Zebu Blogs

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What Are Unlisted Stocks And Should You Invest In Them?

We all know that investing in stocks can be good because, if done right, it can give you a huge return. We buy our stocks from the companies listed only on the stock market. However, there are companies that are not listed on the market whose shares you can buy. These are called unlisted stocks. Many of us don't know that there are many benefits to investing in shares that aren't on the stock market. 1. Diversification of risk Unlisted shares have different risks than listed shares and can be a good addition to a portfolio of listed shares. They can be a good way to spread out your investments. Unlisted shares have the same or a better chance of making money than listed ones. There's a chance that these stocks will go public at some point in the future. When they do, there's a good chance that they'll go up a lot. But whether you buy listed or unlisted shares, it's important to look at the valuation metrics along with the price and buy stocks that are undervalued but have a good chance of growing earnings. 2. Undervaluation: Since most unlisted shares can't be sold quickly, they can only be bought by people who are willing to keep their money invested for a long time. Since there is less interest in these investments and fewer people want to join this community, the valuations are usually lower. There are many chances to invest in a stock that is undervalued. To find these opportunities, you need to be smart and know what to look for. For a beginner, it may be best to hire a professional who can give them the help they need. 3. Lower volatility Because the shares aren't easily sold, there are a lot fewer worries about their volatility. The standard deviation, which is a technical way of talking about how volatile something is, is much lower than listed shares. But if the wrong investment is made, the amount of money lost can be very high. Demand and supply for these stocks are not tracked every day, so the price would not change every day. When compared to listed shares, this investment will be less stressful in terms of money because the prices are fairly stable. How much should you spend on unlisted stocks? One should only buy unlisted shares if they are a good fit with the rest of their portfolio. Going overboard can make things a lot more dangerous. It is important to figure out your risk-appetite and how risky the investment is. Then, you can choose an investment that fits your risk profile. The risk of losing a lot of money in unlisted stocks is very high, so it's important to only buy as much as fits your risk tolerance. We suggest that if you are a beginner investor you should keep away from unlisted stocks but if you are an experienced investor, that you still take the help of a financial advisor before investing in unlisted stocks.

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What Exactly Are VAR And SPAN Margins?

VaR and SPAN margins are related to every position you take in the stock market, especially if you trade in FnOs. But what exactly are they and how can you calculate them? Here’s everything you need to know. VaR is a way to measure the risk of a loss. Value-at-risk, or VaR, is a way to measure the downside risk or potential loss of a portfolio or investment over a certain amount of time. It helps analyse and estimate how much the minimum loss can be with a certain amount of confidence. Essentially, it is a number that tells you how risky a portfolio is. For example, VaR can tell us that an investor can expect to lose at least 2% of the total value of their portfolio on 1 out of every 15 days. So, it helps figure out how much money could be lost, how likely it is to lose that much money, and how long it could take. Statistical simulations can be used in a number of ways to figure out VaR. The risk management department of a company keeps a close eye on this parameter and tries to make sure that extremely risky trades are not taken. Margin SPAN On the equity markets, traders also need to have a certain amount of money set aside as "margin money" to help cover trade losses. But it is hard to guess how much of a margin is needed to cover all the losses if the market shows the worst-case scenario. As a result, the SPAN, which stands for Standardised Portfolio Analysis of Risk, is a standard way for traders to figure out how much margin money they need. When figuring out margin amounts for every single position, the SPAN system uses complicated algorithms and machine learning techniques. Each margin amount is equal to the most a single account can reasonably lose in a single trading day. It was made by the CME in 1988, and more than 50 exchanges around the world use SPAN as their official way to figure out how much margin they need. This margin is different for each security because each one comes with a different level of risk. For example, the SPAN margin for a single stock will be higher than that for an Index because single stocks are more risky and volatile. Risk management Every trader who is successful knows how important it is to manage risk, which is even more important than making money. With the help of VaR and SPAN calculations, a trader can keep a large number of contracts in their portfolio and stay away from serious margin calls. More brokers and financial institutions are now focusing on better ways to handle risks. Many of them require that, in addition to SPAN margin, which is collected when trades are started, an additional margin called Exposure margin to be collected to protect against liabilities caused by wild swings, rogue trades, or reactions to extreme stress in the market.

