Investments and Equities Trading - Lets help each other!
- Thread starter anilsangwan
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ajayverma1973
Member
Investment
Thanks for the link provided, but its not working, i think there is some problem with website.
Thanks for the link provided, but its not working, i think there is some problem with website.
nishantrathi82
New member
Correcto mere Topper bhai
Waise i don't like investing in Share Market i consider it as a Gambling but like to have updates on market
anilsangwan
Active member
Correcto mere Topper bhai
Waise i don't like investing in Share Market i consider it as a Gambling but like to have updates on market
Bhai...you are right to a good extent... but to me it is like coin diving...... jump when market is down and come out with money in your hands...
But one thing I will suggest, one should start investing at early age... reason is, one can take more risk at early age than in late 40s because for a youngester..there is lot of time to recover even if you incur losses in the beginning !!! Lekin risk means calculated risk... na ki Rail ki patrri pe laitt jao
anilsangwan
Active member
Moneycontrol.com try kar lo Ajay ji.... there u can create your porfolio too....
A
anilsinghd
Guest
main nahi khelta 
itna badda post likha tha , JL ka server fail ho gaya ar mera post ud gaya
julm hai yo !!
itna badda post likha tha , JL ka server fail ho gaya ar mera post ud gaya
julm hai yo !!
A
anilsinghd
Guest
main nahi khelta
itna badda post likha tha , JL ka server fail ho gaya ar mera post ud gaya
julm hai yo !!
Fer likhoon soon !!!
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Hi Anil ( author of the thread) , It would be great if you can detail your points a bit more for everyone's interest , that would add depth to the topic and thread!
What i mean is that please elabrorate on the general concepts like how should one go about identifying a potential company!
What do you look at , what research you do ? what data you collect?I am not an investor , too early for that! But i sit in the middle of the global financial system and its been 1 and a half year since I started!
There are a few general and common things a investor must keep in mind:
1) Diversify your portfolio enough to keep away all the idiosyncratic risk! Best hedge against idiosycratic risk is the diversification and no concentration strategy! Choose the sectors you want to bet on and spread ytour portfolio against them!
2) Dont be under the impression that more the risk more the reward , Gambler's ruin and Kelly criterion are some explanations to this common myth , there is a certain level of risk which is optimum , more than that , you always are probably to loose!
3) Have your risk budget before you go for investing. And adhere to it very strictly , dont fall in love with your portfolio! IF something exceeds your risk budget , dont be afraid to sell ( have right stop-losses and always follow them without any ego issues )!
4) Var is a stupid thing to look for , there are black swans , there will be black swans , do tail hedging , it is extremely cheap in normal market conditions , insure your portfolio against extremem market movements!
Let me know if you want more explanation of any of the points!
Thanks,
anil
sunillathwal
New member
I think one must be very careful before investing at this juncture. There is tons of research which shows that on average, one can't beat the market with stock picking. But still some people can get it right (by chance or by skill). However, these are exceptional circumstances in global markets. Even if you know that a company is fundamentally good, the technicals can beat it.
My argument for NOT investing at this juncture is that Indian markets have become totally correlated to global markets. I attach below a graph that shows comparison of relative returns from various markets for last 2 years (INDU- US Dow Jones, HSI- Hong Kong Hang Seng, DAX- German, SENSEX- Indian, UKX- UK). Sensex is green in color. As one can see, the green line has moved pretty much in tandem with the rest for last 2 years. There was a period in late 2007 when bad news from the West had started coming in while the economic data from India and China was quite good. Lots of people believed at that time that India and China would decouple from the West, but by April 2008 they had corrected. This was the time when the global economy started getting really bad. Since then the markets have moved almost in parallel. Now my logic for this is that as bad news comes in people become more risk averse. Even though the news in India may not be as bad as in the US, the Americans would still consider India to be riskier. This can be seen in the huge negative outflows of FIIs from Indian markets in the last year. And once they withdraw, there is selling pressure, and hence the Indians who fundamentally believe in Indian economy also sell because of fear. And this fear thus translates into a self-fulfilling prophecy (Everyone is afraid that the market will go down and so they sell, thus actually causing the market to go down, which leads to more fear, more selling and more going down).
