A Successful Trader Studies Human Nature and Does the Opposite of What the General Public Does” – William Delbert Gann
From the days of Jesse Livermore (an American legendary trader, 1877-1940), market participants have tried to confront the question, "How to be a successful stock trader”? Certainly, it is not just about stock tradintips and tricks, but something more, in fact, a lot of good old virtues like patience, discipline, persistence, etc.
What are the basic things that we need to enroot to be a good trader? These are Mind, Money, and Method, in sync if we want to succeed. If you have the best strategy but don’t have the mental discipline then, nothing will work out.
We first need to have MethodA method can be Technical analysis, fundamental analysis, or your gut feeling. The key is you must have a workable plan to attain success Your method should be measurable, objective, and easy to verify. It should be so simple that if you teach them to ten other people they can easily understand. Our Brain likes clarity, not confusion and chaos
Here are the 7 rules of highly successful traders:
Be optimistic and realistic
Persistence can be your friend
Target on how well you execute your trades
Costs matter a lot when you are a trader
Manage your risk every second of the day
Learn from the market rather than trying to outwit the market
Be an ardent reader, researcher, and a learner
Now, let's find the recipe for successful trading from some of the new generation millionaires.
Delhi based - Alok Jain, a multi-bagger, IIT graduate, who makes money from just 15 minutes of trade, has raked up to 86 percent return on his portfolio says his biggest learning is that exiting is the most difficult thing in the market for both, profit or loss. The strategy is only 20% of the game, 80% is staying the course. If you are confident of your strategy and are disciplined, then any day you can beat the market.
Ashu Sehrawat - one of the youngest millionaires of India, connected through chat room with traders like Derrick, Eric, and Phil. He got curious about their short selling and sent questions via private message from time to time. He concluded that these successful short sell traders were short-selling the stocks that had no business going up in price.
Suresh Gunda, a CA dropout to a successful trader in Hyderabad, says the amount of Patience, Risk & Stress management, years of effort, and hard work has made him a profitable Trader and established his Company. He says that Trading in the stock market, is a battle within you and success comes from love and passion for the market”
However, when asked to comment on why 90% of people lose in trading? He says, Don’t be greedy, and it is the technical knowledge that decides your profit or loss, and make sure you always have a stop loss in place and your emotional stop loss won’t work here.&rdquo
He started at the age of 19, and at the age of 25 years, emerged as the youngest CEO with dedication, knowledge & persistence.
India’s most successful investor Rakesh Jhunjhunwala says that one of his biggest successes was a pure luck investment. How can one think of a more reasonable rational style of investing?
One of the best ways to find out if an investor is just lucky or genuinely successful is how they have performed in different environments. If they can succeed not just during the big bull market but can do well during the bear market in the same way, then they can be considered good investors.
Most Successful Stock Traders in India
There are many big names like Rakesh Jhunjhunwala, Vijay Kedia, etc. who we misjudge as traders, but they are investors. Here are some of the most successful stock traders, their stories, strategies, and learning pieces of advice.
single mother, an Art student who doesn’t have any financial knowledge and financial background, started her trading journey with a capital of Rs. 5 lakh and by the end of 8 months, the capital came down to Rs. 1.75 lakh. At that time her cousin gave her leads and she placed orders as per his suggestions
Mental strength and strong discipline make her the most successful stock trader over strategy.
What we learn from her story is that we should never depend blindly on someone else. Secondly, gain some financial and trading knowledge before you start trading in the stock market.
Chennai based-Kirubakaran Rajendran, a Trading Bot developer (automated trading system based on a set of instructions) has achieved success after years of hard work and learning from every possible mistake one can do and probably more.
He started his career in Infosys with a monthly salary of Rs 1500. He had built a position of Rs. 1.5 lakh, a day before Infosys' results. The next day, results were announced and the value of his strangles had come down to Rs 20,000
This is the turning point of his life when he decided to move from news-based trade to rule-based trade. The other mistake he made in trading was, he borrowed money for trading. A changing shift came to his career when he started reading about the stock market.
His advice for an aspiring trader is to have a clear set of simple rules, and do not trade if you cannot explain your rules or strategy in two lines. You should not go for strategies that give higher returns without looking at the drawdowns. Choose the ones where risk is lower.
For example, if a strategy gives a return of 40 % annually with a drawdown of 15 %, it is certainly better than a strategy giving 90 % returns annually and having drawdowns of 40-45 %
Abhinand, 29, hails from Mysore and is a hermit in the trading worldHe suffered huge losses in the Satyam scam. After this, he turned stock to options for trading and later started about technical analysis and understand how trading works and financial knowledge. Presently, he trades in the Nifty options especially on the bull side, and uses many technical strategies like trend line oMACD, etc.
