The Securities Exchange Board of Nepal (SEBON) has approved Dolti Power Company Limited and Bhugol Energy Development Company Limited’s proposed initial public offering (IPO). On Magh 16, both proposals were approved.
Dolti Power Company will now issue 1,609,458 equity shares with NPR 100 par value each. The issue is worth Rs. 16.09 crore. This is equivalent to 30% of the company’s issued capital. The company’s total paid-up capital after the IPO allotment would be Rs 53.64 crore.
The Electricity Regulatory Commission has given preliminary approval to Synergy Power Development Company (SPDL) to issue a 2: 1 right offering. On Kartik 17, 2079, the application for the issuance of right shares was submitted to ERC.
On Shrawan 24, 2078, the board of directors proposed issuing 50% right shares on the paid-up capital after adjusting 10% bonus shares for fiscal year 2077/78, i.e. Rs. 80,65,75,000. The company’s paid-up capital will rise to Rs. 120.98 crores after the proposed right share is adjusted.
Have you decided to invest in the stock market? Consider these 7 stock market investing tips when making your investments.
1. Have a solid comprehension of basic economic principals.
Before you get started, you should understand basic principals and laws of economics. The stock market closely follows the law of supply and demand. For example, when there is a large demand for the stock of a certain company, the cost of its stock will increase along with the demand. However, if there are more stock available for sale than there are buyers, the unit price of that company stock will decrease.
2. Learn about prospective companies you want to invest in.
Do your homework before you invest in prospective companies. Read the company annual report and find out about their products, operations, services and basic business track record. This information gives you an idea of how stable the company is and whether they can deliver on their promise to offer profits to investors.
3. Select companies with staying power.
There are so many companies that exist in today’s stock market, selecting becomes a major decision for beginning investors. Relatively stable companies and business are owned by the government, unless there is a political revolution or crisis going on. Gasoline companies and telecommunications companies are usually profitable and stable because there is a constant demand for their services and products. While IT companies are rapidly growing in today’s stock market, there are so many of them it may be a challenge to check their profiles to exercise reasonable care before investing. Before putting your money into an IT company, verify their track record and make sure they are stable and profitable for a minimum of 10 years.
4. Keep an eye on the news.
Guesswork is completely ineffective when it comes to investing in the stock market. Good intuition and solid decision-making come from learning about global and local news both politically and economically. When you watch the news, make sure to keep track of the industry your company is in. Even stable companies may go bankrupt or have a major blow that will bring them down.
5. Don’t put all your eggs in one basket.
Avoid investing in just one company and spread out your stock investments to several businesses. When you have stock concentrated in just one company, you have a greater chance of losing it all. When you spread out your investments over several companies, those earning profits can cushion the ones that not not as profitable.
6. Stockbrokers aren’t the final word.
A stock broker is actually gambling with your money so you need to do your own homework. Dishonest brokers can take advantage of investors who do not fully comprehend how the stock market works.
7. Greed is your enemy.
While everyone is eager to make profits in the stock market, an investor loses their sense of reason when they are fueled by greed. A money hungry investor may forget to check on economic rumors and spontaneously decide to sell or buy with the thought of making major profits and then lose it all.
Putting your money in the stock market can of course be risky, but the above stock market investing tips should help point you in the right direction.
Before we get into how to become an investor in Nepal, it’s important to understand who an investor is. An investor is someone who puts money into something with the hope of profiting in the future. A return is the benefit derived from such an investment. Investors are always on the lookout for high-yielding investment opportunities.
Based on a book written by Robert Kiyosaki Rich Dad Poor Dad, people can be divided into four distinct categories in terms of generating income. They are:
1. Employee (Salary-based) are those who work for others in order to meet their needs. They are paid at the end of the month for their work. Job holders are included in this category. Employees benefit from security because they know they will be paid at the end of the month. The main disadvantage of being an employee is the lack of freedom.
2. Self-employed are individuals who work for themselves. They have more freedom than salaried employees, but they must work like salaried employees to meet their demands.
3. Businessmen are the owners of the company Business owners hire others to work for them. They create products and services in order to make money.
4. Investors invest in businesses and stocks for profit.
According to the book, in order to become wealthy, you must be either a businessman or an investor, or both.
Not all of your money can be considered an investment. There are a few factors that distinguish between spending and investing. The following are the two most important characteristics that every investor should possess:
The principal is your machine, which can print money for you. It is in your best interest to keep your machine in good working order. When you lose your principal, you can’t make money off of it. As a result, the safety of the principal should be your top priority.
