multibagger

Identifying multibagger stocks for SIP

A mutual fund house selects many stocks from different sectors and multibaggercreates a balanced portfolio. This diversification helps mitigating risk but it also polarizes your funds. Once a sector gets hit, the total fund value comes down. You cannot choose to shift away from these stocks and have to wait till it gets better. It is always wise to select a bunch of stocks yourself and bet regularly. There are more than 7000 stocks in BSE & NSE combined. It is like searching a drop in an ocean, tedious but possible. There are several factors on which a stock is screened before qualifying it as a potential multibagger. Given the technological tools we have today, it is a lot easier than it was a decade back. Before searching for a multibagger we must first decide on our risk capacity.

Ask yourself two questions:
How much can I save from my monthly income?
How much can I save from my monthly expenses?

Spend more time on the second question. Make no mistake, I am not asking you to decrease expenses. Just add a little more to your expense each and every time you spend. In other words, tax yourself. Transfer a percentage of the total expense to your trading account (call it an iTax, myTax or whatever you wish) but do it for every transaction you do. It might sound crazy but believe me, it works wonders!! You can either invest this taxed amount in certain stocks or use it as a risk manager when your stock trades lower than previous highs.

Now let’s search for the drop. Our ocean is made of different sectors and all these sectors are dependent on each other in one-way or other. There is no fool-proof way to find an ever bullish sector. Instead, find a visible problem the world is facing today and the sector which is directly related to solving the problem. For example, pollution is an alarming issue throughout the world and it is only getting worse day by day. Many governments have already started taking steps to control pollution in every possible way. Hence, we can find a stock which deals with pollution control. On the same lines is cyber security. Every business is online and all need to be safe. Companies which offer cybersecurity are going to be in demand, hopefully, in the near future. Next challenge will be to square in on a stock in this sector. That is where fundamentals of a company come in handy. Look at few important factors like Market Cap, Book value, P/E vs Industry P/E and Dividend yield. Check the financial trend of the company. Many growing companies report negative net profit but their net sales might still be increasing which is a positive sign. Above all this is the credibility of promoter group; make sure you have read their activities in the market.
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Systematic Investment Plans Guidelines

Benefits of Systematic Investment Plan (SIP)

“Disciplined investors built their own empire, others just made money”

systematic investment plans

Stock markets are for the rich, who can throw their money at anything and wait for a bigger fortune. This is the biggest myth I have ever heard and also the most common myth among retail investors. In the hindsight, this is the only place where millionaires are made from nowhere. All you need to do is to follow few strategies and stick to a discipline. Among many investment strategies in the stock market, Systematic Investment Plan (SIP) stands out to be the least complicated one. Investing in SIP is like learning to swim. The earlier you invest the greater your returns in the long run. There are two ways to invest in SIP. Either you choose a mutual fund available in the market or you can choose few stocks yourself and keep investing. It is like paying Pre-EMI. When you buy something and pay EMI, you are actually paying an interest to the bank thereby increasing the cost of the product you bought. The bank decides the interest and the EMI. Longer the duration, higher is the interest. You cannot skip an EMI and have to pay it on the specified date.  If you wish to… close in-between, you will have to pay a penalty. The interest rate fluctuates depending on the market condition.

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Contribution of Emotion in Investing

Contribution of Emotion in Investing

EMOTIONS ARE YOUR WORST ENEMY IN THE STOCK MARKET

Contribution of Emotion in InvestingEmotion plays an important role in many aspects of life. Most of the decision we take depend on our emotional quotient either directly or indirectly. It is no different in investing. Though it is impossible to keep emotion out of the equation, it is imperative to keep it under control. In fact, the success rate of our buying/selling decision in stock market depends unswervingly on this factor. There are two extremes between which decision making swings like a pendulum. Most of us react to these extremes. We are either too excited to calculate the risk involved in buying a particular stock or too depressed to identify intrinsic value of a stock when it is down. It is always important to take a balanced and an informed decision. Striking the balance is an art. It needs to be practiced over time. There are scores of channels, magazines and hundreds of analysts who often occupy our mind and ride us through different sectors and stocks. It is this ride which takes us to the extremes.

