THE ART OF TRADING IN STOCK MARKETS..!!

THE ART OF TRADING IN STOCK MARKETS

 IN EVERY ASPECT OF LIFE, THERE IS SOME ART PART AND SOME SCIENCE PART THAT EXISTS IN OUR UNIVERSE. THE STOCK MARKETS ARE NO DIFFERENT FROM THIS. THE ART OF TRADING IS GENERALLY LESS DISCUSSED AS WE TEND TO FOCUS ON THE SCIENCE PART HEAVILY BY ANALYZING TECHNICAL CHARTS AND OTHER MOMENTUM INDICATORS. DESPITE OF THROUGH UNDERSTANDING & COMMAND OVER THE CHARTS, OTHER TECHNICALS LIKE ELLIOT WAVE, DOW THEORY AND FABINOCCI NUMBERS ETC., STILL TRADERS TEND MISS THE SUCCESS DUE TO LACK OF "THE ART OF TRADING" QUALITIES!. THE ART OF TRADING IS BASICALLY FOCUSES ON THE PSYCHOLOGICAL ASPECTS OF TRADERS/INVESTORS MIND SET.

NOVICE MEMBERS,NEW TO MARKETS FLOCK AROUND WITH A PRE-CONCEIVED NOTIONS, THINK AN EASY OPERATION LIKE SIMPLE “BUYING& SELLING” TO EARN MONEY FROM THE MARKETS. MANY PARTICIPANTS WITH HARD CORE REAL EXPERIENCE MAY DIFFER WITH THESE PRESUMPTIONS. THE ATTRACTION AND EXCITEMENT STORED IN THE POSITION HOLDING DURING THE DAY/COUPLE OF DAYS, ALLOWS MANY TO TAKE PART IN MARKETS, LATER NOTICE THEIR INABILITY TO MAKE MONEY. THE SEASONED PEOPLE WHO RECOGNIZED THESE FAILURES, AND THOSE WHO ARE ADAPTABLE TO CHANGE TEND TO GAIN BY NOT COMMITTING THE AGEOLD MISTAKES!.

THE STOCK MARKET BUSINESS BASIC PRINCIPLES BASED ON WHO OPENS "THE SHOP”,WHO COMMANDS WHOM IS WHAT MATTERS ULTIMATELY.THE OPERATORS OR THE MARKET MAKERS/WELL INFORMED PEOPLE/INSTITUTIONS TEND TO CREATE A SITUATION WHERE BY THE SMALL/RETAIL INVESTOR, TRADERS/POSITIONAL TRADERS GET TRAPPED. THE STOCK MARKET OPERATIONS EXIST ON THE VERY BASIC PRINCIPLES OF “ENTICE & ENCASH- EACH TIME AND EVERY TIME”.

EVERY DAY, MARKETS ACROSS THE GLOBE, "OPEN & CLOSE" AT PARTICULAR TIME AS SCHEDULED AND ARE BEING REGULATED BY THEIR AUTHORITIES. THE UNDERLING SECRET IS WHO MAKES THE OPENING RATES AT A PRICE HIGHER OR LOWER THAN THEIR EARLIER CLOSING PRICES, “DEFINITELY NOT THE RETAIL INVESTORS” FOR SURE. HERE THE CATCH, THE WELL INFORMED/MARKET MAKER WITH HUGE STOCK AND CASH AT DISPOSAL “OPENS THE SHOP”. THEN ONE CAN RECOGNIZE WHO IS THE CUSTOMER AND WHO IS THE OWNER. IN THIS PRINCIPLE, NOW IT IS ANYBODY’S GUESS THAT WHO RULES & MAKE PROFITS.

THEN, HOW TO GET SUCCESS AND PROFITS?!, THE RULE IS-BECOME “THE SHOP-OWNER”, SIMPLY "THINK LIKE AN OPERATOR & OPERATE LIKE OPERATOR". THOUGH IT LOOKS SURPRISINGLY FUNNY BUT THE VERY FACT IS THAT THERE IS NO OPTION BUT TO JOIN THEM.

