Start Investing in Stock Market with this tips

SO you are new to stock markets and want to be part of it. But how do you get started? If this thought is holding you back, here are a few simple tips to making the initial moves into the stocks market simpler.
Determine your risk profile: This is the building block for making a sound investment decision. Your investments should match your risk profile, which depends on your age, personal liabilities, investible surplus and stage in life. The risk-taking ability of a 25-year-old professional will be different from a 56-year-old man who will retire in another two or four years. We all have heard of the maxim “more risk, more profit.” With this comes the individual choice of either investing in equities or bonds. While equities are certainly riskier, keeping in mind the volatile nature of markets, the gains certainly match the risk. On the other hand, fixed income avenues (like bonds, FDs, PPF, post-office saving scheme, etc) are for those averse to risk but have a right mix of more and less risky asset classes in one’s portfolio.
Start early: As a general rule, the shorter your time horizon, the more careful you should be. The reason is quite simple, if you start investing early, let’s assume in your early 20s, you are likely to have less liability, which makes a strong case to shell out a considerable part of your paychecks for investment. Also this improves your risk-taking ability. By starting investments early, you give more time for your money to grow, get more time to cover up for losses, if any, and also let the power of compounding work for a far-away horizon.
How to research: Before doing this, remember there’s no such thing as ‘one formula fits all’. No two stocks are the same and therefore, your strategy will vary, at least to some extent, for different stocks. Analysing quarterly and annual results, watching cash flow of the company, knowing about the management who runs it and watching standard numbers like P/E ratio vis-à-vis its peers, book value, market cap, 52-week low and high, daily volumes are a must for any stock.
Remember it’s still your best guess: Well yes, you have done your homework but still there’s an element of uncertainty. While understanding your stock does help in playing the game safe and having the fundamentals right, it’s no guarantee that there will be no downside.
No one can predict what market cues will emerge in days to come, what news, in general, will have a bearing on the stock market and to what extent and what direction the global markets will take and affect our stocks. Hence, one should be prepared for volatile times.
Just when this talk was going rounds that the Sensex rally from 15,000 (which it hit on July 6 in intra-day trade) to 16,000 would be the shortest one and when it was about to kiss the 16k mark, US sub-prime mortgage loans blew global market, triggering a meltdown in Indian market too. The lesson: We can’t predict the market and can only play safe.
And what about that ‘hot tip’: So you just got an expert advice from a friend who has been investing in stocks for years and now you too want to put it to test before the ‘opportunity’ slips out of your hand. But wait a minute. Did you do the fundamental check yourself? Once you start investing and take interest in the stock market, it becomes part of your daily discussion, just like we discuss politics, climate and the new women president. One must be vary of acting on these hot tips. Stock investing is serious business, unlike the notion that it runs on tips from your friends, relatives or colleagues.
Value stock or growth stock: Both are quite popular stock picking strategies used by fund managers as well as retail investors like you and me. A value investor ‘values’ stocks trading lower than its actual worth but with strong fundamentals with the idea that the stock will bounce back by virtue of its intrinsic worth.
On the other hand, a growth investor in not concerned with the current trading price but banks on the future growth potential. For this, investors are ready to pay a premium, which leads to its high price-to-earnings ratio of such stocks.
In an ideal situation, one must have a blend of both to minimise risk, as different economic cycles tend to favour a particular type of stock at time.
Determine your aim of investment: Is it exploring a way to have an extra source of earning for financial security, earning more to improve your lifestyle, just parking your excess money, planning to retire early or is it for financial stability post-retirement? Whatever it is, knowing and defining this helps to determine how much risk you are capable of taking. Once you know your category, it becomes clear where to put a ‘stop loss’ to cut your losses and when to sell your stock to lock in profit.
Set a stop loss: Although this may the last thing in this piece and also in people’s mind, setting a ‘stop loss’ for your stocks is crucial for consistent returns and minimising risk. A ‘stop loss’ is set to sell a stock when it reaches a certain price level.
This is done to limit your losses. Especially in this phase of volatility coming from sub-prime lending woes, one can’t ignore this part of investing. In other words, setting a stop-loss order for 10% below the price you paid for the stock would limit your loss to 10%. It also helps to use a ‘stop order’ before you leave for vacation or are in a situation in which you will be unable to monitor your stocks for a period of time.
Track your stocks regularly: As far as tracking stocks is concerned, apart from the conventional means of stock pages, newspapers and business channel, a very handy way is to create a portfolio tracker on your own on the internet. Here, all you need to do is to register at the website and enter the details of your investments. This gives you the facility to update details of your stocks giving you exact figures of profit/losses incurred on your investment and researching your stocks.
Lastly, stick to your target: This is a key to successful stock market investing. Booking profit when your investments reach your target is crucial to convert deemed profit on papers to actual profit in hand – just like hitting the iron when it is hot. Old sayings teach us a lot, doesn’t it?
Also invest in stocks with strong fundamentals and do thorough research before investing and don't always trust the broker blindly.
Source:Economic Times