Self-confidence, persistence, and family support all played an important part in his success
First, learn at least the fundamentals of the stock market then create your strategy. Secondly, never take any loan for trading plus always share your techniques with someone who knows you better.
Obsessed with charts, Naresh believes in the old school of trading where he prefers putting in manual efforts. During 2008, he also lost Rs.40000 like others and after failing once he didn't stop, rather initiated gathering more information about technical analysis from Google and YouTube. Later, he gained good knowledge in price chart strategy, and to date he uses the same strategy for trading
Never depends on others and create your strategy. Keep your trading as simple as possible. Do not complicate the charts with too many indicators. Test the indicators yourself
A Full-time trader, Madan Kumar has rags to riches tale to tell. He credits all his success to his mother and wife for their support to make him what he is today. He gives credit to his mother, for motivating him to complete his education despite being very poor. And to his wife, for her financial support, after he returned to India from the US.
To have reading habits, as it is better to be prepared before you start your luck in trading.
You believe it or not, trading is a game not just on the stock market but within individuals’ mind. You win or lose with the way your mind reacts to the price movement. So if you want to turn trends in your favors, you must affirm your brain the right way with the right hymns. And also if you want earn higher returns from stock market then you must have to enroll yourself in the share market classes in Indore
Individuals with very limited knowledge and experience in trading are either afraid of losing a large amount of their portfolio value or are beguiled by hot tips that promise large rewards but seldom pay off. The pendulum of investment sentiment is said to swing between fear and greed.
Professional traders normally prefer to ride the momentum in the market and don’t bother about valuationsThey focus working on which way the market wind is blowing, which is what drives them. A bit of key learning advice here is to have discipline and knowledge before trying your hands on stock trading and investment.
Algorithmic trading is a method that uses computer codes to develop a program that follows a defined set of instructions to place a trade. These sets of instructions are called algorithms which are based on timing, price, quantity, or any mathematical model. Algorithm trading is also known by other names like automated trading, black-box trading, or algo-trading.
Apart from more profit opportunities for the trader, algo-trading also renders markets more liquid and makes trading more systematized by eliminating the impact of human emotions on trading activities. This can save you valuable time and you can execute the trade instantly instead of scanning the markets all time.
A study in 2019 revealed that trading algorithms were involved in around 92% of trading in the Forex market.
It is widely used by investment banks, mutual funds, hedge funds, and pension funds that may need to circulate the execution of a larger order or perform trades too quickly for human traders to react to.
Note: To become a successful Algo trader, one should have a proper understanding of three domains, namely –
Though algo trading and automated trading systems are often used synonymously, there is a small difference between the two.
Automated trading usually refers to the automation of manual trading through stops and limits, which will automatically close out your positions when they reach a certain level, regardless of whether you are at your trading platform.
Algorithmic trading refers to how a trader develops and refine their codes to scan the markets and enter/exit trades based on ongoing market conditions.
Algo-trading provides the following benefits:
A massive trade can shift the market price, also known as a distortionary trade, as it distorts the usual market price. To avoid such a situation, traders generally open large positions that may move the market in steps.
For example, an investor wanting to buy one million shares in ‘ABC’ company might buy the shares in batches of 1,000 shares. The investor might buy 1,000 shares every ten minutes for an hour and then evaluate the trade's impact on the company stocks' market price. If the price remains constant, the investor will continue with his purchase. Such a strategy allows the investor to buy company shares without increasing the price.
However, the strategy comes with two main drawbacks:
Algorithm trading can solve the problem by buying shares and instantly verifying if the purchase has impacted the market price. It can significantly reduce the number of transactions and the time to complete the trade.
Different types of investors use algo-trading for many forms of trading and investment activities, including:
Short-term traders and sell-side participants, including market makers, arbitrageurs, and speculators, benefit from fast and automated trade execution. Algo-trading also helps create sufficient liquidity for sellers in the market.
Mid- to long-term investors or buy-side firms—including mutual funds, pension funds, and insurance companies—use algo-trading to purchase stocks in large quantities when they do not want to influence stock prices with discrete, large-volume investments.
Systematic traders, including trend followers, hedge funds, or pairs traders, find it much more efficient to program their trading rules and let the program trade automatically.
Trades are executed based on desirable trends, which are easy to implement through algorithms without touching predictive analysis. Using 50-day and 200-day moving averages are common trend-following strategies.
Buying a dual-listed stock at a lower price in one market and selling it at a higher price in another market bids the price differential as risk-free profit or arbitrage. Implementing an algorithm to identify such price differentials efficiently allows profitable opportunities.
