How the War Affects the Stock Market in a Negative Way?

You might astonish how war can affect the stock market, but we can explain with recent events. Well, they both are entirely two different things, but war is one the crucial issue when it comes to making money in the economy. The stock market reacts differently to different variables, but war can entirely make it shut down. For instance, in the time of World War 1, the stock market closed for four months throughout the world after the war started.

Cyber War Monitoring

No matter which part of the world whether it is US-Korea, US-Iraq, India-Pakistan, or any other country have conflicts or have a war-like situation, it does affect the stock market negatively. In the time of the war, people start selling their bonds and shares and make fewer investments as there is a state of instability, and they start investing in companies like weapons and gun powder, etc.

To determine the influence of the war, let’s look into how the wars that have happened recently and have shaken up the stock market. Many people have the impression that the recession of the 2000s started with terror attacks on 11 September 2001, because after that incident the events have dropped down sharply.

North Korea Testing Missiles

Geopolitical tensions occur due to North Korea, which may trigger a war-like situation that eventually impacts other stock markets across the globe. According to the report, if North Korea tests its ballistic missile, then there will be a sharp decline in its stock market.

India-Pakistan Air Conflict

There is no doubt that the stock market has affected by war jitters. In the time of peace, we both neighbors have a strong rally, but the market immediately moves to worse because of Indo-Pak Air Strike, and there had been a decline of 200 points in Sensex and 10800 falls in Nifty. While on the other side, Karachi gets the shock of a 4% loss in its stock Exchange tank. Even after the Kargil war, there was a decline in the stock market of both countries.

Overall Trend

Well, wars are of different categories and make sure which one you want to highlight. A war in some cases can be beneficial for the economy take, for instance, the US markets, when the United States decided to go back to Iraq in 2003 we’d currently been in a 2-year bear market, and once the invasion of Iraq started, the markets began to bullish again. And we went on to have a 4-year bull market, the World War, which is a whole different ball game, and it was generally bad for economies particularly for those involved in the actual war. For instance, look at Germany, it was only between 1933 and mid-1939 that the country prospered, but once the war declared in early fall of 1939, their economic prosperity was no more. Now on the other hand, once a war is over this generally generates a new bull market as hope comes back to investors.

Technical Indicators of Retail Traders

A professional approach and rich quick mentality, the delicate blend of both is required to make the outstanding trading setup for retail traders. Every successful trader has a different style and mind setup. But in the end, the art is ultimately left up to you, and we can only help you with science.

Trading Indicators and Tools

The most successful trading setup includes price action & a mix of 5 different tools which are listed as follows:

  • Trend indicator

The best trading setup for retail traders is using trend indicator that means not going against the trend, and it makes the job more difficult. It’s preferable to pick moving average to get an overall idea of the Trend.

      1. Try to use multiple moving averages to get a good understanding of small, mid and long term trend.
      2. Using Gann recommended moving averages will help you further.
  • Momentum indicator

In retail setup, you might have heard that trend is your friend, but not all the time, because it’s only your pal till it lasts. Trend’s trading is quite easy, but knowing whether it would stay consistent or not is the essential aspect of the trading setup. We may have seen some beginners complaining about reversing back of trends after entering the business. Therefore, checking the trend’s strength is more crucial momentum indicator that works best for the job.

  • Multi-time frame charts

The use of multiple times frames makes your trading setup much more efficient.

  • Time cycle tool

While considering the price factor, most traders neglect the essential element, which is equally responsible for stock movement is a time cycle. Stock market charts consist of two axes: Price is plotted on the x-axis, while time plotted on the y-axis. Professional traders also take into account time axis which gets them more than 50% edge on retail traders. Time-action is as much crucial as price action.

  • Support/ Resistance levels

To plot this, one should use Fibonacci levels and look for its confluence with Gann levels or pivot points. Higher the confluence of multiple levels, support or resistance level will be stronger.

Moving Average Example

Please, practice these concepts by selecting only 3 to 5 stocks, and keep paper trading in them daily. You will feel amazed at how these tools work like wonder.

Keep Yourself Up To Date | Are You A Trader

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How to make Crores (Millions) using SIP Model

Systematic Investment Plan (SIP) allows investors to invest a fixed amount in a mutual fund scheme regularly. Many people didn’t know about it, but its popularity has increased in the past few years, and now, every wise person is ready to secure his/her future through SIPs. Let us tell you how you can make crores (millions) using SIP model.

SIP for Professionals

How SIPs got recognition among individuals?

