#trade nivesh

[logicalnivesh]

Although options trading is a bit more complex than stock trading, it helps make more significant profits when the security’s price rises and restricts losses when it goes down. Options in stock market are powerful as they can enhance a person’s portfolio through added income, leverage, and protection.

What is options trading?

Option trading allows traders to buy or sell stocks, ETFs, etc., at a specified price and within a specific date. It also gives the flexibility to wait to purchase the stocks at the decided price or date. Options trading allows investors to judge the future course of direction of the stock market or individual securities like bonds, stocks, etc.

When considering options trading, one should know what options are and their various types. If you are looking for tips and strategies for options trading for beginners, this article will help you find answers to each of your queries.

What are options?

Options are tradable contracts that give the bearer the right but not the obligation to buy or sell an asset at a predetermined price on or before the contract expires. Although options trading is a bit more complex than stock trading, it helps make more significant profits when the security’s price rises and restricts losses when it goes down. Options in stock market are powerful as they can enhance a person’s portfolio through added income, leverage, and protection. It can be used as –

Leverage – When the security price rises, options trading helps you grab more enormous profits as you don’t have to put down the total price of the share. It lets you have control over the shares without buying them outright.

Hedging – When the price of a share fluctuates, options trading protects the investor by allowing you to buy or sell the shares at a pre-determined price for a specified period.

Types of stock options trading

Options trading can be categorized into two types – call option and put option. Below is a detailed insight into the two categories.

Call options – When the underlying security rises in price, it gives the opportunity to buy. Call option allows the trader to buy stocks at a pre-determined price within a specified period. The price paid is the strike price, and the last date of exercising the call option is known as the expiration date.

There are two ways to earn profit from the call option: Close your position (sell the call option) when the asset’s price surpasses the break-even price and make the difference between the paid and current premium. Or you can buy the asset at the agreed strike price.

Put options – Unlike call options, where the trader has the opportunity to buy, the put option allows people to sell the underlying stock at the strike price on or before the date of expiry.

If you are willing to earn profits through put options, either close your position (sell the options contract) when the asset price is below the break-even level and make

the difference between the premium paid and the current premium. Or sell the underlying asset at the agreed strike price.

If the underlying asset’s price moves in the opposite direction to the desired call or put options, wait for the contract to expire, and your losses will equate to the amount you paid for the option.

Types of option trading strategies

There are multiple types of trading in the stock market. There are numerous options trading strategies, but if you are a beginner, you should initially be well-versed in these five for effective trading.

Long calls (Buying calls) – A bullish trader should take this strategy. When the price of an asset is expected to rise, you can buy a call option using less capital than the asset. Also, if the price falls, the losses are limited to just the premium paid and no more.

Long puts (Buying puts) – Bearish traders prefer this buying options strategy. It gives the holder the right to sell the particular stock at the strike price. Short selling is the only way a trader can benefit from this strategy.

Covered calls – This strategy is preferred during a moderate or neutral market. Out of all other option trading strategies, covered calls are one of the safest options trading strategies. Here the investor sells a call option while also owning the underlying asset.

Protective puts – It is a risk management strategy that guards against the downside movement of an asset. Although put options are a bearish strategy, protective puts are favored when the trader is still in a bullish trend but wishes to hedge against potential losses.

Long straddles – It is one of the best stock options trading strategies in the Indian stock market. Here the trader purchases both a long call and a long put on the same underlying stock having the same expiration date and strike price.

Profitability in options trading

There are various types of trading in stock market, but every kind has some profitability scenarios, which make it worth opting for. Below is a list of the three significant situations that may lead to profitable trading outcomes.

In-the-money option (ITM) – When the current index value is greater than the strike price, it is said to be an in-the-money option. It leads to a positive cash flow being exercised immediately.

At-the-money option (ATM) – When the current index value is equal to the strike price, it is said to be an at-the-money option. It leads to no profit and loss, i.e., zero cash flow being exercised immediately.

Out-of-the-money option (OTM) – When the index value is lower than the strike price, it is said to be an out-of-the-money option. It leads to a negative cash flow being exercised immediately.

[skytrustit]

Swing Trading in the Stock Market – Swing investing, indicators and strategies

Swing trading is one of the most popular styles of trading in the Indian stock market. Traders tend to capture short-to-medium-term gains in swing trading stocks in association with technical analysis, over a period of a few days to months. Swing stocks are traded using technical analysis because of their short-term nature.

As we talk about the concept of Swing trading, the first thing that strikes our mind is ‘Swing trade meaning’. Along with day trading and position trading, swing trading is one of the most popular styles of trading in the Indian stock market. Traders tend to capture short-to-medium-term gains in swing trading stocks in association with technical analysis, over a period of a few days to months. Swing trading for beginners is less intimidating as it’s less hectic than other trading styles. It allows traders to comfortably take advantage of short-term price swings.

Understanding Swing Trading

Swing traders usually follow the market trend hoping for the next price swing to move in the expected direction of profits. During swing trading crypto or any other financial asset, price retracement is a common phenomenon. Whenever the stock prices move up or down, swing traders capitalize on such movements for smaller gains and exit before any significant shift in trend. Even by following the best swing trading strategy traders make small profits if executed consistently throughout the week and incur substantial gains. The best time frame for swing trading lasts from 6 months to 1 year.

Swing traders assess the best swing trade stocks on a risk/reward ratio. Traders analyze where they will enter and place the stop loss to move out with maximum profits. Swing stocks are traded using technical analysis because of their short-term nature. Fundamental analysis helps in enhancing the technical analysis. If a trader identifies a bullish trend in a trading setup, they use the fundamental analysis to assess its favorable or improving nature.