When you put your money into a good business, you get something in return. Your return can take the form of cash, shares, or stocks. What you should remember is that your principal earns you some level of return. You should not expect a return on your investment that is exponential or even out of the realm of possibility. Investing with a non-realistic expectation of return is gambling. Never put your principal at risk. It is all you have.
Inflation is a term used to describe the gradual decline in the purchasing power of money. A popular saying goes, “A dollar today is worth more than a dollar tomorrow.” As an investor, you have the ability to outperform inflation and keep your money’s value constant. You should always keep an eye on inflation and strive to outperform it. Your investment return should always be greater than your country’s inflation rate.
It is yet another advantage of being an investor. You can own as many and as varied businesses as you want. What you should have are some investing principles that you can use before you start investing. After you’ve established your investing principle, the world is yours to explore.
There are three main popular fields of investing in Nepal. They are:
Real estate is and has always been the best investment opportunity. Real estate investment generates income from two sources: renting and selling real estate. It can be both active and passive investment. You can actively buy and sell properties, or you can simply invest in real estate and let time do the work of calculating your income. You can always expect your property’s value to rise over time. In the meantime, you can use the money you earn from renting to cover your day-to-day expenses.
Banks in Nepal offer competitive interest rates on fixed deposit savings. You can protect your principal by using fixed-deposit schemes offered by commercial banks or development banks in Nepal. While cooperative companies in Nepal have high rates of return, they have a bad reputation for fraud or scams. It is not a good idea to put all of your money in cooperatives.
In Nepal, there is also peer-to-peer lending. It pays a higher interest rate on your money than institutions, but it also carries a higher risk.
Interest-bearing deposits are one of the best passive income ideas in Nepal, regardless of where you choose to invest.
Nepal Stock Exchange (NEPSE) is the country’s sole stock exchange. If you are new to this, you can read the NEPSE beginner’s guide. Investing in stocks provides you with two significant benefits. You can be a shareholder in any company you want, and you will receive an annual return. Alternatively, you can sell your stocks if the price rises. Stock investing, like real estate investing, allows you to be either an active trader or a passive investor. Stock investing can begin with as little as 100 rupees. Stocks could be the next best small business in Nepal for you.
Furthermore, the best investment you can make is in yourself. Always seek to broaden your knowledge. Read books, websites, and news to stay current. One thing that all of the best investors have in common is that they are voracious readers. As the saying goes, the more you learn, the more you earn.
It is not easy to become an investor. To become a good investor in Nepal and other countries, a certain set of principles and hard work are required. However, it is not as difficult as learning rocket science. Anyone can become a good investor with careful planning and dedication. There are a few things you should never forget and a few things you should never forget. Best wishes for your investment.
Alright, so you’ve decided you want to take a shot at buying and trading stocks. The only problem is, you really don’t know how. Where should you begin? And do you even know what a stock is and the significance of stock for companies?
This article will serve as a dummies guide for trading and buying stock.
A stock is actually partial ownership of a company. Some companies consider stocks as certificates so the more stock a person owns of the company, the larger portion of the company they own. Along with owning a bigger part of the company, they also have greater influence in running the company. This influence is referred to as equity investment.
There are other important terms you should become familiar with before getting into the stock market. Get to know about leverage, price-earnings ratio, earnings per share, margins and options before you dive in and invest your hard-earned money.
Next you need to figure out where and how to purchase those stocks. Basically, there is only one way to buy shares and stocks. Through your stock broker.
Online exchanges let investors have access to stocks from all around the globe. Without the need for a broker, investors can purchase and sell stocks online. Some banks also give you the ability to set up your own stock portfolio. You can use the money you have invested with these banks to purchase and sell stocks online right away.
Brokers render brokerage services and they are the middlemen who do the work on your behalf. Brokers give advice, research the current stock market and buy and sell stocks in accordance with the requests of their clients. From buying and selling these stocks, the brokers earn a commission.
When you decide on how you prefer to purchase and sell stocks, you need to open an account. Exchanges will allow you to monitor and control your individual stock portfolio yourself. If you decide to enter into the stock trade with a bank, discuss the specifics of setting up your own account with the bank you choose. For conducting trades through a broker, you need to find a reputable broker to deal with and then ask them to open and manage your account.
Once you set up an account successfully, start studying the stock market to plan your strategy. Do you want to be conservative when making investments? Do you like to aggressively invest? How many investing years do you have? Are you a day trader or will you be investing on a long term basis?
When you determine your personal plan, do your research on the current stocks offered in the market. If you have a broker, it becomes easier because they do much of the research for you. However, it is still best to study the market on your own.