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How To Get Started With Algo Trading

As a regular investor, here's how you can start Algo trading. As top brokers in share market , Zebu, allows you to use algo trading for free, along with offering the lowest brokerage for intraday trading options and proving users with the best trading accounts 1. Learn about the market Before you do any kind of trading, you need to learn about the market. Before you start Algo trading, you should learn as much as you can about the instrument or market you can trade in. This will help you come up with a hypothesis that you can use to guide your trades. 2. Know how to code If you don't know how to code, you can learn a language like Python and make an algorithm that works for you, or you can pay a professional to do it for you. 3. Backtesting You must test your algorithm before putting it into use. Back-testing is a way to make sure that your strategy will work in the future. You can also use software from a third party to check if your algorithms work. You can change your code based on whether or not they work. 4. Decide on the Best Platform As crucial as your coding is, you must also choose the correct broker and platform. Choose a broker that supports your algorithm and gives you a variety of tools to help you improve your trading strategy. For example, at Zebu we offer a free algo-trading provision that traders can use to execute their trades. If you would like to know more, please get in touch with us. 5. Go Live When you're happy with your algorithm, take it live. Monitor its market and real-world performance. Your algorithm might not always work. You might then have to start over or make changes to fit your needs. 6. Keep Evolving Even if your first strategy doesn't work, you don't have to give up on algorithmic trading. Keep trying out different codes to see what works best. If you don't have the time or skills to make your own algorithm, you can buy Algo software that will do the job for you. Do your research, try out the strategies with past data, and choose the one that works best for you. Conclusion Traditional investors can boost their trading approach by trying Algo trading. You can take advantage of short-lived trading chances that you would have missed otherwise. Algo trading can help you become a good trader who is quick, efficient, and successful. Is algo trading costing you a bomb? Zebu, As top brokers in share market allows you to use algo trading for free, along with offering the lowest brokerage for intraday trading options and proving users with the best trading accounts.

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The Future Of Algo Trading In India

There are many opportunities on the stock market. Yes, there is nothing better than believing in a stock and seeing it go up in value by a lot. But since the stock market has grown into a big, complicated beast, there are other ways to make money consistently, like catching a short-term trend or reversal pattern or using options structures to profit from short-term moves. Are you in the search best stock trading platform? Then, your search ends here. We make online stock trading easy with our best trading platform. If you tried to use these strategies manually in a market that keeps getting bigger and bigger, you probably gave up because it was too hard. But if you use technology and automation to help you trade, you'll see that you can make trading less stressful and easy. In a nutshell, that's what Algorithmic Trading has to offer. As Indian markets become more developed, it will change the stock market in a big way. Even though Algorithmic Trading has been around for a while in India, it is still in its early stages. Algos make up 70–80% of the global market volume and have many different structures, rules, and participants. In India, however, algos only make up 50–60% of the market volume and are simpler and less understood. Around 2010, algorithmic trading began in India, but at first, only Institutions and brokers used it. But now, thanks to the growth of digital discount brokers and API solutions, anyone in the retail market can make algorithms, and the possibilities are endless! Algorithmic trading is becoming more popular, and people are learning more about it and getting better at it. But even so, there is a lot of room for growth for Algos in India if you look at how they are used in other markets. Algorithmic trading is different in many ways. Not only does it give the trader the chance to make money, but it also makes trading more systematic by removing the effects of human emotions and mistakes. It also makes the market run better and have more money in it. The main reasons why algorithmic trading is better than manual trading are that it is faster, more accurate, and saves money. Algorithms can find patterns and trades in a fraction of a second, which is faster than humans can see. When a machine follows instructions that have already been set, accuracy and precision are good. Also, the algo keeps an eye on your orders all the time without you having to do anything, which cuts down on trading time and costs and saves you a lot of time. Most people are interested in algorithms that are used for systematic trading. Trend watchers, hedge funds, and pair traders find that it is much more efficient to programme their trading rules into software and then let the software trade on its own. But apart from that, Execution and Arbitrage are two large areas of trading where algorithms are used. Mutual funds, pension funds, and insurance companies use algorithms to split up their orders when they don't want their single, large-volume trades to affect stock prices. And there is arbitrage, which is buying and selling instruments that are highly related to each other to make consistent small profits from the spread and make the market work better. Then comes high-frequency trading, which means they trade every millisecond, or medium frequency, which means they trade every few minutes or even days. Trend following, also called momentum trading, and mean reversion, also called range-bound trading, are two other important types of algos. Smart Beta is a way to invest in market inefficiencies based on rules. It is becoming more popular in India. High-frequency traders use arbitrage and market-making, which is a way to trade on both sides of the range. Rules and the Way Forward: Along with the growth of markets, India is also changing its rules for Algorithmic Trading. SEBI has recently put out a consultation paper to make automated trading rules stronger and better for the end customer. Algos have had their fair share of problems, like the Colocation scam or the way some algo traders take advantage of people. But as the industry becomes more well-known, the inefficiencies would be fixed, and algorithms would change the markets by making them more efficient, fair, and data-driven. If you are looking for the best stock trading platforms? Then, we are here to help you. We make online stock trading easy with our best trading platform.

