The Power Of Writing

Buy, Hold and wait for the market to go up  to book the profit is the normal psychology of any trader or investor but some traders are making profits even when the market is down . Sounds interesting right? Here comes the concept of Shorting a Stock which is also known as Short selling. Now you might be wondering ki ye short-selling hota kya hai and how can we make money out of it. Let's get into our topic and understand what is Shorting a Stock mean? Short selling is the opposite of the normal transaction (Buy first and Sell later) so the opposite will be Sell first and Buy later . In a normal transaction, the view is bullish which means you will earn profit If the market goes up but in short selling , the view is bearish which means you will earn profit If the market falls . How to short a stock? Let's understand with an example, the stock ABC is trading @ Rs 100 and you believe that the stock price will fall and it can fall to Rs 95 so you need to...

Financial literacy is rising rapidly in India, so with this lot of new traders are coming into the stock market. Many new traders think that trading is a quick way to make profits , which is right but without any knowledge and experience it can also become the opposite, yes you're guessing it right, Losses ! So what does a good trader do? Let's get into our topic of 4 Qualities of a Good Trader: 1. Avoid Penny stocks - A penny stock is a stock of a small publicly listed company and it is very illiquid which means the buyers and sellers are very limited so your order stays open until there is a counterparty and sometimes the trading gets halted in such stocks. Also, the price of such stocks are very cheap like Rs 10, Rs 50 etc, so this price attract the new traders and they buy in more quantities but are unable to sell due to less liquidity and circuit limits . So a good trader stays away from penny stocks and always trades in liquid stocks that can be bought...

Earlier many investors were not willing to invest in the stock market because they had a different picture of the stock market, many used to call it a " Satta Bazaar ". But with the recent transformation of technology and social media , financial literacy  is rising at a good phase. Now the investors are switching from old investment methods like FDs, PPF etc to the stock market .  But an investment in the stock market comes at risk If not done properly, so let's get into our topic of 6 ways to avoid losing money in the stock market: 1. Avoid taking tips/advice - New investors mostly get stuck with these tips and advice which directly affect their capital and end up taking losses . The person giving you tips is just recommending his assumptions or you can say "Tukka maar raha hai" and there's no guarantee that the tip will work. If you have taken any tip then you might have noticed one thing that with time you are just bearing l...

Before Paytm's IPO there was a lot of hype that it is the most awaited IPO plus it is the biggest IPO ever. But the financials were not good and it is a loss-making company so with this many investors didn't show much interest . But some investors like me were optimistic that it will do good but due to the poor response and financials the subscription percentage was less and those who applied most of them got the allotment and it opened at a discount price. Investors had a chance to exit and book a minimal loss or hold it till it starts performing. I took the 2nd option and kept holding it but still, it was not performing well and day by day it was falling badly. Today morning my senses gave me a signal that I should sell this stock and book the loss . I remember I had the Yes bank shares and there was the same situation, the stock was falling badly so at that time also my senses gave me a signal so I sold the stock at a minimal loss and my collea...

"Stock market is all about picking the right stock at the right time and a right price" 9th Feb 2021 I had purchased 14 qty of HAPPIEST MINDS at Rs 351 . 27th Sept 2021 I had sold all the 14 qty at Rs 1425 . Within 7 months I made a decent profit . I remember I had applied for its IPO as well but unfortunately, I didn't receive the allotment :) The purpose of this blog is to show the potential of the stock market hence start investing as early as possible. Also, make sure to do your research before buying any stock . See y'all in the next blog, Cheers!

People's involvement in the stock market is growing rapidly. They are trading and investing for the short term as well as the long term . Also, the craze for Futures and Options are going high. Many people are trying to enter this segment and the reason can be any like Hedging, Speculation   or simply the greed for making a huge profit in a short span. Futures and Options is a risky segment and you need more money to enter any contract because here you can't buy/sell a single share, there are specified lot sizes so you need to buy in lots . For example, If one lot has 500 shares then you need to buy a minimum of 500 shares or in multiples of 500 like 1000,1500, 2000 and so on. To ensure you have an adequate source of income,  SEBI has mandated to submit one income proof  to activate the Futures and Options segment. Let's get into our topic and see the list of documents you can submit as income proof to activate the Futures and Options segment...

