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Large Cap vs Mid Cap vs Small Cap: Key Differences That Actually Matter

Are you aware that one of the most fundamental trading methods is to trade trend pullbacks? Yes! There are numerous strategies to earn from pullback trading. You may profit from trading pullbacks across all time frames. This is because a trend can occur on any time scale, from the 5-minute to the monthly. Before we get into commonly used pullback strategies we would like you to know that at Zebu, one of the fastest-growing brokerage firms in the country, we have created the best Indian trading platform with the lowest brokerage for intraday trading. In today’s blog, we’ll present six profitable pullback trading strategies, but first, let’s define pullback trading: What does the term “Pullback Trading” mean? A pullback is a temporary halt or little decline in the price of a stock or commodity that occurs during an ongoing increase. A pullback is virtually synonymous with retracement or consolidation. The term “pullback” refers to brief price drops – say, a few consecutive sessions – before the uptrend resumes. Following a significant upward price movement, pullbacks are sometimes considered as buying opportunities. For instance, following a great earnings report, a stock may have a significant jump before reversing as traders liquidate existing positions. On the other side, positive earnings are a fundamental indicator that the stock will continue to climb. Most pullbacks see a security’s price move to a technical support level, such as a moving average or pivot point, before resuming its uptrend. Traders should pay special attention to these important support levels, as a breach below them may indicate a reversal rather than a retreat. Now that we understand what pullback trading is, let us explore several tactics for trading pullbacks: 1. Pullback to a trendline Determining the trend’s direction should be quite straightforward. The swing high and low structure is the most straightforward way to recognise a trend. An uptrend is defined by a series of higher highs followed by a series of higher lows. Whereas a downtrend is defined by a series of lower lows and lower highs. The disadvantage is that trendlines are frequently validated more slowly. Three contact points are required to validate a trendline. You can always link two random locations, but it is only when you reach the third that you have a true trendline. As a result, traders can only trade the trendline pullback at the third, fourth, or fifth contact point. While trendlines perform well in conjunction with other pullback tactics, as a stand-alone strategy, the trader may miss numerous opportunities if trendline validation takes an extended period of time. 2. Pullback to moving average Without a question, moving averages are one of the most often utilised tools in technical analysis, and they may be used in a variety of ways. Additionally, you can utilise them to trade pullbacks. A moving average of 20, 50, or even 100 periods could be used. It is irrelevant because it is entirely dependent on whether you are a short-term or long-term trader. Shorter-term traders utilise shorter moving averages to get hints more quickly. Naturally, shorter moving averages are more prone to noise and false signals. On the other side, longer-term moving averages move more slowly and are less subject to noise, but may miss short-term trading opportunities. Consider the advantages and downsides for your own trading. 3. Pullback after a breakout Breakout pullbacks are extremely prevalent, and probably the majority of traders trade this price action pattern. Pullbacks following breakouts are frequently seen at market turning points, following the price breakout of a consolidation pattern. The most often used consolidation patterns are wedges, triangles, and rectangles. Open range breakout is another common strategy. Once the day’s 15 minutes low and high are marked, traders enter a long position once the upper limit is broken on a good volume. In this situation, it would be ideal to wait for a pullback to the vwap or the 15-minute high for a better risk:reward potential. As we mentioned before, trading and investments requires the best Indian trading platform and the lowest brokerage for intraday trading.. As one of the best brokerage firms in the country, we have created a powerful trading platform that makes analysis easy for you. To know more about its features, please get in touch with us now

