Beginner investing - suggest broker and advice for me

#1
Hi TJ's
I am a software employee joined in an MNC last month dec-09 i earn 3lk pa i.e, 21k pm and after all the expenses i am left with 17k-18k and as my interest in shares and basic knowledge about stock markets i am planning to invest in it.

My planning goes on as follows
i want to start by investing small amount 1000 pm and continue to do that for 6 months, after understanding the things to an extent i would like to increase the amount to be invested.I am not interested in day trading only looking for long term gains.But would sell if the gains are good.I am expecting a profit of around 20-30%.
The portfolio i'm planning is like this
As an example-15 shares of GVK infra,10 shares of India bulls,5 of Cipla,5 of Andhra bank ...like that i want to grow my portfolio every month and diversify into various sectors having good fundamentals.

The suggestions i want are
1.What brokerage firm is useful for small investors like me?( I have my salary acc in hdfc and they opened demat + trading acc(3 in 1) also but i heard it's not so beneficial)
2.I am still confused over the capital gains tax(short n long),STT,n othe taxes and how to calc them precisely:confused:
3.How many min shares can i buy?i heard that we can buy even a single share but the info on brokerage firms about Rs20/lot confuses me.What is lot?Does it mean do i have to buy 20 shares?
4.My office timings are 9am-5pm so its difficult for me to trade in office as i can't install software there. is there any option to call broker or SMS him reg buying and selling of my shares?Are there any charges for it?which firm has this option?

Plz reply as this information is going to be useful for fellow software employees like me n my friends.
 

netman

Active Member
#2
you can easly earn 20% returns, but make sure you buy good shares and always follow a stop loss. don't wait for your money to reach 1/5 of value, in case of sudden fall, you can exit and then re-enter on lower level.

I am a big FAN of Indiabulls and their PIB software, but still i see their shares are not doing well, better select Giants like Reliance, JSPL, ACC etc.

1). I am happy with Indiabulls, they are transparent, have tried one other, it was a nightmare and helped me becoming more devoted to indiabulls.

Also the benefit of their account is you don't need to pay annual demat account charges, so you save approx Rs.450 every year.

2). STT would be charged when you do the trade, you only need to pay taxes once you start earning money.

3). you can buy 1 share too, there's no limit on this, until you are trading on LOTS.
lots can be understood as a BULK BUY in a large number as specified by exchange.
you will not pay any LOT charges if you are buying 1, 2 or more shares for delivery.

4). most trading firms would allow you to call from your registered phone number and place a order.
 
#3
Thanks netman for replying:thumb:

There is a doubt reg stop loss as u have raised the point.
Lets say XYZ co share price is 100 and later it inc to 125 now does stop loss have to be less than original buying price i.e, 100 or can i limit as 120 as the share price is now 125.
Does all the firms provide with this option of stop loss and profit booking do they charge for these things?

I heard that if we give a call for a co share for a particular price ( not the current market price and if we leave it like that we have to pay some amount .Is that true can u explain me the put/call terminologies? )

If someone have any excel sheet explaining the example of a sample share price with all the taxes deducted and brokerage charges too it would be really helpful.
 
#4
Yes, you can put a stoploss at any price. If you bought a share at Rs 100 and then the price climbed to Rs 125 and you expect the price to climb further but at the point want to ensure that you don't loose all of your profit all of a sudden you can put the stoploss at a price higher than your buying price. As far as I know, no brokerage firm charges you for placing a stoploss order.
 
Last edited:
#5
Thanks vmanocha that excel was really helpful:thumb:
I wanted to ask few more doubts that as i've explained above i can't be able to trade during market hours ,does all firms support pre-market orders and do they charge for it?:confused:
 
#6
I am currently using IndiaInfoline trading services (5paisa) and I do intraday trading most of the time. I haven't tried placing offline orders on IndiaInfoline, but I know for sure that ICICI Direct provides that facility. They are called offline orders and any order placed after (or before) the trading begins is called accepted as a offline order and submitted to the exchange for execution once the exchange opens.

