Help needed in setting up my trading account

[aj4567]

Zerodha is very good for Intraday traders and reasonably high volume traders. Unless they also have a product tailormade for low volume folks, you will be in wrong place.

If that is your investment strategy, you will have to be very very careful with scrip selection. Buy & Hold (as your strategy is normally referred to) is not as good as it was few decades back. Even very reliable Gold is slipping off that pedestal and emerging as speculator's paradise. Hardly

Virtually any trading account will do, what you need to focus on is Depository charges. DP is where your purchased scrips get held. Although legally permissible, it is impractical (cost wise) to keep DP separate from Trading.
Charges for transferring to-and-from are very high.

Look for Broker who will give you DP at zero cost or bare minimal. Negotiate on that. Best low frill setup I have seen in India is that of Sharekhan although brokerage for Intraday does get expensive

Yea, agree with your view on buy and hold stratergy mate...
Im not looking for great profits for first 2 yrs.. Im looking for somewhere around 20% and intra day wont be possible as ill be very busy at work for the next 1 yr.. Maybe i might hold for something like 9 months..

Oh, i dont know much about DP charges... I learnt from zerodhra that DP charges would be 9rs on the sell side per company per trade and rs.400 as AMC. What other charges would be there usually. I also considered Sharekhan, but felt their brokerages were quite high for the long run. In Zerodha, the max brokerage would be only rs.20..
Pls let me know whicjh i can choose sharekhan/zerodha

 

[Mr.G]

I don't have a buy and hold strategy that's dumb, I'll give you a tip based on experience, ask a trader how much return he makes, he will say 7-8% per day. Ask him his leverage adjusted return then will make faces like a dumb founded chimp. MOST traders use f n o and trade with insanely high amount of margin, specially intra day, over that they pay 30% in taxes and over that spend more money on an audit by ca. Investing for long term and use the market in the way it was intended to be used.

 

[jagankris]

Hi,

I am looking to setup my first demat and trading account. After much research, I have finally zeroed in on setting Zerodha as my trading account because of the low brokerage and very good reviews.

I'm planning to do long term investments, meaning, I will buy stocks in small amounts for the next 5 years and retain them for about 15-20 years and use that as my retirement benefit. Intraday might happen in very small amounts, say about 10 transactions/year.

Also, I do not need those charting and other stuff.

Will Zerodha serve my purpose or some other brokerage house help.

I have a bank account with HDFC. Will it better to opt for demat+trading account from Zerodha or Demat account from HDFC and Trading account alone form Zerodha.
Also, Zerodha charges Rs.9/transaction for transfering funds from bank account to trading account. Is it safe to hold lot of money in the trading account and is there any way to avoid this charge

Iniya Tamizh Nanbarey,

Mudhalil ennodoa vazhthukkal traderjila join panniyadhukku.

My opinion about loooooooooong term investments - pls reconsider.
Risk only 20% of your free money in the markets.
Invest in land than markets.
Prefer commodities for investments than stock markets - Gold,Silver,Copper etc.
It has intrinsic value and and hence will not go beyond 50% of your investment and more over you can average there.
You have clearly mentioned - I don't need charts and other stuffs then how will you select stocks.
Whether we like it or not markets follow the TA and hence learning chart reading is a must.
I Believe silver,gold are reasonably cheap so you can buy a small portion and wait of further downfall for buying more.

 

[aj4567]

I don't have a buy and hold strategy that's dumb, I'll give you a tip based on experience, ask a trader how much return he makes, he will say 7-8% per day. Ask him his leverage adjusted return then will make faces like a dumb founded chimp. MOST traders use f n o and trade with insanely high amount of margin, specially intra day, over that they pay 30% in taxes and over that spend more money on an audit by ca. Investing for long term and use the market in the way it was intended to be used.

Mr. G, agree with u regarding learning Fundamental and technical analysis... I have downloaded few videos and I'm already doing that....

couldnt understand with your above post on what your trying to say... so do u recomend identifying companies that will grow and then holding their stocks for lond term say (10 yrs+), or do u recommend investing in short term(less than 1year), where ill also have to pay taxes

 

[aj4567]

Iniya Tamizh Nanbarey,

Mudhalil ennodoa vazhthukkal traderjila join panniyadhukku.

My opinion about loooooooooong term investments - pls reconsider.
Risk only 20% of your free money in the markets.
Invest in land than markets.
Prefer commodities for investments than stock markets - Gold,Silver,Copper etc.
It has intrinsic value and and hence will not go beyond 50% of your investment and more over you can average there.
You have clearly mentioned - I don't need charts and other stuffs then how will you select stocks.
Whether we like it or not markets follow the TA and hence learning chart reading is a must.
I Believe silver,gold are reasonably cheap so you can buy a small portion and wait of further downfall for buying more.

nadrii thalaiva,

Land is not on the cards right now as in Chennai it is too expensive and also if u dont have any one looking after the property, shorty some very powerful people are using some fake papers to sell the land themselves..

yep, agree... I definitely will need to learn charting ...
So from your experience, what would be the time frame for learning charting, fundamental analysis and Techanical Analysis.. Im a compete newbie but a quick learner

 

[Mr.G]

If it were that easy then everyone would be a millionaire and no one would be searching for the holy grail of trading. I cannot summarize it in one comment. I don't like trading because, 1) you use leverage and money that is not your, 2)I don't like staring at a screen all day when I could be doing something better, 3) I don't want to pay such high taxes. I use the market as a store for my wealth not as a primary source of income. I get double the FD return, I get increasing dividends and I don't pay a rupee on tax. The market makes my money for me, unlike trading. Both of them will make you rich many times over. Analysis is just as good as the person doing it.