Hi - New Chick on the Block :)

Hi - New member on the forum

Hi,

I am a young software Engineer in Delhi, I am planning to invest in Equities and try and understand the traits of the game. I just understand the basics and have read few threads in this forum on what are stocks, etc. But that is just theory, a practical experience is what is required.

My objectives are :

Start with intra-day trading with a minimal amount of Rs 10,000.
As I might not be very vigilant on the changing indices, it should be relatively safer.
for example i can invest in volitile shares like HUL,Infy,RCOM and see what i earn.
What would be the very first advice one would give for a novice starter like me.

Any help is appreciated.

Thanks,
Anisha

Chick??????????

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Re: Hi - New member on the forum

hi .first go for paper trading if you area beginer .10000 is small amount for trading .if you can be safe go for nifty 20.

Wish I knew of Investing when I started my Software career almost 8 years back in 2002 when Reliance was just 300 and every 3,000 worth of money which I usually end up paying for my Phone bills or bike fuel could get me 10 reliance shares every month... assuming my salary increased as the stock price also increased I am keeping an average value of 8 shares per month till date which makes it 768 shares in total today.. or 1536 shares after bonus shares... which makes a good 15L of savings

Instead I chosen to trade Intraday couple of years back and give away my hard earned money to some pro traders as my tuition fee for years ....

Choose your path... this is your hard earned money and always remember that "every penny saved is a penny earned".. Best of Luck!!!

Aap to bahut sensitive ho gaye vikas bhai

heheh...that thing I always regret

Welcome on board anisha,

Rs. 10000 is little capital to start with atleast in a indecisive market which is in the verge of entering a bear phase. In a bull market tough you could have used it prudently and also could have learnt a lot from live experience, which no teacher or guru can teach you.

Help yourself with some books on trading, know the basics before venturing out to risk real money, paper trade for a while. In a bear market you need to trade on the futures market, you should be willing and be comfortable to short. Bear markets are wonderful opportunities for quick money. Meanwhile it is dangerous too, if you are ill equiped.

There are some beaten down sectors which are showing some strength now like TELECOM and SUGAR, but yet to come out of bear moves. You could have seen the moves of RCOM, IDEA and the likes for the past few days. They have perfoemed well even in a strong bearish days. For example, yesterday we had RCOM registering strong gains while more than 90% of the index stocks lost heavily.

To short a stock you need large capital because of fixed lots in the futures contract and beyond that risks are huge. Whereas trading on a index future will be a little risk averse. There are various ways through which you can set a business of your won or even do a living through the market earnings.

It is said by my teacher that women are far more successful in trading than men these days, there are various reasons for it. There are people in this forum who can give you wonderful ideas and insights which you can cluster and form a good method. It is more of discipline and belief than your buying and selling that makes money in the markets.

Need more inputs pm me.

@Mr Ramesh -
"It is said by my teacher that women are far more successful in trading than men these days, there are various reasons for it"

And why would that be? any specific reasons?

Also, I choose 10k as start money coz
1.)I dont know much about trading.
2.)I do not have huge savings or hefty salaries to experiment.

I beleive I will increase the amount as I would start learning and from all the earnings i will reinvest as well.

@Mr Vikas-
The same sort of stroy i have heard from frnds in software field, many ended up no-profit no loss after doing trading for a couple of years and playing with a couple of lakhs during that time. They all feel instaed if they would have merely invested this 2 lakh that could have fetched them much better returns!!
Is there anyone who has made fortunes out of equity tradings?
What about futures and derivates?

Well thanks anisha, your belief will guide you in your path. There are great people who have made good from trading. Some examples are Jerry parker - chesapeak capital, Ed Seykota who has a house which is surrounded on side by a mountain range, the other side by the seas who has given returns of several 1000 percentage. Bill Dun of Dun Capital, Super fund, bill eckardt to name a few.

All these wonderful traders are trading the world markets using futures and derivative. There are a lot of stories of course of people who have lost it big too. One great example is Jesse Livermore, but there is yet to be a trader born to math his acumen. He is regarded knight of trading hall of fame.

Great effort keep it up.

The reasons you asked about the success stories, I will PM them to you along with some more resources which will be of real use to you in your growth.

Thank you.