Let’s start with some basic terms used in financial markets.
As in the previous post we talked about the technical and fundamental analysis , so here we will discuss the terms used in common.
These terms will help you understand the market better.
So let’s begin with the word stock market : It is a place where there is buying and selling of equity shares of the companies.
What is a bull and bear market ?
BULL MARKET : When the stock market is at rise and the stock prices are rising is called a bull market.
BEAR MARKET : This is the opposite of a bull market , when the stock market and the stock prices are generally falling is called bear market.
BID: Amount that you want to pay or you are willing to pay for that particular share.
ASK: Amount for which you want to sell the particular share.
The following terms are generally used to sell or buy shares
MARKET ORDERS: This is an order to buy/sell shares at the market price. Market prices are generally volatile.
LIMIT: This is an order when you want to buy the shares at a lower price than market price or you want to sell at a higher price. Limit order saves you from market volatility.
DAY ORDER : The order that is only applicable/good till the end of the trading day. If the order is not executed till the end of the day ,the order gets cancelled.
LIQUIDITY: Liquidity refers to how quickly or easily you can sell your shares. If we have high volume in a particular stock of a company that means there is high liquidity thus we would not face a problem in selling our shares.
MARKET CAPITALISATION : This simply refers to the value of the company decided by the stock market. That is , the current value of all its shares put together.
INDEX : A stock market index is a way to measure the performance of the stock market . It shows all the changes that have taken place in the market. Nifty and sensex are the main index of India.
INTRA – DAY TRADING : Intra day trading means to buy and sell the shares on the same day and close all the positions before the market gets closed.
AVERAGING DOWN : When the price of the stock starts going down and as the price is going down you buy more and more shares. This decreases the average of your stock price.
BETA : This is the measurement of the relationship between the stock and the whole market.
BROKER: The person who sells or buys shares for you in exchange for a fee.
PORTFOLIO : This is the collection of the investments or stock that you want. The no of stocks can be as low as 1 and also infinite.
VOLATILITY: This is the movement of the stock price or the whole market. This is mostly used in intraday trading.
SHORT SELLING : When you short sell the shares and make a promise to the broker to return them till the end of the day.
So What do YOU people think who’s gonna win over whom !
Will technical win over fundamental analysis or vice versa.?
We might hear different opinions as there are different perceptions in this world . Some might say technicalities can help in a better way on the other hand some people might think fundamentals have more weightage than technicals.
Let me be clear about this with you people. According to me both have their own importance, it is nearly impossible to decide whether which one from the two of them is more important or carries more weightage in deciding the stocks.
How about firstly we talk about some facts related to the stock market.
The main thing that drives stock market or any other market are the sentiments . There are two types of sentiments FEAR and GREED. There is always fear of losing the money and greed of earning more right? Keeping in view these sentiments many people actually lose money in greed of earning more in less time.
The principal of success is DISCIPLINE AND PATIENCE
So Let us know today the roles of both ( technical and fundamental ) analysis .
Let’s start with the fundamental analysis .
Fundamentals of the company play a crucial role in deciding whether the company is great , good or average according to the requirements. This actually depicts the image of the company. You do not need a commerce background for reading the fundamentals of a company.
Fundamental analysis or financial statements include annual report, income statements , balance sheet and cash flow statement. Income statement shows what all profits or losses a company has made YOY ( year on year ) or quarterly , what is the gross and net profit of the company , whereas the balance sheet shows all the assets a company has and all the liabilities it contains. Cashflow depicts the cash that has flown in and out in the company. Annual report tells us about the management and what all the company has been doing during the whole year.
So by reading and analysing the data of the company we can decide whether this company will give us a good amount of return on our capital or not. Also after knowing the fundamentals we can see what the company has been doing in the past and make a clear vision about the company. Has it been increasing its profits and revenue and has it been decreasing its liabilities?
So this is all about the fundamentals of a company in a little detail.
Now let’s move to technical analysis
This is something that you need to study about in order to become a precise decision maker and have a clear vision of the direction of the stock.
Here are some terms included in technical analysis.
Moving averages and many more
These are some tools that help us locate the direction of the price and with the practice of these tools we can become a pro investor who can see at what price to buy and at what price to sell.
After studying properly we need not take advice or tips from someone for our guidance.
You can also read books that will help you out , how to manage your portfolio or how to manage the psychology during trading. If you need any help related to this topic you can write in the comments and can also mail us.
Read this book , this will really help you out in beginning your journey in stock market
According to the data it is proved that most of the people in the world lack money as they cannot manage their finances. People lack knowledge related to finance and how to manage their money . This is also the subject that is not taught in schools even .
So today let me help you with some knowledge about finance and let me help you with your finances.
