How Stock Market Works .

In a local village, a man appeared and announced to the villagers that he would buy cobras for Rs. 400 each. The villagers knew there were many cobras around the village and started catching them. The man bought thousands at Rs. 400 and as the cobra supply started to diminish, the villagers stopped their effort due to the increased cost of finding them. The man then announced that he would now buy at Rs. 800. This emboldened the villagers to start catching cobras again. Soon the supply diminished even further and people started going back to their old jobs.

The man now announced that he would buy cobras at Rs. 2000! However, since he had to go to the big city on business, his assistant would now buy on behalf of him. Now that the man was out of sight, the assistant told the villagers. "Look at all these cobras in the big cage that the man has collected from you. I will sell them to you at Rs. 1500 and when the man returns from the city, you can sell them to him for Rs. 2000 each."

The villagers rounded up with all their savings and bought all the cobras. Then they never saw the man or his assistant again, only snakes everywhere! Now you have a better understanding of how the stock market works.

By Mr. Rakesh Jhunjhunwala

Making Money through Investments

IF you had bought 100 shares of Wipro at the rate of Rs 100 per share in 1980, they would be worth Rs 200 crore (Rs 2 billion) today.
If you had invested Rs 10,000 in Infosys shares in 1992, you would be richer by Rs 1.5 crore (Rs 15 million) today.
If you had invested Rs 1,000 in Ranbaxy in 1980, you would have got Rs 1.9 crore (Rs 19 million) today!
And not so far back in time, if you had invested Rs 40,000 in Unitech during the lows of 2004, your bank account would see a whopping Rs 1.1 crore (Rs 11 million) today!

Some guy out there knew this. Today, he is laughing all the way to the bank. So what was the magic strategy that made this guy so rich? Simple.

He bought, he waited:

Waited for all those share splits and bonus declarations.

Waited for the company to grow from strength to strength.

Waited even when the shares teetered only to recoup in a few years' time.

Just as a child takes time to realise his/ her full potential, so does an investment need time to reward you handsomely.

Sure, the times are uncertain now. But let that not scare you to sell for a loss.

Patience pays:
Look back. You will notice that selling in such times makes no real sense in the longer run. Those who didn't sell their stocks during the May 2006 crash but had, in fact, bought more would be a very happy lot today.

Investing long term is like that: it rewards you handsomely. Always. Exercise patience. As champion broker Rakesh Jhunjhunwala said recently, if you want to learn more about patience, get married!

The way I see it, you don't really need to get married to learn patience. Just look back in time. All these stocks have been multi-baggers for those who stayed on for the long term. They would have fetched you unimaginable returns today.

Do your research:
You will learn a thing or two about making crores from a few lakhs. You can still make those crores!
Turn a deaf ear at the sceptics; look at beaten down sectors.

Consider aviation and hospitality. Today, aviation stocks are way below their lifetime highs. But, as India grows, so will travel. And within the next three years, they will reward you handsomely.

Most people ignore aviation and hotels. And that is why they merit my attention.

Pick up stocks that others are ignoring. People who create wealth do things that others do not. I am sure you could make crores if you do too!

Source : Mr. Yogesh Chabria

Choosing the right monitor

Even though most of like the portability of laptops , when it comes to working from home, a desktop is much more comfortable. That’s not all; it’s a lot more fun to watch movies or play games on your desktop, especially if you are the sort who watches a lot of movies on your comp. A monitor makes for better viewing that too for a larger group of people. But how do you pick one? Is a CRT better than LCD or vice versa? Is bigger always better? These are some questions that you need to address before investing on a monitor for your PC.

As, you may already know, you can choose between a CRT and LCD monitor. LCD monitors are a rage nowadays, with a bevy of new and innovative features and are well on their way to making CRTs obsolete. They are the most preferred choice of display for their lightweight, low power consumption and compact design. Though in some areas like contrast ratio, viewing angles and colour fidelity the good old CRTs still outperform LCDs. But as most display manufacturers are improving their LCD technologies, in no time CRTs will be extinct. Some of the major manufactures of LCD monitors are Viewsonic, Samsung, LG, BenQ, Dell, Acer etc.

As LCDs are the most widely available display technology we shall concentrate on it. LCD monitors come in two formats—standard screen (aspect ratio 4:3) and widescreen (aspect ratio 16:9). Aspect ratio is the ratio of width to height of the viewable area of the monitor. The standard screen format is similar to the ones CRTs possess, which is ideal for office productivity, performing design related tasks etc. On the other hand widescreen formats are preferred for viewing videos, playing games, etc.