As price differentials often exist, the same arbitrage opportunity can be replicated for stocks versus futures instruments.
Valid mathematical models, such as the delta-neutral trading strategy, allow trading on a combination of options and the underlying security.
Index funds have defined rebalancing intervals to bring their holdings equivalent to their respective benchmark indices. This creates profitable opportunities for algo traders, who make capital on expected trades that offer 20 to 80 basis points profits, depending on the number of stocks in the index fund, before rebalancing.
The target executes the order close to the volume-weighted average price (VWAP). This strategy breaks up a large order and releases dynamically identified smaller chunks of the order to the market using stock-specific historical volume profiles.
The trading range or mean reversion strategy is based on the concept that the high and low prices of assets are temporary events that periodically revert to their mean value/average value. Identifying and defining a price range and implementing an algorithm based on it allows trades to be placed automatically when the price of an asset breaks in and out of its defined range.
Time Weighted Average Price (TWAP) Strategy
Here, the purpose is to execute the order close to the average price between the start and end times, thereby minimizing market impact. This strategy breaks up a large order and releases dynamically identified smaller chunks of the order to the market using evenly divided time slots between a start and end time.
This strategy targets minimizing the execution cost of an order by trading off the real-time market, thereby saving on the cost of the order and benefiting from the opportunity cost of delayed execution.
Percentage of Volume (POV) Strategy
Until the trade order is filled, this algorithm sends partial orders according to the defined participation ratio and the volume traded in the markets.
There are some more algorithmic trading strategies, broadly divided into Price Action Strategy, Technical Analysis Strategy, and a combination of both. However, most traders choose the price action strategy or the technical analysis strategy, and only a few use a combination of them.
For example, you can create an algorithm to enter buy or sell orders if the price rises above point A or falls below point B. Scalpers who want to make a series of small and instant profits throughout the day on highly volatile markets commonly use this algorithm, a process known as high-frequency trading (HFT).
A Technical Analysis Algo Trading Strategy concerns technical indicators such as Bollinger bands, stochastic oscillators, MACD, the relative strength index, and many more.
For example, You can create algorithms based on Bollinger bands to open or close trades in highly volatile markets. With this strategy, you can create an algorithm to act on the parameters of these indicators, such as closing a position when the market is spiking high fluctuation.
Technical Requirements for Algorithmic Trading
The following are the technical requirements required for trading an algorithm:
Now that you have gained a basic understanding of algorithm trading, its strategies, and how algo traders use it, you can start investing wisely.
Learn in detail about Algorithm Trading in our Artificial Intelligence Automated Algorithm Trading Course provided by NIWS, the best all-in-one training platform in the Stock Market. At NIWS, we have our expert faculty from mathematics and computer science backgrounds who share their experiences and strategy ideas/tactics with you during the course. So don't wait to join the share market training in Indore, NIWS and fruitful complete knowledge of the stock market.
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Learning in the algorithmic world never stops!!
Banned from trading for 15 years till 2017, Ketan Parekh continued working from the shadows. Let’s know the man who's heard more than he's seen.
On one hand, we have big names of successful traders in the stock market like Warren Buffet, Carl Icahn, George Soros, etc. who became millionaires by investing in the stock markets. And on the other hand, we have scamsters like Harshad Mehta and Ketan Parekh, who not only ruled the stock market but also were found guilty of economic crimes.
The gigantic Ketan Parekh scam, unearthed in March 2001, swallowed the top institutions including the Unit Trust of India (UTI), the Bank of India (BoI), the Madhavpura Mercantile Cooperative Bank (MMCB). This was the second most important scam after the Harshad Mehta scam, which shocked the Bombay Stock Exchange.
The SFIO (Serious Fraud Investigation Office) has estimated that the extent of the fraud could touch Rs. 30,000-40,000 crores. The investigations indicate that he managed the scam by synchronized trading & circular trading, effecting cross deals, generating high volumes and prices by acting in concert with other brokerage firms across the stock exchanges.
Charges against Parekh to be framed include manipulation of shares with the intent of benefiting himself and others, falsifying accounts, cheating banks, giving loans without following norms, paying huge commissions to some company directors, and mishandling public money.
Ketan Parekh, a former stockbroker from Mumbai, acknowledged as 'Bombay Bull’ and the ‘Pied Piper of Dalal Street’.
Ketan Parekh was a CA (chartered accountant) by profession. For him, the stock market was a family business, which was passed to him by his father. All this conditioned him to get familiarized with a trade circle of his own and this way gradually, he became the big bull of the stock market. Harshad Mehta himself mentored him and walked him through the nooks and corners of the stock exchange.
