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  • Candlestick Patterns-What Do They Tell?

    NIWS 19 Nov 2022

    Candlestick Patterns-What Do They Tell?

     

    Candlestick patterns were explored in Japan over 100 years before the West bar and point and figure charts innovation. Although there was a relationship between rice price and supply and demand, a Japanese man named Homma noticed that the markets also reflected the emotions of the dealers. 

     

    Candlesticks graphically represent the magnitude of price changes using various colors to communicate emotions.

     

    Traders use candlesticks to make trading decisions based on recurring patterns that aid in forecasting the price's short-term trajectory. But, to understand the basics and depicted predictions from the chart, an investor, trader, or chart reader need to know the basic of the stock market. 

     

    NIWS- a renowned stock market institute in Jaipur  (Riddhi Siddhi, Gopalpura Bypass) and Delhi (near Kailash Colony Metro Station) offers you a list of the Stock Market Course in Jaipur In Jaipur. Our experts have more than 10-15 years of experience in the domestic and international money market, owning a wide array of experience under their belts. So, if you’re struggling with the chart patterns and events, book your free online demo with our experts to know the basic overview of the course benefits and the importance of stock market training benefits before investing. 

    Chart Pattern vs. Candlestick Pattern 

    A Candlestick pattern is a blend of one or more candlesticks. However, when the price modifies the effect of psychological and basic aspects over a long period, it influences the development of chart patterns. 

     

    • Candlestick patterns show over a little period. On the other hand, the trend movement is shown for a long period. 

    • The trend movement is reflected for a short period. On the other hand, the difference in trend movement can be reflected in the chart pattern. 

    • A chart pattern is modified for short-term entry and exit points, whereas a candlestick is modified for long-term buying and selling signals. 

     

    How Can A Beginner Read Candlestick Patterns For Trading?

    Each candlestick represents a certain time period and contains data on the price's open, high, low, and closing values for that time frame. Also given are the asset's entry, peak, trough, and closing prices for the period.

     

    These candlesticks consist of a candle body, an upper and lower wick, and a stem. The candle body broadens from the closing price to the opening price of an asset or a financial investment for a specific period.  The candle's upper wick tip shows the highest obtained during the period and increases to the candle's body.  

     

    Composition of a Candlestick Chart: 

    • Shadow and Tail

    This is a line in the part of a candlestick pattern's wick. The period's starting and closing prices influence the price movement outside the candlestick body.

     

    Every candlestick chart has an opening, closing, high, and low values. The prices develop into a candlestick after this is plotted. The lines in your charts above and below the body are called shadows. 

     

    Even though they can both be referred to as "wicks," most frequently, the line above the body is called the "wick," while the line under the body is called the "tail." Nevertheless, both are referred to as shadows.  

    • Candlestick Colours

    The value of the security's price movement for the day determines the color of each candle in a candlestick chart. When the security's initial price is lower than its closing price, an unfilled candle, often on the left, is produced. 

    A full bar is often red and appears when the security's closing price is lower than its opening price. As seen by this bar, the asset moved down over time, and the bears are currently in control. 

    Any color can be selected to generate any candlestick. However, the color used to define an unfilled bar is always used to illustrate a period when the price increased.  

    • The Body

    The body is the large part of a candle on the candlestick chart. The body encompasses the area between the opening and closing prices for some time. 

     

    The candle is usually colored green or white if the open is under the close. On the other hand, if the close is under the open, the candle is often colored red or black for that duration. 

    • Upper Shadow

    The upper shadow, also called the top of a candlestick, reveals the highest value of a data set for the period charted. 

    • Lower Shadow

     

    The lower shadow, also referred to as the bottom, shows the lowest value for the period charted. 

     

    Bullish Candlestick Patterns: 

    • Hammer Pattern

    One of the most well-liked patterns is the harmer pattern. It is additionally known as a bullish hammer. It is seen during a downturn or at the lowest point of a trend. When it reaches the top of its daily trading range or is very close to the top of its daily trading range, it forms a single candlestick pattern with a long lower shadow and a tiny body.   

    • Inverse Hammer Pattern

    This is also referred to as a Bullish inverted Hammer. It has a black body with an inverted hammer at the end. Its major characteristics are its long upper shadow and small body. This pattern has a shape related to the Bearish Shooting Star. However, the Inverted Hammer frequently appears during a slump and denotes a bullish turn. 

    • Bullish Engulfing Pattern

    There is a two-candle version of this motif. One of these candles is represented in a large white body that overshadows the smaller black body. This pattern appears during a downtrend. The white body doesn't have to overshadow the shadows of the black body, rather, it completely overshadows the body itself. It is an important downside reversal signal. 

    • Piercing Line Pattern

    This bullish setback pattern is usually found at the bottom of the downtrend. It is used as a pointer to enter a long position or leave the sell position. This pattern is usually formed when the bulls and bears fight to dominate the prices. 

    • Morning Star Pattern

    This pattern exists in a three-candle pattern. It represents a major downside reversal. In this pattern, a short candlestick that frequently gaps down to resemble a star comes before a black candlestick. The dark body of the first session fits the candlestick's third component well. It represents a crucial bottom pattern.

