Overheard this on Dalal Street:
Indian equity mkts have become a joke . Even chuck gopal is posting in equity mkts thread on PG
Sorry. Didn't know my posts were bringing down the average IQ of this thread. Will not happen.
ChUcK
Sorry. Didn't know my posts were bringing down the average IQ of this thread. Will not happen.
ChUcK
Sorry. Didn't know my posts were bringing down the average IQ of this thread. Will not happen.
ChUcK
I personally will feel happy if all of us will participate in this thread.
And dude you didnot thanked my post instead you did it for andy
Cheers
1. Your portfolio should be diversified as per the sector. Divide your money in some appropriate portion for few sectors.
not necessary, don't diversify for sake of diversifying
, look @ fundamental (i know, it is most inappropriate word to describe stock prices now a days)2. GO for blue chip companies.
please define blue chip
(i have nothing against this word, but there's nothing like blue / red / black chip, in falling market all chips become bricks )What not to do.
1. Never invest your money at once.Really? 2 days back TCS was trading @ 418 all time low, now if as per your calculation if you find that value attractive go for it, there's no point investing only 30% of corpus & hoping that you will invest rest when stock goes down
4. Avoid stocks which are highly dependent on government policies. Export duty, import duty etc etc. To be specific the current market situation is not good for automobile, cementAgree. 100%
5. Initially avoid volatile scripts.Need more explanation, as now a days almost all stocks comes under volatile
And it would be better if you can wait till the market stabilizes till march'09. Or atleast keep a part of you money till that time.not really sure if that's a better strategy
Well would not comment on strategies' debate here as strategies are meant to be different (and secret 😉 )
I may see a fall as doom (say Unitech the other day -51%) others can see as opportunity (its has risen back by almost 60%) since then. So the most suitable word I like to use again and again in stock market discussions is "Depends". :)
@ Gaurav: Dude in addition to sheer merit/utility of post there are many considerations of thanking on PG like connectivity, followers of thread etc. So no point looking on that left side count, thats just for show. 😉 BTW I ahve thanked you for being open. :)
Regards,
ANdy :)
Well would not comment on strategies' debate here as strategies are meant to be different (and secret 😉 )
I may see a fall as doom (say Unitech the other day -51%) others can see as opportunity (its has risen back by almost 60%) since then. So the most suitable word I like to use again and again in stock market discussions is "Depends". :)
@ Gaurav: Dude in addition to sheer merit/utility of post there are many considerations of thanking on PG like connectivity, followers of thread etc. So no point looking on that left side count, thats just for show. 😉 BTW I ahve thanked you for being open. :)
Regards,
ANdy :)
@ andy
I know it is insignificant, but its makes you feel gr8 when the other person finds your post relevant to his/her query. And these figures are the best indicators of it. And thanx for being generous to me.
@xcoolaryan: I have mentioned my strategy. These are not rules that everyone has to follow. If you think that your strategies are better then go ahead with them. As andy mentioned that the strategies are supposed to be secret and they vary from person to person. It also depends on what your attitude is you are bullish or bearish. Some make money by frequent trading and other by short medium long term investments.
But the points I have mentioned are supposed to be told to any newbie investor. There of offcourse no point of debate on this.
But to your questions I will reply.
1. Diversification should be there in your portfolio. Because at any time you can't see all the stocks going up(if it is not a bull run). And same is the case when stocks fall. If your portfolio is not diversified then all you money will sink at once if that particular stock or sector faces problems. This atleast gives you a better chances for a continuous flow of money.
2. Blue chips will remain blue chip whether it is a bull market or bear market. Companies which contribute to main indices such as sensex and Nifty. Also fundamentally strong companies other than main indices stocks are also good for investment.
3. Never invest your money at once is that kind of point which I think should not be even questioned. Well to you point no one is the prognosticator here. So you dont know the rock solid bottom of any stock. if suppose in a worst scenario that stock further falls or the market further falls then you will not even have money to do averaging. And this is not for any particular stock. if suppose as per your calculations you find any stock attractive then ok go ahead with it, but if suddenly due to changes in any policy or because of any thing that sector itself faces problems then you will not even have money to switch to any other sector. All you will have to do is either book losses or wait for the situation to turn in your favour.
4.Agreed that all the stocks in the current market situation have become volatile. But I meant by all weather volatile scripts, momentum based stocks..
I reiterate these are not hardlines. And I know that one has to change his/her strategies according to what the time demands. Now please no more debate on these points.
nice thread guys....can i participte..?
razeish01 Saysnice thread guys....can i participte..?