Remember, the stock market is a volatile place so be ready for explosive activity when trading and buying stocks. Like life, there are many ups and downs before you reach your goals.
The covid19 pandemic is not only putting millions of people’s lives in peril, but it is also devastating the global economy. Our government has proclaimed general vacations and imposed a travel ban on the general public in order to combat the spread of Coronavirus. Nobody knows how long it will take for things to return to normal. Meanwhile, some huge organizations are downsizing their workforces, while small and mid-sized businesses are being forced to lay off employees. As a result, a large number of people are losing their employment or their salary. At this vital juncture, we’ll highlight several quarantine income opportunities, both online and offline. Keep reading to learn how you can make money during the lockdown!
If you are a graphic designer with experience utilizing popular graphic tools such as Adobe Photoshop and/or Adobe Illustrator, you can get hired online and earn big money. Graphic designers are hired by many overseas platforms to work on little to large projects including logo design, business card design, banner design, brochure design, and so on. Here are some job vacancies in distribution.
https://www.freelancer.com/jobs/graphic-design/
https://www.behance.net/joblist
https://99designs.com
https://www.upwork.com/ab/find-work
Do you like to use social media sites like Facebook, Twitter, and Instagram from time to time? Why don’t you complement your income with those sources? Any online social media channel that allows you to generate links or followers can be utilized to promote a product (made by another company). You may easily earn an affiliate fee if a viewer purchases your offered goods through your provided link. A variety of local businesses offer affiliation programs as well. Let’s have a look at some options.
https://www.daraz.com.np/wow/i/np/help-pages/daraz-affiliate-program
Affiliate marketing is a safe and secure way to earn money online. More people are choosing to affiliate marketing as a full-time career because of the attractive affiliate commission arrangements given by numerous companies. If you have good writing and/or video-making talents, as well as some SEO knowledge, you may generate a consistent income conducting affiliate marketing on your blog or YouTube. Take a peek at some of the various international affiliation channels.
https://affiliate-program.amazon.com/
http://www.cj.com/
https://shareasale.com/
Earn a comfortable living by teaching online. You can write courses based on your experience and advertise your profile on social media platforms like linkedin.com. Begin by enrolling in some low-cost or no-cost basic level courses. Consider offering some paid advanced-level skills classes if the audience responds well. Here are some local and worldwide resources for looking for online teaching employment and/or submitting your online course:
hhttps://www.udemy.com/teaching/
https://sellfy.com/sell/courses-online/
https://www.skillshare.com/teach
Do you have an innate desire to write? Yes, you can work as a freelance writer for a range of local and online publications if you answered yes. There are a range of freelance assignments accessible, including translation, guest writing, blog post writing, essay writing, academic writing, book writing, and study, whether you’re a newbie writer or a seasoned researcher. It will enable you to teach people while also allowing you to earn money. Take a look at the resources listed below.
https://solidgigs.com/
https://remote.co/remote-jobs/writing/
https://www.freelancewriting.com/jobs/
Do you enjoy working with computers? You can get hired online if you know any programming language, including PHP, Python, C#, Java, and others. Based on your degree of education and experience, you should apply for freelance programming employment. Here are a few areas where you might look for work as an internet programmer.
https://www.upwork.com/freelance-jobs/database-programming/
https://www.peopleperhour.com/freelance-programming-jobs
https://www.indeed.com/q-Online-Programmer-jobs.html
https://www.ziprecruiter.com/Jobs/Online-Programmer
Don’t be concerned if you aren’t a designer, editor, or programmer. The Internet is a huge ocean of possibilities for a wide range of occupations. If you have experience in a specific field of knowledge, such as business proposal preparation, project management, or digital marketing, you should hunt for freelance employment in foreign marketplaces.
Here are some useful links:
How does the stock market work? In a nutshell, the stock market is a market place for business people. Goods are sold to the public in a public market. However, in the stock market, the public is sold share. Shares are the form in which company stock is sold. When a person purchases more shares in a company, they have a higher ownership in that company.
In the stock market, there is the primary market and the secondary market. In the primary market, companies sell shares to investors to raise financing for their operating expenses. In the secondary market, investors buy and sell shares in companies to other investors. Constantly changing market conditions are the basis of those buy and sell decisions.
A stock market operates much like an auction house, with a systematic way of buying and selling. The system in the stock market involves a great deal of bustling activity. Often there are people running around frantically, shouting and gesturing at one another.
The purchase and sale of stock starts at various places. A broker is contacted if a person wants to buy stocks in a certain company. The broker will take the investor’s money to the stock exchange to coordinate with a floor broker.