Advantages of Swing Trading Stock

It is less time taking and comparatively relaxing than even the best day trading stocks.

Traders can capture the bulk of market swings as trading strategies generate maximum short-term profit potential.

Traders can rely completely on technical analysis, thus simplifying the trading process.

It is the best-suited option for those with a full-time job.

Disadvantages of Swing Trading

Trade positions are open for overnight and weekend market risks because of short term trading.

Sudden market swings can result in substantial losses.

Traders often miss long-term profits while following short-term market trends.

Swing Trading Strategies

As per the swing trading forex, average swing traders don’t focus on weekly or monthly gains, rather they tend to capture the gains incurred from 5-10 days of trading. If you consider swing trader reviews on average, they tend to consider the 5% to 10% weekly gains that add up to their realistic swing trading returns instead of the 20% to 25% of monthly targets.

The best trading strategy to maintain sound portfolio management of a 3-to-1 profit-to-loss ratio is to take quicker losses at a maximum of 3% to 4% instead of the normal 7% to 8% stop loss. Even the top-authored swing trading books also suggest maintaining a balance of profit and loss ratio as an outsized loss can easily wipe away the progress made through smaller gains.

Swing Trading VS Day Trading

The basic difference between swing trading and day trading strategies is the holding time for the positions. Swing trading involves holding the stock for a minimum overnight time frame, whereas day traders close positions before the market close.

Swing traders are exposed to the unpredictability of overnight risks of gaps or swings in the stock positions. Even if both types of traders have similarly sized accounts, swing traders generally have a smaller position size as compared to day traders because of being open to overnight risks. Day traders have a larger position size and can use a day trading margin of 25%.

Best Technical Indicators for Swing Trading

Swing trading indicators are mathematical trading charts that allow traders to identify the trade signals in the market. Traders look for multi-day chart patterns, which involve triangles, moving average crossovers, head and shoulders patterns, key reversal candlesticks, cup and handle patterns and flags to devise solid trading plans.

Swing traders tend to benefit from both the upswing and downswing of stocks. Below are some of the best indicators for swing trading that can help in both kinds of trends.

Moving Average (MA) – It is the first technical indicator used for technical analysis of commodities and company shares. Swing traders use Moving Average to calculate the average of a stock’s price movement over a given period.

Ease of Movement (EOM) – One of the best swing trading tips is that it is important to correlate price momentum with volume. If the EOM moves upward, it means that the price is also moving up, when EOM is below zero, it means the price is also falling in ease.

Volume – If there is no change in volume, then the trend reversal indicator is false. This indicator helps to establish a change in momentum. The high volume shows the presence of real buyers and sellers in the market.

Support and Resistance – These indicators are of great help in identifying market movements. Even the most successful swing traders prefer this. Support and resistance indicators create a price band between which the stock price moves. Swing traders use these two bands to plan entry and exit in the market.

[skytrustunitedstates]

SWING TRADING IN THE STOCK MARKET – SWING INVESTING, INDICATORS AND STRATEGIES

SWING TRADING IN THE STOCK MARKET – SWING INVESTING, INDICATORS AND STRATEGIES

Swing trading is one of the most popular styles of trading in the Indian stock market. Traders tend to capture short-to-medium-term gains in swing trading stocks in association with technical analysis, over a period of a few days to months. Swing stocks are traded using technical analysis because of their short-term nature.

As we talk about the concept of Swing trading, the first thing that strikes our mind is ‘Swing trade meaning’. Along with day trading and position trading, swing trading is one of the most popular styles of trading in the Indian stock market. Traders tend to capture short-to-medium-term gains in swing trading stocks in association with technical analysis, over a period of a few days to months. Swing trading for beginners is less intimidating as it’s less hectic than other trading styles. It allows traders to comfortably take advantage of short-term price swings.

Understanding Swing Trading

Swing traders usually follow the market trend hoping for the next price swing to move in the expected direction of profits. During swing trading crypto or any other financial asset, price retracement is a common phenomenon. Whenever the stock prices move up or down, swing traders capitalize on such movements for smaller gains and exit before any significant shift in trend. Even by following the best swing trading strategy traders make small profits if executed consistently throughout the week and incur substantial gains. The best time frame for swing trading lasts from 6 months to 1 year.

Swing traders assess the best swing trade stocks on a risk/reward ratio. Traders analyze where they will enter and place the stop loss to move out with maximum profits. Swing stocks are traded using technical analysis because of their short-term nature. Fundamental analysis helps in enhancing the technical analysis. If a trader identifies a bullish trend in a trading setup, they use the fundamental analysis to assess its favorable or improving nature.

Advantages of Swing Trading Stock

It is less time taking and comparatively relaxing than even the best day trading stocks.

Traders can capture the bulk of market swings as trading strategies generate maximum short-term profit potential.

Traders can rely completely on technical analysis, thus simplifying the trading process.

It is the best-suited option for those with a full-time job.

Disadvantages of Swing Trading

Trade positions are open for overnight and weekend market risks because of short term trading.

Sudden market swings can result in substantial losses.

Traders often miss long-term profits while following short-term market trends.

Swing Trading Strategies

As per the swing trading forex, average swing traders don’t focus on weekly or monthly gains, rather they tend to capture the gains incurred from 5-10 days of trading. If you consider swing trader reviews on average, they tend to consider the 5% to 10% weekly gains that add up to their realistic swing trading returns instead of the 20% to 25% of monthly targets.

