Beginners, Newcomer -Ask me your queries

Hello friends,

I find that a lot of discussion happening in these forums are very advanced. I think there will be lot of you who are not into so much high end technical analysis.

I would like to take up the queries from all people who have basic queries about share market, nse, bse, demat accounts, brokers, mutual funds, fundamental analysis, technical analysis extra.

I have received lot of help from other experienced investors from the internet. So I think I should do at least a little bit from my side.

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Edited Message added on April 28th: Hello friends. Sorry about this, but I will be traveling and getting into some new initiatives. So will not be able to respond to the queries posted here from now on. It was a pleasure to interact with you guys over these months.

hello blitz,
I am not sure if this is right question here. my problem is i have physical certificate share. How to sell it, can you tell?

i have demat account

NSE and BSE do not generally allow trading in physical share certificates (some limited trading is allowed). So it is best that you convert your shares to demat format.

You need to contact your DP i.e. demat account provider for this. Then perform the following steps. This process is called as Dematerialization. This process takes up to 30 days.

a) Fill dematerialization request form (DRF)
b) Deface the share certificate(s) that you want to dematerialize, by writing Surrendered for Dematerialization across it.
c) Submit the DRF form & defaced share certificates to DP.
d) The DP would forward them to the issuer or RTA.
e) After dematerialization, these dematerialized shares will be credited to your Demat account.

Hello, I am new to this forum. It is good that experienced investors are helping the new people. I want to invest in gold.

How to do that? What is best, gold coins or gold ETF

One should never buy physical gold from bank or ornaments for INVESTMENT purpose. You can buy it if you like the pleasure of owning gold.

To invest in gold always use ETF.

Here are the important reasons

1. Banks sell gold coins at a premium of 15 percent over the gold rate at that time. This premium is taken for giving the guaranty of purity.

But they will not buy it back, because they do not want to pay you that 15 percent premium. So you are forced to sell it elsewhere and lose the premium amount.

So if you buy gold worth 11500 from a bank. The next day if you sell it to some other source you will get only 10000 rupees.
2. In case of Gold ETF, if you hold it for more than 1 year it is considered as a long term capital. Any profit you get from selling it will be taxed at 20 percent. But in case of gold bar or coin, you need to hold it for 3 years for it to be considered as a long term asset. If you sell it before that time then you have to pay a income tax at 30 percent on the profit.
3. But the tax problem does not end here. After 3 years you need to pay a wealth tax on gold bar or coin at the rate of 1 percent every year which is not needed in case of gold ETF.
4. Finally, gold can get stolen. Bank locker or insurance can cost you a tidy sum.

So in short if you invest in gold then invest in gold ETF not in gold coin or bar.

One more point here is that gold is a good asset for times of crisis.

In good times it is better to invest in share market. You will get far more returns from it. 2008 and 2009 were good years for Gold.

For 2010, share market will be much better.

Tracking trade transactions and performance

Thanks for helping us noobs

I am looking for a method to track my trading history and performance. I use Indiainfoline's TTAdv tool for trading and get daily email reports on my trades from them.

Till now I have experimented with manually recording transaction in either excel or Google/Yahoo finance but it is too cumbersome. Is there a way of automatically importing IIFL's transaction reports into excel? I could then perhaps export to google finance.

Otherwise, how do the amateurs/pros generally keep a tabular record of all their trades?

Thanks again, any gyaan on these lines would be helpful!

Re: Tracking trade transactions and performance

Hello Jalvi,

Are you a very heavy trader? I mean how many transactions can a person make in a day? Personally I cant think of more than 3 transactions per day on an average. So it will take about 2 minutes to enter it in Google/Yahoo finance. A little boring task but really is it that big a inconvenience.

Sorry as I do not use IIFL terminal, I am not aware if one can download an excel from it and upload it to yahoo/google finance. But then again it will also take 1 minute. So you will save 1 minute per day .

Personally I am using a paid charting software, which has the facility to enter and track my portfolio. But even I manually enter the transactions into my charting software.

If you are making a very large number of transaction per day, then maybe you should think whether it is really earning you profits. I myself have found that atleast half of the year the market is really indecisive. One doesn't gain anything from trading all the time. Rather one should enter when one sees a really profitable oppurtunity. Its good to not have too diversified a portfolio. I hold a maximum of 10 different scrips and put 10 percent of my capital in each. Too many small investments, make it complicated and dilute the profit to small amounts.

But of course, if you are successful in your method then carry on . Finally it is all about making money... to each his own methods .

Thanks for the prompt reply.

An average day would have 5-6 roundtrips i.e. 10-12 trades. With some 5 fields for each trade, I am looking at 50+ fields per day. Its a little cumbersome and error-prone compared to automated methods.

I will continue doing this until I find something better.

Hi blitz,
I am new to here, can u tell me how to enter in to market and chossing sectors and all