Investing in stock market!

TracerBullet

Well-Known Member
#3
Simple, unless you have proven skills with stocks, invest using SIP in Equity Mutual Funds with good long term record and ignore market news. Then in long term of 5,10,20 years - you can expect Returns more than the nominal gdp ( inflation + gdp ). This is simplest and idiot free way to invest and is good enough for most people.

Cannot paper trade investing as holding period is much more than trading, but you try to read books and invest small amounts until you get a handle on it.

In addition, you can also invest in Debt Mutual Fund and manage your asset allocation. This will make returns less volatile but may also reduce returns. But it gives you options to withdraw money / or to invest in Equity when it is falling.
 
#4
I actually like investing into the stock market through the CFDs as I can start really small with 25 USD and thus limit the risk. Most stock brokers want at least 5000 USD minimum deposit to start, especially if I want to trade US based stocks.

I trade mostly SP500 at Vipro Markets, but they offer also some other stock indices like DAX30, full list is here:
http://www.vipromarkets.com/ecn-pro/
 
#6
Stock market investment can give excellent return rather than fixed deposits. Thus, one must be cautious about a few points before investing in stock market so that you can get best returns.

A few useful points to keep in mind if someone is seeking to invest in the stock market:

• Just make sure your brokerage company is registered with SEBI and the exchanges and do not ever deal with unregistered intermediaries.
• Ensure that you get contract notes after every transaction from your broker within 24 hours of the day of execution of the trades
• All sort of investment contains risk either small or large . Do not attract by market rumours or attractive advertisement.
• Always take wise decisions by studying the fundamentals of the particular company. Figure out the nature of business of the company along with its future prospects, management & past track record etc.
• Don’t invest in penny stocks as it doesn’t give you high returns.
 

toingpoing

Well-Known Member
#7
First one should be clear whether he/she is an trader or investor. For an investor,there is no minimum capital requirement and time involvement. He can put in time as per his convenience.

If coming under trader,its a serious full time profession. First one needs skill and knowledge in trading. Like any business,this business also needs good capital. Then full dedication and concentration is required.

It is unfortunate that people with few thousands in capital,having no skill,plan to earn millions in a few months.
 
#8
Before taking the plunge into stock markets one should be mentally and financially prepared, having understood the risks involved in it. Market research and timing is the key to success in stock markets. Start trading with a small amount then gradually increase your investments .One should know that how to read Sensex,Nifty,trading charts etc. You must get your basics right.
Emotions have no role to play in portfolio investments. Let the brain rule the heart. Mind you, stocks are high-risk, high-return investment instruments.

• First-time investors will be better off entering the equity markets via exchange traded funds (ETF) and index funds,". So one can invest in through Mutual Fund as well . The bulk of your equity corpus should be invested in mutual funds because investing in equities can be risky, especially when indices are close to their all-time high levels.
• I would like to advice, "Don't marry a stock", we need to continuously monitor the performance of the stocks we have and take corrective decisions as need be.
• Compare pricing and other services being provided by different brokers. You can choose from many a good discount brokers these days offering incredible pricing along with services. Account opening is generally free but take note of any hidden charges involved.
• Invest through a registered broker or sub broker. Monitor your contract notes, make payments on time and periodically check your DP holding statements.
• In the short-run, the price of the share can wildly fluctuate so always try to invest for the long-term.
• Investors can protect themselves from Volatile markets and prevent from losses by using Sell Stops, Sell Stop Limits, Buy Stops and Buy Stop Limits.
 

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