What to do with these stocks?

3dsmaxed · #31 6th March 2008, 01:37 PM

Quote:

Originally Posted by SavantGarde

3dsmaxed,

1) In Terms Of Choosing A Brokerage You Will Need To Do Some Work On It & As A Suggestion I Can Only Suggest What Brokerage You Should Get
MAybe u can give me some good companies and then i can research and decide what to go for?

2) For Cash Market (For Buying & Selling Of Shares)
Ideal For Not A Very High Volume Investor or Trader Should Be 0.30% For Delivery & 0.03% Charged Only On One Side Of The Trade For Intraday Squareup (Meaning You Have Bought & Sold The Same Quantity Of Company 'A' On The Same Day). That means .3% of the total traded amount while buying and selling?i dont want to get into intraday right now as its very risky and u need time for that which i dont have with my office schedule.

3) For F&O (Futures & Options) (Meaning Derivatives Segment Of The Market) whats future options? whats derivative segment of the market?
Ideal Brokerage Would Be 0.03% For Delivery & The Same For Intraday Squareup Charged Only On One Side Of The Trade)

4) 4 or 5 Parts Implied Equal Parts (Meaning If You Wanted To Buy 100 Shares Of A Company - 4 Parts Would Mean 25 Shares To Be Bought At A Time or 5 Parts Would Mean 20 Shares At A Time.

5) Each Subsequent Purchase Would Be Lower Than The Previous Purchase (You Will Need To Exercise Your Judgement Here, It Could Be 5%, 8%, 10% Lower From Your Previous Purchase) this means that happens during the same day as the markets change per second It Is Quite Possible That Out Of Your Target Quantity Of 100 Shares You Have Managed 50 Shares & The Price Starts Moving Upwards, Normal Tendency Would be To Purchase In The Uptrend. u mean if not a beginner one should still buy if the graph is moving up?Refrain From Doing So As A Beginner.

6) If Your First Part 25 Shares Was Bought @Rs.100 & You Have Decided To Buy The 2nd Part 10% Below, It Would Mean You Would Buy The 2nd Part Of 25 Shares @Rs.90....3rd Part @ 81 So On So Forth.

7) For Selling, Let's For Example Assume You Have Managed To Get Your Targeted Qty Of 100 Shares & Your 1st Part Was Bought At 100 Then You Would Sell 5 Shares (5% of 100) If The Price Reached 110 Which Is 10% Above Your Initial Entry....Later On Depending On The Movement Of Price You Could Even Sell 7% or 8% For Every Increase Of 10%
is int very lengthy job selling 100 shares with such method. Is it the way to go. I mean selling 5- 10 shares everytime .

8) It Is 366th Day (1 Year + 1 Day) As Per IncomeTax Rule Governing The Securities Your Profit Is TaxFree For Long Term Capital Gains Tax For Securities.hahah i am sorry> i dont know wht came to my mind and i thought an year is 355 days :-) sorry bout that

9) If Your Investment Was Rs.1.0 Lakh & You Sell On or After 366th Day Your Shares For Rs.1.5 Lakh Which Means Net Profit Of Rs.50K You Would Not Be Required To Pay Any IncomeTax On The Profit. but still i will have to pay 30 percent on 1 lakh if i fall in tht bracket that means i eventually saved 20K and not 50K

10) Your Staggered Selling At Every 10% Rise Would Entirely Depend The Day & Date Of The Trade (Refer To Point 8 Above)

Hope I Have Managed To Clear Your Queries

Happy & Safe Investing

SavantGarde

yes i am still learning. thanks for ur responses

Are u available on any chat ID?

SavantGarde · #32 6th March 2008, 01:41 PM

Quote:

Originally Posted by 3dsmaxed

yes i am still learning. thanks for ur responses

Are u available on any chat ID?

'nomadous' on *****

SavantGarde

Y A H O O

3dsmaxed · #33 6th March 2008, 02:07 PM

thanks savant

Also partibhan
sir are you available on chat i possible

parthiban_subramanian · #34 7th March 2008, 10:08 AM

Quote:

Originally Posted by 3dsmaxed

Thanks sir for the info
Actually i am new to this business and to be frank got a little greedy when told about the experiences of share market by friends..so i got into it when reliance power IPO was to be launched.
i have a few questions in mind if u can answer please

1.) How to fix a target price in mind when buying a share and when buying a share how to do research on that. Because i used to read rediff money for this by using their charts and for eg kajaria ceramics was at 29.0 something when i saw it on rediff and it was shown as a hot stock. so i bought 1000 shares of it and in 5 days it came down to 26.5. I got panicked( which i think u r not supposed to do) and sold them at 26.5.so how to see what is a good stock , and what is the good price to buy it. and more importantly when to sell it.

