Popular types of trading in stocks

First is Intraday trading, it is a form of speculation in securities in which a trader buys and sells a stock within the same trading day!

Many great investor's don't support this type of trading... Benjamin Graham says in his book the intelligent investor that Intraday is quickest way to financial suicide !

Second type is BTST /STBT :: Means buy today and sell tomorrow ! And sell today and buy tomorrow.. These trading facilities of BTST and STBT help the customers benefit from short-term price volatility in the stocks.

Third type is Short selling :: Short selling means you sell a stock first and then you buy it afterwards from your broker!

Here the difference between the price is your profit/loss! For example if you sell a stock at 100 Rs and afterwards you buy it at 90 Rs from your broker so here you got profit of 10 Rs per stock!

Fourth type is Swing trading! :: In Swing trading you try to capture a Swing in the market ! In Swing trading you hold a stock for few days to some weeks!

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Some lessons to be learned !! by Peter Lynch

Worth to remember !! 1. Never own anything which you don't understand. 2.Logic is the subject which will help you most in picking stocks. 3.Avoid Hot stocks and Whisper stocks. 4.Once you are able to explain the story to a guy who has 0 knowledge of stocks and he understands properly then you have a real grasp of a situation! 5.Try to invest in companies who has a strong balance sheet and less debt. 6.P/E ratio plays vital role... so compare it with the peer companies, the lower the better! 7.Never listen to professionals, kindly do your own research ! 8.Buying a company with mediocre prospects just because the stock is cheap is LOSING Technique. 9.Selling an outstanding Fast grower because it's stock seems slightly overpriced is a LOSING Technique 10.Market declines /Corrections / Recession are the great opportunities to buy great companies at cheap price!

Is Zomato worth to invest in?

Zomato is a great company, it's growth is tremendous! Nowadays there is lots of hype of Zomato's IPO Now How will you know it's a good company to invest in? So for that you have to check company's fundamentals.... so lets have a look , In FY2018 Net profit was -106 Crores In FY2019 Net profit was -1010 Crores In FY2020 Net profit was -2385 Crores So the company is getting loss year after year! The companys expanses is more then it's income! Also the stake of the promoter in the company is very less around 6% Approximately And the good thing about Zomato is it's growth In FY2019 YoY growth was 185% In Fy2020 YoY growth was 96% Summary At present Zomatos Fundamental is not good, But the growth is quite good... Due to the future plans of the company it can make profits in future but right now it's not good to invest your money in Zomato for long term ... But the hype is good and you can have a strong listing gai...

Are Bonds really safe ?

A bond is an instrument of indebtedness of the bond issuer to the bond holder . The most common type of bonds include government bonds and private company bond . Bonds are really safe investment then stocks ! Government bonds are alot safe then some companies bond , Issuer issues bond with coleteral which i s very good . Bonds are of many types Fix rate interest bond , Variable interest bond and some more ! Benjamin graham (Guru of warren buffet ) always says, that you have to put 25% of your capital in bonds and remaining 75 in stock . Its like diversifying your portfolio which is good. Spread it as you build it . See if you have 1,00,000 Rs then you should not put 100% of your capital in stocks ... You should divide your capital into some parts like 25% must be invested in bonds (unwritten rule) and 10% in gold and remaining in Stocks i.e. 65% ! There is a saying ‘‘ spread it as you build it ’’ ! So Always divide your capital into many assets ! Some say bond's and debentu...

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