In most cases, the floor broker works for the company selling stock. Right on the stock exchange floor, brokers buy the desired stock for the investor. Once the deal is made, it is communicated to a broker and the investor then becomes a stockholder of that particular company.
Investors may decide to sell their stock. Usually investors want to sell their stock when the price per share increases so they can realize a profit on their investment. For example, a person may purchase 100 shares at the price of $25 per share. When the price increases to $35 per share, the person can sell the 100 shares and make a profit of $1,000.
The driving force behind the stock market is the basic economic principal of supply and demand. The number of stocks open to the public is the supply. The number of shares that investors what to purchase affects the demand of the stock in a certain company.
The constant change in the cost of stock is a result of conditions in other markets. For example, if people feel that the economy is growing they are apt to purchase more stocks. However, when the economy is in a decline, the majority of investors tend to sell off their stocks. On the flip side, some investors use this time to buy because the stock prices are usually at a discount.
There are quite a few business people who make long term investments in the stock market. In some situations, stocks go down in value and a stockholder loses money. There is no guaranteed profit when investing in the stock market. Thus, when a person is flexible and able to handle the constant changes of the stock exchange they are more likely to experience a profit.
So this is how the stock market works. In the end, patience, education and experience usually equals greater long term success.
One of the riskiest ventures is investing your money in the stock market. But along with the extreme risk involved, is also has the potential to make you a lot of money. In fact, investing in the stock market can turn out to be one of the most profitable business decisions you’ll ever make if done right.
With so many variables to consider, it is expected that you may have hesitancy to risk your hard-earned cash on a speculative venture in the stock market. The best course of action is to hire a reputable stockbroker to handle your stocks in the beginning. A trained stockbroker can give you dependable stock tips and solid professional advice.
Another good idea is to discuss stocks with an associate or friend with a bit of experience investing in the market themselves. Talking with educated friends and acquaintances can be a good way to get stock advice and knowledge for free.
A well-known stock move is investing in variable annuities using the premium of your insurance. Variable annuities are actually insurance contracts that allow you to invest your premium in mutual fund type investments. While this may seem like a good idea, when you review it more closely, it might be a poor investment.
The following are 4 potential problems with annuities:
Another thing to keep in mind is that timing is a key element to successful stock investing. There are specific times that are good to invest and other times that are poor. During times of hardship or national duress, the prices of stocks may be driven down to a discounted rate, but there is no reassurance that such stocks will recover to realize a significant profit. Educating yourself on the company is key in this situation.
The bottom line with regards to investing in the stock market is diversification. The best decision is to diversify where and when you invest your money so you can always realize some type of profit to offset potential losses.
And you should always hire a reputable finance professional to help guide you through the stock market.
What is NEPSE Index?
Nepal stock exchange at the end of the day publishes the transaction index which is called the NepSe index. In simple language, the base market capitalization is used to calculate the Nepse index. The base market capitalization is February 12, 1994. In this day, share transaction was held for the first time in Nepal Stock Exchange. It is the first index to show the work of the stock market. The increase in the value and transaction of transacted share increase than the market capitalization value also increase. While calculating the market capitalization, the total share is multiplied by a certain day’s share value. As there is a different value of share number and share price, separate multiply value is calculated and added later to find the total sum. In this way, market capitalization is calculated. For example, the company named ‘SBC’ has registered 5, 00,000 number of shares @ Rs 100. On that day, the market capitalization value was Rs 50 crore. The market capitalization of each company is added to find out total market capitalization. Stock exchange finds out the market index on the base of market capitalization.
When the market capitalization increases, the Nepse index also increases and where market capitalization decreases, the Nepse index decrease. For example, on Ashad 24, 2067, the total market capitalization was Rs 3 Kharab 61 Arab 59 crore 77 lakh whereas adjusted base market capitalization was Rs 78 Arab 59 crore 70 lakh 5 thousand only.
Likewise, the Nepse index calculation formula is given below.
Current Market Capitalization
NEPSE index = × 100
Adjusted Base Market Capitalization
Rs 361597.70
Or, Nepse Index= × 100
Rs 78597.05
= 460.07
Therefore, the Nepse index was close at 460.07 points.
In days past, stock market information was limited and often buyers depended on stockbrokers to try to get the facts about investments. Today there are a variety of stock investment tools to assist modern investors and maximize the amount of information they can find about potential investments and trading activities.
