Stock Trading - Where to Begin?

B

bond_bhai

Disciple
Hey guys,
I am sure some of us are already into "equity" Trading. Any help as to where to start with? What should one read/understand? I am not asking for Stock tips etc, i am asking what should a n00b do incase he wants to get his hands dirty?
 
You must remember below two mantra's before you start investing in stocks.

1st mantra - Don’t put all your eggs in one basket.

2nd mantra - Learn to buy when low and sell when high instead of the other way around.
 
1. Be sure of your goals and stick to it.
2. Understand Risk Vs Reward concept viz a viz Day Trading, Short Term Trading, Long Term Trading, Investing (The definitions have significantly changed in last 4-5 yrs)
3. Patience & Diversification (That has been the commonest key as per most successful Investors. Buy Low .. Sell High is just a generic statement)

No matter of research/analysis will give you sure shot way of increase in your corpus. In the end, Stock Market is just a speculation. Stockmarket is a weird place. For every person who buys a stock there is a person who sells it and both think they are very smart.

"I never attempt to make money on the stock market. I buy on the assumption that they could close the market the next day and not reopen it for five years." - Warren Buffett

Time Pass Read - 16 Meaningless Market Phrases That Will Make You Sound Smart On CNBC - Business Insider
 
Step 1: Identify your goal
Step 2: FIND A GOOD TEACHER

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dipen01 said:
1. Be sure of your goals and stick to it.

........... Buy Low .. Sell High is just a generic statement)

..........In the end, Stock Market is just a speculation.

........ For every person who buys a stock there is a person who sells it and both think they are very smart.

"I never attempt to make money on the stock market. I buy on the assumption that they could close the market the next day and not reopen it for five years." - Warren Buffett
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In order of quotes

1. Very True

2. Very True and most silly advice any one could give.

3. Stock Market is not all speculation its more about probabilities (for the profitable "players")

4. Both think they are very smart, but reality is only 5% are actually smart and make money.

5. Warren Buffet - Depending on who you talk to - mixed reactions - I think he will not survive the next 10 years
 
TheIndian said:
5. Warren Buffet - Depending on who you talk to - mixed reactions - I think he will not survive the next 10 years
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Do you have any idea how many people for the last 50 years have been making such predictions about Buffett. All of them have been proved wrong.
 
At the same time, it is extremely important not to blindly follow Buffet or for that matter anyone. Their Constraints, Requirements & expectations are all different.

Buffet has vast amount of liquidity owing to his Insurance business but for average investor liquidity is not so easy to come by. So he can afford to sit on cash or sit and hold for a decade without affecting his performance.

Crux being, you have to make your own rules and then religiously follow it.
 
it would be good if anyone suggested with which bank demat/trading account should be opened for occasional trading for amateurs
 
Hacker said:
Do you have any idea how many people for the last 50 years have been making such predictions about Buffett. All of them have been proved wrong.
Click to expand...

That is my opinion, I could be wrong, but Look me up in 5 years and we shall talk again about this.

and you are wrong about that 50 yr thing.

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impulse1992 said:
it would be good if anyone suggested with which bank demat/trading account should be opened for occasional trading for amateurs
Click to expand...

It all depends on the frequency of your trading, when it comes to investing its best to talk in terms of specifics and absolutes rather than general terms like occasional, frequent, long term, short term, Big gains, etc

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dipen01 said:
At the same time, it is extremely important not to blindly follow Buffet or for that matter anyone. Their Constraints, Requirements & expectations are all different.

Buffet has vast amount of liquidity owing to his Insurance business but for average investor liquidity is not so easy to come by. So he can afford to sit on cash or sit and hold for a decade without affecting his performance.

Crux being, you have to make your own rules and then religiously follow it.
Click to expand...

Now this is perfectly bang on target.
 
HDFC 3 in 1.. Demat+Trading+Savings does the Job for me.. Brokerage is slightly higher but then its hassle free and for occasional investors it should not be much of an issue. (because the volume/frequency of trades will be considerably low)

Also used Angel Broking for some time. But didn' like/use it that much and hence closed it.

If you can opt for some local chap, then it can be much lower but then more 'kitpit' as well.
 
Google don't provide experience of this forum members...
If you can find that on Google...Please provide the link.

BTW: Cost of searching : FREE
 
Icici and other banks which have demat trading give some free (on the net) and paid ( actual classes) on stock trading.
The BSE also has some classes on mutual funds etc.
Plus there are lots of sites like about.com which have articles on trading. They are mostly about us stock market, but the basics are the same.
 
^his articles are really good, but jackass spams too much. 'Dear tribesman pay me this and that, lets do seminar' and all the shit. Don't subscribe to his email newsletters, but read all the articles on his blog. Very good.
 
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