Day Trading Stocks & Futures
- Thread starter TraderRavi
- Start date
- Tags banknifty bnf daytrading nifty future
From Capital.com
https://capital.com/fundamental-analysis-definition
Fundamental analysis is a thorough process of assessing the intrinsic value of a security such as a stock or currency, with the aim of discovering whether that security is undervalued or overvalued from an investor’s point of view. Any factor that can impact on a security’s value is scrutinised and evaluated by fundamental analysts. These can be macroeconomic factors such as the state of the economy and industry in general, or microeconomic factors such as corporate governance and financial conditions.
The above clearly nails it down that corporate governance falls under the purview of fundamental analysis if ever confirmation was required
In many Nordic countries, fundamental analysis first starts off with corporate governance. That is what dictates the investment philosophies of the pension funds. For eg, the Norwegian Oil Fund the analysis begins with corporate governance as the first and foremost step.
See here for evidence: https://www.nbim.no/
https://capital.com/fundamental-analysis-definition
Fundamental analysis is a thorough process of assessing the intrinsic value of a security such as a stock or currency, with the aim of discovering whether that security is undervalued or overvalued from an investor’s point of view. Any factor that can impact on a security’s value is scrutinised and evaluated by fundamental analysts. These can be macroeconomic factors such as the state of the economy and industry in general, or microeconomic factors such as corporate governance and financial conditions.
The above clearly nails it down that corporate governance falls under the purview of fundamental analysis if ever confirmation was required
In many Nordic countries, fundamental analysis first starts off with corporate governance. That is what dictates the investment philosophies of the pension funds. For eg, the Norwegian Oil Fund the analysis begins with corporate governance as the first and foremost step.
See here for evidence: https://www.nbim.no/
Looks like Franklin Templeton and the whole market needs to learn Fundamentals since nobody is getting it and simply they are holding the Debt Paper and god knows who rated them as AA.also the crazy market is buying the stocks. I alone cannot short the market and bring it down.Better to go home and learn some financials.
It's ok. Even the 2008 crisis happened because all the AAA rated (the safest possible rating that can be assigned) housing bonds became junk
https://www.investopedia.com/articles/07/subprime-blame.asp &
from wikipedia below: https://en.wikipedia.org/wiki/Credit_rating_agencies_and_the_subprime_crisis
Credit rating agencies (CRAs)—firms which rate debt instruments/securities according to the debtor's ability to pay lenders back—played a significant role at various stages in the American subprime mortgage crisis of 2007–2008 that led to the great recession of 2008–2009. The new, complex securities of "structured finance" used to finance subprime mortgages could not have been sold without ratings by the "Big Three" rating agencies—Moody's Investors Service, Standard & Poor's, and Fitch Ratings. A large section of the debt securities market—many money markets and pension funds—were restricted in their bylaws to holding only the safest securities—i.e. securities the rating agencies designated "triple-A".[1] The pools of debt the agencies gave their highest ratings to [2] included over three trillion dollars of loans to homebuyers with bad credit and undocumented incomes through 2007.[3] Hundreds of billions of dollars' worth of these triple-A securities were downgraded to "junk" status by 2010,[1][4][5] and the writedowns and losses came to over half a trillion dollars.[6][7] This led "to the collapse or disappearance" in 2008–09 of three major investment banks (Bear Stearns, Lehman Brothers, and Merrill Lynch), and the federal governments buying of $700 billion of bad debt from distressed financial institutions.[7]
https://www.investopedia.com/articles/07/subprime-blame.asp &
from wikipedia below: https://en.wikipedia.org/wiki/Credit_rating_agencies_and_the_subprime_crisis
Credit rating agencies (CRAs)—firms which rate debt instruments/securities according to the debtor's ability to pay lenders back—played a significant role at various stages in the American subprime mortgage crisis of 2007–2008 that led to the great recession of 2008–2009. The new, complex securities of "structured finance" used to finance subprime mortgages could not have been sold without ratings by the "Big Three" rating agencies—Moody's Investors Service, Standard & Poor's, and Fitch Ratings. A large section of the debt securities market—many money markets and pension funds—were restricted in their bylaws to holding only the safest securities—i.e. securities the rating agencies designated "triple-A".[1] The pools of debt the agencies gave their highest ratings to [2] included over three trillion dollars of loans to homebuyers with bad credit and undocumented incomes through 2007.[3] Hundreds of billions of dollars' worth of these triple-A securities were downgraded to "junk" status by 2010,[1][4][5] and the writedowns and losses came to over half a trillion dollars.[6][7] This led "to the collapse or disappearance" in 2008–09 of three major investment banks (Bear Stearns, Lehman Brothers, and Merrill Lynch), and the federal governments buying of $700 billion of bad debt from distressed financial institutions.[7]
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Investors should have a process driven selection of stocks they should invest in. That process should be competent enough to weed out the bad companies and bring the consistant wealth compounders for investment.....