As a Financial expert and an analyst I would help you do some research on the finances you want me to manage . By doing research and analysing the data of your company I would suggest some amendments if there . Get some new ideas for investments and manage the finances of the company or even for an individual .
I also help people manage their portfolio of investment as i have great skills of making a precise decision quickly and alo know how to manage pressure in some situations of panic . As a researcher i would look into the history of finances and will create some modules or charts needed in order to manage everything. I would likely maintain a good cash flow of the company so that it has a good amount of liquidity.
To elaborate What i can do for you
Gather Information : Gathering information where the financial position of the company or an individual . Taking out history to know more about the company of the individual so that we can know what mistakes were done in the past.
Organise Information: After collecting data we organise the data in the excel sheet so that the content is readable
Analyze Financial result : When the data re gathered and organised in the excel sheet then we analyse the data like what are the year on year(yoy) returns, what is return in equity(ROE) , Debt/equity ratio etc.
Make Forecast and projections: now that the historical data is analysed , projections and forecasts will be made so that we can understand where does the company stand and what is the future of the company and how is it going to perform. What will be the year on year growth etc.
Develop Recommendations: After forecasting we give recommendations about what changes can be made so that the company makes more profit and generates more revenue and how can the market share be increased and how to cut costs .
Build excel models : The last part is to create excel models especially for investment bankings, corporate development and financial planning.
Lastly, I would like to say that the most important thing we do is RISK MANAGEMENT and cost cutting . So while investing we do take a risk in order to make profit but we also manage the risk in some way.
Finance is something that we cannot live without or our country might not grow if we might not manage the finances of the country so this is a topic that everyone must need to know about .
I hope that after reading this article you might have got to know what does a financial analyst does and how we do our job.
Sanya : Hello sir , So what are your views about stock market ?
Sunil Minglani : hello! , I think that stock market is place where a person with his/ her knowledge can can go as much deep as he wants. The economy works with this market.
Sanya: Sir, What do you think that people those who are actively trading in India and abroad in stock market , commodity market and current market do trading for their living or just as a side hustle activity?
Sunil Minglani : You are absolutely right, there are many people who are dependent on trading and whose income is solely from trading. There are people whose full time job is trading in the stock market. How much money they are making and how successful are they, only they know it better.
Sanya : So how did you learnt this art ?
Sunil Minglani: I use to read 300-400 charts daily so that i could watch and understand that in what manner market is reacting. I use to read and note down whatever i thought was right and the next day i use check whether my prediction is correct or not. It alo use to take time sime some some weeks or even some months.
Sanya : That is really inspiring sir ! So according to you should we trade in F&O and do intraday or just investments ?
Sunil Minglani: As i told most people do intraday and work in F&O it i actually upto them . I have a habit of investing money for minimum 2 weeks which is the ultra short time according me .
Sanya : Sometimes traders see success due to “beginners luck.” There is F&O where one has to pay only “margin amount” and even the “lot size” has been increased now. When a new trader makes money using margin money, they get a feeling that this is a best thing to do for living.
Sunil Minglani: Brokers induce us to trade by providing margin money. You invest Rs. 1 lakh and the broker will give you Rs. 4 lakh margin money. He will give you the margin money until you have Rs. 1 lakh.
Sanya : What are the some of the trading tips that you would like to give to poeple
Sunil Minglani: People shuld have knowledge when they enter this market so that they do not loose their capital they have and investing for long term or short term is good option than trading with money as beginner .
Sanya: Thankyou so much sir for your precious time ! We today learnt alot from you .
Struggling to know what is Digital marketing and its fundamentals?
Don’t worry, I’ll help you understand in an extensive way.
“The best marketing doesn’t feel like marketing.”
– TOM FISHBURNE
Marketing is described as a medium or bridge between the consumers and the company . It is something which has become a necessity nowadays i.e digital era.
Let’s talk about the normal ads we see or listen to on our television or radio . What do you think? Do they create an impact on our minds? Yes, a powerful marketing strategy and an ad do create an impact on our minds and this is the reason big companies just spend millions of dollars on marketing.
Digital Marketing is actually becoming advanced in technology with our marketing skills and strategies. Nowadays consumers are savvy. They are very aware of what’s an ad, whether that be a banner on a website or paid search. The modern digital marketer needs to find ways where marketing is a natural conversation; not an intrusion.
Okay, so we might know some organisations or brands which do not do marketing like Zoom , Youtube,Quora. What they do is instead of just spending money on marketing they create a trust with their customers and being honest with customers is the key point in marketing.
Laws of Marketing
Do you people also think that digital marketing is complex because its main prospectus is convincing people?
No, convincing people for the product isn’t the main prospectus instead we can market our product as No.1 in a particular field .
