUAL FUNDS LIKE fixed maturity plans, short term debt funds, liquid funds are used for short term investment.

MEDIUM TERM objectives are usually met through combination of debt and equity assets.

LONG TERM objectives such as kid’s education and their marriage ( of course if you start your investment/ financial planning in early age then only this will become long term goal !!! ), and for retirement I think equities is the ideal asset class. This can be done by direct stock investment or equity mutual funds.

               Historical data shows that equities provide the highest returns among all asset class after adjusting for inflation. The investment risk associated with volatility may be higher in initial period it smoothens out over long term.

              Past studies have reported that returns from equity over long term have been in the range of 12-15% annualized. In fact, if you look at the most recent data (as on 31 march 2011), the BSE SENSEX has generated a compounded annualized return of 17.6% over the last 10 years. Let’s look the returns of  some of the diversified equity mutual funds over the last 10 years which I suggested here --- http://kolhapuritrader.blogspot.com/2011/04/best-equity-diversified-mutual-funds.html

1)      FRANKLIN INDIA PRIMA PLUS – 27.95%

2)      FRANKLIN INDIA BLUECHIP – 26.88%

3)      HDFC TOP 200 – 31.65%

4)      HDFC EQUITY – 32.92

5)      ICICI PRUDENTIAL TOP 100 – 22.94%

This is one method to decide in which asset class to invest, the other method is according to ASSET ALLOCATION will post regarding asset allocation later.

200 SMA

As shown in the following chart will 200 sma will become rock solid support? We have to wait and watch to find the answer.

TO SEE ENLARGED VIEW CLICK ON CHART.

DEATH CROSS OF NIFTY

Nifty chart is showing death cross in last month, whenever time permits  will post about what is meant by death cross, golden cross and what r its implications, will b explained by proper charts.

If possible will try to explain how market changes its mood in same post!

Right now nifty is consolidating in the range of 5700-5950, so there must b people on bullish as well as bearish side. Long term investors can hold there holdings with proper stop loss while short term traders can trade the above mentioned range untill there is clear breakout or breakdown.

BEST EQUITY DIVERSIFIED MUTUAL FUNDS

This is short list of best equity diversified mutual funds on long term scale. These are large cap oriented funds. Most of the time these mutual funds have bitten benchmark in bull as well as bear market. That means they have given more return in bull market and fallen less in bear market. BUT ALWAYS REMEMBER PAST PERFORMANCE IS NOT GUARANTEE OF FUTURE PERFORMANCE.

SO HERE IS THE LIST----

1)      FRANKLIN INDIA PRIMA PLUS

2)      FRANKLIN INDIA BLUECHIP

3)      DSP BLACKROCK TOP100 EQUITY

4)      HDFC TOP 200

5)      HDFC EQUITY

6)      BIRLA SUNLIFE FRONTLINE EQUITY

7)      ICICI PRUDENTIAL DYNAMIC

8)      ICICI PRUDENTIAL TOP 100

Remember this list does not end here, there are also other good funds, you can get very good information regarding mutual funds if you follow www.valueresearchonline.com regularly this site is dedicated to education of retail investors.

 IF YOU ARE INVESTING IN STOCKS DIRECTLY OR VIA MUTUAL FUND ALWAYS REMEMBER S.I.P.!!!

INFORMATIVE POSTS

From today onwards whenever possible and time permits will try to post informative post related to capital (stock) market, financial planning, asset allocation, insurance, mutual funds, fundamental/ technical analysis. So requesting u to let us know ur interest of topic, queries at our email kolhapuritrader@yahoo.in