The widespread use of the Internet puts a wealth of information at your fingertips right away. The Internet has facts about many publicly listed companies in the United States. Certain websites provide free research information, which may be rather general in nature but still useful to beginners. Other companies publish in-depth research reports outlining the activities of listed companies. These detailed reports may only be offered through a subscription, which may be an expensive choice for retail based investors. Based on the quality of the research provided about the company, such detailed reports may wind up costing hundreds or even thousands of dollars.
For simple background facts, stock investors can peruse news articles, analyst reviews and research reports intended to supply fundamental company information. This basic information can come from analyzing previously published financial reports or catching up on current news events regarding the company’s activities. This fundamental research can be a place to start to obtain more information so investors can adequately analyze the data to make educated investment decisions.
Investors can also take advantage of a variety of stock investment tools that offer management or raw data including current stock quotes, index performances or historical price data. Such tools may be purchased from a software company and then installed in computers. These tools assist in gathering, processing and analyzing raw data so the information is more useful to the investor.
For example, an investor can take raw data of the historical closing prices of certain companies and run it through investment software to find out additional information such as the volume of stocks traded on a particular company for a said period of time or the historical price trend of one company compared to an index of other companies. These stock investment tools generate reports that assist investors in developing more effective trading strategies from the raw data they originally had.
Certain stock investment tools purchased from various software companies may cost hundreds of dollars. This type of pricey investment may not be practical for small scale investors looking to make a profit right away. Individual or beginning investors can take advantage of analysis tools on the Internet made available from stock market companies for free to their clients. These tools are also made available for free to online investment clients to help them develop their trading strategies to try to achieve profits.
Efficient stock investment tools, research products and information are readily accessible on the Internet for your convenience. However, it still requires data gathering, interpretation of analysis and careful planning to ensure successful trading. By using some online tools and careful analysis of the data, investors can develop viable trades for long term investment growth.
Everyone is looking for a quick and easy way to riches and happiness. It seems to be human nature to constantly search for a hidden key or some esoteric bit of knowledge that suddenly leads to the end of the rainbow or a winning lottery ticket.
While some people do buy winning tickets or a common stock that quadruples or more in a year, it is extremely unlikely, since relying upon luck is an investment strategy that only the foolish or most desperate would choose to follow. In our quest for success, we often overlook the most powerful tools available to us: time and the magic of compounding growth. Investing regularly, avoiding unnecessary financial risk, and letting your money work for you over a period of years and decades is a certain way to amass significant assets.
Here are several tips that should be followed by beginning investors.
Everyone is looking for a quick and easy way to riches and happiness. It seems to be human nature to constantly search for a hidden key or some esoteric bit of knowledge that suddenly leads to the end of the rainbow or a winning lottery ticket.
While some people do buy winning tickets or a common stock that quadruples or more in a year, it is extremely unlikely, since relying upon luck is an investment strategy that only the foolish or most desperate would choose to follow. In our quest for success, we often overlook the most powerful tools available to us: time and the magic of compounding growth. Investing regularly, avoiding unnecessary financial risk, and letting your money work for you over a period of years and decades is a certain way to amass significant assets.
Here are several tips that should be followed by beginning investors.
1. Set Long-Term Goals
Why are you considering investing in the stock market? Will you need your cash back in six months, a year, five years or longer? Are you saving for retirement, for future university expenses, to purchase a home, or to build an estate to leave to your beneficiaries?
Before investing, you should know your purpose and the likely time in the future you may have need of the funds. If you are likely to need your investment returned within a few months, consider another investment; the stock market with its volatility provides no certainty that all of your capital will be available when you need it.
By knowing how much capital you will need and the future point in time when you will need it, you can calculate how much you should invest and what kind of return on your investment will be needed to produce the desired result.
Remember that the growth of your portfolio depends upon three interdependent factors:
Ideally, you should start saving as soon as possible, save as much as you can, and receive the highest return possible consistent with your risk philosophy.
2. Understand Your Risk Tolerance
Risk tolerance is a psychological trait that is genetically based but positively influenced by education, income, and wealth (as these increase, risk tolerance appears to increase slightly) and negatively by age (as one gets older, risk tolerance decreases). Your risk tolerance is how you feel about risk and the degree of anxiety you feel when risk is present. In psychological terms, risk tolerance is defined as “the extent to which a person chooses to risk experiencing a less favourable outcome in the pursuit of a more favourable outcome.” In other words, would you risk NPR 1000 to win NPR 10,000? Or NPR 10,000 to win NPR 10,000? All humans vary in their risk tolerance, and there is no “right” balance.
