Key Traits Every Good Investor Must Have

We’ve covered a wide range of subjects about investing and trading here on Master and Student. While the best tips and resources can help you succeed more as an investor, there are still some basic, important skills that you must have in order to stay ahead of the market. Having these key skills will not only make you a better investor, but also help you cope with market challenges in any circumstances. What are the key traits every good investor must have?


Cover Both Sides

For many beginner investors, making the decision to enter the market is a lot easier than deciding when to exit. In reality, however, having a good exit strategy is often more important than knowing when to invest. You need to know exactly what to do under different situations in order to stay successful.

The market can either go your way or turn against you; no matter how well you’ve calculated everything, there is still a possibility that one of these two outcomes may happen. You need to plan your exit before entering the market and anticipate both possibilities.

Let’s say you’re trading EURUSD and the market turns due to unexpected news. You can either remain in your trade, take active steps to manage your risks or decide to pull out at the right moment. Depending on the amount of margin you have and other crucial factors, the right decision can turn what would be a loss into a profitable trade.

investor


Critical Thinking

There are a lot of data that needs to be analyzed before you can make wise, calculated investment decisions. A lot of independent investors are actually going back to school, taking advantage of programs from reputable universities such as Brandeis University to further strengthen their critical thinking and analytics abilities.


Proactive Learning


There are some interesting programs to take, too. The online MSMPP program, while mainly designed to help you become a better project manager, can help you master essential skills that will turn you into a good leader and decision maker. The project and program management degree also comes with a series of knowledge and skills that will make managing trades and investments a lot easier.

Going back to school is not a bad idea if you’re an active investor, because the third trait every good investor must have is proactive learning.
Yes, having the eagerness and ability to learn a must. The market is changing rapidly and you need to be able to understand the changes that are happening to fully understand what’s going on. The only way you can do that is by learning more about the governing aspects, as well as other details about the investment opportunities you’re approaching.


The same can be said for strategies and tactics. Investing in new instruments requires a lot of learning. You also need to learn from your past investments, especially the mistakes you’ve made in previous trades. Actively learning new things, along with the ability to think outside the box and to cover both sides, will make you an even better investor.

New IPO Allotment Rules - SEBI

How IPO shares gets allotted to retail investors.

Usually for any IPO that seems good value proposition and got hype in the market, retail investors become bullish and fascinated towards it. Retail investors are those who apply shares up to Rs 2 lakh for single application while the minimum application amount is Rs 10000-15000. Some retail investors who recently applied for IPOs are confused because they did not receive even a single lot of shares despite subscribing to the full quota of Rs 2 lakh.

ipo allotment


In order to understand the rationale behind the allocation, we need to look at the guidelines issued by Sebi. 

In case of retail investors, the total number of applications received in the RII category is grouped together to determine the total demand in this category. If the aggregate demand in this category is greater than the allocation in the retail portion, then the maximum number of RIIs who can be allotted the minimum bid lot will be computed by dividing the total number of equity shares available for allotment to RIIs by the minimum bid lot, this is known as ‘Maximum RII Allottees’.

Assuming that there are shares worth Rs 10 lakh to be allotted in retail segment and the minimum lot size is worth Rs 10,000. Thus only a maximum of 100 applicants will be receiving the minimum lot of Rs 10,000. Since Sebi says that no RII will be allotted less than the minimum bid lot, in case of over subscription, allocation of shares lower than the minimum lot is not possible. In this case, the Maximum RII Allottees are 100.

In case there is a small oversubscription then first the minimum lot is distributed among all participants and then the balance available equity shares in the retail portion shall be allotted proportionately to the RIIs who have bid for more than one minimum bid lot.
But in case the number of RIIs is more than Maximum RII Allottees, the RIIs (in that category) who will then be allotted minimum bid lot shall be determined on the basis of draw of lots. The draw of lots is now a computerized process and thus there is no room for partiality.

source: BS


DMart IPO review and details

The initial public offer (IPO) of Avenue Supermarts, the owner of DMart, which is likely to be floated in the next few weeks, is expected to command a valuation of `18,000 crore, much higher than the earlier expectation of `7,000 crore.

The issue will be open for bidding from March 8 to March 10.  Avenue Supermarts has reserved 1.87 crore shares for anchor investors' book, 1.24 crore for qualified institutional buyers, 93.59 lakh for non-institutional investors and 2.18 crore shares for retail investors.

dmart ipo



About the company:
D-Mart operates close to 120 stories, most of them concentrated in Maharashtra and Gujarat. As of March 31, 2016, the company had a topline of about Rs 8600 crore, and a net profit of about Rs 320 crore, translating into an earnings per share of Rs 5.72. The company’s earnings have been growing at 31 percent compounded for the preceding two years. Extrapolating that, the company is expected to report an earnings per share of roughly Rs 7.6 for this financial year. An issue price of Rs 300 would mean a price earnings multiple of roughly 40 times estimated FY17 earnings.

