The Stock Market Thread

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I am a regular investor in MFs.

Now I want to invest directly into shares but don't know how.Me in for a long term investment.

After reading the entire thread me planning to apply for a Demat & trading account from ShareKhan.

Now the question how to begin trading..

- Should I begin with some Blue Chip companies or start with small mid cap

firms to get a better return or rather how should I pace my investments.

Would be investing in a SIP kinda format with a set amount of money

every month, don't wanna blow up money.. might revise the strategy after

I get the knack of it.

- Where do I get info about the companies or shares. I have started reading

ET and Live Mint from HT. Any books that I can read about the basics of investment, basic terminologies. Tried using Net but 90% sites are

blocked. ( but ShareKhan works )

- Most important how to learn about investing.
 
I believe you should try your hand at some of the stock market simulations....for some valuable experience without actually losing any money.....you could use it for trying out new strategies too.... Try to get to see your emotions...they're responsible for most of the major mistakes....once we can check the greed and the fear... the chances or big losses get reduced... One page with a stock market sim (and I am sure u'd have known it before : Moneybhai Investor >> Free Online Virtual Stock Market Trading Game) and about the question of going with the large caps or mid caps, I would suggest the blue chips....particularly in the current market scenario where a midcap looses weight like anything.....you may try using some common p2p search engines for useful material but that will generally not be india centric .....It would still help with the fundamentals though....which are absolutely essential for a long term investor.
 
But the issue regarding how to select a company. Where to get the information about the same. Blue chips are fine as practically everybody knows about it but what about everything else .. or how to invest in bullish market
 
Opened with a gap up as predicted .. but then was unable to sustain - subsequent attempts failed to conquer the mornings high and huge retreat towards closing. Another day - another attempt will follow - possibly a decisive battle between the bulls and the bears - the winner will rule for the next 12 months.
 
@ Deepakkrishnan : I am sure some of the more enlightened members at TE would help you with that better than me...but I believe that fundamentals must be the most important criterion for buying the stock (for a long term investor)...although the technicals are important too...so one can look at the company figures to start off and have a rough Idea....I am sure as you read stuff about this, you will evolve as an investor over time....as everyone does...but avoid listening to the "noise" that is ever present in every market- bullish or bearish .....I consider myself as a noob investor too...so I am in the process of learning too... I began with "Understanding Stocks- by Michael Sincere - TMH publications" ....liked the book....
 
medpal said:
asian markets are up today so indian markets too will be up.

will try to catch REl today if at attractive levels i can enter.

yesterday i got hold of JPASSOCIATES at 290.

Following up with brokerages discussion:
I have fired all the Motilal Oswal employees yesterday here with extreme wroding, those fools put me into offline account rather that online accounts, and were not answering my queries properly.

I was so annoyed with them i gave them mouthfull whole office was looking at me and the person concerned, the head was not office otherwise i would have thrashed him too.

So befor selecting your brokerage house make sure you try to avoid MOTILAL OSWAL.
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What is the distinction between an offline account and an online account?
 
Darthcoder said:
^ Next 12 Months??:O. Seems like a decisive battle on cards shortly.
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The bears have one more fort to fall back to in case they loose this battle - 5250 -- and likewise 4650 for the bulls, after that all is lost for the looser .. and winner takes ALL.
 
Neotheone said:
@ Deepakkrishnan : I am sure some of the more enlightened members at TE would help you with that better than me...
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The enlightened members are busy predicting the Market.

Neotheone said:
I began with "Understanding Stocks- by Michael Sincere - TMH publications" ....liked the book....
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Thanks for the advice.. I'll check the book this weekend.
 
