You can change your life Forever with this- The 80/20 Rule

You can change your life with this- The 80/20 Rule

Also known as the Pareto Principle, describes the unevenness in the distribution of various elements in the society. It is a statistical distribution which states that 80% of any result is an outcome of 20% of the total observations. The 80-20 rule is a widely used concept in business, finance, and personal expenditure.

The 80-20 rule was established by French economist Vilfredo Pareto.
Pareto used the principle to explain the distribution of wealth in Italy.
In a garden, Pareto observed that 80% of the pea pods produced by 20% of the entire crops. He later went on to explain how this principle also worked in the distribution of wealth in the economy. The Pareto principle later spread to different fields such as management and financing.

As a stock market trader, it is quite common to realize that only a small amount of profits or losses influence any portfolio. It means that 20% of the holdings of an investor account for 80% of the portfolio growth. However, due to the uncertainties in the stock market, it is difficult to apply the rule in real time.

For Example

80% Sales volume = 20% Selected Products
80% Company productions = 20% employees effort

Bottom Line

The application of this 80/20 rule is to identify productive efforts. Again, its nowhere advised that one should completely ignore the rest 80%.

Trader builds $5 Billion position after realising he wasn’t trading in Demo account

Trader builds $5 Billion position after realising he wasn’t trading in Demo account

Harouna Traore, a Trader in France recently learned Trading from a Stock Market Institute in Paris was testing his skills in a Demo account. Traore opened a real trading account using Euro 20,000 during the Trading course.

He was using a british brokerage firm Valbury Capital’s platform and lost almost 1 million Euros. Little did he know it was the actual account he was trading on which got him surprised the moment he found that.

He says ” I was only thinking about my family “. Traore is a married man with two daughter, and he was thinking about the Million Euro loss.

but traders are audaciously bold, aren’t they?

He didn’t stop there and continued trading until he turned the loss into $11 Million profit firm cant keep profit

To explain the situation Traore called the Stock broker but the firm declared he was in breach of his contract and the holdings were both void and cancelled.

Traore later sued Valbury an Indonesia based financial Services for the profit of $11 Million profit realising but as per the company can keep up they did nothing unprofessional and wrong.

There has been a 15% declining in Valbury’s revenue from 2015 so this is a make or break case for the firm. As there is a Growth in the firm for more than $11 million,

Best Financial rule of thumb – The 50-20-30 budget rule

Best Financial rule of thumb – The 50-20-30 budget rule

The United States Senator Elizabeth Warren coined the 50/20/30 rule for income allocation. The basic idea of this rule is to put the disposable income of individuals to judicious use.

The rule states that after the deduction of taxes from the income, 50% of the amount should be spent to fulfil the NEEDS, 30% for satisfying the WANTS. Not to mention, rest 20% should be SAVED by the individual.

Needs

These are the expenses that are necessary for human survival. Such expenses include rent, medical expenses, groceries etc.


In addition, this category does not include any expenses that are dispensable or superfluous.

Wants

These are the expenses that can also be dispensed out and are not absolutely necessary. They may include eating out, Netflix subscription or high-speed internet.

Furthermore, They also include an up gradation to the needs of an individual, for example, choosing to eat costlier food instead of the less expensive one. Savings The last but most important part of your budget is saving. This includes making a contingency fund in your bank account, investing in mutual funds or in the stock market.

How to control your fear and make more profitable trades ?

Why most of the new traders make mistakes?

Fear is the reason behind most of the trading mistakes new traders make. Be it in terms of losing money, missing out potential profits or uncertainty, fear always comes along while trading. Here are a few tips on overcoming such fear…

Analyze your trade setups

No trading strategy is a full proof guarantee of profits. Every trader needs to realize that no amount of analysis can fully eliminate the uncertainties of trading, only then can he trade freely without fear. Deciding what trades you should take to is one of the biggest dilemmas for a new trader. Analyzing your previous successful trades and calculating their probability of repeating can help eliminate such confusions. Then, all you’ll have to do is to wait for a trading setup. If you are unable to do this, then you’re doing nothing but gambling even when there were high chances of the stocks generating high returns.

Prepare yourself well

Fear itself is afraid of confidence and preparation is what creates confidence. You can not make a living out of trading if you do not prepare and are dependent on others for trading. If you’re doing nothing but following others, you will never be able to overcome fear because there is always a plethora of aspects that are left unaccounted Before beginning a day, you should have the entire plan ready for the list of your stocks. You should be well aware of all the key areas of support and resistance, the amount of daily loss and what the float is. Prepare for as many setups as you can.