    • Three White Soldiers Pattern

    This is a pattern that signals a decisive setback in the market. Three long or regular candlesticks are rising. Each day's beginning is slightly lower than the previous close, with prices gradually approaching or ending at higher levels. It leads to an illustration that is structured like a staircase. It signals the downslope of the trend. Traders should be cautious when they see this pattern. Sometimes, lengthy wicks that draw short sellers cause the stock price to decline. Jaipur

     

    Candlestick Pattern Reliability

     

    Candlestick patterns that are strong are inclined to resolve in the pointed direction at least three times. Reliable patterns, on the other hand, are at least two times possible. Weak patterns are just 1.5 times more likely to resolve in the pointed direction. This implies that 2 out of 5 patterns are feasible to fail. 

     

    Which Candlestick Pattern Has The Best Accuracy?

     

    Candlestick patterns are not always trustworthy. But some have shown to be more trustworthy than others. Unfortunately, too, there are erroneous descriptions of the patterns all over the internet that could lead to complications. This article will highlight the three most reliable candlesticks patterns.

     

    • Three Black Crows 

    This pattern implies that the market has declined and most likely will continue to a downtrend with a 78% precision rate, according to Bulkowski's analysis. It occurs after a period of a merger or new highs. The three white soldiers are the antithesis of this pattern.

     

    • Two Black Gapping

    This pattern indicates a bearish continuation. Gapping indicates that the stock began at a price substantially different from the closing price on the prior day.

     

    • Three Line Strike

    This consists of 4 candlesticks as against its name. The first three are red candlesticks, followed by the last one, a green candlestick. The green candlestick overshadows the earlier 3. It is a rare pattern indicating higher prices with Bulkowski's analysis's preciseness. 

    Does Candlestick Pattern Work?

    Several traders use candlestick patterns effectively. However, electronic trading is causing harm and damage to manual traders' results. This is because computers do it quite fast and efficiently. It has been proven, however, that just a handful of specific patterns are often reliable.

    How Are Candlestick Patterns On Actual Charts Recognized?

    • Bearish Swing

    A bearish swing is divided into four parts, they are; 

    • RSI moves beyond 70

    • RSI falls back below 70

    • RSI rises and fails to surpass 70

    • RSI falls below the usual low

     

    The failure happens when RSI fails to surpass 70 on the bounce.  Signal confirmation happens when RSI breaks its previous low. The failure below 70 indicates a downturn in the momentum. 

    • Bullish Pin Bar

    The bullish pin bar indicates the refusal of lower prices. The pin bar candle's lower wick indicates that the bulls eventually took control after the bears had previously held the reins.

    • Bearish Pin Bar

    The bearish pin bar shows the refusal of higher prices. The upper wick of the pin bar candle reflects the bulls were previously in charge but were ultimately overthrown by the bears.  

    • Inside Bar

    The inside bar pattern is a two-bar in which the inside bar is smaller. 

     

    An “inside bar” sample is a two-bar rate movement trading approach wherein the internal bar is smaller. Inside the excessive to a low variety of the previous bar, i.e., the excessive is decreased than the preceding bar’s excessive. The low is better than the preceding bar’s low. Its relative role may be on the earlier bar's top, center, or lowest.

    • Outside Bar

    A price action indication is an outer bar candlestick pattern. It is used to foresee price movement in the forex market. Outside bar candlesticks are determined by the outside bar overshadowing the bar.  

     

    Benefits Of Reading Candlestick Patterns For Trading

    It helps to discern the recent situation of the marketplace at a peek.

    Just by searching on the color and period of a candlestick, investors can decide immediately if the marketplace is strengthening (turning into bullish) or weakening (turning into bearish).

     

    See The Course Of The Marketplace Extra Easily:

    On a candlestick chart, the color and form of the candlestick can assist buyers in deciding if an uptrend is a part of bullish momentum or a bearish spike.

     

    Identify Marketplace Styles Quickly:

    Candlestick charts show particular bullish and bearish reversal styles that can't be visible on different charts.

    Drawbacks Of Reading Candlestick Patterns For Trading

    Extensive Information - 

     

    Not all buying and selling techniques are the same. For a few techniques, the threshold can also lie in "Eliminating the noise" of buying and selling structures that specialize in simply one or matter on the chart. Candlesticks will consequently muddle the charts for such buying and selling structures.

    False Confidence - 

    Many are tricked into believing in a single dimensional "buying and selling structures" the use of charge information on my own because candlestick charting makes know-how fee statistics so easy. This may be visible withinside the upward thrust of retail investors, the use of quiet rate styles, and some signs all due to the accessibility of candlestick charts.

    Apophenia - 

    The tendency to notice styles in unrelated contexts is a cognitive bias. Our brains need to look at styles so that they do. Our brains additionally search for which means, and so we discover which means in meaningless matters. When combined, with technical analysis, we see styles in random facts and fasten that means in which there's none to stated information. 

     

    The best charts for this trap are candlestick charts. Falling in love - Charts may be artistically and almost entirely customized with different indicator combinations. It is straightforward to fall in love with the charts, gazing at them daily while questioning that this time is being spent productively while doing nothing useful. 

     

    It regrettably takes a long time for a retail dealer even to believe that that is happening.

    Unknown Movements - 

    Unless you're looking at a bar shape in actual time, retrospectively, a dealer has no concept of what got here first, the low, or the high. A dealer needs to decrease time frames to look at what came about inside that candlestick.