What is Subprime?

Subprime lending, also called B-Paper, near-prime, or second chance lending, is a general term that refers to the practice of lending money to borrowers who do not qualify for the best market interest rates because of their deficient credit history. Subprime lending is risky for both lenders and borrowers due to the combination of high interest rates, poor credit history, and murky financial situations often associated with subprime applicants. A subprime loan is offered at a rate higher than existing market rates due to high risk of default.

Subprime lending encompasses a variety of credit instruments, including subprime mortgages, subprime car loans, and subprime credit cards, among others. The term "subprime" refers to the credit status of the borrower (being less than ideal), not the interest rate on the loan itself.

Subprime lending is highly controversial. Opponents have alleged that the subprime lending companies engage in predatory lending practices such as deliberately lending to borrowers who could never meet the terms of their loans, thus leading to default, seizure of collateral, and foreclosure. Proponents of the subprime lending maintain that the practice extends credit to people who would otherwise not have access to the credit market.

The controversy surrounding subprime lending has expanded as the result of an ongoing lending and credit crisis both in the subprime industry and in the greater financial markets which began in the United States. This phenomenon has been described as a financial contagion which has led to a restriction on the availability of credit in world financial markets. Hundreds of thousands of borrowers have been forced to default and several major subprime lenders have filed for bankruptcy.

Top 60 Soft Skills

The Workforce Profile defined about 60 “soft skills”, which employers seek. They are applicable to any field of work, according to the study, and are the “personal traits and skills that employers state are the most important when selecting employees for jobs of any type.”

1. Math.
2. Safety.
3. Courtesy.
4. Honesty.
5. Grammar.
6. Reliability.
7. Flexibility.
8. Team skills.
9. Eye contact.
10. Cooperation.
11. Adaptability.
12. Follow rules.
13. Self-directed.
14 Good attitude.
15. Writing skills.
16. Driver’s license.
17. Dependability.
18. Advanced math.
19. Self-supervising.
20. Good references.
21. Being drug free.
22. Good attendance.
23. Personal energy.
24. Work experience.
25. Ability to measure.
26. Personal integrity.
27. Good work history.
28. Positive work ethic.
29. Interpersonal skills.
30. Motivational skills.
31. Valuing education.
32. Personal chemistry.
33. Willingness to learn.
34. Common sense.
35. Critical thinking skills.
36. Knowledge of fractions.
37. Reporting to work on time.
38. Use of rulers and calculators.
39. Good personal appearance.
40. Wanting to do a good job.
41. Basic spelling and grammar.
42. Reading and comprehension.
43. Ability to follow regulations.
44. Willingness to be accountable.
45. Ability to fill out a job application.
46. Ability to make production quotas.
47. Basic manufacturing skills training.
48. Awareness of how business works.
49. Staying on the job until it is finished.
50. Ability to read and follow instructions.
51. Willingness to work second and third shifts.
52. Caring about seeing the company succeed.
53. Understanding what the world is all about.
54. Ability to listen and document what you have heard.
55. Commitment to continued training and learning.
56. Willingness to take instruction and responsibility.
57. Ability to relate to coworkers in a close environment.
58. Not expecting to become a supervisor in the first six months.
59. Willingness to be a good worker and go beyond the traditional eight-hour day.
60. Communication skills with public, fellow employees, supervisors, and customers.