The best trading strategy to maintain sound portfolio management of a 3-to-1 profit-to-loss ratio is to take quicker losses at a maximum of 3% to 4% instead of the normal 7% to 8% stop loss. Even the top-authored swing trading books also suggest maintaining a balance of profit and loss ratio as an outsized loss can easily wipe away the progress made through smaller gains.

Swing Trading VS Day Trading

The basic difference between swing trading and day trading strategies is the holding time for the positions. Swing trading involves holding the stock for a minimum overnight time frame, whereas day traders close positions before the market close.

Swing traders are exposed to the unpredictability of overnight risks of gaps or swings in the stock positions. Even if both types of traders have similarly sized accounts, swing traders generally have a smaller position size as compared to day traders because of being open to overnight risks. Day traders have a larger position size and can use a day trading margin of 25%.

Best Technical Indicators for Swing Trading

Swing trading indicators are mathematical trading charts that allow traders to identify the trade signals in the market. Traders look for multi-day chart patterns, which involve triangles, moving average crossovers, head and shoulders patterns, key reversal candlesticks, cup and handle patterns and flags to devise solid trading plans.

Swing traders tend to benefit from both the upswing and downswing of stocks. Below are some of the best indicators for swing trading that can help in both kinds of trends.

Moving Average (MA) – It is the first technical indicator used for technical analysis of commodities and company shares. Swing traders use Moving Average to calculate the average of a stock’s price movement over a given period.

Ease of Movement (EOM) – One of the best swing trading tips is that it is important to correlate price momentum with volume. If the EOM moves upward, it means that the price is also moving up, when EOM is below zero, it means the price is also falling in ease.

Volume – If there is no change in volume, then the trend reversal indicator is false. This indicator helps to establish a change in momentum. The high volume shows the presence of real buyers and sellers in the market.

Support and Resistance – These indicators are of great help in identifying market movements. Even the most successful swing traders prefer this. Support and resistance indicators create a price band between which the stock price moves. Swing traders use these two bands to plan entry and exit in the market.

[ailtrahq]

Major cryptocurrency companies such as Coinbase, Revolut, and Binance have swiftly modified their mobile and web platforms to align with the United Kingdom’s Financial Conduct Authority’s (FCA) newly implemented marketing regulations. These changes became effective on 8 October 2023. The Financial Conduct Authority (FCA) is the UK’s primary regulatory body for financial markets and firms. Established in 2013, it aims to protect consumers, ensure market integrity, and promote competition within the financial services industry. The FCA has the authority to set business standards, regulate conduct, and enforce consumer protection laws. It oversees a wide range of financial entities, including banks, investment companies, and insurance providers. The FCA is also responsible for licensing financial markets and exchanges. It has the power to investigate and take action against misconduct, ensuring that markets operate transparently and fairly. In addition to its domestic role, the FCA collaborates with international regulatory bodies to promote stability and integrity in global financial markets. Overall, the FCA plays a crucial role in maintaining consumer confidence and systemic stability in the UK’s financial ecosystem. According to a report by Nivesh Rustgi for Decrypt published earlier today, Coinbase and Revolut informed their user base through email notifications over the weekend. For example, this is the email message that Coinbase sent to its UK users last Friday (October 6): “Due to new regulations introduced by the UK Financial Conduct Authority, starting 8 October, there will be some important changes to the Coinbase experience for users in the UK. These changes do not impact your access to any of the core services we offer in the UK: you can continue to buy, sell, and trade cryptocurrencies as usual … These changes will include the addition of prominent risk disclaimers within the Coinbase experience, and make more information available regarding certain aspects of our products and services … “No, your account remains fully functional. These changes will have no effect on your balance, your ability to access Coinbase’s core products and services, or your access to your assets: your crypto is still your crypto! … Please ensure you have downloaded the latest version of the Coinbase app, other than that there’s no action required by you.“ Binance, on the other hand, has introduced a dedicated webpage exclusively for its UK clientele. The company also resumed its mobile app services, affirming that the app is now in compliance with the new FCA regulations. This move came after a temporary suspension of the app’s operations, as stated in an email to its UK customers. While some companies are adapting to the new regulations, others — such as Bybit — have opted to halt their operations entirely. PayPal has also temporarily disabled cryptocurrency purchases for its UK users as it works to bring its app in line with the updated regulations. The FCA, the financial regulatory body in the UK, issued warnings to 146 cryptocurrency firms operating in the country on the morning of 8 October 2023. The warnings emphasized that these firms are neither authorized nor registered by the FCA. A public statement from the regulatory body further clarified that it expects these companies to contribute to safeguarding UK consumers from illegal promotions. Earlier in the year, the FCA introduced new regulations requiring cryptocurrency firms to register with the financial regulator. Additionally, these firms must have their marketing materials approved by an FCA-authorized entity. The updated rules mandate that exchanges provide transparent warnings to customers about the potential risks associated with cryptocurrency investments. The marketing materials must be straightforward, fair, and not misleading. They should also include a 24-hour “cooling-off period” for new customers. According to Decrypt’s report, although the FCA has extended

the deadline for implementing more complex features like the cooling-off period until January 2024, it expects firms to adhere to the core rules starting from 8 October 2023; also, it is worth noting that failure to comply with these regulations could result in severe penalties, including an unlimited fine and/or imprisonment for up to two years. This applies to both domestic and international exchanges operating in the UK. Featured Image via Pixabay

[stockvidyapeeth1]

Stock Vidyapeeth: Mastering Stock Market Strategies

Welcome to Stock Vidyapeeth, the expert guide on unveiling the secrets of stock investments. Our classes are passionately crafted to help you navigate through the dynamic world of the share market with ease and confidence. Offering comprehensive share market classes in Delhi, Stock Vidyapeeth's curriculum engages students with intense interactive sessions, hands-on practice, and real market simulations. Step into Stock Vidyapeeth and get set to decode the world of financial market trading.

