Tuesday, April 29, 2014
Monday, April 28, 2014
Can anyone become a Billionaire? Can you plan it?
In life many things happen either expected or unexpected. Things which happen as expected normally takes the following course. We wish, then we plan and we reach our goal. For example for a person to get married(arranged marriage), she has to first wish to be married. Then the planning happens: where and who to marry, when to marry, where to marry, who to invite, at what budget, where to go for honey moon etc, This wish, plan and act process applies to any goal in life. So can someone plan to be a Billionaire?
Before answering this question let us examine the process which produces billionaires. Forbes estimates about 1600 Billionaires around the world. All of the billionaires own businesses or invested in ventures. Those businesses are multi Billion in nature. In large corporations lot of people work. In olden days lot of people work for whom? Kings and Lords. Today thousands of people work for large corporations which are owned by Billionaires. Billionaires are modern day equivalent of Kings and Lords.
In order to be a Billionaire one has to start a company and thousands of people have to work for them. Not many companies grow to be multi billion in value and even if it grows it will be difficult to keep huge ownership. Very few owners have the ability to keep their shares undiluted while it grows. If ten people work for you then you are a millionaire. If 100 people work for you then you are a Deca millionaire. If thousand people work for you then you are a Centi millionaire. If 10,000 people work for you then you are a Billionaire. How many people work for you?
While any one can wish to be Billionaire, considering the process which creates Billionaires it will be difficult to further that wish into planning and attaining. It is obvious that one cannot plan to be a Billionaire but becoming a multi millionaire is always within reach. In summary Billionairehood is the by product of a millionairehood. One can start a company and grow to be a millionaire. If things work out then he or she becomes a Billionaire.
Do you think Bill Gates started Microsoft to be a Billionaire? If you can answer this questions then it is easy for you to be a millionaire if not a Billionaire.
Copyright note: This Article cannot be published or copied anywhere without written permission. Use contact form to get permission. Thanks. Nalanking admin
Before answering this question let us examine the process which produces billionaires. Forbes estimates about 1600 Billionaires around the world. All of the billionaires own businesses or invested in ventures. Those businesses are multi Billion in nature. In large corporations lot of people work. In olden days lot of people work for whom? Kings and Lords. Today thousands of people work for large corporations which are owned by Billionaires. Billionaires are modern day equivalent of Kings and Lords.
In order to be a Billionaire one has to start a company and thousands of people have to work for them. Not many companies grow to be multi billion in value and even if it grows it will be difficult to keep huge ownership. Very few owners have the ability to keep their shares undiluted while it grows. If ten people work for you then you are a millionaire. If 100 people work for you then you are a Deca millionaire. If thousand people work for you then you are a Centi millionaire. If 10,000 people work for you then you are a Billionaire. How many people work for you?
While any one can wish to be Billionaire, considering the process which creates Billionaires it will be difficult to further that wish into planning and attaining. It is obvious that one cannot plan to be a Billionaire but becoming a multi millionaire is always within reach. In summary Billionairehood is the by product of a millionairehood. One can start a company and grow to be a millionaire. If things work out then he or she becomes a Billionaire.
Do you think Bill Gates started Microsoft to be a Billionaire? If you can answer this questions then it is easy for you to be a millionaire if not a Billionaire.
Copyright note: This Article cannot be published or copied anywhere without written permission. Use contact form to get permission. Thanks. Nalanking admin
Why we have to learn about stocks?
Many of us invest especially in the beginning stages through information from friends and relatives or office colleagues. In my recent visit to the bank I came across a person who just invested (first investment) 200 shares on theme parks IPO because he was introduced to the scheme by his friend. He does not have any clue about IPO, how to sell or buy the stock or how stock market works. No one should be ashamed of not knowing things first. But we have to try to learn things once we get introduced or get an interest. If one wants to win a war most of the time then they have to master the Art of war. Stock market or investing entails information. Unless your father is a stock broker or you have ties with someone who deals with stock markets or own a company, stock market is new to almost all of us. So there is no shame in not knowing about stocks. But once you decided that you want to be an investor then it is important to learn about stocks.
