5 Effective Swing Trading Strategies for Beginners to Minimize Risks

Summary

Are you a newbie who loves to trade but is afraid of the risks involved? Here in this article, I will discuss the right swing trading strategy to help you generate huge profits within a short period.

Introduction: Swing trading is a type of fundamental trading where investors hold the investment for more than one trading day. Sometimes you have to wait for several trading days or a week to witness the expected price movement and earn a reasonable trading profit.

There is a primary difference between a day-trader, long-term trader, and a swing trader. Swing-trader holds the investment for more than one day, unlike day-trader investors to earn profits. Also, a swing trader does not own the investment for a long duration like a trend trader. Swing traders make a profit based on intra-month or intra-week oscillations, swinging between pessimism and optimism. Now we will share six strategies to help you plan your swing trading system:

1. Right Stock for Swing Trading:

Correct selection of stocks for swing trading plays a crucial role in profit earning. You should select large-cap stocks as they are generally actively traded on major stock exchanges and can show price fluctuations in a short duration.

Right Market

Stock prices swing between low and high price extremes, and you can take advantage of the ride in one direction for many weeks. You can shift to a reverse direction swing when stock prices change direction.

As a swing trader, you have a different challenge in a raging bull market, and the bear market as the market lies between two extremes. In these trends, market movement is in one direction, and strategy is formulated based on long-term directional trends.

You can earn profits as a swing trader when markets move in a particular direction, either upward or downward, for a couple of days and repeat the same pattern. With this pattern, you can capture several opportunities for earning profits.

Use of Moving Average:

The use of Simple Moving Average (SMAs) is always beneficial in choosing stocks and strategies. SMAs provide information about the bullish and bearish patterns, along with support and resistance levels.

Support and resistance levels help in making decisions regarding which stock to buy. Simultaneously, bullish and bearish crossover patterns help decide the appropriate price level to buy and sell shares.

An exponential moving average (EMA) is another SMA variation, emphasizing the latest data points for better decision-making. With the help of EMA, you can get better trend signals and entry and exit points.

Use of API

API or Application Programming Interface is a programming code that parses responses, queries data, and sends instructions between two software platforms.

You, as a swing trader, can use an API for establishing a bridge between your preferred trading broker platform and a set of automated trading algorithms.

APIs are gaining popularity in automated trading systems, as many brokers give APIs for traders to connect with their screens directly.

You can now connect with the brokerage account for placing orders and sharing real-time stock information.

Baseline Identification:

In swing trading, it is crucial to identify the baseline with research on historical data. Once you placed the baseline on the stock chart with EMA’s help, you can decide the selected stock strategy. You can head up and short when stock is near the baseline trending downwards.

You might not be able to buy the stock at the perfect time when stock touches the bottom and vice versa. In a stronger uptrend or downtrend, you should wait till the share touches its baseline and signals its movement in either direction.

Taking Profits

It would help if you tried to take out profits when the stock prices reach upper or lower channel lines without becoming overly precise. Still, you might miss an opportunity to earn maximum profits.

When the market is trending strongly in one direction, the swing trader should keep patience till the stock price hits the channel line. On the other hand, it is preferable to take out profits before reaching the baseline in a weak market. This level might be before the change in direction, and a particular swing is not observed.

Algorithmic trading

Algorithmic trading, black-box trading, automated trading, or Algo trading are other technologically advanced trading forms. This trading platform uses a computer program with a pre-determined set of the algorithm (instructions) for placing a trade.

This algorithm is based on many parameters like quantity, timing, price, or any mathematical model. With the help of algorithmic trading, you, as a swing trader, can earn profits at a frequency and speed, which could not be possible for manual traders. Another advantage of algorithmic trading is that you can trade more systematically and liquid without impacting human emotions.

As a swing trader, you do not need to keep an eye on live graphs and prices; take efforts to place orders manually.

But at the same time, for becoming a swing trader, you need to study the technical analysis of stocks, including technical indicators, technical charts, and how to use these parameters to earn profits.

These factors have a significant impact on profits earned in swing trading.

You can suffer loss in some stocks irrespective of your experience and knowledge of technical analysis.