He was a soft-spoken, unpretentious guy that you would mistake for being an ordinary person on the street. However, in reality, his associates describe him as being shrewd and ruthless.
Ketan Parekh was like the God for many investors as he created a deception that whatever he wished the market seemed to grant him and whatever he touched turned into Gold. His portfolio comprised of 10 preferred stocks, which can be best described as the K-10 stocks and the market always forecasted these stocks as bullish.
On top of all this, he also had good connections with international celebrities like Kerry Packer and others. They together started a venture capital firm, KPV venture with $250 million and funded some more start-ups in India.
Ketan Parekh always believed and invested in the ICE sector Information, Communication, and Entertainment and that was the time during 1999 and 2000 when the dotcom boom had just started. During this time, he ruled the stock market.
He traded in the Kolkata stock exchange which proved to be beneficial for him due to the lack of regulations. Many investment firms, banks, overseas corporations, businessmen from listed companies invested their money to be managed by him.
The Ketan Parekh scam case mainly involved two key strategies, namely circular trading and pump and dump scheme.
Pump and dump Scheme
Here, he would purchase 20-30% of the share of a company to cause a price rise. The price increase will subsequently tempt other investors to invest. Once the prices shoot up, he would simply dump the shares and exit by liquidating his holdings.
In this strategy, KP made a few amateur traders buy and sell frequently certain shares throughout the day on his call. As a result, the "traded volumes" went up drastically. The investors who based their decisions on the volume traded, considered such stocks to be good for investment.
Once the price rises, KP made a profit out of it and also paid the traders a small remuneration amount. This type of trading is popularly known as the Badla system.
However, trading at such magnitude, demands a huge amount of money.
Playing with a pack of 10 stocks
A small Ahmedabad-based bank, Madhavapura Mercantile Cooperative Bank (MMCB) was Ketan’s main partner in the scam. KP and his associate started knocking the MMCB for funds in early 2000.
In December 2000, when KP faced liquidity problem in the settlement he used MMCB in two different ways-
First was the pay order route, where KP issued cheques drawn on BoI to MMCB, again which MMCB issued pay orders, the pay order discounted at BoI.
The second route was borrowing from the MMCB branch at Mandvi (Mumbai) where several companies owned by Ketan and his associates had accounts. Ketan used 16 accounts, either directly or through other broker firms, to collect funds.
Funding Mechanism
Simple borrowing mechanism
Badla System-Primitive carry forward system fabricated on the Bombay Stock Exchange
Badla trading involved buying stocks with borrowed money. The stock exchange acts as a mediator, and the interest rate is determined on the demand for the underlying stock maturity (less than 70 days).
The ICE sector was booming and KP invested largely in these sectors which backed him to gain the trust of the investors. The funding method of buying shares and getting pay orders and later getting them guaranteed when the prices rise, also helped him create a Bull Run in the stock market.
Many investors believed that the negligent reactions and regulations of SEBI who could have noticed the abnormal price movements in the market helped the scam to accumulate more losses to them. His connections with big celebrities, political and religious leaders also aided him to get the majority of the fund from large corporate and businessmen.
Sucheta Dalal played a crucial role in exposing the Ketan Parekh scam as well, just like the Harshad Mehta scam.
Due to MMCB’s actions, their depositors underwent huge losses. After being declared defaulter, they had not refunded the money of a majority of depositors. Ketan Parekh made a network of 20-25 companies for this manipulation of stocks.
When Dot-com-Bubble started bursting, that time the entire world was noticing a slowdown in Technology stocks. In March 2001, some brokers and traders started selling K-10 stocks that were overvalued because of the shooting prices.
Parekh failed to challenge the market for long. When the prices of the stocks started coming down, he faced difficulties in raising funds from the banks. Then Parekh's Pay order matter came to light, and the scam was exposed.
Highlights:
The Stock market crash of 2000
KP started borrowing heavily
Attempted to set up the price rise and later sell
But failed to do so
IT department detected errors in sources of funds of KP
Routine market surveillance of 5 stocks
RBI and SEBI were quick in detecting that there was something abnormal about the profits KP made and the loan he had received. Soon, he was arrested in March 2000 and was held in custody for more than 53 days.
He was prohibited from trading in the stock market till 2017 and was also sentenced to 1 year in jail. It became one of the biggest stock market fraud in stock market history.
SEBI banned the Badla system and circular trading. SEBI also started inspecting all the accounts related to the stock exchange annually. They permitted collateralized loans only via BSE and NSE.
