Download Free 16 Stock Market eBooks!

Here are some free stock market eBooks that I have collected over the time. You can download them for free on this page. This will provide you with tons of reading material for months to come!

1. Killer Patterns
This eBook shows how to use the MACD histograms to generate trading buy and sell signals.
Download Killer Patterns

2. Options Trading 101
This 101 page eBook shows the basics of trading options.
Download Introduction to Trading Option

3. Introduction to Forex
This eBook explains what the Forex market is all about an how to get started trading it.
Download Introduction to Fore

4. The Trader Business Plan
In this eBook, Christopher Terry explains how to put together a trading plan including methodologies, goal setting, and record keeping.
Download The Trader Business Plan

5. Independent Investor Ebook
This is five ground breaking reports EWI has ever published in the 27 year history of Elliott Wave International compiled into one 75-page eBook.
Download The Independent Investor Ebook

6. Charting Made Easy
This is a great primer for new traders. This eBook covers all forms of technical analysis including support/resistance, trend lines, and chart patterns.
Download Charting Made Easy

7. The Truth About Fibonacci Trading
Want to learn more about Fibonacci? Here, Bill Poulos takes you step by step into the world of Fibonacci including retracements and extensions.
Download The Truth About Fibonacci

8. The eBook of Technical Market Indicators
This eBook contains a wealth of information on market indicators including advance/decline indicators, short sale statistics, and sentiment
Download The E-book of Technical Market Indicators

9. A Practical Guide To Swing Trading
Larry Swing teaches you all about swing trading in this eBook. In it you will learn about candlesticks, trends, moving averages and much more.
Download A Practical Guide to Swing Trading

10. Secrets of Millionaire Traders
This covers 25 secrets that were collected from interviews with millionaire traders. There is some great wisdom contained in this eBook.
Download Secrets of Millionaire Traders

11. Day Trading Mind
This eBook offers some great tips to stay focused on your trading. Mainly for day traders.
Download Day Trading Mind

12. Pattern Cycles
Here Alan Farley talks about bottom reversals, breakouts, trends, and even Elliott Wave theory.
Download Pattern Cycles

13. Swing Trading Using Candlestick Charting
In this eBook, John Person explains candlestick charting and pivot point analysis.
Download Swing Trading Using Candlestick Charting

14. Keys To Top Trading Profits
18 trading champions share their keys to trading profits. Includes interviews with George Lane (stochastics), Larry Williams, and Linda Bradford Raschke.
Download Keys To Top Trading Profits

15. Three Swing Trading Examples
Alan Farley shows three swing trading examples with charts, instructions, and definitions to get you started.
Download Three Swing Trading Examples

16. 7 Habits Of A Highly Successful Traders
Here Mark Crisp discusses the seven habits that successful traders have.
Download 7 Habits

Well, that should keep you busy for awhile...

Parag Parikh – Why most Investors shun Value Investing ?

Why is Value Investing boring ? Why do investors shun value stocks. Why do fund managers swear by value investing but are not able to walk the talk? It really requires a lot of courage and discipline to follow value investing.

One of the main reasons investors shy away from value investing is that the stocks they consider have poor stories. The companies that show up on the screen can be scary and not doing well, so people find them difficult to buy. The depressed prices instead of attracting investors make them repel..

What attracts investors about companies?
 Companies that have done well in the past in both stock market and financial performance and those that have exciting stories. Remember the tech boom, the story: advent of a new economy or the infrastructure boom: building India, or the power sector boom: Powering India. 2006/2007 were known for their highly valued most admired real estate, infrastructure and power stocks. Thus the most admired stocks have great stories and high prices attached to them, whereas the despised stocks have terrible stories and sport low valuations. These compelling stories make them market fancies and they start commanding fancy prices. Over time when the fancy ends investors are left with fancy losses.

Psychologically investors tend to be attracted to the admired stocks. Yet the despised stocks are far better investment. They significantly out perform the market as well as the admired stocks. Investors find a stock less risky when everyone is buying and the prices are going up. They find it more risky when no one is buying and the prices are going down. This is how investor psychology works. It requires a lot of courage and discipline for one to go against the popular trend.

At the other end of the spectrum from value stocks we have another group of stocks that have different stories attached to them. I am talking about Initial Public Offerings (IPO’s), companies that have come to the market for the first time to offer their stocks to the public. Such stocks have great stories attached to them and are able to sell such stocks at high premiums. One recent example that captured investor’s imagination was the IPO of Reliance Power in the fancy power sector. The stock had a great story: Powering India. Everyone was exceedingly excited about the growth prospects of this company that they paid a hefty premium and the issue was heavily oversubscribed to be called the mother of all IPO’s. Investors overpaid for the stock and there was no margin of safety. On listing the prices crashed. The euphoria of the story was over as the earnings dropped over time.

