HOW A BEGINNER CAN ENTER STOCK MARKET WORLD ??

Do u keep watching  Stock Market Apps more than Facebook, WhatsApp ??

If Yes, then Bingo Welcome to my arena 

either u r an investor or a trader...

-Minting money is the  hardcore thing our School n colleges never teach us;

I don't know Why ?? (Sarcasm...LOL)

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Let's come to Topic Now,
(Will keep this blog very short, crisp and precise)

See before u stuck ur money directly in the Financial market its good to have knowledge that what exactly u r doing...

"If u don't know what u r doing then believe me u r just gambling"

Their r 2 type of people in the stock market :

1-Investor

2-Trader

In short/layman language : 

>>An investor is a person who buys n hold stocks for a long time to generate wealth

>>, On the other hand, a Smart Trader is a person who can buy sell stocks depending upon the market trend

He never sticks with one stock or ego 

-Now the hot topic of today :

----------------------------------

"HOW A BEGINNER  CAN ENTER IN THIS WORLD OF STOCKS" ??

which we call the stock market

Let's start,

First of all see, as a novice we all need to learn ABCD since first the day we entered into school..

-Similarly to learn ABCD of Financial Market start with https://zerodha.com/varsity/

Once u complete this Zerodha varsity series (10 Amazing n worthy Books)

Now, If u are a Trader and wanna learn charting and technical analysis

Go with 2 Books which r more than sufficient:-

1-"Technical analysis of the financial market by John Murphy"

then 

2- "Reminiscences of a stock operator by Jesse Livermore"

Now coming to investors:

Investing style is still d same way as people used to do in past i.e. reading financials of a company properly or we can say a proper fundamental and management analysis

So, one can start with My All time favorite books : 

1- "The intelligent investor by Benjamin Graham" & then must complete 

2- "Security analysis by BG"

3- "Damodaran on valuation by Prof Aswath Damodaran"

4- "Valuation by Mc Kinsey"

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Now, the most important thing:

-Believe me, no one can teach u the art of investing and the game of trading unless u have dedication and passion respectively...

"Tradings is not like just read the book and bingo u r trader, lets mint millions

It is a series filled with emotions, risk management, observations etc etc

"Books can only give u a direction'

'At end, u have to play with this sword on ur own in the real arena'. (Live market)

Now signing off from here 

For any query, U can reach me via my twitter handle: https://twitter.com/SmartBullWealth

Will come up with new blogs soon

Till then
"Stay Raw'

"Think Hatke" !!

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Regards

Prince Chauhan

Founder: Smart Bulls Wealth

"Redefining the Edge of the market"

HOW TO USE DAILY FII F&O (PARTICIPANT DATA) TO GET A MARKET TREND VIEW

After spending alot time on youtube & Google  i hv found something interesting for u guys: 

FREE of Cost 😬

*How to get participants data*

(FII DII PRO CLIENTS) : https://youtu.be/1gGSnMS1weY

& *How to analyse the same* :

 1-https://youtu.be/h-iZQOvxq9M or

2- https://youtu.be/sMF6jEbu7pY

Dont say Thanks to me

Just spread this text, so dat everyone can get a clear view & vision towards market 👍

Regards

Prince Chauhan 

#Smart_Bulls_Wealth 🐃

#Nifty_50📈📊

GREED OF FAST MONEY MAKING BY OPTIONS TRADING

*Daily target hits*

*50/100/200/900% PROFITS* 🤩

(See attached screenshot) 

Thamo thamo (Hold on) 

⚠️ Beware

To all Guys out here, new into Trading 

-Options trading is not easy 
Huge profits are just like a lust  

Kindly don't run 🏃🏻‍♂️ 

to read books, watching videos, doing courses directly on options Trading ;

First, try ur trading skills/techniques/setup in cash segment & do backtest more n more !!

-Options trading involves the use of tools like options greek (Theta, Gama, Vega...); options chain etc. 

-Moreover options r d product used by smart money for hedging;

Naked buy-sell of options is a bit risky 

Don’t b lusty that options trading can give huge profits, 

u know what if options trading is not managed properly

 the outcome can be scary in very less time !!

Respect ur capital 

Judge ur risk appetite 

Trade accordingly ✌️!!

Regards

Prince Chauhan

#Trading #Risk_Management

#SmartBullsWealth 🐃

TRADE SETUP

Few Trading strategies every New Trader should b aware off: 

i.e: How to decide “BUY” or “SELL” ,for Next Day "Trade"!! 

Here r the Few Steps:

Steps:

1-Open NSE site 

2-Choose few liquid stocks !!

