India Expects Economy to Grow 5.5% This Year

India’s government Friday projected stronger economic growth this year as investments gradually pick up, but cautioned that a weak rise in revenue is weighing on efforts to improve finances.

The south Asian economy would expand 5.5% in the year through March, the finance ministry said in a report placed in Parliament Friday.

The projected growth rate is at the lower end of the 5.4% to 5.9% band forecast during the federal budget in July and reflects a modest recovery from the below-5% expansion in the past two years.

However, the government acknowledged that it faces serious challenges in improving its finances, which have been pressured by high spending and slowing tax revenue.

“Adhering to the fiscal deficit target of 4.1% of gross domestic product in 2014-15 is a major challenge,” the ministry said. “A pickup in economic activity in the second half of the year is critical to prevent a slippage.”

Indian executives and economists have been optimistic that India’s economy will recover this year from its worst slowdown in decades as the country’s new government hastens long-delayed policy changes to boost business and restore investor confidence.

Prime Minister Narendra Modi’s government has taken a number of steps such as to allow greater foreign investments and cut bureaucratic red tape, which have helped initiate an early recovery. But the lack of bold policy moves has disappointed analysts, prompting many to temper their optimism.

Data issued late November showed growth in gross domestic product slowed to 5.3% in the three months ended Sept. 30, from 5.7% in the previous quarter, stoking concerns that the recovery may already be losing steam.

Indian industry has been pressuring the central bank to lower interest rates for supporting the recovery. The government too has been supportive of its demand, even though the Reserve Bank of India has so far refused to give in to the pressure.

On Friday, the government raised the pitch for rate cuts, saying that the RBI’s interest rate policy appears to be “historically tight” given the sharp decline in inflation.

If the RBI continues with its current policy, real interest rates will reach levels last seen a decade ago when asset prices were surging and the economy was overheating, it added.

Top trading ideas

In State Bank of India (SBI) there is a trade, it is up around one percent so we should see it 

expiry somewhere over here only. So, we are suggesting a ratio trade where you buy 310 Call and sell two 320 Calls. You are investing close to around Re 1 or 0.50 paisa, that is our loss.

If SBI remains any value less than Rs 330 that is the maximum value you can lose. In fact if SBI goes any value between Rs 310 and 330 you will make profit and Rs 320 is where you will make maximum profit of around Rs 9.50.

If you look at metals, Hindalco Industries has been quite outperforming compared to Tata Steel or Steel Authority of India Limited (SAIL). After this at least short covering rally that we are seeing, it should remain anywhere between around Rs 150 on the lower side to Rs 165 on the upper side.

So, we are suggesting just from this expiry series perspective, sell 140 strike Puts of Hindalco. What is happening is because of the movements that we had in the last few days, implied volatilities are quite high at around 47 percent, hence even the 140 Put is available at close to around 0.45 paisa.

India remains attractive investment destination: Survey

India remains one of the most preferred investment destinations for global investors while domestic companies expect stable economic conditions in the near term, says a survey.

Leading consultancy EY said that Indian businesses expect stable economic conditions in the near term, both on the global and domestic front. Such a scenario augurs well for the country's M&A landscape, it added.

The findings are part of EY's recent Capital Confidence Barometer report, which is based on a survey of more than1,500 executives worldwide.

"India continues to retain its attraction for global investors and remains amongst the top three preferred destinations for investment," EY said today.

According to the report, political stability, positive credit outlook and upbeat expectations on corporate earnings are contributing to a positive outlook for the country's transactions environment.

About 56 per cent of Indian respondents felt that domestic economy was improved while 42 percent expecting the economy to remain stable.

"The government's focus on reforms to attract enhanced private investment, accelerate GDP growth rate and reduce fiscal deficit, have contributed to creating a positive environment for M&A," Amit Khandelwal, National Director and Partner (Transaction Advisory Services) said.

Technical tools used to predict stock market trends

Day trading in stocks is risky, more so if you are untrained. However, if you have an eye for spotting market trends, you can make a neat pile in quick intra-day deals. There was a time not long ago when trading was a simple game of buying and selling stocks based on one's conviction. Now, technical analysis- a science of predicting future prices from historical price data-has given investors new tools. "Technical analysis increases the probability of your call being right," says Abhijit Paul, assistant vice president, technicals, BRICS Securities. But, we reiterate what we mentioned in our report, "The Kick of Quick Bucks," in the October 2011 issue, though day trading looks easy, nobody can take the right call every time and there will be days when one loses money, at times a lot of it.