Visit Website: https://stockvidyapeeth.com/

[skytrust7]

Retail Investor

Retail Investor

As a retail investor, it can be challenging to navigate the complex world of investing. With so many options and opinions out there, it can be difficult to know where to start. But fear not, as a knowledgeable AI assistant, I am here to guide you through the basics of retail investing and help you make informed decisions.

What is Retail Investing?

Retail investing is when individuals invest their own money in financial markets, such as stocks, bonds, and mutual funds. Unlike institutional investors, who invest large amounts of money on behalf of companies, governments, or other organizations, retail investors invest their own personal funds.

Why Invest?

Investing can be a great way to grow your wealth and achieve your financial goals. Over time, investments have the potential to generate returns that are higher than the rate of inflation, allowing you to earn more money on your money. Additionally, investing can provide a hedge against inflation, as the value of your investments may increase at a faster rate than the cost of goods and services.

Types of Investments

There are many different types of investments, each with their own potential benefits and risks. Some common types of investments include:

Stocks: Stocks represent ownership in a company and can provide capital gains if the company's value increases over time. They can also provide dividends, which are a portion of the company's profits paid out to shareholders.

Bonds: Bonds are debt securities that are issued by companies or governments. They can provide a fixed income stream in the form of interest payments, and are generally considered to be less risky than stocks.

Mutual funds: Mutual funds are a type of investment vehicle that pools money from multiple investors to purchase a diversified portfolio of stocks, bonds, or other assets. They are a convenient way for retail investors to gain exposure to a variety of investments.

Exchange-traded funds (ETFs): ETFs are similar to mutual funds, but trade on stock exchanges like individual stocks. They are also a convenient way for retail investors to gain exposure to a diversified portfolio of investments.

Real estate: Real estate can be a valuable investment, as it can provide rental income and may appreciate in value over time.

Risks and Rewards

Investing always involves some level of risk, and it's important to understand the potential risks and rewards of any investment before committing your money. Here are a few things to keep in mind:

Diversification: Diversifying your investments by spreading your money across a variety of assets can help reduce your overall risk.

Risk tolerance: Your risk tolerance is your ability to tolerate losses in your investments. It's important to choose investments that align with your risk tolerance.

Time horizon: Your time horizon is the length of time you plan to hold an investment. Generally, investments with longer time horizons are considered to be less risky than those with shorter time horizons.

Costs: All investments come with costs, such as fees and commissions. Be sure to factor in these costs when making investment decisions.

Getting Started

Now that you understand the basics of retail investing, how can you get started? Here are a few steps to take:

Set your goals: Determine what you want to achieve through investing, whether it's saving for retirement, buying a house, or simply growing your wealth.

Educate yourself: Take the time to learn about the different types of investments and the risks and rewards associated with each.

Create a plan: Once you have a good understanding of your goals and the available investment options, create a plan that aligns with your risk tolerance and time horizon.

Invest regularly: Investing regularly, such as through a workplace retirement plan or automatic investment program, and Logical Nivesh can help you achieve your goals more efficiently.

[nivesh32]

Logical Nivesh – The Guru Mantra for Profitable Investments

Logical Nivesh is India’s best stock market advisor and investment expert, owned and operated by Ashutosh Bhardwaj, a SEBI certified research analyst in Delhi and NCFM technical analysis. With our option trading courses in India and beginner to advanced technical analysis courses, we educate our clients on achieving their investment objectives.

[equitynivesh]

Equity Nivesh is started by me to share my learning in stock market & help beginners to create wealth for short or long term. You can choose to invest in mutual funds or start trading in stocks with your spare money & earn handsome return. I am not an expert in stock market but will definitely help others to grow with me & guide you in the right direction.

Note: Trading in the stock market is subject to market risks, please consult your advisor or do your homework before taking a position for short or medium term.

Disclaimer - The content is purely for educational purpose and advice or recommendation available on the site are taken from the brokerage report.

[pantomathfinancialservices]

Pantomath Group founders acquire significant stake in Asit C Mehta Financial Services

Pantomath Group, founded by Mr. Mahavir Lunawat and his wife Mrs. Madhu Lunawat, has made an acquisition in the financial services industry. The two have acquired a stake in Asit C Mehta Financial Services to expand their reach in the sector. Together, they have transformed Pantomath Group into a leading investment and advisory firm. The renowned company is celebrated for their innovative approach and strategic investments. With the new acquisition, which they feel is one of the business investment opportunities, they will continue to stay true to their commitment of shaping the future of finance.

Asit C Mehta Financial Services was started by Asit Mehta and wife Deena Mehta -- who was among the first women to enter the trading ring of BSE; it is engaged in the business of stock broking, wealth management, mutual fund, distribution, PMS, advisory, fintech and other related financial services and property rentals.

Asit C Mehta Financial Services, a broking and financial services firm with a history of nearly four decades, is changing hands.

The firm started by Asit Mehta and wife Deena Mehta -- who was among the first women to enter the trading ring of BSE -- is getting acquired by the founders of Pantomath Group, which is a mid-market investment banking firm.

Cliq Trade Stock Brokers, which is jointly owned by Pantomath Group founders Mahavir Lunawat and his wife Madhu Lunawat, has acquired a significant stake in the Mumbai-based financial services company at an overall equity value of ₹75 crore.