     

     One Bullish bar on a better time frame may also constitute a whole fashion on decreasing time frames, or it can constitute an unmarried parabolic move. We might not realize until we sit down lower back and watch the candlestick shape or zoom into the decreased timeframes.

     

    Conclusion

    Candlesticks patterns are efficient ways of discerning the situation of the market. However, they are not without their disadvantages. A right appropriation of the candlesticks patterns coupled with an understanding of its features will propel making the right decisions.  

     

    If not properly understood, it can even lead to blunders in the stock market.

     

    Thereby, it is advised to opt for stock market courses before planning to invest or trade. Various options for stock market courses available with NIWS are:

    Book your appointment at +91 9261623456 with our experts to get your seats before they are occupied. 

    Frequently Asked Questions: 

    1. What are different candlestick patterns?

    Three Line Strike, Two Black Gapping, Three Black Crows, Evening Star, and Abandoned Baby are the three highly opted and read candlestick patterns. 

    1. How many candlesticks patterns are there?

    We have varying candlestick patterns, and they are employed in varying ways. There are three basic forms of candlestick patterns. They are- Continuation patterns, Bullish reversal patterns & Bearish reversal patterns. 

    1. What is the total number of Candlestick Patterns?

    We have a total of 35 candlestick patterns in the stock market, and each of these patterns depicts a series of events. 



     

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  • Sankarsh Chanda, The 23 Year Old Stock Market Prodigy Has A Net Worth Of ₹100 Crore!

    NIWS 16 Nov 2022

    Sankarsh Chanda, The 23 Year Old Stock Market Prodigy Has A Net Worth Of ₹100 Crore!

     

    Sankarsh Chanda has had an astronomical rise to fortune after his investment of Rs 1.5 lakh. He invested Rs 8 lakh in a wealth generating company after ejecting from Bennett University.

    He currently has an intimidating net worth of Rs 100 crore a figure based off his investment portfolio and also his company's current valuation.

    The stock market has witnessed some of the most iconic investors and brokers ever seen. Names like Warren Buffett, Benjamin Graham, Radhakishan Damani and Rakesh Jhunjhunwala “The Big Bull “, are a few of the most prominent players considered to be the biggest stock market investors admired all over the world.

    All these experts have excelled at stock market strategies and driven the financial market with thier prediction strength. 

     

    Although very young, Sankarsh seems to be one of the newest names on the Stock trade "wall of fame" or at least on that trajectory, and in this article we'll be having a closer look at this inspiring prodigy. 

     

    Who Is Sankarsh Chanda?

    The Indian stock market prodigy Sankarsh Chanda, 23, is from Hyderabad, the city where mom lives. He started investing when he was 17 and now has a massive net worth of $100 crores!

    Savart, a fintech firm that allows users to put money into stocks, mutual funds, and bonds, was founded by Sankarsh. Svoboda Infinity Investment Advisors Private Limited is his company's legal name.

    In 2017, he started the company Savart with an investment of Rs 8 lakh after departing Bennett University (Greater Noida), where he was enrolled in the second year of the Btech Computer Science program.

    He made the decision to stop studying in order to devote himself fully to stock trading, and today, 35 people work with him in the fintech firm, according to TheWeekendLeader.

    Journey To High Investment Returns Of Sankarsh Chanda

    After graduating from Slate - The School in Hyderabad in 2016 with a Class 12 diploma, he began making stock market investments. He invested additional money over the following two years after beginning with Rs 2,000.

    He allegedly replied, "I invested around Rs 1.5 lakh across a period of two years. My shares' market value increased by over Rs. 13 lakh in only two years.

    In order to launch his business in 2017, he first sold shares for Rs 8 lakh. He then maintained the remaining funds in the market and continued to invest from his startup's profits, according to TheWeekendLeader.

    "Currently, I am worth Rs 100 crore. Sankarsh, 23, argues that it is dependent not just on his stock market investments but also on the worth of his firm. He began investing in the stock market at the age of 14 after reading a study by American economist Benjamin Graham, regarded as the "father of value investing."

     

    How Savart Brings In Money?

    You must download the company's app and set up an account before you may invest through it. Without taxes, the membership costs Rs 4999.

    For different budgets, the app offers several investing alternatives. Sankarsh claims that investing is so straightforward that even beginners may start with tiny sums.

    "When we first started, the yearly subscription plan cost just Rs 99/-. After that, it was 299/-, and in January it was Rs 4999/-.

    The business makes money via subscriptions and between 1% and 2.5% of the returns that clients make on their investments. Through Savart, clients have invested close to Rs 9 crore thus far.

    The business turned over Rs 12 lakh in its first year, Rs 14 lakh in its second, Rs 32 lakh in its third, and Rs 40 lakh in its fiscal year (FY) 2020–21.

    In his book Financial Nirvana, published in 2016, Sankarsh discusses the distinction between trading and investing and provides advice on diversifying one's portfolio and grasping the market.

    The Intelligent Investor, Security Analysis, and The First Three Minutes of the Universe are the three books he suggests to anyone who wish to learn more about money and investing.

    A Peek Into Sankarsh Chanda’s Lifestyle

    Sankarsh, who has founded Stardour, an aerospace technology company that will work on space navigation technologies , deep outer space, and space research.

