Monday, 30 September 2019

Today’s Smart Professional MUST Be An Investor: The Amazing Benefits of Being In The Market

Gone are the days when only the most affluent invested in stocks. Salaried professionals and millennials
now make smart investment decisions, without any peer pressure. 
These folks know that money is a tool to be utilized smartly to achieve the life that they want to enjoy in
the future. 
In fact, salaried professionals, do not mind investing their income across a mix of different channels to
earn big over time. They are not shy of taking the right amount of risk to increase their savings
exponentially. 
However, a significant portion of these professionals also shies away from investing in stocks. We will
discuss their reasons later in this article, but first of all, let us turn to those, who invest regularly. 
Do they succeed? 
They do if their investment decisions are based on careful research and an understanding of the market
trends. For them, there are many benefits of investing in stocks

The Inherent Benefits of Investing 
A bigger return in lesser time
Unlike other forms of investment, stock investment provides every investor with a chance to increase
their savings at a high rate over a short time.

Reduced Risks
The stock market in India is regulated by a framework called the Stock Exchange Board of India, which
safeguards the rights of the investors, thus reducing risks to a large extent. 

Liquidity
The stock investors in India enjoy high liquidity as they can get in as well as get out of any stocks and
realize the proceeds very quickly.

Options
India is known as a stock-pickers paradise with a variety of “investable” scrips in the NSE and the BSE. 
Convenience
The investors can trade stocks on digital platforms, making it convenient for them to engage in
investment activities regularly. 

Become a significant part of the nation’s growth
India is still developing at an increased pace, and you can be a part of this growth and also earn profits
from that rapid growth.  

Feeling of ownership
Well to stretch it a little, when you trade in a company’s stock, you are holding a share of that particular
company and being, in however small a part, its owner. That is quite a good feeling, besides the fact that
you regular dividends and bonuses. 
Why Should More Young Professionals Start Investing in Stocks?
The salaried as well as self-employed young professionals in India are earning enough to support
themselves and their families, but when it comes to investing a share of their income regularly, they are
often ill-informed. But unlike the past, jobs do not guarantee a proper retirement lifestyle. It is up to the
youth to plan their retirement early and build up their savings for that period in life. That’s where investing
in the stock market can play a key role.
The main advantage of starting to invest at an early age is you can build up your options. The biggest asset
in stock investment is time. If you start investing early, you will have numerous options to increase your
savings exponentially. You can play the long game and stay invested through cyclical events and reap the
rewards.
Also, millennials have a yearning for the entrepreneurial life. Investing in stocks can open up new
opportunities for such ambitious folks to gather wealth in a shorter period of time and then spend on
building their start-up to change the world. They needn’t depend on anyone or even take heavy loans to
begin an entrepreneurial journey. 
Young people should also invest in stocks to become an active contributor to the country’s economic
growth. The more they invest in the stock market, the greater the notional capital available to companies.
This cushion helps them plan better for the long-term, create more jobs, and drive more prosperity. In
other words, stock investors indirectly drive the nation’s growth with their investments. 

What prevents young professionals from investing in the stock market?
Now that you know why more professionals should invest in the stock market, you should also know
what prevent young people and professionals from investing in stocks. Some myths must be busted
That apart, here are some oft-repeated excuses that aren’t really valid when weighed against the benefits.
It is too early
At the beginning of their careers, the young professionals wish to enjoy the life that they have always
imagined. They wish to spend their income on materialistic things that they have always wanted to
achieve for themselves. Unfortunately, smart investment takes a back seat until later, perhaps until too
late.
 
I have other plans As a salaried professional, you may have different plans for your future, and investment may not be your

priority. That is fine, as long as you can generate that amount of wealth to support your productive life as
well as your retirement life. However, if you can’t, investing in stocks can be a lucrative option for you. 

Too many commitments
You may have to buy your own apartment, or a car, or even support your aging parents, your child’s
education, and so many other commitments that you cannot possibly think of investing your hard-earned
money in stocks. However, you should realize that investing smartly will only help you meet these
commitments and not take away from them. 

Investment planning is for the rich No, it isn’t! Today, a significant percentage of salaried
professionals are taking stock investment seriously. If it was only for the rich, would 25 million Indians

dare to invest in stocks? 


It’s time to stop the excuses. For professionals who want their money to grow, it’s time to start learning
more about the stock market and its investment avenues. It’s what the smart professional would do.