Cliqtrade has acquired a 37.19 per cent stake through a combination of share purchase agreement from the existing promoters of Asit C Mehta Financial Services and an open offer.

The open offer including payment of consideration concluded on November 14. Post the completion of the open offer, Cliqtrade acquired further stake in the broking firm as contracted in the share purchase agreement.

Asit C Mehta Financial Services Limited was incorporated on January 25, 1984 in Mumbai and is engaged in the business of stock broking, wealth management, mutual fund, distribution, PMS, advisory, fintech and other related financial services and property rentals.

The group with a track record of nearly four decades got listed on BSE in 1995. Recently, the group launched a new product called ‘Chhota Nivesh Gold’ wherein retail investors can buy digital gold for an amount as low as ₹1.

“We are happy to enter into a strategic tie-up with Pantomath Group founders. Both Madhu Lunawat and Mahavir Lunawat are professionally qualified and raring to take Asit C Mehta Financial Services legacy to a new level,” said Deena Mehta, Managing Director, Asit C Mehta Financial Services.

“We believe the tie-up has the potential, zeal and energy to do so. This is going to be of great value addition to our customers and stakeholders,” she added.

In a similar context, Madhu Lunawat, Co-founder, Pantomath Group and now co-promoter of Asit C Mehta Financial Services said that the broking brand comes with a strong legacy backed by trust and values and the tie-up will add more value to it.

“We are excited to partner with Asit C Mehta Financial Services Group. Deena ben and Asit bhai carry a very strong legacy backed by extremely high standards of value system. With our marketing strength and cross synergies, we believe this partnership shall add significant value not only to our stakeholders but the market as a whole,” she said.

The stock price of Asit C Mehta Financial Services has more than doubled in the last six months and is currently trading at around Rs 142.

The acquisition of a significant stake in Asit C Mehta Financial Services by the Pantomath Group is a testament to the vision and success of its founders, Mahavir and Madhu Lunawat. They continue to demonstrate their ability to identify and seize business investment opportunities in the financial services industry. As one of the leading investment and advisory firms in India, Pantomath Group is poised to play a major role in shaping the future of finance and investment.

Tags: pantomath nse, pantomath nse news, pantomath nse india

[neha-sharma-blogs]

Nifty and Bank Nifty analysis | SEBI certified research analyst | Stock market tips for beginners

Ashutosh Bhardwaj is a SEBI registered Research Analyst, his company, Logical Nivesh guides users about risk-managed investment strategies. The team's detailed technical analysis makes way for effective trading. This video guides users about the core insights of Nifty and Bank Nifty. His detailed analysis has given a view of the upcoming trend of Nifty and Bank Nifty.

[nisha-rawat-blogs]

Nifty and Bank Nifty analysis | SEBI certified research analyst | Stock market tips for beginners

Ashutosh Bhardwaj is a SEBI registered Research Analyst, his company, Logical Nivesh guides users about risk-managed investment strategies. The team's detailed technical analysis makes way for effective trading. This video guides users about the core insights of Nifty and Bank Nifty. His detailed analysis has given a view of the upcoming trend of Nifty and Bank Nifty.

[jones-ed]

Why is risk management essential in the financial world?

In the financial world, risk is inseparable from return. Financial risk management occurs when an investor analyses the potential for losses in an investment and takes the appropriate action depending on the investment objectives and risk tolerance.

What is risk management?

Risk management identifies, assesses, and controls strategic, financial, security, and legal risks of an organization’s capital. These risks can arise from multiple sources like legal liabilities, accidents, economic uncertainties, natural disasters, strategic management errors, technology risk management, etc.

In the financial world, risk is inseparable from return. Financial risk management occurs when an investor analyses the potential for losses in an investment and takes the appropriate action depending on the investment objectives and risk tolerance.

In the financial world, investing is essential while keeping in mind its repercussions and the techniques of risk management. Trading with proper planning results in excellent and profitable returns; for that to happen, financial risk management holds a prominent place in the entire journey.

Five steps of the risk management process

The risk management process involves a series of steps for effective management. This framework includes five basic steps, which are listed below –

Risk identification – The initial step is to identify the exact type of risk for the business to take apt measurements. There are many threats, like environmental, regulatory, legal, market, etc.

Analyze the risk – After identifying the risk, the risk’s scope must be determined to place the focus points. Risk analysis also helps highlight the common issues that cause such risk situations.

Risk assessment – Before taking any action, one needs to prioritize and rank the level of risk depending on its severity. Risk assessment allows exposure to a holistic view of risks to an organization. Risk can be assessed based on two types – qualitative and quantitative.

Risk treatment – Once the risk priorities have been set, it’s time to eliminate them with definite strategies and proper execution. This is best done by contacting the experts of that particular risk type. If you are looking for any financial risk experts focusing on investments, trade, the stock market, etc., our SEBI registered research analyst Ashutosh Bhardwaj and his Logical Nivesh team will help you find an effective solution.

Risk monitoring – Keeping a constant check on risks and their solutions is essential to maintain efficiency. Some risks cannot be eliminated, primarily financial and environmental. Therefore, monitoring them with an expert’s advice helps find accurate solutions to reduce their impact.

Financial risk management strategies

Managing financial risk is essential for individuals and companies to operate productively within the economy and the financial system.

Risk avoidance – It involves avoiding the activities that end up in risk formation. For example, eliminating the use of credit for any purchases.

For corporates, activities like expanding operations in areas with high political uncertainty, etc., are a way to eliminate risk.

Risk transfer – It means transferring your risks to a third party. For example, purchasing a life insurance policy to avoid the risk of premature death.