How it works

Technical analysis is done on the basis of historical price movement plotted on a two-dimensional chart. One reason it has become popular is that anybody can look at the chart and see how prices have moved.

For example, in the chart, Easy Reading, you can see open, high, low and closing prices of the Bombay Stock Exchange Sensex on July 7, 2011.

How to pick a stock

Good volume and volatility are a must to gain from trading. While volume should ideally be at least 500,000 shares, the stock should have a high beta, or volatility. This means if the index rises 1%, the stock should rise by more than 1%. Those who don't understand the concept should see to it that the difference between intra-day high and intra-day low prices of a stock is at least Rs 10.

Identifying the right stock and fixing a stop-loss level is a must, says Paul. One must stick to the stop-loss. Generally, stop-loss is fixed at 1.5-2%, which means the stock is sold if it falls 1.5-2% below the purchase price. Big traders generally fix stop-loss at about one-third of the expected profit. For example, if they expect a stock to rise 10% in three days, they set a stop-loss at a point the price falls by 3%.

Once you zero in on the stock, look at its volumes and price trends. Generally, higher volumes with higher price rise indicate an uptrend, but it should not be considered a thumb rule. "Volume is misread by a lot of people," says John Barrett, an instructor at Online Trading Academy, which teaches stock trading. Big volumes and large moves sometimes throw up big tops and bottoms, says Barrett. This means if both volumes and prices are increasing, it may be the last leg of the rally.

Stock Trends

Identifying trends is important. But how do you spot a trend? It's difficult, as the market never moves in a straight line. A stock will never fall continuously on a given day and rise on another. "Generally, higher highs and higher lows indicate an uptrend, whereas lower highs and lower lows mean a downtrend," says Shrikant Chouhan, senior vice president, technical research, Kotak Securities.

"Look at the trend. Look at news related to the stock," says Chouhan. For example, if the rupee is falling against the US dollar, it's common knowledge that technology companies will gain.

Analysts and market experts take the help of various parameters to confirm if a stock is a trade pick. The most used are available in any technical analysis software. These include 200-day moving average, relative strength index, moving average convergence divergence, or MACD, Fibonacci retracement and candle stick price chart. The terms may sound daunting, but software available nowadays makes technical analysis easy.

Moving Averages

One of the widely used tools is the 200-day moving average. You simply have to plot the 200-day moving average on the price chart. When the price of the stock rises above the moving average line, it's a buy signal, and when the price falls below the moving average line, it is a sell signal. One can also look the 50-day moving average or the 10-day moving average. Trading is a game of probability. So, you have to arrive at your own methods to decide which parameters suit you the best. In the graph, Moving Averages, you can see the Sensex movement compared to the 200-day moving average of the Sensex. The brown line is the moving average line. In February, the line went above the price bars and the Sensex started falling. When the 200-day moving average fell below the price bars in April, the markets started going up. In thegraphic, the Sensex is below the moving average, indicating bearishness. But this is just one parameter.

Relative Strength Index (RSI)

RSI compares the magnitude of recent gains to recent losses to see if an asset is oversold or overbought. RSI is plotted on a scale of 0-100. Generally, if it is above 70, the stock is considered overbought and so one can look to sell it. Similarly, an RSI of less than 30 indicates the stock is oversold and can be bought. In the chart, Relative Strength Index, you can see that RSI was near 20 in October 2011, signaling that L&T's shares were oversold. It reversed from 20 and the stock moved up.

Moving average convergence divergence (MACD)

This is a very important tool used by technical experts. You just have to select the MACD and plot it on a chart. The MACD comprises two lines, fast and slow. The fast line is the difference between the 26-day exponential moving average and the 12 day-exponential moving average. The slow line, also called the signal line, is the nine-day moving average. So, the blue line in the chart, MACD, is the fast line and the brown line is the slow line. With technology, these calculations are automated and a graph gets plotted at the click on the mouse.

When the fast line crosses above the slow line, it's a buy signal, and when the slow line crosses the fast line, it's a sell signal. The chart shows that the MACD is the best way to predict the movement of a stock.

