A Free Style Of Trading

You buy the right to honors the contract for a price called premium. Options have a power of versatility and enable you to adapt/adjust your positioning according to market situations.
Stock Options are not suitable for everyone they are risky; this can be speculative in nature and carry a substantial risk of loss. Future requires high margin payment than option and also future were preferred by speculators and arbitrageurs and get unlimited profit with loss potentials, But option was preferred by only with hedger and earn an unlimited profit with unlimited loss potential.
Terms in option contract are-
Premium- also called Token, the payment given by the buyer to the seller to enjoy the privileges of an option.
Strike price/Exercise Price- A price is fixed between seller and buyer of the asset which can be bought or sold in future.
Strike Price Internal- these are different strike prices on which option contract is traded. Generally, these are 11 types, 5 are above the strike price and 5 are below the strike price.
Lots sizes- This is fixed size of a commodity on which they are traded.
Ex. Reliance industries have a lot size of 250 shares per contract.
Options are of two types through which we can buy or sell share/index in derivative markets are- call options and the put options.
CALL OPTION- It provides the right to buy a certain amount of share/index from the derivative market, strike/exercise price on or before a specific data in the future expiry data. For this option, you have to pay an option premium to the seller/writer of the option. This is because the writer of the call option assumes the risk of loss due to rise in market price of that share/index beyond its strike price on or before the expiry date. Here, the seller is obligated to sell share/index at the strike price even through it means making a loss. Below some key feature are discussed call option-
�Specifics-you will have to specify how much you are ready to pay for the call option for this you have to place a buy order with your broker specifying the strike price and the expiry date.
�Fixed price-also known as exercise price, this is fixed amount of buying the underlying assets in the future.
�Option premium- this is first paid to the exchange, which then passes it on to the option seller and when you buy the call option, you must pay the option writer a premium.
�Margins- when you sell a call option by paying an initial margin not the entire sum, once you pay the margin you have to maintain a minimum amount in your trading account or with your broker.

Let’s understand call option with this example- A land developer may want the right to purchase a vacant lot in the future, but will only want to exercise that right if certain zoning laws are put into place. The developer can buy a call option from the landowner to buy the lot at say Rs 2, 50,000 at any point in the next 3 years. Here, the land owner will not grant for free option, the land developer need to contribute a premium/down payment to lock its right. Here the premium might be Rs 6000 that the developer pays the landowner. When 2 years passed the zoning had been approved they exercised and developed his option and they bought the land for $250,000 and it has doubled the market value of plot. In alternative case the zoning approval doesn’t came, and the one year passed the option has expired. The developer will pay the market price in the cash form and the landowner will kept the $6,000.
Put Option- Market is full of buyer and seller; there can’t be a buyer without there being a seller. In the same way, option market without having put option you cannot have call option. Put are the option which provide the right to sell of underlying stock or index at a pre determined price before or on a specified date in the future. Here, the strike price and expiry date is pre-defined by the stock exchange. Call and Put options share the similar traits but in opposite nature. The following are key features of put options.
�Specifics-you will have to specify how much you are ready to pay for the call option for this you have to place a buy order with your broker specifying the strike price and the expiry date.
�Fixed / Exercise price- It is a strike price which is fixed for buy the underlying assets in the future. It is fixed by mutual consent of both the parties.

Tips For The Complete Beginners Trader

Investing in the stock market can prove to be one of the most rewarding things you could ever do. Just look at Warren Buffet. Over the course of several years he was able to turn himself into one of the most successful investors in the world.

What most people fail to realize is Warren Buffet did not become a successful investor overnight. As a matter of fact, according to BusinessInsider.com, Buffet made 99% of his wealth after the age of 50.

With that being said, let’s dive right in and talk about the 4 investment success tips for the complete beginner.

#1 – Be Patient

Becoming a successful trader takes time. And while there are numerous courses and guides that can help you cut your learning curve in half, at the end of the day experience is still the best teacher. So be patient. Eventually your investments will start to pay off.

#2 – Be Prepared To Take Some Losses

Ideally you would want to make a profit on every trade you make. Realistically however that won’t happen. There will be good days and there will be bad days. Make sure you are prepared to take some losses.

In part two of this guide we will talk about stop loss orders and how to use them to minimize your losses.

#3 – Pick The Right Brokerage

As an investor the broker you choose to work with will play a huge role in your overall success. It is therefore your responsibility to ensure you are working with a reputable broker. Do your research and make sure they have a good track record.

Some of the top brokers that offer you the best value for your portfolio include TD Ameritrade, TradeKing, Fidelity and E-Trade.

#4 – Never Get Emotionally Involved

As a trader you must leave your emotions at the door. The absolute worst thing you can do is get emotionally involved with the stocks you are trading. When you trade based on emotions rather than analytics, you will almost always find yourself on the losing end of the spectrum.

