Why should you Protect your Trading Account with Balance?

So you have decided that you want to take the first step into online commodity trading, forex trading, stocks and shares trading etc.  You are ready to open your trading account and have your initial capital investment-ready.  But have you considered the very important question of how to protect your trading account?

DON’T SET YOURSELF UP TO FAIL

New traders often start out full of enthusiasm and confidence that they are going to make a healthy profit.  Sadly all too often they fail to achieve this, leading them to conclude that ‘trading is too hard’ and ending their trading career before it really got going in the first place.  The mistake they make is to invest all of their capital in the early days and have nothing left in reserve to keep them going once that is wiped out.

BALANCE IS THE BEST FORM OF PROTECTION

The best advice that newcomers to trading can take from the common mistake described above, is to only ever invest what you can afford to lose.  Holding back some funds in your account for when you spot a good opportunity, or to keep you going in times of trouble,  can only be beneficial in the long run.  Investing everything immediately is a bad idea for sure.  If you do not have funds in your account, you can not trade anything new.  Imagine any event that requires a ticket for entry.  In order to participate in that event, you need to buy a ticket.  No money = no ticket.  This example can be adapted to the stocks and shares market too.  No funds = no chance to trade.  You need money there in order to do business.  Use it sparingly and replenish it when you get profit.

PLAY SAFE UNTIL YOU FIND YOUR FEET

Remember that the aim of the game is to make money.  Having everything tied up in shares is not particularly useful.  Your trades should be used to generate money.  The more money you have in your account, the bigger trades you will be able to go for, without having to worry too much about loss.  Risk is always a factor in any form of trading, but your balance helps you to run that risk more easily.  By doing so you can enjoy less risky trading with money management in place.  If you have more, you can afford to lose more.  You should never have to compromise your lifestyle and day-to-day living because your investments are in a mess.  You should manage them so that they take care of themselves, using only your disposable income.  Never take loans in order to invest.  It is never worth the risk.   

BUILD UP SLOWLY AND GROW YOUR BALANCE

Lets say for example, you begin your trading career with 10 lakh rupees of balance.  You immediately buy 10 lakh worth of stocks and shares and now have zero balance.  Not only is ALL your money at risk, but you don’t even have any spare to use when a particularly attractive trading opportunity comes your way.  The alternative and proper way to operate could be to invest part of your initial 10 lakhs (how much exactly will depend on your trading strategy and goals which should be planned carefully with your broker or advisor and adhered to carefully) beginning with small trades for small profits.  This will give you a taste of the market so you can get used to the act of trading.  Playing with small amounts at first ensures that you will not be wiped out in the event that you make a few bad trades.  Remember that everyone makes bad trades at some time or another.  Nobody wins consistently.  Going forward, your small trades should generate small profits which all add up to a substantial amount.  Lets say you are able to generate a further 2 lakh rupees in 2 years, you now have 2 lakh rupees extra to play with, without needing to touch that amount of the initial capital that you held back in your account.  Let that be there, safe for use when you become more experienced, more sure of your self and more used to the way the markets work.  You could even afford to lose the 2 lakh rupees and be no worse off than where you started.  After all, that is money that you never had to begin with.  If you lose money from your initial capital however, you are losing your hard-earned money and becoming worse off overall.

DO NOT UNDERESTIMATE THE POWER OF AN INVESTMENT PLAN

Those who create robust long-term plans for themselves and stick to them meticulously almost certainly perform better than their counterparts who invest randomly and sporadically on a whim.  If you don’t have a plan in place, you need one, plain and simple.  If you require help in creating a plan for yourself, you can rely on the expert assistance of the staff at GWC INDIA.  Get the best risk management for active traders.  They are waiting on the other end of the phone line to help you maximise your potential and get the best returns on investment.  Call today on +91 80122 78000 and discover why GWC INDIA are the top online broker when it comes to value.  Don’t forget to ask about their extra-low brokerage charges and bonus special features that they make available to every GWC INDIA customer.

Mutual Fund Investment ideas for beginners (Include types of mutual funds)

WHAT IS A MUTUAL FUND?