It would help if you used a stop-loss strategy for limiting the loss to a certain point. Stop-loss can restrict the loss up to a certain level.

Stop-losses might not be beneficial if your trade is in the opposite direction. If the market opens with a significant gap, in that case, despite stop loss, you can incur heavy losses.

Despite these risk factors, you can earn good returns, ranging between 5 to 10%, in short to medium duration. This return is regarded as much better in other conventional methods of investing.

You do not need to monitor the price fluctuations continually. You can focus on other things for your living.

As the holding period in swing trading is relatively longer, you do not need to search for the right stocks and the appropriate market position on a day-to-day basis. You can manage your trades with the help of price tickers and brokerage services.

Written by: Shubhada Pande, Blockchain Writer and Digital Writopreneur

Edited by: Rajinder Soni, Writopreneurs Coach, Digital Writopreneurs Hub & Academy

@shubhadapande – Hi shubhada, I have read your article and it is having a lot of information. But at the end of the article, you have not added the hashtag. Please do it next time or you can try if you can edit your article and add the hashtag.

The concept of saving money is all Greek to the millennial generation which is joining the workforce every year. An ever-increasing corporate job offers have put plastic money in the hands of the youth. Also in a few cases, these new employees will have their parents still working which turns out to be most important reason to not save money.

This has planted a question in their mind that why I should save. Hence most of them switch to reckless spending as a way of their life and this practice may prove to be expensive after a few years in their lives. Statistics for last two years indicate Indian household savings is at 15 year low probably due to this mindset.

There are financially organized parents who will make sure their children will start saving an adequate portion of the income once they start earning. If this habit is inculcated it would lead life to the path of success and prosperity.

For those who start saving from a young age, their investments and returns always prove to be an early bird advantage. As most of traditional investments would be available at a lower cost when you start early and returns would be higher as you can afford a longer tenure. On the other hand if the savings plan is postponed you may have a wide range of excuses like unpleasant surprises, job loss, health issues or any other emergencies which will not allow you to save. It is a general opinion that money flies once it leaves your hands. Hence we all must think about savings.

If saving money seems to be a challenge for you, following are the 8 easy steps to help you start saving a substantial amount:

1. Plan – once you start earning, it is natural that you will have plans to buy a motorbike, gadgets, or jewellery. Take a step back before you spend and set a timeframe for yourself. For example, if you consider 1 year this will give you ample time to save money. It is always better than taking a loan instantly. When you buy from your savings, it gives you a sense of accomplishment as well.

2. Prioritize – when you are at a decision point to spend or save, make a pertinent decision, for example when you are comparing between giving a party to your friends or joining a crash course for skill development, you should decide on the latter. The reason is that up skilling is an investment whereas throwing a party is an expenditure with no returns.

3. Be cautious – Whenever you want to spend something, check twice and spend only on what is inevitable. For example, most of us join a gym for fitness or yoga classes for mental and physical well-being as New Year resolutions. But if you want to save money, you can start watching YouTube videos to learn and train yourself. The only difference will be that you will not get a coach or trainer connection. So to fill this gap you need to watch motivational videos to help you feel inspired all the time.

4. Use free or economical options – Most of us live in cities and towns where food, grocery, and few essential services are delivered to our residence. It is for us to choose an appropriate service provider to save money, time, fuel and you may obtain additional benefits too. Additionally, to improve your savings you can start using public transport and carpooling.

5. Budgeting – Have an excel sheet to monitor monthly expenses. This will help you track your expenditure.

6. Automate – Once you receive your monthly salary, invest in your savings plan and then spend. If you make it automatic, it becomes even more convenient and will also ensure it never goes the other way round.

7. Shop Wisely – Engage in online shopping, look for upcoming offers, gift vouchers, zero-interest EMIs, or credit card points. It is highly important that you negotiate the price before paying.

8. Use Corporate Benefits – If you are working for a company, use all the benefits provided which are free of cost or offered at a discounted price. A discussion with like-minded colleagues may help you recognize benefits, such as economical medical insurance through EMIs and using office vehicles to commute instead of your own. Also, if you wish to save and grow money further you can opt for an employee share purchase program through EMIs and may get shares at discounted prices too.

Above were the 8 easy steps to start saving money and once you do that, you will start realizing the benefits.