Before you make your first trade take the time to write out a set of buying and selling rules you will follow. It is very important you stick with these rules for every trade you make and avoid allowing your emotions to get in the way. As you become more experienced you can adjust the rules to better suit your trading style.

Also read the following related articles:
How To Become An Expert Trader Part 2 – 5 Things You Must Understand
How To Become An Expert Trader Part 3 – Fundamental Analysis vs Technical Analysis
How you can avoid the top 5 common investing mistakes
Here are top 5 common investing mistakes

start to buy the Trump

That is a good question, but here are 3 reasons you should consider the Trump rally.

1) Transition away from bricks and mortar.

Once Trump is in office, he will need to back himself up. But a lot of very positive things have happened since Donald Trump has stepped up and won the elections. CEO confidence is back, investor confidence has come back. Plus the fact with bricks and mortar businesses, deregulation is going to be a big event in 2017 and that will only strengthen the confidence in the average investor out there. The last 8 years has seen the biggest regulation burdens on businesses and the stock market in the last 50 years.

2) Stick with what is working.

The average investor has seen the Trump rally, and now knows its key to stick to areas that keep working. So once you take a bigger picture view in terms of where the extreme value is. The quality spread for the market is at all-time highs, and that would make it a very bullish scenario for small cap stocks. So what we have been seeing is sticking to what has been working last year in 2016.

There is influx of new monies coming in to buy the ENERGY sectors, and also the FINANCIALS as they have been said to be very good under a Trump administration. Some are suggesting these are overbought, however, some smart brokers on Wall St are now telling their clients to own more banks and more energy.

Expectations are super elevated right now, and the idea of fiscal spending under a Trump administration might be enough to put many companies into quicker solid earnings. Even if valuation is a continuing concern, you cannot say the market is cheap anymore. But the opportunity is looking at margins, and the way margins work.

So if you are, tune your thinking into who has margins, and that do not have a lot of sensitivity. Those are going to be the companies you want to invest in the coming 12 to 24 months. These could include banks and energy. And there are always ways to find opportunities in the current market environment.

3) What could derail the Trump Rally?

Even though the market is at all time highs, there are still things to worry about in 2017. We just have to think back to 2016. Remember a 4% pullback in the markets midyear last year, made people throw up their hands, and want to leave the business. That really is not a big move in terms of an overbought bull market move. So we have to remember with Trump and his policies not all of them will get through, and if that causes some large ripples in the market, rather larger, not just a few ripples in a small pond.

How To Invest In Cash Trading

A stock market or a share market is the place where trading of share (equities) is taking place between two parties, one is the buyer & one is the seller, both gets the revenue and losses in this process, This is a risk-taking process of earning money. Here trading is not only to share but also in financial instruments like commodities, precious metals, agriculture products and foreign currencies. It provides cash and future trading on the basis of delivery and provides profits if market prices are high and loss vice versa.
In cash trading, buying and selling of financial instruments are done for an immediate delivery, also called as Spot market. It trades in two options, one is in equity shares and another one is debt-bonds (Government and Mortgage bonds). Here deal is done in 2 to 3 business days. It may be Exchanged or an OTC � over The Counter. In Exchange peoples mutually buy and sell their securities and other financial instruments, on the platform of BSE-Bombay Stock Exchange and NSE- National Stock Exchange. Both have a similar trading mechanism, hours and operating principle. All major business in the country is listed on both of these exchanges.
In future trading, you can buy shares or any financial instruments at present, but its payment and delivery occur at a future specified date. Both types of trading have risk at their own levels like Cash is risky at an Intraday trading because your cash payment is done and there no way to return back if your loss, and in future is less risky in Intraday trading tips , just the opposite happens in future trading, but we can only buy in cash trading in futures not to sell.
Cash trading is done when a trader has money in hands which are different from trade on the margin where trader took credit from his broker for trading in the market. In cash, a trading trader can hold his share/financial instrument as long as he wants and face profit/loss according to market changes. Here, a possibility of earning a profit is much higher than any other method of investing. It is unfeasible in nature. But on the other hand, it has a high brokerage charge and taxes for delivery trading. It has 10 times more brokerage than marginal trading, but we can decrease this amount by opting for the online share trading portal, here we give less amount in brokerage but still more than marginal trading brokerage.
For both types of trading, investors require a Demat account as financial instruments are held in a dematerialized account instead of the investor taking physical possession of the certificate.

Stock Market To Melt Up

They do explain that the stock market right now is in what could be called a eighth innings of a nine innings move. This can be lethal, and leave investors behind, but it can also create panic and a bit rounding top pattern latter on.