Seldom do we think about who gives them ideas?

How much do they make out of their own recommendations?

What are their intentions?

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Your financial goals: Insuring what matters most

This is the Forth day of course in a series of  7 called ” Your financial goals”

Insurance helps you protect what matters most in your life — your loved ones, your assets and your financial future. Insurance takes on many forms, some of which do double-duty as tax-advantaged investment, accumulation or retirement income vehicles, or ways to shape your estate plan.

Do you have the right insurance now?

Assessing your current coverage involves some reflection and review, starting with these questions:

  • How might unexpected events impact your family’s goals?
  • How will you provide for dependents if you’re unable to earn income or if you’re gone?
  • How do you determine home insurance policy coverages and auto liability coverage limits?
Forms of protection

Your financial plan may include a variety of financial solutions, such as cash management strategies, investments and insurance. To protect yourself against unexpected costs or events such as job loss, it’s essential to maintain cash reserves that you can access quickly, without penalties or loss of value. In addition to cash reserves, you might want to consider the following types of insurance:

  • Life insurance. The two basic types of life insurance are term insurance and permanent insurance. Term policies protect you for a fixed amount of time. Lifetime, or permanent, policies are designed to protect you and your family for the long-term. You can choose from life insurance products and coverage that offer a variety of benefit and premium levels, opportunity to grow assets in a tax deferred manner and more.
  • Long-term care insurance. According to the U.S. Department of Health and Human Services, about 70% of Americans who reach age 65 will need long-term care at some point in their lives. And more than 40% will need care in a nursing home.1 LTC insurance can help you protect your financial future and position you to give more to your loved ones.
  • Disability insurance. Without disability income insurance, a serious injury or illness could jeopardize your family’s income and lifestyle. Different policies offer varying benefit terms, coverage and definitions of disability.
  • Auto and home insurance. Make sure your coverage reflects the current value of your home and liability limits are appropriate for auto coverage with an annual review to protect your assets.
Other insurance considerations

A financial advisor can help you evaluate your current coverage needs. Together, you might consider:

  • When was the last time you reviewed your property and casualty coverage? Do you have the coverage you need?
  • Does umbrella coverage make sense for you?
  • What employee benefits are available to cover your insurance needs?

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Message for you(Trader/Investor): Google has the answers to most all of your questions, after exploring Google if you still have thoughts or questions my Email is open 24/7. Each week you will receive your Course Materials. You can print it and highlight for your life Goal.

Your financial goals ( 7 Days – Comprehensive Course)

  1. College education
  2. Business ownership
  3. Investment planning
  4. Estate planning
  5. Insurance
  6. Long-term health care
  7. Charitable giving

This Completes the List of Courses.

Wishing you a wonderful learning experience and the continued desire to grow your knowledge. Education is an essential part of living wisely and the Experiences of life, I hope you make it fun.

Learning how to profit in the Stock Market requires time and unfortunately mistakes which are called losses. Why not be profitable while you are learning?

Your financial goals: Estate planning

This is the Third course in a series of  7 called ” Your financial goals”

It’s never too early to begin thinking about your legacy or to shape your estate plan. Contrary to what many people think, you don’t need to be a millionaire to have an estate plan. An estate plan is an important part of any ongoing financial planning process.

Your life, your dreams, your legacy

Your legacy transcends money — it also encompasses your values. Your wishes and dreams may include using your assets to help secure your family’s future or you may choose to support another cause close to your heart. This might be your favorite charity, your community, or your place of worship, to name a few.