Neotheone said:
@ Deepakkrishnan : I am sure some of the more enlightened members at TE would help you with that better than me...but I believe that fundamentals must be the most important criterion for buying the stock (for a long term investor)...although the technicals are important too...so one can look at the company figures to start off and have a rough Idea....I am sure as you read stuff about this, you will evolve as an investor over time....as everyone does...but avoid listening to the "noise" that is ever present in every market- bullish or bearish .....I consider myself as a noob investor too...so I am in the process of learning too... I began with "Understanding Stocks- by Michael Sincere - TMH publications" ....liked the book....
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Fundamentals are junk and for the history books to explain AFTER the event. I yet have to see a long term Fundamental call on any stock, and am waiting for the day for someone to point one out - Specifically knowledge and information available in the public domain.
 
^ Quite a big statement to make :O.

But its not only the fundamental analysts but any sort of analyst technical or whoever, nobody has ever been able to predict market behavior (nor will anybody be able to I guess). In Indian market in present conditions fundamentals have taken a back seat I agree but if fundamentally, the company you have invested in is doing good, I dont see it not getting the valuation it deserves.
 
Fundamentals are junk and for the history books to explain AFTER the event. I yet have to see a long term Fundamental call on any stock, and am waiting for the day for someone to point one out - Specifically knowledge and information available in the public domain.
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Lol ask any fundamental analyst, and they will say technicals are junk. The battle is endless, fundamentals may seem more logical in reasoning etc... (atleast for the layman) but in a market driven by sentiments such as India both fundamentals as well as technicals go for a toss.

Besides a correction was long overdue, however you saw it. Stocks were overvalued, the Indian independency from the global scenario was taken too far. IT stocks have somewhat weathered the beating primarily as they were absent in the bull run.. but their dependency on the US companies for revenues will deter any real growth. But there are some good picks there too at current levels, Sasken communications for one has been battered a lot. Their business model though seems intact, it looks decent at current levels, mind you this is a long term view. At what levels should one enter is best answered by the technical analyst.

Basically this is how they go in big investment houses, the fundamental guys select a sector and the company, the technical guys select at what levels to enter or exit etc. No big investment houses will rely on only either fundamental or only technical analysis.
 
Aces170 said:
Lol ask any fundamental analyst, and they will say technicals are junk. The battle is endless, fundamentals may seem more logical in reasoning etc... (atleast for the layman) but in a market driven by sentiments such as India both fundamentals as well as technicals go for a toss.

Besides a correction was long overdue, however you saw it. Stocks were overvalued, the Indian independency from the global scenario was taken too far. IT stocks have somewhat weathered the beating primarily as they were absent in the bull run.. but their dependency on the US companies for revenues will deter any real growth. But there are some good picks there too at current levels, Sasken communications for one has been battered a lot. Their business model though seems intact, it looks decent at current levels, mind you this is a long term view. At what levels should one enter is best answered by the technical analyst.

Basically this is how they go in big investment houses, the fundamental guys select a sector and the company, the technical guys select at what levels to enter or exit etc. No big investment houses will rely on only either fundamental or only technical analysis.
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Maybe an endless battle between fundamentalists and Technicians, but the bottom line remains that some one yet yas to point out fundamental calls to me.

And as far as your sequence of events goes - the ground reality is - the fundamentalists come to the TAs and ask, "which sector is running" or "which sector looks good" and a fundamental report comes out a few months later. I have proved this (with their own publications and records) several times over in more then one large investment/brokerage house. The TA department calls ALWAYS preceded the fundamental department.

A brokerage house would wind up pretty quick if they had to rely on fundamental calls.

If you want to go further into this, I can point out instances every day.

A free sample is "market fell cause price of oil is touching $+70" - A target which I predicted @ ~30.

And the last but MOST important point, ALL markets are driven by sentiments only, no point in singling out the Indian stock market alone. When it rises .. most see a higher target - when it falls most see a lower target. A few see something else. (Most here = almost all)

Anyways I just wanted to point out to the new comer, that fundamentals will get you no where. There is nothing you will find in the B/S of a company that will give you an inkling of its future price or growth, and as an individual you will never be able to analyse a company on your own.

