im from india,i want to invest in stocks.but i know nothing about it . could someone advice me.?

Answer 1

Here's what I think you need to know about stocks and trading in general:
A] The market is a living, breathing thing. You are trading people. You are not trading stocks or anything else. On Wall Street there aren't any gifts.

B] You can earn money when the stock you choose goes up!
You dan earn money when the stock you choose goes down.
You can earn money when the stock you choose goes sideways.
I KNOW THIS FOR A FACT: I earned money ALL three ways.

Keep in mind: trade in the direction of the market. Many times the stock will trade the same way as the market is going.

C] Bulls (Buyers) earn money.
Bears (Sellers) earn money.
Pigs get fat.
Hogs (Greedy Traders) get slaughtered. Those people lose the money in their trading accounts.

D] Trees don't grow to Heaven - neither do stocks.

E] For each and every strategy, you must have a set of written rules for that trading strategy.

F] For each and every trade: Plan the trade AND trade your plan. Don't "chase" or go after any stock. Let the trade come to you.

G] When you break your own trading rules, you have a very high risk of breaking your trading account.

When the trade goes against you - you are losing money - get out!

H] V.I.C. P.I.E.
Volume Is the Cause. Price Is the Effect.

I] Stay away from penny stocks or stocks ending in .BB AND .PK; although these are very inexpensive they are EXTREMEMLY risky.

J] As far as those promotions and literature you get in the mail: Do your OWN investigating and checking out of that stock.
(Refer to Rule A])

K] When you open your trading account, you want to open it as a "speculator" AND get approval for a margin account AND to trade options.

You cannot be a day trader or a scalper with a balance less than $25,000 U.S. in your trading account.

When you open your account, you will be given LOTS of literature to read AND understand. READ IT AND UNDERSTAND IT!

L] Two free wonderful on-line sites are investopedia.com AND yahoofinance.com - yes, there are many others.

I haven't scratched the surface. This is the bare essentials or facts. THERE ARE MANY MORE!

Thanks for asking your Q! I enjoyed answering it!

VTY,
Ron Berue
Yes, that is my real last name.

Answer 2

Yes, the first thing to do is to learn how. Once you have learned how one rule of thumb is to pick an investment plan you have studied and stick to it.

For example, some people, including me, invest a certain amount each month that has been rated by Morningstar as a 4 star or 5 star fund.

Over the short term I can lose money, but over the long term I always make money. So every month no matter if the market is acting like a dive bomber, I still invest the same amount.

Over the longer term I always end up making money. When I have gained 40 percent through capital growth and reinvestment, I take out half my money, blow it on something like travel or a new car.

Meanwhile I continue to stick to the plan. If you reinvest in an income fund that pays out each month or a fund that issues you new shares every six months or at the end of the year, I find there is a compounding effect. So when I get a statement that gives the total dollar amount I invested and the total dollar amount of my holding may have gone up by 40 percent even though the funds share's price has only increased 20 percent, the total dollar amount invested and the total holdings amount are my sell signals.

I use this to pay my income tax and I have found that I have to deduct half the dollar amount than if I let the government use montly deductions. Instead I have to give the government 4 cheques each year because over time my income tax portfolio has gathered a reserve and it has become so large that I need to put aside only 50 percent each month of what I owe each month. If the market tanks the reserve is enough to cover the shortfall for that year or sometimes even two years.

Then when the market rises the value rises more far more quickly than it went down because I have a higher number of shares going up because of averaging down.

Investing directly in individual stocks is a different discipline and much more complicated. But you have to decide to either hold on or bail and know why your are doing it. If a company I own tanks but it is still earning money I hold on. Usually I'm glad I did. If the stock goes up and despite the company losing money two quarters in a row, I sell, usually I'm glad I did.

Answer 3

There are various methods to invest specially in todays scenario where the Indian Capital markets are booming.

As someone rightly said if you dont know much then instead of entering yourself just hire an advisor and start off.

well or else you can start investing like a mutual fund of your ownself. depending upon the idea that you have in your mind.

still preferably take a help of a broker or investment advisor,

Revert in case of any further queries.

Regards

Vinay

Answer 4

For someone who is just beginning the best option in my opinion is to buy a mutual fund. There are some good choices available to you. You can learn about them at this link. One to give consideration to is HDFC Equity. The benefit of starting with a mutual fund is that it allows you a diversity of investments without a large cash outlay thus reducing your specific risk.

http://www.valueresearchonline.com/funds/default.asp

Answer 5

i agree with muncie. invest in something you know, and mutual funds is not as complicated as stock market. But, here are some tips for you to get started in stock investing subject;

fundamentally, you can use various key financial ratios to start screening which stock worth your hard earned money. from there, you can go to the next level by further study how they perform qualitatively. Look here for more info:

How to Pick A Good Stock
http://www.stock-investment-made-easy.com/good-stock-pick.html
Guide in Analyzing Stock
http://www.stock-investment-made-easy.com/analyzing-company.html

then, you must study how much the stock worth. to do this stock valuation, you have to calculate intrinsic value. once you got it, buy the stock when it is at its margin of safety, either it was discounted than its intrinsic value, or discounted from the past historical prices. Look here for details:

How to Calculate Intrinsic Value
http://www.stock-investment-made-easy.com/calculate-intrinsic-value.html
How to Determine Margin of Safety
http://www.stock-investment-made-easy.com/margin-of-safety.html

now the last point but the most important things, how you can make money from it? look, good company will grow over time. if you invest for your retirement, you can sell the stock after 20 years with as much as 30% return per year! doesn't it sounds good? and besides, you'll be earning dividends year after year, which will also grow annually!

Penny Stocks, Short Cut to Wealth
http://www.stock-investment-made-easy.com/penny-stock-investing.html

Answer 6

BEST ADVICE

If you know nothing - dont get involved!

At least pay for an independant financial advisor to guide you through the process,