1) Your savings lower your anxiety as you are prepared for any emergency.

2) Your savings may generate reasonable returns and add to your fund as an alternate source of income, it may give you a freehand to spend on your personal wellbeing also, for example, going on your dream vacation, buying a new home or a car, etc.

3) If you will invest in long-term saving schemes, these will help you repay your loans or assist you to have a comfortable life after retirement.

If you have your own money-saving strategy, then please share with us in the comments. If you have just started saving money, then share about your process.

Written by: C M Pavan, Digital Writopreneur

Edited by: Rajinder Soni, Writopreneurs Coach, Digital Writopreneurs Hub & Academy

Have you ever wondered how people used to trade goods in ancient times? What incidents led to the conceptualization of money? If you are looking for answers, then your search ends here. This article explains the evolution of money from its origin to this digital age.

Introduction

The basic needs of man can be fulfilled through the exchange of goods and services. This was the spark that led to the invention and evolution of money. Mankind’s most important invention is money. As and when mankind progressed, money started taking different forms.

Main Uses of Money

1) Facilitates the best pricing for goods and services traded.

2) It can be stored as a form of wealth.

3) It is valuable as everyone knows and will be accepted as a form of payment. 

Three Key Stages of Evolution 

Stages of Evolution – Commodity as Money

Barter, a simple exchange of goods and services. Probably, it was started to deal with a situation where a farmer may require wheat and hence need to exchange rice for wheat with another farmer. The main requirement for barter is that there should be two persons with similar needs, else both parties need to look for concerned parties to make the deal. This system could not meet the growing needs of a man in the long run due to the multiple wants of man. This might be the reason why commodity became a medium of exchange. To rise above this hindrance, man found the following sample list of commodities such as animal skin, salt, seashells, pearls, precious stones, tea, tobacco, cow, cloth, wine to aid business, and in this way, using the commodity as money became a practice.

Stages of Evolution – Metal and Paper as Money

Once commodity became money, the business became greater than ever and this led to the development of metal coins to meet the growth. This was another major milestone, merchant community and mankind crossed. Historically metals like gold, silver, copper were used for minting coins. There were uniformity issues in terms of value and hence government took the responsibility of minting coins as a solution. Currently, coins are made of metals like zinc, nickel, etc.

Paper currency invention is one more change that triggered the further growth and circulation of money itself. It increased the business of various goods and services from corner to corner of the planet. Paper currency has proved to be very useful for individuals, banks, depositors, and borrowers. Paper currency and coins are the foremost way the world of business deals till today. Banks introduced cheques, drafts, bills of exchange, cards, etc., to manage the enormous increase in the volume of transactions, counting, and space required for its safekeeping. 

A few decades ago a small number of countries had a gold standard for their currencies but the growth in business and services made gold reserves look too inadequate when compared with money in circulation in the economy. Hence, there was a policy change and currently, it would be backed by government securities, foreign currency assets, and a portion of gold as well in most of the countries.

Contemporary Money

Debit/credit cards were at the peak of their usage in the monetary life of almost every individual and organization for 20 to 30 years. With the dawn of money transfers, the use of money through debit/credit cards and even the use of ATMs has come down. Currently, the transfer of money thru bank transfers or payment services is increasing at a great speed. 

Mobile payments and virtual currency are two new shapes money has transformed into. Mobile payments are the way to pay money for a product or service through a portable electronic device, such as a mobile phone. Even the government has launched and has been using this method of payment for transferring gas subsidies, supporting farmers by paying them honorariums directly to their bank accounts. There are many payment service companies like Google Pay, Paytm which have made shopkeeper’s cashbox almost digital. Shop keepers and other business folks have accepted these platforms as point-of-sale payments which are helping them to get precise payments and tracking transactions automatically. Mobile payment technology can also be used to send money to friends or family members. The invention of this new form of money has increased business by multiple times across the world.

Virtual Currency – The emergence of cryptocurrency.Bitcoin is seen as the next stage in the process of the evolution of money. This was the first of its kind and has become a trendsetter. Virtual currencies have no physical coinage but it appeals due to its completely new way of finance and transparency. These types of currencies are operated within a smaller circle of people and on the other side, it is operated by a decentralized authority, unlike government-issued currencies.

