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What is the Summary of the Book “The Intelligent Investor”?
Must Read Book for Stock Market Beginners "The Intelligent Investor" is a fantastic book that every beginner shouldn't miss. It changes the perspective of the beginner from gambler to an investor. There are many things to learn from this book, the following are the points that I have learnt from theRead more
Must Read Book for Stock Market Beginners
“The Intelligent Investor” is a fantastic book that every beginner shouldn’t miss. It changes the perspective of the beginner from gambler to an investor.
There are many things to learn from this book, the following are the points that I have learnt from the book.
1. Risks and Returns:
We should understand that higher returns come with higher risks. Balance your investments based on your risk tolerance and financial goals. But don’t put your complete portfolio in risk.
2. The Defensive Investor vs. The Enterprising Investor:
The author clearly explained the difference between defensive investor and the eenterprising investor.
The defensive investor prefers a safer, more diversified approach, while the enterprising investor is willing to do more research and take calculated risks.
3. Market Fluctuations:
Market prices will always go up and down. Don’t be afraid of these fluctuations; instead, make use of them to your portfolio growth by buying when prices are low and selling when they’re high.
We should identify the stocks that are trading at lesser price than the actual value.
4. Emotional Discipline:
Emotional balance plays a vital role in stock market. Control your emotions while investing.
Don’t let fear or greed affect your decisions. Stick to your plan and stay disciplined. There is not even a single investor earned money from stock market without discipline.
5. Importance of Knowledge:
The author stresses the importance of educating yourself about investing. Understand what you’re investing in, and don’t blindly follow the crowd.
Conclusion: “The Intelligent Investor” encourages us to be patient, disciplined, and analytical investors who buy stocks wisely and think for the long term.
It’s about making informed choices to build and protect our wealth over time.
See lessWhat is Algo Trading and How Much Can I Earn Through it?
What is Algo Trading? Algo Trading is nothing but the execution of trades by a designed code. A computer generated code on your designed trading strategy to identify entry/exit levels for the purchase and selling of the shares. The codes are written in a programming language such as Python, C++. TheRead more
What is Algo Trading?
Algo Trading is nothing but the execution of trades by a designed code.
A computer generated code on your designed trading strategy to identify entry/exit levels for the purchase and selling of the shares. The codes are written in a programming language such as Python, C++. The automated trading provides results in an accurate manner.
After completion of trading strategy’s coding, you can get in contact with your broker to place the trade orders. The algorithm shall function as per the set trading logic for buying or selling the shares and the process continues until the exit point.
Algorithmic Trading Process:
The process of algorithmic logic exists in this manner:
You opt to buy ONGC ltd shares provided the share price is above the 220 day moving average of the stock. It means the trading strategy is built on the moving average strategy.
You can opt to sell the ONGC ltd share if the existing market price lies below the 220 day moving average of ONGC ltd, that means, it will exit the market.
Steps Involved in the Algorithmic Trading:
- The algorithm will collect the historical price data of ONGC ltd
- The machine code shall compute the 220 day moving average of ONGC ltd.
- If the last traded price is greater than the 220 day moving average, then you can buy the ONGC ltd shares. Otherwise, you will have to sell ONGC ltd shares and exit the market.
See lessHow Does IPO Allotment Process Work?
IPO Allotment Process Investors in the IPO can be retailers, qualified institutional buyers (QIBs) and they include pension funds, fund managers, investment banks, mutual funds, and insurance companies. These qualified institutions invest a huge volume of stocks in trading. Securities and Exchange BRead more
IPO Allotment Process
Investors in the IPO can be retailers, qualified institutional buyers (QIBs) and they include pension funds, fund managers, investment banks, mutual funds, and insurance companies. These qualified institutions invest a huge volume of stocks in trading.
Securities and Exchange Board of India, SEBI, is the capital market regulator that sets in the rules and regulations in the allotment of the shares @IPO.
Allotment of Shares @IPO:
On the day of closing of the IPO, if an issue is fully subscribed then every investor shall be allotted the number of shares mentioned in the IPO application.
Condition:
Any company that hosts an IPO must obtain a subscription of at least 90 percent of its listing. Else, IPO is disqualified and the subscriber gets their investment refunded irrespective of the underwriter’s assurance.
Over Subscription @IPO
Yes, if you find an oversubscription at the IPO then it means more number of applicants have applied for the share allotment.
In such circumstances, an applicant shall always be eager to understand the share allotment from the total number of shares applied at the IPO.