(Top Gainers,Top loosers,Top active etc etc.)

Now

Wait for 1st 15-20 minutes:

 *Strategy 1* : OPEN LOW/HIGH Strategy :

If open is equal to low 

Buy ✅

Keep sl :Below 1-2 points if day low !!

If open is eaual to high 

Sell ✅

Keep sl above 1-2 points day high 

Target: as per risk reward n ur risk appetite (if u don’t knw about charts/resistance support basically)

——————————————

*Strategy 2:* 

Past day strategy 

(To do after market hours) 

Open previous day data now & check: 

IF (CMP- LOW PRICE) > (HIGH PRICE -CMP) then"BUY" otherwise "SELL"

Now On Next Day,(Trade day):

If previous day high is broken n sustaining den buy ✅

SL below 1-2 points previous day high 

If previous day low is broken den sell ✅

SL above 1-2 points of dat previous day low

——————————————

Done

All set for Next Day Trade !!  ✅ 

Now,While Trading,Must Add few technical tools & Start only with Paper Trade !!

 (whatsoever suits u follow dat only) 

Like: 

1-SMA EMA CROSSOVERS or BOLLINGER BANDS

2-SUPERTREND

3-RSI

4-STOCHASTICS or WILLIAMS %R

5-MACD

6-VOLUMES ettc. etc for better trade ✌🏻

Will come up with more cool techniques!!

Till then 

#Stay_Raw

#Think_Hatke 

INVESTMENT TECHNIQUE

I am a layman , i wanna invest in Stock Market;

But Fed up from MaineBolaTha.com (Who post Analysis without Any Rationale/Logics)
 types analysts,

Now m confused How to Select stocks for investment purpose!!
What should i do??

-So here we go
Sharing One more investement Technique based on Piotroski Score Methodology :

What is it??
Basically Piotroski Score is defined set of rules to do value investing or to Find Financial Health of a Company  based on following Factors:
(Each Factor contains few points & each point consist 1 Score)

1:Profitability:
* Positive ROA in the current year (1 Score).
* Positive Operating CF in the C/Y(1 Score ).
* Higher ROA in the C/Y compared to the ROA in the P/Y (1 Score).
* Cash flow from operations are greater than ROA (1 Score )

2:Leverage, Liquidity and Source of Funds:
* Lower ratio of long term debt to equity in the C/Y compared value in the P/Y(1 Score ).
* Higher current ratio in C/Y compared to the P/Y (1 Score ).
* No new shares were issued in the last year (1 Score).

3:Operating Efficiency:
* A higher gross margin compared to the previous year (1 Score).
* A higher asset turnover ratio compared to the previous year (1 Score).

*(Above Data in respect of 3 Factors gathered from Investopedia)


I have analysed the above technique on various stocks month back  & Found that this Technique is very Awesome & Useful and hence added to my list of  Fundamental Analysis tools;

Now Qns is How to use Piotroski Score: -

Ans: U can use above Technique in following manner:
Just Add up the score if ur stock is qualifying the point !!
Stock scoring Score 7 is the Level which decide wether to invest or not !!

Alternatively, Open Screener.in
Use its Filter options<and Analysis part (Very simple)

Now If Score >7  then ucan look up to invest in that Stock/Share.

Few Examples of above Technique are: 
-Vedanta
-Weizman
-Vidhi Speciality
-Vamshi rubber
-Titan Securities Etc.

Disclaimer: This is just one of the tool, to be used prima facie prior investing,
Plz do a in-depth research prior investing !!

Feel free to ask queries on same @ https://twitter.com/princu_23
will come up with more analysis & Techniques again;

Till then;
#Stay_Raw 🤞🏻
#Think_Hatke ✍️

FUNDA OF STT ON OPTIONS TRADING

##WHY STT IS HIGHER ON EXPIRY,WHILE DEALING IN OPTIONS!!

Why should I  pay such higher STT even after getting good profits ?? 

Hi Readers :Hope u r much aware now about options Trading,but after getting news on high STT on option many of u are afraid to trade/invest in options,Dont worry just be active while dealing in options...

Let's understand the mechanism of STT on Options:

Suppose on 13th July u have 10,100 Nifty CE:9 call and u holding it till 27th July i.e till Expiry(Last Thursday of Month) 
& on that Expiry date Spot Nifty(Current Rate of Nifty) reached 10,200 &
getting Markets on new high.