 Conclusion

Money itself has no actual value; it was seashell, now a metal coin or piece of paper. It conveys the value that people place on it. Money derives its value by its functions: as a medium of exchange, a unit of measurement, and a storehouse for wealth.

Many people also love collecting coins, which is known as “numismatics”. If you are one of them, you must be pretty excited to learn the story behind them. I am sure the concept behind evolution was enlightening to you. How it started and how advance the system has become seems pretty interesting. Do share your thoughts and experiences through your in the comments.

Written by: Pavan Madahavamurthy, Digital Writopreneur

Edited by: Risha Khan, Editor, Digital Writopreneurs Hub & Academy

Valuable Personal Finance Advice For Freshers

Have you graduated from college and just landed your first job? Are you confused right now about how to manage your first earning? What follows are the three most valuable personal finance advice validated by financial experts.

Introduction:

                As young people start their work life, a critical phase of financial management starts. Till then, all their financial needs have been taken care of by their parents. But once they get their job and start earning, they get full control of their finances. At this stage, the steps they take regarding the money matters decide the making or breaking of their future. Let us see what are the most basic and valuable advices that can help them at this phase of life.

1. Budgeting

                 This activity is one of the most underrated ones in personal financial management. The common scenario we see in most of the new earners is not having a plan of money distribution. Spending money without any plan, and on unnecessary things will make you broke very quickly. The best way to achieve your financial goals is to allocate some portion of your earnings before you start spending. Create some long-and short- term financial goals. Then divide your earnings into the following five parts.

• Basic needs – necessities such as house rent, mortgages, clothing, and groceries are to be paid from this fund. It should be typically 40% of your earnings
• Savings and investments – support your long-term goals. You should plan at least 25% of your earnings for this.
• Self-development fund –should be invested in your learning to help you increase your earning. 10% of your paycheck should go into this.
• Emergency fund – helps you in unforeseen circumstances. This fund should get 10% of the earning
• Other expenses –satisfy your wants and desires. These should not cover more than 15% of your salary.
• Although not so significant in earlier stages of the career, you should consider tax planning while saving in later stages. You have so many options like public provident fund, national pension scheme, etc., for this purpose

2. Saving and Investing

                   Once you budgeted the earning, then the first step is to transfer 25% of that earning to savings. Below steps can help you save more money than you think is possible

• Don’t go for big-ticket expenses like a car or a house early in your career
• Share your accommodation with 2–3 persons to avoid more rent
• Analyze your expenses. Categorize them into different types such as food, entertainment, etc., This exercise helps you in finding out which expense needs to be cut next time
• Open a recurring deposit or monthly systematic investment plan in which money gets deducted automatically from your account. This leaves you no other choice than to save

                   But remember that savings alone cannot make a person grow financially. Only when this joins hands with ‘Investing’, growth happens. This is the stage where there is a danger of falling prey to the hands of fraudsters. Rule#1 is “Never expect easy money”. Instead, follow the below steps:

• Research extensively about the investment options available to you.
• Create and maintain a diversified portfolio. Diversify your investments among stocks, bonds, Gold, Venture capitalists, and many more.
• Use the money that is generated from these investments again to invest and use only their returns for your expenses

3. Resilient Strategy

                    Sometimes, in the hangover of the ‘earning-saving-investing-earning cycle’, the young earners often neglect the role of a resilient strategy of money management in their life. As you start your work life and start earning, everything seems perfect and smooth. But, life always waits to give you bumps. Any emergency can come at any time. If we have not already practiced the resilient strategy, it is sure that we will lose all our savings, investments, and go broke. The below advice help you to sail through those rough waters smoothly:

• Create an emergency fund. This fund should have at least 6 months of your basic expenses. This will come in handy in case you want to switch careers or to start a business
• Go for medical and life insurance policies early in your career. This way you can end up paying lesser premiums and get more benefits
• Don’t stop learning. Learning only can help you to increase your earnings thus making you strong enough to resist the high tides.
• Have at least 2 side streams of income other than your main job. They will support you in case there are up and downs in your main job.

