Shares Buying?

Question

What are the shares should i purchase with the amount of Rs.10,000.00 to earn More profit.

Answer 1

I see you are very interested in Investing in the stock markets and that you are about to do something that you will regret for a very long time.

Always remember, Asking For Free Off-The-Street Advise Is A Highway To Disaster!

If anyone can trade the stock markets successful by posting questions like this, why are so many people still poor? There are quite a number of things you need to learn before you can even start thinking of the stock markets ...

1. You need to understand how the stock market works and what it is exactly about.

2. You need to know what are the different styles of trading in stocks and shares.

3. You need to read about why so many people lose their shirts in the stock markets so that you can avoid their mistakes and also decide if this is a risk you want to take.

For all these issues and more, you can read about them from some of the articles that I wrote at http://www.mastersoequity.com/articles.htm

After you are adequately armed with the basic concepts and ideas, you need to know how to find profitable stocks to trade or invest in. You can do that the easy way by subscribing to stock pick services (example http://www.stockpickmaster.com ) or you can learn to use charting tools and softwares to find stocks with parameters that you can pre-define. (example http://worden.mastersoequity.c... )

Remember, the slogan "Just Do It", Just won't do for the stock markets. If profiting in the stock markets is as simple as buying a single stock , then why are so many people still poor?

After you have all the above mentioned knowledge, you need to ask the following golden questions before you can decide whether a stock is worth buying or not :

1. Why are you of the opinion that this stock will rise?

2. Is your opinion valid in the first place?

3. When are you expecting it to rise? Can you hold on for that period of time or longer?

4. What is your expected entry price? After what price would your expected profit margin be too thin to enter upon?

5. Where is your expected stop loss point? What is your stop loss point based on? Where will you tell yourself that it is time to take a loss and get out?

6. Where is your expected profit taking point? What is your profit taking point based on?

7. Does the way you are buying the stock allow you to hold on until your expected profit taking point?

8. How much of your money should you dedicate to this one trade?

9. What is the level of primary, secondary and idiosyncratic risk you are undertaking when deciding how much of your fund to use?

10. What is your cashflow need? Does your cashflow needs allow you to hold the full lifetime of the stock?

After you are able to answer all these questions confidently, THEN you are ready to... PAPER TRADE your stock strategy. Yes, even at this point, you are NOT READY to trade for real. You should trade on PAPER for at least 6 months and become consistently successful BEFORE you take your stock strategy into real life.

Then.. you are ready to start... but there is still no guarantee of success as paper trading is very different from real trading. You will need another maybe 1 year or 2 trading very little money and be consistently successful BEFORE you are ready to increase your stakes.


So, as you can see, success in the stock markets is not easy at all the the less knowledge you have, the more risk you undertake. I lost hundreds of thousands in the stock markets before I become successful.

Take heed and good luck.


All in all, investment and trading is a lifelong education and non stop learning. No one is ever done learning and catching up with changes in the markets.

If you care to read about how I went from completely broke to retired millionaire trading stocks and options by 28 years old, you can go to http://www.mastersoequity.com/

Hope these information helps.


http://www.optiontradingpedia.com/

http://www.mastersoequity.com/

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Answer 2

tips

Get a broker

People like you and me cannot just go to a stock exchange and buy and sell shares.

Only the members of the stock exchange can. These members are called brokers and they buy and sell shares on our behalf.

So, if you want to start investing in shares, you can do it only through a broker.

Every stockbroker has to be registered with the Securities and Exchange Board of India, which is the stock market regulator.

You can either choose a broker (who is directly registered with SEBI) or a sub-broker (people licensed by brokers to work under them).

The Bombay Stock Exchange directory or the National Stock Exchange Web site will give you a list of brokers affiliated to them. Most of them entertain retail clients.

If you want an online broker, you can start by looking at the Web sites of some well-known online players: Sharekhan, Kotak Securities, ICICI Direct, 5paise and India Bulls.

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How to sell shares at the right time

2. Get a demat account

Gone are the days when shares were held as physical certificates.

Today, they are held in an electronic form in demat accounts.

Demat refers to a dematerialised account.

Let's say your portfolio of shares looks like this: 40 shares of Infosys, 25 of Wipro, 45 of HLL and 100 of ACC.

They will show in your demat account. You don't have to possess any physical certificates showing you own these shares. They are all held electronically in your account.

