Basic formula for trading in stock market used by Warren Buffet

This formula was given by Benjamin Graham.
You might wonder who Benjamin Graham is. He's the man who taught Warren Buffet, the richest man in the world who earned a lot of his wealth from stock markets around the world.

The formula is: Value= EPS (8.5+2g), where

Value = Value of the stock in rupees (if you are investing in India)
EPS = Earnings Per share in rupees (if you are investing in India)
g = Growth rate in per cent


For instance, assume that a stock like TCS' value as of today is Rs 1,240 and its EPS is Rs 57.65. Now, these two figures can help us arrive at a growth rate in terms of percentage at which the company's profits need to grow to sustain a price of Rs 1,240.
Let us calculate 'g' for TCS by substituting the assumed values in Graham's formula.
1,240 = 57.65 * (8.5 + 2*g)
Therefore, 1,240/57.65 = 8.5 + 2*g
Therefore, 21.5 = 8.5 + 2*g
Therefore, 21.5 � 8.5 = 2*g
Therefore, 13 = 2*g
Therefore, g = 13/2
Therefore, g = 6.5.


Suppose that,Tata Steel needs to grow by a mere 0.2 per cent for next 7-10 years to sustain it's price.
Do you think a huge company like Tata Steel will grow only at a mere 0.2 per cent? Of course not. It is a promising company with a sound management that can propel the company to much higher growth rate than 0.2 per cent.
Normally, a company that is expected to clock higher growth rates than 'g' is considered as a good buy. But this should not be your only tool to identify a stock could increase in value in the future.

My experience of one month in forex trading

I started Forex trading last month. I found it really exciting. I had started out with $100 and managed to earn a profit of $1500. I know it is paltry but that is a good start. I could have earned more had I not made few loss making moves. The trading platform also helped me a lot. You also can start making money through forex trading with as little as $100[payable through credit card]within minutes with easy forex.

Why margin or day trading is best in present scenario

Sensex is hovering around it's life time high. Stocks are being traded at a price you wouldn't have imagined three years ago. Foreign investors are pumping in lot of money. There are rumours that illegal money is fueling this growth. So, it is a disaster waiting to happen that the stock market crashes.
The best option is to make use of the volatility of the stock market and indulge in day trading or margin trading. What is more is that you don't need to have complete money in your bank account to do day trading. There are various products.
example: In one product in order to do day trading you may just need a percentage of the actual value of the stocks. It ranges from 5%-21%.What is more you can do this trading online and you just have bother about it during trading hours.
An average investor can make INR 250 to INR 100000 every trading sessions.
Philosophy of day trading is to buy stocks in lower price and sell it in higher price or vice versa. This can also be called swing trading. Most brokers,however square off before the closing bell ,irrespective of whether you are making profits or loss. so you must make your move before this. Hence, while doing online trading you must ensure that you have a good Internet connection as well as back up.

ICICI to start overseas investing

ICICIdirect.com, the online broking arm of ICICI Securities, today launched its overseas trading service that will allow its resident Indian customers to buy and sell equities across 13 US stock exchanges, including NYSE and Nasdaq.

It’s uncertain how well overseas investment services will fare, given the significant gains India’s own Bombay Stock Exchange and National Stock Exchange have seen over the past year, making the country one of the most attractive investment destinations worldwide. Market analysts say Indian investors’ lack of knowledge of overseas markets will also serve as a speed bump to placing their money in overseas equities and funds.

The Indian company is looking for similar tie-ups in other parts of the world, such as Europe, to allow Indian investors to buy equities listed on London Stock Exchange, or other markets, where the regulations permit such investments.

However,the forms are not yet available in most branches.