Sunday, September 30, 2012

Start investing in the share(stock) market


I heard once Warren Buffet saying that he was bit late, investing in the stock market. Infect he was 11 years old when he first bought shares! Don't worry you can still start and learn how to invest in shares since the key for success is "PATIENCE". i want to share with you some of the good sites and ideas about investment. but remember one thing do not be greedy and rush for quick money. remember learning is key to success thus let's learn about investment.Do not jump into market unless you have basic knowledge about investing.
First thing you need to know about trading is buy/sell and believe me it is all about buying and selling nothing else.Well, buy /and sell is not that easy otherwise every person investing in a share would be Warren Buffet.For me stock trading is the most complex process on t he earth.Since it involves many aspects of the real, emotional and sentimental world! Sorry if i am discouraging you here but that are facts of trading world.There are people and website who advertises that how to make a million dollar from market if it is that is why don't you go on do it and not trying to make penny from your book or advertising.oops we are drifting out of topic here.Coming back to the point of buy /and sell, what is important here is the time, time to buy or time to sell. i read once some where in one of those books about investing and there was a smart investor who use to let people know when he is buying in a market but no one knows when he is selling. you see smart investor. There are many ways to learn about when to buy or sell but a very good indicator is Candlestick Pattern. a series of videos available on YouTube about this pattern very helpful for beginners.
I know your question is what sources to follow for guidance. I'll say do not believe in any one believe in yourself and your knowledge. Learn from various sources available on internet.Google is the best friend and it is free.There are some Do's and Don't while investing. Discipline is very important.Don't be emotional towards particular stock. Don't be sentimental as well. Don't invest more than 8 to 10% of your total savings. Don't be greedy, means take profit at around 20% if you are long-term investor.There are many types of investors such as Short Term, Long Term, Momentum, Swing Trader, Intra-day Trader. Get familiar with all those terms. Know your risk appetite.
If you're new to investment, a good way to start with is Mutual Fund. since MF's are managed by professionals AMC's and gives idea about good companies to invest in. I am not saying you do what they are doing but instead you should keep an eye on them for their strategies and what sectors they are investing in.There is also comprehensive guide available on this website about MF.
The way I found convenient to invest in share market is the way of Swing Trading.
Other thing I would like to discuss is about investment jargons.Some of them are easy to understand and some of them are a bit confusing(Click here for Learn and Discover about Technical Analysis).
  • Limit order
  • Stop loss order
  • Market order
  • Trigger price
Do your home work before investing. Don't know where to start? here is some points to remember and some useful links.
  1. Do not follow brokers call in fact do otherwise.
  2. Look for BlueChip Shares. Moneycontrol Mutual funds section is the best place to start with.
  3. Market cap is good way to start with. Watch this video
  4. Don't get trapped with intraday trading. Learn different ways of trading.
  5. Learn trading discipline before investing.
  6. Learn Technical analysis. There are plenty of sources available but this one is my favourite.Swing Trading
  7. TradeTiger (Sharekhan) is an excellent trading platform.
  8. Moving averages(SMA 10 and EMA 30) are the simplest and easiest way to find when to buy a particular stock.
  9. Stochastic is another excellent indicator to learn about stock trend.
Please write your comment below about this article and please do share your knowledge.
Investment Ideas

1 comment:

  1. thanks for sharing .are have confused with investment strategy visit our website https://www.fundsindia.com/mutual-funds

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