INVESTMENT IDEAS
There may be more than 5000 listed companies in the stock exchange, but one must pickup good scrips which are from fundamentally strong background. Invest only a maximum of 30% in share market out of our own savings. Never over trade on any single session, keep buying in different stages at small to medium quantities like 10s or 20s instead of 1000 or 2000, however good the share may be. Last but not the least, we should be careful with stocks which are available at very low rates.
Some of the good stocks may be out of reach to you, if the price is very high. Try to invest whatever you can afford to hold for some time like 3 or 4 months. Never borrow funds to invest in stock market, as the interest for the borrowed money may eat up all the profits of share transaction, if you have to wait for market to recover after a correction.
Timing of buying the share is also an important aspect that an investor must know. One must be careful and exercise caution during results announcement period, even if the results are good and better than the previous term, if the results are not upto the expected levels then also shares may fall. So keep an eye on the market talks about the results.
You need to invest a lot of time and efforts, you must do some home work on selecting the good scrips, like going through the company's balance sheet and latest results and other announcements. Depending totally on stocktips provided by us alone is not advisable.
Some of the good stocks may be out of reach to you, if the price is very high. Try to invest whatever you can afford to hold for some time like 3 or 4 months. Never borrow funds to invest in stock market, as the interest for the borrowed money may eat up all the profits of share transaction, if you have to wait for market to recover after a correction.
Timing of buying the share is also an important aspect that an investor must know. One must be careful and exercise caution during results announcement period, even if the results are good and better than the previous term, if the results are not upto the expected levels then also shares may fall. So keep an eye on the market talks about the results.
You need to invest a lot of time and efforts, you must do some home work on selecting the good scrips, like going through the company's balance sheet and latest results and other announcements. Depending totally on stocktips provided by us alone is not advisable.
Opinions may be taken from various sources, but the decision of investing must be on your own. If one can not afford to spend more time, then Mutual Funds investment is the better way to be in the Market.
It is better to sell a stock and exit, if you feel that the entire sector is fundamentally hit and the stock is currently overpriced in comparison to its fair value
Finally, you also need to keep yourself updated with global developments. Today, you may observe that Stocks crash in Asian Markets gets reflected in other stock exchanges also.
CAUTION :
While placing the orders through online, ensure that you type the correct values and quantity. Though the trading system doesn't allow the orders which are placed beyond the trading range of the particular scrip for that particular day, it may execute the order, if the value is meeting the market demand. As an example, if a scrip is trading at Rs.500 and the previous closing price is Rs.500 and you are confident that the scrip will hit the 20% upper circuit limit within few hours and would like to place a sell order for Rs.600, but instead of typing Rs.600, you typed Rs.400, the sell order will immediately get executed at Rs.500. This has happened as the stock has the range from Rs.400 to Rs.600, and the price range of the scrip is + or - 20% circuit limit and previous day closing is Rs.500. Different stocks have different circuit breaking levels like 5%, 10%, 20%. But, if you had typed Rs.300, the system would have rejected the sell order as it would be out of range.
Unless your profit is very high, you should be careful about placing market orders. Sometimes, there could be a delay in data transmission from the broker's site to the exchange site, the market order may get executed with a delay, which may not be in favor to you.
RPL, REL, RCOM, L&T, Power Grid, NTPC, NLC, SBI stocks will do well in the long term you can but them at the current levels. The stocks are given for you to observe and plan. You must understand that, you are the best judge when it comes to investing in shares, as only you will be knowing your financial position. The best practice is not to put all the eggs in a single basket, distribute your investments across various stocks, same time having too many shares to be tracked is also difficult, so you must decide what is your comfort level.
General DON'Ts
General DON'Ts
Do not sign blank Delivery Instruction Slips (DIS) to save time.
Do not trade on any product or stock without undersatnding the risk and rewards associated with it.
Do not deal based on market rumors or Bull/Bear run of commodity markets sentiments.
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