Marketing is not based on creativity but actually it is science . It should be done in such a manner that it looks as if a real story or it can also be based on a real story so that customers can trust the marketers easily. We all know how our economy works with all the demand and supply. Whenever there is creation of a new product or there is demand in the market what do you think marketing is done already or will be done after the launching?
Here’s your answer: Marketing is always done before the creation of the product and the cycle of economy of demand and supply helps in the creation of the product and the needs of the consumers.
Marketing is about sending RIGHT MESSAGE , to RIGHT PERSON , at the RIGHT TIME.
Everyone here has a product or service to promote and there is a 100% chance that there are competitors of that product. So you people need to make a differentiation and that can be content. If we connect with our customers by narrating a story and exclusive content they can build a trust with the brand .
The promoters of the product have a mindset to attract the consumers and this can be only done if the product is unique and is being promoted to the right person at the right time and our product can be the leader in the market. For instance, the place you work you see everyone normally having black or brown coloured hair but one day you notice someone has coloured their hair as NEON PINK you will surely get attracted and notice……right?
We generally talk about pulling new customers with our marketing skills towards ourselves but it is not just about selling the product and attracting new customers instead to keep the existing customers satisfied and happy so that they remain customers for life and further they become our brand ambassador.
Marketing is a means to an end. The purpose of marketing is to build a brand and capture a position in the minds of the consumers.
Marketing is a game of perception and product is a game of reality.Marketing should never be more important than the product.
FOCUS = PRODUCT
Components of Marketing
In the end everyone should keep in mind that WORD OF MOUTH is the best channel for marketing.
Digital Marketing v / s Traditional Marketing
Talking about traditional market it cannot be said that Digital marketing can totally overtake
Traditional marketing instead can be said that if a product is generic with a very targeting – TV Ads can reach millions at a low cost. For instance, Maruti Suzuki everyone and anyone can buy a car . We cannot ignore the importance of Tv ads especially if we want to reach out
the entire country.
Digital Marketing can serve as the best medium to reach out to the people who are affluent in speaking English in India.
If someone wants to use radio as a medium it also has a reach of 65% of the Indian population.
Newspaper has a reach of 465 million people.
There are also cons of Traditional Marketing
Traditional marketing can take longer to execute and refine than Digital marketing.
A person cannot personalise in traditional marketing and cannot do deep marketing.
Natural marketing is also not possible in case of traditional marketing.
CATT MARKETING FUNNEL FUNDAMENTALS
Let’s introduce the formula of generating more sales and wealth in any sector.
Content is the center of attraction in marketing.
Want more returns on marketing? Check out this CATT funnel.
Here ^ denotes power.
NICHE[n] = Niche is something which decides your success and wealth. Finding a niche according to market requirements is essential. You can fulfill the requirements with your skills and strategies.
This above figure clarifies how to select your niche. To find a proper niche you need to fulfill all the 3 conditions which are:-
You must be Passionate
You must have Talent
And there should be Market Requirements.
Sometimes people fail if they do not complete these 3 conditions. They lack either of the conditions. So think about all the conditions and you will have a clear vision of your niche.
CONTENT [c] = As said above content creation is the key factor. Content can be any form like videos, blogs, emails, podcasts etc. we can connect with our customers emotionally by creating honest and useful content.
ATTENTION[a]= Grasping attention is increasing the traffic towards your content. Content is created in such a way to attract specific targets at the right place. Thi can be done through SEO, social media, paid ads. Categories can be divided like the attention of teenagers and adults can be attracted through social media advertising. The 30′ and 40’s age grouped people’s attention can be grabbed through TV ads and newspapers .
TRUST[t] = Building trust with your audience is important as it helps in building brands.
Trust can be built through deep marketing and also by personalizing the marketing. So that people can have greater vision about the product and can be satisfied.
TRANSACTION[t] = Now your niche is selected and trust is built so leads will be converted into customers . Natural sales happen as the framework which is designed is completed but even then you should make a sales webinar or generate different methods of sales . This cycle continues.
INTEGRATED DIGITAL MARKETING
People get excited when they hear that they can earn through social media platforms and start investing their time in it but the results aren’t great so they get disappointed. Trying separate segments doesn’t give results.
Some just use seo to generate sales or social media platforms to attract people and then they fail sometimes. The main center of attraction is our content; it is the only way to revenue.
You must understand and know your audience intimately. Otherwise you are not relevant to them. So, after understanding our customers what we can do is use the art of integrated digital marketing. When we combine different modules of marketing we tend to have greater chances of sales and can succeed in generating more revenue.Invest our time and energy in this particular machinery that can multiply our chances of winning in your particular field or business.
Modules which include in marketing are:-
Social Media marketing
Sometimes, we have a fear or insecurity that we might fail when we are going to enter a competitive market. Here’s a different perception that entering in a competitive market may also bring more wealth and customers. So, PERSONAL BRANDING is a unique angle through which we can enter a competitive world.