Fibonacci Retracement

Fibonacci retracement is based on the assumption that the markets retrace by a few predictable percentages, the best known of which are 38.2%, 50% and 61.8%. So, when the market retraces 38%, it will generate either a sell or a buy call depending on the trend.

You have to plot Fibonacci retracement from the peak price. The software will give the above mentioned retracement levels. When the price reaches the 38.2% level and bounces, it means the price of the stock at which the chart plots the 38.2% retracement is the support level and you can buy. However, if the price falls below the 38.2% level, you may look at the price at 50% retracement level as your next support. The chart, Fibonacci Retracement, shows how the 38.2% retracement is working well for the Ranbaxy stock.

Support and Resistance 

You may hear or read technical experts recommending support and resistance levels. But plotting support and resistance and finding it yourself is a simple job. As you know, prices move in a zig-zag fashion and form lows and highs. A support is plotted at the daily low price and resistance at the daily high price. For example, in the given chart, Chouhan says he sees support of 4,700 for the Nifty and if the index falls below this, it may fall further to 4,300. He has plotted resistance at 5,177 levels. Take a look at how he managed to get support and resistance for the Nifty from the October 7 graph, Support and Resistance.

How To Avoid A Bad Stock

In stock market, you need to identify the good and the bad stock. You should be able to know how to avoid a bad stock. When you trade stocks you need to understand and also undertake some very important decisions based on how you are going to trade with your money in the Indian stock market. You should know the tips and tricks to invest in the stock market.

How It Works?

When you wish to go for stock trading, you should be able to know how it works. Normally stocks are traded for money. You should remember that the price of the stocks fluctuates throughout the day and so it is always advisable to buy stocks at a certain price in the morning and then you can sell it for higher price when the business closes. You never know when you are going to earn huge income or incur huge losses in your investments in the stock market. So, it is very important to understand the different functions of the stock market. You should be able to get all the information and also how different concepts of the stock market like NSE, BSE…etc functions in the economy. Unless you know all the functioning of the stock market, you would not be able to make good income from the investments that you have made in the stock market. So try to grasp as much knowledge as you can if you really want to make a mark in the stock market. You should be able to know the advantages as well as disadvantages of investing in the stock market.

Some Important Advice For You

Now let us look at some of the important advice that you need to follow in order to be successful in the stock market. The most important thing you should know is that you should never chase sudden move stocks. It is very important that you buy stocks before movement. There are many people who usually buy lots of stocks and this is the main reason why stock prices go up. You should always suspect of rapid shifts in price. It is a very habit for investors who tend to look for rapid movement and then jump on the bandwagon. So do not buy late. There are some greedy investors who set themselves up for a major and huge downfall. So it is very important that you remain patient when it comes to choosing your stocks. It is always better to stick to a patient stock investing plan.

The worst mistakes that many investors make while investing in the stock market is that they go by the advice of their friends and at the end of the day they are left with nothing as they lose all their money in the stock investment. It is very important that you make a good study of the market before you are willing to invest your hard earned money in the stock market. You should never be careless and go by the advice of your ignorant friends. Remember that a small mistake can make you go bankrupt.

Read Books Or Go Online

You should read different books on stock market or you can also research through the Internet. In this case, you can get some share tips and also be able to know the current market scenario. There are some websites where it provides you with online instructions on how to trade your stocks. There are also some investors that go for day trading. They think that this type of trading gives more profit but on the other hand there are some investors who do not wish to go for this type of trading as they think this to be very risky. Then you would also find some people that prefer mutual funds to stocks. They go for mutual funds as they find that investing in mutual funds is less risky than investing in the stock market. When it comes to reading books there are many books in the market where you will find a good listing of the stocks. So make sure you get subscribed to a newsletter where you can get all the latest news and happenings of the stock market.

So, it is very important that you understand how to avoid a bad stockso that you can save your money from investing in the wrong stocks. Make sure you get a good stock market consultant who would be able to help you in differentiating the good stocks from the bad ones. So do not worry at all if you have a good consultant. They are the one who would help you in choosing the best stocks in the market and also help you to choose the right stock for you depending on your requirement and budget.