Conclusion:

                   Financial education, although a very important skill in life, has been never taught in schools or colleges unless you chose MBA in your higher education. Lack of this knowledge can shatter lives to a great extent. Good financial management helps you in pursuing your dreams without any mental stress. Learning this skill at a young age will definitely help your dreams come true and there are some good sources of learning on this subject

                   “Financial education and knowledge of money management is the number one skill that experts recommend to have to lead a peaceful and satisfying life”

                    If you want to learn more about how personal financial management works practically, then please leave your comments down here. We will contact you immediately.

Written by: Mokkapati K S Sarath Chandra, Digital Writopreneur and Content Writer

Edited by: Rajinder Soni, Writopreneurs’ Coach and CEO

#digitalwritopreneurs #sarathchandra #personalfinance #rajindersoni

14-Step Strategy to Avail Housing Loan to Buy a flat, Reduce Interest Liability and Close Loan Account

Summary:
Do you want to buy a flat on a bank loan?  Do you want to know the exact procedure to avail bank loan, buy the flat and close it after completing the instalments? If yes, what follows is a 14-step strategy to achieve your desired goal.

The builders are increasing in numbers due to the higher percentage of profitability in the construction industry. They adopt intelligent methods to lure and tempt prospective buyers. They spend heavily on advertisements and broker commissions. They tie up with a number of banks for getting the buyers from customers of those banks. Banks have huge funds allocation under housing segment. Banks have workable recovery mechanisms.  Therefore, the banks entertain customers for granting the housing loan.  When builders and banks are keeping their doors open, the buyers should have the knowledge to deal with them since almost all the nationalised banks charge the same rate of interest, you can get the loan from your bank. Following is the 14-step strategy to achieve the ambition of owning a house:

1. Estimation of savings: Do the exercise of assessing present monthly income, expenditures and net savings with the spouse.

2. Eligibility of housing loan confirmation: Based on the salary slip, IT returns and employment status paper, your bank manager confirms your loan eligibility. He will indicate your eligibility for maximum loan and monthly instalment amount and duration of the loan.

3. Selection of flat:  You can select the location in the city itself and get the flat related details from the builder. Builder furnishes encumbrance certificate, construction document, price details and registration cost.

4. Applying for payment of housing loan: You can make the loan application to the bank along with flat documents and your personal documents. After scrutiny, the bank communicates a sanction of 85% flat cost inclusive of registration cost.  On your payment of balance 15% to the bank, the bank   disburses the total loan amount to the builder.

5. Registration of sales and mortgage deeds: On receipt of the payment from the bank, the builder arranges for registration of the sale deed in your favour. On getting the sale deed, you have to arrange for registering the mortgage deed for the loan amount in favour of the bank.  The bank takes possession of these registered deeds and other construction documents.

6. Taking possession of the flat: The builder hands over the flat to you after this registration process.  Then, you can occupy the flat and carry out the obligations relating to regular maintenance.

7. Repayment of loan: The bank recovers the loan by way of equated monthly instalments (EMI) during the fixed period. The EMI amount due on or before the last date of the month should be paid in time. Defaults will attract penal interest and banks will report your profile to CIBIL.

8. Revision of interest rate: Based on the directives of the Reserve bank of India, the interest rate undergoes revision.  Upward revision will increase the EMI amount or extend the loan period.  Downward revision needs your attention as the bank effects revision only on your request and payment of some charges.

9. Additional repayments: You can make additional payments whenever you have spare money.  These payments will not only reduce the principal loan amount, but also reduce the interest liability.  The bank accounts these payments and strikes the balance amount under the reducing balance method.

10. Checking monthly balance: The bank is mandated to furnish monthly statements of recoveries for your confirmation. You can verify the repayment and the closing balance shown. You should get discrepancies rectified by the bank then and there.

11. Insuring the flat and loanee: You are bound to insure the flat against fire, flood, other natural calamities and civil disturbances apart from insuring yourself for the loan amount, at your cost.  These are all to be renewed every year till closure of the loan.

12. Income tax benefits: The repayments details of the year will be segregated between principal and interest.  The principal part will be accounted for up to Rs. 1.5 lakh as rebate under 80-C and interest part will get adjusted against the income up to Rs2.5 lakhs.  This claim will be supported by bank certificate.