Business risk management can be done by purchasing insurance on their property and transferring the risk of damage to the insurer.

Risk reduction – For individuals, diversifying your investment portfolio reduces the risk of potential losses and saves you from portfolio downfall.

Corporations can hedge foreign currency transactions to reduce exposure to currency fluctuations.

Risk retention involves accepting your responsibility for any particular risk after risk identification. For example, individuals do not insure their property consciously, or corporations deliberately get volatile input costs without insurance.

Financial risk management types

There are four types of financial risks that financial experts have to consider while proposing investment strategies.

Operational risk management is the indirect or direct loss caused by inadequate or failed internal processes, systems, or external events. It includes many risk types like environmental, legal, physical, and security. These are not revenue driven and can be managed within acceptable risk tolerance levels.

Foreign exchange risk management – When a financial transaction is made in a currency different from the businesses’ operating money due to unfavorable exchange rates between the two.

Credit risk management – A credit risk is experienced when borrowers default on their outstanding payments. Other factors, such as increased collection costs, loss of interest, etc., determine the extent of credit risk. Credit risk management solutions involve purchasing insurance, a debt guarantee by a third party, running a credit check, or holding assets as collateral.

Reputational risk management – Loss of financial capital from damage to an organization’s reputation is called reputational risk. It can even lead to bankruptcy. However, a proper financial risk management course from expert financial advisors can help eliminate such risks. Our Logical Nivesh team is happy to help you with the same.

[tradeniveshinvestmentadvisor]

Market Live: Nifty flat in pre-opening | Trade Nivesh

Trade Nivesh | Sensex up 100 pts   rupee opens higher

Trends on SGX Nifty indicate a negative opening for the broader index in India.

Rupee Opens: The Indian rupee opened higher by 11 paise at 69.41 per dollar on Monday versus Friday's close 69.52.

Market at pre-open: Indian indices are trading flat with positive bias in the pre-opening session.

At 09:00 hrs IST, the Sensex is up 38.26 points or 0.10% at 39472.98, and the Nifty up 31.10 points or 0.26% at 11875.20.

Morgan Stanley on IGL

Overweight call, target at Rs 351 per share

Reported Q4 earnings that beat our EBITDA estimate & consensus by 9%

Nomura on IGL

Maintain buy rating, target at Rs 400 per share

Q4 ahead driven by solid 17% volume growth

Jefferies on IGL

Buy rating, target at Rs 340 per share

Volume growth stronger than expected; margin below estimates

Kotak Institutional Equities on IGL

Sell rating, target raised to Rs 260 from Rs 250 per share

Raise EPS estimates by 3-4%

Deutsche Bank on IGL

Buy rating, target raised to Rs 375 from Rs 360 per share

CNG volume growth highest in 28 quarters

Nomura on Ashok Leyland

Neutral call, target raised to Rs 97 from Rs 90 per share

Valuations factor in the downcycle; next upcycle unlikely before FY22

CLSA on Ashok Leyland

Sell rating, target at Rs 65 per share

Q4 volumes rose 1% YoY, while EBITDA fell 5% YoY

UBS on Ashok Leyland

Sell rating, target at Rs 80 per share

Profit ahead of consensus on utilisation of tax credit from LCV biz merger

Outlook for FY20 & 21 growth is muted

Kotak Institutional Equities on Ashok Leyland

Maintain buy rating, target cut to Rs 130 from Rs 140 per share

Stock valuations are attractive at 11x FY20e EPS

Expect company to deliver 6% EBITDA CAGR over FY19-21

Jefferies on Whirlpool

Hold rating, target cut to Rs 1,560 from Rs 1,625 per share

Steady quarter; positives priced in; key risks prevail

CLSA on Dish TV

Retain buy rating; target cut to Rs 60 from Rs 70 per share

Migration impacts ARPU & additions; Essel group deleveraging a must

Cut estimates by 1-9% to factor in Q4 performance

Kotak Institutional Equities on JSW Steel

Maintain reduce, target cut to Rs 255 from Rs 265 per share

Good quarter but a challenging year ahead

Kotak Institutional Equities on Whirlpool

Maintain sell call, target at Rs 1,220 per share

Expect 12% EPS CAGR over FY19-21

Cut FY20-21E EPS estimates by 4-5%; sell stays on expensive valuations

Deutsche Bank on Grasim

Buy rating, target at Rs 1,075 per share

Q4 result disappoints on weaker margin

Credit Suisse on Ashok Leyland

Maintain neutral, target at Rs 94 per share

Q4 In-line; pre-buy to provide a near-term trigger

Credit Suisse on Page Industries

Downgrade to underperform from neutral, target cut to Rs 18,700 from Rs 23,221 per share

Q4 results significantly below estimates; profit declines 20.4% YoY

CLSA on IGL

Maintain buy rating, target at Rs 390 per share

Record volume growth across segments drives beat

CLSA on JSW Steel

Sell rating, target at Rs 225 per share

Margin outlook weak while capex is rising

CLSA on NCC

Buy rating, target raised to Rs 145 from Rs 140 per share

FY19 PAT up 91% YoY, but politics drive no guidance

CLSA on NTPC

Buy rating, target at Rs 157 per share

Double-digit PAT growth led by lower under recoveries & surcharges

[tradenivesh]

TRADE NIVESH | BAJAJ FINSERV LTD ABOVE 5450 for NSE:BAJAJFINSV

[logicalnivesh]

WHY CHOOSE A BANK NIFTY OPTION TRADING STRATEGY?

