Open demat account and shut the age old prejudices of off line trading

With the increase of the grip of media channels the stock markets have also increased in popularity. Just a few years back imagining a person sticking onto the stock market for hours was impossible. The lifestyle today, which banks highly on the technology, has welcomed share trading wholeheartedly. By mentioning technology I am stressing on the online share trading. People, especially who are net savvy, take few days to open demat account and start their constant eying on share prices. I like the system of online trading as it makes a trader omnipresent. A trader is vested with the access of watching share prices as well as keeping track of current news. Just imagine few years back, when we had to wait till the wee hours of next morning to know the current news.  

But in India we find people of different preferences of internet and thus there are people who abstain from online share trading. Probably the fear of security is the prime deterrent for the traditional traders to open demat account. I know many people who fear the computer itself and find it very weird that how can a share be stores in an electronic form. They are haunted by the question as to where the shares are stored and also their investment and the returns earned out of it. Such people should have knowledge about the underlying system of online share trading. I am not asking them to open demat account after reading my blog entry. But I expect them to come out of the unnecessary fear that is a common issue in every new trader.

Now what can keep the fear of traditional traders at bay? A detailed explanation of how the demat account operates, can earn the trust of the traditional traders on online share trading and demat account.

When you open demat account it appears as if the entire process is running within the computer itself but there is a long chain of physical transaction behind it. In order to open demat account an investor needs to open a savings account in a bank of his choice. Usually, a trader will be better off if he opens the savings account in s known bank rather than an unknown one. Once saving account is made the investor needs to fill the application form for demat account. This will require document verification.

Upon complete verification the saving account will be linked to the newly opened demat account. Henceforth all the monetary transactions relating to the demat account will take place through the saving account.

Now this is the real story behind the online share trading that many of the traditional traders aren’t aware of.  Once they get to know it they can have a hassle free trading immediately.

Staggering Gold prices offers golden position

Possessing gold is equivalent to pulling up the status as this precious yellow metal captures every human heart with its color and brilliance. Films and stories have plenty of evidences where the love of gold has been epitomized. So what makes it precious? Simply color and brilliance cannot be an accurate reply to this question. Gold price is a sky high today and shows no sign of dropping, yet people don’t refrain from buying it. Golden jewelries are getting costlier by each passing day, yet I have never seen people abstain from buying them. Neither have I seen gold investors intimidated by the high gold prices.

No matter where the gold prices stand eventually but it is not impairment for investors. Investing in gold is regarded as a safe method to stay out from the sudden shocks in share market. The towering gold price is the prime force that helps investors to hedge their position in stock market. Now there can be a question about why the price of gold always shoots up? The precious metal was used to make coins that were the medium of exchange in ancient times. People may cite examples of past to explain that gold itself is synonymous to value and thus its price will certainly appreciate. But I don’t put stress on such flowery statements about bullion and believe in the very fact. The major factor that influences the gold price in the market is the staggering quantity of gold held in the central bank of each nation in the world. Every nation has magnum stockpile of gold in the reserves of their central banks which has initiated the famous gold standard legacy. The gold standard can be a good reply to the question I raised above. It links the quantity of gold, held as reserve, with value of currency within a nation. I hope it is not much complicated for my fellow readers to fathom the mystery behind high price of gold after learning the gold standard.   

The precious value of gold is best felt by investors as they make best use of this metal to stay safe in share market. Unlike other commodities like food items or oil this precious metal has a strong ability of mitigating risk. Risks can arise in any form such as sudden market correction on share prices and equities if the general economic condition falls. I shall not be wrong to say that an investor’s portfolio consists of several share and equities. Fall in share prices can make his portfolio weak whereas a little share of gold can make up the loss easily. During the situation of hyperinflation also, the gold prices shoot up giving investors access to magnum liquidity.

Studded with so many benefits the metal now really shines bright showing a divine eminence to me and to everyone.

Don’t let market symptoms of share value win over you!

I find investors in Indian share market and also in other countries a bit balled up regarding the understanding of share value and share market. An upsurge in the share market is always a favorable event for investors as they tend to get attracted by the growing share value and buy them in hawkish manner. Similarly, the converse is also true when market declines and share values drop compelling investors to get rid of shares quickly. I can well understand the plight of an investor who is enforced by the share market symptoms to decide upon selling or buying. Putting in a simple way, share market decides the investment portfolio of investors who cannot make the distinction between share value and share market.