SIPs are getting famous from the last few years because of demonetization, and individuals unveiled the benefits of SIP and mutual funds. Though many investors were already familiar with the Systematic Investment Plans, still individuals found out more about it from Amfi’s Mutual Fund Sahi Hai campaign.

SIP is a tool that encourages investors/traders to invest consistently in a mutual fund scheme, and it also makes it possible for you to decrease or increase the investments in those schemes over time. It also discourages lump sum investment so that salaried traders can invest, too.

Why should you invest through SIPs?

We can give you some reasons for investing in mutual funds through SIP.

Firstly, it will bring financial stability and discipline in your life. Secondly, you can invest regardless of market index level, etc. Moreover, by using the SIP model, your investments will automatically invest in a scheme without doing anything.

How to make Crores using SIP model?

Mostly the returns on SIP equity mutual fund are in between the range of 12 to 18%, but let’s assume the average SIP returns in 20 years will be about 12% annually. As per the assumption, you will get 1.9 crores in 20 years by investing 20,000 per month. Isn’t it great to know that you will get returns in millions after spending just twenty thousand monthly? We are sure it is, but let us tell you how can this happen. Well, your actual investment in twenty years would be 20 years = (20,000 Rs) x (12) (investment per annum) x (20) (investment over a period) = 48 Lacs. The returns on your actual investment will give you 1.9 crore with a fixed amount of 20,000 per month, but you can even increase your investment every six months or annually as per your suitability.

Moreover, you can also create a portfolio of mutual funds by investing 20,000 monthly through SIP, but make sure to not have lots of them (only 2 to 4).

You can invest by choosing any of Large Caps Fund, Balanced Fund, Mid & Small Caps Fund, Multi-Cap Fund, and more. There will be plenty of combinations for you to invest your 20,000 per month, so pick wisely.

Enquiry Form For SIP Investment with Zerodha or ICICI Securities or Kotak

Different Types of Mutual Funds in India

JAWA Advantageous and Disadvantageous in Indian Land

 Jawa Bikes are popular for their exquisite nature, their make, different models and also their efficiency. Well, it’s said everything has its bad and good side and Jawa Bikes are no exception. Here are the positives and negatives of Jawa Bikes.  Jawa and Jawa 42 are direct rivals to the Classic 350.

Positives

Jawa Motor Cycle Inda

 

  • Light Weight

 

         These bikes not only got the power, but they also are lighter hence making it easy for riders to enjoy.                These bikes are a preference of many people because of this feature.

 

  • Suitable Seat Height For most Indians

 

The height of the Bike matters in order to accommodate the height of the people likely to buy them. With a seat height of 765mm, Jawa Bikes are made to captivate an enormous number of buyers, even short people would find these bikes to be suitable for them.

 

  • Jawa Bikes have more power

 

Jawa and Jawa 42 have more power compared to the rival bikes such as Classic 350.  Powering both the motorcycles is the same 295cc, liquid-cooled, single cylinder engine that puts out an incredible 27bhp of max power and 28Nm of peak torque.

 

  • Good Looks

 

Jawa has inspiring looks which are eye-catching and quite convincing for the buyer not to fall in love with them. The good looks attract many.

Negatives

 

  • Not-so-comfortable seat.

 

Most reviewers have tabled a complaint on the seats of Jawa Bikes. The seats have a hard-cushioning which is not comfortable especially if the rider is going for long highway rides.

 

  • Missing rear disc brake & dual-channel abs

 

These Bikes get 280mm front disc brakes and single-channel ABS set up and are being praised by most reviewers for their stopping power.

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Crude Oil Mining Image

Crude Oil Price Analysis 2018-2019

One of the necessities of the universe right now is nothing, but crude oil, which is unrefined petroleum that formed of hydrocarbon deposits along with different organic materials.

It refines to make products like gasoline, petrochemicals, and diesel. Since it’s a very crucial need of the modern era, so let’s check out the crude oil price analysis of 2018-2019. It will also be beneficial in predicting the future of oil prices.

Crude Oil Mining Image

Crude Oil Analysis 2018-19

When we take a glance at the first half of the year 2018, we can see the fluctuations in the price of crude oil. As per the statistics, the price was 69.08 U.S dollars per barrel, which fell a bit and become 65.32 in February 2018. In March, it rose a bit to 66.02 dollars per barrel, and then you could see the further rise in the Brent crude oil price for April and May (72.11 and 76.98 respectively). The oil price for the last month of the first half of 2018 recorded as 74.4 dollars.

The year’s second half, however, brought more positive results with it as the overall Brent crude oil prices were low, but there were also some exceptions like 78.89 in September and 81.03 in October. The last month’s price recorded as 57.36 dollars per barrel, which shows the decrease in the price level for Brent Crude Oil.