IN PRINCIPLE, EVERY BUYER, IS AN INVESTOR, HAS THE RIGHT TO BE CALLED AS OWNER OF THE STOCK, THEN WHY INVESTORS SELL FOR A LOSS?, BECAUSE HE OR SHE “TRADES”. IN FACT, THE LOSING TRADES ARE EITHER ASSOCIATED WITH FEAR OF LOSS OR VENGEANCE. MOST OF THE TIMES, TRADING IS ALSO DONE BY THESE TRADERS ON ADVICE OR TIPS OFFERED/PROVIDED,TAKE HUGE POSITIONS WITHOUT PROPER STUDY/INSUFFICIENT STUDY, BOOK LOSS FOR WANT OF MONEY OR FEAR OF FURTHER LOSS, THEN CURSE THEIR FATE RATHER THAN THEIR "IGNORANCE OF OPERATION".

THE LOSERS SELDOM FIND TIME TO REALIZE THE VERY FACT THAT THEY ARE BETTING ON SOMEBODY'S ADVICE AND DREAMING OF SUCCESS NOT ON THEIR MERITS BUT ON RELYING/DEPENDENCY. STOCK TRADING IS DEFINITELY AN ART TO GRAB THE AVAILABLE OPPORTUNITY IN A PARTICULAR STOCK/INDEX, GAIN FROM THE POSITIONS. UNLESS THE TRADERS UNDERSTAND THE GAME PLAN BEHIND THE SCENES, IT IS VERY DIFFICULT TO MAKE MONEY FROM DAY-TRADING/SWING TRADE.

SO, DEVELOPED CERTAIN PRINCIPLES WITH MY EXPERIENCE- AAA (TRIPLE “A”) AND UJWAL-DEEP.

THESE PRINCIPLES ENHANCES THE SUCCESS RATE FOR SURE…. WILL DISCUSS SOONER…!!!

NSEL-SCAM-modified client codes CHANGED 300,000 times,!!

Three leading brokers arrested in NSEL scam

Amit Rathi of Anand Rathi, Chintan Modi of IIFL and C P Krishnan of Geojit Comitrade have been taken into custody for mis-selling NSEL products as investment vehicles

BS Reporter  |  Mumbai  

March 3, 2015 Last Updated at 15:41 IST

At least three leading brokers were arrested on Tuesday for their alleged involvement in the scam surrounding the National Spot Exchange Ltd. 

Amit Rathi of Anand Rathi Commodities Ltd, CP Krishnan ofGeofin Comtrade and Chintan Modi of India Infoline Commodities were taken into custody for their involvement in the NSEL scam that led to the collapse of the company.

They have reportedly been charged under sections 409, 465, 467, 468, 471, 474, 477 and 120 B of the Indian Penal Code, and sections 3 and 4 of the Maharashtra Protection of Interest of Depositors in Financial Establishments (MPID) Act. These charges include cheating, criminal conspiracy, forgery of documents and inducement for cheating.

The Economic Offences Wing of Mumbai Police had been investigating the roles of brokers in the scam for some time now. Executives at Anand Rathi, Motilal Oswal, Geofin Comtrade and IIFL had already been questioned by the EOW. 

According to NSEL data, brokers seemed to have been gaming the system; there were indications that they modified client codes as many as 300,000 times, which is very unusual. Client codes are changed after the deal on the exchange is done in one name and then transferred in another name and allowed only for bona fide mistakes.

In equities and commodities, changes in client codes are allowed only in a genuine case. In commodities, change in client code was done to transfer profit and loss to launder money, which was stopped.
 

“Brokers of the exchange had in the beginning of the day transacted deals in their own names or in names of one or two clients and later internally transferred to various other names by modifying client codes,” a source told Business Standard last month. Unlike regular exchanges, where trading happens through the day, the bulk of trades at NSEL took place in the early hours of trading. 

Brokers are alleged to have sold NSEL products as investment vehicles. Around 200 brokers are alleged to have mis-sold NSEL products by promising an assured return to investors. In past, even NSEL Investors have also wrote to EOW demanding investigating the role of brokers since they were the point of contact for investors and had assured the latter of returns.

The police had earlier said these brokers were first carrying out deals on their account and later, parting ways with investors to earn huge margins.