13. Closure of loan account: For closure of the loan account, the balance outstanding as of date can be ascertained from the bank and paid as one lump payment. After payment, the closure of account is done by the bank and closure certificate is issued by the bank.

14. Reconveyance of mortgage deed: Based on the closure certificate, the bank initiates for cancelling the mortgage deed by the registration authorities.  After cancellation, the bank delivers all the documents submitted by you at the time of loan sanction including the sale deed and agreement document.  The insurance documents should also be returned by the bank.

Conclusion:
The problem posed was to know the step-by-step strategies to buy a flat on housing loan from the bank and to close the loan account at the earliest convenience. You were explained for assessing your monthly savings, checking your eligibility for bank loan, selecting the flat, applying for the loan, registering sale deed and mortgage deed, taking possession of flat, repaying the loan and interest, checking the monthly balance, availing income tax benefits, insuring, closing the loan account, cancelling the mortgage and getting back the documents along with closure certificate issued by the bank.  These strategies, if followed, will make you a successful person.  Therefore, you follow these strategies and keep enjoying them.  This will lead you to save the rental money for other important purposes apart from owning a property of your own.  If you like this article, you can furnish your comments and forward to other social groups.

Written by:
Duraipandy Chelliah, Retired Deputy General Manager (Finance), Bharat Sanchar Nigam Limited and Senior Digital Writopreneur

Edited by: Rajinder Soni, Chief Executive Officer and Coach, Digital Writopreneurs Hub and Academy, New Delhi

#buyflat #housingloan #bank #loan #duraipandychelliah #digitalwritopreneurs #rajindersoni

12 Tips to do intraday trading of shares in the stock market and earn profits

Summary:
Do you want to earn money by intraday trading in the stock market? Do you not have the knowledge of it? If so, following are the ten tips to make money in the intraday trading.

Introduction:
You get to know that some people are making money by adopting right procedures and intelligent techniques in trading shares in the stock market. You also reliably understand that there is intraday trading(within the marketing hours between from 0930A.M and 0330P.M)to make money daily. There are two different stock markets in India recognised by the Securities and Exchange Board of India namely Bombay stock exchange(BSE) in Mumbai and National Stock exchange(NSE) in Newdelhi.

Knowledge of BSE and NSE stocks trading: The bse stocks are about 5000 and the nse stocks are about 1600. These stocks are classified as large-cap, mid-cap and small scape stocks, depending upon its value, as the name signifies. Based on the capital employable, you can decide the quantity of each stock tradeable.

1. Initial investment range:
Since, risk is a major demotivating factor, the initial amount to be ploughed in should be kept bearest minimum. Comparison of trading profit or loss with the standard returns of other investment options is needless as the trading in stock market is a speculative one and it will bring-in either windfall gains or profits.

2. Sensex and Nifty movement watch:
Sensex stands for ‘Stock Exchange Sensitive Index. Nifty stands for ‘National Stock Exchange 50’. Both are being calculated based on the upward or downward movement of 30 and 50 of the respective stocks .Watching these indexes every now and then will facilitate a rational decision either to buy or sell. For the purpose of intraday trading, you must be watching the stock market news, world trends, important events affecting the price movement in the stock market and governmental policy changes.

3. Opening of Dmat account : You can make trading only through authorised brokers of bse/nse. They will educate you to open a Dematerilised account either with NSDL or CDSL (governing bodies of dmat accounts). On depositing initial investment amount, the broker will allow intraday trading for higher amount than your deposit.

4. Intraday trading techniques to be adopted:
Sensex and nifty index of the previous day should be compared. You identify the stocks to buy and sell or sell and buy(which is also permitted trading method) You watch for the upward and downward movements and effect trading swiftly.

5. Trading timing:
You should fix the target as well as the stop-loss rates invariably. Instead of going in for high price stocks, low priced stocks may be picked at about 1100 hours when the volatility will get stabilised. Again, the stocks will be in momentum around 0130p.m. In between, your keen watch and swift act will bring in profit or keep the loss less.

