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Well there are many trading strategies that professional traders use to trade the stock markets. However I have made my own trading system and it has benefited me for a while now. In this article I would like to tell beginner traders who just started trading about how I go about trading. Ok this is how I trade but please (keep in mind I have been trading for 5 years now):
1. Wake up at 8 am, take a 15 minute walk with a coffee… little meditation in the park.
2. 8:45 start my trading terminal and simultaneously listen to CNBC squawk box.
4. Am done with my news gathering till 9:15 (which includes putting news stocks in the watch-list).
5. I play ESCAPA till market open and keep my ears open to Bloomberg now:
Such a game is very important for an active trader who would want to rely on speed for instant executions. If you intend to become a professional day trader using a good direct-access trading software, then you must play this game regularly, as it strengthens your hand eye co-ordination. A beginner trader can also download a demo trading softwares that be downloaded for free and can practice paper trading with such speed. Playing such a game hones the art of speed and your reflexes go amazingly swift with time, thus you should get in and get out of a major position within split seconds that too with NO PANIC.. very important.!
6. Market opens – and I look for volatility and moves. Waiting for the moves was good when the market wasn’t hybrid, but these days first 1/2 n hours is very important because if you catch those major moves, then you are done for the day in the first 2-3 trades.
I try to be in stuff that is in news. I don’t like being in stocks that NO ONE IS WATCHING. I want to be in the action, because real money is there, where the stocks move, all you have to be is on the right side of the trade (for which I have my own strategies to decide how to trade a stock – how the 5 day chart looks, how the OPEN BOOK looks pre-market, how orders are coming into the OPEN book, try to read the OPEN BOOK, whether the BIG buyers getting hit and BIG offers getting lifted or NOT, how the specialist is treating the stock, whether there are programs/black boxes/automated programs trading in that stock, are there any brokers trading that stock, how we fellow traders treating that stock, block trades happening or not, volume is picking up or not, little trend analysis + a little of technical analysis like support or resistance.
7. That’s all am done by noon. I don’t put more than 5-6 trades in these 2-3 hours. And if the market really moves then I come back and trade again 2 hours before the market closes. I don’t unnecessarily churn my capital in commissions…!! (However you should trade whole day as you are still learning…. The more you are in front of the PC the more you will learn looking at stuff).
Try using a software to trade that is connected directly to ECNs and exchange (Direct Access Platform):
You must have these (I use all this):
2. Watch lists
3. NYSE Open Book – very important: I USE
4. Level 2 showing arca, brut and other ecns – very important: I USE
5. Scrolling Time & Sales (TAPE) – very important: I USE
6. Real Time Squawk box like: TheFlyOnTheWall.com
7. Stock Screener where you can add parameters: I use whisper, they make it as per my need (lot of hedge funds use it).
These days one should stay away from pre-market trades, as the markets have gone hybrid – so the volatility aspects make it hard to pick some real quality pre-market moves. Lastly a trader should believe in himself and must have the conviction to excel in every trade.
By: Karey Girish
If you live outside India for the purpose of employment, you are designated as a nonresident Indian or NRI. You may possess property in India or you may inherit it. In that case, it is possible for you to sell off your real estate property. There are a number of steps that you need to take to first transfer an inherited property in your name, sell it off and then repatriate the money.
What to do with inherited property before you can sell it
Many NRIs inherit ancestral property in India. If you want to sell it off to realize the money, there are a few steps that you must take before actually proceeding to sales. These are:
1. You will first need to establish ownership. For this, you need a transfer of title.
2. Procure a copy of the will.
3. If there is no will, appeal to the local court to issue a succession certificate.
4. Take this certificate and apply for a change of name in the office of mutation of revenue records. Be aware that it is a time taking process to get the property actually transferred in your name.
Once you have obtained the mutation certificate transferring the property to your name, you can now get your other documents ready in order to sell the property. These documents are as follows:
- Original purchase agreement or the title deed of the property.
- If the property in question is a flat in a cooperative society, you will need to share certificate of that cooperative. In case the certificate has been misplaced, you can apply for a duplicate from the society.
