Investing Questions and Answers

List of best tacktics to form huge bucks contained by stock open market intra-day trading?

Like sometimes i buy shares n sell alike day for 1-2% profit, should i buy at once or waiting is better? what are the other things i can do in intra-day? to bring in money?


Answers: I dont know if you will make money or not. But the broker beside whom you trade will certainly manufacture more money by your intraday activity.

Till date here are not a single day trader who have consistently made money, without risking his sampatti.

My sincere guidance would be to find a few really good stock and invest for mid to long residence.

In case you are surrounded by a hurry. then I am afraid, near are no shortcuts.
I use this tactic...
buy 1000 stock at price $100
5000 x $100 = USD 500k
then i and my company(stock broker) move about down the floor,spread the rumor about the correct news give or take a few the company...
i using my networking contained by the brokerage manage to spread the FAKE communication to about adjectives the client...
phew.Not more than 2 hour...
the stock price soar to $125
what more?
i sell the stock bring in around USD 60k profit in 2 hour or equivalent to my partly month salary.
USD 60k = my hallf month gross
With intraday, you have an added control of Margin trading with frequent online traders. That is, the traders allow you to trade for 4-5 times of your actual money in the ridge account. This facility is mostly not available for cash base delivery trades.

For intraday trading, you should own live quotes available for the stocks.

What is bank rate, CRR, SLR, CAR, PLR, SDR ?




Answers: Indian banks are required to hold a certain proportion of their deposits as cash. In reality they don’t hold these as cash with themselves, but with Reserve Bank of India (RBI), which is as good as holding cash. This ratio (what part of the total deposits is to be held as cash) is stipulated by the RBI and is known as the CRR, the cash reserve ratio. When a bank’s deposits increase by Rs100, and if the cash reserve ratio is 10, banks will hold Rs10 with the RBI and lend Rs 90. The higher this ratio, the lower is the amount that banks can lend out. This makes the CRR an instrument in the hands of a central bank through which it can control the amount by which banks lend. The RBI’s medium term policy is to take the CRR rate down to 3 per cent

The hike in CRR from 4.5 to 5 per cent will increase the amount that banks have to hold with RBI. It will therefore reduce the amount that they can lend out. The move is expected to shift Rs 8,000 crore of lendable resources to RBI. In the past few months the money that banks have available for giving out as credit is greater than the amount they have been lending out. This has led to “an overhang of liquidity” in the system. The objective of the CRR hike is to “mop up” some of the “excess liquidity” in the system

The hike in CRR is not likely to lead to an immediate increase in interest rates. There is excess liquidity in the system even after a higher amount is deposited with RBI as reserves.

Unless the demand for credit picks up to the extent that the money is all lent out, banks will not have an incentive to raise interest rates.

The inflation rate may continue to be high, the economy may also continue to witness growth which will keep the demand for credit high, and international trends are for rates to move up. This means that sooner or later interest rates will go up. The first rates to get impacted are yields on government bonds. We have already seen this happening. If the inflation rate keeps rising, RBI may raise the ‘repo rate’, the short term rate at which banks park excess funds with the RBI. This makes it less attractive for banks to lend.

Further, RBI may raise the bank rate, the rate at which it lends to banks.

At this point you may expect interest rates on home loans and fixed deposits to go up as well. Over a year rates could go up by as much as 3 per cent

I dont know about the SLR CAR PLR AND SDR

But I expect SLR is for a liquid ratio.

Liquid ratio = Liquid Asset/Current Liablities
Liquid Asset = Current Asset-Stock

Current Asset Ratio(CAR)

Current asset/ Current Liablities
Current asset is the asset which is easily liquified with in a span of maximum 1 year.

Current liablities is the liablity which has to be payed in with in 1 year.
Rama sub is a gud answer for CRR...

SLR is statutory liquid ratio, this is the % of deposits that need to be maintained as liquid thru' investing in RBI bonds. SLR includes CRR, for example CRR is 7% and SLR is 10%, the 3% should be can non-cash investments.

SDR: The SDR is an international reserve asset, created by the IMF in 1969 to supplement the existing official reserves of member countries

PLR: Prime lending rate is the rate that the bank will lend to its best customers. Floating rate loans will be quoted as some thing like PLR+_ 1%, when RBI changes SLR, CRR etc banks will announce chnage in PLR and other loans interest will be changed accordingly

CAR: Capital Adequacy ratio is the amount of capital that shareholders should put in for each 100 deposits with bank. for ex if CAR is 12.5% and a bank has a deposit base of 100, then Bank's share capital+reserves and surplus should be atleats 12.5

What was the best investment that you've ever made?




Answers: I got a bunch of G00GLE stock a couple of years ago when it was at 186. It's now around 700.
I bought a Pontiac Fiero Indy 500 model, very nice, drove it around for a couple of years, then sold it for $2000 more than I paid for it. :)

Other than that...probably my second divorce. lol
RISK is the best investment that you can make.
Profits and Gains start from the first step called RISK.

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