Risk tolerance is also affected by one’s perception of risk. For example, flying in an aeroplane or riding in a car would have been perceived as very risky in the early 1900s, but less so today as flight and automobile travel are common occurrences. Conversely, most people today would feel that riding a horse might be dangerous with a good chance of falling or being bucked off because few people are around horses.
The idea of perception is important, especially in investing. As you gain more knowledge about investments – for example, how stocks are bought and sold, how much volatility (price change) is usually present, and the difficulty or ease of liquidating an investment – you are likely to consider stock investments to have less risk than you thought before making your first purchase. As a consequence, your anxiety when investing is less intense, even though your risk tolerance remains unchanged because your perception of the risk has evolved.
By understanding your risk tolerance, you can avoid those investments which are likely to make you anxious. Generally speaking, you should never own an asset which keeps you from sleeping in the night. Anxiety stimulates fear which triggers emotional responses (rather than logical responses) to the stressor. During periods of financial uncertainty, the investor who can retain a cool head and follows an analytical decision process invariably comes out ahead.
3. Control Your Emotions
The biggest obstacle to stock market profits is an inability to control one’s emotions and make logical decisions. In the short-term, the prices of companies reflect the combined emotions of the entire investment community. When a majority of investors are worried about a company, its stock price is likely to decline; when a majority feel positive about the company’s future, its stock price tends to rise.
A person who feels negative about the market is called a “bear,” while their positive counterpart is called a “bull.” During market hours, the constant battle between the bulls and the bears is reflected in the constantly changing price of securities. These short-term movements are driven by rumours, speculations, and hopes – emotions – rather than logic and systematic analysis of the company’s assets, management, and prospects.
Stock prices moving contrary to our expectations create tension and insecurity. Should I sell my position and avoid a loss? Should I keep the stock, hoping that the price will rebound? Should I buy more?
Even when the stock price has performed as expected, there are questions: Should I take a profit now before the price falls? Should I keep my position since the price is likely to go higher? Thoughts like these will flood your mind, especially if you constantly watch the price of a security, eventually building to a point that you will take action. Since emotions are the primary driver of your action, it will probably be wrong.
When you buy a stock, you should have a good reason for doing so and an expectation of what the price will do if the reason is valid. At the same time, you should establish the point at which you will liquidate your holdings, especially if your reason is proven invalid or if the stock doesn’t react as expected when your expectation has been met. In other words, have an exit strategy before you buy the security and execute that strategy unemotionally.
4. Handle Basics First
Before making your first investment, take the time to learn the basics about the stock market and the individual securities composing the market. There is an old adage: It is not a stock market, but a market of stocks. Your focus will be upon individual securities, rather than the market as a whole. There are few times when every stock moves in the same direction; even when the averages fall by 100 points or more, the securities of some companies will go higher in price.
The areas with which you should be familiar before making your first purchase include:
Knowledge and risk tolerance are linked. As Warren Buffett said, “Risk comes from not knowing what you are doing.”
5. Diversify Your Investments
Experienced investors such as Buffett eschew stock diversification in the confidence that they have performed all of the necessary research to identify and quantify their risk. They are also comfortable that they can identify any potential perils that will endanger their position, and will be able to liquidate their investments before taking a catastrophic loss.
The popular way to manage risk is to diversify your exposure. Prudent investors own stocks of different companies in different industries, sometimes in different countries, with the expectation that a single bad event will not affect all of their holdings or will otherwise affect them to different degrees.
Imagine owning stocks in five different companies, each of which you expect to continually grow profits. Unfortunately, cirplusstances change. At the end of the year, you might have two companies (A & B) that have performed well so their stocks are up 25% each. The stock of two other companies (C & D) in a different industry are up 10% each, while the fifth company’s (E) assets were liquidated to pay off a massive lawsuit.
Diversification allows you to recover from the loss of your total investment (20% of your portfolio) by gains of 10% in the two best companies (25% x 40%) and 4% in the remaining two companies (10% x 40%). Even though your overall portfolio value dropped by 6% (20% loss minus 14% gain), it is considerably better than having been invested solely in company E.
6. Avoid Leverage/Margin Loan
Leverage/Margin loan simply means the use of borrowed money to execute your stock market strategy. In a margin account, banks and brokerage firms can loan you money to buy stocks, usually 50% of the purchase value. In other words, if you wanted to buy 1000 shares of a stock trading at NPR 100 for a total cost of NPR 100,000, your brokerage firm could loan you NPR 50,000 to complete the purchase.