ICICI direct however charge "exhorbitant" brokerage charges so I quit trading on ICICI Direct and have been using IndiaInfoline for past 6 months or so. Their customer support isn't the best.. but then they are offering me the lowest brokerage that I can get.
 

rajputz

Well-Known Member
#7
Hi TJ's
I am a software employee joined in an MNC last month dec-09 i earn 3lk pa i.e, 21k pm and after all the expenses i am left with 17k-18k and as my interest in shares and basic knowledge about stock markets i am planning to invest in it.

My planning goes on as follows
i want to start by investing small amount 1000 pm and continue to do that for 6 months, after understanding the things to an extent i would like to increase the amount to be invested.I am not interested in day trading only looking for long term gains.But would sell if the gains are good.I am expecting a profit of around 20-30%.
The portfolio i'm planning is like this
As an example-15 shares of GVK infra,10 shares of India bulls,5 of Cipla,5 of Andhra bank ...like that i want to grow my portfolio every month and diversify into various sectors having good fundamentals.

The suggestions i want are
1.What brokerage firm is useful for small investors like me?( I have my salary acc in hdfc and they opened demat + trading acc(3 in 1) also but i heard it's not so beneficial)
2.I am still confused over the capital gains tax(short n long),STT,n othe taxes and how to calc them precisely:confused:
3.How many min shares can i buy?i heard that we can buy even a single share but the info on brokerage firms about Rs20/lot confuses me.What is lot?Does it mean do i have to buy 20 shares?
4.My office timings are 9am-5pm so its difficult for me to trade in office as i can't install software there. is there any option to call broker or SMS him reg buying and selling of my shares?Are there any charges for it?which firm has this option?

Plz reply as this information is going to be useful for fellow software employees like me n my friends.
1. go for cheapest brokerage like indiainfoline, ventura etc. (needs icici bank account).

2. for calculating the stampduty and charges the best way that when you call the customer care of some brokerage, then ask the executive about "HIDDEN CHARGES EXCLUDING COMPANIES BROKERAGE IN DETAILS". if the executive is good in buisness he will explain you all. i am reffering to customaer care executive rather then some post on forum for the reason that you will get your doubts cleared when some person will tell you the process...human interaction is best for understanding brokerage and hidden charges....if you wish to understand it urself then follow the link: -
http://www.traderji.com/beginners-guide/36983-charges-other-than-brokerage-stock-exchange-transactions.html

3. with the total amount you are thinking abt trading is good. you should not put large amount immidiately. I myself started trading with 1 Lac. So my personal view is different in this matter. if you are trading with 10-20000 rs. then better is that you do paper trading in share market for month or two and try to learn about OPTIONS. you will get alot more information on technical analysis, strategies and methods in Intraday and options and futures etc. once you learnt them, apply them on paper trade (and be honest abt ur entry and exit). i am reffering to learning and then trading in options because options have high return on low capital...but increased risk...so learn Technical analysis.....paper trade...build confidence...

4. on the other hand if you dont want to go for options then you can go for normal intraday or swing trading....position trading of all the trading time frames, learning Technical analysis is must.

5. if you are busy in office timing then it is better that you develop your skill as a swing trader or a position trader.

all the above information you are looking for is available on the traderji forum. try searching it.....you will get allot....HAPPY TRADING
 

netman

Active Member
#8
Thanks vmanocha that excel was really helpful:thumb:
I wanted to ask few more doubts that as i've explained above i can't be able to trade during market hours ,does all firms support pre-market orders and do they charge for it?:confused:
sorry i wasn't active on forum due to some work, however your query is answered already.

you can place orders on phone, why do you wish to place offline orders and remain in confusion all day long.

I use indiabulls very effectively and if i have an open position i just call them to place an exit order/s on phone.
what i love about indiabulls is
1). you get a RM who is a local guy and can be contacted for any issues, or orders you wish to place, no frustrating IVRS system to reach help.
2). their software is outstanding.
3). they have security key enabled trading, which will mostly prevent un-authorized trading to happen in your account.
4). no hidden charges.

there may be more firms, but i am done with anymore hunting for a cheaper option cause at the price iam paying iam getting outstanding services.
:clap:
 

Similar threads