- You will also need a no objection certificate from the cooperative society. This certificate serves two purposes. It shows that your property has no outstanding debts and also that the society has no objection to your selling the property.
- Next, you will need a copy of occupation certificate. This is issued by the municipal corporation, the housing society or the developer.
- If any of the original title deeds have been misplaced, you can obtain a title certificate from a reputed law firm. This certificate recognizes you as the owner of the property.
- It is necessary for NRI to have PAN in order to sell property in India. PAN or permanent account number is a unique ten digit alphaneumeric code issued by the Income Tax department of India. It is necessary for taxation purposes. If you do not have PAN, you can apply online and can get the card within a month. You can get one at: http://www.pancardonline.com/.
The procedure for sale
Once you have prepared and collected all the documents, you can sell your property. In this case you may decide to take the help of a professional firm who will handle the sale for you in return for a commission. The advantages are:
- You avoid dealing with cumbersome property market.
- You do not fall prey to unregulated and unlicensed touts.
- You can give power of attorney to the firm. So, you will not have to visit India for registration.
- The firm also takes care of the taxation issue.
The firm actually does all the work on your behalf and the sale of your property is completed.
You can repatriate the money through official dealers, but the amount should not exceed US $1 million per year. You will need to produce a document of inheritance of the property and a certificate from a chartered accountant. But if the property is inherited from another NRI, you will need special permission from RBI.
Finally you should check the income tax provisions both in India and in the country of your residence when you repatriate the proceeds from the sale of your property.
PIO stands for Person of Indian Origin. If you are a person of Indian origin, you might want to look into obtaining a PIO card. A PIO card allows a person to have visa free entry into India for up to 15 years. It also allows a person to stay in India past 6 months with no problems. A common type that would want a PIO card would be a foreign spouse of an Indian National or a person who used to hold an Indian passport, but does not anymore.
What Documents do you need to apply for a PIO card?
-You will need to fill up the application completely.
-You will need to provide three passport size photos front facing with a white background.
-You will need copies of your passport or PAN card for Identity Proof (to obtain a PAN card, visit: http://www.pancardonline.com)
-If you are married, you will need a photocopy of your marriage certificate and your spouse’s passport.
-You will need a copy of your Naturalization Certificate and Renunciation form if you are a former Indian Citizen.
What are the Benefits of a PIO card holder?
A PIO card will stay valid once obtained for 15 years. A PIO is permitted to stay in India at long as he/she wishes during this period. There is a requirement to register with the FRRO office past a six month stay, but the process is much easier. A PIO card holder is eligible to invest in India and attend college in India.
What are the Cons of having a PIO card?
A PIO card holder is treated as an Indian citizen, but they are not allowed an inner line permit. A PIO card holder is not permitted to vote in India.
There are many offices in India that your PIO card filing can be done. The main offices are located in Delhi, Mumbai, Kolkata, Chennai, Amritsar, Bangalore, and Hyderabad. You can also visit any MHA office and learn more about it. A PIO card will not be given to anyone who is a citizen of the following countries: Afghanistan, Bangladesh, Bhutan, China, Nepal, Sri Lanka, and Pakistan.
DEMAT account is the short form of dematerialized account. It serves the same purpose as a bank account in the investing world. It is necessary for you to have one of these accounts if you are planning on buying or selling any shares in the Indian shock market. As you hold money in your regular bank account, you hold all of your shares in your DEMAT account. Every time you buy or sell a share using your DEMAT account, it is noted down as a transaction.
If you are looking to invest or trade in India, It is a requirement to open up a DEMAT account. Opening a DEMAT account is a process in itself. There are forms and documents that you need to provide. You will also need a PAN card number if you need to open an account. A PAN is a Permanent Account number allotted by the IT department of India. If you are an NRI, you can get one by going to: http://www.nripan.com/apply.html
The next step would be to find and download the necessary forms. If you do not have access to a printer, you can also find the forms at any bank or stock broker in which you would like to invest through. Most of the time, there are no charges to open up a DEMAT account with a bank. You will also need to provide a few documents supporting your ID proof and address proof. If you are from abroad, your passport copy will work best as a proof of Identity.