The risk in proportion to your account size

Perhaps, the biggest cause of fear while trading is to risk much more than what your account allows. For an instance, if you’re trading a Rs 15000 account on 1500 shares of X, you’ll find yourself shaking in fear. Youll either not stop where you’re supposed to or give up too early. It is always ideal to roll out 1-2% of your account to let the trade play and not put all the money at risk.

 

5 Steps To Successful Swing Trading

Swing trading is one of the most popular trading styles among traders with a full-time job or the ones who cannot keep a check on their investments every moment. It is a perfect balance between day trading and “held up investments”.

It does not require much time and yields a much larger profit over a year. Here are the five steps to perfect swing trading:-

1. Gain knowledge

A trader’s job is no less than any other profession, so if you strive to be a successful trader, it is necessary that you gain a decent amount of knowledge before putting your hard earned money on the line. Every trader spends months of studying and research before actually entering into a trade. An understanding of the basics will also help you figure out what style of trading best suits you.

2. Plan out your trade

Swing trading, in general, as a high potential of generating maximum returns as compared to other trading styles. However, profits might not be your only concern and therefore, it is necessary that you select a trading style that best suits you. Analyze different markets and go about the one that you feel fulfills your needs to the maximum.

3. Develop your trading community

You cannot learn each and everything all by yourself. To consistently grow your trading knowledge, you need to have a community of traders with similar goals as yours. A trading community will help you learn more from the experienced traders and their mistakes. Also, beware of all the scams that take rounds all over the internet. In Delhi, the Institute of Stock Market is one of the best institutions providing courses in the stock market trading. You can visit their website here.

4. Use trade simulators for practice

Having set up all your foundations, it is necessary that you practice trading on a simulator for a few weeks before entering in a live trade. This will help you know how profitable you will be in the long run and the areas where you need to focus more. Practice on various setups and select the one for live trading that yields the maximum profits with a minimal risk.

5. Begin with smaller trades

Real trading is much different than the ones on a simulator as there are many emotions attached to it. It is always advisable that you start with smaller capital size and gradually increase it over time, gaining consistency. Start with setups that you are confident about and slowly build diversity in them.

 

Checkout our new share market courses , click here  https://www.ismdelhi.in/

BSE SENSEX

INDEXBOM: SENSEX    35,288.36 −186.15 (0.52%)

 

NIFTY 50 NSE: NIFTY    10,621.35 −34.85 (0.33%)                                                                                                        

#sensex #moneycontrol #sensex today #nifty share price #nifty #NSE #BSE #SGX NIFTY #bank nifty #bse sensex #NSE nifty #bseindia #nifty 50 #nse india #share market #mutual funds #bse sensex today

Is it necessary to keep a Stop loss in your trade? The MoneyControl Way

Is it necessary to keep a Stop loss in your trade? The MoneyControl Way

To become a successful trader, it is necessary that you set a daily maximum loss set before you begin share trading for the day. It refers to the maximum amount of loss that you will allow yourself to lose in a given day. It is highly important for a new stock trader as they are more vulnerable to overtrading. Every trader goes through a stage where he incurs losses. It is a point where a trader does not want to stop and keep trading until he covers up the losses, which leads to an incessant series of losses.

Sometimes it may cause them to lose months of profits in a matter of hours. One should know when to put an end to such blind losses. You should set a given percentage of your account for losses.

Never risk it all in one go

Don’t use up the maximum loss for the day in a single trade. If you make several trades in a single trading day, it is important that you use a specified amount of your maximum loss in a single trade so that you have a chance of recovering your current loss in successive trades.

Take help from your broker

You can set up a daily maximum loss with your broker. This will lock down your account once you reach the maximum loss count. This will prevent you from the “spend it all” attitude. Making provisions for losses is as important as making successful trades.

 

For more info, Check out our new share market course. Click the link https://www.ismdelhi.in/star-trader-pro-stock-market-course-with-100-job-guarantee/

BSE SENSEX  35,474.51 −300.37 (0.84%)

NSE: NIFTY 50  10,656.20 −107.20 (1.00%)

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8 movies that will awaken the Trader inside you

8 movies that will awaken the Trader inside you

Whether it is a hiatus of the bullish period or the life story of a
corporate leader, movies never fail to showcase us these
events and teach us a lesson or two about the market. Here’s
a list of nine of films about Stock market, economy and
finance that are a must watch:

Image result for wallstreet 1987

Wall Street (1987)

Directed and co-written by Oliver Stone, starring Michael Douglas and
Charlie Sheen as the main characters. The story is about Bud Fox who
admires and desires to work with Gordon Gekko, a wall street legend. The

movie shows the rise and fall of both the protagonists. The sequel to the
movie is Reuters.

