Consider EQUITY To Be Your Third Child

You will understand this better if you are a parent. Parents will do anything for their children's education and upbringing. They sacrifice everything to make sure their kids have the finest lives possible. For the sake of their children's hopeful future, parents are sacrificing their needs. When parents are not working, there is hope that their kids will take care of them. I don't know if a child will take care of themselves or not, but if you want to be independent when you retire, plan on having one more child.

The majority of households have two kids. You should count it as three if you have two. The third is called EQUITY. You must be wondering how we can take care of a third one if we can't afford to take care of two. Consider that you have three kids.

The amount of money parents spend on their children's schooling, extracurricular activities, weddings, etc., is sufficient. About 25 years are needed for this. If you have two children, you may assume you have three. Spend the same monthly money on one child as you do on an equities fund. Repeat for a further 25 years. Whether your real children take care of you or not after 25 years, this third child will take excellent care of you for the rest of your life.

You're probably wondering: Why equity? Why is investing in equity regarded as a low-risk, high-return strategy? You should ask this question, it is nice. Prior to engaging in equity, it is wise to thoroughly understand it.

Let's analyse a straightforward query. What is generally your primary source of income? If you are employed, your salary will be your source of monthly money. Other income from investments or rent if you own real estate that is rented. You make money from your business if you run one.

Who now makes more money is a new question. paid a salary or a businessman? Yes, of course! Businessmen. There are no salaried individuals on the list of the richest people in the world. How do these businesspeople make money? Consider this. In order to operate a business, you must cover costs such as the employee's wage, office rent, loan repayments, power, and other expenses. What businessmen get after conquering all of these challenges is a profit. Additionally, this profit fluctuates every month. Although there are good and bad months, on average, a business makes more money.

The point is that running a business can help you become wealthy. Nothing but a business is equity. A group of these operating enterprises is an equity fund. The business has its ups and downs, including equity. Similar to how you can lose money in your firm, equity funds can also lose money occasionally.

Even if you choose not to manage a business, you can still make money by investing in equity funds that do so. You get higher returns from equity funds than from fixed deposits.

Let's use the scenario where someone starts working at age 25 and retires, say, at age 65. To save for your retirement, you have 40 years. Let's say you save $1 annually in fixed deposits that pay you 7.2% interest. It will take ten years for your money to double. Thus, after 40 years, you will have 16 dollars. However, if you invest the same $1 into equity, which yields 14.4% returns, your money will double in value within five years. Therefore, after 40 years, you will have 256. Major difference

This easy Maths will get you to consider where to put your money. Treat your third child equally, take good care of it, groom it, and it will take good care of you. After all, pleasure and freedom may be purchased with money.

-Kain

REMARKABLE STORY: Satyanarayan Nuwal (SOLAR INDUSTRIES)

Meet Satyanarayan Nuwal, who went from sleeping on railway platforms to building defence equipment worth Rs 35,800 crore. 

Satyanarayan Nuwal was up in the Rajasthani village of Bhilwara, where his father worked as a Government Accountant. He was more concerned with learning about business than he was with receiving a regular education. So, after completing his Tenth Grade, he spent a year with his guru and tried his hand at business.  

At the native and immature age of 18, he made an attempt at a little chemicals and trading company, but it wasn't very successful. At the age of 19, Satyanarayan Nuwal got married and stayed in Chandrapur, Maharashtra, where he battled until 1977. 

The period Satyanarayan Nuwal spent at Chandrapur was difficult. He frequently slept at Railway Stations since he couldn't afford to buy basic necessities. He never gave up hope, though, and it was this unrelenting attitude that brought him into contact with Abdul Sattar Allah Bhai. Although he had an explosives license and a magazine, he had no special interest in exploiting these resources to run a business.  

However, Satyanarayan Nuwal saw a business opportunity in this. 

He understood that there was never enough explosive material. In order to profit from customers looking for ammunition to use in coal mines, Nuwal began renting explosive magazines in 1970. In the end, Satyanaryan Nuwal expanded his business and became into a consignment agent before becoming the biggest explosives dealer in India.  

This idea was finally given flight in 1995 by Satyanaryan Nuwal, who also came up with the idea for and established Solar Industries. Its main office was in Nagpur. Solar Industries first provided explosives to state-owned coal mines. 

The corporation is headquartered in Nagpur and has operations in 65 different nations.