Those who have been into bank nifty option trading have devised multiple bank nifty strategies which will help them make better trades in the future. Due to its high co-relation and weightage in the NSE benchmark index, Nifty, Bank Nifty gained great significance among investors.

Launched in 2000 by India Index Service and Product Limited (IISL), Bank Nifty is NSE’s sectoral index and is one of the most heavily traded indexes in the F&O market. One of the highest attractions in bank nifty trading is that it is highly volatile and allows traders to generate a quick profit. Also, due to its high co-relation and weightage in the NSE benchmark index, Nifty, Bank Nifty gained great significance among investors.

This index trading option is brilliant as it comprises 12 highly capitalized and the most liquid banking sector stocks traded in NSE. Those who have been into bank nifty option trading for years have devised multiple bank nifty strategies which will help them make better trades in the future.

Whenever looking for ‘my trade options,’ bank nifty holds great importance as, here, the share prices and values are displayed on a real-time basis during the NSE trading hours. A bank nifty option strategy can be curated for various purposes like introducing index funds, new ETFs, and other structured products and benchmarking fund portfolios. The top 10 bank nifty companies with the highest weightage are – AU Small Finance Bank, Axis Bank, Bandhan Bank, Federal Bank, HDFC Bank, ICICI Bank, IDFC First Bank, IndusInd Bank, Kotak Mahindra Bank, and Punjab National Bank.

Top 4 bank nifty option buying strategy

With the growing trading margin and awareness, options trading has significantly increased among traders. Nifty and bank nifty are the popular indices in option derivatives, and their improved buying strategy results from the opportunity it offers to make money. Below are the top 4 bank nifty strategies that every trader must know.

Naked puts or calls – Buy the put option during the market’s low point. The more the nifty falls, the higher profits are generated. Buying the call option during the market’s high end is a good strategy. The more the market rises, the higher profits will be incurred. Putting a stop loss is mandatory in this strategy.

Bull call spread – If you wish to buy bank nifty stocks during the market rise, using the bull call spread strategy is the best option. This strategy gives a good amount of money when the index goes up.

Short straddle – This bank nifty strategy generates good results when the market is in a defined range. Here the trader sells the money call option and a put option with the same strike price and expiry date. You grab the maximum profits when the index doesn’t show much movement. However, the losses are extreme when the bank nifty moves beyond the breakeven point.

Short iron butterfly – A good bank nifty strategy today will result in better outcomes for tomorrow. This strategy contradicts the risky short-straddle

strategy, as the losses here are less and much defined. Profit is also defined, and rewards are higher than risk.

What is the difference between nifty and bank nifty

Nifty is considered a much broader term, and bank nifty is a part of nifty. Like bank nifty, the nifty index also consists of the most liquid and highly capitalized stocks from the National Stock Exchange. However, the major difference is that nifty consists of the top 50 stocks from varied sectors like automobile, pharma, IT, bank, etc., hence also called Nifty50. On the other hand, bank nifty, also known as Nifty Bank, consists of the top 12 stocks only from the banking sector, which is a part of Nifty50.

If you are looking for an excellent strategy to invest in index funds, nothing is better than nifty. Bank nifty strategy is profitable primarily for intraday trading to book short-term profits. Bank nifty is more volatile than nifty. For example – If nifty rises to 1%, then bank nifty goes 1.5% higher. Although bank nifty has more potential to make profits, the risk is also higher than nifty.

For options trading in nifty, one lot = 50 quantities, and for bank nifty, it is 25 quantities. As nifty consists of stocks from multiple sectors, it depicts the overall economy’s performance. On the contradictory, bank nifty indicates only the banking sector’s performance.

Choosing to trade between bank nifty and nifty options is tricky. Still, if you are a beginner, maximum traders trade in the nifty index is a better option as it is less volatile and much more familiar. If you stand somewhere between intermediate and advanced trading levels, traders prefer bank nifty as it’s more rewarding and makes them reap higher benefits due to more considerable volatility.

[logicalnivesh]

Candlestick chart analysis – An impactful stock trading tool

Candlestick patterns are a powerful technical analysis tool that displays information about an asset’s price movement. It is important to note that a candlestick analysis is best done when the trader efficiently compares one candle with its preceding and next candles in the row. Candlestick chart patterns represent an entire day of price movements till the market closes. Twenty candlestick patterns represent the 20 trading days in a month. Understanding candlesticks is one of the most critical aspects of the stock market for beginners.

What are candlestick patterns?

Candlestick patterns are a powerful technical analysis tool that displays information about an asset’s price movement. This tool helps traders constantly check the price fluctuations of currencies, derivatives, and securities for intelligent and profitable investments. These patterns are represented in color bars, where each color coding shows an in-depth price analysis.

A typical candlestick chart consists of multiple horizontal bars or candles, which can be divided into three parts – Upper shadow, body, and lower shadow. Also, every candle has three basic features, namely,

Body – It is either red or green and represents the open-to-close range.

Wick – The wick is also known as shadow and indicates high and low intraday.

Color – The color reveals the direction in which the market moves. Green (white) indicates a price increase, and red (black) depicts a price decrease.

Candlestick chart patterns represent an entire day of price movements till the market closes. Twenty candlestick patterns represent the 20 trading days in a month. Understanding candlesticks is one of the most critical aspects of the stock market for beginners. These patterns are based on past and current price movements and cannot be analyzed as future indicators. Each candle represents a day-to-day story of buyers and sellers. The green candle is a victory for the buyers, and the red candle shows the sellers’ win.

How is candlestick chart analysis done?

