Day Trading – Quick Trades In The Early Hours
August 23, 2018
If you have been following some stock analysts on Tv, then he would be recommending many stocks to you that you should try to trade in as soon as the market opens. So when you hear the opening bell you try to punch in your trades, only to see that the price that you had entered never gets filled and before you could make the changes to the price in the order window, the trade has already reached the target price.
Early morning gaps
When you are a day trader you could take good advantage of the early morning volatility that happens as soon as the market opens. These trades are quick and let you profit from them within seconds. In most cases, the trades do not even last for a minute.
How to prepare yourself
Your index is traded globally too and this would give you a rough idea about how the premarket opening should be. When the pre-market session ends you get to know the price at which the individual stocks would open it.
You can makes good use of the opening price.
After the market closes on the previous day, go through the intraday chart of each of the stocks that you have in your scanner. Keep it limited to some of the blue-chip stocks that you normally trade in. Mark the levels on the intraday chart where you would want to go long or short on the trade.
Do your homework
You first need to select the daily chart as the higher time frame chart and then analyze the intraday day charts accordingly. You may notice at times that some of the stocks have closed closer to a good demand or supply level. The next day when the market opens you may notice that the price of the stock gaps to those levels and trades as expected.
So if you have the levels marked already, you can look at the premarket closing price and take the trade as soon as the market opens. This works wonderfully and you are out of the trade within seconds. However, take care to understand that this method is recommended for those who have some experience in trading. These trades are pretty quick and thus you should be confident to act fast.
A word of caution
Even if you are 100% sure that the trade will work out, you still need to have a stop loss in place. This means that you need to make changes to your exit prices immediately if need be. You should be very comfortable using the trading platform. The market is so volatile in the morning that a slight delay could make you lose a lot of money.
Another thing to remember is that this trading strategy will work well, but not on all the days. Make sure that you are aware of any event that is scheduled for the day. Also be aware if there was some major news last evening that could affect the market. If this is the case then the market could be very unpredictable and thus it is best that you stay away from trading this strategy for that particular day.
Risk and Benefits of Fund Management
July 24, 2018
Planning the financial budget is extremely important as the markets are very active and investing when the markets are low and holding it or selling when markets are high gives the investors the maximum benefit, however if one is having keen interest in monitoring the markets closely can prudently invest, however most of us have the habit of just piling in few funds or in the banks without knowing the fact that it could have given a higher ROI. This is where the fund managers come to advice on how the portfolio of steady and active funds should be built to maximize when the earnings are required most.
Owning a portion of a huge total fund is where the investor’s money is pooled in to get a benefit in a very short period of time, is the best way for beginners to see through the managed fund markets:
- Managed funds also make it easier to manage risk by spreading them in a variety of funds where the risk exposure is less, and so is the returns
- capital gains are benefitted when the value of the NAV rise and the additional units are added up in the total, to get a good return typically in a mutual fund type of investment
- since the investors may not have in-depth knowledge of how the markets work, the fund manager comes into the picture is an ideal professional to administer, advice and manage the funds in the most efficient manner, for the investors for a small number of fees
- Fund managers have expertise in dealing with an array of investments both long term and short term hence their expertise can be used to the optimum to have a portfolio with a good mix of funds allocated properly.
As the markets in which the funds are invested are subject to market conditions which are influenced by internal and external factors, there exists a risk factor which investors have to keep in mind when the market hits a low bend
- Similar to the stock markets, fund performances could be low and the value could drop lower than what the initial pricing was, however, the time would be ripe to inject more funds to get more number of units in a mutual fund investment
- since the risk is spread among various investments in the portfolio one can be lucky if they had a bad fund performance against a good NAV on the other fund
- Hidden charges, administration fees all are inclusive of the fund invested could reduce the net return for the investor.
The Power Combined From An E-Asset And E-Technology
July 17, 2018
With the world inching towards digitalization with every passing day, it is important to stay connected and reap the many benefits of e-technology. Saying so, you must have all invested in some kind of an asset or the other at some of the time. However, have you ever imagined how great it would be if you combine the efforts of e-assets with e-technology? This article is a brief introduction on how e-assets are related to e-technology and how they work in combination.
E-assets include Bitcoins and similar digital currencies such as Ethereum, Litecoin, Altcoins, and other virtual currencies, while the related e-technology used is the powerful Blockchain technology.
This technology may be considered as a boon, more specifically a digital innovation. It was invented with the intention to juggle the overall financial markets in the coming few years. What makes it unique is that it is completely encased in a highly cryptographic ecosystem, which has the immense capability of influencing and altering the computing activities and those of the cyberspace, especially those concerning cybersecurity overall.
This can be viewed as a highly complex networking system that mainly carries out three tasks.
It stores all records in a digital format.
It exchanges stored digital data by converting it into digital assets, which are commonly called as tokens.
It executes smart contracts based on the created digital tokens.
However, these three operations are performed based on certain rules that involve a distributed network to execute the smart contracts, to monitor conformity, and to validate outcomes automatically without the interference from a third party.