Dude if offcourse you can participate. We have not cleared any exam for participating in this thread.
er_gaurav211085 SaysAnd it would be better if you can wait till the market stabilizes till march'09. Or atleast keep a part of you money till that time.
Giving all the due respect to your investment strategy, I would beg to differ. In stock markets, it is never wise to wait for any kind of stability if one is a buyer. One has to be ruthless and make quick decisions. I wont go too far. I have a stock on my mind which I had 'almost bought' last Monday. Thanks to my laziness teamed with the festive mood, I thought I would buy it after Diwali. Now, that stock has already shot up by more than 30% within the last 3 trading sessions as the market sentiment has improved!
And, like you talked about averaging, how do you manage doing that, because I invest everything at one go when I see the price to be decent enough. I dont subscribe to this concept because one just would'nt know where the markets would go. We may predict a day or two but when we cant even predict one week, then it is useless keeping money to 'average' and realise later that the market has gone up instead of coming down. So when the probability in favour is just about 50%, it makes no sense to me.
The only point I keep in mind is to stay liquid enough so that I dont have to sell the stock anytime soon.
Guys....
To the beginneeeer investor in the stock market, what is the best place to get the basics right? I know one of the ways is to experiment but in this case, I would prefer understanding before investing. Some ideas as to how I can go for getting things in the right perspective on my own (I don't like the idea of investing on a broker's so called tip....)
Guys....
To the beginneeeer investor in the stock market, what is the best place to get the basics right? I know one of the ways is to experiment
There's this very basic but awesome book by James Pardoe - How Buffet Does it. Get hold of a second hand copy from a local bus stand and it shouldn't cost you more than a hundred bucks. The book wont tell you which scrips to invest in or how but it will tell you the very basic mindset that one should have while investing. That is what you can do to start with and start visiting websites like moneycontrol.com. Read people's comments there taking them with a pinch of salt. And then, have a demat/trading account opened, invest a small amount and start swimming.
Digital_Saint SaysThere's this very basic but awesome book by James Pardoe - How Buffet Does it. Get hold of a second hand copy from a local bus stand and it shouldn't cost you more than a hundred bucks. The book wont tell you which scrips to invest in or how but it will tell you the very basic mindset that one should have while investing. That is what you can do to start with and start visiting websites like moneycontrol.com. Read people's comments there taking them with a pinch of salt. And then, have a demat/trading account opened, invest a small amount and start swimming.
Thanks DS.
Okay, another question. I have done some basic reading and at most places I found the advice to be invest for period of 1-2 years at the minimum.
What about day trading? Is it more/less profitable than long term? And are the rules/fundas different for day trading?
Thanks DS.
Okay, another question. I have done some basic reading and at most places I found the advice to be invest for period of 1-2 years at the minimum.
What about day trading? Is it more/less profitable than long term? And are the rules/fundas different for day trading?
My 2 cents
Day trading is almost like full time profession i.e. you need to be in market to change your positions and be there for a longer time to gain expertise required for this dynamic management. I know a lot of people who (claim to) make killing from this in particular in these choppy (high volatility better more movement in day trading ;)) market conditions but then wouldn't recommend this for any newbie investors as I also know cases where people have lost an years saving in just two hours !! thanks to high leveraged margin trading.
In nut shell you can say that the element of betting is more in case of day trading and this can work both ways but please don't ignore that "can" in bold is a big question here.
ANdy :)
Day trading is almost like full time profession i.e. you need to be in market to change your positions and be there for a longer time to gain expertise required for this dynamic management. In nut shell you can say that the element of betting is more in case of day trading and this can work both ways but please don't ignore that "can" in bold is a big question here.
ANdy :)
But one option is to day trade in stocks with great pasts/portfolios so that if the short run doesn't work, long run will ? What say?
P.S. If as a new investor, I am investing for the long term only at the beginning, how do I understand day trading? Shoudn't I start from now to get more experience or whatever...
P.S.S. Can anyone also guide me on the best portal for trading ?
I have come across the following names :ICICIdirect, Geojit, Sharekhan, Religare and Angel.
I am interested in day trading, will that affect my choice of the portal ???
P.S.S. Can anyone also guide me on the best portal for trading ?
I have come across the following names :ICICIdirect, Geojit, Sharekhan, Religare and Angel.
I am interested in day trading, will that affect my choice of the portal ???
Angel's PDA is better than Religare and Sharekhan's package, AFAIK - dont use ICICIdirect for day trading, the system is horrendously slow, and you'll be able to sell shares only when you get to see them in your pool.
However, just a personal opinion - dont start with day trading, especially futures and options - it is a mechanism designed to take money out from retail and small investors.
