Mayuri Jain (@mayuri_jain) 49 Followers 1m

Know what you own, and know why you own it.

Talks about #investments #savings #stockmarket

Stock Market 131 5

"Beware The Ides Of March" — 5 Market Secrets You Didn't Hear From Your Financial Advisors!

| 'Stop-loss order' can minimize your loss— Mental peace

A stop-loss order executes when the share price falls to a level that you set. Suppose you buy a share of $10 and set a 5% trailing stop(mean you will sell if the price drops 5% from the highest price). Stock picks up $15 means your stop-loss is $14.25, and so on...

| Your on-screen price is not right many times

Many times the price displayed on the screen is NOT correct. Either the stock is undervalued or expensive. For self-directed investors, this presents a fantastic opportunity. Do your homework and learn the ins and outs of the industry. If your study indicates that the stock will be higher this time next year, you may be able to get a good deal.

This goes for the whole market, too. Markets are driven by sentiment as well as fundamentals.

| Take a deep in 'Dark Pool.'

Generally, if you own a stock, you can sell it to someone else without going through a stock exchange. The exchange makes it easy to find buyers and sellers but isn't legally required. Someone who wants to sell a lot of stock without moving the price too much may prefer a dark pool.

Dark pools are typically attractive to large buyers and sellers to trade large volumes on thinly traded stocks. US holds 40% dark pools in daily trading, whereas SEBI is almost clueless.

| Are fund charges eating into your returns? — Stress the value

Whether you float, drown, or make a draw match, the fund manager always has their piece of cake.WHICH magazine said In the UK, the OCF or annual management charge typically ranges between:

0.75% -1.25% in most actively managed funds. 

Up to 1.8% turnover cost.

| HFT can win the game in nanoseconds, beat the fund manager

HFT is an algorithmic trading system that is automated. Computers are programmed to examine stock and futures prices and trade on the difference. This fluctuation might last for only a few microseconds. To the naked eye, they don't even exist. Blink, and you'd miss them. HFT traders rely on trading at near-lightspeed to profit from these inconsistencies. HFT holds 50% trade volume of the US and Indian market.


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