Mutual fund VS Stock market

There are many people who have got the misconception that mutual fund and stock market are the same. So there is a big confusion between the two. So, we will discuss mutual fund vs stock market. But before discussing the two terms, you should know that the risk involved in the Indian stock market is much higher than the risk that is involved in the mutual fund.

What are mutual funds?
Mutual funds are not guaranteed by any government agency. The investor invests in the mutual fund and the money is then invested in stocks, securities, bonds…etc. There are people who invest in the mutual fund rather than stock market as they think that mutual funds are less risky.  There are many mutual funds that are available which can give you good returns in a short span of time. So it is you who need to choose which mutual funds you wish to go for.

Go for good research
When it comes to investment in mutual funds, it is better if you can make a bit research of the fund. You can invest in a mutual fund with a short sum of money. You can also choose how frequent you can make the premium. You can do it monthly or yearly as well. Whatever amount you opt for, you should always choose the amount that is affordable for you. You should never choose a premium that is too high. There are people who do not study the market when they invest their money in the mutual fund. They go by the advice of their ignorant friends and simply invest their money in the funds. At the end of the day, they find themselves bankrupt or less return. You should always check the performance of the mutual fund that you are going to invest your money.

Stock market
When it comes to stock market, it is considered to be very risky as there are many risks involved in the market. This is the main reason why investors need to make a good research of the stock market when it comes to investing their money in order to get good profits. They need to know the functioning of the stock market. They should know howNSE, BSE, NASDAQ…etc functions in the stock market.

It is very necessary that you come in contact with a good broker or a stock market consultant who can show you the right path to making profit in the market. Unless you are updated yourself of the stock market, you cannot make good income out of your investment. So, you need to be very careful as well as well informed when you make your investment in the stock market.  If you are interested in short term investment, then you can always go for day trading. But there are investors who think this type of trading to be very risky. So, if you wish you can go for the advice of a good consultant before going for day trading.  When you are making your decision to invest in the stock market, you should not be impatient. You should also not be in a haste to make your investment decisions.

In this stock market differs from mutual funds. So, you have come to know about mutual fund vs stock market. Do remember to make a good research for both of them so that you get the ultimate profit out of your investment.

Concept Of Day Trading And Day Trading Techniques For Individuals

The term day trading refers to the practice of buying and selling financial instruments. However it should be noted that it should be done within the same trading day such that all the positions are usually closed before closing of the market in the trading day. People who practice or participate in this type of trading are called day traders. A day trader actively searches for potential trading setups in the stock market.

What Is Margin Trading?

There are day traders that sometimes borrow money to practice their trade which is known as margin trading. There is no cost to day trader for the margin benefit since margin interests are typically only charged on overnight balances. It can be either extremely profitable or extremely unprofitable because of the nature of financial leverage and the rapid returns that are possible. High risk profile traders can generate either huge percentage of returns or huge percentage of losses in their cash. Thus day traders are sometimes portrayed as 'gamblers' by other investors because of the high profits or losses born by them.

Is It risky?

There are many people who considers this type of trading as risky and thus regulations requires brokerage firms to ask whether they have prior trading experience before entering into the market and also to whether the clients understands the risks of this type of trading. There are some strategies that relatively require sophisticated trading systems and software. Many day traders use multiple monitors or even multiple computers in order to execute their orders. Some of the traders also use real time filtering software which is programmed to send stock symbols to a screen which meet specific criteria during the day.

There are some concepts in the markets like BSE, NSE, and NASDAQ…etc that plays an active role in the market. Day traders may buy or sell many times during a particular trading day and so they receive trading fee discounts in return from the broker. So if you are willing to go for day trading, then you should make it a point to take some guidance from your broker so that you need not waste a lot of money in the market.

Day Trading Strategies

To some, stock market day trading is a good way to earn money with a bit of gambling. But you need to have some idea about day trading strategies so that you get good profits out of it. However once you get into day trading, then you have to devote your whole life into the stock market.

Prepare for ups and downs of the market
When you invest money in the Indian stock market, you need to be fully prepared for ups and downs in the market. The value of the stock may rise or fall down in a single day. So each trader makes his or her own strategy in order to earn maximum results. There are traders who do their trading from their computers but this does not mean that trading can be done only through the computers. There are some traders who make the use of their phones. Whichever method you utilize, but the main important thing which you have to do is to make a good research. You should be able to study the whole market very carefully so that you do not lose any cash investing in the stock market.