After that, it began producing its own explosives and entering the defence sector.  The company planned to go public in 2006 when its revenue was close to Rs 78 crore and its net profit was close to Rs 11 crore. Satyanaryan Nuwal primarily utilised this money to develop the business over 29 sites and construct 13 additional manufacturing facilities.  

The corporation also started to branch out outside of India about this time, investing in the manufacturing industries of six different countries: Tanzania, South Africa, Zambia, Ghana, and Nigeria. Currently, Thailand, Australia, and Indonesia are among the countries where Solar Industries is striving to construct production facilities.

In 2010, Solar Industries became one of the first private businesses to be authorised by the government to produce explosives for the Indian army. 

As part of the Make In India initiative, the company currently manufactures everything from explosives and propellants to grenades, drones, and warheads. 

From 1,765 crores in 2012 to more than 35,000 crores as of November 2022, the market value for solar industries surged by 1,700% during a ten-year period. 

In 2023, Satyanarayan Nuwal will have a net worth of $190 crores.  

With a 73% stake in Solar Industries, Nuwal has built a $3 billion fortune. He is currently the 72nd richest Indian, according to the Forbes India Rich List.

ERROR THAT “KILLS” TOO MANY TRADERS: And How To Fix It

Most new traders look for the “secret weapon” that will help them to successfully trade the markets.

They want that system or indicator that will eventually lead them from where they are, to where they once dreamed of.

But if you’ve already got some time in this business of trading, you may have noticed that there is no secret.

And those who have more experience, know that the only (simple but hard) way to reach consistency is by:

1. Having the discipline to develop a system that fits your risk profile

2. Having the discipline and patience to follow your system

3. Develop a risk management plan (trade size and risk per trade)

4. A plan to manage your trades

5. Do not take unnecessary risks!

With patience and persistence, by following each one of these steps, undoubtedly you’ll reach your goals. Just focus on each of these aspects, and the results will come by themselves.

But there is a common mistake among traders… A mistake that I did fall prey of: Distraction.

 DISTRACTION

Every day in forums, blogs, trading magazines, etc. traders write about new strategies, indicators, mathematical formulas promising returns never seen before.

The problem is, that in each one of these blogs, posts in forums, magazines, each strategy or indicator or system they talk about a different thing… So at the end of the day, you have 1000 “different” new strategies or indicators.

Then we try some of these strategies, or try some indicator…Sometimes we test it for a few days, some others a few weeks or even some months…

And guess what happens next?

Almost all of the time it turns out to be not such a good idea (that same idea that seemed so great at the beginning).

 

WHAT IS THE RESULT THEN?

Loss of our precious time… sometimes we don’t realize how important time is for us, specially as traders.

 Time does not return, in this case, we wasted our time on something that did not bring anything new, time that we could had used testing the strategy that we have been using, learning more about it.

This happened to me traders at one point, and not infrequently! To some extent, I think it happens to many of us.

We see something new, we “dazzle”, then it comes the phase of “romance” where we see the potential, then we try it, and in the end, we see that the results looked far better on hindsight.

Now, don’t get me wrong … Not everything we try is a bad idea! In the end, these “tests” help us come up with a functional system.

What I’m saying is that most of these “new things” only make us waste our time, therefore, we must have a way to differentiate what things to try and which ones to better forget.

 

So we cannot be wasting our time every day, because this diverts us from our primary plan, and if we keep trying new things every day we’ll never achieve our main goal.

So, what can we do to avoid this mentality to “try everything we find online”?

I call it: The 2 Weeks Rule

 

THE 2 WEEKS RULE

Every day we operate the system that we feel more comfortable, confident, etc.

Whenever you see something new you think you “have” to try. Put it in a list, and keep thinking about it for a week.

If after a week, it still sounds like a very good idea, and still think it’s worth trying it, starting on the second week, dedicate to it an hour a day. See the results on hindsight.

If you still think its worth trying it, then it is time to give this new “thing” formality and add it to the system or methodology you’re currently following.

I think this will help you a lot, but more important than anything else, it will save you valuable time. It will keep you from the “try everything” mentality.

 

HOW CAN THIS HELP YOU AS A TRADER?

Eliminate distractions, and keep trying to reach your main goals.

Stop trying all new indicators, strategies, systems, and focus only on what is worth using The 2 Week Rule.

Manage your time, is the most valuable resource, remember lost time never returns.

