Buying and Selling Stocks Frequently – Common Mistakes
As the exchange commences business every morning; a range of financial news channels play a trendy adrenaline pumping music. A market opening countdown timer adds to the excitement with the millisecond number scrolling faster than the speed of light. The anchor of the show starts speaking loud and fast. Suddenly, green and red colored tickers […]
Insider Trading and Stock tips in Indian Stock Markets
On the 24th of January 2014, as the markets opened for trade, Ranbaxy share price declined 20 % on news of U.S. Food & Drug Administration’s (USFDA) ban on the company from sending its drugs and ingredients into the United States (*from the company’s production facility in Punjab). It was a sudden and sharp fall and by […]
Stock Market Operators-How Do They Do It?
Over the past 200+ years (and perhaps more) there have been many instances of dramatic rise and fall in the prices of things that are traded. At times this is market driven and prices rise and fall purely based on demand and supply; while on others, the price is made to behave that way. In the […]
Making Long Term Investment Decisions Based on Risk Profile
Since I get this asked a lot, I thought I’ll write a post on this topic. Note: I will assume that long term is 3+ years with some of the investments being purchased for a much longer period (read indefinitely). The problem with equity investing is that the line between trading and investing is blurred by the […]
Stock Market Outlook for 2014-Initial Public Offering of AAP
I always found the concept of ‘Value at Risk’ pretty interesting. Usually nobody ever pays attention to it until it is breached. I am not sure how many of you are buying this one but the value at risk for this political outfit is zero as it usually is for start-ups. Which means what? For […]
Stock Selection Criteria | Safe Large Cap Stocks
In the previous post I highlighted how even in the worst economic environment, well established and safe large cap stocks tend to perform well. It is in fact true that if one were to blindly buy any 5 out of the top ten stocks (by market capitalization) and hold on to them for a few […]
How share prices change – Equilibrium Price
Given what I do, it is not unusual for me to meet investors who have become extremely wealthy in the stock markets as also those who have lost a sizeable portion of their wealth. The very nature of the market is such that “for every successful investor there will be someone who lost money”. The quote below […]