There really is no reason to panic just yet, but this bull market seems to just keep chugging along without a care in the world. The reason melt up continues is that you get lots of novice investors who decide they are going to miss out and hop in, like lemmings one after the other.

There could be some choppy periods in the meantime. BofA’s year-end target for the S&P 500 is 2,300. It was just 30 points below that Monday.

It could be very rough and treacherous waters when Donald Trump gets into the White House. No one knows what he is going to do. You have a businessman, who has never been in politics or the White House running a country. That thought has investors very panicked and slightly on edge.

The positive sign to that coin is that he is going to fix real estate, after the sub prime mess, and he is going to boost fiscal spending and pump money into infrastructure and jobs. All the while he is going to keep the cheap jobs out of America. Will that work? We do not know, but we will soon find out. That is probably going to be a positive for companies on the U.S. shore. And if that is going to be positive for them, and earnings go up, that means the stock market is likely to go up alongside it.

A lot of the bigger hedges funds that did well in 2016 are positioned for the market to go up to new highs. Yet, the main concern with their constituents is that the stock market at the end of 2016, when Trump won the elections, went up too high and too fast.

As soon as Trump gets in, we will find out if he wants to play with the big boys, or just cry and tweet all day long. At the end of the day, investors like the notion of a TRUMP led country, especially those in the financial and loans industries. If that can get the boost they need, that will only start to spill over into other areas, and be quite modest for investors and the stock market.

When The Best Investment

The simple fact that a fund like this puts the investment mainly in a money driven market and that is why you are always on the safer side of the investment. The advantage is also there in the fact that you can get a low maturity period in any kind of investment. So, you have to not wait for too long to get an investment out, it is as simple as that. You are completely in control when you have invested in an instrument like this.

The worry is that most of us think of investing in odd spots like the stock market and we never remember that this can be really volatile. You can get a hit on the stock market at anytime and not even know what hit you. Unless you have invested in safer bets which make sense for the long run, you would be taking a tough risk all the time. A liquid fund is the most assured way of being safe in every possible way.

You are able to pull your money out within 24 hours; that is how easy it is to use the money you have put as an investment in liquid mutual funds. Think about it, you would have to inform your bank just before 2PM on a business day to have the amount in your account the next day. If that was not an advantage well enough, remember that there are not any entry or exit fees that are charged on this. Many of us think that we could find better investment options by ourselves but in reality, you can always find a better way by just choosing the right expert to guide you.

Analysing your appetite for risk is so important when you are trying to make a good return on investment. Many of us explore a lot more than what we can handle and in the process end up risking our important savings. With the best Liquid Funds India, you would have complete control on your investment and be able to take a firm decision on the way you plan to see your money grow. After all, it is the vision that takes the investment farther.

Stock Trading Made Simple

And finally I found the right solution, which is based on one word “SIMPLE”. So, I use simple trading strategies, and I have less stress and more profits.

Success of my simple stock trading also allowed me to earn money without need to be employee of any company. My trading is my own company. I can trade and make money from any place in the world where I am able to connect to the Internet. And I could spent a lot of time with my family instead on be in some boring office environment.

I also noticed that I do like sharing my ideas, analyses and simple strategies with other traders as this will only serve to help me to find the best stock pick much easier.

I try to put myself around traders who are very wealthy or who know a lot more than what I know, as their success, tips, tricks and techniques almost always pay off. I mean, if you wanted to learn how to juggle would you go to someone just starting, or would you go to someone in the circus and pay them, and tell them, that you want to be one of the best jugglers in the country and you are willing to practise night and day until you get there. Yes, hard work and determination is one thing, but what I am talking about here is smart trading gurus, always have a coach and always make huge profits because they are constantly learning from people better than themselves.

If you want to get good at this whole trading then, find someone who is wealthy and who is willing to give their time to you, and learn everything you can going on in their brain, their day to day rituals, and their secret strategies.

Paragon International Wealth Management

Since the sale in May 2016, demand for rare fancy colored diamonds has steadily increased, creating what many have called the year of the colored diamond. With that said, colored diamonds have been progressively gaining value over the last decade and are considered one of the best hard assets a robust investment portfolio can have.

While Fancy Light Blue and Fancy Vivid Pink diamonds have made international headlines over the last two years for the amounts they have sold for, looking at historic data, the value of rare diamonds could potentially climb higher over the next five years.
Between 2009 and 2016, the price of pink diamonds has increased nearly 180 percent and currently sits at a record high. Blue and yellow diamonds have also gained value, with the price of both rising 70 percent and 90 percent, respectively.

The allure and luxury of fancy colored diamonds is universal, which makes them a coveted asset in a range of countries and cultures. In addition to being a status symbol, these exclusive fancy colored diamonds are easily portable and of high-value making them an ideal hard asset.