Nowadays people are showing more interest in the stock market . Over the internet and social media, there are a lot of advertisements or promotions for opening a demat account . Most of the companies offer zero account opening fees and some are also offering zero AMC for a lifetime but no one transparently speaks about charges involved in trading  and  investing . I believe new investors and traders should know what are the charges involved in trading and investing in shares  because whenever we purchase any product the first question we ask is Bhai paise kitne lagenge? Let's under the list of charges: • Brokerage - It is the primary charge charged by any broker. It is charged on a certain percentage or a flat fee . Nowadays, most brokers offer zero brokerage on delivery and around Rs 10-20 for intraday trades. Most traditional brokers still charge for the delivery trades. You can check the broker's website for their brokerage charges. • STT/CTT - STT is S...

This will be a quick blog.  December month was full of IPOs and If you're into the stock market then you might have applied for IPOs with a hope that is baar lag jaay IPO . Luckily I got the Medplus IPO allotment . The price band was between 780-796 with 18 qty in one lot. I had applied for one lot at a cut-off price of 796. Today it got listed , I sold at 1100 and booked my profit  of 5472. Also, do check this blog to increase the chances of your IPO allotment ;) See y'all in the next blog, Cheers!

Everyone loves when their portfolio is in green colour so to enjoy the gains they sell the shares. But wait, do you know you have to pay a Capital gain   tax  on these gains? I am sure you must have heard these terms STCG and LTCG . Now let's understand these terms: • If you sell a stock in profit within 1 year then you're liable to pay the Short Term Capital Gain Tax (STCG). It is 15% on the profit. • If you sell a stock in profit after 1 year then you're liable to pay the Long Term Capital Gain Tax (LTCG). It is  10% on the profit. Also, there is one exception  for LTCG. Till 1 lakh you're exempted to pay any capital gains but If the gains are more than 1 lakh then you have to pay the LTCG on the excess amount. Let's understand with a few examples: • If you bought stocks for Rs 1 lakh and sold it within 1 year for Rs 130000 so 30k is your profit. Now on this 30k, you are liable to pay a 15% capital gain tax so it will be 30000*15%= 4,500. ...

The IPO season is the season of money, you get a chance to earn profit in a short period and sometimes it can also bring red colour to your portfolio but it is very uncommon. There are 2 ways where you can apply for an IPO: UPI and ASBA . Today I'll be sharing the process of the ASBA route via HDFC net banking.  Now you might be wondering why to go for the ASBA route when you can easily apply from UPI, so there are a few issues with the UPI method like delay in  mandates , funds blocking issue and the main problem arises on the refund date. In case you haven't received the IPO allotment then the unblocking of funds take time in the UPI method, you have to wait till the mandate end date and sometimes you have to wait even after the mandate end date hence I don't encourage applying from the UPI method. Let's get into our ASBA process via HDFC's net banking: 1. Login to net banking - First you need to login to HDFC's  net banking portal. You ...

When I was working in a broking firm I used to get queries from the new investors/traders that "Sir ye market or limit order kya Hota hai?" So today's blog is on this same topic and I'll explain what's the difference between a Market order and a Limit order . Let's first understand the market order, for an instance, you went to the market to buy some product and you're like whatever the price is I am ready to pay as I want the product instantly without any delay or hassle. So now I am assuming you have understood the concept of a  market order,  now let's take an example in the stock market term.  The share of ABC is trading at Rs 100 and you want to buy it instantly no matter what price it gets executed. So when you place the market order your order will execute at whatever the best price is available, it can be 100, 101 or can be 103. Now Limit order , again you gone to the market to buy some product and this time you're like I...

IPO or you can say पच्चीस दिन में पैसा डबल ;) Everyone who applies for IPO will always desire to get an IPO allotment but very few get the allotment. Those who are getting the allotment are either lucky or applying smartly . Let's consider you are not the lucky one. Now you have to apply smartly so how do you apply smartly to increase the chances of the IPO allotment? Below are some effective ways which will help you increase the chances of allotment: 1. Apply for a single lot - I have seen many investors apply for multiple lots to get the allotment but it is not the proper way because In the case of  oversubscription  an investor doesn't get more than one lot. It's always better to apply for a single lot rather than applying for multiple lots. 2. Apply from multiple accounts - This is another effective way to increase the chances. If you have Demat accounts of your family members or friends then try applying from that accounts also. Connecting with the f...

