Newbie: Long term investment tips!

spades · #1 15th August 2008, 12:00 AM

Hi all traders,
Will start trading by couple of weeks,Jus applied for my pan card.I will be new to this.
Kindly advised me wit some good long term stocks that i can pick,Or how to choose?
Or should a portfolio be made of 50% long term stocks and 50% short term stocks?

spades · #2 15th August 2008, 12:09 AM

Is buffet way the best way to earn money or daily trading?

yasirdxb · #3 15th August 2008, 10:58 AM

Quote:

Originally Posted by spades

Is buffet way the best way to earn money or daily trading?

Spades,

It all depends on you. There are thousands of strategies to make money in this maket. but you should adopt a strategy that suits you well.

Find a trading system that you like.one you feel comfortable.one you understand.be it technical or fundamental or both.stick with it. be consistent.

I am also a newbie in this markt. however I have been trading Fx and commodities for a long time. one thing I know for sure is THE SHORTER THE TIME FRAME YOU TRADE, THE SMARTER YOU SHOULD BE TO SURVIVE. so my advise to you is to start with long term investments.

Yasir.

spades · #4 15th August 2008, 04:13 PM

Thanks Yasir,
You mentioned u are trading in FX and commodities, My friends tell me if u wana trade in FX u must have a heart of stone to do that...
I was planning equities..... which one do u suggest?

josekiran · #5 15th August 2008, 04:28 PM

Best Wishes,

You are on the right track.

I am also tring to do the same. But finding it really difficult to get the data to screen comapnies and narrow down for further analysis.

If you have any luck with pl. share.

I am trying to build a data base myself.

Lets hope for the best

Kiran

yasirdxb · #6 15th August 2008, 06:20 PM

Quote:

Originally Posted by spades

Thanks Yasir,
You mentioned u are trading in FX and commodities, My friends tell me if u wana trade in FX u must have a heart of stone to do that...
I was planning equities..... which one do u suggest?

Well....Decipline is one thing you need to trade all markets. I think the margin available in fx market is somewhat harmful for a newbie. In stock markets we gets margin around 10:1. even thats for intraday trading. you should close the position the same day. but not in fx. the leverage available in fx are way too high.most brokers offer 200:1 leverage(That means you can buy 10000 units of Eur/usd with a mere 50$) and you may hold the position as along as you wish,if your account is okay.

Leverage is a good help if you have a sound strategy and good money management tools.but 95% of the newbies misuse it and take positions too big for them. other than that its like any other market. actually its the biggest market in the world. the major participants in this market are banks like Citi,Goldman,JP Morgan. there is 24 hours trading.transaction costs are much lower than equities.Fx is very liquid. since its 24 hour market,there is seldom any gap openings.thechnical system works well in Forex.

There is only four or five major currencies in the world. so just like you analyze the companies in stock market,you can analyze the countries and their economy.

The best thing is that most of the brokers offer demo trading for new traders without any cost.if you want to try out the fx market,drop me a message and I'll point you to a good one. watch and learn. demo trade an account until you become confident...And go for the kill

Yasir.

vasa1 · #7 15th August 2008, 08:33 PM

I have been in the Indian financial market since 1997 and this is my heartfelt advice:

First, lousy returns or not, have a majority of your savings in debt instruments such as pure income mutual funds, and PPF.

The money you allocate to equity should be regarded as a gamble and you should be prepared to accept massive, sudden losses which will be notional unless you book your losses.

Even in equity, if you are salaried, first build up a bulk of equity by systematic investment in a diversified mutual fund or an index fund which you will not touch for years.

Only then start playing (actual gambling) by buying equity shares with your own 3-in-1 account.

Never borrow to invest in shares.

While futures and options look attractive, you really need to be well-grounded in the subject and have the time to devote. Don't be swayed by the success stories you hear and read. People conveniently suppress their losses and remember their gains.

yasirdxb · #8 15th August 2008, 10:33 PM

Quote:

Originally Posted by vasa1

I have been in the Indian financial market since 1997 and this is my heartfelt advice:

First, lousy returns or not, have a majority of your savings in debt instruments such as pure income mutual funds, and PPF.

The money you allocate to equity should be regarded as a gamble and you should be prepared to accept massive, sudden losses which will be notional unless you book your losses.

Even in equity, if you are salaried, first build up a bulk of equity by systematic investment in a diversified mutual fund or an index fund which you will not touch for years.

Only then start playing (actual gambling) by buying equity shares with your own 3-in-1 account.

Never borrow to invest in shares.

While futures and options look attractive, you really need to be well-grounded in the subject and have the time to devote. Don't be swayed by the success stories you hear and read. People conveniently suppress their losses and remember their gains.

Vasa1,

I dont think stock market trading is gambling.if you know the difference
between stock gambling and stock speculation, the biggest of ever stock market carsh wont broke you.

Of course if your aim is stock market investing,there are many channels including mutual funds.

Yasir.

ARMHM · #9 15th August 2008, 10:44 PM

Quote:

Originally Posted by yasirdxb

Well....Decipline is one thing you need to trade all markets. I think the margin available in fx market is somewhat harmful for a newbie. In stock markets we gets margin around 10:1. even thats for intraday trading. you should close the position the same day. but not in fx. the leverage available in fx are way too high.most brokers offer 200:1 leverage(That means you can buy 10000 units of Eur/usd with a mere 50$) and you may hold the position as along as you wish,if your account is okay.

Leverage is a good help if you have a sound strategy and good money management tools.but 95% of the newbies misuse it and take positions too big for them. other than that its like any other market. actually its the biggest market in the world. the major participants in this market are banks like Citi,Goldman,JP Morgan. there is 24 hours trading.transaction costs are much lower than equities.Fx is very liquid. since its 24 hour market,there is seldom any gap openings.thechnical system works well in Forex.

There is only four or five major currencies in the world. so just like you analyze the companies in stock market,you can analyze the countries and their economy.

The best thing is that most of the brokers offer demo trading for new traders without any cost.if you want to try out the fx market,drop me a message and I'll point you to a good one. watch and learn. demo trade an account until you become confident...And go for the kill

Yasir.

From your ID it seems you are based in Dubai. I am in KSA. Here we (expats or other individual) are barred for trading in commodities or forex. We can not transfer fund to brokers who are intermediaries for commodities or forex. Lucky you are.

vasa1 · #10 16th August 2008, 07:57 AM

Quote:

Originally Posted by yasirdxb

....if you know the difference
between stock gambling and stock speculation, the biggest of ever stock market carsh wont broke you....
Yasir.

On a lighter note, I know that I don't know the difference between the two

!

View Poll Results: Do u pick up Long term or Short term stocks ??
Long term	7	63.64%
Short term	4	36.36%
Voters: 11. You may not vote on this poll

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