Want to know which are the hot stories in the market? Read the newspapers and see the advertisements of companies coming out with IPO’s, and new mutual fund scheme launches. That is what is hot in the markets.

Investing is for making your money grow. It is not for excitement. Value investing may sound boring but that is the only way you grow your wealth in stock markets. PPFAS Long Term Value Fund follows the Value Investing principles.

Source

What is Muhurat Trading?

Muhurat means ‘an auspicious hour’. This is a century old tradition. Previously the family members of stockbrokers join the prayers held in the broker’s office. The first token order, that is usually a ‘buy’.

Gujarati and Marwari dominates the Indian Stock Market. Their new financial year begins on Diwali. Old account books are closed and new ones are opened as the new year begins. In their calendar, it’s called Samvat  (Samvat means ‘era’).

A coin – which signifies wealth in Hinduism (well, it’s wealth anyway ha!) – is placed on the account books before the Puja. Stock brokers perform ‘Lakshmi Puja’ at the exchange and the customary Muhurat trading takes place. It’s like putting a dematerialized coin. Most of them place token orders and buy stocks for their children, which are held for the long term and sometimes never sold. Though most retail traders book small profits and the Sensex ends up on a positive note. So, it always has bullish nature! If it ends in bearish note; you may consider a longer down trend.

Low cost stock that can give 200 percent return in 2017

Only Hidden gems can give 200 percent returns (Triple its value.)

The important factor is through a period of 1 year, is it possible to find a sector that performs well in all 4 quarters and a stock within that can post market beating results in its all quarterly results?

I can help you identify stocks that can double within 4 months (Quarter to Quarter).

Stocks like Kwality, Prabhat dairy, Star Paper, Gujrat Alkali, Fortune Finserve, Camlin Fine, Motilal Oswal, Infibeam, Quess corp, Adlabs, Royal Orchid, Petronet LNG, Premco global, Capital First, Mahanagar Gas, Dishman Pharma, Sarda Energy, MOIL, Orrisa Minerals, Sandur Manganese, Thirumalai Chemicals, Sadbhav Engineering, Kesoram, GNFC, UCAL fuel, Asahi India, Asahi Songwa, South Indian Bank were my picks last Quarter.

The stocks have given 20–60% returns.

I have termed the current phase as volatile.

So, I am waiting for the market to consolidate after demonetization and mean while i am identifying the sectors that can really perform in 2017.

I would buy into Chemical, Non-ferrous, Oil and Gas, Engineering and Power sector.

So my picks for 2017 are

1. Sadbhav Engineering
2. Camlin Fine
3. Thirumalai Chemicals
4. Mahanagar Gas and Petronet LNG
5. Gujrat Alkali
6. Sandur Manganese
7. Orissa Minerals
8. Quess Corp
9. West Coast Paper, TNPL and Star Paper
10. PNB and BoB
11. NTPC and Powergrid
12. PFC and REC

I hold some of these stock and will accumulate most of them in the future too.

Source: Vinoth Kanna  on Quora.com 

4 Financial Trends we can look forward to in 2017

2017 has descended upon us and early birds are already scouting for the next big thing. Investors are searching for opportunities and journalists are hunting for stories. Keeping merits and demerits of demonetization apart, 2016 can be seen as a watershed year. As demonetization took us by surprise during the second last month of 2016, large parts of India started adopting digital modes of payment in a big way. It forced many Indians who never even had a simple savings account to start using debit cards. 

This also created huge ripples in the fintech sector. Apart from the usual suspects such as digital wallets and payment gateways getting a huge fillip almost overnight, other areas that were galloping along suddenly seemed poised to achieve a hockey stick growth.

Let us look at some of these upcoming trends which can both be impacted as well as create impact in 2017:

Robo Advisory: 

Did you know that there are 39 robo advisory firms in India? Although none of these companies have a robot managing your financial portfolio, the process of offering financial advice is getting automated. Larger financial groups will also be getting into this sector. For instance, read about my review of Edelweiss's GPS platform. By posing pertinent questions, it makes the entire experience of investing easy and straightforward for a lay investor. 

Bitcoin and Blockchain:

Bitcoin is a new type of digital currency as well as a payment system. As of today, 1 bitcoin equals Rs 69,349.42 Yes, you read that right! Bitcoins have been around for almost 8 years now. I remember a friend who had mined 10 bitcoins in 2011 when it was worth Dollar 1. (Around Rs 57). Since then it has only grown in value.  Bitcoin is also a volatile currency. According to Mark Thomas Williams, bitcoin is seven times more volatile than gold and eighteen times more volatile than the US dollar.