In simple terms, a mutual fund is an investment product that is formed from money supplied by multiple individuals and/or companies, which is managed by a professional fund manager.  The fund manager uses his discretion to invest the money in various sectors in various forms of securities.  The purpose of spreading it in different areas is to hedge against the potential losses that would be incurred if a single sector was to suffer a crash.  The fund manager invests according to the investors’ risk tolerance.  The overall aim is to maximise the return on investment for everyone.  His own salary may be fixed regardless of how well he succeeds, or he may receive bonuses for achieving a good performance.  It is not necessary that each investor contributes the same amount of money to the fund.  Those who contribute more are entitled to a higher percentage of the gains.  To understand more easily who owns how much of the fund, and how much the fund is worth at any given time, it is divided into ‘units’.  An investor holding two units will be in receipt of two-times as much of the profit share compared to someone who only owns a single unit.  The current worth of the mutual fund itself is expressed as a price (Net Asset Value) per unit.  Mutual funds generate ‘passive income’, which means apart from supplying the initial capital funds there is no day-to-day work for the investor as everything is handled by the fund manager.  Monthly dividends are credited to the investor’s account automatically each month.

DIFFERENT TYPES OF MUTUAL FUNDS

Now that you understand what a mutual fund is, you should learn that there are several different types.  Not all mutual funds are equal to each other.  In fact there are many variants.  In order to make a decision on which type you would prefer to invest in, you must consider your aims, as all investors should have a plan.  Some mutual fund products are intended to generate more profit in a short time, but have inherently higher risk.  Others are designed to be long-term investments with more modest monthly returns but much less risk.  You should ask yourself how much you can afford to invest, how long you wish to invest for, and how much risk you are prepared to tolerate.  Most types of mutual funds allow you to put money in or pull your money out when ever you chose, but not all.  The ELSS (Equity Linked Saving Scheme) for example has a minimum lock-in period of three years.  It does come with its own special benefit though.  That is the fact that it qualifies for tax deduction on up to Rs. 1.5 lakh.  This is a unique opportunity to put some of your salary away and not be taxed on it, and earn returns in the meantime.  With the sheer amount of mutual funds available to invest in all with different risks as well as different benefits.  It is an absolute minefield for the uninitiated.  This is why it is highly advisable to invest with the assistance of a broker, at least in the early days of your investment career.

READY TO INVEST? HOW TO GET STARTED?

If you are convinced of the benefits of mutual funds investment in India, and wish to make an investment yourself, you must be wondering how to get started.  It is actually possible for anybody to contact a mutual fund company directly and ask to buy units.  This is considered risky for newcomers as although the company can sell the units, they are not best placed to give advice, and make sure that the investor knows the full implications and risks of what he is buying into.  For newcomers it is highly recommended to begin trading with the assistance of a reputable broker such as GOODWILL INDIA.  These kind of brokers are well placed to coach and mentor newcomers and may even publish a mutual fund investment guide for beginners.  They can provide you with all the support you need to get started in mutual find investing and avoid the pitfalls that can often catch out novices if they are not pointed out to them.  GOODWILL INDIA will be able to open a Demat Account on your behalf, absolutely free of charge!  Demat accounts make the buying and selling of mutual fund units so much simpler and safer as they hold all your ownership certificates in the digital domain and do not leave you with the hassle of possessing and protecting masses of paperwork.  Many brokers charge for open demat accounts, but not GOODWILL INDIA.  Free opening of demat accounts is just one of the many benefits they provide to their customers.  A few of the other GOODWILL good value bonus features are daily online webinars providing invaluable tips and strategy ideas for beginners and advanced investors.  Customer service telephone lines that are open longer than the competition, unlimited ‘call-and-trade’ service whereby you can phone to place orders, AND a unique mobile application allowing you to monitor your accounts and make trades right from your mobile device, wherever you may be.  To top it all off, GOODWILL INDIA have some of the absolute lowest brokerage charges anywhere in India.  Why not give them a call on +91 80122 78000 today?  Find out just how they can assist you in achieving your investment goals.

Oil Price Falling Due to the Impact of COVID 19? What Will Happen in the Future?

One of the most popular commodities t be traded on the MCX has always been crude oil.  Being one of the primary sources of energy for human activity in the world, it has been in constant demand since the invention of the internal combustion engine.  Apart from it being the raw material used for making petroleum and diesel, it is also imperative for the production of other petroleum based products, LPG, plastics, and bitumen being a few of them.

