Just saw a video being send on WhatsApp where an eighth standard student is asking the current RBI governor as to when the Indian Economy would get strong enough so that our stock markets do not get impact due to Federal rate changes or any other countries economic policy changes. Every one appreciated this question. The response given by the governor was apt. He mentioned that no country in this world should carry out any economic reforms which will impact the other countries. While this is true and needs to be followed, how many times do we see this happening? We have Federal Rates, Greece crisis which heavily impact our Sensex or Nifty. Hence it is very important to understand the economy and its impact on the markets. That is why we precisely include at least one article related to the economy in our journal. In the current edition, we would discuss about BRICS and the new development bank that has been formulated to help the growth of the BRICS economy.
Recollect the days when the elders in the family used to caution on investing in the stock market. For them it was always a gamble. There were valid reasons that time since the markets were operated in trading halls and it did not have the transparency that exist now. But still there are people who just speculate in the market. Speculation without any study is nothing but gambling and no one gains from gambling. We present to you an excellent article to help you differentiate between an Investor, Trader & Gambler.
With focus on Digitalization across the globe, there is a lot of focus on automation, straight through processing, etc. In the stock market, the trading strategies are now implemented directly on the trading platform / software. This keeps on monitoring the share prices and basis the logic implemented it would get into a trade. There are many algorithms that are automated for trading. We will discuss this in detail on our article on Algorithmic Trading where you will gain more insights. Hope you enjoy reading this edition. Please do share your feedbacks so that we can improvise further.