Large Cap vs Mid Cap vs Small Cap: Key Differences That Actually Matter

In India, there are several investment opportunities that give attractive returns. With so many alternatives, it’s understandable that one would be confused about where to invest. To determine which investment channel is the ‘best,’ we must first assess an individual’s requirement and risk tolerance. There are investment solutions that are tailored to an individual’s objectives and needs. Indians prefer to invest in government-backed securities since they are viewed as safe investment vehicles. The following are a handful of India’s most popular investment avenues: If you are considering investing then you need to make sure that you use the best broker for trading with the lowest brokerage on offer. Zebu empowers your online stock trading journey with a state-of-the-art trading platform as well. Bank Fixed Deposit (FD) Bank Fixed Deposit (FD) Bank FDs pay a substantially greater interest rate than standard savings bank accounts. 5-year tax-saving FDs are tax-deductible under Section 80C of the Income Tax Act, 1961, and investors can deduct up to Rs 1,50,000 per year. Senior citizens receive a little higher rate of interest on FDs. The rate of interest varies according to the duration of the investment, the amount invested, the resident status (NRI or not), and the bank. FDs are subject to a lock-in term. If you desire to withdraw within the lock-in period, the bank will charge you a penalty in the amount of interest deducted from the investment. The following are the primary features of bank deposits: You receive guaranteed returns over time. The most suitable investment for risk-averse investors. Partial withdrawals are permitted, as is borrowing against the balance. Public Provident Fund (PPF) PPF investments are subject to a 15-year lock-in term. PPF is regarded as one of the safest investments due to the scheme’s governmental guarantee. As with bank FDs, PPFs pay a substantially greater interest rate than a standard savings bank account. PPF’s key attributes include the following: Best suited for long-term financial goals due to the scheme’s 15-year lock-in period. Because the investment is not market-linked, it provides guaranteed returns over time. You have the choice of redeeming the entire corpus or extending the account for a five-year period. National Pension Scheme (NPS) The NPS is another government-sponsored retirement programme. The Pension Fund Regulatory and Development Authority manages the scheme (PFRDA). The NPS is made up of a variety of investments, including liquid funds, term deposits, and corporate bonds. There are numerous NPS schemes from which you can choose according to your needs. Interest rates vary amongst funds. NPS’s primary characteristics include the following: The scheme is offered to employees in all sectors. The scheme allows for annual tax deductions of up to Rs 2 lakh under the Income Tax Act, 1961. You can manage your portfolio passively or actively. Sovereign Gold Bonds Sovereign Gold Bonds Indians have a strong affinity toward the yellow metal. Gold investments are made through the purchase of gold jewellery, coins, and bars. Apart from real gold, investors can invest in gold through gold ETFs and sovereign gold bonds. SGB’s primary characteristics include the following: Investing in gold enables you to protect yourself against inflation. Due to the inverse relationship between gold and stock markets, investing in gold functions as a hedge against stock market declines. Gold’s price does not fluctuate dramatically over time, providing you with capital protection. SGBs give an interest of 2.5% per annum. The lock-in period is 8 years. SGBs are issued by the RBI. 7.75% GoI Savings Bond 7.75% G-Sec bonds replaced the previous 8% savings bond. These bonds were initially issued in 2018. As mentioned in the title, investors get annual interest at a rate of 7.75 percent. These bonds can be purchased for as little as Rs 1,000. The following are the primary characteristics of 7.75 percent GOI Savings Bonds: Your investments are guaranteed by governmental assurances, which safeguard your capital. You receive an assured annual rate of return of 7.75 percent. Recurring Deposit (RD) A recurring deposit is an alternative to a fixed-term deposit. Individuals invest a fixed sum on a regular basis using RDs. As with FDs, RDs pay a significantly greater rate of interest than a standard savings bank account. You can use your real estate development investment as collateral to obtain secured loans. RD’s primary characteristics include the following: Investing in an RD over a longer-term enables you to gradually instil a feeling of financial discipline. You do not need a significant sum to begin your investment; a small sum is sufficient. You have guaranteed profits over time because the investment is not tied to the stock market. Now that you have understood more about low-risk investments, you also need to ensure that you use the best broker for trading with the lowest brokerage on offer. Zebu empowers your online stock trading journey with a state-of-the-art trading platform as well.

