Intraday Trading Tips

  • ·         Study the types of stocks of companies you want to invest in
  • ·         Buy shares of different companies from different sectors
  • ·         Buy/Sell for intraday and square off the position as soon as desired profit is achieved
  • ·         Check the trend patiently using technical analysis and accordingly, go for fewer transactions
  • ·         Trade only in high liquidity stocks (preferably NSE 200 stocks)
  • ·         Always use protective stop losses
  • ·         Do not carry forward a loss making intraday trade

What is Rule 72?

*RULE 72*

*What is Rule 72?*

In personal finance, if you divide the number 72 by the rate of interest, you get to know the number of years it will take for you to double the money..
Eg: if the rate of interest is 9%, simply divide the number 72 by 9% and the answer is 8. Thus it will take 8 years to double your money if you invest at 9% p.a. rate of interest.

*INTEREST:* We can use this rule in reverse to know the rate of interest needed to double your money to achieve your set goal.
Eg: If you have 250k today and you need 500k in 5 years. Just divide the number 72 by 5, the answer is 14.41%. Thus you need a type of investment avenue, where you earn at least 14.41% p.a. as rate of interest/returns to double your investment amount in 5 years.

*INFLATION:*
This 'Rule 72' helps you to understand about inflation also. It helps you to calculate the amount of time it will take for inflation to make the real value of money half. Let's say present inflation is 5.5%. When you divide 72 by 5.5% the answer is 13.09 years.  That is to say, if you have 100k in your kitty today, it would take around 13.09 years for the value of the money to be halved..

Hope it helps you in your day to day investments and other finance related activities.

PIVOT POINT TRADING TECHNIQUE

 A PIVOT POINT is  average  price of  previous day’s high, low and  close  prices. It is used to determine the overall trend of the  current market scenario, that is,  you can guess the upper (RESISTANCE)  and lower (SUPPORT)  level of the price  moving during  current trading.   

What is SUPPORT  and RESISTANCE ?

 RESISTANCE  means if the  price of a stock cross Pivot point and move upward  then it  may go upto certain levels that is called  RESISTANCE .