    Sankarsh prefers to live a humble life in gratitude for the fortune he has acquired in his youth.

     

    Sankarsh, who prefers a modest outlook in a t-shirt and shorts, says he doesn't often  cash in on his stocks since he doesn't have a strong attraction to luxurious living.  According to him, he only dresses formally when he has to go to a performance or deliver a speech. However, To learn more about the finance you need to have the Stock Market Institute In Jaipur so that you can have the mentorship to get all the knowledge about the trading , the mentorship will get you the rich skills to manage the risk and you will able to book more profits.

    Conclusion

    With his huge net worth of 100 crore, Sankarsh Chanda’s story and lifestyle is the ideal picture of a startup founder going places. You can also earn like Sankarsh Chanda if you are ready to learn all the basics of forex trading.

    Learning forex is simple if you enrol for the best course as soon as you can. NIWS is committed to helping you achieve a high level of proficiency in forex trading. Their team of experts have up to 10-15 years of experience. The range of Stock Market course In Jaipur offered by NIWS spans the needs of investors, traders and career oriented persons. 

    Book your Free Demo Session to get started on your journey to successful financial trading.

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  • Why Should You Enroll in a Stock Market Course in Jaipur?

    NIWS 14 Nov 2022

    Why Should You Enroll in a Stock Market Course in Jaipur?

    Do you want to know insights into the stock market and secure your profits from trades? Is it necessary to enroll in stock market courses before trading or investing in stocks and commodities?

    Well, there might be diversified answers to the questions, but according to an expert, learning the basics before entering the stock market will help you with long-term benefits.

     

    According to the latest 2022 Moneylife report, around six crore traders are registered in the Indian stock market. Legends from the stock market allure many fresh graduates and experience holders to try their hands on stocks. But, except for a few, 80% of people book losses in their stock market trades. Out of this 80%, some retire immediately, and the rest don’t give up enrolling in the stock market courses.

    Stock Market Courses in Jaipur enable traders and investors to dig into the stock market without any risks and allow them to explore new profitable investment opportunities in the financial market.

    NIWS (National Institute of Wall Street) is one of the renowned stock market institutes that offers the best Stock Market Courses In Jaipur, covering fundamental analysis and financial modeling that deal with the valuation of companies, financial analysis, and industry analysis and helping you prepare your spreadsheet for the company’s financials.

    Connect with the experts now to learn more.

    Why Stock Market Trading?

    •  The risks in stock market trading are well known if done with proper strategies and knowledge. Therefore, you can trade up your intellect.

    • Stock market trading can easily be done from anywhere worldwide.

    • There are no limitations within any specific investments.

    •  Trading is never limited to any fixed amount of profit.

    • A great option for earning side or passive income without disturbing the parent source.

    How will Stock Market Courses help you Learn and Grow?

    Stock trading may prove difficult or loss-bearing for beginners as they are not well-versed with the market's basic terminologies, steps, and insights. The stock market may look simple or profitable, but this financial stream has multiple dimensions that need to be explored and understood before investing any amount.

    Helping ease the complex financial market structure, stock market courses in Jaipur enable new investors or traders to learn fundamentals and explore new or available investment opportunities, which directs them towards high yields.

    Financial market learning through stock market courses in simple steps makes it easy for investors and traders to understand real-time market scenarios, apply strategies to drive profit, and proceed with an informed decision. These programs also reveal the pros and cons of the market, busting all the myths associated with the trades.

    What are the Profits of Enrolling in Stock Market Courses in Jaipur?

    • Delivers a thorough understanding of the stock market that helps earn increased, stable and safe profits.

    •  In-depth technical and fundamental analysis details with a better understanding of patterns and trends and help identify stock price movements.

    • Trading tactics that reduce the risks and help gain more profit in equities.

    •  It helps beginners gain detailed knowledge of short-term, long-term, and mid-term investments.

    • Teaches how to gear up in a bearish market without booking any losses.

    • Allows students to explore all the sectors of investment.

    • Teaches about Risk Management and Money Management techniques.

    How to find the best Stock Market Institutes in Jaipur?

    Do not get into the trap of false claims lodged by experts to market their courses. Typically, every average investor wants to learn the easy money-making trick and often ends up landing in a short-term course trap that claims to elevate your financial skills in just a week or two. The Stock Market is a huge platform with multiple sideways, and you cannot excel in the money market without hitting and trying out options and strategies.

    •  Identify Your Requirements First Before Enrolling in Any Stock Market Courses:

    You must opt for a course that justifies your objectives and requirements with its features. Go for the option that identifies the course outlines, including regulatory issues and learning tools and techniques.

    • Check for the Used Teaching Approach:

    Check whether the institute only offers downloads or helps with current case studies and hands-on exercises. Opt for the one that helps with real-time case studies and analysis.

    • Credentials for the Stock Training Institute:

    Renowned professional bodies like NIWS often have long-standing track records and are well-equipped with professionals who hold rich market experience in the financial domain.

    Bottom Line:

    If you’re planning to excel in the stock market and become an expert overnight, you must clarify the basics before enrolling in the courses. Like any other stream, the financial market also involves a deep understanding of terms and technologies, and a good stock market course can only help you in your favor.