Top 20 Qualities of Smart People

In today’s competitive world, it pays to be smart. No matter how smart you are, I am sure there is something you could “get smarter” about. Below are some qualities of smart people. As you read the list, ask yourself: Am I as smart as I could be in this area? How could I get smarter?

1. Make Decisions Intuitively

Smart people listen to and follow their intuition. They know how intuitions and insights come to them and are tuned-in internally to make wise decisions.

2. Are Self-Aware

Smart people are aware of who they are— strengths, weaknesses, personality, values, etc. As Confucious once said, “He who knows others is wise, he who knows himself is enlightened,” they know that the most important (and interesting) thing to know about is “self.”

3. Use Active Reflection

Smart people reflect on and learn from past experiences, finding out what works and what doesn’t, and then adjusts their course of action as needed. They think about things before jumping in, and also take the time after-the-fact to actively reflect to fully understand what happened or didn’t happen.

4. Think Out-of-Box

Smart people can easily entertain new ideas, thoughts, and ways of doing things. They crave progressive and forward thinking information, concepts, and people. They often come up with new and radical ideas on a regular basis.

5. Have An Open-Mind

Smart people are open to different perspectives and see potential where most people don’t. They would agree with what the quote, “A mind is like a parachute, it only functions when it is open.” They are comfortable with paradoxes and can relate to many sides of an issue or opinion.

6. Are Responsive

Smart people recognize and respond quickly to opportunities and people. They act and react fast, and take care of what needs to be taken care-of, well ahead of schedule.

7. Are Resourceful

Smart people don’t have to know it all, but they do know where to go to get whatever information, resources, training, education that they need. They are well-networked and have people to call on for resource referrals.

8. Question Authority

Smart people think for themselves. They do not blindly believe things so-called “experts” say, in fact, they ask deep questions to discover their own truth.

9. Upgrade Their Brain

Smart people stay smart because they are committed to being a lifelong learner. They continuously learn new things, and stay current with their skills, attitudes, and beliefs.

10. Have a Sense of Humor

Smart people do not take themselves or life too seriously. They recognize the importance of finding the fun in the irony and the comedy of everyday life.

11. Take Risks

Smart people are willing to try out new things, knowing that if it doesn’t work out as intended, failure is often cleverly disguised as a learning opportunity. They “swing out there” often, and it usually pays off.

12. Trust Themselves

Smart people believe and trust themselves first and foremost. They don’t have to check with others to make decisions, they instinctively know what is right for them and they go for it!

13. Write and List Things on Paper

Smart people have a well-developed life strategy that includes a written life vision/mission, purpose, and goals statement. They also write lists—one for “have to’s” and one for “want to’s.”

14. Are Productive

Smart people get things done, through whatever organizational/ time management system that works for them. They make the most of each day and take action on important life tasks each and everyday.

15. Use Discernment

Smart people are able to discern (see clearly) other’s reasons and motives, so they selectively choose who and what to align themselves with. They surround themselves with only the highest quality people, programs, and places.

16. Read, Read, Read

Smart people tap into the collective brain power of others by reading books, magazines, articles—anything that is helpful for their own development. They are also able to filter out the information that fits for them and let the rest go.

17. Value Learning

Smart people value the process of learning for learning’s sake. They do not just learn for a specific end—to get a certificate, degree, title, etc. They learn because it is intrinsically rewarding for them.