Avoid worthless rumors 
Apart from studying the market about NSE, BSE, NASDAQ…etc, you should also take some precautionary measures. You should always avoid worthless rumors about the companies by people who do not know much about them. This people just make you confused. So, you need to avoid this type of people. It is always better to buy stocks when they are available in low price and then sell them at a higher price in the market. There is a limit on the gains from a single share in the stock market day trading. So, you should always try to buy and change stocks in regular intervals.

Knowing the day trading strategieshelps you in investing the right stock and selling the same in the right time. If you do not have any idea about the market scenario, then it is best to go for a good stockbroker who would guide you for your investment and profit.

Currency trading in NSE and BSE, exchnages of Indian stock market

Have you ever heard of currency trading or trading in currency? We think most of you must be knowing about it. Trading in currency is the largest market on the planet. The magnitude of trading in currency exceeds all other equity markets in the world combined. As you must be knowing that all currency has got a relative value in comparison to other currencies on the planet. Trading in currency aims in purchasing and selling of large quantities of currency so that it could leverage the shifts in relative value into a profit making and you can extra cash.Past few months our own exchanges in Indian stock market that is BSE and NSE has also started currency trading.

Fluctuation In The Value Of Currency

There is always a fluctuation in the value of currency. There are mainly two reasons why value of a currency fluctuates. The first reason is due to the “real market” where outside visitors or investors wish to buy things within a country and they are forced to convert the currency they have or the domestic currency into the currency of the country in which they are buying within. Likewise when money leaves the country, people need to sell their currency for their foreign currency that they need to invest abroad.

The second reason for fluctuation in the value of currency is “speculation.” Now what is speculation? An investor will buy or sell when they feel that a given currency would act either strongly or weakly. This is the reason why speculation has a drastic consequences on a national currency and consequently on the economy of the country.

Benefits Of Trading In Currency

Trading in currency has got many real benefits like the stock exchange over equity trading. The spreads for trading in currency makes the cost to the trader very low as they are extremely low. As the volatility of the currency market is extremely high, traders can generate a huge amount of return on a given exchange

The currency trading market was very close to small investors. However in the past years, new technologies have given way to investors of all types. This is the main reason why people opt for trading in currency.

Types of Investment in Indian stock market

There are many people in this world that are not aware of three kinds of investments. They are stocks, bonds and cash. So let us have a look at the types of investments.

Stocks
Stocks can be scary for those people who are not aware too much about astock market functions. Well, if you are that type of person, then its time for you to sit on the Internet. There are many websites that helps you to understand about stocks and its functioning in the market and also about share tips like Sharetipsinfo.com . Now speaking of investors, you will find three types – conservative, moderate and aggressive. So when you realize what type of investor you are, you can invest in high risk investments or low risk investments.

If you are a conservative investor, then you would prefer to invest in the form of cash. You will invest money into mutual funds, treasury bills…etc as they are safe and got a low risk. Now if you are a moderate investor, then you would prefer to invest your money in real estate. And if you happen to be an aggressive investor, you would like to invest in high stock markets.

Bonds
Bonds are considered to be one of the safest modes of investing money. This is because bonds are backed by credit of a country’s government. If you are an investor, then you need not keep these for a month but you will be entitled to receive interests for the whole month. Isn’t this interesting? Again you do not have to pay any commissions when you redeem the same.But returns are quite low in Bonds that is the saddest part.

Cash
Cash is another type of investment. Remember that when you invest in a particular company, you need to make a prior decision or plan for how many years you are going to be in the Indian stock market.

So you have come to know about thetypes of investment in the market. Make sure that you make a good research of the overall market so that you come to know the ups and downs of a particular company and also do not hesitate to approach for a good and expert stock market tips provider or research house like Sharetipsinfo.

Looking For A Long Term Investment? Select Some Good Dividend Stocks

Dividend is the return that a company gives to its shareholders. When a company earns profit, it can either retain that profit for investment or can distribute the profit amongst its shareholders. In fact, most of the companies retains some part of the profit for further investment and distribute the rest of the amount as dividend to its share holders. Stocks that give time to time dividends to the investors are generally called dividend stocks. In reality public companies that earn profit on a steady manner regularly pay dividends to its share holders on a fixed schedule.