    NIWS offers the Best Stock Market Institute In Jaipur. Their faculties own the experience of more than ten years in the respective domains, helping you make better decisions that prove to be the stepping stones for future growth. Highlights of NIWS include:

    • Expert techniques to derive results from strategies in the stock market.

    •  Detailed knowledge of various stock market terminologies,

    • Tricks to predict risk factors in long- and short-term investments,

    • Hacks to learn intraday training in a short period.

    Book your free demo session with the stock market experts to know more. 

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  • Dark Side of Social Media and Stock Market

    NIWS 8 Nov 2022

    Dark Side of Social Media and Stock Market

    When Ronaldo was getting ready to start a press conference, he lifted a water bottle, took two Coke bottles off the table, and spoke "agua" in his native Portuguese. That was sufficient to cause Coca-worth Cola's to decrease from $242 billion to $238 billion. Another instance is when Snap shares fell after Kylie Jenner announced she stopped using the service.

     


     

    We now can handle and analyse enormous amounts of internet data thanks to the development of data intelligence technologies, which allows us to verify Kostolany's hypothesis that emotions greatly influence market behaviour. It is increasingly possible to link sentiment and market movements by tracking and examining data from social media sources, particularly about stock-related conversations.

    The financial sector communicates by exchanging information and data over the Internet and, eventually, through social media, like most other industries. Through blogs, forum postings, and tweets, users who communicate on social media produce emotional data. 

    The attitudes, feelings, and opinions others express impact them since they also ingest the same. Scientific research demonstrates that people frequently consider these online facts they consume while making decisions or taking action- leading to false depictions through stock market bubble. 

     

    What Is A Stock Market Bubble?

    A significant increase in stock prices that do not correspond to an increase in the value of the companies whose stocks represent is known as a stock market bubble. A company's business fundamentals, including its earnings, growth rate, and similar criteria, should be used to calculate its valuation. A bubble is characterised by speculation and exhilaration. The most recent well-known illustration of a stock market bubble may be the dot-com bubble of the late 1990s

    High hopes for a new digital economy drove a boom in tech equities. Nearly all of the technology stocks that had progressed in value during the years fell when those expectations were not met, or the underlying businesses went bankrupt. It may be argued that the 2021–2022 decline in high-growth tech stock prices was proof of a bubble.

    All stock market bubbles eventually deflate, resulting in an abrupt and significant drop in stock values. While a bubble can burst for several reasons, stock market crashes frequently happen after a substantial credit source closes. The primary cause of the housing bubble burst in 2008, which started a worldwide financial crisis, was a reduction in credit.

     

    Five Stages of Financial Bubble: 

    Economic Analysts agree that there are five stages of a financial bubble:

    1. Displacement

    This incident shifts paradigms. This resulted in lower interest rates (due to the Federal Reserve Board's looser monetary policy) and the fact that U.S. real estate prices had not experienced a sustained, nationwide decline in generations in the case of the housing bubble.

    1. Boom

    At this point, asset prices start to rise quickly. New investors are drawn to rising prices (or homebuyers in the case of a housing bubble), but it is not yet certain whether the price increase is unjustified.

    1. Euphoria

    Investors behave irrationally during this stage because they believe the bubble will continue to expand. The more significant fool theory, which refers to anyone who will always be interested in paying more for a holding than you did, is what some people refer to as. In the housing market, unqualified homebuyers were purchasing to generate enormous profits.

    1. Peak

    When prices reach their peak, shrewd money starts to sell. The mood of the market begins to change. This stage of the housing bubble was more difficult to spot because housing prices aren't as easily listed as stock prices. However, there were indications that easy credit was disappearing and defaults were beginning to mount.

    1. Collapse

    Retail investors frequently lose all of their money during bubbles, and the housing bubble fall was no exception. Between 2006 and 2012, home prices nationwide dropped, leaving homeowners underwater, in debt, and with ruined credit. Prices tend to be discounted during a bust, just as they are at the pinnacle of a boom.

     

    Why Does It Seem Like A Bubble?

    Let us dive into what an actual bubble looks like a bit more.

    GDP to Market Cap Ratio

    As cited by Warren Buffet, the ratio of GDP to market capitalisation is the best indicator for identifying stock bubbles. This indicator currently has a value of 145%.  This is far over the 75% average. In actuality, it has never before reached a higher value. The scenario in stock markets around the world is the same. One of the enormous bubbles in human history may exist right now.

    Growth Rate Comparison

    More often than not, a strong connection has been observed between rising share prices and rising profits. This is not the situation right now. For the past two years, the earnings have been increasing at a relatively modest rate. The majority of businesses reported typical, unremarkable performance. However, it appears that prices are growing quite quickly. As a result, it sounds uncannily like the tech bubble of 2001, when valuations surged to record heights for no apparent reason.

    Low-Interest Rates

    The U.S. interest rate has been kept at historically lower rates by the Federal Reserve. This decision is influenced by an increase in growth and recovery from the market crash. 

    However, equities aren't being challenged because interest rates are so low. Nobody is investing in things like certificates of deposit or similar things. The stock market has received almost all of the money. Future developments are probably going to follow this trend.

    Tech Euphoria

    A small number of tech companies received a significant valuation during the 2001 crisis. Microsoft, Intel, Cisco, and Dell were the businesses driving the charge during the 2001 financial crisis. Tech businesses are now driving the market as well. 