Large Cap vs Mid Cap vs Small Cap: Key Differences That Actually Matter

In the 1930s, Ralph Nelson Elliott established the Elliott Wave Theory. Elliott argued that stock markets, which are widely assumed to function randomly and chaotically, traded in repeating patterns. In this article, we’ll go over seven crucial things that you should know about Elliot Waves. But before we get into that you need to understand that investment is also about choosing the right technologies. As one of the top brokers in share market, we at Zebu offer trading accounts with lowest brokerage, and an online trading platform to help you focus only on executing your strategies efficiently. We’ll look at the history of Elliott Wave Theory and how it’s applied to trading in this post. Waves Elliott suggested that financial market patterns are determined by investors’ dominating psychology. He discovered that swings in popular psychology usually manifested themselves in predictable fractal patterns, or “waves,” in financial markets. Market Forecasts Using Wave Patterns Elliott made precise stock market predictions based on reliable wave pattern qualities he found. An impulse wave always exhibits a five-wave pattern because it travels in the same direction as the broader trend. On the other hand, a corrective wave net travels in the opposite direction of the main trend. On a smaller scale, five waves can be detected within each of the impulsive waves. Interpretation of the Elliott Wave Theory Five waves advance in the direction of the primary trend, followed by three waves in the direction of the corrective (totalling a 5-3 move). This 5-3 move is then subdivided into two subdivisions of the following upper wave move. While the underlying 5-3 pattern remains consistent, the duration of each wave varies. Consider the following chart, which contains eight waves (five net upward and three net downward) labelled 1, 2, 3, 4, 5, A, B, and C. The impulse is formed by waves 1, 2, 3, 4, and 5, whereas the correction is formed by waves A, B, and C. The five-wave impulse, in turn, generates wave 1 at the next-largest degree, while the three-wave correction generates wave 2. Normally, a corrective wave consists of three independent price movements – two in the direction of the primary correction (A and C) and one in the opposite direction (B). Correction waves 2 and 4 are depicted above. Typically, these waves have the following structure: Take note that waves A and C in this illustration move in the direction of the trend at a greater degree, indicating that they are impulsive and composed of five waves. By contrast, Wave B is anti-trend and thus corrective, consisting of three waves. When an impulse wave is followed by a corrective wave, an Elliott wave degree containing trends and countertrends is formed. As illustrated in the patterns above, five waves do not always go in a net upward direction, and three waves do not always travel in a net downward direction. When the larger-degree trend is downward, for example, the five-wave sequence is downward as well. To apply the idea in daily trading, a trader may spot an upward-trending impulse wave, take a long position, and then sell or short the position when the pattern reaches five waves indicating a reversal is likely. The Verdict Elliott Wave practitioners highlight that just because a market is fractal does not automatically make it predictable. While scientists recognise a tree as a fractal, this does not indicate that the route of each of its branches can be predicted. In terms of practical application, the Elliott Wave Principle, like all other analysis methodologies, has its supporters and critics. One of the critical flaws is that practitioners can always blame their chart reading rather than flaws in the theory. Alternatively, there is an open-ended understanding of the duration of a wave. As we mentioned before investment is also about choosing the right technologies. As one of the top brokers in share market, we at Zebu offer trading accounts with lowest brokerage, and an online trading platform to help you focus only on executing your strategies efficiently.