Coming Together of Bitcoins and the Blockchain Network
Formation of Bitcoin – Bitcoin was the first ever-digital asset that was created.
Interaction with the Blockchain – All transactions carried out in the form of Bitcoin are kept track of in a huge network of computers called the Blockchain.
Creation of a Ledger – Future payments, transactions, and all the relevant data are added to this ever-growing network to maintain a comprehensive file, which is called the ledger.
Introduction of Mining – Further, the value of each Bitcoin transaction is increased by value addition through the process of mining.
Establishment of P2P Networking – Mining, too, on the other hand, is carried out with the help of a number of distributed and organized processors, which are addressed as the nodes, thus forming a peer-to-peer or the P2P network.
Know The Classifications Of Mutual Fund Schemes
July 15, 2018
The pooling money scheme of Mutual Funds can be categorized and subcategorized on the terms of investment objectives and their respective phase of maturity. This includes
- Open-ended money scheme: This is the one that stands for subscriptions and redemptions on a periodic basis where depositors or clients can easily do unit transactions at Net Asset Value prices.
- Close-ended money scheme: This is a scheme which introduces a maturing period range varying from months to years and remains open for a particular time like the initial introduction period of the scheme or better termed as New Fund Offer.
The clients are free to invest during this specific period and can conduct transactions of those listed units.
- Interval money scheme: These represent the hybrid nature of both open and close-ended composition and are open to trading on the basis of pre-defined timings at the prevailing NAV rates.
They show their means of closeness to close-ended ones but differ in the following nature:
- No mandatory stock listings are required as they work on the self-defined property
- They continuously force to issue new units during the pre-specified timings and at the predominant NAV rate.
- Even the maturity phase is undefined.
- Exchange Traded Funds or EFTs scheme structure: They are index listed funds transacted on exchange live stocks. They expose the clients to different indices of the different countries. They thus establish their properties of low cost, easiness and real-time form of investing.
- Fund of Funds or FoF: They entertain themselves to invest in other mutual fund structures. This is a tactical move provided to choose between different schemes and objectives.
- Equity money scheme: These are related to medium to long-term clients facing a risk appetite but provide a much appreciation of capital on investing in equity-based items.
- Index money structure: They focus on index-based companies securities expecting returns in time.
- Income/Debt oriented structure: They are the lower returning schemes like treasury bills, Bond Securities or so.
- Gilt Scheme: These are government securities oriented schemes that eventually fluctuate on the basis of interest rates and other financial factors.
- Liquid Market Structure: These schemes promise to provide liquidity, preserve money and moderate the income. They always fund in short-term things like deposits certificates or so.
- Hybrid variety scheme: This is a multi-oriented scheme that helps with providing regular income using monthly plans, ensures the capital protection and so on.
Individuals or clients are free to choose with more than one scheme structure with their sight of objectives.
How Really A Transaction Settlement Takes Place In A Forex Market?
July 1, 2018
The major advancement in technology has greatly helped the foreign exchange markets to maintain continuous telecommunications for effectively handling the transactions. One such sole network used by financial institutions to transfer messages and conduct exchanges like CHIPS is referred as ‘SWIFT’.
- The expansion goes as ‘Society for Worldwide Interbank Financial Telecommunications’.
- This is co-operative society owned and regulated by almost 275 banks across the world and as the name suggests it is a communication network coordinated especially for international financial markets guiding them in foreign transactions and interactions.
- Further, this network links nearly 30,000 financial firms globally each issued with an identifiable code. In addition to these, local and national processors connect the regional and national banks to the center.
- SWIFT’y networking systems perform the following tasks:
- Assist in making all the international payments and statements.
- Helps in immediate text transferring with international as well as national banking systems and makes it economical.
- Maintains the security and accuracy of the communication system thus increasing the reliability.
- Powered by the quality of stability, messages delivered are clear and exact, and no possible sort of ambiguity is present to revert for clarifications. This is so because universal standards and formats are used for conducting transactions.
- This further reduces the response and execution time enabling the system to be highly efficient and thus deliver a quality service.
- Additionally, this network keeps the automated records of all bank transaction driving all regional banks to adopt internal automation activities.
- Abbreviation for ‘Clearing House Interbank Payment System
- This is an automated payment system held by 12 commercial type private banks and presently, it constitutes the world’s largest payment system.
- Foreign exchanges including Euro-Dollar transactions are conducted via CHIPS and tallies payments of each and every single day and finally settle with a receipt. This probably avoids the use of any cheques or ready cash for exchange.
- Helps in directly speeding up reconciliation and thereby lowering the entry passing through different systems like Fedwire.
Quotation Process of settlement
- The money requested by the interbank to buy a foreign currency
- The money needed to sell the foreign currency
- Another way is
- Direct: This indicates the exchange of foreign currency with domestic currency in a forex market.
- Indirect type: includes the quotation scheme which offers a specific quantity of foreign currency per unit of domestic currency.