The use of borrowed money “levers” or exaggerates the result of price movement. Suppose the stock moves to NPR 200 a share and you sell it. If you had used your own money exclusively, your return would be 100% on your investment [(200,000 -100,000)/100,000]. If you had borrowed NPR 50,000 to buy the stock and sold at NPR 200 per share, your return would be 300 % [(200,000-50,000)/$50,000] after repaying the NPR 50,000 loan and excluding the cost of interest paid to the broker (which is usually 16% and over).
It sounds great when the stock moves up, but consider the other side. Suppose the stock fell to NPR 50 per share rather than doubling to NPR 200, your loss would be 100% of your initial investment, plus the cost of interest to the broker [(50,000-50,000)/50,000].
A margin is a tool that can go extremely bad in a stock market like Bangladesh.
Final Thoughts
Stock investments historically have enjoyed a return significantly above other types of investments while also proving easy liquidity, total visibility, and active regulation to ensure a level playing field for all. Investing in the stock market is a great opportunity to build large asset value for those who are willing to be consistent savers, make the necessary investment in time and energy to gain experience, appropriately manage their risk, and are patient, allowing the magic of compounding to work for them. The younger you begin your investing avocation, the greater the final results – just remember to walk before you begin to run.
Looking to earn money online in Nepal and don’t know where to start. Then you came to the right place as we will tell you how to earn money online in Nepal without any investment.
Who doesn’t want to make money online without having to put any money down? Everyone wants to make money, and everyone need cash. First and first, I’d like to state unequivocally that there is no easy or quick way to make $1,000 in a single day. I’m not saying it’s impossible to make a thousand dollars, but there’s no such thing as an easy way.
For the past few years, there have been various scam websites and news reports claiming that you can easily make money online, and I would like to inform you that all of them are false, and you should not fall for such nonsense.
Yes, you certainly can. However, you must be dedicated and focused on specific aspects and refrain from falling for the phony scams and promises.
Isn’t it true that making money online has long been a hot topic in Nepal? When people in Nepal are asked how to make money online, they frequently respond with Data Entry or Captcha Writing. It’s not just restricted to these things; there are hundreds of other ways to make money.
If you’re looking for a way to make money online in Nepal without doing data entry or something similar, here is the place to be. Data entry is one way to generate money online, but there are a variety of other ways to make money online in Nepal. Instead of data input, you can make more using these approaches.
As we work online, the payment is also done online and the payment method is one of the most challenging aspects as PayPal is one of the most used payment methods and Nepal doesn’t support this payment method. Other than that there are no challenges that will stop you from earning money online.
There is always a solution to a problem, and this one is no different. You might ask family or friends who live in a country that accepts PayPal payments to collect your money and transfer it to your account.
Another option is to use Payoneer, which only charges a few percent of the amount when withdrawing from local banks.
I’ll show you 7 easy ways to make money online in just a few minutes. However, you must concentrate on these factors because making money online might be difficult. It’s possible that you won’t make $10 in the beginning. To make money online, you must have patience because it requires a lot of devotion and effort. You can make more than 1000$ every month once you have that. In today’s Nepal, many people are making a solid living by using YouTube and Google AdSense to make money. In this article, I will discuss seven alternative ways to make money online in Nepal.
I’d want to inform you ahead of time that Facebook does not pay businesses or people. So, how are we expected to make money off of Facebook? There are a variety of ways to profit from Facebook. Being an Influencer is one of the finest ways to make money on Facebook. An influencer is someone who has a larger-than-average impact on their following. You can be an influencer if you have a large number of followers on social media and can persuade them to do something. This is a great way to get money. There are a variety of brands on the market that wish to use social media to promote their products and services. There is a place where you can approach them and engage with the brands, as well as promote their brands on your profile, pages, and even groups for a fee.
After Google, YouTube is the world’s second most popular search engine and the most popular video search engine. This provides you with a huge audience. Many people have recently begun to monetize Google and, as a result, have made a significant amount of money.
You might be wondering how we get money from YouTube. Many vloggers, singers, TV networks, YouTubers, Dancers, and others have made a lot of money using YouTube in recent years.
To begin, you must first create a YouTube channel. To apply for Monetization on YouTube, you must have 1000 subscribers and 4000 hours of playtime in the previous 12 months, and you must update your material and videos on a regular basis. It’s challenging at the beginning, but after you’ve mastered it, you can quickly make money with YouTube.
To reach the 1K subscriber mark and 4000 hours of playtime, you must be incredibly creative and conduct extensive research on what people like to watch and how you can provide it to them. Creating new material and getting people to view it is a difficult task. However, once you have the necessary information and understanding, you can simply accomplish this.
You can sign up for AdSense and link it your YouTube account. Once your AdSense account gets verified, the ads will be displayed in your videos. You will be paid if someone clicks the ads in your videos or per 1000 impressions.
