I am new to share trading? Which share shall I buy and is it the right time to buy? I will hold it for 5 yrs.?

Answer 1

Select the shares based on the following factors.

Company having consistent record in earnings and good fundamentals.

High earning per share (EPS) and low price/earnings (P/E) ratio.

Company with dynamic management with vision for further growth.

Company's fundamentals, nature of business, its reputation, future growth, and reasonable price are the main things to be considered before investing in a company's stock.

Answer 2

7 Investment Mistakes to Avoid:

Investment mistakes often happen when decisions are influenced by emotion and when basic principles of investing are misunderstood. Confusion also exists about how investments react to economic and political influences. In saying that, losing money on your investments may not be the result of a mistake, and not all mistakes will result in a financial loss. Help improve your investment performance by avoiding these seven common errors:

1. Investing without the end goal in mind. Keep your goals in mind when considering your investment options so that you can move in the right direction. Your investment should include time frame and your personal tolerance to risk. Planning for your goals should mean that you do not need to make frequent adjustments to your portfolio.

2. Not allowing for the emotions that market cycles will cause. Being human we are all affected by optimism and pessimism which is what affects market cycles – the ups and downs of the market. . Overdoing your involvement in a current trend and then quickly abandoning it creates a buy high/sell low cycle of your own. Remember why you invested in the first place. Has this goal changed? Invest for the medium and long term and forget about cycles. “Buy in gloom and sell in boom”

3. Not being diversified. Allocate your funds to different asset classes such as property, bonds and shares but within those asset classes make sure you are diversified too and not relying on one asset to perform. Spread the risk.

4. Becoming bored with your plan and changing direction too frequently. Many investors tend to look at their investments with a short term view even though they have invested for medium and long term. Remember that there is no index that compares with your own personal portfolio.

5. Investing in the latest fad or speculative investment. This can result in a hodgepodge of investments and mean that you are investing because it’s the latest “sure” thing and the easy way to make a quick dollar. History is littered with examples such as Tulip Mania (1630), The Mississippi Scheme (1719), and The Tech Wreck (2000).

6. Having an unrealistic time horizon and comparing “apples with oranges”. Comparing your investments with dissimilar products will only cause you to take a detour from your original portfolio goals.

7. Taking too much notice of the media. It is the job of the media to report the sensational and the negative, after all it sells more papers.

Answer 3

Well, according to Burton Malkiel, you could blindfold yourself and throw a dart at the Wall Street Journal's stock page and probably do about as well as if you carefully selected a stock yourself. Noone can know if it is the "right time" to purchase any given stock, nor can they know which stock is the "right" one to choose.

However, if you are going to be picking your own stocks, you will want to have at least a loose criteria to pick them. A good starter book I have read is Pat Dorsey's "The Five Rules of Successful Stock Investing". He lays down some basic ground rules and guidelines for picking reasonably good stocks. However, keep in mind that even the best fundamental analysis in the world cannot sidestep the influence of random events.

Good luck. I hope you enjoy the game of stock picking. Personally, I just send my money to Vanguard to stick it in index funds, and then I spend my free time playing Halo 3. It's a lot more fun that looking at balance sheets. However, each person should decide what is best for them and follow that.

Answer 4

Actually it is not the right time to buy. Even then, for long term,
I can suggest some of the good shares but decision is yours. If you wish to hold them for five years I give here a list :

Petronet LNG, RNRN, L and T, Reliance Energy, ABB, Fulford, Sterlite, Sesa Goa, Grasim, Satyam Computer
Infosys, Relience Industries.

If you want to trade, you can not do part time. It requires constant monitoring of price trend. Its a full time job, need sufficient time, study and patience.

Answer 5

what I suggest dont invest in one field ie. divide the money u want to invest in 5parts so u can invest it in natural resources(Reliance natural resources),BHEL,Power Grid,Larsen & Turbo Ltd. & Koutons Retail India Ltd.If u invest in these companies then u can do weakly trading or u can hold as long as u want.But plz watch some shares for atleast a weak before investing.Hope it help u.

Answer 6

You should invest in a diversified mix of stocks, bonds, and money market funds. You want to buy a diversified portfolio of stocks as individual stocks are too risky. Most folks have a dificult time buying a properly balanced portfoilio of stocks on their own. They will misbalance their portfolio by buying all small stocks or all growth stocks, or some other misbalanced assortment of stocks. Unless you know what you are doing, it is best to buy mutual funds. I like Vanguard.com, other people like Fidelity, TIAA-CREF, and DFA. Buy no-load, low cost funds. If you are like most people you will invest part of your money aggressively in stock funds, and part conservatively in money market funds and bond funds. Vanguard.com has an on-line questionnaire which will give you an idea of how to do "Asset Allocation," determining how much to put in each type of fund.

If your company offers a 401K plan at work, try to invest the most you can. The money grows tax free, and some companies will match your contribution. Investing in a mutual fund IRA is also a good idea. If you have children, you may want to consider a 529 plan or other college savings plan that grows tax free.

I like index funds. Because of their broad diversification, you are less likely to have a dramatic drop in value. They also have the lowest expenses. For stock funds, I would suggest putting ~70-80% of your money in the Vanguard Total Stock Market Index Fund. and ~20-30% in a foreign stock index fund. However, there are many different opinions out there on what the best mutual funds are. Read the links below and form your own opinion.

If you have high-interest debt, like credit cards, it is best to pay this off first before trying most of the investment ideas above. You should also have 3-6 months of salary saved up as an emergency fund in a bank or money market fund before trying more risky investments.

Believing advice you get on Yahoo answers can be risky, so read these websites for further information. If you find it too confusing, contact a professional financial advisor. They will charge you significant commissions, however.

Sources:

http://www.vanguard.com/VGApp/hnw/planningeducation
http://www.fool.com/school.htm
http://sec.gov/investor/pubs/assetallocation.htm
http://www.diehards.org/readsites.htm
http://finance.yahoo.com/education/begin_investing
http://finance.yahoo.com/funds/basics

Asset Allocation Calculators
(Determining how much to put in stocks and how much into bonds and money markets is a personal decision depending on your financial status. These Asset Allocation questionaires give you a rough idea how to do this. I like Vanguard best, but try some of the other sites as well.)
https://flagship.vanguard.com/VGApp/hnw/FundsInvQuestionnaire?cbdInitTransUrl=https%3A//flagship.vanguard.com/VGApp/hnw/planningeducation/education
https://ais2.tiaa-cref.org/cgi-bin/WebObjects.exe/DTAssetAlcEval
http://www.ifa.com/SurveyNET/index.aspx

Web forum: http://www.diehards.org/
(Many investment web forums are overrun by scam artists. This one seems the most legitimate site.)


529 plans: http://www.savingforcollege.com

Answer 7

There is no right or wrong time in share market. When ever one person purchases or sells both time he/she commites mistake. Invest for 5 years in power sector.

Answer 8

5 Stocks for 5 Years

IDFC
PowerGRID
L&T
GMR Infra
Reliance Industries

Answer 9

shortlist few good stock &
buy them with monthly buy signal on aptistock
keep trading same stk with signal for 5 yr

more on my blog

Answer 10

first you will study in deep about market,then start trading