The SEBI regulatory authority states that each retail bidder must get at least one bid from the allotted retail individual quota.
The company defines a lot that mentions shares per lot in the IPO application form. You (retail investor) can apply in lots for the equity share offerings.
Limitation:
You shall receive a minimum of one lot size or more and never shares allotted in a lot defined by the issuer. The company makes an allotment of shares on a proportional
If the subscription is over subscribed then the decision in selecting the subscribers for the allotment of the shares is simple.
The company will divide the total number of shares by the selected lot and arrive at the total number of available lots for allotment.
The company then checks the ratio between the total number of retail individual investors and the total number of available lots.
When the ratio is not in the 1:1 proportion then the company picks at random the retail applicants to allot the shares as a result several applicants are dropped out due to non-availability of the lots.
Note:
A retail investor is entitled to purchase share-lot up to a value of INR 2.00lakhs. Likewise, non-institutional investors can dream of getting allotted shares worth above INR 2.00 lakh. They do involve NRIs, companies, trusts, etc.
A thumb-rule states, an IPO governs retail investors ( 35 percent), NIIs ( 15 percent), and for QIBs ( 50 percent) that includes anchor book.
How to Check IPO Allotment Status:
There are multiple websites to check an IPO allotment status like linkintime.co.in, bseindia.com, kfintech.com
You must select the company name, enter the PAN, or Application number, or DP ID/Client ID. Further, enter captcha, and then submit the status query form.
Note:
In case you are not allotted with shares then two sections shall remain unfilled, and they are securities, and adjusted amount.
In the later stage, the registrar of the IPO will send information in regard to the ‘share allotment’ through messages, and emails.
The registrar of IPO sends emails and messages informing applicants about the allotment status.
Non-allotment of Shares for You:
After the finalisation of the allotment, if you are not allotted with shares then your spent money shall be refunded through the ASBA account. Else, your money gets deducted from the subscribers account against the allotment of the shares.
How Early Can I Put the Allotted Shares to Trade?
The retailers get their shares into their account on the fifth day from the IPO closing date and then subsequently they can do trading in the secondary markets.
Tabular column: Allotment of Shares @Overlysubscripted IPO
Allotment Procedure for Oversubscription Shares:
A comparative study is conducted on the investments made by the investors before selecting for share allotments. The software tool arranges a list of applicants and shares allotment in a tabular form.
Consider an example that states ten investors have placed an IPO, at a price which the shares are issued to the investor also known as cut-off price.
Let us assume that these investors have placed their bid in the range of 1 to 5 shares.
If you have observed you can find ten investors having applied for 29 shares. But as per the oversubscription, the demand may limit the allotment to say 5. Then, the computer makes a random pick and allotts the shares to investors.
As per the information made available in the tabular column, the investors Investors (2), (3), (7), (8), and (9) have obtained eligibility through lottery.
The registrar conducts the entire selection process against the IPO application.
Note:
In such circumstances, the registrar considers to pick up only investors having enrolled for the upper price band.
See lessSuggest the Top 10 Stock Market Books for Beginners?
Best Books for Beginners in Stock Market If you are a Beginner in Options Trading, the following books help you a lot. From basic to the advanced level these are the best books that I can suggest for you. 1. Option Trader’s Hedge Fund by Dennis Chen & Mark Sebastain Published in 2012, the book,Read more
Best Books for Beginners in Stock Market
If you are a Beginner in Options Trading, the following books help you a lot. From basic to the advanced level these are the best books that I can suggest for you.
1. Option Trader’s Hedge Fund by Dennis Chen & Mark Sebastain
Published in 2012, the book, ‘Option Traders Hedge Fund’ is a perfect guide for establishing a short option investment portfolio. The authors give perfect examples that will enable investors to follow their footprints and obtain a steady income either by selling, or writing options.
The book is authored by two well read stock management professionals, Dennis A. Chen and Mark Sebastian both hold different portfolios and form splendid teaming yet. Dennis A.
Chen is a specialist in Hedge Fund Management and profound architect in generating income using index and equity options.
Mark Sebastian was a former member of Chicago Board Options Exchange, and American Stock Exchange. He holds several positions like chief operating officer of options pit mentoring and consulting firm that conducts an option education activities.
Chen & Sebastian’s ‘Option Trader Hedge Fund’ Contains:
The authors exercise option concepts for most critical conditions to obtain long-term success.