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Types Of Strategies You Can Use In Algo Trading

Algorithmic Trading is something that investors use in many different ways. Here are some of the most common. As an online share broker, we understand the need for an efficient online trading platformand we offer our customers just that. Also, get in touch with us for the lowest brokerage options. Rebalancing: Index funds constantly change their holdings to match the current market price of the asset they track. So, they give algo traders chances to take advantage of the trades that are expected and make money from the difference of 20–80 basis points. Most of these trades happen when an index fund rebalances are done through algorithmic trading. Trend Following: This is the type of algorithmic trading that algo traders do most often. In this process, they use moving averages, price changes, channel breakouts, etc. to make a set of instructions for the algorithmic trading software. Arbitrage: It is when you buy a stock at a low price in one market and sell it at a high price in another market at the same time. You make money from the price difference. Investors use data to find stocks that are trading at different prices and then use algorithmic trading to place buy and sell orders in both markets. Mathematical Model: Investors trade on the stock and derivative of the same underlying asset by using mathematical models that have been tested and shown to work. Since this can be a complicated set of trades, they use algorithmic trading to find these assets and place orders across different asset classes based on price changes. Mean Reversion: This strategy tries to take advantage of an asset's temporary highs and lows. If given enough time, the asset price will always go back to its average value (average price). VWAP: Investors use algo trading to set a price range for an asset and make sure it automatically buys or sells when the price goes in or out of that range. Investors seek to execute orders as close as feasible to the VWAP. With algorithmic trading, investors can break up large orders into smaller pieces that change over time and make sure their closing price goals are met. Please keep in mind that these are just a few of the strategies that you can use with algo trading. Apart from this, you can also trade breakouts, chart patterns and price actions as well. As we mentioned earlier as an online share broker, we understand the need for an efficient online trading platform and we offer our customers just that. Also, get in touch with us for the lowest brokerage options.