Blockchain is nothing but a public ledger of all the boticoin transactions that have been executed. When demonetization was annnounced it had a huge impact on fledgling bitcoin startups in India.I sure hope my friend hasn't sold off the entire lot! :)

Peer to Peer Lending:

Need a loan or an investment? Neither Banks nor NBFCs nor even your private money lender lending you any money? Shy to ask family or friends? P2P lending is the answer. 

P2P lending connects individuals who are interested in lending directly to those who need the moolah. Presently this sector is highly risky and unregulated. Interestingly RBI released a whitepaper on this nascent industry and proposed to categorize P2P platforms as a type of NBFCs. There are around 30 P2P platforms in the country including Lendbox, Lendenclub, Faircent and i2iFunding.

Electronic/Algorithmic Trading:

Accuracy, Speed, Reduction in costs and Elimination of 'Emotions' are the four advantages of Algorithmic trading. Several traders get highly emotional during trading hours and then rue their decisions. In the US, 90% of trading takes place through algorithms. In India, this number is 2%.

Lack of clarity and consensus amongst market participants including regulators about what exactly can be classified as algorithmic trading is the biggest roadblock.

So what are you betting your money on?

Stock trading strategies in Indian Market for Beginner

Let me share the two trading strategies that I have already shared in another question.

Here's one of the best and simple intraday strategy you can try.

Opening Range Breakout (ORB) is a commonly used trading system by professional and amateur traders alike and has the potential to deliver high accuracy if done with optimal usage of indicators, strict rules and good assessment of overall market mood. This system is applicable only for intraday trading.

ORB trading has several variations practiced by traders all over the globe. Some traders trade on a significant breakout from opening range, while others trade immediately on opening range breakout. Time window for the trades also varies from 30 minutes to 3 hours.

Over a period of time observing and trading Indian markets, I have devised with the below system suiting our markets. Below method is both a scalping and a trending system combined into one, hence it is possible to take the advantage of quick moves and trending markets with multiple lots of trades.

Trading Strategy

Quite Simple and straightforward. Rules in the next section needs to be adhered to increase the success rates dramatically.
Any stock creates a range in the first 30 minutes of trading in a day. This is calling Opening Range. The highs and lows of this timeframe is taken as support and resistance.

1. Buy when the stock moves above the Opening Range high.
2. Sell when the stock moves below the Opening Range low.

PLEASE NOTE THAT THE ABOVE SYSTEM IS GENERIC, THE RULES BELOW WILL MAKE IT A SPECIFIC SYSTEM. IF YOU ARE FOLLOWING THIS SYSTEM, PLEASE FOLLOW ALL THE RULES FOR BUY / SELL STRICTLY.

General Rules – Applicable for both Buy and Sell:

Opening range is defined by the high and low made in the first 30 minutes.

5 min chart with 5 EMA and 20 EMA used for making trading decisions.

Entry should be made only on close of the 5 min candle outside the opening range.

20 EMA is one of the key technical indicators used in this system for trend trading. Stop loss is always kept at 20 EMA for riding the profits.

Volume confirmation – Breakout candle should show increase in volume.

Optional confirmation- One of the two indicators - MACD or Stochastics should be favorable for the trade. (We have four indicators in Simplified Technical Analysis - Moving Averages, RSI, MACD, Stochastics. The idea here is at least two indicators should confirm the trade.).

This is purely optional condition to enter trade.

• Respect support and resistance levels. Do not buy just below a resistance or sell just above a support.
• Always trade with 2 lots and book 50% as soon as you see few points profit. Second lot will be used for taking advantage of days trend.

Rules for Buy

• Stock should be trading above the 20 EMA line before the breakout.
• Buy when the 5 minutes candle closes above the opening range.
• 5 EMA line should be above the opening range at the time of breakout.

Where to keep Stoploss

Initial Stoploss – Low of the Opening Range.
Trailing Stoploss - As the stock moves in your direction and you are in profits, book 50% , trail the stoploss at 20 EMA. A close of 5 min candle below 20 EMA confirms exit.

When to book full profits

When the 5 min candle closes below the 20 EMA in the case of longs.

Rules for Sell

• Stock should be trading below the 20 EMA line before the breakdown.
• Sell when the 5 minute candle closes below the opening range.
• 5 EMA line should be below the opening range at the time of breakout

Where to keep Stoploss
Initial Stoploss – High of the Opening Range.
Trailing Stoploss - As the stock moves in your direction and you are in profits, book 50% , trail the stoploss at 20 EMA. A close of 5 min candle above 20 EMA confirms exit.

