Stock market points
Sathish M (Management Accountant) (40581 Points)
06 July 2014
On the day of Budget, by how many points will the BSE and NSE soar or shed?
Rupali Jain
(CS)
(21 Points)
Replied 16 July 2015
I am very interested in Investing in the stock markets and that you are about to do something that you will regret for a very long time.
The Initial step toward investing in stock market is to open a bank account. A bank account is required to hold your funds that you will be investing.
Just like bank account is required to hold your funds, a Demat account is required to hold your assets such as equities, mutual funds and debentures.
A trading or brokerage account lets you buy stocks, bonds, mutual funds, and other units by paying the broker to do the trading on your behalf. You would not be able to do trading without a trading account. For your convenience, banks have started providing all these services in a single unified account.
In order to build profits, have a sound understanding of all the concepts of the market.
Always keep in mind, Asking For Free Off-The-Street Advise Is a Highway to Disaster!
If people can trade the stock markets successful by posting questions like this, why are lots of people still poor? There are quite many things you need to learn previous to you can even start thinking about the stock markets...
1. First, you need to understand how the stock market works and what it is accurately about.
2. You need to know different styles of trading in stocks and shares.
3. You need to study about why lots of people lose their shirts in the stock markets so that you can avoid their mistakes and also make a decision if this is a risk you want to take.
For all these issues and more, you can read about them from some of the articles that I wrote at https://www.sooperarticles.com/finance-articles/stocks-articles/better-understanding-stock-market-trading-commodity-trading-tips-1427638.H T M L or https://www.sooperarticles.com/rss/authors/rahul-tomar-488087.X M L
After you are sufficiently armed with the fundamental concepts and ideas, you need to know how to find money-making stocks to trade or invest in. You can do that the simple way by subscribing to stock choose services (example https://www.trifidresearch.com/ ) or you can learn to use daily and weekly news updates on my blog page to find excellent stocks with parameters that you can pre-define.
After you have all the above point out knowledge, you need to ask the following golden questions previous to you can decide whether a stock is worth buying or not:
1. Why are you of the opinion that this stock will increase?
2. What is your expected entry price? After what price would your expected profit margin be too thin to enter upon?
3. Is your opinion valid in the first place?
4. When are you expecting it to increase? Can you hold on for that period of time or longer?
5. Where is your projected profit taking point? What is your profit taking point based on?
6. Where is your expected stop loss point? What is your stop loss point based on? Where will you tell yourself that it is time to take a loss and get out?
7. Does the way you are buying the stock allow you to hold on until your expected profit taking point?
8. How much of your money should you dedicate to this one trade?
9. What is your cash flow need? Do your cash flow needs permit you to hold the full lifetime of the stock?
10. What is the level of primary, secondary and idiosyncratic risk you are undertaking when deciding how much of your fund to use?
So, as you can observe, success in the stock markets is not easy at all the fewer knowledge you have, the more risk you undertake. I lost hundreds of thousands in the stock markets previous to I become successful.
Take heed and good luck.
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