STOCK MARKET

How to make money without losing money

Answer
Right Mind & Right path

Why should you invest in Stock Market

 Beat Inflation Grow Wealth : - Money works for you Equities outgrow other Assets

ADDUCINGS

Amazing Growth of INFOSYS

Infosys was founded by Narayana Murthy in 1981. It came with an IPO in 1993 at the price of Rs. 95. Investment for 100 Shares would cost Rs. 9500. Infosys has announced five bonus shares and one stock split since its domestic listing and each share in 1994 had become 64 shares till 2004. Again in 2006 it issued 1:1 bonus taking the number to 128 till date. No. of shares as per our example is 12800 MP in July 2010 is 2900 12800 x 2900 = 3,71,20,000. Three crores seventy-one lakhs and twenty thousand. Remember, apart from this, the investor would have got the dividend amount more than his investment.

Infosys

Wipro =10 k becomes 400+ cr

100 shares of Wipro with a face value of Rs. 100 in 1980 : In 1981 company declared 1:1 bonus = 200 shares In 1985 company declared 1:1 bonus = 400 shares In 1986 company split the share to Rs. 10 = 4,000 shares In 1987 company declared 1:1 bonus = 8,000 shares In 1989 company declared 1:1 bonus = 16,000 shares In 1992 company declared 1:1 bonus = 32,000 shares In 1995 company declared 1:1 bonus = 64,000 shares In 1997 company declared 1:2 bonus = 192,000 shares In 1999 company split the share to Rs. 2 = 960,000 shares In 2004 company declared 1:2 bonus = 2,880,000 shares In 2005 company declared 1:1 bonus = 5,760,000 shares In 2010 company Declared 2:3 bonus = 8,640,000 shares In October 2010 about 86,40,000 x Rs. 463 = Rs. 400+ Cr
SH: 222764 % : 0.3524

Total : 2,451,995,801

Wipro

Unitech
This is another multi-bagger stock which rose from Rs. 44 in June 2003 to 14849 in June 2006: exactly 3 years. So, if anyone who had invested just Rs. 4400 (100 shares), one would have bagged nearly Rs. 14, 80,000. An appreciation of 337 times in just 3 years.

Reliance Industrial Infrastructure Limited

Very Recently Post Recession (after October 2008 )

Polyplex Corporation Ltd

Small-Cap Multibagger

Points to Ponder
That was the Technology boom and the Realty boom. (Industry) Polyplex, RIIL and other Small Caps Growth pertaining to a particular Company Identifying such potentiality is an intrinsic element of Investing. Invest in blue chip companies such as Reliance, SBI, NTPC, TATA group, etc. Now among the EMs, India, as such, is more likely to be the multi-bagger

DO YOU THINK INDIA IS BECOMING ECONOMIC SUPER POWER

1Trillion Loan Story

Super Cycles
1875 ?-1919 ? US 1945 -1980 ? Japan 2000-2030 China and India Presently World GDP is 62 trillion By 2030, world GDP will be >300 trillion Presently, Indias GDP is only 1/60 of world GDP By 2030 Indias GDP will be 1/10 of world GDP

Gross Domestic Product (GDP) RATES of Some Countries

Rank 4 12 113 122 147 151 178 188 190 193 206 Country China India Brazil World France United States European Union United Kingdom Germany Japan Russia Rate 8.7 6.5 -0.2 -0.8 -2.2 -2.4 -4 -4.8 -5 -5.3 -7.9 Year 2009 est. 2009 est. 2009 est. 2009 est. 2009 est. 2009 est. 2009 est. 2009 est. 2009 est. 2009 est. 2009 est.

WHO ARE THE MAJOR BENEFICIARIES OF OUR STOCK MARKET?

FII INFLOW

We contribute to the corporate world as employees, consumers, suppliers etc and Foreign Institutional Investors (FIIs) are aware of our countrys potential and they are the beneficiaries - they invest and reap the benefits. So, it is time we make wealth out of our own expenses.

HENCE PARTICIPATION OF EVERY INDIAN IN STOCK MARKET IS A MUST

Myth about the other asset classes dispelled

GOLD AND SILVER ALWAYS HAVE ONLY UPWARD MARKET : IS IT TRUE?

PETROLEUM PRICES ALWAYS SOAR IS A MYTH

Real Estate - Mumbai

Nifty in the last 10 years

Bull Market

Bear Market

Bear Phase in Bull Market

Nifty Now

Why shares are bought and sold much higher than its face value?

