Intro - Ravi

#1
Hi Friendsji,
Kaise ho aap sab log?

I am very fine and am happy to find a community like Traderji.
I am working as Accounts Assistant in one govt organisation in Chennai.
My main reason of joining traderji is to start Trading (intraday, hold and sell shares and stocks) and also buy mutual funds to save tax and gain interest.

Inspite of being in Accounts I am not aware of investment and finance and I also very well know that Accounts job (my work) is different from the Finance world. But still since i am in a similar kind of job, i hope that I will be able to grasp the terminology and be able to do trading and buy MF with guidance from you members :D.

So here is my query direct to the point which would help members understand me better.

1) Advice to buy MF to save Tax on Rs.40-50K approx i.e Rs.4-5K (10% slab). I want guidance to buy MF worth Rs.50000/- to save tax and earn interest.

2) Advice on Trading to just earn little money and understand the markets, i am not a greedy person nor a person influenced by blind advices. I have done my little home work regarding Trading but could not get a person who can explain to me in person, one colleague used to do Trading but he explained me about intraday, hold sell, commodities trading , future trading, also some trading wherein you can stake, i.e till now i thought that we can buy shares as per our bank balance but he told that credit trading also we can do, ie if our bank balance is 10000 only still we can buy shares worth 50000/- and the loss / profit on sale will be deducted / added to our bank account .

Also l he told that bank demat accounts have more brokerage and other private traders ( sharekhan, kodak, nivea etc) have less brokerage. His friend works in nivea and he metioned if i want i can arrange for it, but before jumping wanted to analyze everything and get your advice.

Also my Budget is 50K - 1 lakh to start buying shares.

Hence i need suggestions for:
Opening Demat account - BEst bank or agency
How to start Trading:
Intraday
Hold - Sell (after period of 2days to months)
Comodities Trading ( I am not aware of this much)

Also if any book is available in market which can help newbies understand trading recommend me so that I can buy and read it or if any internet source is there.

Hope to receive positive advice from you.

Thanks in advance and have a nice day. ;)
 
#2
Also forgot to include one point, i found a companys stock is in both BSE & NSE,, which one do i buy the BSE one or NSE one, I have read that NSE ones are the most frequenty bought and reliable stocks. Can anyone explain to me the diff between BSE and NSE apart from the fact that one is hosted by bombay stock exchange and another by national stock exchange and contains major govt cos.
 
#3
Welcome to the forum.

A few points from my side

1) Regarding the brokerage account, try comparing different brokerages and fees they apply to decide the best for you.
2) I prefer to trade on NSE due to good volumes on the large cap stocks.
3) Margin trading is risky. I would advise you not to do it. Leverage works both ways, you get good profit or a big loss.
4) Formulate a basic opinion on the country, company, and the future. Based on this try to look for stocks in this sector. Watch these stocks behavior historically and a few days/weeks/months. You will gain some insight.
5) Read books on stock markets and understand how they work. This will help you a lot. Some of the great books about trading / investing would be "The Reminiscences of a stock operator" and "The Intelligent investor".

Hope this helps.

Shepherd
 
#4
THanks Mr.Shepherd

After my initial research on this site and other sites I have yesterday ordered some books
from flipkart :

Guide To Indian Stock Market
(Paperback)

Master the Stock Market (Paperback)

From the Rat Race to Financial
Freedom (Paperback)

The Intelligent Investor (Paperback)

Yes your mentioned book the intelligent investor was also recommended by friends and other members, waiting for my books to arrive so that I can start reading and understanding the stock market and take the bull by the horns ;)
 
#5
THanks Mr.Shepherd

understanding the stock market and take the bull by the horns ;)
Going by the legendary trader Jessi Livermore quotes (paraphrased) There is no bull side or bear side to the market, there is only one side and that is the right side.

Good luck and my best wishes

Shepherd
 

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