Do you think Warren Buffett knows more about stocks? Yes. He is even having a masters degree from a top university and leant from a top teacher. Without financial knowledge no one can become a top investor. In schools we learn very limited information about banking, personal finances and investing. So we have to learn and improve our financial knowledge. Superior financial knowledge leads to increased financial decision and wisdom. One has to spend small amounts of time everyday in improving financial acumen. Reading articles on newspapers and asking questions on why a particular stocks goes up or going down. For example do you understand the following terms: cyclical stock, FDA decision on a drug, SEBI, reverse stock split. Start today and you will have more financial IQ next year than what you have today. That will help you to understand the stocks better.
So how can one know more about stocks. After the advent of internet and Google it is easy for anyone to lean anything. So stocks are no exception. Whatever questions one has they can simply type on Google and it will take you to some site which deals with that question. Web sites like fool.com, Investopedia, Wikipedia, money control, morning star and reading newspapers and financial columns help you to gain more knowledge over time.
Risk comes from not knowing what you are doing. - Warren Buffet
Do you think Warren Buffett knows more about stocks? Yes. He is even having a masters degree from a top university and leant from a top teacher. Without financial knowledge no one can become a top investor. In schools we learn very limited information about banking, personal finances and investing. So we have to learn and improve our financial knowledge. Superior financial knowledge leads to increased financial decision and wisdom. One has to spend small amounts of time everyday in improving financial acumen. Reading articles on newspapers and asking questions on why a particular stocks goes up or going down. For example do you understand the following terms: cyclical stock, FDA decision on a drug, SEBI, reverse stock split. Start today and you will have more financial IQ next year than what you have today. That will help you to understand the stocks better.
So how can one know more about stocks. After the advent of internet and Google it is easy for anyone to lean anything. So stocks are no exception. Whatever questions one has they can simply type on Google and it will take you to some site which deals with that question. Web sites like fool.com, Investopedia, Wikipedia, money control, morning star and reading newspapers and financial columns help you to gain more knowledge over time.
Risk comes from not knowing what you are doing. - Warren Buffet
Indian stock exchange Hours of operation and holidays
Session
|
Timing
(GMT + 5:30).
|
Pre-open Trading Session
|
09:00 - 09:15
|
Trading Session
|
09:15 - 17:00
|
Position Transfer Session
|
17:05 - 17:15
|
Closing Session
|
17:05 - 17:15
|
Option Exercise Session
|
17:07
|
All days of the week except Saturday, Sundays and holidays
declared by the Exchange in advance. For the list of holidays please follow the
link to the BSE web site. Trading holidays
Bombay stock exchange
Thursday, April 17, 2014
Do I need a large amount to be an investor?
No. People often complain that if they had lot of money then they would have invested. The reality is to become rich you have to have investments. Investing is the only way available to common man to become rich. Some people move up the career ladder and become Executives and paid significantly. But most people who work everyday can only become rich by investing. Simply putting money in savings account wont make some one rich.
So it is very clear that one has to invest to become rich. In the era of discount brokerages investing become very easier for common man. All you need is a knowledge of computer, an understanding of how stock market works and patience. Anyone can open account and start investing with a little money. Financial knowledge is as important as capital for stock investing. It may take longer time to reach the goal with small investment but surely it is reachable.
Many of us want to be rich in a short span of time, but we have no patience to wait for longer time. According to 'The Millionaire Mind', a book by Thomas J. Stanley, on an average it takes 25 years to save a million. But everyone wants to be rich within a year or two. Happiness and investing go hand in hand. One has to cultivate the mind over a period of time. Some people try for some time and give up. To achieve really big things we have to plan, practice and wait patiently for a longer time. In the movie the Pursuit of Happiness, Will Smith quotes Thomas Jefferson's United States Declaration of Independence that every individual HAS to pursue happiness. Becoming rich also a pursuit. Unless you pursue it won't happen.
"Becoming rich, becoming happy or any life achievement is a product of continuous effort. So start today and you will achieve one day" - from Motivateus.com
So it is very clear that one has to invest to become rich. In the era of discount brokerages investing become very easier for common man. All you need is a knowledge of computer, an understanding of how stock market works and patience. Anyone can open account and start investing with a little money. Financial knowledge is as important as capital for stock investing. It may take longer time to reach the goal with small investment but surely it is reachable.