Stress in trading is a sign that something is wrong. If you feel stress, think about the cause, and then act to eliminate the problem.

Details Required To Income Tax Return For The Financial Year 2022-2023

 1.   PAN Card Xerox

2.  Aadhaar card xerox

3.  All Savings bank and Current account statement

4.  All Bank Deposit Details (Fixed or RD A/c)

5.  Post office SB Account, RD Account, and Fixed Deposits

6.  Bank Jewel loan Statement

7.  Housing loan Statement

8.  Vehicle loan statement

9.  Land Documents (Purchase and Sales)

10.  Vehicle RC Book xerox (Purchase and Sales)

11.  LIC and Insurance Premium paid receipts or Premium paid statement

12.  Mediclaim Insurance or Health Insurance

13.  School fees paid receipt

14.  Jewel Purchase Details

15.  Investment in other firms or companies

16.  Details of Share Investments

17.  TDS Details

18.  FORM 16A (For Salaries Persons)

19.  ODCC Account and Term loan account (For Business)

20.  Expenses, Purchase, Sales, Receipts, Credit note, Debit note (Business)

Why The Lion Rules The Jungle ?

In the jungle which animal is the biggest of them all ?
I heard you say the Elephant.

Which animal is the tallest ? I heard you say, the Giraffe.

Which animal is the wisest ? I hear you say the Fox.

Which animal is the fastest ? I heard you say the Cheetah.

Among all these wonderful qualities mentioned, where is the Lion in the picture?

And yet we say that the Lion is the king of the jungle.

Why ?

Because the LION is courageous.
The Lion is Bold The Lion walks with confidence The Lion is Fearless The Lion dares to go above and beyond and he is never afraid. The Lion is unstoppable because he believes in himself.

And the Lion make the most of every opportunity he gets, he never let's an opportunity slip from his hands.

So what can we learn from the Lion today ? You don't need to be the fastest, You don't need to be the wisest, You don't need to be the smartest,
Or the most brilliant.

All you need is courage, boldness, the will to try and to believe in yourself.

It’s a winning mindset, that’s all it takes.

Everyone Has a Story in Life - Life Truth

A 24-year-old boy shouted as he looked out the train window….

"Dad, the trees are coming up behind you!"

Dad smiled as a young couple nearby watched the 24-year-old's young behavior with sympathy. Suddenly, he repeated his exclamation.

"Look, Dad, the clouds run alongside us!"

The couple could not help but speak to the elderly man.

Why don't you take your son to a reputable physician? The elderly man said with a smile. My son, who was born blind, just received his eyes today, and we have just left the hospital.

Everyone on the earth has a story to tell. Never pass judgement on someone before getting to know them. You might be surprised by the truth.

MORAL OF THE STORY:

Never pass judgement on someone before getting to know them well. You might be shocked by the truth.

An Office Boy : MOTIVATION STORY

At a very large company, an unemployed man applied for the post of "office boy." 

After an interview, he had to sweep the floor as a test. 

The employer announced, "You are hired." "If you give me your email address, I'll send you the application to complete and the start date." 

I don't have a computer or email, the man answered. 

I'm sorry, but if you don't have an email, you don't exist," the employer said. Whoever does not exist cannot hold the position. 

Without any hope, the man left. He had only $10 USD in his pocket and had no idea what to do.

He made the decision to buy a 10 Kg tomato crate from the grocer and sell the tomatoes door to door after that. He was successful and more than doubled his wealth in less than two hours.

He carried out the action three more times, earning $60 USD, and left for home. The man began to leave earlier each day and return later after realising he could survive in this manner. His money grew by a factor of two to three every day. He soon acquired a cart, a truck and eventually his own fleet of delivery vehicles.

The man's business was among the largest food sellers five years later. He began to make plans for his family's future and made the choice to get life insurance. 

He made an insurance broker phone call and decided on a safety measure. The broker requested his email when the conversation was over. The man answered, "I don't have an email." 

You don't have an email, yet you've managed to create a massive empire, the broker responded inquisitively. Do you consider what you might have achieved if you had access to email? 

After pausing for a while, the man responded, "An office boy!" 

Moral of the story

Don’t be discouraged if something is not in your favor today. Better opportunities are waiting ahead.

Struggles of The BUTTERFLY

A man noticed a butterfly's cocoon.

One day a tiny gap suddenly materialised. He stayed and watched the butterfly try to fit its body through that tiny hole for several hours.