    Think about how Jezz Bezos rose to become the world's richest man throughout this time. More wealthy than Bill Gates has ever been, he is! Also, take note of the 2500% increase in Netflix shares over the last five years. Even though Netflix and Amazon both have solid fundamentals, the current values appear a little high.

    However, If you need to get the knowledge of the Finanace market and the Whole domain of the Stock Makret then you need to grab the a fine Stock Market Institute In Jaipur , there you can grab the skills of trading and you can devlope the pycology of the Indian and the global Stock Market.

    What Is A Network Effect?

    The phenomenon known as the "network effect" describes how more people or participants raise the value of an item or service. The network effect is demonstrated via the Internet. Since the military and a few research scientists were the only people who used the Internet at first, there weren't many users.

    Due to website development and enhancement, more people were drawn to connect and transact business with one another. A network effect resulted from the Internet offering more value as traffic increased.

    Network effects are prevalent in social media. For instance, Twitter becomes more beneficial to the general public when more people submit material on the site, such as links and media. The network effect has led to exponential growth rates for networking sites like Facebook, YouTube, and Instagram.

    The usage of social media platforms by users has had numerous network effects. Companies wishing to advertise their goods and services race to join these sites as more individuals sign up and engage to take advantage of the trend. The number of advertising grows, increasing the revenue for social media platforms. The websites develop as a result and can now provide users with new services.

     

    Role of Amateur Investors

    COVID Lockdowns due to pandemics, stimulus payments, increased personal savings, commission-free trades, and social media posts have contributed to a surge in retail trading activity on the financial markets. Meme investing, leveraged bets on stocks, options, and cryptocurrencies through social media, is disturbing the market and causing wild volatility. 

    Social media platforms have transformed into virtual trading clubs for gathering trade ideas, exchanging advice, and promoting stocks.

    The January 2021 spike in unpopular stocks such as GameStop, AMC, Blackberry, Bed Bath & Beyond, and others were brought about by a herd of retail traders inspired by several posts on the social media site Reddit's r/WallStreetBets subforum (WSB). However, $167 billion had been lost in a couple of days. It's unclear how the gain and loss consequences were distributed throughout the trading community once the panic subsided.

    Reddit retail traders herd together, target meme stocks, and migrate from sector to sector, sending prices soaring and causing waves of volatility. Surges are sparked by boastful posts on social media trading sites like WSB.

    A screenshot showing a 95% loss on the Chinese coffee company's stock was posted on Wednesday on Reddit by a person with a pretty nasty screen name. The user, a 28-year-old fitness instructor from Europe, expressed interest in Luckin's 300% growth between November and January. Disaster struck after they invested more than €235,000 ($264,000) in the company's shares.

    Not many high-profile stocks could have generated such tremendous losses and attention. After an internal inquiry revealed that Luckin's COO had falsified sales of 2.2 billion yuan ($310 million) throughout 2019, the company's shares dropped by 80% on April 2. The coffee chain informed investors that previous earnings reports and guidance were no longer valid.

    Conclusion

    Due to India's deficient levels of financial literacy, the regulator, stock exchanges, and institutions must do much more.

    GP Garg, executive director of SEBI, remarked at an NSE event to kick off World Investor Week, "In a country like India, we have close to 80% literacy, but when it comes to financial education, we are not that blessed. Because of this, it is incumbent upon all institutions, including exchanges and Sebi, to determine how best to spread the message of financial literacy throughout the nation.

    NIWS contributes its part in spreading quality financial education by providing a wide list of Stock Market Course In Jaipur. Whether you’re planning to invest, trade or begin your career, our experts have covered it all. We have 

    These wide range of options eliminate the elgbility criteria. Book your Free Online Demo with our stock market experts to get a clear view fo the lucrative options from financial market. 


     

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  • Stocks vs. Mutual Funds: Which One You Should Choose for Investment?

    NIWS 4 Nov 2022

    Stocks vs. Mutual Funds: Which One You Should Choose for Investment?

    Investing in stocks or mutual funds is a million-dollar dilemma that often runs in every investor's mind. Both mutual funds and stocks are popular investment types, allowing investors to increase their overall wealth on the principal amount. A mindful decision to invest in any of these options may help with inflation-beating returns if risks are calculated and the portfolio is revised consistently.

     

    But how to figure out which investment type is the best or how to diversify your portfolio? To start with, there's no right answer to the question. This is entirely subjective, and pitching answers for the same is like comparing oranges and apples. .

     

    Simply put, your fund manager is responsible for your investment in mutual funds, whereas in direct equity investing, you are responsible for your picks. 

     

    However, risk factors are active in both investments regardless of your diversion. And if you're a new market investor without prior knowledge, you'll always be at risk of heavy loss.

     

    So, if you're planning for a passive income from the stock market, you must enroll in stock market courses for investors from the Stock Market institute In Jaipur for basic knowledge. 

    Stocks Vs. Mutual Funds Difference:

    Parameters

    Mutual Funds

    Stocks

    Definition

    Mutual Funds are pooled investments that clubs the share of different companies.

    Stocks are the collection of shares owned by investors which indicate partial ownership of that corporation or company.  

    Denomination

    With no fixed value, a mutual fund is a sum of a small amount collected from different investors. 

