Technical Analysis vs Fundamental Analysis...

Hello,

Reading of a stock like equity, commodity, means analysing the prospects and scope of the same. It is studying in detail the promising and weak factors of the same.

The analysis of a stock can be done either by Technical Analysis or Fundamental Analysis.

Technical Analysis means analysing Stocks on the basis of some data or statistics and jotting them on a graph / chart and predicting the future of that stock....

Fundamental Analysis means Analysis os a stock on the basis of the financials of the company, growth /scope of the stock, based on Accounting Figures..

I have learnt basics of both types of Analysis.. But, over a period in my career, my affinity towards Technical Analysis has grown more over Fundamental. 

In India, after the Satyam Computer Scam episode, I lost my faith on accounting Analysis, as it can be manipulated. 

You may say, the manipulation can reflect in prices of the stock, so how technical analysis would go right.

I would like to share my learnings and experiences about the Facts of both Analysis.

Technical Analysis Secrets by me are - 

1. Technical analysis funda is the same for everyone to know, still why I achieved another level of expertise but I understood the hidden analysis of Human behaviour pattern on it.

2. Like not every businessman becomes Ambani or Bill Gates, but every perosn can work on becoming the 'Out of the box Thinkers' ... So try to read between the lines 

3. There are so many types of Chart reading Patterns, but I feel master one and find your own and Study it thoroughly.

4. The only shortcoming in Technical Analysis is it will give great results, if one has a longer time frame for the data of stock to be analysed. It will struggle for a newer stock in market, with lesser data.. (Here is where, Fundamental Analysis plays a major role)

5. I mastered one type of Technical Chart reading, but over the period, utilised combination of 2 -3 patterns to give effective results.

Fundamental Analysis Secrets by me are :-

* It is the best for future prospects of a price of a stock.

* You need to be Accounting sound, but more than that, Statistically sound in various accounting ratios.

* Read, listen to anything related for a stock by the company owner itself or if it's a commodity, learn the properties properly and do an in-depth study of the same.

* Learn from other Analysts and follow which you feel better as a yardstick for your own growth in Analysing anything.

* The major drawback of Fundamental Analysis of a stock & particularly an equity is Hidden Facts or Manipulations of the True & Real Picture.

Hope this post was helpful to you. Share within your circle, who has an inclination towards Analysis of stock.

Thank you and keep commenting as to what you would like to see in my blogs...

Do Finance and Emotions go hand in hand ???!!!

 Hello,

I hope you all are doing good qnd are Financially, Health-wise Fit and Fine...

There are certain statements heard like 

Be Practcal when its Money Matters, Emotions have no place 

Invest and trade in markets without being emotional about it 

Don't get attached too much in Profits / Losses, etc.. etc..

Here are my Pros and Cons to this Debate :

1. Analsyis 

Financial Analysis on basis of the Fundamentals of the Company or Commodity or stock, is oure accounting and Number game.

 Analysis on the basis of Charts is study of numbers with human behaviour of investment. So, here emotions and thought process of investors can be out in graph and studied for further decision..

2. Profit & Loss 

It is human to be excited in gains / profits and sad during losses. So emotions do get attached to Money gained / lost. 

But the thumb rule in Financial markets, is to be disciplined while booking profits or losses than get emotionally attached to; and be greedy or fearful about the same.

3. Property or legal matters 

Hmmm... The main issues due to which courts have lot of work to do. 

Its legal right of heirs for ancestral property or property of parents. However, over the period of mankind, we see the Greed, insecurity factor overpowering the family emotions. Hence, lack of understanding & proper Value System; mandated the need of Courts, Counselors, Financial experts, Arbitrators, etc.

Finance over Emotions says to give importance to security of self and other members. 

4. Targets and deadlines 

The people working in Financial Service Sector or any Service and Sales sector would immediately relate with what I am trying to say.

I was in Financial markets and we had Brokerage targets, Sales targets. I have seen many instances where despite lack of Optimistic view on any investment, we have to make clients invest, based on the so-called Technical & Fundamental Experts. 

As such markets on Human behavioural pattern, still, at the end its money we are talking about. So meeting targets and deadlines are important to many industry people...

Cruel facts you see....

This topic came to my mind, when I surveyed and found insecurities, My personal broking firms' experiences, Death Will Stories, family disputes over money matters, Spiritual approach vs Practical Approach, etc. 

The advice to the Naive ones is to think practical and safe your wealth and do not show  your goodness and even I saw the hypocrisy prevailing in so called elders and being very emotionally attached to certain things... 