Though he was banned by SEBI, it was rumored that Ketan Parekh operated through puppets who executed his orders in the stock exchange. In 2008 many companies were questioned by SEBI and were barred from helping him.
Do you know, Ketan Parekh’s name was also involved in the 1992 Cantina Mutual Fund, and was sentenced to a year of jail. During this scam, Parekh had sent around 2000-3000 crore rupees overseas with the help of the Overseas Corporate body.
Not only in Swiss Banks, but he also used to send money to different banks all around the world. CBI had seized his Swiss Banks accounts also. He still has got a lot of cases against him in court.
This is how the Biggest Stock Market frauds in India came to light and rocked the entire nation. People choose short-cuts in life to gain fame and money easily. If you dream to become a successful Investor or Stock Market broker then we suggest you pick the right path. Remember, there is no ladder to success; you'll have to follow each step with Hard-work and dedication.
To learn and about the stock market you need to have to proper knowledge about the share market course in Delhiso that you can avoide these kind of scams.
“An Educated Trader is Never Greedy or Fearful of the Market…
Rather, They Embrace the Opportunities When They Present Themselves.”
Just because you're starting in the game does not mean you' re compulsorily forced to settle for less return than the top market players. Learn professional trading secrets from our NIWS stock market experts and make profits investing today!
No matter how much experience you have with the financial markets, you can trust us to teach you the fundamentals of technical analysis and get you started on the right track!
Whether you are a beginner, a regular investor or an experienced market player, I know many people who, even after working in the Industry for their whole life, could not determine the correct ways to invest. We provide a varied range of courses so that you can become a better trader every single day! Learn how to trade like a professional investor from a former stockbroker!
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NIWS is one of the leading institutions in financial markets that provides a very polished e-learning platform that enables the student to complete the course on the go and provides classroom-based practice with specifically crafted test platforms.
Our mission is to help create a financial fraternity by providing world-class education and guidance in finance. We aim to heighten the flow of knowledge through carefully designed, quality educational memoranda by taking it to another level and making it convenient for all.
Our faculty consists of brilliant minds with a wide array of experience under their belts. From Financial Market Management to Crash analysis, Strategies to Certifications, and topics be it Blue Chip Stocks to IPOs, Margins to Market Crashes, Rallies to a variety of sectors, domains such as IT, Gas and Oil, telecommunications, Micro and Macro Economics, etc., we have a nucleus of experienced mentors and tutors.
Our recipe for Success:
Experienced Veteran Teachers + Exceptional learning setting + Categorized variety of courses = Extraordinary Results
Get your answers from our Certified & experienced Market experts to every question related to the learning you do in these courses!
Mr.Umesh Sharma
Head of business development, marketing operations and wealth management
MBA with 15 years of experience in Banking and Financial markets with expertise in marketing, administration, sales and training. He always innovates new ideas with a positive attitude and long-term vision, which makes him a key asset to the NIWS team. He firmly believes that one can achieve goals through ethics, integrity and passion.
Mr.Deepak Sharma
Head Faculty/Consultant
I have a master's in Economics and a Certificate in Performance Measurement and Risk Analytics and Structured Derivatives products. I have more than 15 years of experience in the International and Domestic BFSI segment, with experience in Dealing, Investment, Training, Wealth Management, and Performance Measurement and Risk Analytics of Sovereign and Pension funds.
Mr.Rajan Tiwari
Faculty/Trainer NISM/NCFM - Certification and Investment Advisory
LLB Graduate with a Certificate in Algorithm Trading, Import Export Management and a Diploma in Financial Market Management having more than 5 years of experience in Algorithm Dealing/Investment Advisory, Wealth Management and Training.
Mr.Ajay Gaur
Consultant and a key faculty member for Fundamental Valuations and Financial Modelling
Chartered Accountant with over 9 years of experience in Tax, Audit, Consulting to Corporates, Investment and Tax planning to corporates and Individuals. His experience and expertise at NIWS make him a valuable asset for the organisation's growth.
Abhay Mehrotra
Entrepreneurial Trader & Technical Analyst with 15 Years of experience trading within financial markets
Areas of Expertise Include Neo wave /Elliot Wave Analysis, Wolfe Wave, Harmonic Patterns, Classical Chart Patterns, Gann Time & and Price Analysis, Time Triangulation analysis, Andrew Pitch Fork, Swing Trading, Positional Trading, Risk Management, Forecasting /Market Trend Analysis. Technically savvy and proficient in real-time charting software and various trading platforms.
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Financial services strengthen the country's economy and encourage the development of all sectors. In the present scenario, the best financial franchise businesses in India offer customized investment solutions to investors, secure ways to transfer money, a full-service brokerage, cloud-based business solutions, and many more benefits.