Crude oil prices have always seen fluctuations based on world events such as wars and recessions, but there has perhaps never been such a sudden drop as we have witnessed on the oil price after the impact of COVID-19 in 2020.  This sudden shock has been caused by a huge decrease in the demand for crude oil due to some of the highest consuming countries in the world (The USA being the highest consumer of all) being under lockdown.  International passenger flights have also been halted to a large extent, meaning that aviation fuel and fuel for private vehicles is in very low demand.

The fall in oil prices has sent shudders down the spines of commodity traders throughout India and the world over.  The question on everybody’s lips is ‘What is the future of the oil market?’  Only time will tell.  The absolute priority of the world right now must be to find a way to put an end to the coronavirus pandemic known as COVID-19.  Only after we emerge out of the other end of the crisis will be able to watch and observe how the market recovers in the future.

To give you an idea why the demand for oil is at such an all-time low, you need to understand that 84% of the COVID-19 infections and 94% of deaths through COVID-19 have so far occurred in the top 22 oil consuming countries.  These 22 nations make up 79% of global Gross Domestic Product.  Restricted economic activities, and restricted personal and public travel in these countries had led to this low demand, culminating in low oil prices.

The low price of oil is not all bad news for everyone.  For example, those ‘key workers’ who are working at the forefront of the fight against coronavirus, providing invaluable medical and care services, are still allowed to travel and commute in order to perform their daily work.  Petrol and diesel prices have fallen dramatically at the pump, meaning that those who use vehicles in their work can see hefty savings in this element of their monthly expenditure.  Buildings that are heated with heating oil or use oil-fired boilers can also make savings during this time.  Those with the infrastructure in place to stockpile oil and petroleum products may find enterprising solutions to take advantage of the low price.  New commodity traders are deciding to jump on the crude oil market and invest in it while the price is so low.  Of course they are doing this on the presumption that the price will shoot back up when we finally see an end to COVID-19 related lockdowns.  

For any of the savings suggested in the above paragraph to actually make a real-world profit for anybody going forward,  the oil price has to rise up again.  History has shown us that as world issues pass over and economic activity resumes to normal levels, the demand again rises in line with this.  It is highly likely that this will happen in this instance too.  However there are still many unknowns.  Whether or not a cure or a vaccination for COVID-19 will be discovered, and how long it will take for them to arrive is not known.  Whether there will be a second wave of the virus is not known.  How long these lockdowns will be in place in their respective countries is not known.  There are many speculations from different so-called experts and spokespeople, all with differing thoughts and explanations.  The actual fact of the matter is that the world has never seen this virus before and ultimately nobody knows the final outcome.  Commodity futures traders may well be able to take advantage of the situation by buying rights to buy oil at future dates when it is anticipated that the price will have risen back to normal or even higher.  Since nobody can rightly state whether or when that will actually happen, it may be wiser to consider buying options instead of futures.

To discuss the current situation regarding the low oil prices, or indeed any other aspect of commodity trading during the COVID-19 impacted times, you can always called GWC INDIA.  They are leaders in low-price, high-value brokerage, and have a team of professional trainers and advisors who are best placed to provide you with relevant information to help you decide whether you would like to enter the commodity trading world at this rare and opportune time.  Similarly if you are already an active trader, they can help you decide what to do with your current stock in order to hedge against risk and preserve your account. +91 80122 78000 is the number you need to put your mind and your stocks in order.  GWC INDIA. The caring brokers.

Does the Monsoon Affect the Share Market in India?

A common question for investors in India is whether or not there is any impact of the monsoon on the stock market.  In this article we explore exactly how the monsoon rains do have an impact on the stock market, both negatively and positively, albeit not in a direct manner.

India is a nation that is largely agrarian.  That is to say that it is highly dependant on agriculture.  With around 55% of arable land being fed by rainwater, it is easy to understand why the monsoon is so very important for getting good yields from the farms.  It is the yield rate which will have an effect on the markets.

