When we can buy shares in Stock Market..!!!

 

 

In the
share market investment or buying shares for trading will be based on two
analysis one is Fundamental analysis and another one is Technical analysis for
fundamental analysis we need to go through the company data and its financials
form time to time. And in case of Technical Analysis one should know about much
more information as to looking on charts and its formations by candlesticks. One
has to identify the patterns forming in chart based on price movements of the
stock over a period of time. Here are some candle stick patterns which we have
to identify in price movements for Buy signal, it mean up on confirmation of
this pattern we can buy the stock for investment or for trading. This pattern
can be formed in any of the time frames in the chart weather it may be minutes,
hours, days, months. Usually 15 minutes chart is used in intraday trading and
Daily time frame for investment purpose.

The candle
stick patterns for Buy signal of share of a Company:

1.      Bullish Unique three river bottom

2.      Bullish break away

3.      Bullish Three inside up

4.      Bullish three outside up

5.      Bullish abandoned baby pattern

6.      Bullish Concealing baby swallow
pattern

7.      Bullish Homing Pigeon Pattern

8.      Bullish Ladder bottom

9.      Bullish Matching low

10.  Bullish stick sandwich pattern

11.  Bullish three star in the south

12.  Bullish Tri Star pattern

The explanation for all these Pattern formations will be clearly discussed in Technical Analysis head one by one 

 Apart from
this one can buy the shares of a company based on fundamental analysis also
some of the key points

1.      Companies which pays Dividend and
the market price of the share is greater than the face value

2.      The profits of the company are on
incremental basis and pays dividend equal to or more than bank interest rates.

3.      The Price of the share is all time
high in bullish trend and now the share is available at low price.

4.      Companies of some sectors are steady
or in good position even in crisis or bearish trend, if such shares are
available for low prices.

5.      Always buy the shares in low prices.
 

 

 

Intelligent Investor

 

An Investor
who thinks beyond the market fluctuations and among all the investors, and he looks
over all the parameters with the fundamental analysis and technical analysis. An
Investor should know about the possibilities of results and should be prepared
for them both financially and psychologically. He want to benefit from changes
in market levels—certainly through an advance in the value of his stock
holdings as time goes on, and perhaps also by making purchases and sales at
advantageous prices. It is easy for us to tell you not to speculate; the hard
thing will be for you to follow this advice.

 

Thought Process of an
Intelligent Investor:

1. Intelligent
   investor will not invest in high price shares. He will trade in high value
   shares but never invests in shares with all time high prices.
2. Intelligent
   investor will not buy the shares those in Speculation.
3. Intelligent
   investor will not invest when the market is in Bull Rush. i.e. don’t buy the
   shares when all are in a rush of price hikes.
4. When
   the market is in bearish side and when no one are interested in buying the
   shares find out the stocks with best fundamentals and invest in that company.
5. An Intelligent
   investor will not invest in the shares or stocks based on rumors and fake news.
   He will investigate in to the matters to find the fact.
6. The
   companies, which are showing profits even in crisis, are the best companies to
   invest. The intelligent investor will find this type of stocks.
7. The
   intelligent investor will find out the stocks with a low Price Earnings Ratio. And
   invest in the same company.
8. Price
   earnings Ratio is arrived by dividing the Market Price of the Share by Earnings
   per Share.
9. When
   the Market is in Crisis find the company which gives the lowest Price Earnings
   Ratio and the Debt to Equity Ratio Does not exceeds 1:10.

Qualities of a Successful Trader

 

Trading in Stock market or a forex
market is an Art. No one can do it as just like that. It needs more propaganda
to be a success full trader. Being a trader is not an issue but being a successful
trader is very big task, off course it’s quite easy when you are aware of all
the things which goes around the Stock market and forex market. Those who are
buying and selling the shares or securities in stock and forex market are
traders where as the successful traders will also do the same but they do in a disciplined
manner. In trading one must have discipline and no Emotions also including
Knowledge on technical analysis.

Some
traders will be concentrates only on News or Fundamental or Technical analysis.
But a successful traders will be look in to all aspects.   

These are
the Qualities of Successful traders:

1.   Make your own rules for trading
based on your mind set and lifestyle and financial position.

2.      Strictly not to break your Rules.

3.      Always use Stop loss

4.      One have know when to exit from the
market.

5.   Trade size should be determined on
the basis of trading account equity and stop loss price for every day

6.      Never trade more than ten percent (10%)
on any given sector

7.      Never exceed a loss of 2% to 5% on
any Trade.

8.   Always trade with capital that which
you can afford to lose. That mean it does not matter if your capital become
Zero

9.    Never Trade with Borrowed Money
because if you lose you have to repay it with your future earnings.

10.  Don’t over Trade based on time frame
you have chosen to trade.

11.  Up to Date with the News related to
relevant stocks which are in his watch list

12.  Have to research in to the affairs
of the company matters of last two to three years.

 

 

Scheme of revival and rehabilitation

Sec 261 of the Companies Act 2013

 

(1) The company administrator shall prepare or cause to be
prepared a scheme of

revival and rehabilitation of the sick company after considering
the draft scheme filed along with the application under section 254.

 

(2) A scheme prepared in relation to any sick company under
sub-section (1) may

provide for any one or more of the following measures, namely:—

(a) the financial reconstruction of the sick company;

(b) the proper management of the sick company by any change
in, or by taking over, the management of such company;

(c) the amalgamation of—

(i) the sick company with any other company; or

(ii) any other company with the sick company;

(d) takeover of the sick company by a solvent company;

(e) the sale or lease of a part or whole of any asset or
business of the sick

company;

(f) the rationalisation of managerial personnel,
supervisory staff and workmen in accordance with law;

(g) such other preventive, ameliorative and remedial
measures as may be

appropriate;

(h) repayment or rescheduling or restructuring of the debts
or obligations of the sick company to any of its creditors or class of
creditors;

(i) such incidental, consequential or supplemental measures
as may be necessary or expedient in connection with or for the purposes of the
measures specified in clauses (a) to (h).

 

Appointment of interim administrator

Sec 256 of the Companies Act 2013

 

(1) On the receipt of an application under section 254, the
Tribunal shall, not later than seven days from such receipt,—

(a) fix a date for hearing not later than ninety days from
date of its receipt;

(b) appoint an interim administrator to convene a meeting
of creditors of the company in accordance with the provisions of section 257 to
be held not later than forty-five days from receipt of the order of the
Tribunal appointing him to consider whether on the basis of the particulars and
documents furnished with the application made under section 254, the draft
scheme, if any, filed along with such application or otherwise and any other
material available, it is possible to revive and rehabilitate the sick company
and such other matters, which the interim administrator may consider necessary
for the purpose and to submit his report to the Tribunal within sixty days from
the date of the order:

 

Provided that where no draft scheme is filed by the company and a declaration
has been made to that effect by the Board of Directors, the Tribunal may direct
the interim administrator to take over the management of the company; and

(c) issue such other directions to the interim
administrator as the Tribunal may consider necessary to protect and preserve
the assets of the sick company and for its proper management.

 

(2) Where an interim administrator has been directed to
take over the management of the company, the directors and the management of
the company shall extend all possible assistance and cooperation to the interim
administrator to manage the affairs of the company.