Choosing the best franchise business in the stock market, one gets a robust business model, a product in demand, and the assistance of a franchisor, which makes the process of making profit way easier.
Stock Market Franchise business can help you earn a lot of money but at the same time it is very important to understand the market and the company from where you are going to take the franchise. But like any other business it is not easy to earn money without putting much effort.
Once you have taken the stock market franchise, it would be your duty to help your customers up to their expectations in order to maintain your client base. This is very important to retain your customers for the long term in order to get the business throughout the year consistently.
Franchising is a term that defines the business relationship between two organizations where a franchisor, who is the owner of a brand name, product, or system of a business, permits a franchisee to use its brand, product, or business process for a fee.
At a conceptual level franchising is a method of marketing and distribution, and organizations use franchising as a method of growth and development.
Franchising is a low-capital rapid growth market share gaining option. The goal of a franchisor is to provide a consistent product and consumer experience 'indirectly' through a franchisee.
The risk of business failure is reduced by franchising, as your business is based on a proven idea. Hence, you have an advantage to check how successful other franchises are before committing yourself.
You are using a recognised and established brand name and trade mark. You have less trouble in comparison to your own business, as you can now enjoy additional benefits of marketing like advertising and promotions, which is done by franchisor.
Products and services will have already established a market share. Hence, there will be no need for market testing.
All kinds of support are provided by franchisor - usually as a complete package including training, help setting up the business, a manual telling you how to run the business and so on.
No prior experience is that much required, as the training received from the franchisor ensures the franchisee establishes the skills required to operate the franchise.
You usually have exclusive rights in your territory. The franchisor won't sell any other franchises in the same territory.
Financing the business may be easier. Banks are more likely to lend money to buy a franchise with a good reputation.
Established Relationships with suppliers.
You can benefit from communicating and sharing ideas with, and receiving support from, other franchisees in the network.
Banking and financial sector is a wide sector and we can see it growing rapidly and the financial market sector which includes the broking industry, stock market, research house and investment banking sector are on the tremendous growth. As per BFSI Sector Skill Council of India (BFSI-Banking, Financial Services and Insurance), this sector will provide more than 8 million jobs by 2025.
Stock market is nowadays becoming a trend that involves a lot of people in it whether they are interested or not but most of them are part because of seeing many other involvement of the individuals around them.
If you are sure to make money and have that spirit to be in the market, and to hold a significant position, then it will demand time and money at the start, but once you have cleared the examination and hold the certifications then you are capable of getting a quite great position in the market.
A franchisee must follow the below key points in order to become a successful franchisee. Let us discuss all the points in detail so that you don’t regret in future after buying a franchise.
Do a Good Research about the Company
It is utmost important to know about the company’s history in the current decade, about its performance, management, experience, stability and hot downfall during the recession.
Also, don’t forget to go through franchise disclosure documents, provided by the franchisor, so that you can have a better understanding about the company’s history and other details. You must check about the litigation and bankruptcy details as well.
Analyse the Current and Future Market
When you take a franchise in a particular segment of the stock market, be sure if there is an immense growth in that segment. This will help you grow faster and make more clients for franchise business growth.
Select Best Location Of Your Territory
You should select a prime location for your franchise office, so that there could be a huge possibility of clients visiting your office without any hassle. Also, it should be far from another competitor of the same segment, as that will hamper your business.
Sign the Franchise agreement when all the clauses are clear to you
The franchise agreement should be readable and understandable, without any kind of hidden clause. Every point disclosed between the two parties before opening the outlet should be mentioned on the agreement paper.
Business Development Support
As for any stock trading company, time is the most important factor and any kind of delay can make your customers go insane if they lose money, hence you should make sure that the company’s managers and the employees are dynamic in providing all kinds of necessary support and customer service without much delay.
Also, the managers must support their franchisees from time to time and give those proper tips and tricks for better marketing, promotion and lead generation.
Technical Support
Make sure that the company’s relationship manager is good enough to train your employees properly, provide back office support and technical support.
The broking house must be very much efficient in research and development.
They must train you well about the company’s software, trading platform, business ethics and tactics and all other related processes.
Achieve Target
Many Stock Broking houses will give you a big target to achieve during the first year of your business to check if you have potential or not. If you fail to achieve the same, they might ask you to exit from that franchise business.
Many beginners fail to fulfil such expectations and targets, so make sure that the broking firm that you are willing to join should not have such kind of target achieving system.
Revenue Sharing Model
First of all, make sure that the total investment for opening a franchise outlet is under your budget.
