Stock markets zooming like hell..Infy Results creating bullish energies in the market trend..So are you ready for the race?
Wait! Think before you proceed!! Trading as opposed to investing is watching intensively at the stock market day-in and day-out, studying the trends in the stocks as they move up or down, and squaring up positions to end your day in net loss or gain. Trading also has several flavours. You may trade in stocks, options, commodities, hedge on funds, go short or long, or even take your 10$ profit from Dow Jones too..Lots of options to watch out for, but are they really worth your money.
If you are really crazy about trading or about stock market, or you are a person already there for around 10 years, please click on the Close button and exit, because this is just a start-on tips session and also I am no person here to convince that you are doing anything wrong. But if you are in a dilemma to invest in stocks/options, here is my advice rather experiences that can place you in the driver's seat.
Online Trading is very easy..Its all about registering with a reliable broker and choosing your right stocks to invest. First, analyze different alternatives by getting brochures from different brokers like KotakSecurities, ICICI Trading, Angel broking, HSBC Securities, etc.. Ok!! What are the things to look out for?
First, watch out for the Brokerage rates..This is very very important. This affects your everyday transaction, and would turn costly if you dont select the right one. Ask the broker if he has any corporate offers(Kotaksec has it, I am with Kotak-so i can give more info on this), then check the Intra-Day and Inter-Day Brokerage rates. My dad took an ICICI Trading account, and for the high brokerage rates it provides, even the small profits he makes turns into severe
losses due to brokerage. Kotaksecurities is pretty descent(0.05 paise/Rs.100 for Intra-Day and 0.45 paise/Rs.100 for Inter-Day trading).
Second, ask him the Startup charges and monthly/annual rates for a demat account. These days, when you start an online account for trading, brokers provide options to hold a 3-in-1 account(Bank a/c + Demat a/c + Trading a/c). Now for starting a demat a/c, there may be options like Rs.30 per month or Rs.750 per year. Kotak provides the former in one of its plans. Then the startup criterias. A trading account in Kotak requires you to have a minimum of Rs.1000 to start with, the bank account to have a min of Rs.2500. Now after all this, and lots of other formal procedures, you will get a Welcome Kit after two weeks.
Third, and really important, check out the Services the broker provides. Services include daily recommendations by SMS that cover both intra-day and inter-day investments, Call-and-Trade facilities, etc.. While asking you to start an account, he says they provide you good regular recommendations to buy a particular stock, etc. But Kotak really Sucks!!! I have never received a recommendation till now and it sure drives you crazy. They have Call-and-Trade facilities like 20 free Trading calls per month but the service Kotak provides, I am fed up with it.
Ok!! Now having opened an account, the next big step is choosing the right stock. Thats completely in your hands. If you are going for a long-term investment, I would suggest you invest in biggies like Infy and they are sure to give you returns. But if you want to play with the market, and go for Intra-Day trading, thats where you need to very very careful.
Remember, 90% of people have lost huge amounts of money in Intra-Day trading. But I went for it to be in the other 10%, but it ultimately turned the other way. Profits came for me in termed of tens and hundreds, and losses in thousands and thousands. I have stopped trading now to take a break i would say, but I am no way quitting it. Who are those bloody idiots to take away my hard earned money. He who quits fails. I will return to conquer.
So if you have lots of time, and wanna gain lots but with huge risk, go for Intra-Day trading. Else i would say Invest!! Thats my mantra now.
My Tips:
1. Invest only that money which you are ready to spare with. Understand your risk portfolio.
2. Dont buy in one exchange and sell in the other. It can go for a Short-Sell.
3. Never short-sell unless you are sure the stock is moving down. You can go Long any time, but once you short-sell, you have to sqaure-off the same day, and if not, stocks will go for Auctions.
4. Never be in a position to give your stocks for Auctions. Big losses can accrue if your shares go for it.
5. If you have no other option but your shares need to be auctioned, discuss with your broker and try to avoid it by transferring some of your friends/relatives shares to your account.
6. Never go for Options/Derivates/Investing in Commodities unless you are very sure about it.
In spite of all these, I would still say I had a very good experience in the Stock-Market. After all, this is what is ruling the Indian economy now. Whatever be the result, its nice to have experienced that, because every moment in our life triggers our understanding to live better. Happy Investing!!