18. Teach Others

Smart people are the teachers of the world, who share their knowledge with other people. They put themselves out there so the rest of us can benefit, and in exchange, their own learning grows and develops because they are actively talking about, researching, and understanding their subject.

19. Reinvent Themselves

Smart people do not like to stay the same, they love to grow and develop. They often play with their image, brand, company name, and expand or change it entirely. To stay ahead of the game, they often reinvent themselves time and time again.

20. Are Students of Life

Smart people not only know about specific subjects and topics, but also about what it means to be a human being at this time in our evolution. They are insatiably curious and want to know more about becoming bigger and brighter, as a result they naturally evolve.

As Lao Tzu said ,To gain knowledge, add things everyday. To gain wisdom, remove things everyday.” This is so true, our brain is like a computer and in order for it to function at a higher level, we must always be adding, while simultaneously taking away information that no longer serves us. Think about it, what do you want to remove from your database? And, what new software program will you replace it with?

Why we say yes when we want to say no?

There are times when we are not able to say no to someone even though we want to, but why is it that we are not able to say No? Well there maybe quite a few no of reasons which make us say yes.

Here are few of them.

Either we love that person so much that we can’t say No

We may not want to hurt someone, thinking that he/she might break the relationship

Thinking what other’s will think, If we say No

Or Even though you can’t help the other person but you would still like or love to help him or her then in that case also you won’t say No.

It is important to use the word No in life even though if you don’t like it, when you can’t help or do something about a situation or an circumstance, But the way you say No also matters a lot rather than committing on something which you can’t do and then repenting.

So always say No when you want to say No and not Yes.

Do people justify their degree?

How many times we have seen that people do something in their graduation and when it comes to their career they do something totally different, Why is it like that? Is it because of Circumstance, need, that first break or not having confidence on them, Well the reasons might be too many but pursuing your dream and achieving it is a tough challenge and very few people pursue their dreams and go till they accomplish their dream.

Pursuing your dream requires lot of determination and dedication along with an plan to accomplish it, Also the guidance is very important as there are many people who want to do something but they don't know how to go about it, So having someone as mentor or an Career Counselor will be of great help, But finding the right people whom you trust and who will help you in your dreams requires luck. Although luck is 1% but it is the most important thing which determines the look of your dream along with circumstances.

All those are an inspiration for me who pursue something and achieve their dream or who are in pursuit of their dream with dedication and determination as everyone doesn't have that determination to go for it.

So while making an choice consider it carefully and then make a decision because a decision made today will impact your tomorrow.

Views and Suggestions are welcomed.

Regards,
Viraj

Beliefs that hold you back

Hi Frends, Sharing you a piece of an article which i liked.
Have you noticed that people who believe that they can do something tend to succeed, and those who believe they can't, tend to fail?
Throughout history, wise people the world over have recognized that our beliefs are so powerful they create our reality. The Upanishads, Shakespeare, Ralph Waldo Emerson, Henry Ford and Napolean Hill are just a few of the well-known proponents of "what you think is what you get".
When it comes to our careers, here are the most common limiting beliefs.
I am not skilled enough.
Hard work is noble.
Fulfilling work is for others, not me.
Fulfillment comes from my personal life, not my work life.
I'm too old to make a major life change.
My family and friends will think I'm crazy.
I'm a fraud – my success is a result of the corporate structure, or my tenure.
The unknown isn't safe.
I'm not sure that I can trust my decisions or choices.
I'm afraid of failing in a new role.

Beliefs stay with us for three primary reasons:

First, we label them. ("I'm no good at math. My Mom (or Dad) wasn't either.") Labeling beliefs and focusing on where they come from helps us rationalize and make them okay.

Then we engage in selective data gathering. We seek out evidence to support our beliefs and ignore evidence that would support the opposite belief.

Finally, we disguise them – sugar-coat them – to make them more palatable. They become an ego advantage. For example, "I'm not as smart as…" can become "I work harder" – an empowering belief which could aid your career. (Just think of what could happen when you let go of the limiting belief – it makes positive even stronger: you are smart AND you work hard!).