Image result for glengarry glen ross (1992)

Glengarry Glen Ross (1992)

The movie is an adaptation of the Pulitzer prize-winning play by David
Mamet. The film revolves around four treacherous salesmen who resort to
unscrupulous.

Image result for Rogue trader (1999)

Rogue trader (1999)

It is a true story about Baring Bank’s star derivatives trader, Nick Leeson.
His reckless trades eventually resulted Barings Bank going under in 1995.
The movie is based on Leeson's book Rogue Trader. To cover up one bad
trade, Leeson dealt in a series of derivative contracts which cost Barings,
the world's second oldest merchant bank, $1.3 billion.

Image result for gafla

Gafla ( 2006 )

The reason why this film makes it to the list is the fact that it is loosely
based on the life of Harshad Mehta and how he single-handedly straddled
the entire stock market and the banking sector.

Image result for Inside Job (2010 )

Inside Job (2010 )

Not exactly a movie, but a five-part documentary on 2008 financial
crisis, aiming to showcase the banking practices that led to the crisis.
Former RBI governor Raghuram Rajan has also appeared in the film. He had
predicted the crisis as early as 2005.

Image result for Too Big to Fail ( 2011 )

 

Too Big to Fail ( 2011 )

The television film showcases the efforts of the US government and the
federal reserve to salvage the predicaments arising out of the collapse of
the Lehman brothers. The movie is based on Andrew Ross Sorkin& non-
fiction book by the same name.

Image result for Margin Call (2011)

 

Margin Call (2011)

The story revolves around a 36-hour long struggle of a doomed bank’s
employees as they try to overcome the potential collapse.

 

Image result for The Wolf of the Wall Street (2013)

The Wolf of the Wall Street (2013)

Did you really think that the list was complete without such an honourable
mention?! It revolves around the story of Jordan Belfort( Leonardo
DiCaprio), his rise from a stockbroker to renowned name in the Wall Street.

 

Image result for Baazaar (2018 )

 

Baazaar (2018 )

Starring Saif Ali Khan, Radhika Apte and Rohan Mehra. The movie revolves
around the malpractices such as Insider Trading and Hostile Takeovers.

How To Set Up Platform for NSE/BSE Trading

How To Set Up Platform for NSE/BSE Trading & Investing

The quest to become the ultimate share market trader is not only limited to your knowledge but also affected by the trading station you resort to. With the advancement in technology, it becomes all the more necessary to have a decent trading setup to get an edge over others while trading.

Understand the importance of Candlestick Charts

For day traders, prices of stocks play a highly important role which makes the use of candlestick charts a necessity. Candlestick charts are the type of financial charts that represent changes in the prices of stocks, derivatives or currency. As a matter of fact, all experienced traders tend to rely more on such charts instead of line graphs.

Selection of a time Frame

An individual chart represents the prices of a stock in a given time period.  For better decision making and analysis, it is important that you select a time frame that is neither too long nor too short. It is recommended that you study the charts on a daily time frame basis.

Selection of volume bars

Volume bars are the charts that represent the number of stocks traded in a given time frame. Volume bars are equally important in setting up your trading station.

Understanding Indicators

Indicators are the derived results and calculations that revolve around the prices or the fluctuations in the prices of stocks and are used for predictive purposes. They help us study the prices of a given security, reduce risk and decision making. Here, we take the help of moving averages. They are of three types, the 20 simple moving averages, the 50 SMA and the 200 SMA and each of them represents the trends of stocks for 20, 50 and 200 days respectively. Daily Chart 1. 20 SMA 2. 50 SMA 3. 200 SMA

Multiple Monitors

Additionally, It is advisable that you use multiple monitors so that you have access to multiple sources of information at the same time. An average of 2 or 3 monitors will provide you with an edge while trading.

Also, check out our new Stock Market courses with 100% Job guarantee click here

Article written by

Shivam Aggarwal

What are the tech necessary for Successful Stock Market Live Trading?

What are the tech necessary for Successful NSE Live Trading & Investing?