Equity shares issued through public issue are proposed to be listed on both exchanges - BSE and National Stock Exchange of India.

Issue Details:


  • Issue Open: Mar 8, 2017 - Mar 10, 2017.
  • Issue Size: 62,393,631 Equity Shares of Rs 10 aggregating up to Rs 1,865.57 Cr.
  • Face Value: Rs 10 Per Equity Share.
  • Issue Price: Rs. 290 - Rs. 299 Per Equity Share.
  • Market Lot: 50 Shares and  Minimum Order Quantity: 50 Shares. 
  • Listing At: BSE, NSE.

DMart's upbeat valuation is likely to buoy stocks of other retailers such as Future Retail and CESC which owns Spencer's Retail.

Union Budget Highlights

Here are the highlights of Union Budget 2017. The Budget broadly focussed on 10 themes.

The 2017 Union Budget, presented by Finance Minister Arun Jaitley on Wednesday, was broadly focused on 10 themes — the farming sector, the rural population, the youth, the poor and underprivileged health care, infrastructure, the financial sector for stronger institutions, speedy accountability, public services, prudent fiscal management and tax administration for the honest.

budget-highlights


Demonetisation

  • Demonetisation is expected to have a transient impact on the economy.
  • Demonetisation is a bold and decisive measure that will lead to higher GDP growth.
  • The effects of demonetisation will not spillover to the next fiscal.
Agriculture sector

  • A sum of Rs. 10 lakh crore is allocated as credit to farmers, with 60 days interest waiver. 
  • NABARD fund will be increased to Rs. 40,000 crore. 
  • Irrigation corpus increased from Rs 20,000 crore to Rs 40,000 crore.

Rural population

  • The government targets to bring 1 crore households out of poverty by 2019.During 2017-18, five lakh farm ponds will be be taken up under the MGNREGA.
  • Over Rs 3 lakh crore will be spent for rural India. MGNREGA to double farmers' income.
  • The government proposes to complete 1 crore houses for those without homes.
  • The country well on way to achieve 100% rural electrification by March 2018.
For youth


  • Will introduce a system of measuring annual learning outcomes and come out with an innovation fund for secondary education.
  • Focus will be on 3,479 educationally-backward blocks.
  • Skill India mission was launched to maximise potential. Will set up 100 India International centres across the country.


For the poor and underprivilege health care.


  • Rs. 500 crore allocated for Mahila Shakthi Kendras.
  • Under a nationwide scheme for pregnant women, Rs. 6000 will be transferred to each person.
  • A sum of Rs. 1,84,632  crore allocated for women and children.

Infrastructure and railways


  • A total allocation of Rs. 39,61,354 crore has been made for infrastructure.Total allocation for Railways is Rs. 1,31,000 crore.
  • No service charge on tickets booked through IRCTC.
  • High speed Internet to be allocated to 1,50,000 gram panchayats.


Energy sector


  • A strategic policy for crude reserves will be set up.
  • Rs. 1.26,000 crore received as energy production based investments.
  • Trade infra export scheme will be launched 2017-18.


Financial sector


  • FDI policy reforms - more than 90% of FDI inflows are now automated.
  • Shares of Railway PSE like IRCTC will be listed on stock exchanges. 
  • Bill on resolution of financial firms will be introduced in this session of Parliament.


Fiscal situation


  • Total expenditure is Rs. 21, 47,000 crore.
  • Plan, non-plan expenditure to be abolished; focus will be on capital expenditure, which will be 25.4 %.
  • Rs. 3,000 crore under the Department  of Economic Affairs for implementing the Budget announcements.

Funding of political parties


  • The maximum amount of cash donation for a political party will be Rs. 2,000 from any one source.
  • Political parties will be entitled to receive donations by cheque or digital mode from donors.


Defence sector

  • The defence sector gets an allocation of Rs. 2.74,114 crore.


Tax proposals

  • The Income Tax Act to be amended  to ensure that no transaction above Rs 3 lakh is permitted in cash.
  • The limit of cash donation by charitable trusts is reduced to Rs 2,000 from Rs 10,000.


Personal income tax


  • Existing rate of tax for individuals between Rs.  2.5- Rs 5 lakh is reduced to 5% from 10%.
  • 10 % surcharge on individual income above Rs. 50 lakh and up to Rs 1 crore.