Hi - New Chick on the Block :)

[findvikas]

"Women can be focused, less distracted when trading and able to control their emotions far better than any greedy men"*

* Conditions apply

I got a plan for you, invest every month the equal amount that you are willing to loose and put it in these 7 stocks... I consider them as 7 gems. Divide the money in equal proportion or the way I mentioned.

Reliance - 15%
SBI - 15%
Infosys - 15%
Hindustan Unilever - 15%
DLF - 15%
Tata Motors - 15%
Gold Bees - 10%

Do this for 1 year... make it a habit to invest the very same day every month.. don't look at the price and just BUY it. After an year you should have some good amount of money as your saving.

Lets assume 1L - enough to buy/sell 3-4 lots of Nifty Futures/Options. While you continue this path, gain some education on trading & future & options segment.

Remember only big money can generate small profits with consistency and small money cannot generate big profits with consistency. Once you have big money like 1L you can very well generate 5K worth profit every month with consistency. Which can take away your liability of adding 10K every month by half and in another 1 year you may not need to add any penny to your folio but generate income from your folio itself.

I personally cannot do this because this require a lot of patience but I know this is the only sure shot plan that can guarantee you income with consistency.


Disclaimer: Do not go blindly by my words because words are mine but money is yours.

 

[d_s_ramesh]

If you want to be a investor small amount is good and you can add up little by little. If you want to be a trader, with Rs. 30K you can trade MiniNifty futures contracts. The advantage trading futures contracts is you can do both long and short trades.

You need to have a system of approach, a simple moving average crossover system followed and traded with discipline has the potential to generate up to 40% returns on an average per year. In a robust year it can give triple digit returns, 2009-10 has given 150% on the crossover system.

But you should know of the technicals for it, read some books of authors like Dr. Alexander Elder, Van K. Tharp, Mike Douglas, Micheal Covel.

One sure read book is 'Reminiscence of a stock operator by Edwin le'fevre'. This book is about the legendary trader Jesse Livermore.

 

[Capricorn]

Or then u could learn tukka trading from PT.

SERIOUSLY...

 

[praveen taneja]

Or then u could learn tukka trading from PT.

SERIOUSLY...

:rofl::rofl::rofl:
Chick ke naam par sab mahanubhav darshan dene aa rahe hain
Beware of swine flu men

 

[anisha83]

Okie,

Let me start with investing in Futures, I just know the theory about Futures, no idea how in real it works.
If I start by 30k, where do I put them? And what I have to do? Do I have to trade them just like equity?
The important factor here is even if someday I am not able to trade, I should not suffer heavy losses due to ignorance.

On the other hand, If I start investing 10k per month in some good shares like SBI,HDFC,Infy,TCs, etc.. and continue doing them for an year until i have good amount, then i can trade?

Little confused

Also please explain what are these "system of approach, a simple moving average crossover system"

 

[AW10]

Hi Anisha, welcome to the forum and to the fascinating and confusing world of investing and trading.

There has been lot's of suggestions already flowing in here.. but I will suggest you to take a step back, figure out all the doubts/questions and then decide what to do with your money.

as you are new in this field, plz stay away from Futures. First get your basics right and then decide what /where/how about way-forward.

Market is not going anywhere.. and it gives us enough opportunity everyday, so no need to hurry. Come back to market with clear plan of action that SUITS YOUR REQUIREMENTS.

There are all kind of people in market trading 1min chart and booking profit or loss in 5 mins, to others who never close their trade and just enjoy paper profit or paper loss.. So you have to decide what are your requirements..

In my view, at this best investment for you is in "to gain knowledge", it is not stock, future, mutual funds or anything else. Invest your money and/or time and gain the knowledge first..(beware, there are many people who will try to sell something which is crap, hence u have to be smart enough in finding out whether you are going to right source or not).

All the best and Happy Trading/Investing..

 

[d_s_ramesh]

A trading plan based on few technical analysis indicators is the systematic approach. Trade long and short on the Mini Nifty futures contracts with a strict stop loss for every trade and hold the position till there is a reversal. Simple moving average crossover, is one of the various methods of trading.

If you want a buy and hold kind of approach, forget it, the present market situation does not have any stock in that criteria. You should be prepared to loose some of your capital if you buy stocks now. The whole market on the broad time-frame is bearish. You buy a stock in the bearish market, there are all the likeliness to end in a losing trade.

Buy and hold approach needs to wait for some long time till the market shows some signals of bullishness on the broad level.

Your message shows clear confusion, get some technical knowledge, buy a technical analysis software, learn the nitty gritty of the markets, indicators etc., Work out a trading model on which ever time-frame you feel comfortable. Back test the model with sufficient data, get accustomed with the system psychologically and then trade with real money.

Whatever said and done, paper trading gives only little knowledge, but gets the basics while expertise comes only with real money trading.

All of your posts clearly shows that you need to learn a lot, a sincere advice is to learn before you pledge your savings. One more important note, losses are a part of any trading system, it is the expenses of this business. Threat any activity you do in a professional way, give the necessary attention with your heart and soul, you will be a success in any enterprise.

Need more inputs, please PM me as this tread has already started spitting venom. You would have understood it better from the early posts here.

 

[anisha83]

The thing is I am trying to read ,know the basics and get a headstart for more than 6 months now!
I just could not figure out the startegy to invest/trade!
After a while i felt Buy and Hold strategy would be safe thing to do, but the stocks are never growing, except SBI (from ones i have seen)
So I am not sure about Buy and Hold.
Futures I have got very little knowledge.
So last option that remained was start intraday with small amount and learn the game only by experience, as I am starting with less amount i am hedginf some risk.
Meanwhile, where should I open my demat account? I am planning to call Sharekhan tommo to get started.Any advice on that?

And also thanks to everyone for replying, but i dont think taking a step back would help.
Also can you suggest few of the strategic plans in Futures I should give a try. And let me know the dos and donts, including the worst case scenerio.

 

[d_s_ramesh]

Any well known broker is good, have both your demat and trading account with the same broker that helps a lot. Check with all the top brokers, settle with who ever have lesser fees, because fees is one of the big expense in this business.

Your determination is great, come to excellence and show that you can. You need to have some backing if you are planning intraday and futures, some one in the know how of the markets. None can do it alone, everyone here will have some who will be guiding them either aware or unaware.

A good start is a task half accomplished.

If we truly commit to our dream, there exists beyond ourselves and our conscious will a powerful force that helps us along the way and nurtures our growth and transformation. Our journey is guided by invisible hands with infinitely greater accuracy than is possible through our unaided conscious will.

Know what you are doing,
Believe in what you are doing and
Love what you are doing.

You cannot but be successful

If you are determined that you trade futures and intraday, use a hourly time frame. Please.... please do some study before you commit your capital, later there should not be a regret and that should not end up in losing your dream. If it is stocks there are possibilities of some stocks coming in to bullishness on the intraday, you need to trade only long no shorting possible on the stocks in cash market.

 

[findvikas]

:rofl::rofl:
Chick ke naam par sab mahanubhav darshan dene aa rahe hain
Beware of swine flu men

aannchuuuuuu... sniff sniff... come brother shake hand with me...