Starting From Scrath - My Dairy And Experience

[bunny]

Ok

Today i went to geojit
There is a promo going on for 25000 intital deposit and you get demat + trading free and AMC for first year also free .. i am gonna avail this is think

He asked me for attested xerox copy of bank passbook and also 2 CANCELLED CHEQUE LEAF

Is it safe in providing the 2 CANCELLED CHEQUE LEAF ..?

They did not ask you for PAN card?

25K deposit towards what? As advanced brokerage or cash balance towards your account?

Yes, it is safe to provide cancelled cheque. Usually, only one is needed, but I don't know what the procedure at geojit, why are they asking for two?

Is your cheque personalized? I mean is your name written at the signature space? Usually they need it for account confirmation and MICR code of branch for e-transfer of funds.

Bank passbook copy means the first page(or whatever) where your name and address is written. Don't xerox the whole passbook

Make sure you get an acknowledgement of cheques(including the two cancelled cheques) along with the 6 digit chq nos.

 

[atulaw]

I think 25k would be his initial deposit in trading balance, since demat and trading account opening charges are supposedly free.

Few more things you need to inquire before registering.

1. What is the brokerage charges for Intraday (both buy and sell side).
Brokerage charges for delivery. Forget about derivatives (futures and options) for now.

2. If they are opening trading account for free, that means they will give you the 'gold platform' which is browser based. Tell them that you want 'Platinum Platform'.

3. If you can, dont even open an account yet. Read read read read and read some more. Give your self a month of reading about everything before getting into live trading. Read traderji and investopedia.

Atleast learn about these terms:

Basic level:-
candlestick
timeframe
trend (bear trend and bull trend)
moving averages (SMA and EMA)
stoploss
limt order
market order
delivery
margin
crossover

Basic+ level:-
derivatives
futures (dont go into options yet)
shorting (or short selling)
pivot points
resistance and support
ask price
bid price

You should just connect with what these words mean and their basic understandings.
After you do so, go over to finance.google.com and read charts of a single stock. Any stock of your liking. Read charts day in and day out. Use candlestick setting with 5min interval. and try to determine what next bar is going to be. Do this DURING market hours and even after market hours.

You can now open your account.

4. After doing so start trading with single share for first few days. See if you make profit or loss on that single share and your confidence level. Move up to 10 shares.. 50, 100 and so on.


Trading is very hard work. It is NOT easy money. In fact it may as well become the path to easily lose money!
Trading... Especially day-trading.. is a business where allegedly 95% people are losers and only 5% winners. That means you will have to compete with 95% people every single day!

Good luck and happy learning.

(still doing so myself)

 

[superman]

Thanks again bunny and atulaw

They did not ask you for PAN card?

25K deposit towards what? As advanced brokerage or cash balance towards your account?

Yes, it is safe to provide cancelled cheque. Usually, only one is needed, but I don't know what the procedure at geojit, why are they asking for two?

Is your cheque personalized? I mean is your name written at the signature space? Usually they need it for account confirmation and MICR code of branch for e-transfer of funds.

Bank passbook copy means the first page(or whatever) where your name and address is written. Don't xerox the whole passbook

Make sure you get an acknowledgement of cheques(including the two cancelled cheques) along with the 6 digit chq nos.

Sure did they asked for PAN
Here are the complete details
PAN,Passport,Bank Pass Book Xerox and 2 Cancelled Cheque Leaf
I have not availed cheque facility in my bank(SBI) till now and today went to bank to request for the same and they told the cheque book will arrive in 3-4 days to my home itself.

He(broker) explained that the cheque leaf will be required for bank proof and he told me to sign the cheque and writting canceled in big letters throughout it ..
So i cant open account unless i get the cheque book ..

And i am opening Demat + Trading + Marginal Account ...
I know marginal account is not neccessary at this point but i am thinking lets do all at one instant itself
The total cost told by him is 825 =>725+100 for marginal account
That why he asked for 2 cheque leaf i believe
And yes i will make sure i get an acknowledgment of cheques(including the two cancelled cheques) along with the 6 digit chq nos.

And i dont know whether my cheque is of MICR or Non- MICR type .. have to see it first time

And 25,000 should be deposited for trading account at first to avail free demat + trading offer
He told me that since you are planning to invest around 5-10 K just withdraw the remaining amount afterwards from the trading account

Can it be done ..? Is it ok to do so ..?

 

[superman]

1. What is the brokerage charges for Intraday (both buy and sell side).
Brokerage charges for delivery. Forget about derivatives (futures and options) for now.

intraday:0.03% delivery:0.3%

2. If they are opening trading account for free, that means they will give you the 'gold platform' which is browser based. Tell them that you want 'Platinum Platform'.

I will get the normal gold platform he told me that if i make brokerage to them say like 5000+ i will then get the platinum platform for free

3. If you can, dont even open an account yet. Read read read read and read some more. Give your self a month of reading about everything before getting into live trading. Read traderji and investopedia.

I am reading whatever i can the account opening process takes around 10-15 days as told by him. He also told that if i needed it urgently he can process all in 10 days

Atleast learn about these terms:

Basic level:-
candlestick
......

Sure i will do like this. Since i have around 5+10=lets say 20 days till i get my online trading account login,i will try to learn all these mentioned by you

You can now open your account.

4. After doing so start trading with single share for first few days. See if you make profit or loss on that single share and your confidence level. Move up to 10 shares.. 50, 100 and so on.


Trading is very hard work. It is NOT easy money. In fact it may as well become the path to easily lose money!
Trading... Especially day-trading.. is a business where allegedly 95% people are losers and only 5% winners. That means you will have to compete with 95% people every single day!

Good luck and happy learning.

(still doing so myself)

Thanks for the advise atulaw
Frankly i always used to think the share market is all like buy shares at gud price ..sell them if it cross your upper value or your lower value and make profits .. i am now sure its not like that

 

[superman]

Marginal Account is something like if i buy shares say worth 1 lakh even after having deposit just around 10,000 there will be interest in my loan ..
With marginal account the interest reduces ...and there are some other benefits he told me ..
is it right ..? ( i am sure i am not gonna need this for at least next 2-3 years )

 

[bunny]

So you paid Rs. 825 extra for margin account which you are not going to use?

 

[atulaw]

Frankly i always used to think the share market is all like buy shares at gud price ..sell them if it cross your upper value or your lower value and make profits .. i am now sure its not like that

That is a very broad sense of looking at trades. Much like saying that to go to moon, build a rocket.

Determining 'good price' to buy at good time and your upper and lower values is where the game is.

 

[superman]

So you paid Rs. 825 extra for margin account which you are not going to use?

100 extra ..
the total cost for Demat+ Trading + processing etc is 725 rs
for additional margin,100 rs
And no i didnt paid him yet.. i dont have all the prerequisites at this moment ( i mean cheque leaf)

 

[atulaw]

Btw, if you are going to use a browser based platform, forget about day trading. Its simply not possible.

although swing trading or positional trading is.

 

[superman]

1.BTW he told me one strange thing .."if you don't want to avail cheque book / bank refuses to give you one then just ask them for canceled cheque leaf and they will provide you one "
This is the thing that is eating my mind right now ... how come bank can give a canceled cheque leaf ...? is it true ..?

2.25,000 should be deposited for trading account at first to avail free demat + trading offer
He told me that since you are planning to invest around 5-10 K,just withdraw the remaining amount afterwards from the trading account
Can it be done ..? Is it ok to do so ..?