Wednesday, 25 September 2019

10 Stock Market Myths that You Need to Stop Believing Right Now

Most of us have faced situations where people have advised us not to invest in the stock market.
The "market" debate is full of delusions and misinformation. In fact, it is the misinformation that
prevails in the minds of a lot of people, that prevents them from investing and making the best
possible returns.
There are some commonly held myths about the stock market that need to be busted. This blog
is an attempt to deliver the truth to the common people.
It is also important for people to understand the true picture before they decide their strategy to
invest in stocks. As a savvy professional you should be aware of these stock trading myths if
you plan to invest in stocks soon.

1. Stock trading is like gambling
Don't deny it - you have heard this surely. But it couldn't be further from the truth. In gambling,
wild guesses are the norm and you are most likely to fail. But, if you meticulously research on
the stock market trends and analyse the current situation before investment, you will almost
certainly gain in the long run. An individual, who trades in stocks after reading the charts and
analysing them, is not a gambler, but a savvy investor.

2. Stock trading is for the rich 
Well, this is one of the most common stock market myths, which has no logical basis
whatsoever. People, who do not understand the functioning of the stock markets, believe that
it is only for the rich people, who can afford to take risks. They also think that it requires a lot
of money to begin investing in stocks. However, you will be surprised to know that everyone can
invest in the equity market, even with an amount as low as INR 500 every month. In fact, it is
way cheaper than real estate investment, which is a common trend among the middle-class
population.

3. Higher risk is equivalent to better returns 
Not always! According to many armchair financial advisers, if any stock has the highest amount
of risk, it is likely to produce bigger returns. But, that's one of the most prevalent myths about
stock trading, which needs to be debunked. You should invest only after a careful analysis of
the market and it's trends. You should also have sufficient knowledge about the fundamentals
of stock investment before you take a step forward. Risks will not guarantee better returns, but
smart investment, most certainly, will. Good companies become good companies if their
fundamentals are strong. And strong fundamentals are never risky.

4. Market trends will get repeated 
Not always! To decide what stocks to buy today, you should not only depend on the past
performance of the stock, but also on the current market scenario, predictable changes, and
your specific needs and preferences. If only past performance mattered, everyone would be
making a huge amount of money through stock investment, just by repeating history.

5. Share market investments can bring you quick money 
Patience and perseverance are considered important qualities for a share market investor.
Discipline is integral, coupled with knowledge and awareness. If you want to get rich faster, well,
the share market is not the place for you. It is a myth that investing in shares will bring you huge
profits in no time.

6. Invest in the best industry 
A knowledgeable financial advisor will never ask you to invest your capital only in one industry.
What was that about eggs and baskets? You should diversify your investment to minimize risks
and gain better returns on your investment with time.

7. SIPs guarantee loss aversion 
While SIPs have for long been associated with Mutual Funds, we are also beginning to see the
emergence of SIPs directly investing into stocks. But yes, SIPs cannot guarantee against loss.
The Systematic Investment Plans or SIPs have gained popularity in recent years, as they tend to
minimize risks caused by market volatility. However, they do not guarantee loss aversion. Of
course, they reduce the risks to some extent, but there is always a chance for the market to go
down, and SIPs cannot prevent that. Even if you incur a loss at a particular time of the
investment, you should stay invested longer and through various market cycles to reap the
benefits, which you will eventually.

8. It is a good bet to buy a fallen market darling
Let's turn to maths to illustrate the fallacy here. Suppose company X's stock price has fallen from
INR 600 to INR 80 per share and company Y's stock price has risen from INR 15 to INR 25 in the
same period. Which is the better get? Well, most people would invest in company X, believing that
it will gain back its previous position eventually. But cruel maths shows why this is a sure way to
burn through the capital See, X needs to rise about 650% to get back to its previous position. The
chances of such a rise are very slim. Hence, buying stocks from companies, just because their
price has fallen is not a good investment idea. The bottom line is, investment decisions should
not be made on prices alone. Although you should aim to buy growth companies at a reasonable
price, it is unwise to invest in a stock that has fallen drastically just for that reason.

9. Even a little market knowledge is enough for investing 
If you do not have adequate information about the market and you have no time to do extensive
research, you WILL lose your money. As we've said before, this is not gambling. If you want to
stand the chance to put your hard-earned money to work to generate returns for you then you
need to depend on research and an in-depth analysis of the market. It is best to hire the
services of an expert advisor, or, even better, to use high-tech software to keep yourself abreast
 of the most relevant information.