YIELDS OF CROPS DRIVE RURAL SPENDING

The primary income of rural Indians is from farming and farming related occupations.  When crop yields are good, rural income is boosted by crop sales.  This encourages farmers to make more purchases and invest.  It also means more disposable income in the rural areas, which benefits companies that carter for rural Indians.  A good monsoon therefore equals good yields and that equals good news for those companies who are listed on the stock market that sell to rural areas.  Their stocks receive a little boost.

POOR YIELDS DRIVE UP COMMODITY PRICES

In the opposite scenario, a poor monsoon leads to poor yields in the fields.  Shortages of crop-grown commodities leads to increased demand for those particular commodities.  This situation can be advantageous for certain commodity traders.  To be specific, those traders who anticipated a bad monsoon may have bought FUTURES in order to ensure that they can buy quantities of specific commodities at a predetermined price prior to the monsoon taking place.  They will then have full rights to purchase them at the agreed price, and then immediately sell them on for a profit at the current (inflated) market price once the harvest is over.  However, they will be in the minority.

 

EXTENT OF THE IMPACT

While there are many scientific bodies that study rainfall, analyse its trends, and predict its future, their predictions are not 100% accurate and can not be totally relied upon.  They may serve to be of more use for farmers to decide when and how much of particular crop they decide to sow.  The overall effects of the monsoon have shown to have only a small impact on the stock markets, especially when taken outside of commodities.  It may be surprising to you just how the share markets recover from monsoon effects.  When a poor monsoon season has passed there is no time to dwell, as life goes on and so does trading.  We also have to be clear that it is not the monsoon itself that has any bearing on the stock markets, but it is the YIELDS from the fields which decide whether it will be a good or a bad year.  In future as India’s infrastructure improves and develops, it is hoped that farmers will be less reliant on monsoon rains.  This can can be achieved by developing new and improving existing irrigation systems, rainwater harvesting and storing water for the future, and desalination plants which will provide cleaned sea water upon demand. 

If you would like to invest and are worried about the issue discussed in this article, you can contact GOODWILL INDIA who will be happy to converse with you and help you identify Key areas to invest in Stock Market simultaneously to avoid impact of monsoon, or at hedge against it.  GOODWILL INDIA, the broker with the extra-low charges, and the extra-high value.  www.gwcindia.in

To Become a great Trader, You must Avoid these 10 Mistakes

Starting out on a new road which is full of pitfalls and dead ends is never an easy task.  The same can be said of your first foray into trading on the stocks and shares markets.  Don’t make the mistake of stepping out blindly into the road.  Read GOODWILL INDIA’s helpful tips on how to become a good trader.  This article aims to give you some tips on what are some of the mistakes to avoid for trading.  The examples are based on identified common mistakes that are frequently made by inexperienced traders. 

INVESTING MORE THAN YOU CAN AFFORD

Always make sure you have enough reserve funds to live your life should something go horribly wrong with your investments.  Do not invest every single penny and leave yourself short of ready cash for day-to-day living.  Remember that investment always has an element of risk involved, so only invest what you can afford to lose.  

PLAN YOUR INVESTMENT

Do not randomly invest, but talk to a professional investment planner about your aspirations, time scale and situation.  Those with a robust plan in place almost always outperform chancers who scrabble around aimlessly, so draw up a plan and stick to it.

BE PATIENT AND HAVE CONFIDENCE

Short term gains sound very attractive but in reality they are very risky.  Be patient, and reduce the risk of loss.  At least until you are an experienced trader, try to stick to long term goals.  Don’t expect instant rises, and don’t get impatient and liquefy your stocks while they are climbing, however slowly.

DON’T BE OVER-CONFIDENT AND TAKE UNDUE RISKS

Similar to the above point, it is common that after a few good trades, inexperienced traders often tend to get overly confident.  The markets are dangerous and unpredictable places, so never assume that what worked once will work again.  If the markets were able to be anticipated and beaten consistently then they would not serve any purpose.

DO NOT FALL FOR ‘TRICKS’ TO GET RICH QUICK

As mentioned in the above point, there are no ‘tricks’ that can be relied upon.  If there were, then all traders would be rich and the markets would be broken.  Do not fall for such fake claims.