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Benefits Of Algo Trading

An algorithm is the core of every computer programme and how it works. With the rise of new technologies, the effectiveness of almost every sector is based on this piece of logical coding. Algorithms use user data, patterns from the past, and a set of instructions that have already been decided on to reach their goals. In the financial world, the need to lower transaction costs is driving more people to want to use algorithms in everything from customer service to trading stocks. When you trade with algorithms you need to have a powerful technology to support you and we understand that. As one of the top brokers in share market, we offer the best trading accounts and the lowest brokerage for intraday trading. Algo-trading is the technology that changes the most quickly. It has amazing and smart features that make trading faster and better for market participants. Financial institutions like banks, brokerage firms, and investment funds use complex algorithms to open and close positions at lightning speed. This setup lets these institutions take advantage of small differences in real-time market conditions, which is harder to do manually. Algo-trading constantly watches markets and places orders when conditions match a set of parameters, such as volume, price, resistance, support, or any other factor that the trader or market participant is comfortable with. One of the benefits of algorithmic trading is that it can easily and quickly find a trend by using the data that is already available. If they can't analyse a large amount of data quickly, it's hard for market participants to act quickly. Market participants can also use more than one strategy at the same time and decide what the net result of the strategy will be. Let's look at an example to see what I mean: if a market participant has used 10 different strategies on one stock, the system will suggest other ways to trade that stock. If 7-8 of these 10 strategies give buy signals, the trader will buy the stock. Most of the strategies are giving buy signals, so it makes sense to think that the strategy will be good. Algo trading uses technology and computers to make trade decisions, which can be hard for traders who don't know much about the financial markets to do on their own. Trading automation is a great way to try out different strategies and automate boring tasks to get results faster. Also, the use of algorithms in financial services is likely to create growth opportunities in the near future that will be very profitable. There is no doubt that algorithmic trading will be used more often, especially now that platforms exist to make complex technologies easier for everyone to understand. When trading with algorithms you need to have a powerful technology to support you and we understand that. As one of the top brokers in share market, we offer the best trading accounts and the lowest brokerage for intraday trading.

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What is Algo Trading and How Does It Work?

Algorithms are everywhere. From our smartphones to laptops to anything with technology, algorithms power the functionality of billions of entities. With the rise of more advanced technologies, this piece of logical code is now used in almost every field. Algorithms use user data, patterns from the past, and a set of instructions that have already been decided on to reach their goals. Mutual Fund companies, for example, use an algorithm to take the set amount out of your bank account every month for a SIP Algorithms are used in the virtual transaction system to make sure that trading is clear, that users have a good experience, and that there aren't any hiccups or delays. But depositories and stockbrokers aren't the only ones who use algorithms. Traders use algorithms to avoid mistakes made by retail traders and increase their chances of making money. Algorithmic Trading or Algo Trading is the name for this process. Before we get into what is Algo trading it is important that you understand that it requires a powerful tool. As a share broker company, we understand the requirements of an avid trader and offer a seamless . online trading platform with the lowest brokerage options. How does algorithmic trading work? Algorithmic trading is a way to trade quickly on the financial market by using trading instructions that have already been programmed. Traders and investors use trading software, which they tell what to do based on time, volume, and price. When the market triggers the set instructions, the investor's orders are carried out by the trading software. In general, Mutual Funds, Hedge Funds, Insurance Companies, Banks, etc. use algorithmic trading to make a large number of high-volume trades that would be impossible for humans to do. Algorithmic trading lets investors make more deals in less time without human emotions and mistakes. Take a look at the following example to better understand what algo trading is. The following set of instructions can be given by an investor for algorithmic trading to take place: Instruction 1: Buy 200 shares of XYZ company if the price goes above its 15 minute high. Now, if the price of a share goes above the 15 minute high, the algorithmic trading system will automatically place an order for 200 shares of XYZ company. But the algorithmic trading software won't do anything with the order unless the conditions are met. Instruction 2: Sell 200 shares of XYZ company if its 20-day moving average falls below the 200-day moving average on the 5-minute time frame. In this case, the algorithmic trading software will sell 200 shares of XYZ company if its 20-day moving average falls below its 200-day moving average.. If it doesn't, the order will not be executed. For algorithmic trading to work, each set of instructions must be carried out only once. For example, in Instruction 1, the algorithmic trading software will place a buy order if the price stays above the 15-minute high for even a few seconds. After those few seconds, the price might drop back below the entry point and develop a loss. But the order would have already been placed as soon as the conditions are met. Algo trading has come a long way in India and is all set to reach greater heights. You can simplify your trading system or add as many data points to it as you want but it is crucial to understand its working and monitor it closely. As we mentioned earlier Algo trading requires a powerful tool. As a share broker company, we understand the requirements of an avid trader and offer a seamless online trading platform with the lowest brokerage options.