Periodically, you will get a demat statement telling you what shares you have in your demat account.

How to get a demat account

To get a demat account, you will have to approach a Depository Participant.

A depository is a place where an investor's stocks are held in electronic form.

There are only two depositories in India -- the National Securities Depository Ltd and the Central Depository Services Ltd.

The depository has agents who are called Depository Participants. In India, there are over a hundred DPs.

Think of it like a bank. The head office, where all the technology rests and the details of all the accounts are held, is like the depository. The DPs are like the branches of banks that cater to individuals.

A broker, however, is not similar to a DP. A broker is a member of the stock exchange and he buys and sells shares for his clients and for himself. A DP, on the other hand, gives you an account where you can hold those shares.

To get a list of the registered DPs, visit the NSDL and CDSL Web sites.

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5 rules when buying stocks

3. Get a PAN

The taxman demands that you get yourself a Permanent Account Number.

This is a unique 10-digit alphanumeric number (AABPS1205E, for example) that identifies and tracks an individual in the taxman's database.

Almost every money transaction demands the use of a PAN. These include:

~ When you get a job

~ When you file an income tax return

~ When you open a bank account

~ When you deposit cash of Rs 50,000 or more in a bank

~ When you open a bank fixed deposit of Rs 50,000 or more

~ When you open a post office deposit of Rs 50,000 or more

~ When you buy/ sell shares and mutual funds

~ When you buy/ sell property

~ When you buy a vehicle

~ When you take a loan: home/ personal/ other

~ When you install a telephone (or buy a cell phone)

~ When you pay in cash to hotels and restaurants against bills for an amount exceeding Rs 25,000 at a time

~ You also need to mention it in every transaction you have with the tax officials.

If you are going through a tax consultant, you need not worry. He will supply you with Form 49A (the application form for the PAN number) and give you a list of the documents he needs.

However, if you believe in doing things on your own, the process is really not that tedious.

You could visit the official Web sites of the Income Tax department or UTI Investor Services Ltd or National Securities Depository Limited.

Download Form 49A from any of these sites and follow the instructions.

You should get your PAN in the form of a laminated card within a month.

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3 stock market mistakes to avoid

4. Check if you need a UIN

This depends on how much you plan to invest.

The Unique Identification Number is the identification an investor needs to buy and sell shares or mutual fund units.

It is part of the Security and Exchange Board of India's attempt to create a database of all Market Participants and Investors, called MAPIN.

Who needs a UIN?

An investor who is involved in a single transaction of Rs 1,00,000 or more will have to quote his/ her UIN.

If you plan to be a prominent stock market player or a mutual fund investor and expect to deal with such huge amounts in the near future, you should get a UIN.

SEBI has appointed the National Securities Depositories Ltd that, in turn, has appointed Points Of Service agents. The NSDL Web site has a list of the POS agents.

Visit the office of a POS agent. Make sure you take an appointment before you go. As part of the application process, your fingerprints will be scanned and a photograph taken.

All you have to do is fill and submit an application form (there are separate forms for corporates and individuals). You can also download the form for an individual at the NSDL Web site.

Incidentally, the UIN is totally different from a PAN. The Permanent Account Number is an identification number for filing your income tax returns.

Answer 3

No,..It's averaging down your Return. The only reason that investment guy suggest you keep buying is to keep his money coming in. imho...The ideal fund is when a manager at some point quits taking in new money(Hedge-funds), related to timing the market.."Buy and Hold forever, Is a losing strategy...In a 401k you have little choice(but a 401k is well worth the trouble(it would depend on how good the fund manager is).. If it was Apple for the last 10 years,.Then yes, you're bloody rich..Ah!..Hah Ha.(1 in 1000)

Answer 4

Go to sites like icicidirect.com and moneycontrol.com to learn about shares a lot.

Answer 5

U CAN BUY NESCO BSECODE (NEWSTD1) WITH THE TARGET OF 3300 CMP 1805
BAGFILM TARGET 40

Answer 6

Buy 33% each in:
VIP Industries
NIIT Tech
RIL

GL

KKP

Answer 7

It depends upon your period of holding.
Clarify whether you are short term investor or long term investor
Mail me I will tell you in detail.

Answer 8

You can invest in IPOs to begin with.

Answer 9

Infosys,Dr.Reddys,Polaris,TCS,Satyam etc. can be considered because they have steady growth.

good luck

Answer 10

infosys,wipro,reliance