The BEST results are got if you "get to know" the long term plans of a company, and then you apply TA to it. But then info will never be in the public domain.
 
Anyways I just wanted to point out to the new comer, that fundamentals will get you no where. There is nothing you will find in the B/S of a company that will give you an inkling of its future price or growth, and as an individual you will never be able to analyse a company on your own.
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Now thats where you are mistaken its just not the B/S or Income statements etc, we actually take into considerations the industry's projections the company's guidance et all into consideration while preparing models. Maybe here in India, the transparency in reporting is unclear and hence making estimates of future growth becomes that much more tougher.

In the US its a totally diff scenario, the company's share price moves dramatically during the earnings day depending on current results as well as future outlook. I agree that even the fundamental method has its shortcomings especially in the discounting model where a company's perpetual growth rate is anyone's guess work. But personally I would be more comfortable to know that my money is in a company which is in at the right industry, with a capable operation/management team, and more important at the right time.

I am largely unaware on the TA's method of working but "predicting" a stock based on the assumption of the "magical" properties of the ratio pi, will surely not be my only avenue when investing. I am sure am gonna be flamed by you for making this statement but as I largely said am a fundamentals guy (so in-bred dislike to technicals) but yes I will be liar if I say that I ignore technicals, as at what levels to enter or exit a scrip can be best judged by them....
 
ok guys its about time i posted in here.

I plan to finally start investing in stocks. Enough policies.

As of now i do not have a Demat account.

So I will be opening a new one. I have my bank acc in HDFC.
So what do you suggest for the beginner?
I am not exactly unaware of the markets, been watching what my father does for long time now. But all his trades are done offline.
Which online trading service would you suggest. Many people I have asked seems to prefer indiainfo, sharekhan and HDFC.
What is useful for the regular guy like me. A classic account with sharekhan or speed trade account.
Plan to be quiet regular investor in stocks. Around 20-40% of my monthly income.
So suggest accordingly.
As of now from what I have researched, i am inclined to Sharekhan and HDFC.
 
my suggestion would be Sharekhan, since i have an a/c with them and havent faced any problems till date. They sometimes give calls as wells which have never been wrong for me. There online website is top notch and easy to understand. BUT I have been using it only for 1 Year, so you might want to ask some more experienced players here.

20-40% of your monthly income??? :no: , what will happen to your computer purchases?????:cool2:
 
Aces170 said:
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But personally I would be more comfortable to know that my money is in a company which is in at the right industry, with a capable operation/management team, and more important at the right time.

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Absolutely true IF you are a long term investor - Longterm here means investments ranging from a minimum 1 yr to 10 yrs or more.

In the mkt long term generally refers to 3-6 months, in which case the immediate perception of the stock is more important then any fundamentals.

About the rest, I will not say anything, cause its an endless story - which is to be rehashed when we get bored and with nothing else to do :D
 
In the mkt long term generally refers to 3-6 months, in which case the immediate perception of the stock is more important then any fundamentals.
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Hehe, in my books thats short term. Ok fine for ppl whose primary income is through investing the mkts might make sense, but pratically speaking a company is not going to change its business in that timeframe. So the only driver of the shareprice in that timeframe would be market sentiments.

Now since market sentiment, can be extrapolated from past experiences, this is where technical analysis shines, because their base assumption is the past movement of stock prices. So ppl who want to invest money at this timeframe should prefer a technical analysis...

Funky, go for ICICI direct their web portal is easily the best, as well as they were one of the few portals which took trades during the mkt crash. It might seem insignificant to you, but could cost you a couple of thousands in missed oppurtunities... I had a bad exp. as my trader's a/c was suspended due to margin payout issues
 
^ Exactly, Eventhough their transaction charges are a little high at 0.70% of each transaction. I was able to login and find a few sweet deals (Although the website was very slow) during the market crash while many of my friends could not trade as their accounts were closed/locked.
 
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