Secondly, the majority of the progress revenue should come in your pocket.
In general, stock market broking houses provide 70% of the generated revenue to the franchise. Lesser than this, may not be profitable.
Nowadays, people prefer to open a franchise outlet or office, only when they start generating good brokerage revenue.
Exit Strategy
You should always plan an exit strategy when you start running the business.
Such situations may occur, when you are not doing good in your business, or suddenly your employees fall sick or leave your business, or there is a huge turbulence in the stock market, or in case of any bankruptcy.
NIWS – A World Class Finance Education Provider
NIWS'' National Institute of Wall Street, is one of the top institutes in its domain with a wide list of courses ranging from Banking, Finance, Stock Market, Mutual Funds, Insurance, Portfolio and Wealth Management to Technical and Fundamental analysis. The NIWS team have over 15-20 years of experience professionals from BFSI segment in domestic and international markets
At NIWS we have always believed in the power of financial education to transform lives. Our courses include instruction from experienced professional traders, hands-on trading using state-of-the-art equipment and tools, and a framework for building a customized trading plan.
NIWS ensures that the students are equipped with both theoretical and practical knowledge that makes them self-motivated, dynamic, broad and with a positive mind-set so as to be job ready from the very first day.
NIWS assists all successful candidates in getting better placement opportunities. We provide you a short term job oriented course.
NIWS offers the students job guarantee and assistance after completion of the courses given the fact that we know the skills and competencies required in BFSI education with practical knowledge, professional qualification which is the key to survive in today’s world. Being a NIWS-IAN means going much beyond for a professional life.
Furthermore, we also offer certification courses for- Technical and fundamental analysis, NSE BSE NCFM SEBI certification modules and preparation.
NIWS is expanding its wings and has recently started appointing Business Partners in a Franchisee based model Pan-India. It is an ideal and unique opportunity for individuals/corporates to be a part of the BFSI education vertical by getting associated with NIWS.
The Individual/corporates can contact NIWS by filling the franchisee registration form and can have a discussion about the business model and opportunities by getting associated with us.
Investment to start a franchisee: RS 3 lakh (non-refundable)
Area required for the centre: 800 to 1500 square feet
We provide -
Support during initial phase before opening the Centre
Training, Content Development, Academic Research and Quality Control
Marketing Guidance and Support
NIWS Advantage:
Experienced Faculty
Practical Approach
Best Support
International Stock Market Trading
Infrastructure
NIWS core team would help the franchisee in recruitment and training to staff, counsellors and faculty (trained through our Faculty Development Program).
NIWS core team will conduct brand awareness, promotions and marketing campaigns through SMS/ emails/ social media to all BFSI related businesses/ educational Institute about the opening of new branches in your city and state. We will conduct Seminars on a regular basis about the courses we offer and growth opportunities for students, investors and traders in the BFSI segment.
Stockbroking business has witnessed lots of customers coming for the first time to the capital market this year. The highest numbers of Demat accounts were opened at the beginning of the year 2020. It was a huge growth in account opening from pre-lockdown levels (approximately 100%).
Hence it is the best time to invest in stock broking franchise business and financial market education business. You just need to follow all the above mentioned points before finalizing and buying the franchise, so that you make the best decision for your business and grow faster. All the Best!!
As you work hard to make the most of your franchise, you will find yourself growing and improving in more ways than one. Owning a franchise can be an extremely rewarding opportunity if you let it.
Nobody's perfect. We are all going to have our days of wins and losses.
Investing in the stock market can be a tricky game, and if you’re not careful, you might end up making some mistakes that could cost you a lot of money.
From outside, investing in the stock market may seem like a stress-free side hustle. First-time investors are too eager to jump right into the investment game, and often not commit to learning from the mistakes of others.
However, first-time investors often find that the truth is far from this myth and jump into the market without proper strategy. Investing takes time, effort and a lot of patience. In fact, in some cases, the investor may continue to make the exact same mistakes over a period of time, when they do not learn from their previous errors.
It pays to remember that the assets linked to the financial markets may shift in value. So, your best bet is to make the most of these investments is to perform careful research with fact and figures and make informed decisions based on facts as opposed to instinct or emotions.
To be a stock market investor, it is utmost important for a person to be level-headed and logical. They should know how to juggle between their rational thoughts as well as gut instincts. Only a level headed investor can think and make wise decisions on the go.
The good news is that most of these mistakes can be avoided by careful analysis and awareness. We will take a look at the ‘7 Biggest Blunders’ that investors make in the stock market.
An old Japanese proverb says that, "you will eventually lose every rupee with which you gamble."