Financial Technology Aiding Start-Ups
July 1, 2018
A business start-up is a dream for many and only a few of them actually achieve in doing this the best way. And most of the others step a foot back owing to the many hidden risks. The major risk for any business start-up could be the initial investment that is generally a huge sum. One important thing to be noted here is that it is the gushing of ideas and different thoughts that give rise to a new dimension to an existing business or probably brings in new businesses into existence.
So ideas need to be executed well and on time so that they do not become obsolete. Ideas remain just ideas unless and until they are executed and put into action. So you should be able to gear up and fuel your ideas promptly and correctly to excite and collect the interested mob that leads to the acceptance and growth of the business. There is also the possibility of your ideas being copied or mimicked by a different person. Do not get bogged down by this for there is always room for competition and you can always try winning this tiff by coming up with something unique. Technology is a boon and it is being introduced greatly and has been of great help in all walks of life. Now people who are really interested in getting a business started should bring in this technology wisely in planning mainly their finances which is considered the most important thing for a start-up. So how does this technology help in doing this? Let`s take a look at it.
- There are a lot of apps that have been introduced in the recent times that can help a business in managing its funds, both incomes, and expenses. It is this technology that is responsible for this innovation and it has not stopped here but is still working on getting such new and easy things into everything possible making things simpler.
- Finance is a field that needs accuracy and promptness. Now, this is made precise with the use of technology which helps in getting things done on time and by eliminating all possible errors and mistakes. This technology has actually taken over manual calculations and conclusions easily and accurately saving time as well as money.
So a business that is able to do justice to its financial commitments and compilations with the help of technology is expected to always do well.
Risk management and why it is never too late to set it up in your company
June 30, 2018
The risk in correlation with the fact if the company will be able to achieve its objective at all:
Risk cannot be totally eliminated and this anyone who has worked in a corporate of any size will know full well. What however can be done is risk can be accepted as a part of the business processes, internalized, identified, assessed and managed after strategizing what is the best way to handle it.
A corporate today that invests equally in its risk management department is a clear winner. In fact, it is believed strongly by industry experts that when uncertain factors that are related to the risks that the company is facing r prospectively may face in the future determine whether at all, when and to what extent the company will achieve its future objective, its goals are termed as risks. So, we can see that it is a wide term. A risk can be any kind of hindrance that the company can face in achieving its objectives.
Risks can be internal as well as external.
These are risks that the company will not have any direct control of. a few examples of external risks or threats are the change of government, spike or plummeting of exchange rates, drastic changes in the interest rates, a change in the country’s laws, etc.
These are risks that the corporation can have a direct control over provided the risks are identifies and assessed in time to be able to tackle them effectively without them having an overbearing effect on the organization. Some of the examples of internal risks are noncompliance of documents or processes in consonance with the law of the land, information breach, breaches in security, etc.
it is heartening to note that corporate who never even gave a thought to setting up a risk management cell today is now consciously bracing up to set it inside their organization besides also taking external help and advice from risk managers who consult from outside the organization itself.
The role of the risk management team:
- Identifying the risks, present and the potential risks. Identifying is the first step in being able to tackle them effectively.
- Strategizing in order to guard the organization against such risks;
- Executing strategies that will help in identifying potential risks in the future, and
- Motivating the employees to take a proactive role in identifying, assessing and helping come out with strategies to manage such risks as well as to successfully implement them.
Fintech – An Introduction
June 24, 2018
Money dealing and trust based on these transactions are something very challenging in the world. Be it huge transactions of a business or simple dealings between people on a day to day basis all this involves a lot of trust and care. Money is something which is highly valued and it becomes the basis for any kind of a business. It is a mere necessity for our life.
When talking a lot of money and its value, there come to my mind the new technology upliftments to deal this finance from different sources. As it is in every walk of life, technology has played a huge role in the creation of Financial technology. What does this mean and what are its implications? Read more to find out the detailed discussion about Fintech.
Meaning and concept
An innovative method to deal with financial service delivery as a competition to traditional methods of the same. With the introduction of the smartphones the services like mobile banking, investing in securities and cryptocurrency has been an easy reach to the general public in a great offer.
Hence the latest application in financial products, processes and business models in the financial services industry is the purpose of Fintech. It is an end to end process and is provided online. Therefore with proper connectivity to the internet people can benefit the use of such technology.
The key areas in which Fintech aims to revolutionize are banking, insurance, investment, and trading. When we take a look at the survey of how Fintech has influenced the business world we can see an overall percent growth globally. This has helped many businesses to flourish as well as to become profitable as the payment methods got easier for the people who are involved in it.
Fintech is aimed to globally develop a business and take it to the next level. Startups are now adopting the methods of Fintech to make their business easier and convenient from customers view.maintaining an extensive database and keeping all the required records and processing payments is the process of the Fintech startups. These have become the most required ones in the present world which is very fast paced.
Success of Fintech
Banking and other financial institutions are readily available to provide help to large-scale business operations, the small and medium-sized businesses were helpless to find financial help and aid, that is when Fintech emerged and its main aim was to focus on small and medium enterprises and startups. This has been the main reason behind the successful growth of Fintech.