help me with this money

Hello everyone, I'm from a middle class family and an engineering student and right from my childhood, I have gathered around 20,000rs in my piggie bank. I came through this site while googling the keyword "investments". I have heard a lot of people earning money through day trading and also know the procedure for day trading to some extent. I want to earn some money as part time from home, is it good doing a day trading with this money? I also went through SBI cap securities, do they provide terminal software to trade from home? plz help me with ur valuable suggestions thank you

Before you entering to this risky business ,learn some basics and do home work well.

Welcome Vipul,
At first 20K is not enough for intraday trading. Moreover it is your life savings and it will have lots of emotions attached to it. Better not risk that sweet money on this demoness. Markets are maniac depressive for the ignorant, it will suck not only money, even blood from under privileged innocent traders.

Learn to outsmart this demoness and you will be ruling her at times, I stress at times because it is a real fight out there, some times you win and some times the market. You need to have positioned in such a way that, though you win for a lesser time, you have to be happy by making more than you loose.

There are a lot of learning needed before you venture into the markets. Please help yourself with some books, work examples. Take advice, test and then venture with real cash.

Get in touch if you need any more inputs.

Thank you
D S Ramesh

HI ,

Welcome here. Though iam new to this forum and off course new to market also ( just have four years experience ) and as said my Mr.Ramesh kindly don’t use your sweat money here now with out learning the rules.

on the other hand this is a right place to make money provide we are humble to accept some facts so far I have learned
1) what ever ideas and ways / technique we found are almost employed in the market and a new technique is virtually impossible for us to find with the given knowledge and exposure . so be sure , if at all you come across a technique the same has been applied by millions here .

2) Learn to wait for entry in to the market. you may very well see signals for entry. You may notice news even in the non financial channels/TV / paper highlighting about the crash in the market . it may be very visible and every stock may beg for investors to buy. that may be a point to enter. I think this happening once in every two years. and exactly opposite situation you will find to sell. this also seems to be happening every two years. So , it possible to multiple your 20000 rs in every 3 to 4 years ( minimum )
On cumulative basis, this will give your 50 lacks in 30 years .

Regards
Sadiq.

Sadiq bhai,
Wonderful, 4 years of experience speaks volumes worth 40 years. It shows your passion, that is most important.

One small correction, it is not a fixed cycle of rotation, this time it was a 2 year one while most of the time it is 4 years and will coincide with change of governments. This happens world wide, but sometimes has exceptions to prolong or shorten.

If you are in sync with the markets, the trades just pop out and ask you to trade. You have given fantastic thoughts for a beginner to start with. Thanks.

hello vipul this week my closest relative ask me how much money i make after month 2. i cant understand why people ask that type of question. in whole world its only in that business. i said to him you done MBA for that you gave four years of life . lot of money. you get pain sorrows that only you knows. why you think otherwise in trading . know i ask you ? doing engineering for that , you gave years of life . lot of money. you get pain sorrows that only you knows. friend be a ''STUDENT'' like u already done as in engineering. introduced yourself as a student of market not businessman or enterpenour . As a student as a learner 20000 rs is more than enough. use that money for learning not for quick profiting if you be a student than you are ready to spend time and not worrying that even spending 2 months i don't add a penny also ready for resolve mistake that doing in that learning process .
thank you my little brother

hello vipul this week my closest relative ask me how much money i make after month 2. i cant understand why people ask that type of question. in whole world its only in that business. i said to him you done MBA for that you gave four years of life . lot of money. you get pain sorrows that only you knows. why you think otherwise in trading . know i ask you ? doing engineering for that , you gave years of life . lot of money. you get pain sorrows that only you knows. friend be a ''STUDENT'' like u already done as in engineering. introduced yourself as a student of market not businessman or enterpenour . As a student as a learner 20000 rs is more than enough. use that money for learning not for quick profiting if you be a student than you are ready to spend time and not worrying that even spending 2 months i don't add a penny also ready for resolve mistake that doing in that learning process .
thank you my little brother

Thank u DS Ramesh, so I guess market is not the better place for me. Moreover i'm a technical student busy with my stuffs and i cant invest my time studying markets. So do u have any suggestion what to do with this money bcoz i dont like to waste the money which i collected it from my childhood thank u

Spend some time and do research and invest in mutual fund... Still think that you can't even spend a week time for this research better put your money in fixed deposit.

Thank you Vipul, for your comments,

Today's market is not for investment in long term, getting in here is like offering a tuition fee of more than 50% of your capital to catch a train which is in the verge of reaching it's destination and take an 'U' turn.

No doubt markets are inching up every week perhaps, but the underlying strength is pretty weak. Traders manage to scrape through with both losses and gains and they trade futures to gain from the down side move.

All the best stocks have run up mostly and have lost their energy at least for the time being. You say it is your hard savings. Split it into 20, invest in the best Mutual fund 5% every month. By doing this you would have got into the market at a fairly decent average. I suspect this market is going to go nowhere for another few years. There are some demonic events waiting to happen, major economies of the world like the US and the UK are into a bloated balloon of debts.

Though they may not leave their economies to beg like Greece, Spain, Portugal, Italy or Hungary. Still there is going to be a big damage to the world financial markets, a Mother of all Recession is on way. We traders or those seasoned to market dynamics can (i say can) survive, not innocent investors or new traders.

When these disasters happen you get the greatest opportunity to invest the best of best companies for a price that dirt cheap. That will be a golden egg in your basket and you can cherish it for your life time. Remember the last recession equivalent to the one expected now was in 1930 a near century ago. After that the market has grown by 1000%. This may seem small compared to the percentages which people keep talking these days.

But, take in mind that the stock markets have always given above average returns compared to any other investments in the long term. If you invest in good dividend paying companies, that will add a little more to the regular growth by giving you some extra cash every year, which will also be of real motivation to you.

The details I have given here are for a pretty long term, people may think this is too much for the 20K for which you sort advice, but the real value of that really huge money will only be known to the person who owns it. Though I have dabbled the financial markets across the globe with thousands of dollars worth of trades, still I know the emotional value that will be attached your money in particular.

I believe this small write up will give you the necessary inputs you need for parking those precious money of yours.