Comparison - BULL & BEAR Market

A bull market is a rising market. In a bull market, investors are positive. The economy tends to be strong. Unemployment is low. Consumers are spending money, which increases business profits. When businesses profit, investors demand to share a piece of the pie -- they buy stocks and hang on tight to watch the money roll in. The supply of shares, then, is low -- no one wants to give up their piece of the widget pie. The competition to acquire those much-coveted shares becomes fierce, which drives the prices up even higher. Investors take risks because they feel good about their chances of making the big bucks.

A bull market is when the market appears to be in a long-term climb. Bull markets tend to develop when the economy is strong, the unemployment rate is low, and inflation is under control. The emotional and psychological state of investors also affects the market. For example, if investors have faith that the upward trend in stock prices will continue, they are likely to buy more stocks. If there are more buyers interested in buying shares at a given price than there are sellers who are willing to part with their shares at that price, stock prices will continue to rise.

A bear market is a declining market. It tends to begin with a sharp drop in stock prices across the board. There is usually an eye in the storm, during which stock prices increase. But the storm returns, of course, and the bear market falls and falls and falls. History has shown that a bear market tends to level out at 40 percent lower than when it began. Particularly bloodthirsty bears, like the one that ravaged the U.S. during the Great Depression, might level out at about 90 percent lower.

 
In a bear market, the economy tends to be weak. Unemployment increases. Consumers spend less, which results in lower business profits. As we've seen, this devalues a given company's stock. Investors tend to sell their stocks before the value decreases too much. Investors don't want to take risks because they don't feel good about their chances.

A bear market describes a market that appears to be in a long-term decline. Bear markets tend to develop when the economy enters a recession, unemployment is high, and inflation is rising. Investors lose faith in the market as a whole, which in turn decreases the demand for stocks. Keep in mind that a sustained bear market is something that you should expect to occur from time to time, and that, in the past, the stock market has risen more than it has declined.

About DreamGains

DreamGains Financials India Private Limited formed in 2004 as an independent and privately owned company is build upon the principles of teamwork and partnership.It is a trusted name in the financial service arena and provides you with an entire gamut of services under one roof. It today has emerged as a premium Indian stock consultancy, with an absolute focus on business and a commitment to provide “Real value for money” to all its clients.

Understanding the Importance of Stocks

The stock market can be intimidating, but a little information can help ease your fears. Let's start with some basic definitions. A share of stock is literally a share in the ownership of a company. When you buy a share of stock, you're entitled to a small fraction of the assets and earnings of that company. Assets include everything the company owns (buildings, equipment, trademarks), and earnings are all of the money the company brings in from selling its products and services.

Why would a company want to share its assets and earnings with the general public? Because it needs the money, of course. Companies only have two ways to raise money to cover start-up costs or expand the business: It can either borrow money (a process known as debt financing) or sell stock (also known as equity financing).

The disadvantage of borrowing money is that the company has to pay back the loan with interest. By selling stock, however, the company gets money with fewer strings attached. There is no interest to pay and no requirement to even pay the money back at all. Even better, equity financing distributes the risk of doing business among a large pool of investors (stockholders). If the company fails, the founders don't lose all of their money; they lose several thousand smaller chunks of other people's money.

Perhaps the best way to explain how stocks and the stock market work is to use an example. For the remainder of this article, we'll use a hypothetical pizza business to help explain the basic principles behind issuing and buying stock. We'll start on the next page with the reasons why a restaurant owner would issue stock to the public.

Stocks in publicly traded companies are bought and sold at a stock market (also known as a stock exchange). The National Stock exchange (NSE) is an example of such a market. Modern stock exchanges make buying and selling easy. You don't have to actually travel to New York to visit the New York Stock Exchange. You can call a stock broker who does business with the NYSE, or you can buy and sell stocks online for a small fee.