In November last year, Jignesh Shah, founder of Financial Technologies (FTIL) stepped down from his positions of managing director and CEO; FTIl was the lead promoter group of NSEL, with a 99.9% stake. Shah had been earlier arrested May 2014 for his role in the Rs 5,000 crore scame at NSEL, but was granted bail in August. 

http://www.business-standard.com/article/companies/three-leading-brokers-arrested-in-nsel-scam-115030300619_1.html

STUDY Budget Impact.. !!!

Budget Impact: Emphasis on tax compliance, GST rollout; pet projects get their dues

It remains to be seen how initiatives for curbing black money, Make in India and GST deliver, says a PwC analysis

1. Business Standard |
 
2. March 2, 2015 Last Updated at 00:37 IST

INDIRECT TAXES
The most anticipated budget of the new government is finally here. The Finance Minister, Mr Arun Jaitleypresented the budget in an unconventional format, laying emphasis on the key projects of the Government and the various challenges it faces in meeting these initiatives.

Read our full coverage on Union Budget


The Government laid out its tax initiates into the following five themes:

• Measures to curb black money;
• 'Make in India' by promotion of domestic manufacturing and job creation;
• Minimum government and maximum governance to improve the ease of doing business;
• Benefits to middle class taxpayers; and
• Improving public health through Swachh Bharat initiatives and stand alone proposals to maximise benefits to the economy.

As part of its first steps towards achieving this, some of the key indirect tax proposals made by the Finance Minister are highlighted below:

GST
The Finance Minister reiterated the Government's intention to introduce and implement the Goods and Service Tax by April 1, 2016.

The FM has clarified that GST will put in place a state-of-the-art indirect tax system.

It would be important to note that the FM has tabled the Constitution Amendment Bill for introduction of GST in the Lok Sabha in December 2014 and is pending before the Parliament. The Constitution Amendment Bill is to be passed with two-thirds majority in the Parliament and also ratified by more than half of the States by their assemblies. Apart from this, the GST Bills would need to be passed by the Centre and all States before GST can be introduced in the country.

The passage of the Constitution Amendment Bill in the current Budget session of the Parliament shall be a true test to determine if the Government shall be able to walk the talk on the GST deadline.

TAX RATES

• The rate of service tax has increased from 12.36% to 14%. Education cess and secondary and higher education cess is withdrawn. The revised rate of service tax shall be effective from a date to be notified after the Bill is passed and shall not apply immediately.
• The FM has proposed to impose a Swachh Bharat cess on all taxable services at the rate of 2% on the value of such services for Swachh Bharat initiatives. The cess shall also be applicable from a date to be notified and would lead to the service tax rate going up to 16%.
• The rate of central excise duty is increased from 12.36% to 12.50% by subsuming education cess and secondary and higher education cess.
• Education cess and secondary and higher education cess shall however continue to apply on customs duty.
• Albeit no change is proposed in rate of Basic Customs Duty ("BCD"), the effective rate of customs duty has increased from 28.85% to 29.44% from March 1, 2015, on account of increase in excise duty to 12.50%.

CENVAT CREDIT
Steps have been taken for simplification and rationalisation of the CENVAT credit regime:

• Time limit for availment of CENVAT credit on input and input services has been increased from 6 months to 1 year from the date of invoice to bring much need relief to industry.
• Manufacturers can now avail credit of duty paid on inputs even if such inputs are directly received in the premises of the job worker. The CENVAT credit on such inputs availed by the manufacturer would not be affected even if the inputs are subsequently sent to another job worker.
• Time limit for return of capital goods to a manufacturer from a job worker has been increased from the present 6 months to 2 years.
• CENVAT credit of service tax paid under partial reverse charge mechanism can be taken even on payment of service tax even when service value not paid.
• CENVAT credit not available for inputs and input services used in manufacture of non-excisable goods on proportionate amount.

MEASURES FOR COMPLIANCE ENHANCEMENT
Penalty provisions are rationalised to encourage compliance and early dispute resolution:
The penalty shall be reduced on prompt payments of disputed amount with interest upon conclusion of proceedings. The penalty amounts shall be dependent on whether the matter involves fraud, collusion, mis-statement, etc or not.

Registration process under central excise and service tax has been rationalised:
To promote ease of doing business in India, the FM has proposed rationalisation in the process of registration under central excise and service tax.

