Stock Market: Top 5 Principles to Follow While Investing

By P. Neelakantha Achary: Most of the investors don't follow the principles before investing into the stock market. There are no rules for investing, these should be considered as golden principles of self regulation. So that, one should not lose hard earning money in the stock market.

Investing in stock market requires sound knowledge about stocks, companies and a bit of knowledge on financial reports and analysis. That does not mean a person without knowledge can't invest money. Certainly anyone can invest money, but getting profit out of its required their understanding of the market function and companies financial health.

Here are top five principles one should follow before investing into stock or equity market.

1) Invest only Surplus Money into Markets: Lots of investors do ignore this principle. They do try hard to get huge return from their investment with putting all the funds they have. That is simple disastrous for them since market are more volatile. And, in that scenario it would not guarantee a fixed return from the investment. For this investors do need to have some surplus fund, so that they can bear the shock if the market tumbles.

2) Manage you Time to Track: Some investors want huge return but reluctant to spend ample time to track the market activities. It is very important for investors to cater as much as time tracking the performance of their stock,they invested. Without this, they may suffer huge loss. In fact, investors need to be very cautious about the stock.

3) Avoid Emotions While Investing: Investors need to control their emotions while investing. An emotional approach in investment could lead to severe loss. Most of the people do not control their emotions while investing and suffer loss. In realistic approach and proper analysis could give the better result. Company’s financial statement should be taken into consideration while investing into the stocks.

4) Have Realistic Expectations: One should take control on his/her expectations from the stock market. The fact can’t be denied that markets will not be positive all the time. Trading involves risk so one shouldn’t expect much from market. One can’t have win-win situation always.

5) Learn Fundamentals & Technical Aspects: Simply investing in stock market is wise but sound knowledge is necessity. One should deal properly with the jargons. Those will be there always to puzzle investors. If the word ‘technical analysis’ is bothering you, just wait don’t investment into the market, rather go at class to learn some fundamentals.

Be ready with all the details about financial markets and fundamentals of stock market. One can year very hefty amount from stock market but in long-run and following best practices.

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ICICIdirect launches ‘Insta Account'

Mumbai, India, Aug 20: ICICI Securities, India's largest online investment service provider, today announced the launch of ‘Insta Account’, a completely online and paperless investment account.

A Resident Indian who is KYC compliant as stipulated by SEBI can open an Insta Account on www.icicidirect.com to invest in Indian Mutual Funds. The investor has the freedom to use any of their existing internet banking account.
With the Insta Account, investors also get the opportunity to explore and experience the range of benefits offered by ICICIdirect to its existing customers.

ICICI Securities has made the account opening formalities convenient by streamlining the process with the existing KYC formalities, thus eliminating the inconvenience and lengthy process of filing and submitting paper documents. There are no charges to open an Insta Account on www.icicidirect.com

Launching the new account, Mr. Vineet Arora, Executive Vice President ICICI Securities “Today internet and smartphones have provided customers the convenience of taking decisions instantaneously – from shopping for groceries to selecting a house, everything is done on the go. At ICICIdirect, we want people to take informed investment decisions on the go; safely and conveniently irrespective of their geographic location in India. With an ICICIdirect Insta Account, we have done away with the traditional way of paper documents and we have ensured ease and convenience to investors by leveraging the efficiency of technology. Investors who are already KYC compliant would be able to use any of their existing internet banking account to make an investment and utilize the in-depth research reports for their mutual fund investment.”

Insta Account investors get the following benefits:
a) Access to an in-depth research
b) Decisive Capital-gain status and statements
c) Dividend income information
d) A comprehensive analysis report showing the asset-mix, performance and the underlying information of the mutual fund investments.

KYC compliance is mandatory to transact in the securities market as stipulated by the Securities and Exchange Board of India (SEBI). In case the applicant is not KYC compliant, ICICIdirect team will assist the investor in completing the formalities.

To open an account an investor simply needs to follow three simple steps:
1. Provide the investors Permanent Account Number (PAN) and Date of Birth (DoB)
2. Verify the name and contact details and generate a one-time password (OTP)
3. Authenticate using the OTP and create User-id and password

Post opening an Insta Account, the investor who has an existing ICICI Bank account can start investing instantly. Investors wanting to use any other bank account just need to scan and upload copy of that bank’s cheque. On successful verification the investor can use their internet banking account to make the investment using their ICICIdirect Insta Account.

“We believe that this eco-friendly way of investing will improve the experience of investors wanting to access and benefit from the long term growth of the equity capital market through the mutual fund route. We want to encourage more investors, especially across non-urban Indian areas with fewer access points to opt for the Insta Account route and not put their investments on hold due to lack of time, “added Mr Arora.

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Indian Economy's GDP Pegged at 5%

The government of India has estimated the Gross Domestic Product (GDP) rate at 5 per cent for the fiscal year 2012-13, which is much lower from the projection of 5.5 per cent.

According to the Advanced Estimates released today by the Central Statistical Organisation (CSO), the economy would like to have 5 per cent GDP growth rate during 2012-13.

In 2011-12, the GDP was at 6.2 per cent. The slide in the growth rate of Indian economy has been indicated that it is reeling under the clutches of global slowdown.

The poor performance of many sectors of Indian economy hold the growth rate to much lowest level of 5 per cent.