Elements of an estate plan
  • A will lets you specify your wishes, including how you want your property distributed, who will administer your estate and who will care for your minor children.
  • A trust holds your assets for the benefit of one or more people (you, your spouse, your children). You’ll need an attorney’s assistance to create a trust.
  • Life insurance proceeds are paid to a beneficiary at your death.
  • Gifts are transfers of property made during your life to family, friends or charity.
  • Tax exclusions are available as important estate planning tools. Consult your tax professional for details.
Preparing to plan your estate

Designing a legacy consistent with your dreams and values is a personal, often complex process. But it’s well worth the effort. Consider setting up a family estate planning meeting to help improve communication, prevent conflicts and let your family know what’s important to you.

After giving some thought to your wishes, including the needs of family members you want to provide for, seek the professional guidance and estate planning advice you need from your attorney, tax professional and financial advisor. To help you value your estate, you’ll need to take into consideration:

  • Current income and likely future income
  • Annual expenses
  • Current assets and debts
  • Tax implications of federal transfer taxes, state death taxes and federal income taxes

Message for you(Trader/Investor): Google has the answers to most all of your questions, after exploring Google if you still have thoughts or questions my Email is open 24/7. Each week you will receive your Course Materials. You can print it and highlight for your life Goal.

Your financial goals ( 7 Days – Comprehensive Course)

  1. College education
  2. Business ownership
  3. Investment planning
  4. Estate planning
  5. Insurance
  6. Long-term health care
  7. Charitable giving

This Completes the List of Courses.

Wishing you a wonderful learning experience and the continued desire to grow your knowledge. Education is an essential part of living wisely and the Experiences of life, I hope you make it fun.

Learning how to profit in the Stock Market requires time and unfortunately mistakes which are called losses. Why not be profitable while you are learning?

Your financial goals: Investment planning

This is the Third course in a series of  7 called ” Your financial goals”

A sound investment strategy is critical to helping your money grow and, ideally, outpace inflation. However, if you’re like many people, you may not have the time or the inclination to analyze how different investments or securities may fit into your portfolio and you may wonder whether you’re investing appropriately to meet your financial goals.

Clarify your investment goals

Before you invest your money, it’s important to identify and prioritize your financial goals, assess your risk tolerance and understand your investment options. A financial advisor can help you sort through your options and invest appropriately. Some questions to consider:

  • What needs and dreams are you saving for? Retirement, a home, education?
  • When will you need the money you plan to invest now?
  • What is your risk tolerance? Are you willing to invest in stocks that may rise and fall in value in the short term, but have the potential to deliver larger returns in the long run? Or would you feel better if your money was invested more conservatively?
  • Do you understand how different investment vehicles (stocks, bonds, mutual funds, real estate, etc.) work? And the potential tax advantages of each?
Develop an investment strategy

Working with a financial advisor can help you:

  • Assess your financial situation. Create a clear picture of your current financial situation, including analyzing your investment timeframe and your risk tolerance.
  • Understand investing options, such as investment types and accounts, to help you make decisions that are right for you.
  • Apply diversification. Invest in a variety of assets to distribute and reduce risk.
  • Allocate your funds. Spread your investments among different asset categories, including stocks, bonds, cash and real estate, a process known as asset allocation. This also helps dilute risk.
  • Monitor your progress. Revisit and re-allocate your portfolio regularly to make sure your investments are still aligned with your current needs and future goals.
  • Consider tax implications. Be aware of tax advantages as well as tax consequences so you can avoid paying unnecessary fees.

Message for you(Trader/Investor): Google has the answers to most all of your questions, after exploring Google if you still have thoughts or questions my Email is open 24/7. Each week you will receive your Course Materials. You can print it and highlight for your life Goal.

Your financial goals ( 7 Days – Comprehensive Course)

  1. College education
  2. Business ownership
  3. Investment planning
  4. Estate planning
  5. Insurance
  6. Long-term health care
  7. Charitable giving

This Completes the List of Courses.

Wishing you a wonderful learning experience and the continued desire to grow your knowledge. Education is an essential part of living wisely and the Experiences of life, I hope you make it fun.

Learning how to profit in the Stock Market requires time and unfortunately mistakes which are called losses. Why not be profitable while you are learning?