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Equity and Nifty Specialist.

 

About intraday

 

ADVICE FOR INTRADAY TRADERS

Intraday calls generated is backed by highly dedicated professionals with in-depth knowledge of analysing share market.By using our expertise and knowledge we are proud to serve many clients. Stock syndicate is a successful trading solutions provider in Indian stock market.

Stock syndicate encloses a strong research team of stock specialists who are constantly watching and analysing market to provide tips to traders by SMS for intra day trading during market hours.

Our trading calls are reliable,trustworthy, transparent and accurate with precise entry,stop loss and target.We monitor our calls and we also provide complete follow-ups for both stop loss and TGT,till your close your positions.Subscribers need not have to remain online.

Tips are provided when there is high probability of market moving in a projected direction. technically break-out scrips are recommended for intraday trading.

We mostly offer trading guidelines for NSE-50(NIFTY).i.e., A group stocks.

As far as indian stock market is concerned, it mostly depends on the following factors.

a)FII's (foreign institutional investors),
b)Institutional investors (within india),
c)mututal funds,
d)Insurance,
e)Political atmosphere.

A war announcement or a single law against investment will topple down the whole situation. If the investors (due to panic) sell their stock holdings then it will leads to a drastic change in the stock market which will affect a small investor.

Now-a-day,investment on long-term basis is becoming more complicated than ever before and it has no guarantee.So it is better to take home profits everyday.Because no one can predict future situation. Selecting Intraday trading is the best solution to save our hardearned money.

  1. Always trade with stop loss to avoid heavy losses.After all SL is inevitable. Trading with SL guarantees
    your accounts safety to some extent.Stock Syndicate offers only calls with break out pattern. So,for a sell below call place stop loss selling order and for buy above call place SL buying order/
  2. Trading too many stocks at once drives you to confusion. Only one or two calls should be open at a time as it lower,
    your risk factors .Then you can have a good concentration on trading.
  3. Most of the traders average their positions if trading goes against their expectations. In such cases please exit your positions.
    Traders tend to wait in the hope that their position will recover.This is because of the optimistic tendency of the trader. Mostly this tendency is the main reason to lose money in day trading. Don't try to recover the losses in the same day. A trader should not feel shy of booking losses.
  4. Many traders try to buy exactly at bottom and to sell exactly at top.But this is highly impossible.Trading is possible only between the bottom and top of the market.
  5. To rectify the mistakes, recording your trading is necessary .Because for a day trader buying or selling stocks occurs several times every day.Recording helps to calculate both profit and losses.It also corrects your mistakes and shapes your trading strategy.In stocksyndicate all profits or losses are booked on the same day before the market closes.
  6. It is better to stay away from stocks with low trading volumes as they can be delisted from the market at any time.
    So, stocksyndicate slect stock with a high trading volume.
  7. Most traders think to quit their regular job or usual business and they plan to lead their life as a full time trader, But this intention is only due to lack of awareness about trading.
  8. First..Please invest money that you would not need in atleast the next five years. Secondly.. Don't borrow money to invest in stock market.As many people think,Stock market is not a place to make quick money.
  9. Greed and fear does not allow traders to take a rational decision.

BASIC TERMS IN STOCK MARKET

ASSETS. Assets are the economic resources of a company from which future benefits are expected.Common examples of assets include land, property ,machinery and cash.

BOOK BUILDING. It is a price-fixing mechanism for public issues.Through this process, the price of a stock is arrived at on the basis of demand for the issue.

BOOK VALUE. Book value is value of equity on the company’s balance sheet.It is also called the company’s net worth.

BUYBACK. Buyback means the repurchase of shares by the company itself.

CURRENT RATIO. Current ratio measures the number of times the current assets of the company cover its current liability. The formula for this is: current assets/current liability.

DAY TRADERS. Traders in the market who begin their day with no trading position and end their day with none are called day trading position and end their day with none are called day traders.

DEBT-EQUITY RATIO. This ratio measures the financial risk associated with a company. It is measured by dividing the company’s total debt by its total equity or shareholders’ wealth. The formula for this is:Debt-equity ratio=total debt/total equity.
The ratio compares the company’s debt to its equity. A higher ratio implies higher financial leverage and,therefore,a higher degree of risk for the company.

DEBT RATIO. Debt ratio is the ratio of a company’s total debt to its total assets. Mathermatically. It is expressed as: Debt ratio=total debt/total assets.

DEPOSITORY. A depository is like a bank that maintains investors accounts in which they hold securities.

DEPOSITORY PARTICIPANTS. They are the agents of a depository who are in the business of providing depository services.

DIVIDEND YIELD.Dividend yield is defined as the dividend per share given by the company divided by its share price.

DRAFT OFFER DOCUMENT. A draft offer document is an initial sketch of the offer document.

EXPENSE. It denotes the outflow of the economic resources of a company.

FIXED PRICE ISSUE. It is the mechanism to fix the price of a stock at which it will be issued to the public. Under the fixed price mechanism. The issuer of shares fixes a price at which it will issue the shares.

FRESH ISSUE. When a company issues fresh shares,It is called a fresh issue. It increases the number of outstanding shares in the market.

FOLLOW-ON PUBLIC OFFER (FPO). An FPO is the issuance of shares by a company which is already listed on the exchange.

FUTURES. Futures are financial contracts to buy or sell an asset on a future date at a fixed price.

GROSS PROFIT MARGIN. Gross profit margin is the measurement of a company’s gross profit as a percentage of its sales. Mathematically, it is written as: Gross profit
Margin=gross profit/sales.