Using tech to get a trading advantage In the ever-changing world stock markets. One cannot simply expect to trade successfully without a decent level of technology. Earlier stock trading was limited to how loud a person could shout and agree upon a Stock Price. Today it’s electronic and easy. Newer technology and internet has become a necessity when it comes to successful stock trading in the Indian stock market today. Here’s a list of all the necessary tech, which I believe, is necessary for trading in the global stock market along with the proper stock market education from a stock market institute.

Hardware and Share Market Software

One should always make sure that, when trading, the system should have a decent amount of memory and a processor. It should be fast enough to not keep lagging incessantly. It is advisable to use multiple monitors for efficient stock market live trading(discussed below).

Stock Brokers can provide you with the user-friendly and reliable software to trade in stock market live. Different types of software packages are used by different types of traders.

For an instance, day traders mostly use software programmes that allow them to trade quickly.

It is advisable to remove all the redundant information, others may use software that allows trading and charting. Multiple Monitors Although, not a complete necessity, having multiple monitors provides you with an edge over other traders in the world stock market. It enables you to access and analyze data from various sources and keeps you up to date. However, one should keep in mind that too many monitors can also be a bane.

High-Speed Internet Connection

The Internet is, probably, the most important asset for a successful stock market trader. The internet service you use should be fast enough to show web pages in a matter of seconds. Lag is the most undesirable thing a trader can expect to come across. Lag means a data slowdown where you receive old data instead of the latest one. A trader should try out multiple internet services and select the best one in the end with the least loading time.

You should always keep your smartphone data plan as a backup. In case, if the normal internet services go down, you can contact your internet provider to access the internet. Using technology to its full potential will always prove to be a great way to make trading in stocks less risky. Especially, will keep you in touch with the stock market news. To be more profitable and fruitful in the long run one should apply these tips in stock market live trading.

Would you like to know more about our stock trading live courses offered by the best stock market institute, Go through our new course https://www.ismdelhi.in/stock-market-courses-star-trader-course/

Wants to achieve your Trading Goal this year? Here are 5 tips to achieve  for Stock Market Beginners

Wants to achieve your Trading Goal in 2018? Here are 5 tips to achieve trading goals for Stock Market Beginners

There are many great components that go into our  Stock Market live classes including live webinars with Q&A sessions at the end of each one, a proven course format, experienced instructors, and much more.

Below are the 5 key factors included in our Stock Market courses that will prove vital to your trading success.

Trading Plan

In our Star Trader Course, we teach our students all of the strategies used for capturing a winning trade in the equity market. At the end of which, the students have to put together an actionable trading plan out of what they learned. This plan acts as a guide for implementing their knowledge in an Indian stock market. It gives you, the student, clarity and focus into your trading strategy. Once submitted, these plans are evaluated and once a student is given a green signal, they’re ready to trade.

Stock Market Recaps

At the end of each day in the Stock market, we conduct a market recap session, where we bring out the major changes that take place on the stock market today. After which we evaluate the best ways by which a trader could have made these trades. We also go through all the trades that we make each day during stock market timings and evaluate them. In the end, the students who have doubts regarding their trades can bring them up to the class.

Swing Strategies

All the trading strategies we teach in our stock market courses are dynamic and can be applied to different time frames. Likewise, Anything and everything that our students need to learn is available in the Stock Market course. Irrespective of whether you’re a day trader or a swing trader, you can start today. Full-time job seekers to become a part-time trader, our swing trading lessons will help you learn how to manage both and do it successfully.

Patterns to Trade in  world stock Market

The dynamicity of the course enables you to use the strategies in the world stock market. Want to trade in future or options? Heard anything new about cryptocurrencies? In short,  The focus on core trading principles is what makes our Stock Market courses vital. These include risk assessment, momentum scanning, and trade management. Thus, The lessons you learn here can very well be applied to all markets of stock market trading.

Community

To summarize, Our Star Trader Course gives you a lifetime membership to our online and offline community.  Furthermore, Traders can reach out and connect with hundreds of like-minded people and share knowledge. Students also share tips, stock alerts, and most importantly encouraging support! These are just a few advantages of being a part of a trading community compared to going at it alone. As a result, Having support from similar people can cut down on years of development time that you can use to grow your trading account.

Want to enroll today?  Check out our Star Trader course https://www.ismdelhi.in/stock-market-courses-star-trader-course/ also.

Always stay connected with the best trades of share market from the professional traders through whatsapp group.

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