Gold Investment - Is it Good idea?

India is always obsessed about gold. We buy on religious occasions like Akshya Trithiya, Diwali etc  wedding functions and as gifts.We also still consider it as a savior against economic bad situations.

Support and Resistance Levels

Support and resistance are referred in technical analysis.

Support
A support level is a price level where the price stop further going down. The price then is more likely to go up from this level. 

Investment ideas for Young People

Saving money is worthwhile for later in life. It is important we invest early so that we have a fair amount of money for one's adult life.

1. Manage your money

The most important point is to set a goal of how much wealth you want and by when. It is important that you factor in the inflation for each year. You can take the inflation average for last 3 years.
Make a requirement list of all the important milestones in your life(Know like child education, retirement age, marriage, health insurance).

Decide Future Requirement based on 3 points:

i) Requirement that exist today and will do so in future like food expenses, fuel expenses.Calculate your monthly spent today on the requirement.  You can add and decrease the money depending on your future requirement. Add the average inflation to these requirements per year and calculate money you will require for future.

ii) Requirement that do not exist today and will do so in future like high medical expenses in old age, child higher education. calculate average money spent on these requirements with the assumption that these requirement exist today.Add the average inflation to these requirements per year and calculate money you will require for future.

iii) Requirement that exist today but cease to exist in future like monthly school expenses, old age parental insurance requirements.Do not consider these in your future expenses.


This kind of planning will give you a fair idea of your future requirements.

2. Save Money

Save a small amount of money every money. Approximately, 20% of your salary. These amounts will lead to huge bank balance later.

3. Put money in Multi-Option deposit Account

The MOD (Multi-Option Deposit) account is a combination of your transactional (debit) account and deposit account. These are the Time Deposits but at the time of need for funds, withdrawals can be made in units of Rs.1,000/- from the deposits by issuing a cheque from Savings Bank Account or from ATM / branch or through any other channel. This kind of deposits is completely liquid. The sum of available balance in the transactional account and MOD balance can be used for issuing cheques or withdrawal or making any other payment. The intrest in MOD account is generally the same as in fixed deposits.

4. Invest in Bonds

Bonds pay interest semiannually, which means they can provide a predictable income stream. Ypu can invext in bonds for that expected interest income and also to preserve their capital investment.

5. Do SIP

Every month on a specified date an amount you choose is invested in a mutual fund scheme of your choice. Being disciplined - It’s the key to investing success. You can commit an amount of your choice (minimum of Rs. 500 and in multiples of Rs. 100 thereof*) to be invested every month in one of the schemes.


Think of each SIP payment as laying a small step in a building block. One by one, you’ll see them transform into a building. You’ll see your investments accrue month after month.

6. Recurring Deposit

Invest in Recurrimng Deposits. Recurring Deposits are a special kind of Term Deposits offered by banks in India which help people with regular incomes to deposit a fixed amount every month into their Recurring Deposit account and earn interest at the rate applicable to Fixed Deposits.[1] It is similar to making FDs of a certain amount in monthly installments, for example Rs 1000 every month. This deposit matures on a specific date in the future along with all the deposits made every month. Thus, Recurring Deposit schemes allow customers with an opportunity to build up their savings through regular monthly deposits of fixed sum over a fixed period of time.

Taxation of Recurring Deposit Tax Deducted at Source ( TDS ) is not applicable on RDs. However interest from RD is not tax free. Income tax is to be paid on interest earned from a Recurring Deposit at the rate of tax slab of the RD holder.

7. PPF

The public provident fund is established by the central government. One can voluntarily open an account with any nationalized bank,selected authorized private bank or post office. The account can be opened in the name of individuals including minor.

The minimum amount is Rs.500 which can be deposited. The rate of interest at present is 8.7% per annum, which is also tax-free. The entire balance can be withdrawn on maturity. Interest received is tax free. The maximum amount which can be deposited every year is Rs. 1,00,000 in an account. The interest earned on the PPF subscription is compounded. All the balance that accumulates over time is exempt from wealth tax. Moreover, it has low risk – risk attached is Government risk. PPF is available at post offices and banks.


Interest earned is fully exempted from tax without any limit. Annual contributions qualify for tax rebate under Section 80C of income tax. Contributions to PPF accounts of the spouse and children are also eligible for tax deduction. Balance in PPF account is not subject to attachment under any order or decree of court. But, Income Tax authorities can attach the account for recovering tax dues. The highest amount that can be deposited is 1,00,000. Tax bracket for PPF is EEE (i.e. Exempt,Exempt,Exempt). So contribution is exempted under 80C, Interest earned is tax exempted and withdrawal is also tax exempted

One can withdraw the investment made in 1st year only in 7th year. However, loan against investment is available from 3rd financial year.

8. NPS

New Pension System (NPS) is an initiative taken by Pension Fund Regulatory Development Authority (PFRDA). The scheme is aimed at promoting income security for its investors at their old age and is also an investment tool that provides market-based returns.


This is a defined contribution pension scheme, meaning under NPS a customer will invest a pre-defined sum every month in a fund chosen by him/her and at the time of retirement will have a lump sum amount depending on the performance of that fund.


This is different from the earlier pension system where the amount one received every month after retirement was set by the government and increased periodically (also called defined benefit system). Those who are under the NPS, after retirement they will have to depend on their corpus for their monthly pension. Although started as a pension system only for the government employees, now NPS has been opened to people from the private sector. NPS is regulated by Pension Fund Regulatory and Development Authority ( PFRDA).

Calculate PIVOT POINTS for Resistance and Support Level of a stock

This is high level way of calculating support and resistance level.

PIVOT POINT = P

H = PREVIOUS DAYS HIGH
L = PREVIOUS DAYS LOW
C = PREVIOUS DAYS CLOSE

7 Deadly Mistakes of Day Traders

1. Unplanned Trading

The most important move a Intraday trader can make is to develop a trade plan.
the trade plan should include the money you are gping to invest. The money has to be consistent and avoid crossing the line. Also, one should plan the entry and exit point and stop loss points before entering in trade.

Calculate Range for Stocks for Intraday Trading

There are different strategies for selecting stocks for intraday trading.  i use the historical data strategy method.  It will give you a fair idea of the range the stocks ranges for most of the days.

Download Historical data for all NSE Stocks in One go

I was looking for an excel that could download data for all the nse stocks in one go. I wrote macro, searched the internet, tried a lot of things. But, they required a lot of work.

Download End of Data NSE Equity Stocks Data - Bhavcopy

Latest equity data can be downloaded in csv and dbf format from nse site.

URL :   http://www.nseindia.com/content/equities/cmbhav.htm

Do' and Don'ts of Intraday Trading

1. Intraday trading is independent each day irrespective of how it was yesterday, week before, and month before. It has to be tracked every day in the right fashion depending on the market that day.
2. Track the market each day.

INTRADAY TRADING

Intraday trading is the most riskier kind of trading. It is also very stressful kind of trading. You have to monitor investments every minute.Any time the market can go up and any time it can go down.  It is not everyone cup of tea. You need to have a high risk appetite to do this kind of trading.