10. No stock goes up forever
Well, this is a field where gravity doesn't necessarily apply. Especially when you consider specific
time horizons, growth stocks have the potential to give you massive returns, even over a period
of time as long as a few years. Such stocks can help you generate huge wealth if you keep on
investing after understanding the market. Investors, who tend to withdraw whenever they get
significant returns over a period of time from these stocks, simply miss the opportunity to
exploit their full potential. The right stocks can always do better. The trick is identifying those
stocks. Consistent research can help you keep track of their growth and make calculated
investment decisions.
Think about this-By some estimates, about 20-25 million Indians are invested in the stock
market. If you consider Mutual Funds investment, another 82 million investors are participating
indirectly in the stock market. If stock market investments were so risky, why would so many
people still invest in them? However, investing blindly is not the right option. The key is
research and a comprehensive understanding of the stocks that make up the market. Knowing
 some of the prevalent myths about stock investment will also help you invest carefully and
achieve financial security.

Monday, 4 February 2019

SaralStocks "Higher Returns, Faster" - Product Description

Most stock investors get sub-par returns in the markets because:

  1. they can’t identify growth stocks without investing significant amount of time for searching;
  2. they keep losing money as they don’t use rule-based investment approach and when their stocks start losing value they  don’t sell when they should sell;
  3. the software tools available to help investors are hard-to-use, operate in silos and flood the user with data that only experts can understand.


SaralStocks solves these problems by automating end-to-end stock lifecycle processes. Discovery of growth stocks becomes simpler and quicker and Portfolio can be managed through algorithmic (“algo”) decision making that even a new investor can use.

The Nuts And Bolts Of SaralStocks
SaralStocks automates full range of investment activities for effective portfolio management through integration of best practices and technology in one tool. It eliminates need for spreadsheets, handwritten and mental notes, and gives clear visibility into portfolio.



SaralStocks offers a Do-It-Yourself tool which:
  1. has simple, uncluttered interface to help user in managing her portfolio.
  2. recommends when to enter or exit stock/markets through use of standard technical indicators.
  3. saves time with quick scan of markets helping user identify a small number of stocks from which to select few to add to Watchlist.
  4. does not burden user with humongous data. Cuts through market noise.
  5. Lets Watchlist to be shared with user’s investment group for joint stock discovery.
  6. helps in rule-based tracking of Watchlist.


Main features of SaralStocks:
Rules And Alerts
The product has user configurable rules which trigger alerts when conditions for the rule are matched. It also has built-in rules so the user can start using the application without any learning. The user can add or update these rules for Watchlist, Portfolio or cash allocation.
Research
The user can employ preset research filters such as "NSE high volume bullish - last 3 days" to see which stocks are moving upwards on high volume. Similarly by changing "Price Decreased by" value in "Edit Advanced Condition" dialog window, she should find stocks that have fallen in the last session. She can also set her own filter criteria, and save for the future. SaralStocks lets user scan stock markets with single click for growth stocks.
Alongside research based on Charts & various Technical Indicators, user can validate her hypotheses with in-depth research available on free external websites through links  provided to: Economic Times, Screener.in , IndiaNotes, Yahoo Finance, Zerodha & others. She can then handpick stocks to put on Watchlist for further observation.
Portfolio
After selecting a stock to add to Watchlist, rule-based alerts will help her make buy or not decision. The decision parameters could be one or more of CAGR, price, trend, volume traded in a period of time, etc.
Trade book or transaction data can be imported with one-click from the user's broker. Just as for Watchlist, by applying rules to Portfolio, user can decide whether to sell/hold/buy more for any stock. Cash Alerts on liquidity position let user know if she has too much cash uninvested, or too little left to invest if in case of a market correction.
SaralStocks helps user to follow systematic approach for maximizing her Portfolio without investing too much time. It also helps in detecting a trend sooner.
Watchlist And Watchlist Sharing
The user can share Watchlist with her friends or advisor for joint stock discovery. The user's advisor can share own Watchlist and tell her which stocks to keep track of, thus the chances of missing important buy opportunities or recommendations because of inefficient information exchange are greatly reduced.
A Watchlist can be arranged by its owner around any of these parameters: Price, %Gain, CAGR, days since put on list. These parameters help her in quickly identifying stocks that are on the move. Her alerts & notes for each stock can be made visible to other users with access to her Watchlist.
Daily Email
User receives daily email with a scan of her Portfolio and appropriate alerts based on MACD & other important indicators..

For an online demo of the tool, please contact SaralStocks Sales team:
Mobile : +91(989) 007 1829


About Us
SaralStocks is a product of Affingo Technologies LLP founded in 2015.

Suhas Patil, Founder and CEO, is a B.Tech from IIT Bombay and MS from New Jersey Institute of Technology, USA. He drives strategy & product innovation at Affingo.

Mayank Agarwal, Director of Marketing, has rich experience of working with financial services clients in India and abroad. He is a graduate of IIT Kanpur and IIM Calcutta.