    Different stocks can have equal or the same value.

    Original Issuance

    Original issuance of the shares with mutual funds is impossible.

    Original issuance of the share is always a possibility.

    Numeric Value

    Mutual fund represents the net asset value of different shares.

    Each stock has a definite value.

    Risk Level

    Risk factor with mutual fund investment is comparatively low.

    Risk Factor with stocks is higher.

    Diversification

    Amount in mutual funds is more diversified.

    Diversification with stocks is only possible if the authority allows it.

    Suitability

    Managed by fund managers, both experienced and new investors can benefit from it.

    Experienced investors with sound knowledge have higher chances of better performance and returns.

    Market Knowledge

    Basic market knowledge with the details of recent news and updates is also required in mutual funds.

    Investors must have recent updates on all the news and events of the market for effective results.

    Return Potential

    Moderate to higher returns can be expected from mutual funds if managed consistently.  

    Relatively offer higher returns to the investors.

    Trading Cost

    Expense is retrieved during the investment.

    Trading cost in stocks is usually high.

    Tax Benefits

    Several ELSS schemes offer tax-saving benefits.

    No tax-saving benefits can be redeemed from stocks.

    Convenience

    Mutual funds are usually convenient as they can be initiated within a few minutes and offer diversification.

    The investor needs to have an active Demat account to invest in stocks. The whole process is furthermore less convenient initially.

    Systematic Future Plan

    Mutual Funds offer a systematic investment plan from a future perspective.

    Stocks do not offer any systematic future plans.

    Investment Horizon

    Funds are invested with long-term perspectives.

    It can either be on a long-term or for a short-term basis. 

     

    Stocks Vs. Mutual Funds-Which Is Better?

     

    • Affordability of Stocks vs. Mutual Funds: 

    Mutual funds are more affordable than stocks.

     

    Most investors opt to diversify their investments in different companies to reduce risks from market volatility.

     

    For example- If you plan to buy one stock from the top 50 NIFTY companies to diversify your portfolio, you will need a total amount of Rs. 1,50,000 approximately. Moreover, you also need to know each company's basics for transparent investment decisions.

     

    Or else, an easier way is to opt for mutual fund schemes that invest in Nifty 50 and start with an initial amount of only Rs. 500/-. With these schemes, you will access all the more significant number of stocks from the market, fulfilling your need for fund diversification, lower risk factors, and more affordability.  

     

    • Stocks vs. Mutual Funds Timeline: 

    Mutual funds save investors' efforts and time.

    While investing in stocks, you need to know a company's financial reports, including the company's balance sheet and P&L statement, which is time-consuming and technical. At the same time, a fund manager is appointed for mutual fund investments. The team of research analysts perform all the technical analysis for the stocks and then take investment decisions on behalf of the investors, saving a lot of time and effort on your end.

     

    • Variety of Options in Stocks vs. Mutual Funds:

    Various options for stocks vs. mutual funds in India are available. Around 4500 stocks are listed on the stock exchange market, and shortlisting any best-performing two or three shares are quite tedious. Mutual funds are also categorized based on their returns and functionality. It includes- 

     

    • Equity Funds,

    • Gold Funds

    • Value Funds,

    • Debt funds, and more.

    But mutual fund options are easier to select as compared to stocks. You can quickly identify the best suitable scheme based on time horizon, investment objective, and risk appetite. If you are an aggressive investor, a small or mid-cap mutual fund will suit you, but debt funds will be your ideal choice if you are a conservative investor.


     

    Stocks Vs. Mutual Funds: Which Investment will yield Better Returns?

     

    Higher risk is associated with a greater possibility of higher returns, and stocks justify the statement. Investing in stocks is related to higher risks, as when the company fails, the investor's money at stake is also lost. Therefore, they must wait for the company's performance to improve to recover their principal amount.

     

    Whereas any such risk of market volatility is cushioned in mutual funds. Negative returns for a company are covered by stocks that are performing well. Thereby, mutual funds promise concentrated returns due to diversification factors.

     

    Final Verdict:

     

    If you are willing to invest in stocks, then you must be able to commit scheduled time and efforts to do the homework for better returns. Otherwise, mutual funds will be a better option for you. But, selecting an ideal mutual fund from more than 2500 schemes is also daunting.

     

    No matter which investment option you opt for, you need to have sound knowledge of the financial and technical analysis of the company to get safe returns. Moreover, investors or traders also need to be well-versed with market trends and the fundamentals of the stock market to know the working and functionality.

     

    If you plan to secure your passive income from the stock market, then the best Stock Market Course In Jaipur can help you with your desired profit-gaining strategies. NIWS (National Institue of Wall Street) offers a comprehensive list of stock market courses from-

     

    • the Bombay Stock Exchange (BSE), 

    • National Stock Exchange (NSE), 

    • SEBI (Securities and Exchange Board of India),

    • NCFM (NSE Academy Certification in Financial Markets),

    • NISM (National Institute of Securities Market) modules. 

     

    With 10-15 years of professional experience in international and domestic markets, experts assist students with the best financial courses like Stock Market, Wealth Management, Banking, Finance, Fundamental and Technical Analysis.

     

    Book your Free Demo to learn more about the best stock market course according to your preference to achieve your aspirations and lifelong career goals effortlessly.