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The Basic Rules Of Day Trading You Should Know

Day trading is a way to trade stocks that is both risky and profitable. Day trading, which is also called intraday trading, is when you buy and sell stocks during the same trading session. Here are some basic intraday trading tips you can use if you want to use this strategy to make money on the stock market. Before we get into the rules, the basic rule of trading is to use the right tools — as a share trading company we understand this better than anyone and are here to offer our customers the best Indian trading platform along with the lowest brokerage options. 1. Choose the best stocks When you start day trading, the first and most important thing you should do is choose the right stock to buy. Not all stocks are good choices for trading during the day. Since you would be buying and selling them during the same trading session, you would need to choose stocks with a lot of liquidity, which will make buying and selling them easier. Large-cap stocks and mid-cap stocks are usually the best choices for day trading because they have a lot of buyers and sellers. 2. Set prices to enter and exit the market Once you've decided on the stock you want to trade, the next step is to set entry and exit prices. Going into a trade without any goals is a sure way to lose money. Set a price at which you want to buy the stock and stick to it, even if it means you might not be able to buy it. Set a goal for when you want to sell the stock, even if it means you might miss out on any gains the stock might make in the future. 3. Don't forget to set stop loss After buying the stock, the first thing you should do is set a stop loss. This will keep you from losing a lot of money if the stock moves in a way you didn't expect. Let's say you buy a stock for Rs. 100 with the hope that it will go up. But as a safety net, you set a stop loss at Rs. 97. Now, if the stock goes against your expectations and drops to Rs. 97, the stop loss will be triggered, and your stock will be sold at a loss of Rs. 3. You will also be protected if the price goes down even more. 4. Always follow the trend This is one of the best tips you can use when trading during the day. If the market is going up, it's a good idea to buy stocks. And if it is bad, it is best to sell stocks. Contrarian views on the market are never a good idea because they can backfire. For example, many people short-sell stocks when the market is bullish because they expect the price to go down. These kinds of changes don't happen very often. Conclusion Even though intraday trading is riskier than regular trading, when done right, it can be one of the most profitable ways to make money consistently. So, if you want to do day trading, you must have both a trading account and a Demat account. Get in touch with us right away to start trading stocks. As a share trading company, we understand this better than anyone and are here to offer our customers the best Indian trading platform along with the lowest brokerage options. Want to try out our tools? Get in touch with us.

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Things To Keep In Mind During A Market Correction

Some investors are wary of the stock market and investing in stocks in general because these markets tend to be unstable. Investors say they'd rather be safe than sorry, so they put their hard-earned money into relatively safe investments like government-issued bonds and fixed deposits. People who say the stock market is extremely volatile aren't completely wrong, because it can be. But it's important to remember that investors and traders who know what they're doing can get a good idea of how volatile the market is and limit any possible loss. While you analyse how the market is going to act, it is important you have the best tools in hand. At Zebu, we aim to offer our users the best trading accounts and the lowest brokerage for intraday trading to make their online stock trading journey easy. Correction in the stock market If you are a big investor and most of your money is in stocks or if you want to start trading and investing in the stock market, you need to know about stock market corrections. A "correction" in the stock market is when prices fall by at least 10% from their previous highs. Just the fact that prices are falling gives it a bad reputation. Even though this might make you feel nervous, it doesn't always mean something bad. Most investors think that this is a normal part of trading on the stock market. In light of this, there are a few things you should know about corrections in the stock market. 1. Types of corrections The markets can only go up or down. But when the market goes down, it can go down in different ways. For example, a "pullback" is a change of about 5% in market prices. A correction, on the other hand, is a little bit bigger, with a drop of 10–20% from previous highs. Then you have what is called a "bear market," which means that prices have dropped more than 20% from their previous highs. This could go on for a longer time than a pullback or a correction. When you buy shares online, the good news is that bear markets don't last as long as bull markets. 2. Inevitable Corrections Corrections are the only way to reach a balance that makes sense for markets to stay in a healthy state. If markets go through the roof, it means that other parts of a country's finances, like inflation, are in trouble. Because of corrections, investors can buy stocks at fair prices. 3. Greater uncertainty During a correction, volatility, as measured by the VIX (volatility index), is thought to reach greater heights. This is because investors' feelings change all the time, and a wide range of feelings affects market prices. 4. Expectations Corrections in the stock market can't be predicted, but they happen as often as the sun rises and sets. Also, a crash in the stock market doesn't have a clear cause. Some stock market investors make predictions based on what happened in the past, but this isn't a sure thing. 5. A chance to make a long-term investment Long-term investors like it when the stock market drops because they can buy stocks at lower prices (called "discounts") and they don't mind keeping them for a long time. When the stock market as a whole falls, the prices of individual shares tend to fall as well. This is great for people who invest for the long term. 6. Temporary Corrections are temporary. Most people agree that they may only last a little more than a year at the most. This is important to investors because months of hard work can go to waste in a single day, but if you look at the big picture, the highs of the stock market are higher than the lows of corrections. 7. Dividends When you buy shares online, you should know that in the past, growth stocks have helped the stock market as a whole reach new heights. But stocks that pay out income or dividends can be a safer investment. These come from stable companies and give you dividends you can count on. They start making money after a few years. If you buy "dividend stocks," you might still get returns that won't change if the market goes down. No Reason to Worry A few changes here and there don't matter much in the long run. In general, the market is always going up. Stock Market Trading and Investment You shouldn't worry about a correction when you open a Demat account. Many investors do this, and it keeps them from having a healthy view of investing and diversifying their portfolios. You can learn and make money at Zebu, and we can help you make smart investments. At Zebu, we aim to offer our users the best trading accounts and the lowest brokerage for intraday trading to make their online stock trading journey easy. Check our website for more info