Up until that point, when it appeared to have reached a dead end.

The man made the decision to assist the butterfly. He grabbed a pair of scissors and cut the last of the cocoon off. The butterfly then easily emerged, despite having a bloated body and tiny, shrivelled wings.

The man sat there waiting for the wings to spread out and grow larger in order to support the butterfly without giving it any thought. But it didn't go like that. The rest of the butterfly's life was spent crawling around with little wings and an enlarged body since it was unable to fly.

Despite the man's good intentions, he was unaware that the butterfly's effort to squeeze through the tiny entrance and the constricting cocoon were ways for God to force fluid from the butterfly's body onto its wings. to be ready for flight as it emerged from the cocoon.

Moral of the story:

Life's challenges help us build our capabilities. We must face obstacles on our own and not rely on the assistance of others since without struggles, we cannot develop and become stronger.

CHILD INSURANCE: Too Little Return On Child Plans

-R.Kain

In order to assist build a corpus over time, life insurance firms that sell child plans combine insurance with investments. When the policy matures, the insurance provider will pay a lump payment that can be applied to the child's higher education costs or wedding costs. Maturity benefits are also exempt from tax under Section 10(10D) of the Act, in addition to the tax deduction provided under Section 80C of the Income Tax Act on the premium paid.

Either conventional policies or unit-linked insurance plans are available for children. With child plans, insurers include extras like accidental death and disability coverage. Make sure the plan contains a premium waiver provision in the event of the policyholder's death before purchasing a child plan.

The child or another nominee will get the entire death benefit in the event that the policyholder passes away during the policy's term. These plans also provide the option for partial withdrawals in the event of any pressing financial needs, such as medical care.

To establish a sizeable corpus for the child's financial needs, it is preferable to purchase such a policy with a tenure of 15 to 25 years when the child is still very young because of the rising expense of higher education. The policy can be used as collateral for an education loan by the parent.

SMALL RETURNS

The returns from these plans are only 5-6%, though. In order to ensure the financial stability of the family, a parent should ideally purchase a term plan. When compared to conventional insurance policies or even unit-linked insurance plans, Term Plans are more affordable.

If you decide to cancel/surrender the insurance, you would lose the majority of the premiums you have paid over the years because the policy's surrender value is so low. Additionally, child plans have relatively little insurance coverage.

It is preferable to invest in diversified Equity,  Mutual Funds and PPF for a girl child, a Higher-Education savings account, Samriddhi Yojana-Sukanya

Courtesy: Financial Express

Classic Strategies to Beat the Markets" by MARTIN J. PRING Book (INVESTMENT PSYCHOLOGY EXPLAINED)

-R.Kain

Rule 01: Trade with a strategy and follow it.

Rule 02:  Invest in the trend. "The fashion trend is your buddy!"

Rule 03:  If possible, use stop loss orders.

Rule 04:  Get out if in doubt!

Rule 05:  Be patience. Do not overtrade.

Rule 06:  Cut your losses short and let your profits run.

Rule 07:  Never allow a gain to become a loss. (Or always take a free position if you can.)

Rule 08:  Buy strength and sell weakness. Be just as eager to sell as to purchase.

Rule 09:  Invest in bull markets while they are just starting out. In bear markets and the latter stages of bull markets, engage in speculation.

Rule 10:  Never add to a losing position by averaging a loss.

Rule 11:  Never purchase something just because it's cheap. Never give in to pressure to sell at a premium.

Rule 12:  Trade only in liquid markets.

NEW TRADER RICH TRADER - 18 Lessons from The book

-R.Kain

"NEW TRADER RICH TRADER" - 18 Lessons from the Book  

1. New traders are greedy and have exaggerated hopes. Rich traders are honest about their potential profits. 

2. New traders make bad decisions as a result of stress. Rich traders can control their stress. 

3. New traders have short attention spans and demand constant action. Rich traders take their time. 

4. New traders trade as a result of emotional effect. Good investors utilise a trading strategy. 

5. New traders believe that learning never ends. Rich traders are lifelong students of the market. Management of Risk 

6. New traders behave like gamblers. Rich Traders conduct themselves like entrepreneurs. 

7. New Traders risk everything. Rich traders have rigorous control over trade size. 

8. For New Traders outsized profits are the #1 priority. Rich Traders know that managing risk is the #1 Priority. 

9. New Traders try to prove they are right. Rich Traders admit when they are wrong. 

10. New Traders give back profits by not having an exit strategy. Rich Traders lock in profits while they are there. 

Trading Methodology

11. New Traders give up. Rich Traders persevere until they are successful.

12. New Traders hop from system to system when they lose. Rich Traders stick with a winning system even when it is losing.