Comes from the Brent oil field, which located in the North-East of the Shetland Islands (part of the United Kingdom), the Brent oil is among the lightest crude oils consists of a low content of Sulphur. The notable point is it refined into gasoline and middle distillates in North-West Europe.

The other crucial benchmark includes West Texas Intermediate (WTI), and it also rose close to 30% between the time duration of January and October, from 60 dollars to 78 dollars. Keep in mind WTI is quite essential for North America, and Dubai Crude dominates the Asian Market for oil.

Crude Oil Forecast

US Crude Oil Production and Imports

As per the forecast, the average crude oil price per barrel will be 73.7 dollars in 2019. The predictions depend on the supply and demand’ interaction in the international market for oil. After the modest growth in 2018, the expectations are high that the nominal price of West Texas Intermediate will increase to 50 dollars per barrel, and the Brent price will rise to 53 dollars per barrel in 2020. Moreover, the World Bank also expects the overall increase in all three Crude oil benchmarks (Brent, WTI, and Dubai Crude) even after 2020. The expectations are $70 would be the average rate per barrel by 2030.

Current Scenario of Commodity Markets in China

Future of Gold Price Demand and Supply

Current Scenario of Commodity Markets in China

China is one of the leading world economies. There is a possibility of commodities prices going up in 2019. But the China commodity market is dealing with an unprecedented number of disruptions including China and USA change in tariffs. As the world’s biggest buyer of natural resources made the presence of China felt on demand for crude oil, iron ore, coal, and purified natural gas. China’s extreme demand for major commodities is likely to remain the most determining factor influencing demand and supply in 2019.

Due to constraints in domestic gas inputs in China and the capacity limitations for pipeline imports, this means that liquified natural gas imports will increase in 2019 even if the price remains high. Secondly, China’s increasing use of natural gas has resulted in a decrease in coal import in China.

China has now boosted domestic production, this means that imports may find the going tougher this year. There is a possibility of iron ore markets in China will receive an increasing quality premium high-quality grade ore, which will, in turn, boost the fortunes of some producers but affect those in India which are majorly known for low-grade ore. Despite the efforts of the Organization of the Petroleum Exporting Countries and its allies to control the supply of oil to China, the oil demand is dominated by China.

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budget india 2019 Feb

Everything You Should Know About the Interim Budget of India 2019

For the past few months, every other person in India have put eyes on the upcoming budget, and finally, it announced on yesterday, 1 st February 2019. The interim budget 2019-20 presented by Finance Minister Piyush Goyal in the Lok Sabha (Parliament).

He started his speech by wishing Arun Jaitley, the former Finance Minister, a speedy recovery. Then the parliament session officially initiated amidst uproar with the Opposition shouting slogans.

Major Highlights and crucial points of the Budget

The Finance Minister, Piyush Goyal, has said that the Modi Government have got a decisive mandate for continuing structured reforms. “We have reversed policy paralysis,” he added. The crucial points and highlights of the 2019 interim union budget are:

  • The possible turning point for the upcoming polls is the government announced full tax rebate for people having 5 lakh or less annual income. It’s giving relief to middle-class and lower classes of the society, and it means that people with income up to five lakh rupees are free from taxes.
  • Individuals with up to Rs 6.5 lakh annual income are free to pay taxes if they make investments in prescribed equities and provident funds.
  • The Indian Government also introduced a financial package for farmers. It announced the Pradhan Mantri Kisan Samman Nidhi Scheme, and under which every farmer will receive an amount of Rs. 6000 per annum in their bank accounts. The government has already allocated the net income of Rs 75,000 crore to initiate the scheme.
  • Another wise move the government of India has taken is it allocated Rs 64,587 crore to Railways, but its gross capital expenditure program is of Rs 1,58,658 crore. The Finance Minister Piyush Goyal has stated it in the yesterday’s interim budget in the Lok Sabha.
  • When it comes to Defense budget, the government has also increased it to Rs 3 lakh crore.

The above are the highlights and crucial points of the budget, and it seems the interim budget 2019-20 provides a massive boost to the primary growth engine, which is Domestic Consumption through income tax rebate for up to 30 million low-income taxpayers and marginal farmers of 120 million.

All hopes are with the latest budget as it seems quite promising because it favors the lower class and farmers a lot, who are an integral part of shaping one’s economy. Let’s see what will happen in the next few months when the general elections will occur.