When it comes to making money online, blogging is undoubtedly one of the most effective strategies. Blogging is a way to earn money without having to work. Then there’s blogging, where there’s no way of knowing how much money you’ll make. It is entirely dependent on how much time you devote to your site. You can make a thousand dollars in a month or simply ten dollars. As a result, it is entirely dependent on your work, as well as how you do research and incorporate those findings in your blog. If blogging is your hobby and you enjoy it, there is no limit to how much money you can make.
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First and foremost, you will require a blog; if you do not already have one, you may create one using several free platforms such as WordPress or BlogSpot, which will provide a blog under a subdomain under their main domain. I recommend that you utilize WordPress to start your own blog. Before you start a blog, you should conduct a lot of research to figure out what niche you want to focus on. To begin, conduct research and then apply what you’ve learned to your blog.
When you first start blogging, you may not be able to make any money because there are many things to learn before earning money through a blog. Continue to update your blog on a regular basis, and after 5 to 6 months, you will begin to earn money from it.
In Nepal, Google AdSense is one of the most popular ways to make money online. All you need is a website or a YouTube channel to start monetizing your website or YouTube channel by placing Google advertisements on your website. When someone visits your website or subscribes to your YouTube channel, you will be rewarded.
It’s very easy to apply for AdSense, all you need is to follow these steps:
One of the most effective ways to make money online is through affiliate marketing. People are making a lot of money with affiliate marketing these days, with some earning over $2,000 each month. So, if they can do it, you can certainly do it. All you need is commitment and desire, and after a few months, you’ll be making $1,000 each month.
In simple terms, you get a commission each time if someone purchases certain products with your reference. For example, someone buys a smartphone from amazon where the customer was redirected to amazon through your link.
First and foremost, you must determine which affiliate product best meets your needs or that you wish to market. There are hundreds of things to choose from; all you have to do is decide which one you want to sell.
Physical and digital products are the two sorts of products you can promote. Guides, books, software, video courses, and other digital products provide a high commission range of 50 percent to 75 percent.
Following that, you’ll need a website or a blog. If you already have a blog, that’s excellent; otherwise, you’ll need to make one where you’ll affiliate the products. Include your affiliate links on your website and market it. As your users, they are one of the most crucial components in developing a good audience. Share your content on social media and in other forums to reach the correct audience.
After a few months, you should be able to make a respectable living through affiliate marketing.
THE FACT IS THAT AFFILIATE MARKETING IS NOT EASY MONEY! DO NOT CONSIDER AFFILIATE MARKETING UNLESS YOU ARE WILLING TO WORK HARD AND SPEND TIME (AT LEAST A YEAR OR MORE). LEAVE. IMMEDIATELY.
If you have certain skill sets that can assist others expand their business, freelancing provides a fantastic atmosphere to work from home and market your service. Freelancing has become increasingly popular in Nepal in recent years because it does not require any type of investment or compulsion to work a 9 to 5 job. When you freelancing, you are your own boss because you work on your own schedule.
The above-mentioned skills are most-used skills in freelancing and most paid also. If you have these certain skills then you can earn a good amount of money through freelancing.
Some of the top-rated freelancing sites where you can earn good money are:
Sponsored Ads is another technique to make money online in Nepal if you have a blog with a fair quantity of traffic and readers. Various brands are attempting to advertise their products or services, and you can connect with them and run sponsored adverts on your site to promote their offerings.
You could also opt for Sponsored Reviews. You can do sponsored evaluations of various underappreciated products if you have a tech-related website or something similar. All you have to do is write product reviews and you will get compensated. Some businesses seek to earn their consumers’ trust, and your evaluations can assist them. It is without a doubt the simplest way to make money online in Nepal.
Many people in Nepal are suffering and having problems with the online payment system since their PayPal accounts are not valid in Nepal. Though there are a few other ways to obtain the funds you have earned. And for a PayPal account, there are three EASY AND LEGAL WAYS to do so in Nepal.
Making money online isn’t easy, but it’s also not impossible. All you need is a little amount of hard effort and determination. Don’t ask someone how to make money online in Nepal anymore; you can do it yourself without the fakes and scammers.
Don’t get carried away with the hundreds of ways to make money online. Simply choose a handful that are appropriate for you and focus your efforts on those few methods. You will be making a good quantity of money after a few months. Simply keep yourself motivated by setting a goal and never stopping until you reach it. If you achieve one objective, create a new goal that is a bit more difficult, and keep going until you reach all of your goals.