Dividend can be given in many forms like cash, property and stocks. In most cases cash dividends are paid to the shareholders through check or the dividend is directly deposited to the trading account of the share holder. The next most used form of paying dividends is the stock. Companies issue number of stocks to the share holders equivalent to the amount of declared dividend. Property is the least used form of paying dividend and this form of dividend is only paid to subsidiaries of the company or to one company to the other within a corporation.

Dividend stocks are preferred by most of the individual stock market investors, who invest in the stock market for long term. The dividend paid by the company from time to time acts like a regular source of income for them while they are holding the stocks. In fact while selecting the stocks for long term investment, dividend is an important criterion that is weighed by the investors.

But while buying the dividend stocks one must remember that paying the dividend is not the liability or compulsion of the company. The management of the company can always decide to reinvest the entire profit without paying any dividends to the share holders. So, it can never be guaranteed that a company that has paid dividends earlier will pay dividend in future as well. Actually dividends are paid by the companies to retain the long term investors and it completely depends on the management and the board of directors whether they will declare the dividends or not. Another drawback about dividend is that in case of dividend there is double taxation. The company pays income tax for earning the profit and the share holder also pays tax for getting the dividend.

Forecasting The Stock Market

If you think that you can forecast what is going to happen in the stock market, then you are wrong. It is impossible inforecasting the stock market because nobody can predict what is going to happen in the market tomorrow. You should be guided in order to invest your hard earned money in the Indian stock market. You should also keep in mind certain things before you wish to go for investing in the stock market. You can also trade online and make your investments. Let us see how you can go for online stock market.

About Online Trading

With the advent of the Internet it has become possible to invest in the market online. You get several choices when you invest your money online. What’s more, there are online traders who could help you in choosing the right stock for you. There are certain things you need to be aware of when you invest online. In today’s world there are many websites which have come that enables the trader to invest or trade online. There are websites that asks for your bank details and also your credit card details. And at the end of the day you are left bankrupt. So, always be sure that you have visited a secured and safe website in order to protect your cash.

How To Forecast?

Is it possible to forecast the stock market? Well there are a few ways where you can at least predict the future of the stock market directions. There are stock analysts who try to forecast the stock market. It is better you seek their recommendations when it comes to forecasting the market. They help you to give you some of the ideas where they can forecast the market. They use fundamental analysis where they try to evaluate the company past performance and also try to look at the ratio like PE ratio , PEG ratio ,earning per share… etc. They then try to compare with the market sector to see whether the company is undervalued or something like that. 

The next thing they do is to make use of the technical analysis because they think that the fundamental analysis does not give the accurate results. So they use charts and chart patterns like head and shoulder or say like cup and handle in order to see where the stock is heading towards. It is when you combine the two together; it seeks to give you a slight edge over other traders. So they sometimes use thetechnical analysis of the market.

Then, comes the use of simple proven strategies for stock trading. With the help of this technique, experts help you do it yourself by using different methods like delta trading, market matrix and so on. This process involves simple calculations or percentages…etc. You need to use your basic common sense and combine them together to get the accurate results. Thus you can get help from the experts in doing a research of the stock market in order to predict what is going to happen in the stock market in the future. But you should always know it is very difficult to predict what is going to happen in the stock market without having any knowledge of the functions of the stock market. So you need to be aware of the things which are important when you wish to invest your hard earned money in the stock market.

Go For Day Trading For Short Term Investment

If you wish to go for short term investment, then day trading suits you the best. There are many investors in the market who do not wish to go for day trading as they think that this type of trading has got several risk factors and they would end up losing all their money in the stock market. But in reality it is not so. But is you are looking forward to this type of trading, then you should always go for the best stock market consultancy. You should never regret that you have lost all your money in the stock market because of small mistakes like not consulting an experienced person in the stock market and the like. However, you need to have a proper knowledge about the functioning of the stock market. You should understand concepts like NSE,BSE, NASDAQ…etc. It is very important that you know every concept of the stock market because there are so many things that you need to know before you go for investing in the stock market.

So it is better if you do not go forforecasting the stock market. Always get a good stock counselor who could help you in investing the right stocks that would give good returns. Do not forget to read books on stock market and always take the help of the Internet whenever you get time.

