Stock Shastra

Imagine: You are on a Safari trip to Jim Corbett, high on spirits you get down to cherish the serene environment and you see a bear approaching what do you do? Tuck in your arms and play dead. Fighting back can be extremely dangerous. Similarly in a bear market it can be awfully risky because it is quite difficult for an investor to make stellar gains, Right isn’t it? Wait for a moment, this is not really the truth! This is the most common myth you’ll find all around you! Sounds strange and contrary to the common belief? Yes it does because this is how most of us feel during bearish times.
But what is a bear phase? Isn’t it just a downturn in the market or is it something else? Let me help you know it better. Think about this: you have been dreaming about that designer pair of jeans [...]

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It has been exactly one month since I started investing in the stock market. Before that I spent a month becoming aware of the various forces involved. What can I say the day I joined work is where it all began.
So much of information to process! So many companies to look at! The very idea of generating money so easily and quickly was enough to get me addicted.
Of course a month down the line the enthusiasm has substantially reduced L for obvious reasons. Anybody who has been a part of this market will agree with me on this. There is so much to study so much to explore a lifetime is not sufficient for this mammoth task. The fact that I have a job to do alongside definitely does not help matters.
I have outlined the mistakes I have made in the first month itself as a reference so [...]

Investors look at several parameters like EPS, earning growth rate, ROIC, Debt-to-profit, P-E ratios and many more of a company to find a good buy. These parameters are no doubt will get us to the best companies available at a point of time. But there are some other important parameters which can enhance our return when looked properly. Stock’s Beta is one such parameter, which is easy to calculate and easy to apply while selecting stocks.
Volatility and Risk:
When we analyse stock prices, we can notice two types of volatility. The first type can be attributed to the company-related factors such as delay in projects, concern about growth potential, competition from within and outside the country, Industry structure and changes in the management and financing patterns. Risks generated due to these factors are usually industry-specific and called ‘unsystematic risk’. According to Portfolio theory the overall unsystematic risk can be reduced by [...]