There are two big stock exchanges in the United States:

• NSE – National Stock exchange
• BSE – Bombay Stock exchange

Shareholders are the people who own shares of stock in a company. Collectively, the shareholders are the owners of the company, since each share of stock entitles the owner to a say in how the corporation is run. Shareholders elect a board of directors to make the company's major decisions, such as the number of shares to be issued to the public.

Interestingly, not all corporations decide to have public shareholders. Corporations can choose to be privately or publicly held. In a privately held company, the shares of stock are all owned by a small group of people who know one another. They buy and sell their shares amongst themselves. A publicly held company is owned by thousands of people who trade their shares on a public stock exchange.

About DreamGains

Dreamgains Financials India Private Limited formed in 2004 as an independent and privately owned company is build upon the principles of teamwork and partnership.It is a trusted name in the financial service arena and provides you with an entire gamut of services under one roof. It today has emerged as a premium Indian stock consultancy, with an absolute focus on business and a commitment to provide “Real value for money” to all its clients. 

Investing Strategies

When it comes to investing in the stock market, the fact is, you can become a millionaire with the right strategy and discipline. Investing in the stock market is easy. Take your first steps and learn to invest in the stock market here.

1. Investing isn't just for high rollers

You don't have to have WarrenBuffett's bank balance to dabble on the stockmarket. Most investment funds will accept monthly deposits or lump sums. You do, however, have to be able to stomach watching your savings fall in value as well as rise.

Investing is a long game, so you must be prepared to lock your money away for a minimum of five years, ideally a decade or more. It is therefore best suited to those with long-term financial goals, saving for retirement or a child's education, for example, rather than a house deposit or a new car. 

 
2. Beware reckless caution

Gambling your money on unpredictable markets can be nerve-wracking. But history has repeatedly shown that over the long term equities outperform cash savings. This is hardly surprising when you consider the pitiful returns offered by banks on savings accounts. The average bank pays just 4%. That is less than the current rate of inflation of 8%, meaning that the majority of cash savers are actually losing money in real terms.

3. There are tax advantages of investing

Savers are entitled to an annual tax-free allowance of up to Rs.1,50,000 under Section 80C. Invest in tax saving instruments to reduce large tax outlay. 

4. Think about what you want to invest in

Cash is traditionally seen as the least volatile asset class, your money is safe unless a bank or building society goes bust. But as shown in point two, its buying power can be eroded by inflation so you end up losing money in real terms. Fixed interest investments, which are loans to companies (in the case of corporate bonds) or governments (known as government bonds or gilts), provide modest but reliable returns are traditionally regarded as lower risk than equities.

However this risk profile is changing and when interest rates start to rise their prices could fall and the risk of capital loss increases. Shares, also known as equities, offer a stake in a company. Shares tend to rise in value when a company does well and fall when it does not.

5. Don't put all your eggs in one basket

If you funnel all your hard-earned cash into shares in one company and the company tanks, you will lose it all. The idea is to 'diversify', which involves dividing up your lump sum across a portfolio and investing portions into varied companies, asset classes or global markets.

As some markets fall, others will rise and cancel out losses. How you spread your money will be led by your attitude to risk. 

6. Think about investing through a fund

You can buy shares directly but this can be expensive, difficult and risky. For a beginner, it's usually better to invest through a mutual fund, which offers an affordable way to buy up lots of different assets without the responsibility of making your own investment decisions

A fund manager then uses their expertise to buy and sell shares (or bonds) on your behalf to maximise returns for investors. There is a charge for investing in funds, but because you are spreading the cost with your fellow investors, it works out much cheaper than it would be for you to invest in the same shares yourself.

7. Spend time choosing the right fund

You need to do your homework to pick one that meets your financial goals and suits your appetite for risk. The funds invest in more than 30 sectors, categorised by asset class (equities, say, or fixed-income); sector type, such as technology or property; and investment style such as growth or income.

Monitor the performance of a fund over a period of time, five or seven years, rather than just looking at whether a fund did well last year. Remember you are playing a long game.