In this situation your CE of 9 will increase and reaches (say) to 27Rs.
Bingo u r in 200% profit!!

i.e (27-9)= 18*75= 666Rs. ...

but as u r in ITM(refer previous post for ITM/OTM meaning) and on Expiry here,

u will be charged STT on ur contract value instead of CE prevailing at time of Selling(If u will not square off this ITM position before closing of market i.e. 3:30 P.M) 
...What What What...Come Again!!!

Relax,lets see CALCULATIONS for further Clarity:

Scenario:1:In case of OTM:(Normal Case)

Option Exercised on time:
 STT will be on CE on Sell Side only i.e

=[CE/PE*Lot size*STT Rate]=[ 27*75*.05% ]= 1Rs. Only (Quite low)

Now come to blunder Scenario
Scenario:2:
i.e In CASE of ITM:

On Expiry day,

 STT (will be on Contract Value) =[(Strike+CE/PE) *Lot size*STT Rate]

= [(10,200+27) * 75*.05% ]= 382.83Rs. (OMG) half of my profit ,m gonna pay in STT...

I know this situation is bullshit,but we can't do anything as its a Government Regulation...

Q:Then what to do to avoid such situation??
Ans:Beware & little Active while dealing in options & keep following Points in mind:

#On expiry Don't get in trap of Cheap Options having very low CE/PE say in paisa's 

(trading below than its theoretical value).As it will lead to Higher STT on Expiry

#If you have bought options and they are Expiring ITM , then Sell It Rather than let them expire on their own.(i.e Square of before 3:30 PM on expiry day)

#If the options are expiring in loss i.e (with 0 value), don’t sell it to just to save penny of STT as there is NO STT when ur Options i.e CE/PE becomes ZERO in value and u r in loss of 100%.

Hope it's clear now how STT on Options Works  !!

Will come up with New Discussions Soon !!

Till den

#Stay_Raw

#Think_Hatke

MIND BOBLING ITM/OTM TERMS IN OPTIONS TRADING

What is ITM/OTM IN OPTIONS TRADING: 

After getting this guy's

 (https://twitter.com/Aftabkhan918?s=09)

Twitter's news many people r in fear dat 

Wether options consist that much taxes in form of STT?? 

Let's understand what is ITM/OTM(in the money/out of the money) 

Case:1:If Nifty is presently at 9891, then 9800 Call is called ITM

 (B'coz if the option expires now, there will be an intrinsic value i.e. 9891 less 9800= 91), means Positive Cash Flow.

Case:2: 10,100 call is called out of the money because it has no intrinsic value.(9891-10,100) i.e -209 means out of cash or negative cash flow.

Similalry, PUTS r just opposite 

10,100 puts is ITM,  and 9800 puts is OTM

And ATM is a position where STRIKE = CMP

Hence it's preferable to square off ITM Position timely,rather let them expire on Expiry day!!

Else STT will be higher !!

Hope query resolved !!

Will come up with New Discussions soon
Till den!!

#Stay_Raw 
#Think_Hatke 

A, B, C OF OPTIONS TRADING

#Now the Most awaited query asked by Many;

What are options? What is CE/PE ?

And How these work? 

(Boss yeh hai kya?)

So here we are,  

With our urge to know The OPTIONS-- 
From 30/40/50% to 10,000% (Unlimited) profit !!

!!Greed the options Greed!!

Everyone is amazed,how this wonder of unlimited profits happens in Trading.

(#Must Read Example below)

Let's come n understand 

Starting from;

Options Meaning: 

Options (namely Calls and Puts) are derivative contracts- that provides us  the Right,but not the obligation to Buy or Sell the underlying Asset (Eg:Nifty Index Option) on or before a particular date.

As compared to other derivative Contracts, say: FUTURES,

OPTIONS are less risky​, as u know the MAXIMUM​ LOSS that could happen to u within this option trade is only upto the Option Premium so paid.

With Options Different set of Strategies/ Combinations are possible. For instance: Straddle, Strangle, Butterfly etc.

Easiest of them are Buy CE or Buy PE .

(CE: denotes Call Buyer Option while PE: denotes Put Buyer Option)

During CE position,  we expect that such underlying Asset (Eg:Nifty Index Contract here) will rise, while in PE we expect them to fall.

Moreover,These Options can be traded in Form of Index or Stock Options. 

Lets take an Example of Today's Trade itself to understand Options further,

12th July 2017: 10,100 NIFTY INDEX/ BUY CE:9Rs./ JULY EXPIRY:

Spot price of NIFTY: 9891; Strike Price=10100; Expiry Date: 27th July;

 Bought Option Premium(CE) Price: 9; Lot Size: 75...

