Monthly Archives: April 2019

4Apr

Explanation On The Types Of The Stock

Explanation on the types of the stock

Greetings to all! Hope all of you are doing well. I am here with the second part of the Stock market learning (also on Epic Research) article. In my previous article, you read about what the stock market is? Hope you read that article and understand it. Let’s Start further.

What do you think about how a company starts? To start a company there is a need for unique ideas and obviously money to invest in. Suppose there is a company that founded with three partners and 2 investors with a great idea of the business and some investment at that time these five are the partners of the profit that the company generates. After some time this company needs more amount to invest in for the growth of the company for that it needs to sell some shares that would definitely decrease the percentage of shares these five have. Since the company grows the early investors sell their stocks to earn the profit on their investments. That is why the company need more money and it allows a public figure to purchases its share. The investment of that five of the company is private and the stock that is sold to the public figure is public stock. Is it hard for you to understand? Don’t go for the deep sense, just keep in mind that not only an investors ( like your friends, family member or you too) purchase shares but also the insider of that particular company also have some percentage of shares.

There are mainly two types of stock. Such are:

1. Common Stock: Maybe you heard about it because commonly most of people talk about this kind of stock. These are the stocks that have a higher rate of return than the bond (don’t confuse with the term “bond” I will explain it further in this article). There is more risk in these stocks. If you purchase common stock of any company you have one voting right with it, that help you to vote board of directors of that particular company. So I think through these details you get the simple definition of the common stock that is “ Common stock is the type of the stock in which along with the stock you also have one voting right”. Now talk about another type of the stock i.e. Preferred Stock.

2. Preferred stock: This is another type of stock. In this type of the stock, you don’t have a voting right (in some cases you have a voting right in preferred stock, so it depends on the company of which stock you purchased). It has less risk when compared with the common stock. The company has a right to repurchase preferred stock from you when required or when such a situation occurred (only if you are the purchaser of the preferred share of that company).

When we look at the above two types we only get a difference of voting right between these two. But there is more difference between them. One of the difference is that there is a fixed dividend on the preferred stock whereas dividend of common stock vary (In some cases there is very dividend on preferred stock too, it depends on the company). The another and the important difference is that when a company is out of business the dividend of the company firstly distributed to the creditors, bondholders and then the preferred stockholder and after that, if some amount remains it distributed to the common stockholders equally. So there is no guarantee of the returns on the common stock. This is the reason that common stock have more risk.

When a company needs money to pay off bills, or for growth or for some other reason rather than taking a loan from the bank it takes money from the public figure and provides them a bond at a fixed rate of return. At the stage of the bankrupt of the company, it firstly pays to the bondholders.

A company can have more classes of the stocks it totally based on the company to company, that fits the investors of the company. A company has classes of the stocks to concentrated on the voting power. How a company does it? By dividing investors into groups. One group have ten voting rights per share but this group has a limited member, and another group has one voting right per share.

About the Author :

I am a financial analyst in Epic Research. I like to learn and write about the stock market. I tried my best to write in such a way that it is easy for everyone to read and understand. I will further upload more article related to the stock market for learning purpose. Hope you are interested to read it.

4Apr

Basics Of The Stock Market The Thing You Should Know About

Basics of the stock market the thing you should know about

Are you new to the term “the stock market”? If yes and want to know about it (You can also know it from here Epic Research), then you are in the right place at this time. Why am I saying this? You get it after reading the whole article. If you already familiar with this term for them to know more about it is not bad at all. Am I right? Of course, it is right. Because the stock market is such a vast term. It require more and more time and learning each and every day about it to understand it closely. So without wasting the precious time of yours let’s start it.

The stock market you definitely hear that two words in your life either you know or don’t know about it. Do you ever think about it that what makes others talk about it? If you are an investor then you definitely know it but that time I am talking to the one who isn’t an investor. Is it just about the money that everyone talking? Not at all because they’re so many ways to earn. When I am saying earn I mean to earn money by money.

Each and everyone wants to earn more and more that they fulfill own and their family members need. Perhaps not only the need but to show luxurious status. Perhaps there are other ways too to earn but here I am only talking about the stock market, Why so? you understand it in the future. For yet, you have to understand what stock market is?

To understand the stock market in a very general essence let’s split the term into two words first is stock and second is market. What do you understand from the word “market”? A place where the one sells and the other is purchase a particular product and as a purchaser, you have to pay some amount to purchase that particular product to the seller, yes exactly. So you know about the market now you have to know what stock is?

Stock is the product that is sold and purchase in the market. The stock is a part of the company that you purchase from that particular company and for that, you pay off some amount to that company. How many parts you have of that company is depending on how much you pay to buy that. I think now you understand what the stock market is? “A platform where one sells and other purchases the stock.” It sounds simple, Right? But it is not as simple. As I said before it is too vast to understand.

