stock investment???

Question

dont know anything about it, but if anyone can let me know in detail how to go about it id appreciate it. IS it a good money investment or not???

Answer 1

Hi,

I appriciate your interest in stock market. At the beginning stage its always advisable to do intraday(Holding positions not more than one trading day) to make my answer simple i wont advice you to start trading with 500/- its always better to trade stocks worth more than 250 Rs. and not less than 10 units(Shares). So, initially you will need something between 2,500 to 5,000 Rs(dont invest more then what you afford to loss).....

Diversification in Investment purely depends on your Age & Risk Appitate.

Age <25 : 70% Equity, 20% Mutual Funds, 10% Bonds
Age 25-40 : 50% Equity, 30% Mutual Funds, 20% Bonds
Age >40 : 40% Equity, 40% Mutual Funds, 20% Bonds


First you start trading later you personally gain knowledge about Mutual funds, Bonds....

I hope this break-through is good enough for taking calculated risk.



Reason for trading with 2,500 to 5,000 Rs:
Online Brokers( ICICI, Kodak, Motilal.....) charge a flat commision of Rs. 25/- (or) 0.2% per trade (Whichever is HIGH). So, you should make profit more than 25 Rs. per trade...

Example:

At 10.30 A.M you are buying 10 TNPL Shares at Rs.110( 10 * 110 = 1100 Rs.) ...at 10.45 A.M TNPL moves to 121 Rs....so,sell the shares...

Profit : 121(Current Price) - 110 (Purchase Price) = 11 Rs.*10(No. of shares)=110 Rs.

So,your Net profit would be some were around 75 Rs. after tax and commision....



There were 3 basic requirements to trade in BSE/NSE:

1. PAN Number.
2. DEMAT A/C.
3. Trading Account.




@@@@ - - - Hope you understand the scenario of trading ...."Happy Trading"



Regards,
Baskaran.
Mail id: [e-mail]

Note: Feel free to mail me......

Answer 2

It can be. But remember this, most of the conversation you will see here is about speculations, trading. Investment is almost a different horse. Think of investment as planting a tree because you want fruit or wood later. Think of trading as selling seeds, saying this seed will make someone better fruit trees or that seed will make someone stronger lumber. Traders just make the investments more fluid, someone to sell to when you want or need to get out of an investment. Of course, they will do so for a price. Decide which you are wanting to be, then study that. (The SEC.gov cite has links that will get you some good information, if you don't get stuck in the technical areas, that and most brokerage firms do too).

Another way is to read from cites like CNN.com/Money or BusinessWeek or even MotleyFool (I hate their name, but they have good stuff). You see news about this company or that doing something good and interesting, then you open a brokerage account and buy some. Forget the minor price fluctuations, as long as that company is doing what you bought into it for, you are a part of it--that is investing.

Answer 3

Stocks are very good (as a whole) but there are thousands of different companies and it can be very difficult (even for experienced investors) to know which stocks will grow and which ones will decline.

I invest 90% of my money in stocks, but I do it through mutual funds. This way I have an experienced manager choosing which companies to buy and sell, I just need to research the best mutual funds.

Answer 4

Stocks can be a very good investment for the long term..your best bet to start is thru a fund that has many companies.. it is "diversified' so you are not putting all your faith and money in one comapny.. get an investment advisor thru your bank, credit union or workplace...they may charge a fee but can help you get started and clarify what is the best strategy for YOUR situation....
we got one several years before retiring and he was very helpful in focusing our resources [and scattered thinking] on what was best for our goals... congratulations on thinking about saving and investing .Incidently, stocks will return the most of any investment over the long term but they are not for quick money or short term needs...we lost over 25% of our funds in 2001..that is just now being recouped....so plan on long term....good luck.

Answer 5

Yes, If you arent' in the stock market, you are actually losing money to inflation. A good place to start out is this website http://www.investopedia.com This site will teach you everything you need to know about investing. Great site!

Answer 6

if you do it right is good. If not... Invest - don't speculate. Nothing to read or know. ETFS & Closed End funds best. No need to trade actively. ADX PEO (oil will go back up) EAF EWA IAU (gold looks good long term) No detail to go over. Open acct at schwab.com or wherever & buy some of the above. That's it.

Answer 7

Don't expect to find out anything about it here on YA. If you seriously want to educate your self on the stock market, a very good place to start is to read the book The Battle for the Soul of Capitalism by John Bogle, the founder of Vanguard.

Answer 8

Stock investment depends on how you wish to make gains, either through short term speculation, long term capital gains or through dividend.

People analyze stock in many different way which some of it is fundamental, technical etc.

For technical click the link below
http://stockcharts.com/education/

For fundamental, click the link below
http://www.investopedia.com/university/fundamentalanalysis/

There is still more you need to know about stock which is impossible to write down here.
I recommend you to gain the knowledge of stocks 1st before making any investment.

Go to the link below:
http://en.wikipedia.org/wiki/Main_Page

Type in the search box one by one to figure out everything about stock;
speculation, fundamental analysis, technical analysis, efficient market hypothesis, warren buffet, george soros, benjamin graham, initial public offering, stock bubble, equity, derivative, commodity etc

Go one by one. It may takes time but learning is crucial.
Good luck.

Answer 9

well,it is a good investment , but you should read about it ,and then invest in a small amounts then increase your investment , the main goal is to avoid losing your money .so you should bye in low prices and sell in high prices . and good luck.bye the way don't forget to ask your broker coz he got the required experience

Answer 10

I recommend reading a book called "Fooled by Randomness" before trying this out.