All the best !
Federer SaysBut one option is to day trade in stocks with great pasts/portfolios so that if the short run doesn't work, long run will ? What say?
Tennis Ace, am not able to understand how you are going to mix the two strategies, see day trading is a option we usually apply in picking stocks with high volatility, i.e. to see good movements in a day (settlement cycle) say RNLR for instance whereas in long term its advisable to go for defensive/stable stocks something like infy,reliance etc. So if you are talking about taking a position and then converting it to delivery in the event of movement opposite to your calculation
then go ahead try this and please share the result with us too.
P.S. If as a new investor, I am investing for the long term only at the beginning, how do I understand day trading? Shoudn't I start from now to get more experience or whatever...
Yeah if all this is purely for learning experience then good, take out some disposabale income and there you are! ATB 😃 But then don't forget to calculate the cost of time as day trading is going to be quite absorbing, time consuming and tiring....... :neutral:
P.S.S. Can anyone also guide me on the best portal for trading ?
I have come across the following names :ICICIdirect, Geojit, Sharekhan, Religare and Angel.
I am interested in day trading, will that affect my choice of the portal ???
Yeah for day trading different brokers have different margin limits and brokerage I guess you can take a decision based on your targetted turn over and if less (say Regards,
ANdy :)
Back with more queries....
Just wanted to know that I have come across some Technical Analysis stuff on the Euity portal 'traderji.com' . I have done some basic reading on stocks (Understanding stocks by Michael Sincere and NCFM beginners module), Do I need to any more basics or can I go for the Tech. Analysis.......
P.S. @andy
Stocks like ICICI and HDFC also show high volatility and are also safe options for long terms... What do you think?
Back with more queries....
Just wanted to know that I have come across some Technical Analysis stuff on the Euity portal 'traderji.com' . I have done some basic reading on stocks (Understanding stocks by Michael Sincere and NCFM beginners module), Do I need to any more basics or can I go for the Tech. Analysis.......
P.S. @andy
Stocks like ICICI and HDFC also show high volatility and are also safe options for long terms... What do you think?
hi federer,
i believe that's enough for a beginners start...
BTW you must read the intelligent investor by Benjamin Graham for more concepts... :)
Stocks like ICICI and HDFC are volatile in this bearish market because of the financial crunch...
they are the premium blue chip stocks in the indian stock market...so if your time horizon of investment is long (say 2-3 years) then you can reap good returns...
hey guys,i ve just joined pagalguy...this seems to be a great thread....i work for a software firm and m really keen to start trading in equities....but finding it a bit difficult to start...as in which stocks to start with...how to gauge the performance of any given company....and how to build a balanced portfolio....can anyone help me out wid this....as in how should i start !m not really keen on satta(day trading)...and more inclined towards SIP(in stocks)...thanks in advance.....
chinmay_klkr Sayshey guys,i ve just joined pagalguy...this seems to be a great thread....i work for a software firm and m really keen to start trading in equities....but finding it a bit difficult to start...as in which stocks to start with...how to gauge the performance of any given company....and how to build a balanced portfolio....can anyone help me out wid this....as in how should i start !m not really keen on satta(day trading)...and more inclined towards SIP(in stocks)...thanks in advance.....
Hi Chinmay,
I have also just started and have been doing some reading to understand the things. The first book I read was 'understanding Stocks' by Michael Sincere. Found it good, simple and informative. Has a section on Fundamental analyis and Technical analysis as well to get you started.
chinmay_klkr Sayshey guys,i ve just joined pagalguy...this seems to be a great thread....i work for a software firm and m really keen to start trading in equities....but finding it a bit difficult to start...as in which stocks to start with...how to gauge the performance of any given company....and how to build a balanced portfolio....can anyone help me out wid this....as in how should i start !m not really keen on satta(day trading)...and more inclined towards SIP(in stocks)...thanks in advance.....
Hi Chinmay,
I have also just started and have been doing some reading to understand the things. The first book I read was 'understanding Stocks' by Michael Sincere. Found it good, simple and informative. Has a section on Fundamental analyis and Technical analysis as well to get you started.
Guys, good work but remember Cricket is learnt on ground and not by reading manuals even if written by Gavaskar,Akram or Warne
So yes going to bourses without adequate knowledge is harmful but then who stops you from creating virtual portfolios and having fun.;)There are many portals offering such services for Indian markets, and moreover when you are new its hard to differentiate between the joy of making real money or seeing your portfolio multyplying (but its doubtful if someone ever had cried on virtual loss)
ANdy :)