The performance of an LCD monitor depends on four important parameters—viewing angle, contrast ratio, response time and resolution.

It is preferable to buy a wide screen monitor, which has a screen size of 19-inch or more. As such monitors are capable of delivering a truly cinematic experience. Monitors in this range usually have some extra add-ons such as in-built speakers, DVI input or integrated web-cam etc. In the sub Rs 10,000 category the ViewSonic VA1926w reigns for its high viewing angle and contrast ratio. The downside of this monitor is its response time of 5 ms, by shelling around Rs 2000 more you could get the ViewSonic VX1940w that has a response time of 2 ms.

Viewsonic’s CASA series of monitors feature the Dynamic Contrast Ratio (DCR) technology. This technology enhances LCD contrast ratio up to 2000:1 and enables automatic detection of the image signal, and controls the backlight brightness of the monitor accordingly. In this way the black is made blacker in a dark scene, and make the white is made whiter in the bright environment.

Another feature available in ViewSonic’s CASA series monitors is the ClearMotiv II technology. This provides faster response time with which the monitor is able to deliver smooth video performance, broadcast quality, and fast-action video for gaming and graphic-intensive applications.

So the next time you go shopping for a monitor do look out for its specifications before deciding on one and do not just carried away by the additional features it has to offer such as in-built speakers or webcam. Although, mind you, these add-ons don’t hurt either; but the core is the factors mentioned above. Once you’ve sorted these, then look at connectivity options, another important aspect, and only then in-built speakers and webcam. Choose a monitor with the latter, only if you find one that falls in your decided budget. These aren’t critical enough for you to loosen your purse strings.

My Personal Recommendation Are :

19-inch category : LG L194WT for 10000 Rs.

22-inch category : LG L226WTQ For 14000 Rs.

These Are The Best Value For Money Monitor U Can Buy .

By Sharon Lobo For compareindia.com

Investing In Mutual Funds

The reason people invest in Mutual Funds is because they don’t have much time and the ability to manage their money. They choose a professional fund manager who invest on their behalf in equities, debt , or in gold .

However many people, besides just selecting a good mutual fund, also tend to go one step further and try to ‘trade’ with their mutual fund investments and try to time the market.

When they feel markets are high, they send in redemption requests thinking markets would come down and when the markets are falling they tend to panic and once again send in redemption requests thinking everything is headed for doom.

Or alternatively others keep switching from one mutual fund scheme to another within a matter of weeks. They exit one mutual fund and enter another; thinking they are being smart and can get more returns this way.


Now part of the reason people tend to trade and move in and out of mutual funds so rapidly is because mutual fund distributors and brokers promote this type of thinking. If you don’t move in and out of mutual funds rapidly, your broker won’t make any money. Remember that everybody works in his or her own best interest, and the best way a broker can make more money is by letting you churn your portfolio.

The entry load you pay is income for your broker. Of course many of you might have started investing directly in a mutual fund (After 4th Jan 2008 ) and might not have to pay the entry load, however things like exit loads would still prevail in the short term.

You might make more returns than a bank FD, even if you churn, but you can make much more if you don’t trade mutual funds. You can save the excess entry load and exit load, which you would have to pay. You can save time and effort.

And also the entire logic of investing in a mutual fund is to let the fund manager analyze and take care of your money. If market correct the fund manager has to decide what to do and not you. All you need to do is invest regularly in quality mutual funds. In case you have the time and inclination to do research, why not start investing directly in stocks after doing research?

The best time to exit your investments is when you need the money or when you feel the investment has no scope to go up further. In case you feel the Indian economy and Indian companies are having fundamental problems in the long run, that is when you should exit your investments.

Always remember that no matter what investment you make; in the longer term risks always reduce if you have invested in quality. In order to be truly wealthy you need to have a long-term vision and belief in India’s economic growth.

All those of you who don’t have the time or inclination to learn more about investing in stocks directly, mutual funds are a great way to invest and be part of India’s economic growth.

"Just remember investments are like seeds, and will grow into wonderful trees only if you give them time."




 Source :   Why “Trading” in MFs is not the best thing to do  By author Yogesh Chabria  On moneycontrol.com

About Me

This Is Piyush From Kanpur .