DO NOT TAKE LOANS IN ORDER TO INVEST

When you invest money, you should always be mindful that that money can be lost, even if there is only a very slim chance of that happening.  You should only ever invest money that you can afford to lose.  In fact when opening your trading account, a responsible broker should check that you are financially sound, and able to survive in the event of your trading account getting wiped out.  Only use your own money, and not that borrowed from third parties, as it will only end in disaster if the money is lost and you are left in a position where you are unable to repay loans.

PREDICTIONS ARE ONLY PREDICTIONS

You will find endless numbers of stock analysts, analytical software, and websites.  Always remember that these can only make predictions.  They can not give you any guarantees.  While it can be useful to take information from these sources, they can not be fully relied upon.  The end decision to buy or sell is always yours, and you are the only person to thank or to blame according to the outcome.

GET OUT QUICKLY

Don’t assume that plunging stocks will recover.  Get out when they start to drop.  As long as you sell for more than you bought, you are a winner.  Remember that if they start to climb, you can always buy them again.  Limiting your losses is one key skill that all traders need to learn.

HEDGE RISK BY CREATING A PORTFOLIO

You will surely have heard the phrase ‘don’t keep all your eggs in one basket’.  If that basket is dropped, you lose all your eggs.  Similarly in stocks and shares, you should diversify in as many areas as you can.  This will limit the loss if one particular investment crashes.

DON’T RELY ON PAST HISTORY

The world is a fast-changing place.  Year by year new companies rise up and established companies fail and die.  When deciding where to buy shares, don’t simply base your decisions on past glories of a company.  Read carefully into the company profile and their plans for the future to satisfy yourself whether or not each company has the framework in place to continue to succeed into the future.  Don’t bet on a lame horse, even if it was a former champion.

We hope you enjoyed reading about some of the common mistakes made by new traders, and that you are able to make use of the knowledge you have gained.  If you are thinking of beginning your investment career, you may be wondering which share brokers help you for good trading.  It is a good question, because very often brokers only exist to take your money and leave you to your own devices.  GOODWILL INDIA are different however.  GOODWILL INDIA care about the customer’s success, and take great efforts to help ensure you maximise your full potential.  With daily webinars addressing different aspects of trading, providing beneficial advice from professionals, trading tips sent directly by SMS, and friendly, knowledgeable customer service advisors, GOODWILL INDIA welcome you into their family.  For further information check out www.gwcindia.in or give them a call on +91 80122 78000.

How to become Share Trading Sub Broker in India?

ABOUT GOODWILL

GOODWILL is a well established, full-service broker of financial management services.  They are experts in commodity trading with MCX/ICEX/NSE/BSE, and capital market trading as registered trading member with NSE,BSE,MSE, and mutual funds registered intermediary with AMFI.  The benefits of trading with GOODWILL are manifold, thanks to their philosophy of providing utmost value to their customers, thereby gaining confidence and market share through trust and respect.  Benefits that GOODWILL customers can currently avail of include their exclusive mobile application that allows mobile trading and instant access to look at account stats and market data, unlimited call-and-trade service for people who like placing their orders over the phone, free opening of trading and demat accounts, free online training via webinars that provide valuable insights, tips, and skills to traders.  GOODWILL offer you the chance to work alongside them as a partnered sub-broker, in a mutually beneficial relationship, whereby profits are shared with you in exchange for your help in expanding the GOODWILL name into different areas of India.  As of 2020, GOODWILL’s services can be accessed at over 200 branches and sub-brokers which are mainly located in South India.  New sub-brokers are joining up all the time and helping to make GOODWILL’s name visible nationwide.

HOW DOES THE AGREEMENT WORK?

GOODWILL will provide you with back office support, a dedicated land-line, and a trading terminal including risk management software, MCX, BSE and NSE support.  You will get research advice and market updates regularly through phone, chat and email methods as well as personal training so you can learn everything you need to know about how to run a sub broker business.  Contract notes, and billing to the end clients will be handled by GOODWILL directly.  The provisos are that you should have a minimum of 2 years of experience in selling financial products and have a good reputation and track record in financial services or other business, and have a good client base.  Perhaps the sweetest part of the deal is that there will be no capital setup cost to you, the sub-broker.

