Mind Over Markets

For better understanding, I am making it simple, Financial ratios are grouped into 5 main categories . Let’s cover each with their formulas and use cases. Profitability Ratios – Measure earnings power Earnings Per Share (EPS) = Net Profit ÷ No. of Shares Net Profit Margin = (Net Profit ÷ Revenue) × 100 Gross Profit Margin = (Gross Profit ÷ Revenue) × 100 Operating Margin = (Operating Profit ÷ Revenue) × 100 Return on Equity (ROE) = Net Profit ÷ Shareholder’s Equity × 100 Return on Capital Employed (ROCE) = EBIT ÷ Capital Employed × 100 Return on Assets (ROA) = Net Profit ÷ Total Assets × 100 2️⃣ Valuation Ratios – Tell if stock is cheap or expensive Price-to-Earnings (P/E) = Price ÷ EPS Price-to-Book (P/B) = Price ÷ Book Value per Share Price-to-Sales (P/S) = Price ÷ Revenue per Share EV/EBITDA = Enterprise Value ÷ EBITDA Dividend Yield = (Dividend ÷ Price) × 100 Earnings Yield = EPS ÷ Price × 100 3️⃣ Liquidity Ratios – Ch...

When entering the stock market, one of the first decisions you’ll face is whether to be a long-term investor or a short-term trader . While both involve buying and selling stocks, the mindset, strategy, and risk levels are very different. 1. What is Long-Term Investing? Long-term investing means buying shares of strong companies and holding them for years (even decades). Goal: Build wealth steadily over time. Approach: Focus on company fundamentals (profits, growth potential, management). Risk: Lower risk compared to trading, but still subject to market ups and downs. Time Horizon: Years or decades. 👉 Example: Buying Infosys or HDFC Bank shares and holding for 10+ years. 2. What is Short-Term Trading? Short-term trading means buying and selling stocks within days, weeks, or even minutes to profit from price movements. Goal: Make quick profits from market fluctuations. Approach: Relies on technical analysis, charts, and market trends. Risk: Higher risk due ...

 Investing in the stock market can be exciting, but beginners often fall into traps that can cost them money and confidence. Let’s look at the most common mistakes — and how to avoid them. 1. Lack of Research Many beginners buy stocks based on tips from friends, social media, or TV news without proper research. 👉 Tip: Always study the company’s fundamentals (financials, management, future growth). 2. Timing the Market New investors often try to “buy at the bottom” and “sell at the top.” Unfortunately, even experts struggle to time the market. 👉 Tip: Focus on long-term investing and consistency rather than predicting daily moves. 3. Ignoring Diversification Putting all money into a single stock is risky. If that stock crashes, your portfolio suffers heavily. 👉 Tip: Spread your investments across sectors (IT, Banking, Pharma, FMCG, etc.). 4. Emotional Trading Fear and greed are the biggest enemies. Beginners panic during a fall and get greedy during a rally. 👉 ...

 If you want to buy and sell shares in today’s digital world, you need a Demat Account . Just like a bank account stores your money, a Demat Account stores your shares in electronic format. What is a Demat Account? Demat stands for Dematerialized Account . It converts your physical share certificates into digital format. Safe, paperless, and easy to manage. Think of it as your online locker for stocks, mutual funds, bonds, and ETFs. Why Do You Need a Demat Account? 📦 Safe Storage – No risk of losing/damaging physical certificates. ⚡ Quick Transactions – Buy and sell shares instantly. 📈 Easy Portfolio Management – Track all your investments in one place. 🌍 Mandatory for Stock Trading – If you want to invest in equities, a Demat is a must. How Does It Work? When you buy shares , they get credited to your Demat Account. When you sell shares , they get debited from your Demat Account. It works alongside a Trading Account (for placing buy...

What is Sensex and Nifty? (The Basics of Indian Stock Market Indices). If you follow stock market news, you’ve probably heard terms like “Sensex is up 500 points today” or “Nifty closed in the red” . But what exactly do these terms mean? 🤔 Let’s break it down in simple words. 1. What is a Stock Market Index? A stock market index is like a report card of the stock market. It measures the performance of a group of selected companies. Helps investors understand whether the market is moving up (bullish) or down (bearish) . 👉 Think of it as a thermometer 🧾 that shows the overall health of the market. 2. What is Sensex? Full Form: Sensitive Index. Launched: 1986 by the Bombay Stock Exchange (BSE) . What it Tracks: The top 30 companies listed on the BSE, chosen based on market size, liquidity, and industry representation. 📌 Example: Companies like Reliance Industries, TCS, HDFC Bank, Infosys are part of the Sensex. 👉 If the Sensex goes up, it means th...