I have seen dual views in brokerage firms too and pressure built on junior staff. 

Though, Money is Money. It makes you overlook Emotions....

hope many would connect..

I would love to hear your comments....

Still, I believe the study I am doing based on Value based Co-existence, Has given me Positive Strength that inculcates Emotions over any finance....

RailTel Corp IPO listing.....

 Hi,

I have been getting various messages in IPOs to apply. I overlooked many, just browsed through them. But really not interested. 

Previously, investors have gained immensely through IPO subscriptions. 

For those who don't know, IPO is Initial Public Offering by a company to raise funds from oublic by giving the Public or Private entities to apply to their shares and participate in the growth and profits of the company. 

It has been seen that history of investment in IPOs have given many investors a decent gain even on listing date on the Exchanges.

So, recently, I came across this RailTel Corp IPO, to be listed on both the Exchanges (NSE & BSE)

Indian Railways are doing great and the prospects of them are so good, as its a growing economy with great scope for development in Infrastructure. 

However, I went through certain financials of the company, especially the P/E Ratio. It shows it is over priced. So the overall talk on the Social Financial platforms, show that the RailTel IPO is to be applied only for listing gains. 

Whatever be it, I find intriguing to read and see the prospects of this company. I agree it could be good for Listing day gains. But According to my financial Analysis, I think, it has lot promising returns to give to its investors later, if not so sooner...

Will keep you posted on this after Listing and say after 6 months of listing or maybe a periodic analysis on the same..

Disclaimer -- I have no personal investment or interest in this Company. I am a financial advisor, so giving my opinions about the same.... Baaki you all are aware of the line Beware of the Market risks ....😁

Indians Mentality to invest in Gold or Real Estate

 Hi all,

India has a history of abundance of natural resources and is bordered with beautiful, strategic landscape around.

The Indian history portraits a self sufficient country by Nature's blessings. So, we find a history of invasions, intrusions, wars.

Our ancestors were evolving and growing to explore the bounties of nature on them. As a kid, I have so many phrases like -

- Gold is the best form of investment

- Secure and Save for a better future 

- As money grows, invest in properties for a better future of children 

- Invest money for better infrastructure of country; in schools, hospitals, Old age homes, etc 

I am sure a lot of them would relate to the above statements.

The mentality of saving and securing thriugh investments, have cushioned the Indian Markets and Investors through world-wide deflation,  Credit Crisis.

However, I would not say that this type of investment is always prudent.. History of Investments help us not to repeat the mistakes done by our forefathers, but rework and plan better investment.

The whole funda of securing for future has proven to be a boon in such tough tjmes of Pandemics, but still, we have to also keenly watch out the hidden facts of risk-taking jnvolved, Whole lifestyle crisis for money running after Miney Vkncept, etc.

Hope it was a short yet useful vlog for the readers. Enjoy and happy Investing!!!! 

Indian Equity Markets at all time highs.... Which high is the highest???!!!

 Hello Friends,

Investment, cooking, digitally sound work were saviours in this Pandemic to many in India...👍

India has surpassed many expectations of people around the world. The Big Bulls of Indian Financial Markets have remained very optimistic and loyal to markets and investing in them from time to time. 

Be it, Harshad Mehta Scam, Lehman Brothers Doom, Credits Crash, devaluation of Dollar, Satyam Scam, Bankruptcies of Major Financial Institutions, High NPAs (Non-Performing Assets) of Banks, Financial Institutions, Govt Upheavals, De-monetisation, etc, Indian investors have taken the markets to new highs after every long Bear Phase.

So, as Nature, Markets also function on a cyclical nature. Hiwever, the difference is, there is always a new High waiting for the world to see!!!!

So, as an investor or trader, one gets donfused, what High to be said, its the final lap or no 😎??

Here are some interesting tools to help determine :-

1. Technical Charts are definitely drawn from history, but do help to predict future.

2. Promising nature of the Country, countrymen, Govt, etc,  to take India to newer heights,

3. Comparison of Indian Economy with other economies with terms of Growth and Development, Vision 

4. Scope for improvement, development

5. Money attracts money and Growth and Future Prospects also determines the direction of flow of money 

6. Study of Bond markets, Bullion markets, Commodity markets 

7. Patience and good study of work, economy, industry helps us instill the confidence in the markets 

So,I am sure, if we have the will, power, destination goals, we can definitely know that the high is not the highest yet. 