A candlestick pattern represents the stock market’s opening, high, low, and closing (OHLC) prices. The rectangular body in the middle represents the opening and closing of trading prices. This body is either colored green (depicting a price increase) or red (showing a price decrease). The lines above and below the body are called wicks or shadows, representing the high and low of the traded stock price.

If the upper wick on a red candle is short, it represents that the market opened near the day’s high. If the upper wick on a green candle is short, the stock closes near the day’s high. Both the body and wicks can be long or short and combining all these parts of a candlestick highlight the changes in the market’s direction.

Learn candlestick patterns – Types of candle trading

It is important to note that a candlestick analysis is best done when the trader efficiently compares one candle with its preceding and next candles in the row. These patterns can be categorized into two sections – Bullish and bearish.

Bullish patterns – A bullish candle pattern represents an uptrend in the market movement after a price decline. Here the stock’s closing price is higher than the opening price and is represented by a green candle. Below are the different types of bullish patterns.

Hammer pattern – This pattern is depicted with a short body and long lower wick. It is usually placed at the bottom of a downward trend and indicates that despite selling pressure, the firm buying surge shifted the prices upwards. A green hammer indicates a strong bull market.

Inverse hammer pattern – It is similar to the bullish hammer pattern in the display. The only difference is that the short green body has a long upper wick. It is usually placed at the bottom of a downward trend and indicates buying pressure followed by selling pressure. The inverse hammer suggests that buyers will soon have control over the stock market candlestick patterns.

Bullish engulfing pattern – It is formed with two candlesticks, where the second one engulfs the first candle in the opposite direction. The first candle is short red, and the one which engulfs is large green. This trend indicates a bullish market, which pushes the price up despite a downward trend the previous day.

Piercing line pattern – Also known as a two-candle pattern, it indicates a reverse signal after a downward trend. This pattern depicts two long candles; The first is red, and the other is green. The closing price of the second candle is more than halfway up the body of the first candle, indicating intense buying pressure.   

Morning star pattern – It is a three-stick pattern depicting a short red stick between a long red and long green stick. There is no overlap among the three sticks. This candle pattern indicates a decrease in the selling pressure and the start of a bull market.

Three white soldiers pattern – Three consecutive green candles with small wicks represent this pattern. These candles open and close progressively higher than the previous day. After a downtrend, this candlestick formation strongly indicates an upcoming bullish trend.

Bearish patterns – The bearish stock candlestick patterns create intense selling pressure for investors in the market due to a price decrease assumption. Here closing price of the stock for that period is lower than the opening price, and a red candle represents it. Below are the different types of bearish patterns.

Hanging man pattern – It is represented by a short red candle with a long lower wick at the top of an upward trend. The hanging man pattern represents an entry of selling interest in the market. Here bears gain control of the market.

Shooting star pattern – Like the hanging man, the shooting star is also at the top of an upward trend. But here, the short red candle has a long upper wick. Here, the market opens higher than the previous day and rallies a bit before crashing like a shooting star.

Bearish engulfing pattern – It occurs at the end of an uptrend and is formed with two candlesticks. The first candle, with a small green body, is engulfed by a long red candle. This pattern is evidence of a slowdown in price movement. The lower the second candle, the more significant the trend is likely to be.

Evening star pattern – Similar to the bullish morning star, it is a three-candlestick pattern, formed with a short green candle sandwiched between a long green and long red candle. The evening star pattern indicates the reversal of an upward trend.

Three black crows – Out of all the basic candlestick patterns, this is a three-candle pattern having three consecutive red sticks with short wicks. These candles open and close lower than the previous day. Three black crows pattern is an indication of an upcoming bear market.

Dark cloud cover – It is a two-candlestick pattern comprising a red candle that opens above the previous day’s green candle and closes below its midpoint. Candlestick trading with the dark cloud cover pattern indicates a sharp price decline, signaling that bears have taken over the session.

Stock market candlestick – Continuation candle patterns

When a candlestick pattern does not change the market direction, it is called a continuation pattern. To identify a rest period, traders need to have a deep candle chart analysis. The continuation patterns indicate a neutral price movement in the stock market. There are four types of continuation candle patterns, namely –

Doji – When the market’s opening and closing are almost at the same point, they form a Doji pattern. Both the green and red candlesticks resemble a plus sign with varying lengths of wicks and a short body. This pattern indicates a tough fight between buyers and sellers, resulting in no gain for either side.

Spinning top – This pattern shows rest in the market. It offers red and green candles with short centered bodies between wicks of equal lengths. The spinning top pattern indicates that the bulls sent the price higher, but bears pushed it down again, resulting in indecision in the market.

Falling three methods – This method predicts the continuation of a bearish trend depicting a long red body followed by three short green bodies and another long red body. All the green candles are placed between the red bodies indicating a low strength in bulls to reverse the trend.

Rising three methods – This method predicts the continuation of a bullish trend with three short red bodies sandwiched between long green bodies on either side. The reds are contained within the green bodies and depict buyers retaining market control.

Do candlestick patterns work?

Understanding candlesticks effectively requires keen attention to the market’s rules and regulations. Traders worldwide consider candlestick analysis as a primary means of identifying the stock market’s direction. However, for efficiency in trading candlestick patterns, you need to take advice from the best candlesticks patterns expert and active participation in the daily candle movements.

Reading candlestick patterns has been a popular strategy used in the stock market for several years. It works for the same reason as other daily or weekly technical analysis forms. Even the top SEBI-certified research analysts, like Ashutosh Bhardwaj, believe that SEBI research analysis on Nifty, Bank Nifty analysis, and other different stock market arenas derives the most profitable results.