13. New Traders place trades based on opinions. Rich Traders place trades based on probabilities.

14. New Traders try to predict. Rich Traders follow what the market is telling them.

15. New Traders trade against the trend. Rich Traders follow the market trends.

16. New Traders follow their emotions to their disadvantage. Rich Traders follow systems that give them an advantage.

17. New Traders do not know when to cut losses or lock in gains. Rich Traders have an exit plan.

18 New Traders cut profits short and let losses run. Rich Traders let profits run and cut losses short.

Monkey And Stock Market Story

-R.Kain

The well-known tale of the monkey contains insightful insights for stock market investors.

When you make poor stock market bets, you will adore the narrative and remember it.

Monkey Story

Once upon a time, a wealthy city dweller visited a village. The people heard him say that he would buy monkeys for ₹ 100 each.

Since there were so many monkeys in the neighbouring forest, the villagers were overjoyed.

The monkeys were captured and delivered to the wealthy man. He paid ₹ 100 for each monkey the villagers gave him, purchasing hundreds of them.

They started to survive by removing monkeys from the forest and selling them to the wealthy man.

The number of simple-to-catch monkeys in the jungle soon began to decrease.

The wealthy man recognises this and offers ₹ 200 for each monkey. The locals were overjoyed.

They returned to the forest, where they set up traps, captured the monkeys, and delivered them to the wealthy man.

The wealthy man declared he would pay ₹ 300 per monkey a few days later.

The locals started scaling trees and taking dangerous risks in order to capture monkeys and deliver them to the wealthy man, who bought them all.

In the forest, there were no longer any monkeys.

One day, the wealthy man declared he wanted to purchase additional monkeys, but this time for ₹ 800 each.

The villagers found it hard to believe. They were scrambling to capture additional monkeys.

The wealthy guy explained that until he returned, his manager would handle all of the business till he could return to the city.

The villagers were upset when he went. They were selling monkeys for quick cash, but the forest was now empty of monkeys.

The wealthy man's manager intervened at this point.

The peasants couldn't turn down his offer.

Pointing out all of the caged monkeys that the wealthy man owned. The people were informed that he would sell the monkeys for ₹ 400 each.

When the wealthy man returns, sell them back to him for ₹ 800 each, the manager instructed.

The villagers were thrilled to pieces. Purchase for ₹ 400 and quickly sell for ₹ 800. They had just discovered the quickest way to multiply their wealth.

The people saved up all of their money and even took out loans.

There were lengthy lines, and in a short period of time, practically all the monkeys had been sold.

Sadly, their joy was short-lived because the manager disappeared the following day and the wealthy man never returned.

In the hopes that the wealthy man would return, many villagers kept the monkeys with them. But as time went on, they lost heart and were forced to release the noisy monkeys back into the bush because it was impossible to feed and care for them.

What exactly does the stock market monkey story mean?

If the connection wasn't clear enough, this is what occurs when you invest in low-quality companies on the stock market.

There will be a cheap supply that no one wants to purchase. It will suddenly start selling to a few wealthy folks.

Because there are suddenly many buyers and few sellers, the stock price will increase. 

The classic example of a lack of supply due to high demand is the monkeys in the forest.

Newspapers and business media frequently cover the stock. These wealthy men would also employ deceptions like mass SMS distribution to entice others to purchase shares in exchange for enormous returns.

They attract novice and inexperienced investors who are looking to quadruple and triple their investment.

Finally, the major players sell the stock back to novice investors at high prices after having purchased it early when no one else was interested.

Similar developments are currently taking place in Ruchi Soya and a few other companies on the stock market!

There won't be any buyers or sellers one day. Those who purchased the stock in the last phases of its climb will lose all of their money.

They plan to keep the shares for a few years in the hopes that the stock price would recover. As a result, the story comes to an end.

The stock market story's lesson is, in a nutshell, to only invest in reputable businesses that are marketing items that consumers like and use.

There is no instant money in the stock market or in life, so don't be greedy.

Gaining wealth requires patience and work. There are also no short cuts.