Electronic maintenance of excise records and digitally signed invoices:
Assesses have been allowed to issue digitally signed invoices and maintain books in electronic format.

Advance Ruling
Amendments have been made to Advance Ruling provisions to provide for domestic partnership firms and limited liability partnership firms.

SCOPE OF NEGATIVE LIST/ EXEMPTIONS PRUNED
In its move towards GST and to continue from where the FM left last year, the list of service tax exemptions has been reduced. Accordingly, the following exemptions stand withdrawn:

(a) Service tax is now leviable on admission to an amusement facility. Hence, entry to places where fun or recreation is provided by means of rides, gaming devices or bowling alleys in amusement parks, amusement arcades, water parks, theme parks or such other places shall now be liable to service tax.
(b) Further, entry to entertainment events or a musical performance, pageants, award functions shall now be liable to service tax if the consideration for admission fee is in excess of Rs 500 per person.
(c) Processing of alcohol for human consumption is now brought under the levy of service tax.
(d) Service tax has been proposed on all services provided by a Government Authority to business entities.
(e) Similarly, the following exemptions provided in the past are proposed to be withdrawn:

• Services provided by mutual fund agent to a mutual fund or assets management company,
• Distributor of mutual funds to a mutual fund or AMC,
• Selling or marketing agent of lottery ticket to a distributor.

SERVICE TAX RELATED CHANGES

• Value of service as per section 67 of the Finance Act expanded to specifically include reimbursable expenditure or cost incurred and charged by the service provider to the service provider - The Delhi High Court ruling in the case of Inter-continental Consultants has been invalidated
• Service tax applicable for aggregator of services provided by e-commerce companies like Uber, etc
• Service tax on reverse charge basis payable on 100% of manpower and security services in specific cases

IT, TELECOM & ELECTRONICS SECTOR
In an evident push for "Make in India" manufacturers of IT, telecom and electronics sector shall benefit from the following key proposals:

(a) Manufacturer of tablet computers shall benefit as BCD, excise duty and additional duty of customs on parts, components and accessories used in the manufacture of tablet computers are exempted. Further, excise duty of 2% without CENVAT credit and 12.5% with CENVAT credit shall be levied on tablet computer.
(b) Excise duty on manufacture of mobile handsets including cellular phone with CENVAT credit is increased to 12.50%.
(c) BCD is exempted on High Density Polyethylene (HDPE) for manufacture of telecommunication grade optical fibres or optical fibre cables.
(d) BCD is reduced from 10% to NIL for some categories of digital video cameras and BCD is reduced from 5% to NIL on parts and components for use in the manufacture of these categories of cameras
(e) Special Additional Duty (SAD) is exempted on many goods (except populated PCBs) for use in the manufacture of information technology goods such as computers, laptops, printers, monitors, projectors, etc.

POWER SECTOR
The power sector shall see the following key duty rate changes:

(a) BCD on AEC for use in manufacturing of Renewable Power System reduced to 5%.
(b) Excise duty on pig iron SG grade and ferro-silicon-magnesium for use in the manufacture of cast components of wind operated electricity generators reduced to NIL.
(c) Clean Energy Cess on coal, lignite and peat, is increased from Rs 100 per tonne to Rs 200 per tonne.

OTHER INDUSTRIES

• To encourage domestic manufacture of commercial vehicles, BCD has increased on import of buses and trucks used for commercial purposes from 10% to 40%
• In line with the objective of resolving the problem of inverted duty structure, BCD has been reduced on the following products:

*  Sulphuric acid for use in fertilisers
*  Anthraquinone for use in hydrogen peroxide, etc.

• Full exemption from excise duty to all goods which are consumed within the factory of their production in the manufacture of Agarbatti

CONSUMER GOODS
The consumer goods sector shall be impacted on account of increase in duties and taxes as follows:

a) Excise duty of 2% without CENVAT credit and 6% with CENVAT credit is being levied on condensed milk put up in unit containers
b) As is the usual trend from the previous budgets, there has been an increase in the excise duty on cigarettes by up to 25%.
c) Similarly, products like cigars, cheroots, pan masala, unmanufactured tobacco, gutkha and chewing tobacco etc have also suffered increased excise duty levies.
d) Excise duty on mineral water and aerated water has increased from 12% to 18%.
e) Excise Duty on leather footwear of Retail Sale Price exceeding Rs 1,000 per pair is reduced from 12% to 6%.