If you really understand the meaning of the stock market then definitely you are thinking about that if you have to pay money to purchase the stock then what is a need to purchase it? Maybe you are wiser than me that you know why one purchase? But initially, when I started to learn about the stock market this question arose in my mind that why a company needs to sell stocks and one purchases it? I visit many pages to find my answers. And I get to know that every company needs a huge amount to increase its market, to run the business successfully, and to grow.

When you buy the stock you actually invest money in that company capital that helps that company to run its business. But the thing is that what makes someone exciting to invest in a particular company or say help to that company in its growth. As you also know that Todays, no one helps anyone without any profit? Yes, you get it right, the profit. Profit is the thing that makes the one excited to invest in a particular company. How you get the profit is based on how the company performs in the market. However, is it not the right time to know how the company earns and how you get your profit over the stock that you purchases. We will understand everything about the stock market Steps by steps. Till that do your homework honestly, means that read and learn about what stock market is?

About the Author :

I am a financial analyst in Epic Research. I like to learn and write about the stock market. Here I start to write about the stock market from the very basic for the learning purpose. Hope it will interesting and simple for you to understand. I will post more articles step by step to let you people know about the stock market.

4Apr

Effects Of IPL 2019 On The Stock Market

Effects of IPL 2019 on the Stock Market

Hi Everyone,

Year 2019 is going to be a very important year for stock market. This year brings lots of opportunity to make money,so don’t just rest on your bed for the whole day and think about earning. Wake up! its your year convert this opportunity and start making money.

There are several major events like Indian Premier League (IPL) 2019,General Election (5 Reasons To invest before 2019 General Election) and Cricket world-cup (ODI) which are golden opportunity for everyone who invest in stock market.

This Article will help you to convert all this golden opportunity into money making through best investment in the stock market. Check-out Epic Research Facebook page to see the quality of work and the client satisfaction.

Now there might be a question arising in your mind that “how can an IPL (a cricket tournament) affect stock market?” So the answer is simple, Thought the IPL 2019 is not directly related to stock market but it can give some important insights to invest in the stock market.

I came up with key takeaways for investors or traders from IPL 2019 and will help you to look at the 5 key lessons to learn from IPL 2018. This lessons are based on the quality and quantitative analysis to provide you the best insights…..

Below are the 5 Key Lessons to learn from IPL 2018 :

Lets look at all the 5 key lessons in details which can help us this year not make the same mistakes again and lose the opportunity to earn lot of money through this events.

  • Diversify risk : Just like the IPL captain does,taking risk with the extra bowler instead of main bowler in such a hard wicket because his focus is adding one more wicket to extra, Investors should also spread their risk just like the captain. So lower the risk you start off with while investing ,the higher are your chances of being profitable.
  • Do the Maths Before Investing : Investor should focus on various aspects such as External Environment, understanding the stock and the main structure just like an IPL captain does before the match (Condition of Pitch, weather etc ) .
  • Strategic Time-out : Just like in an IPL the whole game changes after a strategic time-out taken by the captain with a new strategy to come-up the game again, Investor or a traders should also focus on their strategic time-out in the stock market because by just talking and thinking about the investments you are likely to develop only one track mind. So take your strategic time-out to rethink, re-strategic and then re-assemble.

  • Construct Your Portfolio : Your portfolio must have a mix of bonds,equities, gold and liquid assets together just like an IPL team has a mixture of aggression and defensiveness, pace and spin,youth and experience etc. in order to take challenges in the market.
  • Points to Focus in portfolio : “How did an IPL team Captain manage to defend 3 low scores consistently? Only-bowling alone is not the answer. He managed to tighten the fielding in the last few overs to an extent where there was little room for the batsmen,”. So for all the investor or traders it must be noticed that in your portfolio there are key impact points. “Just focus on them and your portfolio returns will be taken care of,”

I Hope this points will help you to get steps forward in IPL 2019 and help you make lot of money in the stock market. So wake up and start it from today because there is no tomorrow. Let me know in the comment box if you have any better suggestion regarding this topic.

Be the Champion Today

If you are new in the stock market and worried about your investment then i suggest you to contact Epic Research HR team and feel free to call.

4Apr

5 Winning Tactics For Stock Market

5 Winning Tactics For Stock Market

I know you all are in hurry to know about worthy stock market tactics but before rushing directly for all the tactics you should check-out Epic Research before investing your money. Epic Research is one the fastest growing advisory firm. We offer services in Derivative,Commodity,Stock & Currency market to provide accurate trading advice.

Tactic No.1 Only stocks doesn’t matter, Quality Businesses also matter

This tactic is foremost and very first tactic of the 5 winning tactics of stock market

Almost every investor do not recognise the business they are investing in, they just follow brands and symbols of some successful corporates that everyone in the stock market follows which leads them to loss in the stock market and they start shouting that stock market is place of wasting money.

