Bulls make money, Bears make money, Pigs get slaughtered !!!



                     People enter the world of stock market in the expectation of big money in short time. But making money in stock market is not easy at all, rather an uphill task. Sound knowledge & understanding of market, huge research work, monumental patience & discipline - are the qualities of a successful investor.
                    
                   Bull market is represented by a bull which attacks with its horn in upward direction. Metaphorically speaking, the investors have high confidence & stock price goes on increasing. Investors make profit after buying stocks at lower prices & selling at higher prices.

                       Bear market is represented by a bear which attacks with its paw in downward direction. Metaphorically speaking, the investors have low confidence & stock price goes on decreasing. Investors make profit after selling stocks (which do not exist in his portfolio) at higher prices & buying at lower prices.

                        Pigs are basically greedy investors who wish to make large profit in shortest possible time with huge risk & no market research. Ultimately, they book huge losses.


Happy investing !!!
দীপ
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Comments

  1. So,we can sell share/stock which is not exist in our portfolio, can you explain it? it is not clear to me

    ReplyDelete
  2. Of course! You can do it in Intraday Trading. Suppose one Company "X" is having bearish trend. One fine morning, you Sell that stock in intraday option of current market price of Rs.200/- with a target buy at Rs. 150/-.
    1) The stock will be automatically bought after reaching price of 150 on the same day to nullify share nos. in your portfolio. The difference of (200 - 150) i.e 50 will be your profit.
    2) Suppose, the stock does not reach 150 & it touches 190 during closing hour of market. Then your stock will be automatically bought at 190 and your profit is 10.
    3) Suppose, the stock price does not reach 150 and it touches 250 during closing hour. Then the stock will be automatically bought at 250. Then 200 - 250 = - 50, i.e. you will make a loss of Rs.50/-
    Got my point?
    May I know your good name please!

    ReplyDelete
  3. if company x current price 200 and i set target price 150 if the share price reached 150 (imagine at the end of day)my profit is 50.But the question is i bought it at 150(day end) when i sold it at 200.I am little bit confused

    ReplyDelete
  4. Pl. try to understand following points...
    1) Sell & buy option in Intraday trading will be executed on the same day
    2) You do not have company X in your portfolio but you sell it at 200. So you have -01 share (-ve)
    3) At the end of the day X is bought at 150. So net quantity of stock in portfolio is = -1 +1 = 0. Thus market is balanced.
    4) When you are putting sell & buy order in Intraday mode, you are supposed to speculate the bearish trend of the stock. So, downward movement will be positive and upward negative.
    4) You sell at 200, so 200 is your reference level. So, below 200 will be positive & above 200 negative.
    5) you buy at 150 at the end of session. So, you gained 50 in positive direction.
    6) If you buy at 250, this will be bullish trend opposing your speculation of bear market and thus negative 50 profit = loss of 50

    pl. comment!

    ReplyDelete
    Replies
    1. So,I can sell any share that is not in my portfolio(must be intraday) That mean company x current price is 200 but i can sell it 250.This is what you want to say?

      Delete
  5. Not at all! Pl. read what I wrote again.

    ReplyDelete
  6. You will Sell at current market Price & then buy at any target price .

    ReplyDelete
  7. Hey, thanks for the information. your posts are informative and useful. I am regularly following your posts.
    Nippon India ETF Gold Bees,
    Deluge Pharmaceuticals,
    Colgate Palmolive,

    ReplyDelete
  8. Thanks for your valuable information. stock investor is a stock related website which provides day to day information of the stock market.
    Marico Ltd
    Hindustan Petroleum Ltd

    ReplyDelete

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