Large Cap vs Mid Cap vs Small Cap: Key Differences That Actually Matter

When it comes to investing, there are several theories on what makes markets tick and what a given market move indicates. The two major Wall Street factions are divided along theoretical lines: those who believe in the efficient market theory and those who believe the market can be defeated. Although this is a basic distinction, other theories attempt to explain and affect the market, as well as investment behaviour. If you are interested in investing or trading, then consider Zebu to get started, as a reputed share broker company we offer lowest brokerage options and a seamless online trading platform to help you with your investment journey. 1. Theorem of Efficient Markets The efficient markets hypothesis (EMH) continues to be a point of contention. According to the EMH, the market price of a stock integrates all available information about that stock. This signifies that the stock is priced appropriately until a future event alters the price. Given the uncertainty of the future, a devotee of EMH is significantly better suited to owning a diverse range of companies and gaining from the market’s overall increase. You either believe in it and employ passive, wide market investment strategies, or you dislike it and concentrate on stocks with high growth potential, undervalued assets, and so on. Those who oppose EMH refer to Warren Buffett and other investors who have repeatedly outperformed the market by identifying irrational pricing inside the broader market. 2. The Fifty-Percent Rule The fifty-per cent principle predicts that an observed trend will experience a price correction equal to about half to two-thirds of the change in price before continuing. This suggests that if a stock has been rising and gained 20%, it will lose 10% before continuing to increase. This is an extreme example, as this rule is frequently used for the short-term trends on which the technical analysts and traders trade. This correction is considered to be a normal component of the trend, as it is typically triggered by fearful investors taking profits early in order to prevent being caught in a true trend reversal later on. If the correction is greater than 50% of the price change, it is interpreted as a sign that the trend has failed and the reverse has occurred early. 3. The Greater Fool Hypothesis According to the greater fool theory, investing is profitable as long as there is a greater fool than yourself willing to purchase the investment at a higher price. This means that you can profit from an overpriced stock as long as another party is prepared to pay a premium to acquire it from you. As the market for any investment overheats, you eventually run out of fools. Investing on the basis of the larger fool theory entails disregarding valuations, earnings reports, and all other data. Ignoring data is just as risky as paying too much attention to it, and hence those who believe in the greater fool hypothesis may find themselves on the losing end of a market correction. 4. The Theory of Odd Lot The odd lot hypothesis uses the sale of odd lots — small blocks of shares held by individual investors – to calculate the best time to invest in a firm. When small investors sell out, investors use the odd-lot theory buy-in. The underlying idea is that small investors are frequently incorrect. The odd lot theory is a contrarian technique based on a deceptively simple sort of technical analysis – odd-lot sales measurement. How successful an investor or trader is in applying the theory is highly dependent on whether he investigates the fundamentals of the firms the theory suggests or simply buys blindly. 5. Prospect Theory Prospect theory is often referred to as loss aversion theory. According to prospect theory, people’s views of gain and loss are distorted. That is, people are more fearful of loss than of gain. When people are presented with two contrasting prospects, they will choose the one that they believe has a lower probability of ending in a loss over the one that promises the most gains. For instance, if you offer a person two investments, one that has returned 5% each year and another that has returned 12%, lost 2.5 per cent, and returned 6% in the same years, the person will choose the 5% investment because he places an irrational premium on the single loss while ignoring the larger gains. Both alternatives in the previous example generate a net total return after three years. As a reputed share broker company we offer lowest brokerage options and a seamless online trading platform to help you with your investment journey. Contact Zebu to know more on how to get started on your share market investment journey.

Large Cap vs Mid Cap vs Small Cap: Key Differences That Actually Matter

Technical analysis is useful in a variety of situations. It can be used to trade stocks, futures, and commodities, as well as fixed-income securities, FX, and other financial instruments. Technical analysis is the art and science of predicting future prices based on the analysis of historical price movements. Using historical market data, mass investor psychology is examined. The data set comprises information about the price, the date, and the volume. A price chart provides the most useful information for reading a historical description of a security’s price movement over time. Charts are significantly more readable than a table of numbers. Volume bars are shown at the bottom of most stock charts. It is simple to recognise market reactions before and after major events, past and present volatility, historical volume or trade levels, and relative strength of the company vs the index using this historical image. Before we get into the importance of technical analysis indicators, you need to have the right technologies. At Zebu, one of the fastest-growing brokerage firms in the country, we have created the best Indian trading platform with the lowest brokerage for intraday trading. If you would like to simplify your option trading and investment game, we are here to help you out. The following are five indicators that every investor should be aware of: 1) The Relative Strength Index (RSI) The RSI is a momentum oscillator that measures the amount and pace of directional price changes. RSI calculates the momentum of a stock with the rate at which a price rises or falls. The RSI calculates momentum by dividing the number of higher closes by the number of lower closures. The RSI of stocks that have experienced more or stronger positive movements is greater than the RSI of equities that have experienced more or stronger negative changes. The indicator has a 70-point top line, a 30-point lower line, and a 50-point dashed mid-line. When a price rises rapidly, it is called overbought at some time (When the RSI crosses 70). Similarly, when the price falls swiftly, it is termed oversold at some point (when the RSI passes 30). The RSI level is a gauge of the stock’s recent trading strength. The slope of the RSI is proportionate to the rate at which a trend changes. The RSI’s move is directly proportional to the degree of the movement. 2) Moving averages In technical analysis, moving averages are one of the oldest and most useful technical indicators. When used in conjunction with other oscillators such as MACD and RSI, moving indicates a trend in a “smoothed” manner and can provide trustworthy signals. The three types of moving averages are simple moving average (SMA), exponential moving average (EMA), and weighted moving average (WMA). Moving averages for stocks are commonly used for 10 days, 21 days, 50 days, 100 days, and 200 days. The simple moving average is the most widely used moving average (SMA). Single SMAs can be utilised to spot a trend, but we found that using a dual or triple moving average is more effective. 3) Stochastic Oscillator The Stochastic Oscillator is a momentum indicator that depicts the current close’s position in relation to the high and low ranges across a set of periods. Closing levels that are constantly near the top of the range suggest accumulation (buying pressure), while those that are consistently towards the bottom of the range indicate distribution (selling pressure). The premise behind this indicator is that prices tend to close near their highs in an upward-trending market and near their lows in a downward-trending market. 4. Bollinger Band John Bollinger developed Bollinger Bands as a technical trading technique in the early 1980s. Bollinger Bands are used to define high and low points relative to each other. Prices are high in the top band and low in the lower band by definition. This definition can help with pattern recognition and can be used to compare price action to indication behaviour. Bollinger Bands are a series of three curves that are drawn in connection to stock prices. The middle band, which is usually a simple moving average that acts as the base for the higher and lower bands, is a gauge of the intermediate-term trend. Volatility, which is often the standard deviation of the same data used for the average, determines the gap between the upper and lower bands and the central band. You can change the default parameters, which are 20 periods and two standard deviations, to fit your needs. 5) Parabolic SAR (Parabolic Stop and Reverse) SAR, or stop-and-reversal, is a technical analysis strategy that uses a trailing stop and reverse method to discover appropriate exit and entry locations. J. Wells Wilder came up with this strategy. Basically, one should sell if the stock is trading below the parabolic SAR (PSAR). If the stock price is higher than the SAR, it is a good time to buy (or stay long). As we mentioned before, investing or trading you need the right tools. We at Zebu offer the best Indian trading platform and the lowest brokerage for intraday trading. As one of the best brokerage firms in the country, we have created a powerful trading platform that makes investing easy for you. To know more about its features, please get in touch with us now.