The question that rises here is; Why 10,100 Strike price has been selected ;

Because , As of Now we are expecting the market to be further bullish and Nifty Spot Price to go beyond 10,000-10,100 till July Expiry!!

and hence bought call option of NIFTY of 10,100 Strike.

Now to get in profit, Our CE should rise on or before Expiry,and if so happen we will Square off ( exercise ) the contract

 i.e we will SELL Options,so bought, as the price of CE/PE is higher than my Buying Price.

Now Suppose,

Case:1:

 Nifty Spot Price cross 10,000 due to which our option call of Strike price 10,100  also start rising,

say our CE of 9 Rs. reaches to 27 Rs. on or before Expiry date, 

you'll relish a 200% return here.

But How ??

What to do next ?

How to book Such Profits?

We just need to  just sell the option at price prevailing in market i.e Rs.27, ( similar to the way we sell Shares( equity) of a Company) 

Now the Calculations will be performed like this:

Amount needed to Invest = Option premium price * lot size

= 9 * 75 = 675 Rs.

When you square off ur position,

Profit will be 

= (Sold Option Premium Price - Bought Option Premium Price) * Lot Size

= (27 - 9) * 75

= (18) * 75

= 1350 Rupees, i.e 200% Profit

Case:2:

Vice versa ,if NIFTY SPOT PRICE will fall below Expected levels say, if it go below 9800 then our option premium(CE) of 10,100 Strike will also go down,Max upto 0,in that situation too u will  only suffer loss maximum upto 675 Rs. i.e option premium (CE/PE) paid Earlier}

That's it !!

U too now can trade in Options!! 

#Notes:

Note: 1: Brokerage and taxes are extra and haven't been included in above example,they vary from broker to broker,Contact ur broker for Same.

Note: 2: You can square off the options on or before the expiry date at any point of time.

Note: 3: Lot size varies from Stock to Stock and index to index,Say for Nifty its 75,while for bank nifty its 40,and for stocks its different)

#Disclaimer: Options are highly Risky and involves analysis using many factors/tools, like:OI(Open Interest),Time,Volatility,Beta,Delta,Gama,Theta,Vega,RHO.

Hence,Book ur Profits as per ur Greed & Risk bearing Capacity!!

Hope this little effort would help you in learning Options !!

Will come up with new article soon

Till then;

#Stay_Raw

#Think_Hatke 

BITCOIN

Here's my first article on BITCOIN: 😇
Precise !! Simple !! Easy !!
Hope u will enjoy this ride🤘🏽

(Disclosure: Few data is gathered from google) 

♐️Bitcoin sounds like gold coin but it's not!!
While gold n silver which get value due to it's precious metal point!!
Bitcoin lacks price stability;
Mathematical formula's r behind it.
There's  no central authority dat can control the price of d digital currency over a long period of time

Dey derive value from outside world like gold hv high valuable due to it's high demand!!
They have there own protocols and community with no intrinsic value!!
♨️These dayz,Bitcoin used in censorship resistant payments over the Internet,means dey can't be stopped in the same way dat gold and silver were stopped by various governments around the world.
Also;n due to same reason  r unlikely to go to zero value.

As long as there is a need for these kinds of payments, bitcoins will have some form of value.
Now as far as Security is concerned;
U know wot;⚠️bitcoin copied transaction Can't b succeed even;
One word it's So trustworthy.
This aspect of Bitcoin is critical since it means dat Bitcoin’s continued usage is not subject to any external authority’s approval, opinion or action!!

Let's take a simple example ;
Suppose  u copied a bitcoin & made a payment to me,By dat fake coin!
Now point here is dat bitcoin can be copied many times,,but it can only ever be spent once.
This design feature can be verified by making a copy of an existing Bitcoin wallet to another 💻 computer.
The same bitcoins will exist in 2 physical locations, but only the first i.e original one (dat u gonna spend somewhere else) spend transaction will succeed.
The network will recognize a second attempt dat u paid to me to spend the same bitcoins as a double-spend and reject it. 💢

Bitcoin r interesting in terms of high returns n gv feel like a Cakewalk 😛!
 But I Personally believe investing in bitcoin is not a good decision as it's not legal in india yet!!
So Beware:
There's a possibility of hard fork & will result in high volatility,which may lead to
Bitcoin temporarily be parked in other cryptocurrencies like ETH or even cashed out. Risk takers can continue to enjoy the ride!! 😁

Better to Wait for the era of BLOCKCHAIN !! 🤘🏽
Will share next article on Blockchain soon...

Til then 😇
#Stay_Raw
#Think_Hatke