When to book full profits

When the 5 min candle closes above the 20 EMA.
High Probability Trade Setups

Below additional conditions will give high probability of success:

• The Opening Range breakout is above previous day’s high for buy.
• The Opening Range breakout is below previous day’s low for sell.
• Trade is in the direction of higher time frame charts (15 min /30 min).
• Overall Market is moving in the direction of the trade.
• Opening range breakout happens after brief period of consolidation.

Important Additional Points

• If the opening range is too wide, better do not trade ORB, since the SLs will be very far in our system. You can use other trading systems in such a case.
• Avoid Opening Range Breakout trades in case of a heavy news flow day. ( Like Inflation, Manufacturing, Policy decisions etc.). Use other trading systems once the market settles down after the news.

Even if the above rules looks bit complicated to you, then follow just one simple rule.

Mark the High-low range for 1st 15 mins,

1. Go Long if High range is broken, with stop loss as low range.
2. Go Short if low range is broken, with stop loss as high range.

Long Example:

LT Stock price - 1st 15 mins range is marked below. The stock has given a breakout by moving above the high range. Hence we go long at that level and exit the stock at the end of the day with profit.

MARUTI - Short trade example. The stock has given a breakdown by going below the 1st 15 mins range low. So we make short trade here and make profit.

Here’s another strategy:

There are many positional trading strategies available publicly to trade on any kind of markets. One such strategy is NR7. The profit really comes from the strategy that you are most comfortable to trade with.

Trading using NR7 Method:

Market goes through regular contraction (i.e. daily trading range getting shorter and shorter) and expansion (i.e. daily trading range getting bigger) cycle. Expanding range is followed by Contraction and vice-versa. So if we can indetify the narrow range days, then it give us a step ahead of everybody to benefit from coming expansion.

NR7 is term given to a day that has the daily range smallest of last 7 days including that day.

How to Find NR7 day..

1) Get the High and Low data of last few period
2) Calculate the range of each day i.e. high - low) for each day
3) Compare the range of a today and previous 6 days range (to get NR7. To get NR4 get last 3 days range)
4) If today's range is smallest of all 7 days, then today is NR7 day..else not.

It is that simple.

This is one of my favorite setup. It gives u a chance to be ahead of trade follower / indicator followers who will jump in the trend after you.

One of the easiest way to trade this setup will be to go long above the Day's high ofNR7 day with stop at the Day's Low of NR7 day.
Or Go short below the Day's Low of NR7 day with stop at the Day's High of NR7 day.

Observing this pattern gives day trader /swing trader a distinct edge to trade next 1 or 2 days. In many cases, NR7 break-out is found near the start of a new wave. For day trader, this setup indicates that they can anticipate wide range days, so they should be prepared to chase the trend and use trailing stops so that they can get maximum from
the coming trend.

Examples:

On 02/09/2014, Auropharma had the lowest range day in last 7 days. i.e NR7 day. on 2nd, the high price was 818.3 and low price was 805.25
On next day, if the stock hits the high of 818.3, we will go long with stop loss of that day's low which is 805.25.

You can see that stock was moved out of contraction phase and started trending from 800 to 900 within few days.

On 24/6/14, Tech Mahindra had the NR7 day with high of 2007 and low of 1987.15, next day if the stock hits 2007 we go long with 1987.5 as stop loss. The stock zoomed in next 3 days to Rs. 2135

This method works well with many stocks.

Being Employed Is a Fulfilment

Hello there! Yes, I know, I am on blog vacation. I have a burning curiosity about a question and I happened to have some time to write now.

If you meet ALL these criteria :

1. Employed staff (exclude self employed); &
2. Would continue with your current job without being paid or paid only 50% of your current salary

Yes, this post is for you!

May I find out why do you enjoy being employed after taking away your salary from the equation?

These are some of the reasons I dislike working life, honestly:

1. KPIs;
2. Having to follow boss instructions regardless of you being agreed or not;
3. How to do your work in the way they want;
4. When to do your work and by when for submission;
5. Who to manage and sack, if applicable;
6. Which days to work in a week;
7. What time you have to report to work and end your work day;
8. Taking away time from your family, hobbies and running errands;
9. How many annual leave you have in a year;
10. Outsourcing big chunk of your short life (say 80 years) to your company by allowing them to tell you how to live your life;
11. And the list continues...

Would greatly appreciate if you can enlighten me why you love your job so much that you no need to be paid to follow the above conditions?

If the reason you work is purely because of money, then how much do you want? How do you balance between your time spent for yourself and time spent to earn money for your wants? Say from 25 years old till 65 years old where you got most energy and maturity, how many years of these 40 years will you spent earning for extra wants and how many years will you spent designing and living your own life for yourself?

Feel free to give your opinion but I urge everyone to maintain respect for each other. It is a discussion and please do not take it personal. No individual should be quoted or mentioned. Thanks.