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Want To Win Over The Market? It’s A Game Of Psychology

For many investors, the stock market today opens up a world of chances. But if you don't know how to handle the ups and downs of the markets, it can be a dangerous place. To trade well in any financial market, investors need a set of skills. The skill set should ideally include the ability to evaluate the basic technical aspects of any company and to figure out the direction of a stock's trend. But neither of these skills is as important as the way a trader or investor thinks. Sometimes it seems like stocks have their own minds, but investors need to keep their emotions in check, think on their feet, and trade with discipline and care. This is where “trading psychology” comes into play. Your state of mind has a lot to do with how you make decisions and act on the trading floor. Are you looking for the best trading platform? Look no further. At Zebu, as one of the top brokers in share market we offer the best online trading platform to make your trading journey smooth. When you, as an investor, are in the stock market today, you need to keep your feelings in check. If you understand these, you'll be able to trade well and reach your goals. Two of the most important emotions you need to control are greed and fear. Greed is driven by the desire to make more money, and fear is driven by the worry that you might make the wrong choices. If you can keep these two bad feelings in check, you will not only win the mental battle with the stock market but also the war. Getting things done quickly When you have to do different things in the stock market, you should know what emotions are involved so you can control them. Traders and investors need to be able to think quickly so they can act quickly. It takes a clear head to be able to jump into and out of stocks at the last minute. Investors also need the discipline to stick to their plans for trading and investing. They should know exactly when to start making money and when to stop losing money. In reality, emotions get in the way of these actions when they get in the way. What's the deal with fear? When you're an investor or trader on the stock market in real-time, it's hard to keep your feelings out of it. If you want to be successful at trading and investing, you should be able to keep your emotions, which are the only thing that drives sentiment, under control. Often, while trading is going on, bad news about a certain stock will come out. You might even hear that the economy as a whole is in bad shape. This is when investors become fearful. This could cause you to sell your stocks, which would force you to sit on your cash and keep you from taking more risks. As a result, you may avoid losses but may lose out on gainful returns. When investors and traders see a threat that may or may not happen, they often act quickly out of fear. Here, you might act without thinking when you think there is a threat to your chance of making money. If you want to trade and invest, you should know that situations like this can happen. So, you can prepare yourself mentally. Keeping greed under control There is a saying that suggests that greedy investors on Wall Street usually end up losing money. This is about investors who are too greedy and tend to hold on to a winning position for too long. These investors want to take advantage of a stock's winning streak until the price goes up one more time. What they don't expect is that the stock will take a sudden turn for the worse and fall in a flash. Greed is hard to get rid of, and most investors don't start out greedy but tend to become greedy as they go. Greed comes about because people want to do better. But trading should not be based on whims and impulses; it should be based on facts. Rules are the best Several experienced investors will tell you that it's easy to make rules, but it takes a lot of mental strength to follow them. When people act on impulse instead of following the rules, they tend to break them. Investors may or may not make money on the stock market today, but when it comes down to it, they must stick to their rules. Right from the beginning, you need to set some rules. These must be based on your risk/reward tolerance and tell you when to enter trades and when to get out of them. A stop-loss should be put in place after a profit goal has been set. All of this takes the feelings out of trading and investing. Reason and research help people win wars Traders can get through a day of trading with ease if they use logic and reason. Also, investors and traders can choose which events will make them decide to sell or buy stocks. You should also decide how much money you are willing to lose or win in a day. If you have reached your profit goal, it makes sense to stop trading right away. All of this is, of course, governed by rules, and the most important thing is to follow the rules and be reasonable. Trading and investing in stocks is not scary, and you can do it by opening a demat account with Zebu. When you do research on a stock, you can also learn about the stock's trend. In the end, it's up to you if you want to use the stock market as a battleground or a place to play. At Zebu, as one of the top brokers in share market we offer the best online trading platform to make your trading journey smooth.