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  • 5 Best Indian Stock Market Course for Beginners

    NIWS 28 Oct 2022

    5 Best Indian Stock Market Course for Beginners

     

    To keep up with today's fast-paced world, you must continue to learn. It is a fact that we become better when we learn more. And especially for a stock market enthusiast like you, learning becomes the sine qua non (essential). 


     

    The stock market is a network of stock exchanges where all the financial securities are bought and sold between investors and traders. Each security's price is determined by supply and demand, which determines how much investors and traders will pay.

     

    Elevating your learning process, NIWS experts will train you to be the next BigBull of the stock market. Considering the stock market's volatility, NIWS, the best Stock Market institute In Jaipur with over 10-15 years of experience, has come up with the top 5 stock trading courses for beginners.

     

    Our experts train newbies with all the tactics and technical analysis strategies that help them reduce the risks from market volatility and facilitate the right decisions. Check out the list of top stock market courses for beginners offered by NIWS to know how you can benefit from these online courses and classroom training.  


     

    5 Best Indian Stock Market Course for Beginners:

     

     

    1. Certified Fundamental Analysis Course: 

    Is the financial market something that interests you? Are you baffled by the way stock prices go up and down? Are you keen to know how so many billionaires & millionaires have made their lives from the stock market? 

     

    That's where fundamental analysis comes into the picture. Fundamental analysis is the backbone of investing—the analyst studies the company's balance sheet, earnings, cash flow statement & more.

     

    NIWS-certified fundamental analysis course is the best option that will help you to understand fundamental analysis as a subject & pave the way towards stock picking for a portfolio that will provide you with a much more lucrative future.

     

    Furthermore, the course also covers macroeconomics, sectoral analysis, industry analysis, and other financial aspects. 

    By the time the course is over, the investor will be able to use the language and concepts behind security analysis to analyze stocks, portfolio management, and many other things. To explore more about the analysis course, go through the program highlight

    1. Certified Technical Analyst Course

    Technical charts help investors or traders with technical analysis. They help you find the details of market fluctuations and demand and supply effects. To understand this, you first need to comprehend technical analysis. 

     

    Technical analysis helps an investor to know when entering & exit the market. This analysis is popular day by day. Investors believe that shares' historical performance is used as an indicator to determine their prices in the future. Technical analysis alerts you to the risk associated with the trade in addition to helping you identify profit targets. 

     

    Certified Technical Analysts Course by NIWS experts will help you with the best learning about technical charts and skills. USPs of our course include- 

     

    • Unique ideas and insights teach investors how to trade intraday, swing trade, short-term delivery, futures, and options. 

    • Renowned stock traders, fund managers, and brokers already practice analytical studies provided by our experts based on simple mathematical formulas. 

     

    Check out the program highlights to know more about the syllable to find out how this stock market courses for beginners can help you with better and increased profits. 

     

    1. NCFM Certification

    Are you interested in mastering the financial market but have no idea how to do it? If yes, then NIWS has the list of best stock market courses for beginners India. . We offer you the best coaching classes & preparatory classes for the NSE NCFM certification course that will shape your career for the better. 

     

    NCFM, known as NSE Certification in Financial Markets, is an online certificate program that tests your knowledge in various fields of finance & also conducts physical tests in its different centers across the country. Despite this, the test is designed to increase financial literacy, helping you make wise decisions for your investment portfolio. 

     

    Explore the program highlights to know how our NCFM Certification course will serve as a credible proof that you possess the knowledge you require in a specific field of finance. 

    1. Certificate In Stock & Financial Market

     

    This five-month curriculum for Certificate in Stock and Financial Market is uniquely curated for the novice & those who want to pursue their career in the stock market. This program will provide detailed understanding of:

     

    • NSE NCFM 

    • Equity Derivatives market

    • SEBI NISM certifications of capital market dealer’s module

    • Currency markets 

    • Mutual Funds

    • Commodities market

     

    Gain practical experience with active trading software and back-office operations of brokerages and funds from our trading experts for the best financial learning.  Scholars also receive NIWS certification upon completion of the program. Review the program highlights to fetch more clarity. 

    1. Smart Investment Trading Professional

    99% of investors or traders who had invested their hard-earned funds in stocks and commodity markets have dissipated their money. It is because people enter the stock market without prior experience & knowledge. It is essential to receive proper training & knowledge before trading or investing in stocks, futures, commodities, or currencies.

     

    To alleviate this problem, our trading experts have created a custom-designed program highlights for newcomers who wish to:

    • Learn and perceive what the share market is & how it works.

    • How to trade online?

    • An understanding of investing in the stock market, commodity market, currency/forex market, and other financial securities. 

    • What are the pitfalls for investors and traders in the stock market? 

    • How should a trader manage risk and comply with laws while trading?

    Conclusion:

     

    If you are a newbie looking to opt for stock market courses for beginners that will assist you in becoming a skilled stock marketer, there's nothing better option than the National Institute Of Wall Street

     

    NIWS is among the top institutes that offer the best Stock Market Course In Jaipur for all newbies & professionals who desire to learn more about the stock market. The veteran professionals of NIWS have extensive experience and a deep understanding of domestic and international market conditions. For your better future, enroll today and receive 100% assistance in building your career.

    Book your Free Demo Class now to know more.  

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