Investing in Stock - discussions?

Hi shanthi,

thanks.I am a short term trader and i also do day trading in select stocks.

Good to know. how do you find the present volatility as a short term and speculator.

hi,

It is interesting to trade in volatile markets.I did not loose money so far.I think experience and proper understanding is necessary to trade the markets.

krithika,


Thats good to know that you have been on the green throughout. Yes definitely understanding of how the market is working , and when to enter and exit, and falling prey to greed is the most important factor.

hi shanthi,

Did you see the markets today.I think nifty will touch 4200 if it goes like this.

the BSE Sensex closed at 15,798 (up 441 points) while the NSE Nifty closed at 4,746 (up 122 points).

The whole of the last few months has been volatile to the extent of saying the markets had their mood swings. sensex gained 1000 point in a few days/weeks and then we were thinking that it was a bubble, and market is due for correction also.

Now the market has shed 5000 points we feel we are takne for ride and the market is undervalued.
As a long time investor, I am not giving too much into the index. I am more interested in the business.

Warren Buffet says “I've never really been able to predict the stock market. When things get very cheap, I know it. When they get very high, I know it. And in between, I really don't know much about what's going to happen.But they go to extremes every now and then, and when they do go to extremes you have to be prepared to act.”

And as of now, I am convinced my the scrips that I hold, so have stopped looking at the sensex.I am interested only in the Balance sheets, P&L an d the dividends...


Again this is my . Each person has an strategy of doing things.

Dear Friends


I am a home maker...just thought of investing in stocks to make some money so I could multiply my savings.

For now, I would like to invest a small amount around 10k. Can you suggest good scrips for short term profit ( say 3 months ) so I could watch the market a bit and then get into it full swing.

Else I would like you to share with me as to what details I should watch to invest and any specific programs on the TV ( NDTV Profit )

Thanks in advance
Poornima.

t is interesting to trade in volatile markets.I did not loose money so far.I think experience and proper understanding is necessary to trade the markets

Any tips and tricks for beginners?

Dear Shravantika and poorni,

Welcome to Stock trading.As you both are beginners, i will give you some suggestions.

1.Please do not expect huge profits or be greedy.Always go by the fundamentals.
Fundamentally good stocks will never let you down.
Some stocks may perform well because of some news.Please do not go for those stocks for want of more profits because once the news funda is over , the stock will go down like anything.Only a matured trader can trade in those stocks.

2.First invest only little amount.It should be your extra money.

3.For one month do paper trading.I will give you some suggestions on that.

First select 10 stocks.(fundementally very good stocks) one each from diff sectors.for eg

1.tech---- eg. infosys, satyam,niit tech
2.capital goods- eg bhel,abb,
3.cement eg ACC, Gujarat ambuja cem, shree cem, india cements
4.infrastructure eg L&T,DLF, gmr inf, HCC,Nagarjuna const.
5.Power eg Rel power, Tata power, power grid
6.Textiles eg Alok industries, arvind mills,bombay rayons
7.oil eg Reliance, ONGC, BPCL,IOC, reliance petroleum,Reliance natural resources
8.telecom eg Relcomm,Bharthi,idea cellular,tatatele
9.banks eg SBI,yes bank,hdfc,icici,bank of baroda,ubi,axis bank...
10.Auto eg Tata motors, mahindra,Ashok leyland,bharat forge....

NOw you select 10 or 20 stocks and know the business fully(growth,profitability,earnings per share, profit earning ratio).
Now write the stocks in a paper and write the Market price as on the date.
Now watch the movement of the stocks daily and for 1 month write the high price,low price and also note down th 52week high and low.
STudy all the news related to those stocks(You can browse Moneycontrol.com for the news and views of technical experts).

THere are two channels CNBC TV 18 and NDTV profit.Watch the channels for 1 month.You will see the views of experts.

Now after 1 month, you will be thorough in those 10 or 20 stocks and also you will know when to buy and when to sell.

Some fundamentally good stocks would have been beaten down for some reasons(for eg,infosys was at its 52 week low(around 1300rs) due to recession in us and rupee movement but now it is 1870),so when it's price comes down, you can buy that stock for investment.So there will limited downside and you will get very good profits in the long term.

Please do not be over greedy. Have patience and believe the markets.You will get good results when you invest with strict discipline.

Happy investing.

Dear Kamala,

I am glad you gave us an excellent reply. I've noted down the scrips and shall do as you said.

Getting down with pen and paper!!

Thanks a lot and shall let you know where I put my money!

Cheers
Poornima