6. Carry over trades to be avoided:
Sometimes, stocks which have been bought would not reach either the target nor go reach stoploss; similarly, the stocks which have been sold would not reach the target nor stop-loss.Such cases, will be covered by the broker at the stock market closing hours to avoid carry over of stocks.

7. Usefulness of stock advice:
You cannot buy or sell any stock haphazardly and callously. You should know the trends, volatility and movements of the stocks. The TV channels such as CNBC TV-18, Times news, CNN Business and NDTV profit are helpful. They serve the investors by showing the stocks-movements and live-interviews with stocks-analysts. Websites such as Moneycontrol.com, stock research, yahoo finance and google finance, can be consulted for the trading recommendations.

8. Warning of fake advice:
Very frequently, you will be getting calls/ messages recommending for certain stocks for buying, in your mobile. Because of their impactful influences, you will be enticed to incur losses heavily. Therefore, your own investigative analysis with reference to relevant factors is necessary. You may verify the stocks in its websites for its historical performance details and other financial parameters and decide.

9. Sudden happenings warning:
The shares values will suddenly take negative turn
due to the declaration of company results or major policy changes affecting
economic,political and social factors.Therefore, you should not be hesitant to take appropriate decisions during the trading period.

10. Personal qualities desirable:
Risk bearing and patience are essential qualities.Presence of mind and discipline to stick with your own trading plans will make your trade successful. Communication skills and interpersonal skills will make you self-assertive. Self confidence in you will avoid over- trading and make you not- getting unnerved by losses. Continuous learning and controlling personal emotions are all important qualities you should have, to continue with trading and earn money.

11. Financial management:
The government’s levies and rate of the broker commission for intraday-trading will be lesser. Therefore, prudent selection of tradeable stocks for the intraday trading will yield better returns. Keeping an eye on the daily net profit/ net loss after the government levies and broker commission may make you knowledgeable.

12. Income tax liability:
Stock trading is covered under Incometax rules. For the intraday trading net profits, short-term capital gains tax is levied. You should have to maintain the accounts and pay the Incometax due, on net profits. In case of loss, the same may be carried over to the next year for adjustments against the profits.

13. Watching of broker’s day-today reports :
You should review this report for its correctness to avoid manipulations and excess charging of levies and commission.

Conclusion: Y
our desire for doing intraday trading of stocks and earning money will be fulfilled if you follow the above 12tips diligently. Your consistent efforts to learn the techniques as a continuous process will yield desired results and you will attain a high earning potential. You should not make financial decisions that are inflicted by behavioural biases that cause you to act on emotions. You should always act as an ordinary man of prudence.

You should not become disappointing and discouraged when the stock moments change in opposite direction after your trading. The profits alone cannot be your expectation. Sometimes, certain stocks which are not in limelight may rise up to unexpected levels. You should not compare that price. You study the causes and use them for future action. If you like these tips, you can give your considered opinions and comments and also forward this article to your known circles/groups and social media.

You may also visit the website https:// duraicd @yahoo.com for further studies. My future writings on the subject may be awaited.

#writing# writer# Duraipandy chelliah#DWH&A#Rajindersoni

Article written by : Duraipandy chelliah, DWH&A, New Delhi.

11 ways to secure yourself and/or family to avoid financial difficulties

Summary:
Are you a regular salaried person and not having the knowledge as to how to secure your family? If yes, following are the various ways to ensure your family being financially secured.

Introduction:
Life is uncertain. The breadwinners of the family are having the primary responsibility to secure the family. But, many of the families suffer when the husband dies . Natural causes, accidents and suicide are the reasons for the death. If there is no savings, the family will have to face financial difficulties. Therefore, as a prudent person, you cannot brush aside your commitment to save your family. The government have implemented many social security measures. The present monthly income is not adequate even to provide three meals to the family. The school going and college going children do not get their minimum requirements.

Spending on Clothing, accommodation, medical expenses, mandatory expenses and food expenditures creates a situation of hand-to-mouth. On many occasions, money requirements necessitate pawning of jewels or sale of jewels and properties. Major medical expenses to parents push us in debts entailing high rate of interest. Repayment of such temporary loans becomes so difficult and replenishments are done.

Therefore, savings become remote possibility and securing the family in some other ways is the only remedy. By following the 6 ways explained here, you can definitely secure your family .