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The Ideal Asset Allocation Formula For Your Capital

For the same amount of capital, different investors will divide it and invest in different asset classes like mutual funds, real estate, bonds, FDs and so on. But how can we decide which portfolio is the best? Well, that depends on the investor's age and what they want to do with their money. The right asset allocation for each investor is based on these things. But what does it mean to divide up assets? Let's find out. As an online share broker company, we understand the importance of efficient digital technology and offer a seamless online trading platform for our users and an added advantage of the lowest brokerage options. How do you divide up your assets? Asset allocation is the process of putting your money into different kinds of investments, such as stocks, bonds, gold, real estate, cash, and so on. It is the process of choosing what assets to buy with the money you have to invest. Asset allocation is important because it makes sure that your portfolio is in line with your financial goals. It also makes sure that you don't buy assets whose level of risk doesn't match your risk tolerance. So, what's the best way to divide your wealth among different assets? There is no one best way for investors, in general, to divide up their assets in their portfolios. Even for the same investor, the best way to invest their money will change as they get older. So, if you are just starting out with investing, here is how you can figure out the best way to divide up your assets. When you're in your 20s, you're still young and many years away from retirement. This means that you can take more risks with your money and invest in the stock market today. So, you may put more of your money into stocks and mutual funds that invest in stocks. This is fine as long as you don't have too many debts in your name. Also, you should balance your equity investments with a few safe investments to make your portfolio more diverse and reduce the overall risk. When you're in your 30s, you may be able to earn a lot more than when you were younger. But you may also have other debts under your name, such as a mortgage or car loan. Still, you can still take some risks at this age because retirement is still a long way off. So, your portfolio could have a lot of stocks and a few fixed-income investments to balance out the risk. You could buy shares in mutual funds, or you could put together your own portfolio of stocks and bonds. When you are in your 40s, you are getting closer to retirement age. You need to make sure that you pay off your high-interest debts. As for how you divide up your assets, it may be time to gradually put less money into high-risk investments and more into stable ones. You could keep investing in mutual funds on the stock market as long as you choose "blue chip" stocks from strong companies or stocks that pay regular dividends. Aside from that, it might be a good time to put more of your money into debt instruments and deposits. Asset allocation in your 50s: When you're in your 50s, you should put more emphasis on keeping your money than on making it grow. With retirement coming up in just a few years, you need to make sure you have enough money to take care of your life goals after retirement. Since you won't be working after you retire, it's also important to set up another way to make money. At this point, you can almost completely get out of the stock market and change your portfolio so that it has more debt and fixed-income investments. Also, try to choose investments that can give you a steady stream of income. When you are in your 60s, it is likely that you have already retired. You should have been able to pay off all your debts if you had planned your money better. Your asset allocation should be made up of only safe, risk-free, or low-risk investments like gold, real estate, deposits, and debt instruments. This way, you can make sure that the money you've saved up over the years is safe and not affected by changes in the market. How to make sure the best use of assets? In addition to the above rules of thumb, you can also make sure your asset allocation is good by making sure your portfolio is in line with your financial goals. Know where your money is going: Your goals must match up with how you divide up your assets. You need to know why you're investing, whether it's to buy a new house, pay for your kids' college, or save for your retirement. Think about the time frame of the investment. You should choose investments with a time frame that matches the time frame of your goals. In other words, choose long-term investments for long-term goals and short-term assets for short-term goals. Think about the money you'll make from your investments. Find out how much money you'll need to reach a certain financial goal, and invest in something whose returns will help you build up the money you'll need. For instance, you can't use an FD to get the money you need to build your house. Instead, if you want to make a lot of money, you should invest in the stock market or stock funds. Conclusion If investing in the stock market is part of your ideal mix of assets, you need to open a demat account before you can start. Zebu has an online platform that makes it easy to do this. Make sure you look at your portfolio every six months or once a year to make sure it fits your age and goals. As an online share broker company, we understand the importance of efficient digital technology and offer a seamless online trading platform for our users and the lowest brokerage options. 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Rules Investing Rules That Every New Investor Should Know