Now my inference from the above is that markets are not going to recover anytime soon. It is getting quite bad in Western economies. Lots of defaults are expected. The most important question for anyone investing now should be if the markets have priced in all the bad news. I think not, as I think that when there are defaults of some big names or nationalisation of banks, market has got to react negatively. I am not sure about the Indian economy, there are clear signs of slow down, but we are still far from outright recession. However, my point is that even if we are just slowing down (instead of going down), the markets would remain risk averse (unless the economy consistently beats market expectations which is quite difficult right now). Having said that, the best bargains are available when markets are down and out. That is your best time to get in the market. But I just don't think that that time has come. There should be a time before the recession gets over, when markets would start going up as they start pricing in the chances of recovery. But I don't think that time has come yet.
So think twice before committing yourself big time. And if you get in, get in for the long term (that is don't put in the money you need for your daughter's wedding 6 months from now). And look at the company's balance sheet, anyone with huge debt that needs to be refinanced in next couple of years should be a big no.
Disclaimers: Past is not an indicator of future performance.
PS: Markets can prove anyone wrong.
My argument for NOT investing at this juncture is that Indian markets have become totally correlated to global markets. I attach below a graph that shows comparison of relative returns from various markets for last 2 years (INDU- US Dow Jones, HSI- Hong Kong Hang Seng, DAX- German, SENSEX- Indian, UKX- UK). Sensex is green in color. As one can see, the green line has moved pretty much in tandem with the rest for last 2 years. There was a period in late 2007 when bad news from the West had started coming in while the economic data from India and China was quite good. Lots of people believed at that time that India and China would decouple from the West, but by April 2008 they had corrected. This was the time when the global economy started getting really bad. Since then the markets have moved almost in parallel. Now my logic for this is that as bad news comes in people become more risk averse. Even though the news in India may not be as bad as in the US, the Americans would still consider India to be riskier. This can be seen in the huge negative outflows of FIIs from Indian markets in the last year. And once they withdraw, there is selling pressure, and hence the Indians who fundamentally believe in Indian economy also sell because of fear. And this fear thus translates into a self-fulfilling prophecy (Everyone is afraid that the market will go down and so they sell, thus actually causing the market to go down, which leads to more fear, more selling and more going down).
Now my inference from the above is that markets are not going to recover anytime soon. It is getting quite bad in Western economies. Lots of defaults are expected. The most important question for anyone investing now should be if the markets have priced in all the bad news. I think not, as I think that when there are defaults of some big names or nationalisation of banks, market has got to react negatively. I am not sure about the Indian economy, there are clear signs of slow down, but we are still far from outright recession. However, my point is that even if we are just slowing down (instead of going down), the markets would remain risk averse (unless the economy consistently beats market expectations which is quite difficult right now). Having said that, the best bargains are available when markets are down and out. That is your best time to get in the market. But I just don't think that that time has come. There should be a time before the recession gets over, when markets would start going up as they start pricing in the chances of recovery. But I don't think that time has come yet.
So think twice before committing yourself big time. And if you get in, get in for the long term (that is don't put in the money you need for your daughter's wedding 6 months from now). And look at the company's balance sheet, anyone with huge debt that needs to be refinanced in next couple of years should be a big no.
Disclaimers: Past is not an indicator of future performance.
PS: Markets can prove anyone wrong.
A
anilsinghd
Guest
Unsystematic risk or risk that is uncorrelated to the overall market risk. In other words, the risk that is firm-specific and can be diversified through holding a portfolio of stocks.yo idiosycratic k hoya karre??
A
anilsinghd
Guest
Agree totally , these are no times for fundamentals or technicals! This is something not seen ever ( Gordon Brown bores me with his repeated usage of global downturn , global financial system issue etc etc , but he is right ! ).
These are unprecedented times. And no one has an iota of clue about waht's going to happen , whether the efforts of reflation will work or not!
The critical thing is of time , no doubt these are lows and if you are in for long ( on a name that's not gonna default
) , you will reap but you never know how low you can go before bouncing to highs!And people who reap bnefit always are the ones who have the right timings of getting in and getting out!
anilsangwan
Active member
As Anil bhai suggested... let us start with basics:
They very first and importnat point in share trading is selection of best broker or site using which you do share trading.