2.) everyone here is saying equity is for long term. Also this months MONEY today issue explained very well that equities are for long term so what does long term mean? 6 months, 12 months or more. How to deide that?

3.) If i am earning 60000 a month how much should i invest in stocks in terms of long term investment

4.) what is the best option to do trading? i am using icici direct right now but its i minute behind the actual market price so its rare that i get the rpice of shares what i opted for

5.) is there any way to fix that thru ICICI direct? or should i go in for a better method to buy and sell shares

have few more questions in mind but will wait for these answers to ome :-)

Thanks Sir for your helpful suggestions. i am learning new things from you guys.

I highly appreciate the Mr.Savantgrade for some good things that he has told here. Let me tell you one very basic psychological thing in Trading as you are new to investing

--- Keep Trading as always as a part-time one and dont get fully involved
in it. This is becoz You will loose concentration in your primary Job for
sure. And eventually , it will ahve adverse effects in normal life

---Please dont do margin-trading or day-trading. It is eventually harmful
for new investors. Also it is very much stressful job. (Please always
remember that your health is more important than money)

--- If you have bought a stock , and if it goes low , dont get
panic-stricken and loose your sleep.It will eventually come up if you
go for 6 month term or long term.

--- Also in the same way, if you sold some stock and the price of the
stock goes up , people feel more for it and ponder over it again and
again. But whoever in trading for a substantial time knows that it is
part and parcel of it.

--- If you want to take a decision of buying a stock and dont know what
to buy , dont just go by wht the experts say. In weekend , when you
have free time , just analyse who are the week top gainers and losers
and analyse the same for a particular month. You will know the stocks
that are undervalued by those anlysis in comparision with the
fundamentals like EPS , PE ratio etc.. never buy the stock by
speculation in the first 1 year of ur trading

jayechan994 · #35 7th March 2008, 04:06 PM

You are really a gem of a person.....Savant Garde,
I have never read so explainatory & simple words after Saint (With due respect to all senior members).
Beginners like me should treat it VIMP & follow.

Regards,

Jay

Quote:

Originally Posted by SavantGarde

3dsmaxed,

1) In Terms Of Choosing A Brokerage You Will Need To Do Some Work On It & As A Suggestion I Can Only Suggest What Brokerage You Should Get

2) For Cash Market (For Buying & Selling Of Shares)
Ideal For Not A Very High Volume Investor or Trader Should Be 0.30% For Delivery & 0.03% Charged Only On One Side Of The Trade For Intraday Squareup (Meaning You Have Bought & Sold The Same Quantity Of Company 'A' On The Same Day)

3) For F&O (Futures & Options) (Meaning Derivatives Segment Of The Market)
Ideal Brokerage Would Be 0.03% For Delivery & The Same For Intraday Squareup Charged Only On One Side Of The Trade)

4) 4 or 5 Parts Implied Equal Parts (Meaning If You Wanted To Buy 100 Shares Of A Company - 4 Parts Would Mean 25 Shares To Be Bought At A Time or 5 Parts Would Mean 20 Shares At A Time.

5) Each Subsequent Purchase Would Be Lower Than The Previous Purchase (You Will Need To Exercise Your Judgement Here, It Could Be 5%, 8%, 10% Lower From Your Previous Purchase) It Is Quite Possible That Out Of Your Target Quantity Of 100 Shares You Have Managed 50 Shares & The Price Starts Moving Upwards, Normal Tendency Would be To Purchase In The Uptrend. Refrain From Doing So As A Beginner.

6) If Your First Part 25 Shares Was Bought @Rs.100 & You Have Decided To Buy The 2nd Part 10% Below, It Would Mean You Would Buy The 2nd Part Of 25 Shares @Rs.90....3rd Part @ 81 So On So Forth.

7) For Selling, Let's For Example Assume You Have Managed To Get Your Targeted Qty Of 100 Shares & Your 1st Part Was Bought At 100 Then You Would Sell 5 Shares (5% of 100) If The Price Reached 110 Which Is 10% Above Your Initial Entry....Later On Depending On The Movement Of Price You Could Even Sell 7% or 8% For Every Increase Of 10%

8) It Is 366th Day (1 Year + 1 Day) As Per IncomeTax Rule Governing The Securities Your Profit Is TaxFree For Long Term Capital Gains Tax For Securities.

9) If Your Investment Was Rs.1.0 Lakh & You Sell On or After 366th Day Your Shares For Rs.1.5 Lakh Which Means Net Profit Of Rs.50K You Would Not Be Required To Pay Any IncomeTax On The Profit.

10) Your Staggered Selling At Every 10% Rise Would Entirely Depend The Day & Date Of The Trade (Refer To Point 8 Above)

Hope I Have Managed To Clear Your Queries

Happy & Safe Investing

SavantGarde