Large Cap vs Mid Cap vs Small Cap: Key Differences That Actually Matter

Paytm is a startup that has gained a lot of attention for the way it has made it possible for Indians to recharge their phones and pay their bills online. Vijay Sharma, the founder, is the face of pure inspiration. He is a typical ‘small-town lad’ who had huge goals and worked late to build his firm. Many in the industry were looking forward to Paytm’s first public offering (IPO), but it fell short of expectations and disappointed most investors. However, like with any failure, there are lessons to be gained from the Paytm IPO disaster, which should be remembered when investing in future IPOs. Are you planning to invest? Before you start investing, it is important that you do so with one of the best share brokers in the country. At Zebu, we have the lowest brokerage for investments and also support you with a highly advanced online trading platform to help you analyse stocks and execute your trades. The history Investing in an IPO should be a well-considered decision, and investors should do their homework before devoting cash to any IPO, whether it is a well-known firm or not. The prospect of an IPO was clearly attractive in the case of Paytm, and the company’s exponential growth after demonetization is well documented. However, the corporation did make several mistakes, which analysts now recognize. Some of the corporate transitions, for example, were savvy and took advantage of opportunities, while others were risky. Learning Lesson Many experts consider Paytm to be a very new-age business strategy. As a result, the same experts think that when investors choose to join into any transactions with such firms in mind, such as making IPO investments, they must understand the company’s dynamics, understand prospective valuations, and evaluate the company’s future plans and growth strategy. As a result, investors who invest in an IPO cannot blame the IPO’s failure on their own lack of understanding prior to investing. The most important thing to remember when investing in an initial public offering (IPO) is to be tremendously confident in the firm. Second, a small number of radical businesses/companies have specialty technology and market share. Although some companies do well, such as Zomato and Nykaa, some do not have such blockbuster lists. The Paytm IPO was expected to be a blockbuster, but values were pushed well past their limitations. Investors frequently make mistakes in how they evaluate a firm and base their assumptions on that, rather than conducting a thorough fundamental analysis. Educate yourself and make wise investments. Paytm’s stock plummeted by 58 percent after the business was listed on the stock exchange. It went from a $20 billion valuation to a meager $7.8 billion valuation. Now, the company is frantically trying to persuade investors of its steady growth trajectory in the hopes of regaining some funds. However, when it comes to IPO investment, people aren’t thinking about Paytm because the company’s mounting expenses and a global sell-off of its stock have cast a pall over its future prospects. Going forward, the most important lesson is to understand the business and then the valuation. If it does not seem fair to you, do not put your hard-earned money into it. Two of the most important checklists for first-time traders and investors are the right online trading platform and the lowest brokerage for investments. As one of the best share brokers in the country, we at Zebu will give you all of this and more. To know more about our services and products, please get in touch with us now.

