Starting From Scrath - My Dairy And Experience

Starting From Scratch - My Dairy,Experience & Problems

Hello all

I always wanted to enter the shining share market niche but now the wish is becoming more like a aim.In this thread i will list all my experience in this world and also share problems,queries ..I am having some doubts ..

1) I have already got myself a PAN card.Also i do have the passport.
We dont have many brokers and firms here..

I searched a lot in the forum and found many brokers but unfortunately all of them dont have office here except for

1.Axis 3 in one : Demat+Trading Account+Bank Account.. I know geojit is in collaboration with axis for demat and trading
2.Geojit: Demat+Trading Account

I am new to this share world.Reading whatever i can in traderji board
So i need a good Trading Platform where i can learn and if possible make profits

So which among the 2 is the best for new investor who has no trading experience before.

2) And i am planning of funding the trading account for a start sum of 10,000.Would it be wise to do so ..?

3) And is there any platform where i can simulate the share trading process so that i can learn before actually doing it ..

4) My Dad has invested in some shares and Mutual funds .. he has just the demat account but no trading account.What are the disadvantages if one doesnt have a trading account and just demat account ..?

5) I talked with geojit CC and he told me that gold platform is web based trading platform with just 3-5 sec delay in showing real time data ..I have read in threads here that its not good for intra day trading ...will this small 3-5 delay cause huge impact ...?

6) This may be a dumb question but i have been reading abt trading analysis,using softwares like amibroker and many members technique but i am little confused ..
How come we can predict what will be the share's next price with all these ..?
I am thinking the share price varies randomly due to factors like politics,media coverage etc ...isn't it so ..?
My strategy is like this
Purchase some share like at say 40rs/ share sell it if it reach say 45rs/ share .. also sell it if it reach lower than say 35rs/ share other wise wait... is it a dumb strategy ..?

I would be really grateful if i can get experts view and answers ..

Re: Starting From Scratch - My Dairy,Experience & Problems

Unless you have no choice, do not go with a BANK. Get an demat and trading account with someone whose primary business in broking.

I am assuming you will trade/invest online. In that case, always try to get exe trading platform(desktop based) rather than an web-based (browser based)

I have no experience with Geojit, but you may look up the 'brokers' forum here for a review.

Always have the demat and trading account at the same place. Do have go demat account in axis and trading account in geojit.
Even 5000 will do, considering that you are a first-timer. Let yourself know that the stock market is not always shiny. Scale-up your amount only when you are comfortable.

http://money.rediff.com
There is another one on www.moneycontrol.com
(PS: This is called paper-trading)

He cannot buy or sell shares. DEMAT account is like bank account where you keep your shares. Though, he may transfer shares between DP clients, but its inconvenient and not recommended for trading.

Whether trading intraday or investing, always try to get the best you can for that money. Whether the delay will have huge or small impact depends upon situation. Rather than web-based, go for exe (desktop based). It updated the quotes faster, order entry is also faster.


learn technical analysis.
Its is better not to talk about this at this point. The share-market is a very big game and there are lots of off-market strategies taking place. It will become complicated for you to absorb all this at the moment.

You can paper-trade on the above mentioned sites and see if it is suitable.

Additionally, you can use www.icharts.in/charts.html for obtaining charts of stocks. Regarding how to use the charts, you will have to first learn technical analysis.

And to start of with your TA, here you go.. You cant find anything better than this thread.. Teach a Man to Fish By Saint This thread has tons and tons of information and knowledge for the beginners.

All the best for your journey!!

Re: Starting From Scratch - My Dairy,Experience & Problems

Thanks for the reply bunny and thanks for the link bloodmoney
Yes even i am planning to for geojit. But i have heard that the brokerage charges can be bargained in many firms ... Is it true ..?
But he brought shares with just demat account .. but brought the share with face value price ..those which involves filling the form and is fixed price .. So one can buy shares with face or fixed value by having just demat account and cannot buy it at the market price ..is it right ..?
BTW whats DP ..?

Thanks bloodmoney...
The thread is huge ... will take a couple of days to read them all :clap:

Re: Starting From Scratch - My Dairy,Experience & Problems

Welcome to the world of trading. Superman.. (or I shd say superyoungman). Bunny has beautifully answered your questions.. Let me add my views here as well..Feel free to raise doubts/questions here.. Better will be to spend time and do some reading so that You yourself can clear most of your doubts.

In today's time u don't have to depend on the borker who is in Hassan. You can contact Blore branch of any broker (say sharekhan /indiabulls) and they will be able to send u papers to sign.. etc.. and get your acct open.
Once acct is open, u don't have to see their face again cause everythign can be done online or thru phone..

As you are just opening the acct, you may not have good bargain power to negotiate brokerage but still can give a try.

I think, Your dad has bought the shares in Initial Public offering.. In those forms, u just need to give ur DMAT acct number.. and on allocation shares gets deposited there.
But when u are talking about active trading, then you need 3 things
1) Bank acct = to hold yr cash
2) DMAT acct = to hold yr shares
3) Trading platform to place buy sell orders..

And all 3 needs to be linked.. so that transfers/ settlement is done without manual intervention from you.

DP = depository participant ... = the company which holds you DMAT acct..
You can compare it to BANK = DP, your bank acct with BANK = DMAT acct with yr DP.

Happy Trading

Re: Starting From Scratch - My Dairy,Experience & Problems

Thanks for the reply AW10
wow .. it would be cool to do that ... i did inquired SBI demat and they told me to go to demat enabled branches in Bangalore ..so i presumed that there should be a branch in hassan for any firm
I will now enquire whether sharekhan or any other gud firms can send the papers
Now i understood completely why trading account is required

Re: Starting From Scratch - My Dairy,Experience & Problems

Yes, you can bargain brokerage, provided that you have enough turnover or volumes. Many brokers have an 'prepaid' plan where you deposit certain amount in advance towards brokerage and in return you get lower brokerage.

Fox ex: I am trading with Sharekhan. The class account costs 10 paise(per 100 rupees) for intraday and 30 paise for delivery. However, I have paid Rs. 2000/- in advance and availaed 7 paise brokerage for both intraday and delivery.

Also, with many brokers, brokerage is charged only on buy or sell side(but not both buy and sell) for intraday trading.

These shares must have been obtained from primary market(better know as IPO).

PS: You can also get a brokerage of 2 paise, provided that you are willing to deposit a huge amount as prepaid brokerage, something around 1.6 lacs I guess.

Ok

Today i went to geojit
There is a promo going on for 25000 intital deposit and you get demat + trading free and AMC for first year also free .. i am gonna avail this is think

He asked me for attested xerox copy of bank passbook and also 2 CANCELLED CHEQUE LEAF

Is it safe in providing the 2 CANCELLED CHEQUE LEAF ..?