Tax Implications for Intraday Traders and How Gains from Trading are Taxed LTCG or STCG?

Basics:

The stock market is second to none when it comes to investment, since many investors and traders actively participate in trading and profit from it.

There are two sorts of investors:

1.Those that keep stock investments for more than a year and report their earnings as LTCG (long term capital gains).

2.Those who keep equity assets for more than a day but less than a year are the second category of investor and report their earnings as STCG (Short term capital gains).

Every financial market has a variety of investors, each of which uses a different method to attain their financial objectives. As a result, each investor’s return on investment (ROI) may differ.

As a result, taxation on persons … Read the rest

Primary market IPO’s ? India IPO ‘s are increasing ?

The Primary Market:

It also known as the New Issue Market, is where new securities are raised and issued to the public for the first time. It is utilised by both new and existing businesses. For the purpose of raising long-term cash, the corporation issues additional shares and debentures. Securities are issued through the prospectus.

Businessmen, clients of the company, corporate workers, present shareholders, and others can buy new shares and debentures.

BENEFITS

  1. In comparison to the secondary market, there is less price manipulation.
  2. There are no brokerage fees, transaction fees, or other charges.
  3. It is unaffected by market movements.
  4. It contributes to portfolio diversity.
  5. Investors are given a share of the company at a certain price.
  6. It helps in
… Read the rest

Learn about the impact of FII- foreign institutional investments on the stock market

Today we will discuss about the impact of FII -foreign institutional investments on the stock market.

What is FII (foreign institutional investments)?

The term “FII” is often used among stock market investors. This is due to the fact that FIIs are entities that pool significant sums of money and invest in financial assets such as real estate, investment assets, and the stock market, among other things. Because they invest the majority of their money in the stock market, money inflows and outflows have a considerable impact on stock market movement.

When the stock market falls, several headlines appear in the news. For example, FII selling causes the Sensex to drop 1000 points. When foreign institutional investors (FIIs) withdraw their funds … Read the rest

Understanding the Stock market?

what drive the market?

Simple, buying and selling drives the market. no need to complicate.

Higher demand of stock and price goes up (more buyers than sellers)

Lower demand of stock and price goes down (more sellers than buyers)

what is bull market?

it is where Bulls are in charge that is a lot of buying taking place in market.

what is bear market?

it is where Bears are in charge that is a lot of selling taking place in market.

why do people give importance to volume?

Volumes are nothing but transactions taking place in the market like buying and selling. More activity can mean that there can be a price movement or price reversal.

What is more important

… Read the rest

Rakesh Jhunjhunwala 67 crores in 6 days

We all know about Rakesh Jhunjhunwala’s recent ZEE stock acquisition, in which he made a profit of 67 crores in just six days. Despite the fact that many allege it was insider trading, he may have been aware of the ZEE Sony merger news before it was made public, and thus purchased the stock before the news was made public.

According to a bulk deal report from the NSE, he bought the stock at Rs.220 on September 14, 2021, and the stock closed at Rs.260 on that day, giving retail traders time to invest in ZEE stock. From Rs.260, the stock rose to Rs.330 in the following week, yielding nearly 27 percent returns. We would have made substantial returns if … Read the rest

Trend Reversals using Volume analysis

Volume analysis

Using Volume Analysis, we can identify the price trend and assess the conditions that might lead to a reversal. Here, we will concentrate and cover on actual trend reversal patterns. All of the reversal patterns we’ll be discussing can occur in the overall market, in an index or commodity, or in a single issue. Our first three examples show simple trend reversal patterns in the prevailing macrotrend, or longer-term trend.

However, when volume is considered in the analysis, the picture becomes clearer. Take note of how volume activity increased during this choppy period. Choppy price action combined with an increase in volume is a sign of distribution when following a trend. When eager buyers entered the market, sellers … Read the rest

Why So Many Traders Fail in the Markets

Today, i want to answer one of main question in my own words

Why So Many Traders Fail in the Markets

This has been a nagging question in the back of many people mind. Technical analysts who are better than them exist, but they haven’t been able to turn their abilities into trading profits in many cases. This makes sense now that many have traded every day with full dedication but no success. Trading entails inherent risk due to the inherent ambiguity of the market conditions. Certainty, on the other hand, provides solace to the majority of people. The reason for this is that our minds are hardwired to look for evidence that supports our theories. As a result, when … Read the rest

Rich Dad Poor Dad book summary- Learning Trading psychology

Rich Dad Poor Dad book summary/my notes

It helps with Learning Trading psychology and how financial literacy is important for one to become rich etc..

 

Note: Firstly, Excellent book and I recommend everyone to buy this book if you want to learn trading psychology. Rich Dad Poor Dad was first published in 1997, and has racked up sales of 32 million copies in more than 51 languages. Endorsed by many celebrities including Oprah Winfrey, this book stayed on the New York Times best-sellers list for six years.

Rich dad and poor dad book review : 4.5/5 (spot on)

My Summary/Notes:

Simple 6 Rules explained here

  1. “The poor work for money. The rich have money work for them.”

The majority … Read the rest

Secrets of a Pivot Boss Summary – Value Area, VAP, POC, Pivot Points, CPR by Frank ochoa

Candlesticks Basics:

The body of a candle is the portion of the candle that extends from the open price to the closing price. White or green candles are used to indicate bullish sentiment when the close price is higher than the open price (C > 0). Bearish  Candle forms when the close price is  below the open price (C <O) which forms a black or red color candle and it signifies a bearish sentiment.  The candle’s top and bottom indicate the high and low prices of the bar in the chart. In cases where the high or low exceeds candle’s body, there’s an wick called a “shadow” or “tail”.

The distance between the candle’s low and high is … Read the rest