Nowadays opening a Demat account is a very easy task, your account gets opened within 24 hours. But choosing the right broker is quite a difficult task. With the recent trends, people are choosing discount brokers over traditional one's.  Now, who is a discount broker? A discount broker is a stockbroker whose online presence is more rather than maintaining physical offices. The brokerage charges and AMC is very less compared to the traditional brokers like HDFC Securities, Motilal Oswal etc. In discount brokers, there are again many players like Zerodha, Upstox, 5 Paisa etc. Zerodha is the pioneer of discount brokerage and it was founded in 2010 by Sir Nithin Kamath and Nikhil Kamath .  They started from scratch and in these 11 years,  Zerodha has become India's largest brokerage firm with 7.5+ million active clients. The interesting part is that they never spent a single penny on advertisements. All the clients are organic and come from word of mouth. ...

In the past few years, the stock market topic has been in a boom. Earlier people were afraid of the stock market so they were just investing their money in FDs or simply keeping the cash idle in a savings account to earn interest. But do you think it is enough? Yes, you're guessing it right the answer is NO. As I mentioned the most common investment people do is in FDs or some with good money simply invest in properties. Apart from these, there is an end number of options which people see but don't show much interest. The options are investments in shares, mutual funds or simply the stock market. There are many reasons but below are the few key points which I feel why investment in the stock market is important : • Money in a bank account- Keeping your money in a savings account is no more a good option because the interest rate is very less and with the rising inflation that interest is of no use. It's better to invest in the stock market because on average y...

Stock market or you can call it the Share Bazaar to bring the 90s vibe :) Everyone wants to become rich or wants to make a good profit from the stock market. Believe it or not, everyone has this desire but they don't know the right way or don't have the right information to start the journey. With the recent trends, people are showing interest in the stock market and wants to invest their money. There are 2 participants traders and investors. Now, who is a trader ? A trader is someone who has a short term view and wants to make a profit in the short run. While the investor is someone who has a long-term view and stays invested for a long duration. It can be 5 years, 10 years or as long as he wants to hold. As an investor, I'll be sharing some points to keep in mind while investing . Earning a profit or generating wealth in the stock market is not that complicated. While investing just keep these points in mind: • Stay invested in the Nifty Top 10–15 stocks -...

Many of us have the desire to get the IPO allotment to enjoy the listing gains.  The allotment of IPO depends on the luck factor. Some people are so lucky that they get the allotment of most of the IPOs while some like me never received any allotment. I have been applying for IPO's for the last 2 years but I never received a single allotment. I used to think that in this life I won't get any IPO allotment ;) Still, I never stopped applying because there's no loss. There can be 2 scenarios either you will receive the allotment or you will get your money back on the refund date. Recently there were quite popular IPOs like Nykaa, Policy Bazaar so I applied for both and I knew I won't be getting the allotment and as expected I didn't get the allotment for Nykaa. Now Policy Bazaar , I was thinking "Ye bhi Kaunsa Lagna hai" and I didn't even check for the allotment but surprisingly I got an SMS that the amount has been debited from my account fo...

The first job is always special, you enter into a new world, meet new people, learn discipline and start a new journey of your life. Let me take you back to 2018, it was the year when I completed my graduation in a Bachelor's of Management Studies (BMS) with a specialisation in Marketing. Right after my graduation , I started searching for jobs as I was the eldest kid plus there was a financial crisis. I gave many interviews and I was just getting rejections . I was stressed, helpless and felt like all the doors are closed for me but also somewhere I had hope that things will change and there were times I used to take money from my close friends to travel for the interview location. One day I was just sitting at my home and I got a call from a job agency called "Local Fox", I am not able to recollect the name of the person. She said we have a job opportunity for you and the company's name is " Zerodha " and it is a stockbroker, you have to help...