Tag Archives: risk management

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.

Become A Successful Forex Trader

Following are few guidelines to become a successful forex trader

1)Set realistic goals- Before starting with forex trading it is required to decide what goals you want to accomplish. Having clear set of goals in your mind will help you to decide a better trading strategy which can help in fulfilling those goals.

2)Choose right pairs to trade- Though forex market is open 24 hours a day , 5 days a week there is some peak volumes hours which guarantees liquidity.Your success here depends on the pairs which you choose to trade with.Small traders with mini account are advised to trade in US currency against some other foreign currencies.

3)Never Procrastinate � Successful people never leave things on tomorrow which they can do today.The same path traders have to follow to succeed in forex.Try to seize every opportunity which will help in achieving your gaols.

4)Learn and practice- Understanding forex market is difficult.Having a vague knowledge about it is not sufficient.Before beginning to trade here learn about market and its related terminologies form authentic sources and practice trading using your demo account.

5)Be careful while selecting your entry and exit time frame-Traders often get confused by looking at charts of different time frames.Sometimes a weekly chart indicates a buying opportunity and at the same time intraday chart give sell signal.Synchronize your charts properly and when weekly charts gives a sell signal wait for daily chart to give the same signal.

6)Plan a wise trading strategy- Currency traders must have a clear vision.Different trading strategies like scalping, positional trade, swing can be used here.Traders should go for strategy which they are comfortable to use and also have a complete understanding of that strategy.Use your demo account to test different strategies without risking your money in the market.

7)Learn to accept small losses- Trading in forex indicates that your money is in risk. Make sure you only use that much capital which you can afford to loose and do not go beyond that limit.Keep a positive attitude and learn to accept small losses.This will help you manage risk in a better way and improve your returns.

Becoming a successful forex trader is more dependent on the mindset with which trader is trading.No trading strategy is going to give positive results until you a have proper mindset.Other market which is also preferred by large number of traders is commodity market.Gold is believed to be most liquid commodity and on large scale it is traded on mcx.Traders can seek help from financial advisors in the form of mcx tips, forex trading tips and more to earn good returns while trading in different markets.Becoming a successful trader in any market requires good patience and knowledge about market

Trading in stock cash market

1)Technical Analysis
2)Fundamental Analysis
3)Trading Based on News
4)Index Method based Trading
5)Stock Cash Tips based Trading
Technical analysis: In technical analysis the technical or the price movements of the commodities or the stock is analyzed. The previous or past price movements are taken as a basis for anticipation of future price movements. In technical analysis various index or indicators like weighted average and moving averages are calculated and plotted. For example one can plot 7 days moving averages and 14 days moving averages. When these graphs cross each other it gives a buy or a sell signals. Technical analysis is a whole in depth branch and to be experts in this field require a lot of effort and time.
Fundamental Analysis: In fundamental analysis the financial fundamentals of the studied to determine the suitability of the company for the investment. The profits incurred and the financial data shared by the company forms a basis of the investment.
Trading Based on News: The national and international news have a very strong impact on the price movements or the price fluctuations. Thus the latest news can be made as a basis for trading profitably and effectively.
Index Method based Trading: The index based method is related to the diversification of the portfolio of trader. The trader can invest in different sectors so that there is a mix of movement in case of downfall of a particular sector. This method has been found effective in making moderate profits.
Stock Cash Tips Based Trading: In all the method listed above, there should be a detailed knowledge of the tactics involved and knowledge should be of expert level to trade effectively and profitably. For a newbie who is new to the stock market or commodity market and don’t have much experience, they can rely on the advice of the stock market advisory firms which give advice based on the analysis by the above listed methods. These advisory firms have expert technical analysts and fundamental analysts who do in-depth analysis and give accurate stock market tips. We offer stock cash tips that are over 90% exact and will be in favour for benefits of our customers. Stock Cash Tips a system through which the intraday traders can earn. We give the calls with well tested SMS system which delivers the calls to you instantly so that you get enough time to enter the trade and achieve all the targets given in the call.
Thus above are the methods or strategies to trade effectively in the stock or the commodity markets.