They advise income strategies based on selling and not through purchasing options.
The book provides an operation manual that supports the need of the option trading issues in the current context. In a manner, they provide an investor with real-time examples that help in setting up individual options business.
An extensive knowledge on options trading makes the authors provide crucial lessons on various aspects. They are in handling infrastructure, volatility and risk, discipline, payments etc.
Option Traders Earn Income from Hedge Funds: Chen & Sebastian
An investor can earn income from option trading on hedge funds provided one becomes conscious of the following information and applies every bit of it.
Trade options are like ‘ The One Man Insurance Company’ and individuals can apply the TOMIC model as its functioning is unique.
Investors must grasp the five essential components to profit high on option trading. These components are market selection, direction, timing, volatility and pricing.
Investors must maintain alertness when managing the market risks such as black swan risk.
Employ risk management tool that enables one to position sizing to fund diversification and utilization of units in particular.
Investors must involve in option trading business bearing in mind the cost control and execute efficient option trading plans.
2. Options Trading Crash Course by Frank Richmond:
Options Trading Crash Course by Frank Richmond is the best beginners guide to make money with trading options.
An interested individual, when participating in this crash course can master it in just 7 days or even less than as said by the author. The content material is custom made for the beginners and here a course participant can understand, and visualize the ropes and practice trading in a record time.
The book is exclusively meant for serious learners and the subject is dealt in-depth when compared to other contemporary books. This crash course is well customized to make even a newbie feel easy and comforting to grasp.
Although the book appears to be tough to a beginner with jargon, and calculations as a learner, one can break into the game by putting a little effort. However, the book shall cover various kinds of trading activities that can reap good money.
A beginner shall be exposed to strategies that shall enable to make profits on the investment’s capital. The course book will deliver stock market patterns that indicate directions to make big investments.
See lessWhat are the Must Read Books of Stock Market?
Best Books for Futures & Options The following are one of the best books for futures and options in India. 1. Fundamentals of Futures and Option Markets: John C Hull Traders enter into the commodity markets. Their primary products are related to the field of agriculture, mining, etc., such as whRead more
Best Books for Futures & Options
The following are one of the best books for futures and options in India.
1. Fundamentals of Futures and Option Markets: John C Hull
Traders enter into the commodity markets. Their primary products are related to the field of agriculture, mining, etc., such as wheat, rice, gold, platinum, and other minerals.
The process of trading is similar to the way an option futures trading is conducted on companies’ stocks.
Traders can make use of the book, “Fundamentals of Futures and Option Markets‘ written by John C Hull, a reliable source of information.
A trader from this book can understand the Options, Futures and Risk Management better.
Being directly associated with the investment banking firms, John C Hull, does provide the best advice to his readers in various critical issues related to the Futures and options markets.
One of the important components in estimating the future options in the stock markets is the time value of options.
Note:
He made a vivid description on swaps and derivative instruments and the interest rate futures.
‘Fundamentals of Futures and Option Markets’ Journeys from First to Ninth Edition:
Further, over time, from the first edition to the ninth edition, the book has transformed itself into a best learning guide to the undergraduate students and the traders at stock markets.
In his initial editions Way back in 1991, in initial editions, the author did make student friendly reviews. Hardly calculus was introduced in the subject of discussion just to avoid confusion to the non-mathematical background readers.
John C Hull produced numerical examples on real-life situations just to guide students who were preparing for their specific purposes.
The book is a confluence of theoretical and real time practical aspects of futures options trading and finds its place to be bible in the hands of practitioners.
Currently (2023), the ninth edition of the book is in print, it offers a vivid, easy to grasp introduction into financial mathematics.
2. Trading Options Greeks by Dan Passarelli
The book ‘Trading Options Greeks’ written by Dan Passarelli does cover option trading in detail and provides extensive knowledge about it.
In fact, the book serves as an essential source of input and is highly educational to professionally driven traders in the stock markets. Dan Passarelli discusses the parameters that are inclusive in option trading both in educational and practical perspective.
The entire book portrays the practical experience obtained over years as a professional trader to benefit the young trading aspirants and his counterparts. Any aspirant can obtain the principles adopted by the veteran trader on the option trading in this book.
According to him, the main elements that create an impact on the option trading are the direction, time, volatility, interest rates and the dividends often denoted by Greek alphabets.
The analytics are explained in a manner that helps the traders overcome the complexities of option trading, thereby avoiding a debt trap thus resulting in making good money.