The most awaited tax reform for the country, in the form of GST, is keenly awaited by the country. The rate of service tax moving upwards is a sign of the government's intention to introduce GST.

We hope the FM shall be able to deliver on his initiatives for curbing black money, encouraging make in India and introduction of GST by April 1, 2016.
http://www.business-standard.com/budget/article/emphasis-on-tax-compliance-gst-rollout-pet-projects-get-their-dues-115030100850_1.html

BUDGET-.ANTI-POOR-PRO-CORPORATE...ALLOCATIONS.!!!

9 charts that ask whether it really is a pro-poor budget

Sunday, 1 March 2015 - 11:19am IST | Place: Mumbai | 

Agency: dna webdesk

Shubhashish

• 
  

Aruna Roy and Nikhil Dey slammed the goverment for presenting a budget that is anti-poor. They said, "There are a lot of cuts in social sectors in this budget."

• Representational image File Photo dna Research & Archives

Arun Jaitley might have announced a budget that largely had Narendra Modi's stamp all over it. Also, the Budget might have pleased the industry. But is the Budget pro-poor as being said? 

In an exclusive interaction with dna,Aruna Roy and Nikhil Dey slammed the goverment for presenting a budget that is anti-poor. They said, "There are a lot of cuts in social sectors in this budget," adding, "Panchayati Raj was anyway getting only Rs 3,000 crore and it has now been reduced to a mere Rs 94 crore. This is a joke." 

Slamming the government, they said that the Budget is absolutely in favour of the rich and industry as the government has cut corporate tax but increased service tax which directly affects the middle class and the poor. "This budget is in tune with the image of the government -- anti-social and pro-industry." Dey said that it is unimaginable that eveneducation sector isn't spared from spending cuts.

Below are 9 charts that show how much the government has allocated to ministries that directly affect the poor. 

Department of Health and Family Welfare

Panchayati Raj

Women and Child Development

Labour and Employment

Department of School Education and Literacy

New and Renewable Energy

Micro, Small and Medium Enterprises

Environment, Forests and Climate Change

Department of Water and Sanitation

http://www.dnaindia.com/money/report-9-charts-that-ask-whether-it-really-is-a-pro-poor-budget-2065264

UNION-BUDGET-DETAILED PROPOSALS-!!!