You should never put yourself into the high-pressure situation where you are gambling money on the line whichyou need for other reasons. When you invest with money that you can afford to risk, you will make much more relaxed unbiased trading decisions.
Any sum left over after the discretionary expenses of the investor and savings is what is to be used in investment. Eventually, you will have much more success with your trades, which will neither be driven by negative emotions nor fear.
Planning and strategizing helps the investor to decide and select in what type of securities he must invest in, how long he should invest and how much he should invest in order to get the expected return that he desires.
The downside to not having a proper plan in place is that you have no end goal and you are aimless, as a result, your investment pattern can be quite arbitrary. This may result in greater losses if you’re not careful.
This is a very common mistake, and those who commit it do so by comparing the current share price with the 52 week high of the stock value.
Your lookout should be to invest in companies which will experience sustained growth in the future. Only considering the fact that a company's share price came about to 30% higher last year will not help it earn more money this year.
Avoid buying stocks that simply look like a bargain. It is important always to have a critical eye and be picky while choosing such stocks, since a low share price might be a false buy signal.
Do your homework and analyse a stock's viewpoint or direction before you invest in it.In many instances, there is a strong fundamental aspect for a price decline.
Investors who get greedy have a tendency to get “slaughtered.”
There’s an old saying on Wall Street that goes like this:
“Bulls make money, bears make money, and pigs/amateurs get slaughtered.”
It means that both bullish and bearish investors/traders will make money in markets over time, but greedy investors (“pigs”) will lose money.
In the name of diversification, once the shares starts performing well some investors put all their eggs in one single basket. They have very less amount invested in other securities. This may cause some serious problem if the investor is wrong. Therefore, it is not good to be greedy.
Every time you trade you should ask yourself,“Is this the best possible stock I can allocate my money to?”
The best possible decision from above fact should drive most of your buy/sell/hold decisions.
Some investors have a tendency to sell their winning stocks too quickly so they can confirm with profit and hold their losing stocks for too long so that they can avoid a loss.
One common example of this blunder, is an investor who would rather hold onto a losing stock until it gains +20% back to where he bought it than take the loss and allot the money to a stock that gains +30% over the same time period.
course, investors don’t analyse more on this situation, but clearly, we can see now that, the 30% gain is much better, if you visualize properly instead of avoiding the pain of “locking in a loss.”
For a long-term investor one of the most important - but often overlooked - things to do is qualitative analysis, or "to look at the big picture."An investor can earn more profit in the long term rather than a short timeframe.
Assessing a company from an approximate standpoint is as important as looking at the sales and earnings. Also, ensure that you have at least some investments in your portfolio that you plan to hold for 5 to 10 years, at the very least. This could maximize your returns greatly.
Write out your short-term goals and long-term goals, and design a perfect plan for your future. Pick an investment strategy that includes signals and guides for the long run.
It’s good to stay up-to-date on the markets, economy, and your investments. Just don’t pay too much attention to the daily excitement of the “talking heads” on TV.
Financial media is often designed to stir up the adrenaline and emotional parts of your brain to invest in impulse decisions rather than help you make better investing decisions.
Buying on tips from the media is a speculative gamble and makes an investor greedy. If one really catches your attention, the first thing to do is consider the source. Stick to your basics and do your own homework so that you know what you are buying and why you are taking positions.
Next time you're tempted to buy based ona hot news from media, wait/don't do so until you've got all the facts and figures and are comfortable with the company and risk. If possible, take unbiased opinion from informed investor
The Bottom Line
As a child, you didn’t learn to ride your bike without taking a few falls. You didn’t learn a bicycle without falling at least a few dozen times. One can become professional only by learning from his mistakes. Practice and take a next step with careful strategy and money management.Hence, you can't make things better for yourself without practice and knowledge. In the case of the stock market, one needs to join share market classes in Jaipur and acknowledge yourself with the different stock market strategies.
If you are looking to make a jumbo win by betting and risking your money on your gut feelings, try the casino.
Every investor makes mistakes. Everyone has to learn at some point. What matters most is that you must be ready and eager to learn new things and always improve how you invest. Most successful traders are constantly studying their techniques, looking for an additional edge that may help them make more-informed decisions.
Take pride in your investment decisions and in the long run, your portfolio will grow to reflect the integrity of your actions.
If you have the money to invest and you are able to avoid these blunders, you could make your investments pay off; and getting a handsomereturn on your investmentscould take you closer to your financial goals.
Please understand that mistakes are part of the process and learning to reduce them could help you develop a more disciplined consistent approach to trading.
Armed with all the above mentioned knowledge and guidelines, you’re now all set to begin investing. All the best !!
Start with a demonstration class.