To keep businesses going, investment Schemes should be on the go and lucrative, otherwise, they will shut down.... 

However, always Remember The Disclaimers too, attached with any Investment Avenue....

Does a Finance Budget impact a common Man ?!!!

 Hello All,

Our Hon'ble FM, Smt. Nirmala Sitharaman, announced the Financial Budget today. 

When I was a Full-Time Financial Advisor working in Equity Markets, Financial Budget was a must listen thing to do. 

Financial Budgeting for a country and that too, a huge democratic country like India, is challenging, yet easy and very essential for all citizens.

But, now since I am not full time working person in Financial Markets, At certain point of time, only taxation part was the matter of concern for me. For that matter, I think for all individuals 😄😉😅

The thought process and efforts put by RBI and Finance Ministry in preparing India's Financial Budget, is commendable.

The Budgeting is essential for running the country smoothly and also be able to stand strong on the International Platform.

Coming to the question, Does a reading of Finance Budget, ever has impact on Common Man. Let me answer in following points :-

1. A common Man here I mean, is daily wage worker, labourer, a middle-class, lower middle class person, a worker who depends on daily earnings only, etc...

2. Taxation slabs and rates is what matters to majority of the public.

3. A common man watches Budget to see what all Govt schemes have come for either their work related or investment Schemes.

4. Many excellent Govt schemes for Public Welfare give good benefits and rate of returns too. Some schemes help to fulfill the basic needs of Food, Shelter

5. Rest big capital expenditures, fiscal deficit financing, Corporate policies do not have much significance to public. However, in last 5 years, I have seen a dramatic change in outlook of common public too.

The common man, now wants to know or talks about current affairs, whether it affects them or no. Which is a good change though. India is a growing economy and the more, the public gets aware, the more the educated the common man becomes, the faster the steps of our country towards development.

When to be Conservative and when to be a Risk Taker

 Hello,

The topic is an important and serious question in today's Multiple Investment Oriented Financial Market.

The conservatism or Risk taking is with respect to rate of Returns and where exactly our invested amounts are invested (dynamic equity markets or risk free or less volatile funds or bonds)

The volatility of markets makes an investment risky or non risky.

The following factors will help you understand when to Opt Conservative / risk free and Risky or High returns Investment Options :-

# Your age matters

# Your Current Financial health and Capacity to Generate Returns / Gains

# Your Short, Medium and Long - Term Goals with respect to Family Goals, Financial Goals

# Your Lifestyle 

# Current and Future Economic Status of the Country you live in and are invested in 

# Your own Nature of being Conservative or A Risk Taker always in every facet of life# 

 # Your knowledge about Investments 

# How sound and smart is your Financial Advisor or Wealth Planner or CA

These are some of the points I have put across for you to make your decisions. They are on the basis of my learnings and experiences...

Hope, it was informative blog.. Enjoy and Stay Healthy, Wealthy and Wise Always....

Fixed deposits - A saviour in Pandemic

 Hello Friends,

This is a personal experience shared here. This is to help people who are not systematic or have unplanned Invts and for that matter unplanned Expenditures too😀

There are various options of Secured and Unsecured Investment Options available today.

One of them, which is also to a great extent a Conservative Investment Option.  I.e. Fixed Deposit

Ofcourse, due to overall sluggish markets, this investment option Rate of return has also gone down.

Fixed Deposits are Savings that are to invested with either banks or any financial investment organisation for a certain Tenure, for which the Person gets a Interest at a Rate of Interest calculated annually.

My family person has passion for Gadgets and a tendency to spend (sometimes unnecessary too 😀) 

It so happened, with Unplanned Invts n Expenditures, there was a urgent need to make arrangements for routine expenses...

I applied a rule of Hands-on training for the same. Meaning, I told them to first write the expenses month wise and also Annual expenses. 

Then, I made them keep an amount equivalent to the expenses for that much tenure, to be invested in Fixed Deposit. 

Now, practically, they realised that at the time of expenses, the family had an amount that was invested for payment of that expense.

I know there are many other lucrative investment options too.. However, being a Conservative family, I could only suggest such tension free investment and all expenses were taken care of. 

The other benefit was, they could now save too for one's personal expenses and have additional savings that was so much helpful in such uncertain Pandemic times...

I have written Previous post on Contingency funds... That will also give a Clear view on dealing with such untoward situations... 

Hope this blog was useful and if you require any such suggestion. I am always at your disposal (but with a cost 😉)