What is abc, xyz about economics.

Parul

Red Devil
Dec 2, 2017
1,304
1,227
Voronezh
@suryakiran I just got Traiding/Demat Account opened & wanted to learn nitty gritty of Traiding. I want to start by investing 10K in stock markets.

What shares would you suggest to buy?
 

suryakiran

Team StratFront
Dec 1, 2017
657
736
Bangalore
@suryakiran I just got Traiding/Demat Account opened & wanted to learn nitty gritty of Traiding. I want to start by investing 10K in stock markets.

What shares would you suggest to buy?
Let me start by saying, the point is when you should buy and what you should buy. Not just what you should buy. Could you please answer the following

1. Is 10,000 the total amount you are going to invest? Or is it going to be a monthly thing.
2. There is a possibility of your investment being halved at certain points of time. Are you ok with this kind of risk?
3. Are you looking to buy and sell like a trader or are you looking to invest and hold?
3a. If invest and hold, what is your time frame?
4. What is the kind of return you are expecting on the investment you make on an annual basis?
5. I am assuming, that, if you have any EMIs the loss of this will not affect your financial position.
6. Are you comfortable learning how to trade, instead of me telling you what to buy? This will involve you putting in time to learn.
 
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Parul

Red Devil
Dec 2, 2017
1,304
1,227
Voronezh
Let me start by saying, the point is when you should buy and what you should buy. Not just what you should buy. Could you please answer the following

1. Is 10,000 the total amount you are going to invest? Or is it going to be a monthly thing.
2. There is a possibility of your investment being halved at certain points of time. Are you ok with this kind of risk?
3. Are you looking to buy and sell like a trader or are you looking to invest and hold?
3a. If invest and hold, what is your time frame?
4. What is the kind of return you are expecting on the investment you make on an annual basis?
5. I am assuming, that, if you have any EMIs the loss of this will not affect your financial position.
6. Are you comfortable learning how to trade, instead of me telling you what to buy? This will involve you putting in time to learn.
1. No. That's the initial amount I want to invest to understand Trading.
2. Yes.
3 & 4. I want to do Delivery Trading. Keep Holdings for long time.
5. No Emi's
6. I want initial guidance on which stocks I shall invest & would like to trade myself in future. I am reading about stock markets etc., to learn the trade. :)
 

suryakiran

Team StratFront
Dec 1, 2017
657
736
Bangalore
1. No. That's the initial amount I want to invest to understand Trading.
2. Yes.
3 & 4. I want to do Delivery Trading. Keep Holdings for long time.
5. No Emi's
6. I want initial guidance on which stocks I shall invest & would like to trade myself in future. I am reading about stock markets etc., to learn the trade. :)
Ok now that we have that out of the way. A few disclaimers from my end. I trade on technicals. I am no good with fundamentals. But will try and guide you.

a. I think, we are going to see a 7600. That is my personal opinion.

b. Be ready to buy when Nifty hits that level. Have a list of stocks ready to buy then.

c. Because, you are still learning stay away from penny stocks and mid caps. The returns may be much higher, but chances of them becoming less than 25% in value also exists.

d. Stick to liquid stocks. Liquid stocks would be the ones which are present in Nifty 50.

e. Do not deploy more than 20% of your corpus on any trade. If you have 10k, deploy 2k. Follow this religiously for 3 months.

f. Before you deploy 2k, do paper trading for 3 months. Paper trading is where you do not actually buy, just note down on a piece of paper that you bought and sold.

g. Will give you a very very simple strategy. Take any stock in Nifty. Take the Daily MACD. buy when it gives a buy signal. hold till you are happy with profits or whenever you get a sell. (This is your homework. I am not going to tell you what stock to buy, because you want to learn.)

h. Do not attempt options and futures for now. No matter who gives you a tip or what the returns.

i. Zerodha has a lovely learning section on youtube. Go through the same.

Most critical. WHAT WILL MAKE YOU MONEY IS NOT THE RIGHT STOCK, BUT THE CORRECT DISCIPLINE. I cannot tell you enough, how important discipline is. And patience.

Feel free to ask for any clarifications. Will be glad to do the help.

cheers.