Intrinsic Value / Book Value Potential (future Earnings) Demand and supply

Price Determining Factors

Demand and supply rule plays the major part in price determination of a share Fundamental : This factor involves analyzing a companies financial statements and health, its management and competitive advantages, and its competitors and markets

Technical : The process of analyzing a security's historical prices in an effort to determine probable future prices.
Emotional : There is a common saying that Fear and Greed Drives the market. People buy and sell based on their psychological Influences.

Fundamental analysis serves to answer questions, such as:

Is it actually making a profit? Is the companys revenue growing? Is it in a strong-enough position to beat out its competitors in the future? Is it able to repay its debts? Is management trying to "cook the books"?

Technical Analysis
If we were all totally logical and could separate our emotions from our investment decisions, then, fundamental analysis the determination of price based on future earnings, would work magnificently. Then prices would only change when quarterly reports or relevant news was released. But the Reality is different

Stock market is gambling demystified.

P/E PB

Efficient Market Hypothesis (EMH )

An investment theory that states it is impossible to "beat the market" -Stock markets incorporate and reflect all relevant information. According to the EMH, stocks always trade at their fair value, making it impossible for investors to
either purchase undervalued stocks or sell stocks for inflated prices.

As such, it should be impossible to outperform the overall market through expert stock selection or market timing,
the only way an investor can possibly obtain higher returns is by purchasing riskier investments

MARKET IS FOR EVERYONE

Investing and/or Trading

1. Investor A) Low Profile B) High Net worth

2.Trader
A) Day Trader B) Swing Trader C) Position Trader

Exchange Traded Fund (ETF)

A security that tracks an index, a commodity or a basket of assets like an index fund, but trades like a stock on an exchange. ETFs experience price changes throughout the day as they are bought and sold.

Most Popularly Traded ETFs

NiftyBees for Nifty BankBees for BankNifty GoldBees for Gold

 Benchmark Asset Management Company Pvt. Ltd. (BAMC) is a SEBI registered Asset Management Company launched in June 2001. BAMC is the first and only asset management company in India with a primary focus on indexing and using quantitative techniques in creating innovative products. Benchmark is run and co-promoted by professionals with a long experience in the Indian and International Financial Markets.

Derivatives are for Hardcore Traders

Derivatives
A security whose price is dependent upon or derived from one or more underlying assets. The derivative itself is merely a contract between two or more parties. Its value is determined by fluctuations in the underlying asset.

Most derivatives are characterized by high leverage.

Purpose of Derivatives

Hedge Arbitrage (RAR) Speculation

*RAR : Risk Adjusted Returns

Special focus on Options as most versatile trading instrument

Options are Versatile

Options are such an excellent and versatile tool to make profit in all type of markets. Bull Market : Shares / Futures /Options

Bear Market : Sell Futures / Buy Puts / Sell Calls. Selling shares is restricted only for intraday trading. Flat Market / Sideways: So, making profit in such markets is only possible thru Option writing.

Trading as a Career

1) I don't want to work under anyone. I want to be my own boss. 2) So, I have to be either self-employed (Labour Investment) or a businessman (Money Investment) 3) Being a Self-employed, I will be at my clients' mercy if I am not a specialist or mostsought Doctor, Lawyer, Chartered Accountant, Soft Skills Trainer etc. Let me put this option in a parking lot. 4) If I have money to invest I can become a Businessman. 5) what are the factors involved in a Business: a) Type of industry, business. (once chosen switching is difficult) b) Place of business. (Can't relocate easily) c) Business viability. (will have to be assessed periodically after the launch) d) Material and Man management (labor problem inevitable). e) Competition threat. (it is always there as a threat) f) Uninterrupted supply of sources.(Law of demand and supply determines) g) Customer satisfaction. (Very unpredictable) h) Healthy accounts receivables thereby matching the Accounts payable. (woe) I) Legal formalities.(God help me please) j) Out-of-pocket expenses.(same as above) k) Accounting (though it is simple, many consider it as complicated. So, will I.) l) Taxation (Am I toiling for someone else) Am I the Master or Slave?

Is there a business where a) I can choose any industry / any business according to my wish. b) I can do business from anywhere, even when I am on a holiday trip. c) I will be able to look into viability before I launch. Also I will be able to switch and move on when once done with the current one. d) I need not worry about Man and Material management. e) Competition is an opportunity rather than a threat. f) I deal with the product whose supply is not an issue. g) I don't want to meet my "customers", let alone convincing them, but they still buy from me. h) My "customers" pay me immediately. I) Legal formalities are hassle free. j) Out-of-pocket expense is irrelevant. k) Accounting is done by someone promptly and properly. l) Paying tax is a matter of pride. I am the Real Boss !!!

Yes it is : TRADING IN STOCK MARKET.

Life Cant be this Simple. There must be some catch

Being ambitious is good, but not without "requisite" effort