Large Cap vs Mid Cap vs Small Cap: Key Differences That Actually Matter

Despite the fact that many institutional investors exited the market during the early stages of the epidemic, retail investors flooded in and gained handsomely, particularly in booming technology companies. Playing the market, of course, involves some risk. During the stock market’s unrelenting rally, reports of novices making rookie blunders and seasoned investors falling short came out. Before you start investing or trading, always consider going with one of the best brokerage firms in the country like Zebu. As a top broker in share marketwe have created one of the best stock trading platforms for you to use and invest. Here are six investing blunders you should avoid: 1. Being in a Love-Hate Relationship With a Stock It’s all too easy to fall in love with a stock we’ve invested in and forget why we bought it in the first place when we see it do well. Always remember that you purchased this stock in order to profit from it. If any of the fundamentals that prompted you to invest in the company change, you should consider selling the stock. 2. A Lack of Patience If you gradually and steadily build your portfolio, your long-term returns will be higher. Expecting a portfolio to do something it wasn’t designed to accomplish is a recipe for disaster. This implies you’ll need to keep your portfolio growth and return goals in check, as well as having a realistic time horizon in mind. 3. Concerns About Investing One of the world’s most powerful investors, Warren Buffett, recommends against investing in companies whose business strategies you don’t understand. The safest method to avoid this is to invest in a diverse portfolio of exchange-traded funds (ETFs) or mutual funds. If you opt to invest in specific stocks on your own, be sure you have a thorough understanding of the firm. 4. Entering without a strategy Going through with investments without considering issues such as one’s financial goals, risk appetite, or investing time horizon is not recommended. These are key considerations to address before beginning your financial adventure. As a result, it’s critical to keep track of these aspects, perform the appropriate back calculations, and ensure that one’s portfolio is on track to accomplish those objectives. It is suggested that you seek the advice of a financial advisor in this regard. 5. Attempting to Forecast the Market If you don’t have the proper information, attempting to time the market might have a negative impact on your returns. It’s extremely difficult to time the stock market perfectly, and there are numerous biases at play while attempting to do so. Even institutional investors have difficulty precisely predicting this. Other approaches, such as SIPs, are therefore recommended for averaging out one’s investment over time. Furthermore, it is critical to allow your assets to compound and let the force of compounding to work its magic. 6. Waiting for a Break-Even Situation Getting even is another approach to ensure that any profit you’ve made is wiped out. It suggests you’re delaying selling a loser until its original cost base is reached. In behavioural finance, this is referred regarded as a “cognitive malfunction.” When investors fail to recognize a loss, they lose in two ways. To begin with, they don’t want to sell a loss since it will continue to devalue until it is no longer worth anything. Second, there’s the lost opportunity cost of not putting those funds to greater use. Coming to a close… Making mistakes is unavoidable in the world of DIY investing. Knowing what they are, what you’re doing to make them, and how to stop them will help you succeed with your investments. Make a well-thought-out, planned stock market guidance strategy and stick to it to avoid making the blunders described above. It is advisable to avoid DIY without understanding and seek the advice of a financial counselor to fulfill one’s financial goals, just as one would not self-diagnose an illness and go to a doctor. As one of the top brokers in share market, we have created the best stock trading platforms for you to invest in wisely. Our tool is designed to help investors and traders alike to analyse a company with a wide range of indicators and screeners as per your strategy. As one of the best brokerage firms in the country, we invite you to open a trading and investment account with us.