Now, you need to know the difference between a REPATRIABLE DEMAT account and a NON-REPATRIABLE DEMAT account. A Repatriable demat account is one in which you use funds brought from abroad or that you will use abroad. Any thing in a Non-repatriable demat account cannot be taken abroad.
There are a few fees involved with getting a DEMAT account opened. You will be charged transaction fees every time you buy or sell a share using the account. There is usually an annual fee involved with keeping your account open for a long period of time. There are also maintenance charges that you need to pay to the company that you go through for keeping up with your account and taking care of everything. Generally, the fees are not high and pretty reasonable.
When you are looking to start investing your money into the Indian stock markets, a DEMAT account will be one of the first things that you will need to set up before you begin.
Are you an Non-Indian citizen or non-resident looking to invest your money in India? It can be confusing if you have never done it before. It takes a lot of research to come up with the perfect approach to investing from abroad. To make it easier on you, we have done some of your research for you. Here we have the information you need to get started and the steps you need to take in order to invest in India while living abroad.
The first step that you need to take before you invest is to register for a PAN number. It is much easier to do this online because you are so far away, unless you plan to come to India for at least a month to get this done. You can do this online through the government website, but if you do not want to do as much work, you can always go through an online broker. They will always make it easier on you as you only need to provide them the documents and form and they will do everything else. There are many brokers out there now, however there is one agency that excels in such a service for the last 5 years: http://www.nriinvestindia.com/nri-apply-pan-card-online.html
It takes about 15-20 business days to receive your permanent account number. After you have your PANcard, you will need to open a bank account which could be a NRE or a NRO account. These could come with two options: repatriable or non-repatriable. You will need to decide which one suits your needs the most. An NRE account is repatriable and an NRO account is Non-Repatriable. After you have opened a bank account, the next step would be to open a Demat account.
You will need a Demat account in order to buy or sell shares when investing in the Indian stock market. To open a Demat account from abroad is a fairly easy process now. You can do the whole process from your country without having to come to India. There are many brokers now for this process as well. You will need to fill up the application and provide the necessary documents and send it via post to the brokers address in India. The broker that you open up a Demat account with, will usually be the one you are investing with as well. There is another option too. You can also use your bank account as a Demat account if you wish to. This might make it easier and the process faster.
After that, there is one more account that you need to open before you get started. It is called a brokerage account. You cannot invest any money unless you get a stock broker first. All of the brokers charge differently, so again, this is where you need to research. Find out which one gives you what you need and fits your budget. You can also choose a discount broker that allows you to make more of your own decisions. A broker like www.NRIinvestIndia.com can help you with all of these services in one. So there you have it, the sooner you finish all of this, the sooner you can start investing.
Happy investing in India!
Although, it is easy to download the forms you need from the internet, sometimes, it is not clear as to which ones are the correct forms. There are many changes in the forms as the years pass and making sure that you are downloading the updated version can become a task in itself. If you are having a problem with finding the right form for NRI, OCI, or PIO, then we have just the place for you to look and download your form. The updated forms now are 49A and 49aa. Form 49a is used for residents and form 49aa for non residents.
Once you download the correct form, then it is time to turn it in to the IT department or the PAN department. There are now PAN departments all across India in almost every city. Some cities have 2 or 3 offices. You can locate them by using google. Ex: “(your area) pan card department for NRI”. If you are not living in India, then it would be tough for you to give your application to the PAN department. They have online brokers working with NRIs to make things easier.
PAN card departments only serve one purpose. They are there only to accept and submit your PAN card applications and get you a PAN number allotted to you. Because they receive so many applications everyday, they are very strict while going over the applications and will not accept them if even the smallest mistake is made. So, make sure that your forms are filled completely and correctly. Also, make sure that you are aware that all of the information you provide in your application will be kept on record by the IT department. Also, It is not the PAN department that allots you a PAN number, it is the IT department that does that.
If you already have a PAN card, but the information mentioned on the card is incorrect, you will have to apply for a duplicate pan card and provide proof that the information is wrong. The PAN card department does not give refunds or discounts if any information is wrong. You must apply again and pay all of the fees again.