FURTHER BENEFITS OF BEING A SUB BROKER

In addition to what has been mentioned in the previous section, there are further benefits to be availed by those people who are able to set up their own office space.  By becoming a GOODWILL authorised person, you will be entitled to GOODWILL business cards, a glow-sign skin, and other marketing leaflets.  You will have a relationship manager assigned to you personally who will communicate with you via phone, email and chat to service all your requests and keep you updated of all the latest news and developments. You will also get direct access to the centralised back office system via the online portal.

HOW TO JOIN AS SUB-BROKER IN GOODWILL

Applying to become a sub-broker with GOODWILL could not be any simpler.  All you need to do is go to https://gwcindia.in/Businesspartner and fill in the online form, after which one of the GOODWILL representatives will get in touch with you to talk about your situation and past record, and determine if you meet the requirements.  If you satisfy the criteria, they will guide you through the process of formalising the agreement.  Alternatively you can telephone them directly on +91 80122 78000

This is the Right Time to Open a Demat Trading Account Online and Buy New Shares in India?

FROM THE CRUELNESS OF CORONAVIRUS COMES UNLIKELY OPPORTUNITY

As we are all struggling to live our lives in these days of lockdown while COVID-19 (Coronavirus strain) is ripping across the earth, there is an unlikely opportunity that has come into being.  The onset of COVID-19 has set the stock markets crashing down.  Existing investors are quite rightly panicking as uncertainty is everywhere at the moment.  In India we do not even know if we are over the worst or whether the worse is yet to come.  As of the time of writing, the death toll of COVID-19 continues to rise day by day and there is no saying when this will end.  As investors witness the values of their stocks plummeting, many are frantically offloading them in attempts to limit the losses they are suffering.

THIS IS THE RIGHT TIME TO BUY NEW SHARES

Just as every cloud has a silver lining, some savvy people are already making the most of what is undoubtedly a very bad situation, not only for India, but for the entire world.  The opportunity that has arisen is for new investors to get into the world of trading and scoop up some of the best stocks at low, low prices that are rarely, if ever seen.  Opportunities like this come infrequently. “When it rains gold, put out the bucket, not the thimble” is a quote by the famous investor Warren Buffet, which applies perfectly to the current situation.  The meaning of the quote is that you should take advantage of an opportunity while the time is right rather than regretting it later.  You could just as easily compare it to eating fruit while it is ripe rather than delaying and regretting doing so when the fruit goes bad.

ARE WE AT ROCK BOTTOM, AND WILL THE MARKET RECOVER?

These questions can not be answered with one-hundred-percent certainty, but history has taught us that every time there has been a sudden crash of the market, for whatever reason, it has been overcome in the medium to long-term and the market has righted itself again.  As for whether we are at rock bottom or not is a matter that can only be speculated.  Nobody can ever be certain when a market has hit the bottom until it starts to rise again, by which time it may be too late to bag a bargain.  

OPEN A DEMAT TRADING ACCOUNT ONLINE

If you have been thinking for a while about getting into stock market trading but you have been putting off taking the plunge, this could be just the opportunity you need to give yourself a head start.  To being buying shares in companies you need to have a demat account.  You may think that opening a demat account is a costly expense, but actually if you go to the right places you can actually get your account opened absolutely free of charge.  GOODWILL INDIA are one such super-value broker that offer demat accounts at no cost.  Not only that, but they have a range of special features that their customers get for no additional cost.  Features such as a new mobile application that grants users the ability to check on their accounts and make trades on the move, daily webinars highlighting key points of knowledge that traders should be aware of in order to maximise their chances of success.  They have an unlimited ‘call-and-trade’ feature that allows customers to call the hotline and place their orders over the phone.  Their customer service phone lines are open long hours.  The customer service representatives are friendly, knowledgeable and professional.  They are well placed to answer all your queries and put your doubts to rest.  They are happy to discuss your requirements and expectations.  They aim to provide you with as much information as possible to allow you to make informed decisions about where you wish to invest your hard earned money.  You may wish to discuss with them before deciding which category of shares is best to buy during this COVID-19 impact time.  GOODWILL INDIA are a company of helping hands who put in the extra effort to make sure that the customers they serve feel as comfortable as possible, and do not feel lost and alone when entering the strange new world of trading for the first time.  By all means you should investigate a number of different brokers before deciding which one you would like to work with, but make sure GOODWILL INDIA are on your list.  Call them today on +91 80122 78000.  You will not regret it.