• 
  
• http://profit.ndtv.com/
• Jaitley: Transport allowance increased to Rs. 1600 per month
  (3743)(698)
• Jaitley: 100% tax deduction for contribution to Swachh Bharat Fund
  (3148)(789)
• Jaitley: Service tax hiked to 14%
  (1412)(3835)
• Jaitley: To increase clean energy cess to Rs. 200/tonne of coal
  (2073)(566)
• Jaitley: Online excise & service tax registrations in 2 working days
  (2288)(314)
• Jaitley: Rs. 9000 cr from additional 2% surcharge the super rich
  (2203)(308)
• Jaitley: Wealth tax abolished, replaced by 2% cess on super rich
  (2362)(416)
• Jaitley: Total wealth tax collection in the country is Rs. 1008 cr
  (1253)(365)
• Jaitley: GAAR to be deferred by 2 years
  (1180)(372)
• Jaitley: To curb benami transactions in property deals
  (1976)(199)
• Jaitley: 7-yr imprisonment for non filing of return on foreign asset
  (2180)(261)
• Jaitley: 300% penalty on concealing income
  (2165)(253)
• Jaitley: Undisclosed income to be taxed on maximum marginal rate
  (1900)(236)
• Jaitley: New law to tackle black money
  (1945)(253)
• Jaitley: Exemptions for individual tax payers to continue
  (1808)(1130)
• Jaitley: Reduce corporate tax from 30 to 25 %
  (2147)(672)
• Jaitley: Gross tax receipts Rs. 14.49 lakh cr
  (988)(186)
• Jaitley: Rs. 13,12,200 cr non planned expenditure
  (889)(320)
• Jaitley: Rs. 2,46,726 cr allocated for defence
  (1640)(270)
• Jaitley: Centres for film production in Arunachal Pradesh
  (1516)(243)
• Jaitley: Set up AIIMS in J&K, Tamil Nadu, Himachal Pradesh and Assam
  (2020)(231)
• Jaitley: To amend law under FEMA on capital account transactions
  (1012)(146)
• Jaitley: National skill development mission to be launched
  (1382)(160)
• Jaitley: Plan 175,000 MW renewable energy by 2022
  (1687)(135)
• Jaitley: Visa on arrival extended to 150 countries
  (1680)(238)
• Jaitley: Rs. 1000 cr more to the Nirbhaya fund
  (1564)(208)
• Jaitley: Develop sovereign gold bond with fixed rate of interest
  (1352)(149)
• Jaitley: Introduce a gold monetisation scheme
  (1284)(159)
• Jaitley: Direct tax regime which is internationally competitive
  (1252)(166)
• Jaitley: Highest ever allocation to MNREGA
  (971)(418)
• Jaitley: Public debt management agency
  (839)(141)
• Jaitley: Pre existing regulatory policies instead of prior permissions
  (907)(119)
• Jaitley: 5 ultra-mega power projects, each of 4000MW
  (1804)(141)
• Jaitley: Under new PPP model Govt to absorb majority of the risk
  (1152)(193)
• Jaitley: New scheme called Nayi Manzil to enable minority youth
  (1074)(320)
• Jaitley: Investment in infrastructure to go up by Rs. 70, 000 cr
  (1504)(149)
• Jaitley: Integrated education and livelihood scheme for minorities
  (1007)(250)
• Jaitley: New scheme for assisted living devices for BPL senior citizen
  (993)(130)
• Jaitley: To create a senior citizens' welfare fund
  (1588)(133)
• Jaitley: To increase access to formal credit system
  (1056)(133)
• Jaitley: Universal social security system to be created
  (1305)(138)
• Jaitley: To create micro unit development finance unit MUDRA Bank
  (947)(128)
• Jaitley: Rs. 25,000 cr for rural infrastructure development fund
  (1099)(124)
• Jaitley: National unified market for farm produce
  (962)(113)
• Jaitley: Initial allocation of Rs. 34699 cr under MNREGA
  (721)(254)
• Jaitley: Rs. 5300 cr for micro irrigation & PM's irrigation scheme
  (864)(116)
• Jaitley: Fiscal gap target of 3% to be met in 3 years
  (1042)(154)
• Jaitley: Increasing investment in infrastructure is a challenge
  (884)(165)
• Jaitley: Our objective is to keep inflation below 6 %
  (1070)(148)
• Jaitley: Total transfer to the states will be 62%
  (1023)(129)
• Jaitley: Need to be mindful of fiscal discipline
  (900)(130)
• Will Form A Monetary Policy Committee
  (828)(144)
• Jaitley: At least 1 member of each family to have job by 2022
  (1265)(163)
• Jaitley: Electrification of remaining 20,000 villages by 2020
  (1226)(141)
• Jaitley: GST will put in place a state of the art taxation system
  (1096)(126)
• Jaitley: Aiming for double digit growth
  (958)(138)
• Growth In FY16 Seen Between 8-8.5%
  (848)(131)
• Jaitley: Growth expected between 8 and 8.5%
  (830)(143)
• To Roll Out GST On April 1, 2016
  (1101)(130)
• GST To Put In Place State Of Art Indirect Tax System By Apr, 2016
  (895)(125)
• Jaitley: Conquering inflation is an achievement of my govt
  (1036)(325)
• FY15 Real GDP Growth Seen At 7.4%
  (719)(136)
• FY15 CAD Seen Lower Than 1.3%
  (662)(117)
• Jaitley: 50 lakh toilets constructed, target 6 cr toilets
  (1421)(217)
• India's Economic Credibility Re-established
  (741)(162)
• Jaitley: 12.5 cr families under Jan Dhan Yojna
  (1176)(233)
• Jaitley: 2015 GDP seen at 7.4%
  (1120)(257)
• Jaitley: We have lived up to people's trust
  (1119)(509)
• Jaitley: Dramatically established macro economic stability
  (929)(238)
• Jaitley: World is predicting it is India's chance to fly
  (1386)(271)