Large Cap vs Mid Cap vs Small Cap: Key Differences That Actually Matter

We Indians use apps like Google, Amazon, and Instagram on a daily basis in today’s digital environment. A Dell or MacBook laptop is likely to be used by you or someone you know. Many of the world’s largest corporations, including these, are headquartered in the United States but have a global presence. Have you thought about investing in such high-growth businesses but are hesitant due to their location? Let’s have a look at some of the benefits of investing in US stocks as an Indian. For when you consider investing or trading in the share market, we at Zebu, a share trading company offer the lowest brokerage for intraday trading and are one of top brokers in share market. 1. Access to multinational corporations All of the major technology businesses, such as Google and Apple, as well as well-known brands like Nike and Starbucks, are based in the United States. Another thing that all of these US businesses have in common is that they are all global. These businesses are well-known all across the world. The US equities market has a market value of $47.32 trillion due to its global prominence, while the Indian equity market has a market capitalization of $3.21 trillion. As a result, investing in these businesses can help you broaden your horizons. 2. Fractional Shares The current price of an Apple stock is 173 dollars or nearly 12,500 Rupees. Similarly, an Amazon stock currently costs 3321 dollars or over 2.3 lakh rupees. One could argue that US stocks are overvalued and not a long-term investment. However, one fantastic feature of the US stock market is the ability to buy fractional shares. Let’s say you only have Rs. 20,000. You can put Rs 5,000 into each of your four favorite American companies, and so on. This characteristic of fractional shares allows investors to spread their money across a number of companies. You need not own an entire share. 3. Expanding your horizons Political unrest, elections, budget cuts, and natural calamities can have a significant impact on a country’s stock market. Diversifying your holdings is a fantastic way to protect your investments from a sudden drop. While gold and bonds can help you diversify your portfolio, investing in US equities can help you diversify your portfolio while also setting you up for potentially good profits. 4. The monetary value When you buy equities in the United States, you are doing so in dollars. Today’s dollar-to-rupee exchange rate is 76.33. Half a decade ago, it was much less. When compared to the rupee, the US dollar has gained by more than 18% in the last five years. When you invest in US equities, you’re not just betting on the stock’s worth, but also on the value of the dollar. If the value of the dollar rises against the rupee, so does the value of your investment. 5. Global Reach We live in a world that needs technology to emerge every year. The United States is endowed with resources and draws talented minds from throughout the globe. Companies in the United States are always inventing to offer revolutionary solutions to the market. Companies like Tesla, Meta, and Amazon have been working on disruptive solutions in numerous fields in recent years. You can join this wave of innovation by investing in such US enterprises. Conclusion Portfolio diversification is critical for any investor. For an Indian investor looking to invest in global companies and innovative solutions, US stocks are a good choice. And with Zebu, you can do that with ease. We at Zebu, a share trading company make it easier for you to invest in the share market by offering the lowest brokerage for intraday trading and are one of top brokers in share market.

Large Cap vs Mid Cap vs Small Cap: Key Differences That Actually Matter

The purpose of investing in stocks and other securities is to accumulate wealth. For some investors, the sooner this aim is met, the better. Traders develop techniques to trade that maximize their profit in the field of trading, particularly when trading equities and shares. Of course, when trading is taking place, the stock markets and exchanges have their fair share of malpractice, and some traders will go to considerable measures to make a profit. Insider trading, as the term implies, is trading by people who have insider knowledge of a company’s stock and its trends. Before we get into more about insider trading, it is important to know that you need to analyse them for maximum profits. At Zebu, one of the fastest-growing brokerage firms in the country, we have created the best Indian trading platform with the lowest brokerage for intraday trading If you would like to simplify your option trading game, we are here to help you out. 1. How insider trading works Insider trading is defined as trading in stocks, such as bonds and equities, by specified corporate ‘insiders’ who have unique access to information. Simply put, these insiders are aware of a unique security before any information about it reaches the general public. Insider trading occurs when insiders invest in equities while the general public is unaware of the stock. If such trade is discovered by regulatory authorities, the ‘insider’ will face severe consequences. 2. When is it Illegal to Trade Insider Information? According to SEBI laws, the Securities and Exchange Board of India, or SEBI, is strongly opposed to insider trading. The fact that insider trading offers some investors an unfair edge in the stock market is the explanation behind the practice being labeled as “illegal.” Insider trading is usually done by people who, as a result of their job, have exclusive access to specific types of strategic information about a company’s shares. Knowing a company’s private information can have a big impact on whether you invest and make money or not. Insiders, for example, may know if a company’s quarterly results will reveal a large profit, causing stock prices to rise. They can take advantage of this by investing a large sum of money in the stock in question, nearly ensuring a large profit. Insider trading is regarded criminal from this perspective. Insider trading, on the other hand, is not unlawful when investors buy stocks and all concerned investors are aware of certain information that has an impact on their trading profit or loss. 3. Which Information is insider information? Material information regarding a stock or a firm in the trading world refers to any information that could have a major impact on a trader’s or investor’s decision to trade (buy or sell) specific securities. Non-public information is information that is not formally available to the public. Insiders use substantial information that is not available to the general public to gain an unfair advantage in trading. Insider trading is prohibited regardless of how the information was obtained or whether the ‘insider’ is employed by the company. As an example, suppose a friend tells you about insider information (non-public information). This information is then passed on to a family member. On the said stock, the family member trades using this knowledge. In such a circumstance, all three parties implicated might face criminal charges or severe penalties. As we mentioned before, investing or trading you need the right tools. We at Zebu offer the best Indian trading platform and the lowest brokerage for intraday trading. As one of the best brokerage firms in the country, we have created a powerful trading platform that makes investing easy for you. To know more about its features, please get in touch with us now.