INITIAL PUBLIC OFFER(IPO). It is the first issuance of a company’s share in the primary market. It results in the company’s shares getting listed on a stock exchange.

ISSUERS. Issuers of securities are the companies that want to raise money from the market.

LIABILITY. It is an obligation for a company resulting in the future outflow of economic resources.

LIQUIDITY RATIOS. They indicate a company’s ability to pay off its short-term liabilities(those expected to become due in a year/a financial year).

MERCHANT BANKERS. Merchant bankers are the representatives of a company coming up with an issue. They ensure that the issuer company complies with all the
Relevant regulations.

NET PROFIT. Also called bottom line. It is the company’s revenue net of all its expenses.

NET PROFIT MARGIN. Net profit margin is the company’s net profit as a percentage of its sales. Its formula is: Net profit margin=net profit/sales.

OFFER DOCUMENT. It is a document that a company going in for a public issue files with the registrar of companies(ROC) and the stock exchange where it intends to get listed. An offer document provides all the information that an investor would need about the company before investing in it.

OFFER FOR SALE. When a company’s promoters sell their stake in the company through public issues, it is called offer for sales .

OPERATING PROFIT MARGIN. Operating profit margin is the ratio of the company’s operating profit to its sales. The formula is : Operating profit margin= operating profit/sales.

OPERATING PROFIT. It is the profit generated by the company’s core or day-to-day activities.

PE RATIO. PE .an acronym for the price-to-earnings multiple, can be defined as price per share of the company divided by its earnings per share(EPS).When the EPS of previous four quarters is used to calculate the PE , it is called trailing twelve months (TTM) PE. If the EPS of the most recently completed financial year is considered in calculating the PE, it is called current PE.

In some cases, investors use analysts’estimate of the next financial year’s EPS to calculate the PE. In such a case, it is called forward PE.

PREFERRED SHARE. Perferred shares are the shares that get preference over common shares when a company distributes dividends. Even when a company is liquidated or sold off, the rights of preferred shareholders get prominence over the rights of common shareholders. Generally, the dividends paid over the life of the preferred shares are fixed by the company.

PRICE-TO-BOOK VALUE (PBV) .PBV of a stock is price per share divided by the book value per share of the company.

PRIMARY MARKET. The primary market comprises activities related to the issuance of securities by companies to raise capital from the public. The issued security or equity.

PRIVATE PLACEMENT. When a company issues shares to a select group of investors.
Whether existing or new. It is called private placement of shares. When a listed company does so, the process is known as preferential allotment. Sometimes a listed company issues shares only to qualified institutions. This process is called qualified institutional placement.

PROFITABILITY RATIO. Profitability ratios are the ratios that tell us how efficiently a company is utilizing its economic resources.

QUALIFIED INSTITUTIONAL BIDDERS (QIB). QIBs are institutional investors who are usually considered to have greater expertise in dealing with complex investments.

QUICK RATIO. It states the number of times a company’s current assets minus the inventory convers its current liability. The formula is : Quick ratio= (current assets-inventory)/current liability.

RED HERRING PROSPECTUS (RHP). An RHP is a prospectus but it does not have the details of either the amount expected to be raised from the issue,or the price, or the number of shares to be taken out. It, however,does mention the upper and lower band of price and the number of shares to be issued. Else, the issuer may specify the amount in RHP but decide on the number of shares later.

RESERVES AND SURPLUS. It represents the company’s net income which is not distributed to its owners. As the company continues its operations. It is added to the company’s share capital. The share capital of a company increases if it makes profit, and vice versa.

RETURN ON CAPITAL EMPLOYED(RoCE).Return on capital employed or,simply,return on capital is obtained by adding the company’s debt capital in the denominator of the return on equity formula.
It is written as:
Return on capital = net profit/total capital(debt capital + equity capital).
The ratio reflects how efficiently the management is utilizing the company’s overall capital. The higher the ratio, the more efficient is the company in using its capital. And vice versa.

RETURN ON EQUITY (RoE). Return on equity, also called as return on net worth, is widely used by investors to judge a company’s efficiency in utilizing the capital that they have invested in the company. It is measured as net profit divided by equity capital, or Return on equity = net profit/shareholders capital.

The higher the ratio, the more efficient the company has utilized its shareholders’ capital.

REVENUE. Revenue is the amount a company charges for the goods and services it offers.

RIGHTS ISSUE (RI). In a rights issue, a listed company issues fresh equity shares to existing shareholders. Shares are offered in a particular ratio; for example, one share for every four shares held.

SECONDARY MARKET. Secondary market is a place where the trading of securities, issued in the primary market , takes place.

SHARE. A share is the smallest unit of ownership in a company. It is also called common share.

SHARE CAPITAL or EQUITY CAPITAL. It is the owner’s claim on a company’s assets after all other claims are settled. When a company starts, the share capital is the amount contributed in the company by its owners.

STOCK EXCHANGE. It is a platform where buying and selling of securities (both debt and equity) takes place.

SYSTEMIC RISK. It is a market-wide risk that can affect companies across sectors.

ZERO-SUM GAME. In a zero-sum game, the game that is being played has a fixed pool of money. If you lose money. It goes to the other players, and vice versa. When the game ends, the total amount of money in the pool remains the same as when the game started.

A common misconception in India is that stock investing is a zero-sum game. In fact, when the company’s earnings per share rise, it leads to an increase in wealth of all its shareholders.