hi,i am new to investing in shares,want to invest a small amount,please tell a simple way to do it on line?

Question

hi i am new to investing in shares and want to invest a small 4 digit amount.So if any one has knowladge about it please tell me in simple terms how is it done online.

Answer 1

First of all you need to open a DEMAT A/c. Once you are ready with that then ........

Now, some months back I too was a new invester in Share Market. But after talking to various friends, chatting with various knowledgeable persons from this field, I came to know the following things which an investor needs in advance prior to investing. They are:
1. The Fundamentals of the company you want to invest. Like the P.E. Ratio, Debt Ratio, Book Value, Face Value, Equity Per Share ratio, etc. These are available on the different sites like ICICI Direct.com, Moneycontrol.com etc.
2. Find out the 52 week high and 52 week low of each company.
3. The Income of these company's, Profit after Tax, their Dividend history, Bonus history, etc.

Now depending upon the funds available start buying the stocks which you feel gives you around 25% to 35% per annum. Atleast thats my strategy. You may even aim high/lower. Buy when the price is less and Sell when they go up.

At times some of the brokerage units like ICICI Banks, Angel Broking, etc., conducts seminars on the subject. Try attend them and get more clarity. Its free! Keep talking to people who are in this line often and get more clarity. Keep a watch on news of the company. For this you can watch CNBC, Profit channels on the TV everyday. They are good guides and give upto date information about companies. I am sure you will excel one day. Good Luck New Investor.

Answer 2

First, you should open an account at Scottrade.com - they offer $7 online trades. This is a good deal. You might want to read "The Little Book that Beats the Market", to learn the fundamentals of value investing. You might also want to see what the best investors are buying and selling. You can find this information at http://www.top10traders.com - this is a free site that lets you create a portfolio of stocks with $100,000 in "play" money. Each day the site ranks the best performing portfolios, so you can see how your picks perform compared to other investors. You can also read posts on investing from the best traders, as well as share your own investing ideas. There is also a charting feature , so you can see how your portfolio performs compared to the S&P 500.

Here are this month's best traders:

http://www.top10traders.com/Top10Standings.aspx

Good luck.

Answer 3

For new to investing people, a good simple way is to invest in a well diversified mutual fund. Most mutual funds require at least $2500 to start (or the ability to invest $50 or $100 each and every month until you reach the $2500 level (I like the T. Rowe Price family of mutual funds for that, go to www.troweprice.com for more info). A few (usually higher expense funds) require only $500. If you wish to invest directly in companies (you do not invest in shares, you invest in businesses/companies/stocks and you receive shares which show you own part of the company) try calling the investor relations department of the company (you can find that by googling the company's name) and see if they have a dividend reinvestment program where you can also buy the initial shares or try www.sharebuilder.com.

Answer 4

you need to have an online trading account first. eg. icici offers a three in one account which consists of a saving bank acc, online trading acc and a demat acc. Once you get that in place you can start trading online. But what is more important is to chose the stocks wisely afterall you are putting in your hard earned money. Even while buying a tshirt you check the brand, feel the fabric, try the fit, analyse the cost and then take a decision. Be wise with shares also.

Answer 5

This is not so easy. You have to learn about Share Market, Investment, Risk Factor etc..........

If you are serious then open a D.P. A/c in any Bank like HDFC Bank and then proceed. They will help you.

Answer 6

you first need to find a online brokerage such as ameritrade, schwab, etrade, scottrade, etc. then the rest is self explanatory. you just fill in the blanks on the order screen.

Answer 7

Search for answers already posted earlier.....

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