On Thursday, after estimation of the GDP of Indian economy, the Sensex went down by 56.78 points at 19,582.94 points. The Nifty was also seen in red in post lunch session, it was at 5,937.95 points shedding 21.25 points or 0.36% loss.

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Infosys shares soar on BSE after Q3 report

The shares of IT major, Infosys Ltd, soared to Rs 2,580 around 11.19 per cent on early trade on the BSE on Friday following filing its reports for the third quarter ended December 31, 2012.

The revenue of Infosys for the quarter October – December, went up to Rs 10,424 crore by 12.1 per cent. Last year, in the same quarter the company had revenue of Rs 9,298 crore.

According to the media reports, the net profit of Infosys for the third quarter has marginally dropped to Rs. 2369 crore by 0.12 per cent,  the company had posted net profit of Rs.2372 crore in October—December quarter of the previous fiscal (2011—12).

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Gold Futures Price dips

The gold futures prices dipped to Rs 30,732 per 10 grams  due weak global market cues on Wednesday. Following the sharp fall in the gold price, the gold features dipped by arournd 0.40 per cent.

Photo Credit: bullionstreet.com

It is believed that further fall in the gold price might have impact on the futures at the commodity market. And it will also  hamper the sentiments of the investors at the Multi Commodity Exchange over purchasing gold lots.

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BSE Sensex ends up 0.08%

The 30-share index BSE Sensex was ended on a flat-to-positive note on the first day of the week. The Sensex ended at 19,257.73, up 15.73 points or 0.08 per cent.

In the intraday trading it touched the highest mark of 19,347.64 points and also dived to low of 19,237.26 on Monday.

The BSE FMCG Index dipped 0.12 per cent. The Nifty closed with 8.85 points up at 5,856.55 (+0.15), in the intranet-trading the Nifty has touched the highest point of 5,871.90 and a low of 5,844.70 points.

Both the stock markets seen were bearish following no buying interest among investors.

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Stock Markets up ahead of FDI vote

The stock markets in India has been gaining on Wednesday following scheduled vote on FDI in retail, in Lok Sabha. The debate and voting on the single brand FDI in retail has been keeping up the momentum of BSE Sensex and Nifty.

The Bombay Stock Exchange (BSE) is at 19,413.90 points with up 65.78 (+0.34%) and the50-share Nifty was at 5,903.65 points with up 14.40 (0.24% ) at 11:45 am on Wednesday.

The Nifty has touched the 20 month high figure of 5900 for the first time since April 2011, on Wednesday.

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Indian Stock Markets End in Positive This Week

Business News; The Indian stock markets end on positive points this week on March 30, 2012 Friday. The BSE Sensex ended with 345.59 points (2.03%) up at 17404.20 points, while the Nifty ended at 5295 points with gaining 116.70 points and Nifty futures advanced to 5322 points with a gain of 23.45 points this week.

Market experts believe that the Nifty may touch to range between 5295 to 5400 points in the next week. The major concerns will be the auto sale results and its impact on the auto shares. The auto market of two-wheelers are high as the sales at a good performance.

Another major factor will be the speculation over the Credit Policy review by the Reserve Bank of India by April 17th. The market move and investors will be speculating about the interest rate and its impact on the stocks and scrips.

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Investing in Stock Market? Think Again!

Are you planning to gain from the stock markets those are unpredictable? You never know when it rallies or advances, how much it is wise to depend on stocks for regular income. The stock market seems to be easy place where investors can invests, but the chances are very less to have constant gain.

The markets particularly the stocks, indices, futures, options, would be probe favorable to gain some percent provided you have complete idea about it. And a bit of technical analysis over the market's bullish or bearish nature is also as important as aiming to get something out of it.

The trading session is the biggest session for investors like examination time for the students. Applying proper trick or move can give you good return, otherwise there are chances of loss or unlimited loss are there all the time you trade.

If your planning a big chunk of profit from the stock market, then the market is not a proper place for you. Loss are inevitable, but the major thing is that how much you can check your loss by making small and tiny profit trading session.

Sound knowledge is much to gain in the market. No matter if you lost money in the stock despite having the knowledge on the products, still you have chances of getting profit by not repeating those mistakes again.

Read the market before you enter into it. The investment world looks like heaving and loaded with more and more rich people. No, but the reality is something different. There are various types of investors from rich to poor.

Never believe any unauthenticated sources that they generated huge money from the stock or futures. Such claims are false, some do speak like that to cover their loss or to hide their failure in the market.

A wise investor will always read the market and believe in the market moves, does best technical analysis himself or herself.

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BSE Sensex touches 18k Points

Business News: On Wednesday the BSE Sensex touched the 18,000 points level after six months. It indicates that investors gained confidence in the Indian stock market and Indian economy. Due to the global cues the stock market has been training. But the gaining of around 353.84 points this week helped the stock market to touch the confidential mark of 18,000 points.

Hike in the BSE Sensex benchmark points will help to understand the economy and the confidence of investors and FIIs in Indian economy. It not only achieved the psychological mark but also gave strong indication of improving economy.

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Indian Stock Market open to Foreigners

Business News: In a significant move to reduce market volatility, the government of India will allow foreign individuals to invest in India stock market from January 15, 2012. This move will attract more foreign currency into the Indian market.

Due to the cue from the global markets, the India stock market has been tumbling, and more fund into the market may help it to sustain blow of slowdown.

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