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Cryptcurrencies

Top Industries that are likely to be Outperform By 2030

We are breathing in an era of fast technology; everyone is running towards something to achieve more in less time. When it comes to the world, it’s quite clear some industries are doing quality work, and there is a high chance of them to outperform by 2030. Well, it’s all about trends as the universe is going towards eccentric trending businesses, which introduce the novel products every few months to keep their consumers engaged. So, here are some of the industries that are likely to outperform by 2030.

  • Cryptocurrency

    The business of online currencies (Bitcoin, XRP, ether, and litecoin), commonly known as a cryptocurrency, is on peak these days, and it’s growing faster than any other thing. Corporate dealers from all over the world are enthusiastically spending their money in cryptocurrency, and it seems the business is not losing its charisma any soon. As per records, the initial price of a coin in 2017 was $1000, and then it raised to $19,000.Predictors have already predicted it the one of the highly demanded industry by 2030, but heart patients should stay away from them as it’s full of risks. It is like a share market, so the degree of uncertainty is extremely high.

  • Technology

    It’s among the most profitable industries in the world, and with every new update, Alltech-related products are getting better than before. Spending in Technology can be the wisest decision ever because people are more dependent on gadgets than labor. The corporate sector is highly dependable on machinery, Defense sector needs the latest weapons to secure its territory, and long story short, every other field wants technology in one form or other.

  • Digital Marketing

    With the boom of online businesses, digital marketing is mandatory now to create awareness about the particular brand on the internet to grab the attention of consumers. Blogging, Search Engine Optimization, Content Writing, Brochures, Advertisements, Campaigns, and much more are the essentials of Digital Marketing. It will be staying for a long time because e-business is overtaking other traditional-style businesses, and the future of digital marketing is not unsecured.

  • Real Estate

    Another industry, which can never be out of fashion, is none other than real estate. It was a successful business, it is, and it will always be.

    Purchase and sale of buildings/properties always benefit the real estate industry in always. However, sometimes, you can face loss, too.

  • Cosmetics

    Cosmetics Industry

    There was a time when people think of the use of makeup to look good only, but now it’s more like an art. Cosmetics play an essential role in building one’s reputation as for how someone presents him/her. Whenever you say cosmetics, one name instantly came into mind, which is South Korea, a highly obsessed country with flawless beauty. It is producing world-class products, and the popularity of its cosmetics isn’t a joke. Moreover, it’s gaining attention from all over the earth. Not only women, but men are using cosmetics and other skin care products, too.

World’s Top 10 Share Trading Based Books To Buy

There is a good percentage of individuals who are addicted to the morning newspaper only to check out the stock market. Do you wait for business news to confirm the next possible jump in shares? Are you worried about your investment in the stock market? Don’t be worried anymore, if you want to do intelligent investment in the stock market. To enhance and improve your knowledge and wisdom in the shares market here are some of the great books which will make your dreams a reality;

1. The Intelligent Investor

This book is written by Benjamin Graham and Jason Zweig. This book is about definitive value investing.

2. How to Make Money in Stocks


This masterpiece is work of William O’Neil. This book is all about minimizing risks and maximizing gains to increase the efficiency of investments.

3. When to Sell

When To Sell

Authored by Justin Mamis. The title of the book is a clear reflection of what the book is all about. It gives basic guidelines on when an individual can sell his/her stock and make maximum profits out of it.

4. Irrational Exuberance

3rd Edition Revised and Expanded by Robert J. Shiller. It is one of most elaborative books that will help you understand the idea of shares and their prices.

5. Stock Investing for Dummies

This great book is written by Paul Mladjenovic. As a newbie, it is easy to get lost in this complicated venture. Therefore, Stock Investing for Dummies is a great quick guide for investors who want to step into the stock market.

6. A Random Walk Down Wall Street

This book is written by Burton.G.Malkiel.This highly engaging book clearly outlined the idea of indexing in a risk-taking and unpredictable world of the stock market.

7. Market Wizards

Updated The author of this great work is called Jack.D. Schwager. If you want to achieve great success in the stock market investment then this is one of the books that can open that door of success.

8. Stocks for the Long Run 5/E

Written by Jeremy.J.Seigel. It clearly explains the financial market returns and long term investment strategy in the shares market.

9. Common Sense on Mutual Fund.

common sense of mutual funds

This is the work of John C. Bogle. I know this name is familiar, due to his numerous writings on the stock investment. In this book, he explains the ongoing storms on the stock market, their implications and how to go through it.

10. One Up on Wall Street

This book basically explains how an investor can utilize what he /she already has to maximize profits in the stock market. This booth is written by Peter Lynch.

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