Tuesday, December 25, 2012

Friends , try this calculator to calculate the returns from your fixed deposit.
If you want to get monthly income of 10000 from your FD. then with 9% interest rate, you need to invest Rs.1000000/-.
http://www.investmentyogi.com/widgets/IYMaturityValueonTermDepositsCalculator.aspx

Wednesday, December 19, 2012

As discussed yesterday, we will see the results of UGAR SUGAR trading on 19-12-2012 upto 2.00PM

Trade Buy Buy Buy  Trade Sale Sale Sale PROFIT 
Time Rate Qty Value Time Rate Qty Value RS
1 10.11am 14.00 100 1400.00 11.55am 14.20 100 1420.00 20.00
2 10.52am 13.90 100 1390.00 11.55am 14.10 100 1410.00 20.00
3 11.24am 13.80 100 1380.00 11.55am 14.00 100 1400.00 20.00
total 4170.00 60.00
Here we will get daily Rs. 60 on a investment of Rs. 4170 ( which is getting released everyday for next day trades). There are 20 trading days in a month. Even if we consider that we could trade for 10 days in a month, We will get a profit of Rs. 600 per month. It means we get a return on investment of 172 %in a year. For practical purposes , we will reduce losses and expences 50%. Still we may get 172/2=86% profit in a year.

Is is not something exciting!

Tuesday, December 18, 2012

Do you know the power of compounding ?
Suppose we want to invest Rs.1000 monthly in bank @9% interest rate, then the gains at various periods and various compounding is shown below,

NO. OF            DAILY     MONTHLY        QUARTER         YEARLY
YEARS          COMP     COMP        COMP            COMP
1 12603.72 12601.39 12596.82 12577.3
2 26394.38 26384.88 26366.18 26286.55
3 41483.77 41461.36 41417.25 41229.64
4 57994.19 57952.12 57869.32 57517.61
5 76059.47 75989.82 75852.81 75271.49

Hence here after do ask the bankers , how they are compounding the interest?
18th Dec 2012,
From today we will take some live examples of intra day / short term trading techniques.
Following live examples are for learning only. Do not take any position unless consulting to your advisor.

For this we need to keep aside 26000. 

From tomorrow, we will take position of UGAR SUGAR 100 shares at a time. 
1. At 9.25 / 9.30am, See the buyer seller rates. Whenever there is a gap of 0.30 between selling and buying rate (suppose  buy rate 13.55 & sell rate 13.85 )
a. Put Ist buy order 0.05 above buyer rate( 13.60), 
b. IInd buy order @13.50,
c. IIIrd buy order @13.40,
d. IVth buy order @13.30,
e. Vth buy order @ 13.20 and so on.

Tomorrow morning we will start observing the rates of UGAR SUGAR

Monday, December 17, 2012

Tuesday, 18th December 2012

Magic Rule of 72

If you want to double your investment, how many years are required with the interest rate of 8.5 % ?
Can you answer it in one minute?
Yes! there is rule no 72 for this. You divide 72 by  interest rate and the answer will be the number of years to double your money.
Suppose you are investing Rs 1lac @9% interest rate. then 72/9= 8 years will br required  to double your money.
 Is is not great idea ? Use it before investing in any instrument.