Beginner queries...

[MGROVER]

i want to know how can i recover my lost physical shares?

 

[tvrssvk]

What is the difference between convergence and divergence in MACD?

 

[tvrssvk]

Which chart is advisable for swing trading? whether to view daily chart or weekly chart of a particular stock.

 

[shekhars]

Hello,
I am a network engineer with Central Govt having NO knowledge ragarding mutual funds. I would like have suggestion from you people whether its fine to invest in SBI MSFU - Contra Fund SIP with Rs. 1000 or 2000 per month or should i go with SBI Magnum Taxgain Scheme 1993 with the same amount. Also explain how to operate these accounts.


I am also willing to open a demat account with SBBJ, is this right time to think of trading??? please suggest which sector have maximum return???

 

[rvm123]

Dear Mr MGROVER,

u can inform the details of the lost securities, like name of the owner, folio no, no. shares, their distincive no., etc to the secretarial department of the concerned company. normally, they will put an advertisement in newspaper and charge some amount from you and then issue fresh certificate.

 

[Shreenath]

Hello there,
Wouldn't she be able to write off those losses and pay less taxes on her earnings for the next filing year? NOt sure how much Indian govt allows but there must be some amount she can write off and take a deduction on the amount of tax she will owe assuming she earns through a job or another business.

Priyanvada,
Make sure you document all expenses and keep receipts related to your trading...
Thanks
Shreenath

NICE THREADS NICES QUESTIONS AND I WONDER NO ANSWER.
OK I CAN GIVE FEW.
1. YEARLY DELIVERY TRADERS QUALIFY AS LONG TERM INVESTERS AND THEREFORE LONG TERM CAPITAL GAIN TAX APPLIES
2.LESS THAN YEAR TRADERS COMES UNDER SPECULATION TAX . THEREFORE FLAT 30% TAX IS APPLICABLE.

ABOVE ARE ONLY FOR EQUITY TRADING NOT FOR FUTURE & OPTION TRADERS.
FUTURE AND OPTION IS CONSIDERED AS BUSINESS SO NORMAL BUSINESS TAX IS APPLICABLE.

3.SINCE YOU HAVE MET LOSS THEREFORE NO TAX IS APPLICABLE. TAX IS APPLICABLE ONLY ON PROFITS. ALSO YOU CAN CARRY OVER LOSS FOR 4 YEARS.

Q7: - If one invests in some company for whole year and one takes same amount of share delivery a month before profit distribution then they both get same profit since both are holders??

YES

Q8: - Can I take the advantage of sensex or nifty index going up and down for day trading? Right now I make profit from stock prices going up and down? Is there any way to do same for index going up and down? this might be a silly question but still question is a question

YES . THROUGH EXCHANGE TRADED FUND OR DO INDEX FUTURES LIKE NIFTY, MINIFTY

Q9: NO SINGLE SITE IS THERE YOU HAVE SEE LOT OF FORUMS AND POSTS. AT TRADERJI ITSELF THERE ARE MANY THREADS.

Q10. YES YOU CAN TRADE IN OTHER STOCK EXCHANGE. ONCE AGAIN YOU HAVE RESEARCH TO FIND WHICH IS BEST FOR TRADING OTHER STOCK EXCHANGE

 

[stockproindia]

Q10: - Can I trade/day trade equities in other stock exchanges but sitting in India? If yes which broker will provide such service in India?

yes u can ...go to reliance money webpage...

 

[stockproindia]

Q8: - Can I take the advantage of sensex or nifty index going up and down for day trading? Right now I make profit from stock prices going up and down? Is there any way to do same for index going up and down? this might be a silly question but still question is a question

for beginners



Trading Guidelines

We believe that to be successful in stock trading you would require following certain strict guidelines, rules and regulations. Sticking to these will certainly be rewarding in the long run after all it is the discipline that can help you make huge profits. Hence spend some time to understand these guidelines before you enter the share market. We recommend you to strictly follow these guidelines while trading in stock market.

*

Stock market is not a place for gamblers. Always trade with patience. Dont overtrade. Buy and Sell Based on Knowledge, Not Emotion.
* Trade with stocks that are in news and have a good near term or long-term prospect.

* Trade with stocks with high liquidity means high volume of trade.

* It is wise to trade with one particular stock at a time. Suppose if we have given tips for GVKPIL, HEROHONDA. Buy the one stock, which suits you and trade with it.

* Short/long term/near term traders dont need to trade everyday.






* Always trade with half of the money you have invested. Keep the other half intact to buy again incase the stock dips.

* Always place stoploss orders in the system not in your mind in order to minimize loss.

* Keep stoploss relative to your target price.

e.g. if you have bought 100 shares of X at a price of RS. 100/- with a stoploss of RS. 90/- (10% stoploss) and a target price of RS. 120 /-. Once the stock reaches to a particular price say 108 change stoploss to 97.

* Book profit 50% quantity at first target and change stoploss to near recommended price for remaining quantity, Remaining 50% you can take decision depending on momentum of stock, place first target order in advance, some times prices may touch and go very quickly.

* If you are well informed about the market economics then you can make profits even if market is not that promising .

* Don't panic even if you've suffered losses as they can turn into profits in long run. Seek and follow advice from your consultant.

* Go with the morning calls.

* The best time to trade is morning (9:55 AM-11:00 AM) and evening (2:30PM-3: 30PM).

 

[madhusar]

Q6: - When company distributes their profits to share holders? What is the time period?

Well, I think there is no correct answer to this question. Companies distribute profits to their shareholders either once in a year (annual dividend) or twice in a year (interim dividend plus an annual dividend). There are cases where special dividend has been paid out - Infosys paid out a special dividend on the 25th anniversary. Note that companies can also decide not to distribute any dividend, if they have not done well in a particular year.
Companies in the capital market, in addition to rewarding shareholders through dividends, also do so through capital appreciation, bonus shares and rights issue at favourable prices.

 

[madhusar]

As pointed out, the brokerage is a % of the trade value. Hence the brokerage amount will vary depending on the trade value. May be, in addition, your broker has a tiered brokerage structure.
What I mean is, in the case of icicidirect the brokerage is 0.75% for all trades less than 5 lakhs. It is slightly less in the case of higher value trades and at a very large trade value (crores) one may get a very reduced brokerage. These tiers and rates can vary from broker to broker. Also some of them offer reduced brokerage rates as your yearly trade volume keeps increasing.