If a trader insists that all his trades should be profitable and no trade should go in a loss ,it is possible to trade ?? Similarly with best of our efforts, 1-2 companies will go bad but investors should have an approach like a silican valley venture capityalist....he selects best of the ventures to fund but in next 8-10 years 2-3 will become 100 baggers, few will become 5 baggers and few will fail but the overall return will be huge..........if an investor expects all his investments to be never fail bets, then he cannot invest in anything except in RBI bonds .....
We can restrict the potential damage by investing in companies with 8-10 years track record of superlative gains with strong corporate governance track record and super funds allocation in their operations.....and when we see the moat or competitive advantage decreasing or some demand/corporate governance issues we can shift the funds from that company to other companies...example of DHFL crashing is out of place because financials of DHFL deteriorated from 2017-18 ( from May/June 2017 to be more precise) and it crashed in Sept 2018....so enough time was available for investors to get out in time....I remember I refused to invest in even FD of DHFL ( when the FD broker came to me with FD forms of DHFL,Shriram Transport and Bajaj Finance ) due to worsening financials and preferred Bajaj Finance even for my FD.........
But it is upto every investor to take a call of whether to invest in wealth multipliers and multiply wealth 4-5 or more times or be scared and stay away from investing in the shares totally and invest in RBI Bonds,Post office deposits and wait for 12 years to double the money.....investing in stocks is risky but not investing in stocks of good companies is more risky...one is sure to remain poor and not achieve his lifestage goals......so make your choice....
Smart_trade
If a trader insists that all his trades should be profitable and no trade should go in a loss ,it is possible to trade ?? Similarly with best of our efforts, 1-2 companies will go bad but investors should have an approach like a silican valley venture capityalist....he selects best of the ventures to fund but in next 8-10 years 2-3 will become 100 baggers, few will become 5 baggers and few will fail but the overall return will be huge..........if an investor expects all his investments to be never fail bets, then he cannot invest in anything except in RBI bonds .....
We can restrict the potential damage by investing in companies with 8-10 years track record of superlative gains with strong corporate governance track record and super funds allocation in their operations.....and when we see the moat or competitive advantage decreasing or some demand/corporate governance issues we can shift the funds from that company to other companies...example of DHFL crashing is out of place because financials of DHFL deteriorated from 2017-18 ( from May/June 2017 to be more precise) and it crashed in Sept 2018....so enough time was available for investors to get out in time....I remember I refused to invest in even FD of DHFL ( when the FD broker came to me with FD forms of DHFL,Shriram Transport and Bajaj Finance ) due to worsening financials and preferred Bajaj Finance even for my FD.........
But it is upto every investor to take a call of whether to invest in wealth multipliers and multiply wealth 4-5 or more times or be scared and stay away from investing in the shares totally and invest in RBI Bonds,Post office deposits and wait for 12 years to double the money.....investing in stocks is risky but not investing in stocks of good companies is more risky...one is sure to remain poor and not achieve his lifestage goals......so make your choice....
Smart_trade
The forum has become more of a negative news portal, rarely a discussion on trading/investing perse. If someone believes that market is crashing or about to crash he should make all efforts to make money out of shorting the market, rather than posting voluminous articles which talk negative of Indian economy. I remember money can be made both ways, why not try to do that only. Nobody is forcing anyone to 'invest', but somehow the entire focus of the thread is to dig out negative news and bash 'investing'.
If we can't grow together, let's work silently....
If we can't grow together, let's work silently....
In my opinion, Stock Market and fundamentals of Economy are seperate part. Else how could we explain rise of US stock markets and sub prime market even though defaults were high in as early as 2006!
On negative news, what to do if there are no positive news? We all know banks are in mess, nbfc’s are struggling, consumption is going down etc. Yes, there are few (yes very few) stocks which could be rely upon. If you think hard, to be a 5 trillion $ economy shouldn’t there be at least 50-60 investment grade companies?
If economic indicators says things are taking U Turn, its good to know early on so as we can preserve our capital to be deployed in good quality scripts. It also pays to know which sector to avoid in slow down.
On negative news, what to do if there are no positive news? We all know banks are in mess, nbfc’s are struggling, consumption is going down etc. Yes, there are few (yes very few) stocks which could be rely upon. If you think hard, to be a 5 trillion $ economy shouldn’t there be at least 50-60 investment grade companies?
If economic indicators says things are taking U Turn, its good to know early on so as we can preserve our capital to be deployed in good quality scripts. It also pays to know which sector to avoid in slow down.
Mutual fund investment in stock markets halved to Rs 55,700 crore in the first 10 months of the year because of lower participation from retail investors.
Fund managers had bought shares worth about Rs 1.12 lakh crore during January-October 2018, according to the data provided by the Securities and Exchange Board of India (Sebi).
"Inflows from retail investors into mutual funds have slowed compared with a year ago. As a result, mutual funds deployment into stock markets has lo ..
Read more at:
//economictimes.indiatimes.com/articleshow/72092826.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst
Fund managers had bought shares worth about Rs 1.12 lakh crore during January-October 2018, according to the data provided by the Securities and Exchange Board of India (Sebi).
"Inflows from retail investors into mutual funds have slowed compared with a year ago. As a result, mutual funds deployment into stock markets has lo ..
Read more at:
//economictimes.indiatimes.com/articleshow/72092826.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst
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