I liked ShareKhan.com for this as I had used ICICIDIRECT in the past. Their rates are very high. Sharekhan charges much lesser than ICICIDIRECT.
Anyone else knows the better share trading site?
They very first and importnat point in share trading is selection of best broker or site using which you do share trading.
I liked ShareKhan.com for this as I had used ICICIDIRECT in the past. Their rates are very high. Sharekhan charges much lesser than ICICIDIRECT.
Anyone else knows the better share trading site?
ajayverma1973
Member
Equity trading is neither good nor bad, its just what & how one do it and what it results into.
Making gain or suffering loss doesnt depends on market scenario but on factors like what stock you are picking, for how long you wish to retain it etc.
There are many a kind of strategies which people adopt. For example, few people insist on picking up stocks of blue chip or renowned companies only, whereas few others always trade in mediocre shares and this also results in heavy profits at times.
The later one being lesser practised, I would like to bring it to your notice specifically. In this strategy people pick stocks of mediocre level companies after observing their movements for some time. At times there are companies who are nearly defunct or with minimal operations, but if someone gets to know that its quite likely that the company is going to be referred to BIFR for its reconstruction or is going to get someone government aid, its share starts rising. Face value of shares of such companies is also less and therefore lesser amount is required to purchase its shares.
Then comes the risk part for the novices. Then the safest way to start investing is to start with a lesser amount and invest it in multiple stocks. Then slowly when you start making some gains take out your money from the process that you originally invested and then you will be just trading on your profits - then you are safe atleast in regards to your principal amount.
Making gain or suffering loss doesnt depends on market scenario but on factors like what stock you are picking, for how long you wish to retain it etc.
There are many a kind of strategies which people adopt. For example, few people insist on picking up stocks of blue chip or renowned companies only, whereas few others always trade in mediocre shares and this also results in heavy profits at times.
The later one being lesser practised, I would like to bring it to your notice specifically. In this strategy people pick stocks of mediocre level companies after observing their movements for some time. At times there are companies who are nearly defunct or with minimal operations, but if someone gets to know that its quite likely that the company is going to be referred to BIFR for its reconstruction or is going to get someone government aid, its share starts rising. Face value of shares of such companies is also less and therefore lesser amount is required to purchase its shares.
Then comes the risk part for the novices. Then the safest way to start investing is to start with a lesser amount and invest it in multiple stocks. Then slowly when you start making some gains take out your money from the process that you originally invested and then you will be just trading on your profits - then you are safe atleast in regards to your principal amount.
ajayverma1973
Member
Investment
Thanks for the information shared, we can also share our experience and suggestions here. In my opinion Reliance Ind., Infosys and SBI are better stocks, what to u all experts say?.
Thanks for the information shared, we can also share our experience and suggestions here. In my opinion Reliance Ind., Infosys and SBI are better stocks, what to u all experts say?.
How can i say anything
being a female .... i guess males will have better knowledge & ye waala kaam unko hi shobha deta hoga 
ajayverma1973
Member
investment
Haan to madam aap ne maan liya na male can do the things better, any how, these stocks are really good, i m following the same for last 3 years.
Haan to madam aap ne maan liya na male can do the things better, any how, these stocks are really good, i m following the same for last 3 years.
How can i say anything
anilsangwan
Active member
RIL: This share floats a lot. Upside and Downside...this share becomes the leader... So you can think of taking small term benefits here !
Infosys: Very good stock for long term... best buy at around 1150-1200 !!
SBI : No idea...!!
Infosys: Very good stock for long term... best buy at around 1150-1200 !!
SBI : No idea...!!
Nahi ji bilkul nahi maan arr na maanu jib tak aap mere saare sawaalo ke jawaab na de pao
.... aapte mere sawaalo ke jawaab to diye na jaate better kith te maan leyu aapne ... arr aap te 3 saal te follow karte aaye ho inhe arr fer bhi daro ho aur tips maango ho arr hum deve hain ... to kaun hua better 
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