8. Invest regularly to minimise losses

It is impossible to pick the perfect moment to invest to beat the market. Improve your chances of maximising your returns by drip-feeding your money into a fund on a regular basis, for example once a month, rather than investing a lump sum in one go. This is known as rupee-cost averaging. You buy fewer shares if you catch the market when it is rising but you can buy more at cheaper prices if it is falling, averaging out the overall cost and risk.

About DreamGains

Dreamgains Financials India Private Limited formed in 2004 as an independent and privately owned company is build upon the principles of teamwork and partnership.It is a trusted name in the financial service arena and provides you with an entire gamut of services under one roof. It today has emerged as a premium Indian stock consultancy, with an absolute focus on business and a commitment to provide “Real value for money” to all its clients. 

15 Stock Market Investing Tips Every Beginner Should Know!

"Are you an Investor or Trader in Stock Market?"

Here are the 15 Stock Market Investing Tips that you should know

1. Invest with the trend and never against it
2. Diversify your portfolio to negate unsystematic risk
3. Invest a part of your portfolio in debt assets
4. Buy fundamentally strong stocks- Confirm with Technicals for the right price
5. Don’t buy too many stocks- This could negate your overall returns
6. Invest in phases- Invest at every major correction in markets
7. Chose the right broker/demat account for cost effectiveness
8. Don’t let emotions cloud your judgement- Follow a set of investment guidelines and stick to it
9. Review your portfolio every 3 months – Tactical asset allocation
10. Look for value in a stock by analysis key fundamental data
11. Have complete knowledge of your portfolio
12. Set buffer investment aside for additional investments
13. Be prepared to stay away from markets when not suitable
14. Have realistic expectations from the market and portfolio
15. Never borrow and invest- Invest only surplus funds

About DreamGains

Dreamgains Financials India Private Limited formed in 2004 as an independent and privately owned company is build upon the principles of teamwork and partnership.It is a trusted name in the financial service arena and provides you with an entire gamut of services under one roof. It today has emerged as a premium Indian stock consultancy, with an absolute focus on business and a commitment to provide “Real value for money” to all its clients. 

Online Stock Brokers

Below are the latest account opening charges and annual maintenance charge for all the major brokers in India.

Broker name		A/C Opening charge	Yearly Maintenance	Intraday brokerage
	Trade Jini	Rs 300	Rs 300	Rs 20 per trade
	RKSV Security	Rs 300	Rs 300	Rs 20 or unlimited plan starting Rs 1999/month
	Trade Smart Online	Rs 400	First year free. From next year Rs.300	0.007% or Rs 7 per lot
	Compositedge	Rs 300	Rs 0	Rs 18 per trade
	Angel Broking	Rs 350	Rs 300	.06%
	AXIS Direct Brokerage	Rs 999	Rs. 400	.05%
	Bonanza	Rs 600	Rs 275	.05%
	Canmoney	Rs 200	Rs 200	.01%
	Geojit BNP Paribas	Rs 800	Rs 400	.03%
	HDFC Security	Rs 999	Rs. 550	Higher of 25 or .05%
	ICICI Direct	Rs 975	Rs. 500	.05%
	IDBI Paisa Builder	Rs 700	Rs 350	.08%
	Indiabulls	Rs 1350	Rs. 450	.05%
	India Infoline	Rs 750	0 Free lifetime	.05%
	Kotak Securities	Rs 750	Rs 50	.06%
	Reliance Money	Rs 950	Rs 210	.035%
	Motilal Oswal	Rs 550	Rs 900	Buy - Nil Sell - .25% to .4%
	Religare	Rs 499	Rs 300	.06%
	SBI	Rs 500	Rs 386	.05%
	Sharekhan	Rs 750	Rs 441	.1%
	SMC India	Rs 499	Nil	.03%
	Ventura	Rs 1000	Rs 400	.05%
	Zerodha	Rs 600	Rs 400	Rs 20 or .10% whichever is lower