If you are a new investor, you can give yourself a pat on the back for getting started. Rest assured that if you invest wisely, you can provide your family with the ideal lifestyle. At first, getting started on this path might seem hard, but millions of people have made money from the markets by following a few simple but important tips. Along with the 5 golden rules of investing, another important aspect of investing is the technology we use. Hence, Zebu, one of the biggest share broker company offer the lowest brokerage for intraday trading and the best trading accounts for our customer. These five golden rules will be your guide when it comes to investing: Compound your returns Learn about the power of compounding. The key to your future wealth lies in the power that you haven't used yet: the power of your investment growing over time. The earlier you start investing, the longer your money will make money for you. At the end of the day, it can be better to invest a small amount regularly over a long period of time than to invest a large amount for a short time. To get the most out of your equity investment, you need to stay invested through the market's boom and bust cycles. Financial goals Know what you want to achieve with your investments. Always keep in mind that your portfolio must help you reach your life goals. If you make a plan with your financial advisor, your investments can help you reach your life goals, like saving for your kids' college, buying a house or car, or saving for retirement. Many people make the mistake of investing on their own, which they later regret when their investments don't meet their goals. Know your risk limits Accept the risk you're willing to take. The risk of investing in the markets varies from one instrument to the next. For example, investing in fixed deposits is less risky than investing in mutual funds. Over time, though, many mutual funds do give better returns than fixed deposits. Before you buy a market instrument, you should think about what you want, what you need, and how much risk you can handle. Consider investing in a mutual fund or the shares of a company only if a trustworthy stock market expert tells you to do so. Keep your emotions in check Learn not to let your emotions get in the way. People often get too emotionally attached to their portfolios and give up on good sense and objectivity. Most likely, your portfolio will go up and down in the short term. During a bull market, it will make you happy when the price goes up, but it shouldn't make you lose your nerve when the price goes down. As an investor, you need to develop the discipline to stick with your investments over the long term and not sell them off when things get hard. When investing in the markets, it's always a good idea to be smart about your investments and listen to stock market experts you can trust. Appoint a Financial Advisor In the last few decades, the study of behavioural economics has shown that people often invest in a sloppy way. People they know often have an effect on what they decide to invest in. On the other hand, people fall for irrational cognitive biases. When it comes to the stock market, good advice from a reputable stock market advisor can be your best guide. You won't sell your investments out of fear if you have well-researched market reports and good investment advice. Conclusion Overall, a disciplined approach to investing and a calm, patient attitude during market lows can help you not only survive the worst of the market lows but also profit from them. In the same way that you take your car to a mechanic to get it fixed, you can go to a financial advisor to help you get your portfolio in order. Getting help from a good financial advisor can make a big difference in how much money you and your family have. Zebu, one of the biggest share broker company offer the lowest brokerage for intraday trading and the best trading accounts for our customer. Get in touch with us to know more.