Many of us want to be rich in a short span of time, but we have no patience to wait for longer time. According to 'The Millionaire Mind', a book by Thomas J. Stanley, on an average it takes 25 years to save a million. But everyone wants to be rich within a year or two. Happiness and investing go hand in hand. One has to cultivate the mind over a period of time. Some people try for some time and give up. To achieve really big things we have to plan, practice and wait patiently for a longer time. In the movie the Pursuit of Happiness, Will Smith quotes Thomas Jefferson's United States Declaration of Independence that every individual HAS to pursue happiness. Becoming rich also a pursuit. Unless you pursue it won't happen.
"Becoming rich, becoming happy or any life achievement is a product of continuous effort. So start today and you will achieve one day" - from Motivateus.com
Wednesday, April 16, 2014
How to open a trading account?
First of all Congratulations on Saving enough to start your investing journey.
Now a days investing in stocks is mainly done through online. In order to start buying stocks you need 1)Savings Account 2) Demat Account and 3) Trading account
1) Savings bank account: Choose a bank which offers better internet features. Even though many banks offer this facility, private banks (such as Axis bank, ICICI, HDFC) have better features for managing money online. Try to open an account with sweep facility. Sweep account helps to earn at a Fixed Deposit rate in a Savings account without a need to opening a separate FD account. When the money is not invested in stock the money in sweep accounts earn interest at a higher rate than the regular savings account. Ok. Now you have opened the savings account with better interest rate.
2) Trading Account: Choose the trading firm which also has a physical presence near you, so that you can visit them whenever needed. Before opening account ask for the presentation on various schemes available. Some trading firms charge a lower fee upto a certain amount or duration as a promotional offer. Try understand the fee structure and commissions and make a note of it. If you do not understand the terms ask questions and fully understand how it works. Practice the online demo by opening the guest account.
3) Demat account: Demat is the online account for keeping for stocks. It avoids the need to have a paper version of contract for securities sent though mail. Generally Demat is provided along with the trading account. There is a separate fee for demat(annual fee, adding and removing stocks at a nominal fee)
Fill up the form. Pay the opening fee and wait for about a week for the account to get activated. Once the account is active then start buying stocks.
Some banks are offering 3 in 1 accounts, meaning Savings, Demat and Trading. It may be a good idea for some but for others they might prefer a separate log in for Saving and Demat. Three in one accounts have no advantage except avoiding the need to have two log ins. Axis bank, ICICI and HDFC offer 3in 1 accounts.
Now you are ready for your investing journey. Good Luck.
Now a days investing in stocks is mainly done through online. In order to start buying stocks you need 1)Savings Account 2) Demat Account and 3) Trading account
1) Savings bank account: Choose a bank which offers better internet features. Even though many banks offer this facility, private banks (such as Axis bank, ICICI, HDFC) have better features for managing money online. Try to open an account with sweep facility. Sweep account helps to earn at a Fixed Deposit rate in a Savings account without a need to opening a separate FD account. When the money is not invested in stock the money in sweep accounts earn interest at a higher rate than the regular savings account. Ok. Now you have opened the savings account with better interest rate.
2) Trading Account: Choose the trading firm which also has a physical presence near you, so that you can visit them whenever needed. Before opening account ask for the presentation on various schemes available. Some trading firms charge a lower fee upto a certain amount or duration as a promotional offer. Try understand the fee structure and commissions and make a note of it. If you do not understand the terms ask questions and fully understand how it works. Practice the online demo by opening the guest account.
3) Demat account: Demat is the online account for keeping for stocks. It avoids the need to have a paper version of contract for securities sent though mail. Generally Demat is provided along with the trading account. There is a separate fee for demat(annual fee, adding and removing stocks at a nominal fee)
Fill up the form. Pay the opening fee and wait for about a week for the account to get activated. Once the account is active then start buying stocks.
Some banks are offering 3 in 1 accounts, meaning Savings, Demat and Trading. It may be a good idea for some but for others they might prefer a separate log in for Saving and Demat. Three in one accounts have no advantage except avoiding the need to have two log ins. Axis bank, ICICI and HDFC offer 3in 1 accounts.
Now you are ready for your investing journey. Good Luck.
Tuesday, April 15, 2014
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