The book ‘ Trading Options Greeks’ has been forwarded by William Brodsky, Chairman & CEO of the Chicago Board Options Exchange ( CBOE).
Trading Options Greeks Details:
Stock markets are highly volatile and option traders have to maintain a highly practical approach and Dan Pasarelli has explained with the greek terminology, delta, gamma, theta, vega, and rho and says it is the best technique for evaluating the option trading irrespective of the market conditions.
In the second edition release, a reader will find these tools such as delta, gamma, etc., applied to evaluate the option trading to obtain a deep insight of the stock markets.
These Greek techniques enable traders to determine an accurate pricing and these analytics can further help traders in exploring a wide range of opportunities.
Trading Options Greeks in Nutshell:
The second edition of the book (Trading Options Greeks) contains new material that covers examples with newer market conditions.
The updated second edition has the inclusion of advanced option trading and more information on spreads, trading volatility, put-call parity, and synthetic options.
The options trading analytics expose the best means to explore dynamics of option pricing and take the trading to the next level.
The readers will realize that to have long term options trading go high they must seek a comprehensive understanding of the greek techniques.
The book provides a better understanding of the Greeks and the effective management of the stocks at options trading to make higher profit margins.
See lessHow to Select Stocks for Swing Trading?
Select Stocks for Swing Trading Easily Stock Selection is the key to make profits in swing trading. When you choose swing trading in stock market, you need to make a better selection of stocks. At the ground level analysis, you should follow a systematic procedure that allows you to make a precise sRead more
Select Stocks for Swing Trading Easily
Stock Selection is the key to make profits in swing trading. When you choose swing trading in stock market, you need to make a better selection of stocks.
At the ground level analysis, you should follow a systematic procedure that allows you to make a precise selection of the stocks. It is like this,
When you complete the preparation of the stock list, you must have at least 25 stocks in record.
Exponential moving average, EMA, is very lucrative and if you entertain EMA, then they can be a set trap in your trading, hence try to setside.
Swing Trading Stocks: Thumb Rules
The experts give us a layout to judge a swing stock and below are the established thumb-rules before you make a selection of it.
Market Direction:
You must observe the market direction, if the stock price is on rise in the current scenario, and market volatility is in the right balance then you can opt to go for such a stock.
Another way to check for the best stocks in swing markets is to draw the corporate news, and monitor stock indexes.
Maintain Directional Approach:
You must see for option call, and option put trades and depending upon your objective, you should stick to buy or sell indications.
Utilise the technical research and identify the companies which give good results within the timeframe.
Keep a note of price volatility and the volume of a stock and based on which, you can screen a stock.
Stock Liquidity:
You can perform swing trading conveniently only when the stock is traded in larger volumes and moreover, high trading volumes represent a low risk in a trading scenario.
Performance:
Your purpose of checking the performance of stocks in a sector is to check for the stocks that have outperformed sector indices.
Follow Trading Pattern:
You can adopt the swing trades by following the trading patterns. You will have to wait until the stock breaks out of the trading range, enter it, and then make small profits by moving in the stock trend direction.
Clear uptrend:
As swing trading avoids high volatility stocks, you must focus on equities that produce little price variations leaving almost no gap in the price line.
See lessWhat are the Best YouTube Channels to Learn Options Trading in India?
PR Sundar YouTube Channel for Options Trading PR Sundar is a well-known stock market expert for 30 years, Mr. P R Sundar manages Mansun Consultancy Pvt. Ltd and also makes his presence in a Varthaga Ulagam Program hosted by the Sun News Channel. P.R. Sundar is a veteran in teaching and engaging workRead more
PR Sundar YouTube Channel for Options Trading
PR Sundar is a well-known stock market expert for 30 years, Mr. P R Sundar manages Mansun Consultancy Pvt. Ltd and also makes his presence in a Varthaga Ulagam Program hosted by the Sun News Channel.
P.R. Sundar is a veteran in teaching and engaging workshops on Options Trading and Hedging. These programs have a huge following, with 66 million views, and hold a subscription of 6.67 lakhs.
Currently, PR Sundar has 1.08 million subscribers and is an expert in options trading, and Market analysis.
P.R Sundar was in the SEBI scanner for quite some time and then SEBI ordered to make a penalty payment of INR 6.0 crore. SEBI took such a step when it found that Sundar and his team were providing advisory services without holding a formal registration for it.