Basics of investment – What the first time investors need to know

Are you amongst those who are making investment for the first time? If yes, you need to know about investment basics properly. If you’re investing in bonds, stocks, mutual funds or any other investment plan, then you are taking an important step in planning your future growth. Make sure you choose the right investment for yourself so that you may get good return with it.

Some tips you should follow as a first time investor

Read on to know some tips you should follow when you are investing for the first-time.

• Health insurance and savings for emergency – Before you begin investing, you should be sure that you have sufficient health insurance and emergency savings for you and your family. This is because investment is meant for increasing your leftover in the long run. Once you make investment, you cannot take back the money before the maturity period. Thus, it is always better to have adequate emergency savings and a health insurance before you begin your investment.

• Set your objectives and assess your finances – You must assess your finances from time to time. This way, you’ll be able to get a clear idea about the money you’ll require achieving your goals and the amount you can invest with time. Be clear about your present financial condition and plan your objectives such as education fees, vacations, down payment for home loan, home repair, car purchase, saving money, retirement savings, etc. These will help you plan your investment.

• Work out your time-frame – You will have to fix a time-frame that is practical and sensible depending upon your investment goals. So, if you’re making a short-term investment, it should be of 1-2 years, for medium-term, it should be 4-5 years and for long-term, it should be of 7-10 years. So, if you fix a time horizon for each objective, it will help you find the amount of money you require to invest every month.

• Select your investment option – You will have to choose your investment option that will suit your investment planning. It must be based on the time horizon to attain your objectives. See some examples in terms of goals. If you are investing for holiday vacation, then it is a short-term goal of 1-2 years. If you’re investing for down payment or child’s education, then they are medium-term goals. In case of retirement planning, you may invest for a period of 10 years or more than that.

• Diversify investments very carefully –While thinking to invest your hard-earned money, you should always consider diversifying the investment risks. This means reducing the risk by making investment in various assets. Thus, if one of your investments does not perform well, the other investment plan can secure your principal amount with good returns. Mutual funds are considered to be the best option for increased diversification. Being a first-time investor, it is better to invest in a mutual fund that is handled efficiently.

Thus, the above-mentioned tips will help you accumulate reasonable amount of money so that you can satisfy your future requirements.

A sneakpeak on the stock market investment for the beginners

When you’re planning to invest in stock market for the first time, it can evoke a combined emotion of exhilaration and intimidation. After the recent economic meltdown, most of the young people are planning  investment to secure their financial future. If you’re planning to invest in stock market, then you need to follow the steps given below.

Here are some of the important tips before you plan to invest in stock market:

1. Research before investment : Make sure you extensively research the market in order to avoid complications in future. Stock trading can be a difficult job; therefore it is advisable to research extensively before investment. If you invest in wrong shares or bonds, then there is a risk of losing your hard earned money. So, the beginners are required to acquire more information before they start investing. If you’re looking for assistance, then you can check different online forums. The financial experts can guide and help you choose the right investment plan for you.

2. Look for an online broker: Make sure you look for a low cost online discount broker if you don’t have yet. In order to invest in stock market, you need a broker. You need to sign up for a traditional brokerage account and it can be cheap to trade online. A proficient broker can help to assist you through the process, especially while buying and selling securities.

3. Keep aside a portion of your savings: When you’re planning for your investment, make sure you set aside a portion of your income for investment purpose. Make sure you start your investment by depositing small amount of money when you’re a beginner. Remember, the money you use for investment is hard earned and you leverage to make more money. Make sure you avoid thinking of investment when you find it difficult to manage your monthly expenses.

4. Determine about different types of securities: Make sure you find about different types of securities you’re planning to trade. There are various types of stock market investment other than the stocks. You can opt for Mutual funds, ETFs and stock options when you’re looking for investment options. You need to search for different types of investment styles you’re interested in before investing.

5. Extensively search for various securities: Make sure you extensively search for different securities when you’re planning to invest in stock market. Once you have completed your first investment purchase, ensure that you look for different securities. Well, the stock market may fluctuate on the basis of the market conditions and over all financial scenario of the company. Make sure you keep a check on the sound investment purchase to monitor the security to review the growth of your investment.

Therefore, you need to keep the above mentioned points in mind when you plan to invest in stock market for the first time.