But beliefs can be changed. While a belief feels very real to the believer, they are not absolute – they are a learned frame of reference. When you have a genuine willingness to replace a belief with something new and empowering, it is entirely possible to do so.

Some beliefs can change simply as a result of identifying it and then taking in new information about it - as Jack did in our earlier example. Other beliefs are more deeply networked into our psyches and have more "staying power".

So here are 5 steps that can help you re-frame your limiting beliefs. 1. Clearly identify your limiting belief and confirm that you have a genuine desire to change it.

2. Create a new, empowering belief that supports the results you want. And make sure it adheres to these five "power checks":

Is stated in the present tense (I am, I know, I express, I respect…)
Is spoken as certainty (No cans, maybes, possibilities, iffi-ness, comparisons)
Is loving and respectful (Does it honor your inner greatness?)
Includes the notion of abundance (No limits, caps)
Strikes an emotional chord with you
For example, let's take "I'm not skilled enough". Here are two possible empowering statements:

"I have an exceptional skill set -- and this is just one expression of my inner greatness."
Or:
"My resourcefulness is a gift I use to build strong community around me."
3. Repeat your affirmation daily for at least 40 days. Vividly imagine this new belief in action in your life; engage your emotions around it. Recall an experience from your past that is evidence of your new belief.
4. Acknowledge old emotions and behaviors when they come up. Without reprimand, simply choose to shift your energy and focus on the new belief.

5. Add a daily action step to re-enforce your new belief. During this brief action step, completely be the person who holds your new belief.

Be gentle with yourself as you adopt this new belief. Eventually, it will become automatic - and your new reality.

Is being honest in Corporate world a disadvantage?

There are two types of People in Corporate world, People who manipulate and People who are honest. Whereas People who are manipulative are thought to be smarter and People who are honest are thought to be as dumb, And they don't get promoted or they don't move up the corporate ladder easily as they are the ones who are taken for granted as they are good people, So the management knows that they are explainable by giving a reason or an excuse, Whereas a person who is manipulative will not stick if he doesn't get promoted or recognized, So he/She gets promoted.

When that kind of thinking exists in corporate world then a person cannot remain good always and say that it's ok, So what he will do? Either he will leave his/her job or he/she will fight against the system, Well if that's is also not enough then the only option left is to himself/herself become manipulative and succeed at life for a shorter period of time, Just to show people around that being good doesn't mean that they can't change but it only means that they are giving time to other person hoping that he/she will change.

But when that doesn't happen then it's time to draw the battle and you yourself become manipulative and explain the other person in their own style. Unless and Until a person suffers he/she doesn't realize what they are doing wrong.

Views and Suggestions are welcomed.

Regards,
Viraj

Reservation in Private Sector?

Is reservation in private sector going to help anyone in the long run, Well the answer is no because you want to compete with other countries and the only way to compete is by having people with talent and more competition and also people who can absorb stress, Also need to understand that working as a team is more important than working selfishly as an individual.

Great organizations and Great companies are not made by sacrificing quality but they are made by having quality people who can provide quality service at cheaper cost.

Well there is nothing wrong in giving reservations but not in Jobs or in private sector but reservations should be given to people for enhancing their knowledge and becoming independent, So that they can be more competitive like other's who are not getting reservation.

Reservation is used for vote bank politics but politicians and those who support reservation don't understand it's implications, Which are far greater than what it seems like the advantage.

Will rain stop India from registering it's first victory in England?

India is in a very formidable position with seven wickets in hand, So the question is whether this team has the character to Win this test match or Will the weather come to England's rescue as the weather prediction is not too good.

Saurav Ganguly and Sachin Tendulkar's partnership will be crucial for India to make a match of this if India's wants a big lead over England, And for England Monty's bowling will be crucial in partnership with Tremlett, as he was the one who looked to get some swing.

Hope that India gets a good partnership.

Regards,
Viraj