1. Insuring for the life and accidental injuries:

There is Term insurance option available to insure your life. This is being offered by Life insurance corporation of India( a public sector undertaking). ICICI prudential life insurance company ltd, Tata AIG life insurance company limited and few more companies are also offering this policy. Annual premium for death and accidental injuries

2. Eligibility for Term Insurance:

This is available for those who are aged between 21 years and 55 years. You must be a salaried person and an Income tax assesse . The annual premium ranges from Rs 4000onwards for an insurance amount of Rs 50lakhs and above for life. Accidental coverage is also available in addition for an additional small annual premium. The premium should always be uptodate. Payment of monthly prorate premium of Rs 350 should be met from the income.

3.Vehicle insurance:

For your four wheeler vehicle and/ or bike, comprehensive Insurance plan is available.The New India Assurance company limited, Royal Sundaram insurance company limited etc., offer this plan.
This is an yearly policy to compensate for accidental injuries/ death of the drivers of both the vehicles. The monthly prorate premium will be around Rs500 to be met from the income.

4. Accidental insurance for ATM usage:

Banks provide free insurance for accidental injuries and deaths, for the ATM card holders. Therefore, the ATM card and bank account passbook and nominee document copy should be kept in safe custody. The cap period of submitting the claim within 3months of the mishap should be known to you and your family.

5. Central Government social security scheme:

The Nationalised banks have Pradhan Mantri Jeevan Jyoti Bima Yojana(PMJJBY) insurance scheme. It is available for those aged between 18 to 50 at an annual premium of Rs330 only. The breadwinner can subscribe for this insurance in any one of the banks. The insurance amount will be Rs2lakhs on the demise of the insured, payable to the nominee. Monthly prorate premium of Rs27.50 can be met from the income.

6. LPG accident insurance:

Gas supply invoice covers life and injuries. It is mandatory for the Gas distributor to enrol every consumer who takes-up LPG cylinders in an insurance policy.It is named as free LPG insurance and the blast of cylinder will be treated as an accident. Death will be compensated for Rs6lakhs and injury for Rs2lakhs per person: Therefore, keeping the current gas invoice along with gas-registration documents in safe custody is necessary. Family should be educated.

7. Employees provident fund deposit linked insurance:

Your employer and yourself will be subscribing to your provident fund every month. Death of the employee is covered by free’Employee provident fund deposit linked insurance’ based on the lastly held balance in your EPF account. Therefore, keeping the annual balance sheets and other documents including nomination paper copy is necessary , with the knowledge of the spouse.

8. Insurance by factory or office establishment:

Compulsory insurance for the life of the employee and health insurance for the family made through the office will protect the spouse and family. Documents should be kept in safe custody with the knowledge of spouse.

9. Terminal benefits due on the death of employee:

Nomination needs to be filed with the company for the purpose of payment of gratuity, Employee provident fund accumulations, salary balance, arrears due to salary revision, pension and other payments due to the death of the employee. Those acknowledgements should be kept in safe custody with the knowledge of the spouse.

10. Housing loan documents preservation:

If housing loan is availed, loan records, repayment statements and other property related documents need to be kept safe, with the knowledge of the spouse.

11. Safety of property documents:

Bank locker key and other property documents should be kept safe, with the knowledge of the spouse.

12. Other records to be preserved:

Bank account records, shares records, and IT payments records should be preserved with the knowledge of the spouse.

Conclusion:

The family security measures are very clearly detailed in the above paras. These measures are very easy to implement . Only laziness will prevail upon your mind . But, if you attend to these requirements, your family will be fully secured to sustain any eventuality. There will be no financial difficulties to the family. Free insurances details should be told to the family members apart from keeping those documents in safe custody. In respect of all other policies, money should be allocated from the total income and arranged to be paid before the due date to avoid lapsing of policies. Therefore, you should immediately verify your status in respect of all these solutions and make things in order. If you like these important solutions, you can help me by forwarding to all your groups in social media etc., and furnish your comments below. I will be writing more such articles on social problems. For further studies, you may refer to the similar articles published in the website

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✓ Article written by Duraipandy chelliah, Trainee, DWH&A, Newdelhi.