Second, P.R. Sundar is alleged to have run numerous packages to provide investment advice through a website run by him. However, this did not affect his elearning courses.
Daily Market Analysis by PR Sundar
Recently, he has started pre-market and post-market analysis where he share the knowledge on predicting the market based on the technical and NEWS analysis.
Most of the intraday traders follow PR Sundar’s YouTube channel for daily market analysis.
A video on pre-market report is uploaded from Monday to Friday before 8:30 AM whereas the post-market video is uploaded after 5 PM.
See lessBest Youtube Channel For Stock Market in Hindi?
Siddharth Bhanushali: Siddharth Bhanushali is a trader, investor and entrepreneur who hosts YouTube channels to benefit about 1.03 million subscribers and for that he has uploaded 179 videos. He provides information on wide aspects in trading his youtube channel classes run for about 1 hour and theRead more
Siddharth Bhanushali:
Siddharth Bhanushali is a trader, investor and entrepreneur who hosts YouTube channels to benefit about 1.03 million subscribers and for that he has uploaded 179 videos.
He provides information on wide aspects in trading his youtube channel classes run for about 1 hour and the information on the undertaken topic makes sense.
He chooses topics like Intraday, Swing Trading, Technical Analysis, managing stress, and chart pattern, candlestick pattern, etc. He conducts the youtube sessions in English and Hindi too.
Siddharth Bhaushali has developed a deep understanding of stock market trends and nurtured sharp analytical skills. Through his presentations he helps investors in identifying business opportunities, and guides them to make the right decisions.
Over years, he has performed deep and extensive research on different strategies and theories. Siddharth’s ability to conduct critical analysis helped him in realizing long term growth and sustainability.
He makes the best use of cognitive skills in keeping his nerves calm during market fluctuations.
Siddharth has a well balanced mind, highly patient and employs the best risk management techniques to reach the best results.
See lessWhich is the Best YouTube Channel for Investment Education?
CA Rachana Ranade YouTube Channel: Rachana Ranade is a financial expert and a Chartered Accountant by profession. She enables investors, traders to boost their investing Knowledge through 3 levels of courses namely beginners, intermediate, and advanced. On completion of these levels you will have coRead more
CA Rachana Ranade YouTube Channel:
Rachana Ranade is a financial expert and a Chartered Accountant by profession. She enables investors, traders to boost their investing Knowledge through 3 levels of courses namely beginners, intermediate, and advanced.
On completion of these levels you will have completed 7 independent courses. Alongside, Rachana has a YouTube channel and she regularly updates useful information on mutual funds, technical analysis, futures and options, and art of value investing.
You will have to subscribe to the youtube channel and can obtain all videos uploaded till recent times. You can learn the stock market courses of beginners, intermediate, and advanced on Android, and iOS operating systems.
You can also join for free lectures on the website @ https://www.rachanaranade.com/store and after which you can continue to enrol for the complete course that lasts for 10 days. The basic course will be for 11 sessions.
You can find volumes of videos that give better inputs on stock investments and till date she has obtained 4.44 million subscriptions and uploaded 1000 videos on her Youtube channel. You can learn from her in hindi and marathi languages also
On her Youtube channel you can find a playlist created with interesting issues like economics of stocks, budget 2023, performing IPOs, and shorts. The shorts segment is exposed to subscribers only and not for free on Youtube.
Her course training classes are made available on the Youtube channel as well. You can visit the Youtube channel @CARachanaRanade
Rachana’s Passion for Stock Market:
After analyzing social communities, she understood that it is imperative to simplify stock market education and financial concepts as people lack knowledge on share markets. So, she took the objective of building financial discipline.
See lessWhat are the Best YouTube Channels to Learn Stock Market?
Asset Yogi YouTube Channel Asset yogi maintains a Youtube channel and the videos mostly cover the broader aspects of financial guidance. These videos cover money, investments, and business and the Asset Yogi financial info is spread over the youtube channel with a motive to improve the financial litRead more
Asset Yogi YouTube Channel
Asset yogi maintains a Youtube channel and the videos mostly cover the broader aspects of financial guidance.
These videos cover money, investments, and business and the Asset Yogi financial info is spread over the youtube channel with a motive to improve the financial literacy of a commoner.
You can gain knowledge on the financial tools that can benefit in stock market analysis.
Till date, Asset Yogi has attained 2.5 million subscribers and has held 125 million views. The channel provides guidance to beginners, corporates through Hindi lectures.
See less