Demand for rare colored diamonds is expected to strengthen over the next decade as supply of the exquisite fancy colored diamonds becomes scarcer. Only 0.001 percent of diamonds mined each year qualify as “fancy” and even fewer earn the distinction of “vivid”, which refers to a highly saturated hue.

The Pink Star Diamond – an example of a rare fancy vivid pink diamond.
There are also very few mines that produce fancy colored diamonds, notes Paragon International Wealth Management, a Toronto-based firm that specializes in the acquisition and investment management of fancy colored diamonds, particularly pink diamonds.
The scarcity and rareness of these fancy colored diamonds makes them more precious and sought-after than their less illustrious white diamond counterparts.

For every 10,000 white diamonds mined only one natural colored diamond will be found, notes Paragon International Wealth Management. This makes natural colored diamonds extremely rare and ideal for investment purposes.
When you consider that only one fancy blue diamond is mined each year, and there are only 20 to 30 fancy reds known to exist, it is easy to understand why fancy colored diamonds are such a hot commodity.

There A Lightning Speed Stock Market

The months of August and September are notorious for dramatic declines in the stock market, and there are a select few analysts who are sending out a dire warning investors to be mentally and financially ready when if it does eventuate!

Stocks fell last week after a combination of weak retail earnings and bank stock performance spooked some investors.

“In the dog days of summer, we can get hit with lightning speed sell-offs, if we go back over 40 years, August and September have been notorious for seeing large and dramatic sell offs in the market.�

Rather than join the masses of scared investors in the next downturn, some analysts are seeing the other side of the coin. Meaning they are recommending clients to view it as a buying opportunity. That means having some cash available, and stock ideas on hand that could be put to work in a “cool and methodical” way.

Big Wall St, guru type investors have not been spooked by the sell-off last week. There are charitable trust took action and purchased stocks like Nvidia and Activision Blizzard on weakness. These are just some ideas going forward while market constituents watch the ebbs and flow with the market.

Despite the fact that everyone was freaking out, the positive backdrop for stocks didn’t change. We have low inflation, low interest rates, good earnings and a weak dollar. So astute investors realise that sort of market environment can be very healthy in these dire times. Sometimes you have to look past the trees to see the forest!

Low inflation means that earnings for companies could be worth more in the future. Often considered by some as to be a huge wrapped up Christmas gift, as high inflation could erode the long-term value case for equities.

Additionally, low interest rates can act as a positive catalyst to spur business in the U.S., and prompt investors to buy stocks with strong dividends. There are no guarantees but the role of this article is to try and help readers weigh up the positives and negatives and make informed decisions from that.

Regardless of the positive implications of interest rates or inflation, some traders still have reservations. The first on the list would be that Congress is not in session currently. In this perspective, both sides of the aisle are at odds with President Trump. Thus, the market could move higher while Congress is not in session, and then be impacted negatively when it reconvenes in September. Hedge fund managers do watch the events in congress to make important decisions with their trades. So that might mean the stock market sits on shaky ground the next few months.

Trading In Share Market

Those Days have gone, when you paid a lot of amount in brokerage while you had traded in share market. But those days, very few brokers offered trading in share market. That time, traders’ trade in share market traditionally, like through stock broker, or they put orders on phone. There was traditional and typical software’s for trading operated by dealers in share market. You don’t had any stock tip that time. Now we have lots of share brokers who offer stock trading with zero brokerage plans to trade unlimited in share market.
Now you have so many software’s through which you can trade easily. Now there are so many stock market analysts which provide share market tips. Almost every company offer mobile trading, with this it is very easy to trade anywhere anytime. Online account investors have access to their accounts 24*7 although market hours (trading hours) are from 9:30am to 4pm. As long as you have access to a computer and the internet, you can take steps to manage your finances wherever you may be. There are some important things below which makes trade easy and affordable now a days:
Web Trading: now it is not mandatory to install software on your system where you required some specification like window7, 2 GB RAM, 150 GB hard disk etc. when you trade through web trading. In web trading you just type URL of website login page, put the credentials like UCC and password for login. After login you can trade as you trade in software. With web trading you can trade in desktop, mobile, laptop and tablets because now every company web platform developed on html5 platform.
Trading App: – Almost every companies have software on android platform, on ios platform and on windows platform. Now can just install app on your mobile and trade anywhere anytime. These trading apps require only 10 mb to 20 mb to install. As in trading software or in web trading, you can also get everything on mobile app like charts, share tips, back office, online fund transfer, market watch, portfolio analysis etc.
Full Services: – now every broker of share market is providing full services like share tips, fundamental reports, call n’ trade facility, fund transfer online, free trading app, free web trading, limits to clients etc. These services always offered to whom pay more brokerage for trading but now you can get full services with minimum charges that will be negligible for you.