It apparently gives me a picture of seesaw where all investors tend to crowd at the same side failing to enjoy the real fun of oscillation. Striking a balance in financial market where the share values are subject to volatility is not an easy task, yet smart investors can do it efficiently. There is a need to change the way of looking at a share so that an investor doesn’t have to succumb by the forces of share market.    Most investors have the tendency to take a share as a widget. This diverts them from the real meaning where the share value defines the value of the underlying business. Owning a share of a company is in reality owning a company stock which offers ownership, no matter how small it is. Do we ever see that an employer sells off his business when the business worth gets lower by say 15%?   The reply is surely no. A business may have a less earning in a quarter because of its policy of expansion in a new geographical region or may be some other reason. The employer in this case acts with a business-approach, whereas a share holder in this case doesn’t follow suit with the employer. A share holder, looking at the fall in share values, decides to sell off the share immediately. And eventually the investor falls prey under the share market symptoms which shows a reduced share value at a certain point of time.

A businessman like approach should be developed within an investor to make his movements independent from the perils of share market symptoms. A constant study of the companies, whose shares form the investment portfolio, is inevitable. The power of knowledge can never be ignored and investors should take full advantage of analysis reports of various broking firms and equity and share research institutes to make his moves in the market smart and independent.      

Share market and investor’s sentiments: An intriguing study

If I am to rename the share market I shall award it with the title of “an investor’s paradise”. Investors of all risk appetite come to play in this market and as far as my knowledge goes everyone gets a bit of return. Today when financial market makes big news in Indian economy, investors march into the market with different expectation about returns of their investment. Financial institutes have a keenness to know how the investors set their expectation on share market. I often come across survey reports explain about investor mindset.

Most of the survey conducted so far gives a common message about the general perception about share market noticed in investors. In most cases it has been observed that investors find the economy of a country synonymous to the share market. This might sound a little off beat but the widespread of media channels has played a big role behind making this idea. I do comply with the fact that the stock market does responses to the movement of economic parameters. However, the response is not as much as news media channels present it before investors.

I cannot rule out the fact that share market and economy of India does move in the same direction. But at the same I should not mislead my readers that the movement is observed at the same time. An economy relies on reality and there is a cause and effect theory that works within it.  In case there is any weak economic parameter then its effect makes the economic health of a country poor. As contrast the stock market works instantaneously and doesn’t give an economic parameter to work upon the market. The effect of a poor economic factors, say for the example unemployment, is instantaneous in financial market.

I should blame the instant effect of any economic disruption over the share market on two crucial factors; hype created by news channels and investor’s sentiments. Now these two might apparently look like two distinct factors. But in reality the factors affect each other and form a cycle that intensifies a wee issue into a mammoth affair.

I can best explain the principle of mutually affecting each other by citing small example. Suppose the crude oil price has increased by 10% in India at a point of time. The moment this information is released from the state financial department’s desk, the news channels capture it readily and broadcasts immediately. Most of the investors are net savvy now and thus they react immediately on this news and the shares come under pressure causing the market to drop. This drop is solely because of the investor’s strategic intent of risk aversion. This mass shifting of investors in selling side creates news again which eventually affect the investor mindset putting the stock market in a passive mode. Thus the vicious circle takes a full turn. 

Learn the crucial moves of investment through Stock Market Games

How long have you wished to have a bit of more funds than what your paycheck speaks? May be a million times and that is why stock market lures you most. But getting extra financial leverage from Stock Market may sound intimidating for most young investors. Fear in investing in stocks is a common issue among investors and this originates mostly because of the lack of know-how about investment strategies. How about a hands-on experience on Stock market investing before you actually plummet into the market? This will surely sound great to those people who are waiting to invest on stocks, bonds etc. 

Risk of losing money haunts every investor, whether new or old, where they invest in a specific stock and start paying attention to stock prices with a fresh pair of eyes. Online stock market games are brilliant means to learn the moves of the market without the fear of losing money. Such games are designed thoughtfully and integrate every practical situation that arises in stock trading. Such games   absorbs a player for long hours as he will learn stock market terminology like buying long and short. You might be wondering, “If online games are a way to learn investment strategies than how much do I need to invest to buy such games?” to much of wonder, many of these games are free and a player will just need to have an internet connection to kick off the game. Besides, I have seen many gaming sites where upon a free signing up, members are offered variety of options to invest his virtual money. Playing just the stock market game without the use of money is not the only advantage. Additional benefits come from the options of extensive research on stock market and the provision of enquiring senior member about investment strategies. 

Typically these games provide a fixed amount of virtual money for trading once you start of the game. Now it is up to you to decide your trade moves. Whether you do it personally or by discussing with any expert, is purely your choice. Your cash reserve can grow in case you are playing well. A good player with fair knowledge on trading can earn points to win prizes and cash for further use. So it is time to hit a jackpot in this fake stock market where the gain is in terms of courage to face the real one.
If you want to buy shares then open demat account in india

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