Personal branding is about managing your name even if you don’t own your business- in the world of misinformation, disinformation and semi-permanent Google records.
—- TIM FERRISS
Accordingly, to build your own brand the most crucial thing is commitment.
Branding demands commitment; commitment to continual reinvention; striking chords with people to stir their emotions; and commitment to imagination. It is easy to be cynical about such things, much harder to be successful. — SIR RICHARD BRANSON
The greatest example is Elon Musk. He has a greater following than spaceX and Tesla. If some day he establishes one more company he won’t have to waste his time and energy on building the brand again because he himself is a brand and has already gained the trust among people.
MASS TRUST BLUEPRINT
Trust is what we need to build for creating our own brand.
These 6 steps or stairs are the journey towards success:-
LEARN:- Learn new skills through facts, concepts . Understand the concepts and then remember the facts and bring them in practice.
WORK:- After learning new skills implement those skills in real lifePractice them through your own projects or freelancing. Practice makes you better and best.
BLOG:- Start writing what you have learnt and what new things you have learnt and what difficulties you faced during practicing.Writing improves your skills more.
CONSULT:- After having some experience now you create your own brand and instead of working for other companies you can consult for them and gain trust.
MENTOR:- When you start mentoring people about your skills and experience this improves your knowledge to the next level.
START-UP:- Now can start your own business or agency.
Let me just summarise , in this article we have mainly discussed the fundamentals of marketing, what laws can be applied while marketing. The most important thing is how to select a niche, all hurdles that some people experience and how to manage them .How our economy works actually. and then why personal branding is important and a mass trust blueprint . Hope you might like the content and learn something new.
We people generally come accross some common saying about stock market that it is GAMBLING.
What do you think? Most probably the same, right?
Okay, Let me clarify the word gambling.
Gambling is any work that is done without any knowledge. So if someone someday directly goes up in the market with all the money one has that is obvious that the person is going to loose the money. Anything done in life without the knowldge of that particular work is gambling.
I hope that the word gambling is clear and also in relation to the stock market.
Let me help you with the reality of stock market.
Well planned invesments in stock market can greatly contribute to our efforts in wealth creation. According to the survey Indians have been the one that appraoch the share market with cautions, this is because of the myths and misconceptions about the market. These myths have kept the potential investors away from the stock market and these peope loose the oppurtunity in generating finances for themselves.
All the markets are derived by two human sentiments that are GREED and FEAR. People have greed of earning more profits and fear of loosing everything. People who cannot afford much they have fear of loosing what they have so they donot take risk in life . But this is changing , The National Stock Exchange , for intance, has recorded a growth in individual investors from 17 lakh new investors in FY09 to 28 lakh new investors in FY19.
Here’s one instance from real life about gambling . Most of you might have heard or watched MAHABHARAT . You might have seen when two people shakuni mama and yudhishtra play chausar . Yudhishtra played over and over again thinking that afterall its a game and he may win next time but on the otherside for shakuni mama, it wasn’t a game as, he was well trained and it was his sharpened skill. Based on his experience , he was so confident about his skill that he never needed to give a thought to loose the game. And finally he won too. I think this proves the point of gambling .
SECONDLY, People have a mindet that if they have a lot of money only then they can invest in the market and earn more .
Majority of people think the same but again this is a myth . There is no restriction that you need to bring this particular amount when you enter the stock market. You can even enter the market with Rs.1000 . The biggest example we have is Rakesh Jhunjhunwala . He entered the market with Rs. 5000 only and today he is called Warren Buffet of India.
While entering for the first time money doesn’t matter but your management of money does matter. The key is recognise right company and what amount should one invest in one company. Everyone should first analyse and think several times before investing .
Discipline is everything. Only if you have discipline you can acheive everything.
For instance, if you take only 5% profits every month from what you have invvested . Suppose if you invest Rs.10000 and you take 5% every month with discipline, after 10 years you may make 3,58,98000 approx.
Isn’t this great!
Coming over to another myth
People believe on rumors and recommendations they receive from friends and family and then they loose their money. They buy the stock only on basis of some suggestions and do not study themselves about the lines on which stock market works . It is a myth that people think taking tips from others would make them win the market but ultimately they loose the money and curse the market. One should see the economic trends, business conditions and do some self research and make some strategies, manage the money accordingly.
Plan the trade and trade the plan ultimately fruits will be really fruitfull.
If one started without knowledge and booked losses, results won’t change if we don’t we don’t change ourselves. Like any other field of life if we don’t pay attention and don’t devote our time to our preprations, results will alway be depressing. There is no magic road to succes only hardwork is the key .
So far from the myths success story of the stock market lies within our determination .