Wait! Think before you proceed!! Trading as opposed to investing is watching intensively at the stock market day-in and day-out, studying the trends in the stocks as they move up or down, and squaring up positions to end your day in net loss or gain. Trading also has several flavours. You may trade in stocks, options, commodities, hedge on funds, go short or long, or even take your 10$ profit from Dow Jones too..Lots of options to watch out for, but are they really worth your money.
If you are really crazy about trading or about stock market, or you are a person already there for around 10 years, please click on the Close button and exit, because this is just a start-on tips session and also I am no person here to convince that you are doing anything wrong. But if you are in a dilemma to invest in stocks/options, here is my advice rather experiences that can place you in the driver's seat.
Online Trading is very easy..Its all about registering with a reliable broker and choosing your right stocks to invest. First, analyze different alternatives by getting brochures from different brokers like KotakSecurities, ICICI Trading, Angel broking, HSBC Securities, etc.. Ok!! What are the things to look out for?
First, watch out for the Brokerage rates..This is very very important. This affects your everyday transaction, and would turn costly if you dont select the right one. Ask the broker if he has any corporate offers(Kotaksec has it, I am with Kotak-so i can give more info on this), then check the Intra-Day and Inter-Day Brokerage rates. My dad took an ICICI Trading account, and for the high brokerage rates it provides, even the small profits he makes turns into severe
losses due to brokerage. Kotaksecurities is pretty descent(0.05 paise/Rs.100 for Intra-Day and 0.45 paise/Rs.100 for Inter-Day trading).
Second, ask him the Startup charges and monthly/annual rates for a demat account. These days, when you start an online account for trading, brokers provide options to hold a 3-in-1 account(Bank a/c + Demat a/c + Trading a/c). Now for starting a demat a/c, there may be options like Rs.30 per month or Rs.750 per year. Kotak provides the former in one of its plans. Then the startup criterias. A trading account in Kotak requires you to have a minimum of Rs.1000 to start with, the bank account to have a min of Rs.2500. Now after all this, and lots of other formal procedures, you will get a Welcome Kit after two weeks.
Third, and really important, check out the Services the broker provides. Services include daily recommendations by SMS that cover both intra-day and inter-day investments, Call-and-Trade facilities, etc.. While asking you to start an account, he says they provide you good regular recommendations to buy a particular stock, etc. But Kotak really Sucks!!! I have never received a recommendation till now and it sure drives you crazy. They have Call-and-Trade facilities like 20 free Trading calls per month but the service Kotak provides, I am fed up with it.
Ok!! Now having opened an account, the next big step is choosing the right stock. Thats completely in your hands. If you are going for a long-term investment, I would suggest you invest in biggies like Infy and they are sure to give you returns. But if you want to play with the market, and go for Intra-Day trading, thats where you need to very very careful.
Remember, 90% of people have lost huge amounts of money in Intra-Day trading. But I went for it to be in the other 10%, but it ultimately turned the other way. Profits came for me in termed of tens and hundreds, and losses in thousands and thousands. I have stopped trading now to take a break i would say, but I am no way quitting it. Who are those bloody idiots to take away my hard earned money. He who quits fails. I will return to conquer.
So if you have lots of time, and wanna gain lots but with huge risk, go for Intra-Day trading. Else i would say Invest!! Thats my mantra now.
My Tips:
1. Invest only that money which you are ready to spare with. Understand your risk portfolio.
2. Dont buy in one exchange and sell in the other. It can go for a Short-Sell.
3. Never short-sell unless you are sure the stock is moving down. You can go Long any time, but once you short-sell, you have to sqaure-off the same day, and if not, stocks will go for Auctions.
4. Never be in a position to give your stocks for Auctions. Big losses can accrue if your shares go for it.
5. If you have no other option but your shares need to be auctioned, discuss with your broker and try to avoid it by transferring some of your friends/relatives shares to your account.
6. Never go for Options/Derivates/Investing in Commodities unless you are very sure about it.
In spite of all these, I would still say I had a very good experience in the Stock-Market. After all, this is what is ruling the Indian economy now. Whatever be the result, its nice to have experienced that, because every moment in our life triggers our understanding to live better. Happy Investing!!
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