Let us take an example of buying a shop. What will you analyse before buying ?

  • How it will manage the change in trends
  • Shop’s competition
  • Strength of shop’s competition
  • Sales consistency
  • Overall sales
  • Product of the shop

Similar concept should be applied when you are making a choice of stocks. Never think that you are buying only few shares of the company think it as a you thought before buying a shop.

Deep analysis of the below point will help you to understand the first tactic of stock market :

  • Price to book value
  • Operating Profit Margin
  • Return on equity
  • Current ratio
  • Dividend yield
  • P/E ratio
  • Debt to Equity Ratio
  • Price/Earning Growth Ratio
  • Interest Coverage Ratio
  • Asset turnOver Ratio

This above points will help us understand

  1. Worth of the company
  2. Compare a company with its peer’s
  3. Financial soundness of the company

Tactic No. 2 Be a Long term investor rather than going for Intraday trading.

Once you have deluded about the quality business it’s now time to make a choice on duration of investment which is the second winning tactic of stock market.

“Buy Right and sit Tight” memorise it as the stock market mantra because this can help you to be in the list of millionaires.

Points to remember in the second tactic

  1. Because of temporary hype in the market do not get besotted
  2. Investing in a stock to make quick money can cause a heavy losses
  3. Be a long term shareholder of a company and do not capitalize on the basis of current news of company

Tactic No. 3 High Bargaining among thousands of stocks.

Before choosing a stock for investment go for in depth analysis about thousands of stocks after choosing the right stock now it’s your time to show your patience. Keep tracking about that stock and invest in it when it is available at a very high bargain price.

Investing in Undervalued stock

Analyzing the fundamentals of the company like revenue, assets and earning, intrinsic value of the company can be found and if this value is greater than the current price then the stock is definitely undervalued stock and it is quite worthy to invest in that company.

It becomes very difficult for an individual to analyse thousands of stocks and choose the right amongst thousands of stocks. In this case, you can outsource this portfolio management scheme to a professional financial planner or wealth manager.

*choose a capable and customer centric wealth manager.

You can also visit Epic Research to find right professional financial planner for your investments.

Third tactics can be achieved if you have patience and time or by outsourcing it to professional wealth manager.

You can be master of third winning tactics of stock market if you remember the below two things :-

  1. Buying a very good stock at a very least price (Bargain process).
  2. Have a in-depth analysis of stocks of at least 1000 companies.

Tactic No. 4 “Hot Stocks” stay away and Run towards “Boring Stocks”.

Hot Stocks are those stocks which have attention catching activities such as high trading volume,severe volatility in the share price or when the stock market is in the news.

It is extremely danger to chase “Hot Stocks” and “funds”because every stock goes through non-performance phase and performance phase.

A performance phase will be followed by non-performance phase

Choose a stock which has the potential to perform in a long run and has the performed consistently well in the past long run.

“DO NOT RUSH TOWARDS STOCKS WHICH ARE HOT”

Boring Stocks are those stocks which are not performing well presently or are not in limelight in the stock market and has very least value in the market.

Boring stocks are the plants which we grows with time for better output :

  • Boring stocks grow very slowly like plants
  • Patience required to wait & see the growth
  • But the results of boring stocks are always rewarding
  • No move can give a frequent and better results.

Identifying undervalued and unnoticed stock is one of the important tactic to win the stock market.

You can also connect directly to HR of Epic Research to know in detail about stock market.

Tactic No. 5 Always Calculate the money you will make in the stock market

Before jumping blindly into the stock market first calculate the money you will make after investing in the stock market. It is sure that you will have to make lot of assumptions before calculation, it is difficult but do calculate your profit.

Take into account the expected share price appreciation and the expected dividend

Share price appreciation can be estimated by taking into account the change in Earnings per share and change in P/E ratio.

Return on Equity = Net Income/Shareholder’s Equity

EMOTIONAL BARRIER IN THE STOCK MARKET

  1. Pride and impatience : Our pride of achieving can sometimes tend us to sell the profit making stocks, so if we can wait longer then the same stock can give us huge profit than before selling.
  2. Non acceptance : Inability to accept the fact that you have made wrong investment decision for wrong stock at wrong time, make us retain and continue us to make loss-making investments in the stocks which can not give us acceptable amount of profit.

Conclusion

These 5 winning tactics of stock market if applied properly in the Indian stock/share market, they would be your road-map to riches.

You need to have clear route map in the form of financial plan, to strengthen your roadmap to riches.

Do you have any other stock market secret? Do you have any success stories based on the above stock market secrets? Kindly share in the comments section.

You can also connect with Epic Research on Facebook.

 About the Author

Hello everyone..

I am an engineer on paper but Digital Marketing Analyst on floor. Presently i am working as a Digital Marketing Analyst at epic research financial advisory company located in Indore.

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