The New PAN Card
All new pan cards printed will have a colored photo in the corner. This means that you will need to provide two colored passport photos with your application. The new PAN card has a hologram along with other security and tamper-free features to help with identity theft.
The fees for PAN card are always changing, but currently if you are living in India, they are Rs.94. If you are not living in India and you are an NRI, the fees are Rs.944. When discussing PAN card, an NRI mean an Indian who is a resident in another country, an OCI, a PIO, or a foreign passport holder with no ties to India. If you are living in the US, UK, UAE, Malaysia, Japan, etc., you can simply apply for a PAN card through a broker to make your process easier. A good one would be:http://www.nriinvestindia.com/pancard.html
Once you have your PAN card, it will be valid forever and does not expire. The only reason that you would need to apply for a duplicate PAN is if you lost your PAN card, your PAN card was damaged, you had a change in your information, or you have a mistake in your PAN card. Other than that, the only reason would be so that you can update your card to the new design and have a new photo.
If you have applied for a PAN card, but never received it, this most likely means that it was lost in transit at some point. In that case, you will also need to apply for a duplicate PAN card in order to receive it. When you do this, your PAN number stays the same.
Tracking with the PAN department
Nowadays, you can find out your PAN number before you receive the PAN card. The UTIISL website now has a tracking system that you can use to find out the information before it is finished. You will be asked to enter a coupon number and then you can see your details. The coupon number will be on your receipt when you submit your application to the government. The details that you will access might also have courier tracking details.
Speed up your process using Tatkal service
It usually takes about 20-30 business days to go through the entire process. If you are looking to speed things up, we advise you to go through a broker so that you can make sure all of your forms and documents are correct the first time. They can give you step by step instructions so that no mistakes are made.
Before applying for a PAN
Be sure that you don’t already have a PAN card number. It is illegal to hold more than one PAN card number.
You will need an ID proof, and Address proof, and 2 photos.
The PAN card department will not start your process until they have received the payment in full.
If you are not ready to apply for a PAN card, but you have questions, email: firstname.lastname@example.org.
One of the segments where investors generally hesitate investing is infrastructure fund. This is because of less knowledge and sometimes wrong guidance.
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It is found, investors can easily get detailed information regarding various funds including large cap funds, mid cap funds, small cap funds and various sectoral funds, while it is quite difficult to collect requisite information regarding infrastructure funds. However, now the time has come to explore infrastructure fund, which is one of the significant segment of mutual funds.
Initially, infrastructure funds were only private placement funds owned by gigantic investors in the form of major pension plans. But, then the growth of different types of exchange-traded funds (ETFs) gave rise to some infrastructure-focused investments in the market for individual investors. In infrastructure funds, investments are basically made in the segments like construction of transportation, energy and communications projects.
It is believed that a infrastructure fund is a type of mutual fund known as thematic fund. Where sectoral funds facilitate investment in specific sectors including information technology, power, gas, oil and metals etc, the thematic funds helps investors to invest in some themes like infrastructure, retail industry and outsourcing firms.
The Great Indian Gold Rush has recently made noise regarding this relatively newer fund. It has introduced three kinds of schemes namely infrastructure, consumption and outsourcing.
Out of these three schemes, infrastructure fund was the one which grabbed more eyeballs.
Acknowledging this latest trend, numerous novel firms are now planning to launch new services in infrastructure funding in recent time. But there are only five which have sizeable money under management. They include:
1. Prudential ICICI Infrastructure Fund
2. DSP ML TIGER Fund
3. UTI Thematic Infrastructure Fund
4. Tata Infrastructure Fund
5. Sundaram BNP Paribas Capex Opportunities Fund
It is worth noticing, all the above listed funds have been launched before 2006.
An important factor that attracts more investors to infrastructure fund is that investors can invest in them whenever they like and wherever they like.
There are basically two types of infrastructure funds; one is open ended and the other one is closed ended. Open ended means, investors are free to choose time of investment, while in closed ended investors are bound to sell their units for a specific period of time. That minimum period is decided by the fund itself.
So, when are you planning to invest in infrastructure funds?