Indian Option Trading Academy (IOTA), is the brainchild of Rajendra Pathak. With a combined experience of 30 years in Investment Consulting and Tax Planning in the Financial Services Industry, it was time to venture into Share Trading and Technical Analysis Training. With over 4 years in the Share Trading and Training Services and sharing knowledge to Stock market aspirants we aim to provide the right technical trading skills to make a safe and regular monthly income from the stock market.
Let’s understand what is Market Capitalization
MRF = 69275
HDFC Bank = 1873
Which Company is Bigger? What do you think?
If you think that MRF is a bigger company as its share price is too big compared to HDFC bank, then you are wrong.
The Market capitalization of HDFC bank is 15X of MRF. HDFC bank is much bigger than MRF.
Market has Classified Companies in various Categories, according to Market Cap.
|Less than 500 Cr||Small cap|
|Between 500 Cr to 10,000 Cr||Mid Cap|
|Greater than 10,000 Cr||Large cap|
Hence before investing in Stocks one needs to understand the Market Capitalization of a Company and various other Fundamentals and Operating Financial Ratios, etc.
Risk Appetite and Risk Profile also plays key roles in Equity Investing and Trading.To select the right Stocks across Categories to build your Portfolio, Talk to us Once.
DID YOU KNOW???
Less then 1.5% of India’s population Invest in Equities. India is still saving Money in Bank FD, Post Office, Insurance Policies, Bonds, etc. where the Annualised Rate of Return is in range of 5.5% to 7% p.a. which is much Lower than Annual Inflation rates ( 10-12%pa)
“Compounding is the Eight Wonder if the World”-
But, is your saving giving you Compounding returns Year on year..??
Let’s See, who is investing in Equities and in our Stock Markets…..!!!
FII (Foreign Institutional Investors) hold above 28% in our Equity Market.
Our Govt Holds major stakes in all PSU etc.
LIC and Major Corporates including Banks and Pvt Insurance Companies invest in Equity Market. So, why do retail investors stay away for investing in the Equity / Stock market for short term and long term?
Why, inspite of having trending digital platforms and technology for investing and trading, retail investors , still invest in FD and Post office??
The only answer is “Lack of Knowledge and Financial Illiteracy”
BENEFITS OF INVESTING / TRADING IN THE STOCK MARKET
Difference between Investment and Trading….!!!
Investing and trading are two very different methods of attempting to profit in the financial markets. The goal of investing is to gradually build wealth over an extended period of time through the buying and holding of a portfolio of stocks, baskets of stocks, mutual funds, bonds and other investment instruments.
Technical Analysis ,Risk Management and Money Management are the main 3 ingredients for Success in Trading.
Trading is a method of holding stocks or trading the Index ( NIFTY/ BANK NIFTY) for a short term based on technicals and book Profits as the trend or price shows reversals.
Time factor : Trading can be Intraday or Positional also. Intraday trading is done in time frame if 15 mins to 1 hr or till 330pm. ( Mkt Close ) and Square off. For investments the time frame is one year to 5 yrsor more for Capital growth, which also fetches Tax free Dividends, Splits , Bonus issues , rights etc.
Risk: Both Investment and Trading involves some amount of Risk. Hence Risk management becomes key for Traders and Investors in the Equity market.
Understanding Risk Mgt, minimizes Losses and Increases your Profit ratios.