Is Systematic invest (SIP) good or bad

Hi All,

There is always certain questions which will be not clear how often you read it. But the same can be experienced when it is done in practice.

My question is Is Systematic Investment is good or bad.

I will take my example only I had 500 shares of GMR Infra at Rs.152.50. Now it is in the range of somewhere in between Rs.70-80. Kindly note I had planned it is keep for Long term somewhere around 3-5 years.

If I had not invest the same capital on a whole, i think i would have been made the investment bit by bit, thereby my buying price would be much lesser.

Because of the above investment, I do not the capital to invest right now.

Please suggest the required precautions because that will help me in future investments.

I have one more question also.
Is intraday trading on the above 500 shares is good move. If yes than what will be some short comings which will be faced in the long run.

Please suggest a good remedy.

Regards,
BALMAL

Yes, and No. Not just when you buy shares, but at what price difference you buy make a difference.

Three to five years, then keep sipping in , you'll get good prices. but wait for a big correction before buying.

had you purchased in SIP way, then you'd have had around 90-120 average price. still way to go. Better way of sip is to Wait for a market crash (when prices fell 30-50 percent, and wait till prices stop falling, and buy you sip).

As an investor, you should see the future business prospects, as realty is a requirement in any nations growth, it is a good investment for longer term, soon after world goes of slowdown/recession, real estate, infrastruction, power, etc. demand will grow.

Whenever prices peak out, (prices stop rising further after 2-3 days of rally), then sell 50% of your shares. wait for a market correction (as we are in a bear rally), and buy them back at lower prices say 10-20% lower than the prices you've sold.

Doing intraday would be like a hit or miss opportunity. if you sell on a rally-day, then you'd miss the remaining profits. Either you prey on someone or you get preyed on

Options is a way to earn money, buy options when the market is overbought or oversold. when u become advanced with basics, try shorting options, straddles.

Thanks for the detailed reply.

Since you have suggested to trade in options, Can you please give me the links about options trading because iam Nil in that subject.

Kindly provide the links within the Traderji forum.

THANKS ONCE AGAIN FOR THE KIND REPLY.

Regards,
BALMAL

see the options section http://www.traderji.com/options/

In any investment or trading timing is the key. While many will tell you it is the most difficult the fact is that only those who strive to do it make money in the market. Hence 90% lose. SIP is for those who cannot time the market or who feel that the bull run will start after a decline. The fact is in a bear market it is akin to catching a falling knife each time. So learn to save your money by learning timing techniques. Try to understand the direction. Only then take a call on investment.