Large Cap vs Mid Cap vs Small Cap: Key Differences That Actually Matter

There will be a plethora of IPOs to invest in in 2022, and there will be no shortage of allotments. This will undoubtedly be a banner year for the Indian stock market, as IPOs abound and investors scramble for a piece of the action. Investors rushed to diversify their portfolios in 2021, when more than 60 initial public offerings (IPOs) were listed. The market is excited about IPO allotment this year, and investors are eager to get their hands on the greatest firm stocks. Trading or investing can be a difficult journey without the right tools. That’s why you need the best Indian trading platform with a wide range of features. With Zebu, one of the best stock brokers in the country, your online stock trading journey will be drastically enhanced. How an Initial Public Offering (IPO) Works An IPO, or Initial Public Offering, occurs when a private firm sells its stock to the general public. Companies begin as private companies with a small number of stockholders, such as the founders and their relatives and friends. Original stockholders of a private firm can include venture capitalists and a variety of financiers. When a company has achieved a significant point in its development and has established itself in its industry, it can apply to be listed and sell its shares to the general public. When this happens, anyone can become a shareholder in the firm and place a bid for a specific number of shares. Nonetheless, even if you desire a specific number of shares, you may not receive the IPO allocation for which you bid, receiving less than you expected, or receiving none at all. You might come upon an upcoming IPO among so many of the others expected in 2022, but how do you guarantee allotment? For a large number of eager investors, this is still an open subject. Looking back not too far in time, in 2021, practically every IPO that was offered was massively oversubscribed. However, there are certain specific things you can do to improve your chances of receiving the allotment you want. How to Increase Your Chances As an investor, the fact that an IPO is coming up may excite you, but it’s not a good feeling when you don’t get the allocation you expected, or worse, no allotment at all. As a result, you should understand how to improve your chances of receiving an IPO allotment by using the approaches listed below: Early Application – When an initial public offering (IPO) is announced, you have three days to apply. Instead of bidding for allocation at the last minute, it’s a good idea to do so within the first couple of days. If at all possible, bid on an allotment the same day it is made available. This implies you should have done your study and analysis on the firm in issue well ahead of time to ensure you desire a piece of its stock. Avoid Confusion – Many investors become confused by the phrases used during the IPO application process. If you want to be certain of receiving an IPO allotment, you need think clearly and understand these terms ahead of time. The distinction between the ‘cut price’ and the ‘bid price,’ for example, is never clear. An investor’s willingness to pay any price that companies decide on at the end of the book-building exercise is referred to as the ‘cut price.’ After the use of the ‘cut price,’ the investor is obligated to bid in the highest price range. Any additional amount is reimbursed if the price is lower than predicted, so investors should buy at the ‘reduced price.’ Avoid Making Mistakes – Filling out IPO application paperwork should not be rushed. Errors in filing forms are common, and these might lead to rejection or the need to refill paperwork. Parent-Company Stocks – If the IPO is for a company that has a parent-company, you should first buy some parent-company stock. This raises your chances of getting an IPO allotment in the company where the IPO is being offered. Open a Demat Account With Zebu, one of the fastest growing share broker companies in India, to invest in any future IPOs as well as a variety of other securities. Simply open a Demat account and you’ll be on your way to a world of benefits and fantastic returns. Like we mentioned earlier, with the right tools your share market journey can be a lot simpler. That’s why Zebu brings to you the best Indian trading platform with a wide range of features.As one of the best stock brokers in the country, your online stock trading journey will be drastically enhanced.