There are a lot of trading strategies available in the market. The trader should choose the strategy, which has a high win rate and low losing rate. Also, the trading should involve minimum losses and maximum profits. One such strategy for intraday trading is the first hour trading strategy. In the first hour trading strategy, the market after the first hour of start, is watched. For example, we want to trade in a Scrip xyz. Then the movement of the stock xyz in the first hour is watched. After the first hour, the high of price and low of price in the first hour is marked. When the price crosses the first hour high, a buy trade is placed. If the price crosses the low of the first hour, a sell trade is placed. That is, the stock is shorted at the low of the first hour and longed at the high of the first hour.
The biggest advantage of option trading is that you can gain significantly by trading in the option contracts while investing relatively less money. For example you are targeting to buy 1000 stocks of a company. If you buy the stocks in cash segment you have to pay the full price of the stock, i.e. 1000 x current price of the stock, whereas, if you buy 1000 stocks in the option exchange, you need to buy only 10 option contracts. That means you are paying only 10% of what you had to pay in the cash segment. This is one distinctive advantage as you are getting huge number of stocks buy investing significantly less amount of money.
Proper stop-loss should be placed with the buy and sell trades. The stop loss helps to restrict the loss, when the market goes in the opposite direction than expected. The stop loss of 0.5 percent to 1 percent can be placed for effective trading. Along with regular stop-loss, more advanced trailing stop-loss can also be used. In trailing stop-loss the levels of stop-loss are trailed with the price movement to lock the profits. Trailing Stop Loss is a very good strategy, which can be followed to maximize the returns.
The trader can follow a good strategy, like mentioned above or can also trade on the basis of advisory firm’s advice. The advisory firms like ProfitAim Research have expert technical analysts, who after the detailed fundamental and technical analysis generate stock option tips. Along with the option segment, the cash and futures segment are also catered. Also at ProfitAim, the calls are provided with proper stop loss, so that the losses can be minimized.
The following services by an Investment Consultant can help you to enjoy a hassle free investment experience and guide you to achieve maximum benefits during entire process:
1. Advice on Tax implications both in India and abroad
2. Filing your returns in India
3. Guidance on Double Taxation Avoidance Agreement
4. Advice on Bank Accounts
5. Advice on FEMA
Various areas of concern arise when an NRI decides to return to the country. NRI’s need guidance and planning before returning to the country. S/he must be guided by the Foreign Exchange Management Act and the Income Tax Act. Listed below are few hiccups that must be addressed before an NRI returns to India:
1) Planning the date of return to enjoy minimum tax liability for that financial year.
2) Possessing and operating NRI bank accounts upon your return and tax implications thereon.
� For NRO account, it must be re-designated to Resident Account
� For NRE account, it must be transferred to RFC account or re-designated to Resident account
� FCNR account, it must be held upto maturity, then converted either to RFC account or to rupee account
� RFC account,It can opened and maintained with authorized dealers on becoming residents. The funds are fully repatriable and denominated in Forex. The funds can be remitted in a foreign country for a genuine purpose by account holder or dependents.
You people might not be aware of this unusual term, so let me tell you about this. It is a basic practice which uses the accounts of reputable companies whose creditworthiness is really good and the companies which can be trusted for a loan purpose. The finance company is usually responsible for financing the unpaid amount owed by reputable companies to their vendors. The finance companies provide the small business vendors with the amount whatsoever they need and the amount of money is generally less than the number of outstanding receivables. The amount given by the Finance Companies is generally 80% of the amount of that invoice which is retaining the period of fewer than 90 days.
I hope you have understood the term Invoice discounting with the above example. Let us see some of the basic benefits of Invoice discounting –
1) It is very helpful to speed up the processes of cash movements in the company. You can raise cash whenever you need. And all you need is your reputable company and its very powerful creditworthiness.
2) The second major benefit of this discounting is that you don’t have to wait so long for the clients to give you the payment within their credit terms. You can receive cash instantly then and there when you issue an invoice.
3) This is most important whenever you need working capital for your day to day business expenses. The invoice discounting mechanism allows you to be given a limit, very much like an overdraft, or a cash credit facility, allowing you to draw down using your invoices up to the amount specified in the limit.
4) You only pay for the finance as and when you use the invoice discounting limit. It is not like a working capital loan of a term loan, which requires you to pay EMIs every month on the amount lent, regardless of whether you are using the funds or not.
5) Your need of instant cash is covered by Invoice discounting companies which help you to receive instant cash.
Margin Trading is the best alternative for Stock cash trading in which investors use margin account to trade in various markets. This kind of trading based on the total assets held by the investor, and his or her general credit worthiness. This approach allows investors to make use of margin trading to acquire securities without making immediate use of all available cash reserves.
In stock cash trading trader required to give the full price of the stocks that they are buying, however it may appear unfeasible at times, but it certainly control one investor from going further away than the limit. As investor cannot spend more than what their financial condition permits, they can control the loss efficiently even though the prices descend.
The best part of cash segment trading is that there is no time limit for buying or selling the stocks, traders can hold the stocks as much as they want to get best return.
Traders usually looking for intraday trading tips, to get maximum return from minimum investment, so this might be possible only if they subscribe to the services of ProfitAim. We endeavour to put all our best resources to good research work to provide Stock Cash Tips or equity cash tips with all the fundamentals and technical associated with it. That is the reason, why we are called as the best research advisory in the stock market.
The index based method is related to the diversification of the portfolio of trader. The trader can invest in different sectors so that there is a mix of movement in case of downfall of a particular sector. This method has been found effective in making moderate profits.
Always be ready for your adventures.
Adventures includes both risk and rejoice.
ProfitAim one of the reputed stock advisory firm which is both SEBI registered (Registration No INA000004757) as well as ISO certified since 5 years. We have a team of experienced and knowledgeable technical analysts as well as fundamental analysts, who on the basis of their in-depth technical analysis provide accurate calls related to equity market as well as commodity markets
There are three important forms of stock trading namely, Intraday Trading, short term trading and Long Term trading. In Intraday trading, the stocks are bought and sold in the same day. In case of short term trading the stocks are bought and kept for short term period. This short term period can be few weeks to few months. In case of long term trading, the stocks are bought and kept for long term. Here the long term indicates a period more than 1 year. The investors can keep the stocks for 3 to 5 years and can sell them for profit.
Some of the essential tips while trading in stock market are:
1)One should always try to follow a good strategy, rather than trading randomly.
2)One should always back-test the strategy which he/she is following
3)One should always paper-trade before starting the actual trading.
4)One should try to deal in high volume stocks.
Nowadays, Share market is in a trend to earn huge profits and number of its users is ever increasing day by day. In this market, anything can happen which might cause stocks to gap against you at the open. There are so many research companies who offer quality information about various aspects of Indian Stock Market. This information may be used by any interested traders who genuinely want to know more about shares and stocks for earning profits in this volatile market.
Investor’s expectations of returns from the stocks need to be rationalized, because over-expectation always proved as dangerous for us. Investors should regulate their expectations according to the market’s volatility.
After years of experience, we believe in �follow the trend and fundamentals� theory. This theory indicates that trading the direction in which the stocks are headed and also have strong fundamentals news.
If investors want to reap huge gains from equity trading, then they must look for best stock recommendations on which they can invest. ProfitAim is always focusing on balancing the client’s expectations and market trends and try to grab the best possible opportunity for quick gains.