LIVE GST Certification Course by CA Arun Chhajer begins 27th April. Register Now!!

First time investment in stocks

Shamita (Learner) (410 Points)

09 October 2011

Dear Friends

I want to invest in stock market for the first time. But I have few questions:-

1. I have demat account. Do I need a trading a/c as well? What's the difference between the two?

2. Do I have to deposit money with a stock broker before investing?

3. What is the minimum amount to invest in the market?

4. Are shares bought/sold in lots only?

Please answer my queries.

Thanks

Reply
Follow
Share

16 Replies

Accountant (professional) (182 Points)
Replied 09 October 2011

you should have demat and trading a\c

demat is for descripttion of shares you held

trading is for online trading

it depends upon the broker u select and the scheme u choose however for opening acc the brokers normally dont charge viz.. sharekhan motilal oswal .....

u can buy in any quantity

if u are novice trader than my strictly advice is dont put ur hard earned money in stock market...

warm regards...

sdfdsfdfdsffdsfdfdsffsf

1 Like

ANUP GUPTA (KEEP SMILING fcaanupgupta@gmail.com) (303 Points)
Replied 09 October 2011

Go through SIP, make ur portfolio.

1 Like

(Guest)

demat account is the account where your shares are held in dematerialised format(since shares are no longer available in paper format) while trading a/c is the one through which you could trade.

be careful while investing as you could lose a lot of money especially in today's uncertain global market conditions.also go through reputed brokers to avoid any kind of problems you would encounter while investing/trading.

thirdly since you are not aware of how to invest so the best procedure is to first read about investing and then proceed with it before experimenting in real life.you could start playing virtual games like moneybhai investor of cnbctv18(moneycontrol.com) with fake money to get accustomed to the ins and outs of investing.

1 Like

Gopal Jaiswal (Article) (31 Points)
Replied 09 October 2011

Go for blue chip stock.......

1 Like

Shamita (Learner) (410 Points)
Replied 09 October 2011

Thanks for your replies.

To begin with I want to invest an amount upto Rs. 10,000.00 only in one or two stocks. And waith for 4-6 months and hope for the best. What charges are associated with investment in stock market - broker fee, any security amount, transaction charges etc. Please guide me.

Swapnil Jain (Finance - FP&A) (564 Points)
Replied 09 October 2011

i remember a warren buffett's famous quote...

"Today people who hold cash equivalents feel comfortable. They shouldn't. They have opted for a terrible long-term asset, one that pays virtually nothing and is certain to depreciate in value. "

and risk to spiderman ko bhi lena padta hai....hum log to phir bhi common man hai!! :D

good decision .... just be careful before investing and give more preference to FUNDAMENTALS of the company rather that POPULARITY of the stock

1 Like

CA Goutam Sharma (Chartered Accountant in Practice) (468 Points)
Replied 09 October 2011

I agree with swapnil

1 Like

shalu sharma (------) (33 Points)
Replied 10 October 2011

When you start loosing neither fundamentals, technicals nor any of the insider trading helps.please go for SIP or mutual funds, the safest way to earn regular returns, in such a troubled economy !!

1 Like

Rakesh (Executive- Commercial & CMA final student) (179 Points)
Replied 10 October 2011

Even as per me SIP is the best rather than investing in stocks..However if u want to invest in stocks then go 4 bluechip co's & only for longterm investment..Don't even think for intraday trading..

1 Like

CA Ankur Mittal (Assistant Manager @ Reliance Communication) (759 Points)
Replied 10 October 2011

Golden Rules...

1) Never run for an stock for which a news has been out..most probably the market has already taken into account the appreciation or depreciation before you will buy or sale as the case may be..

2) dont buy any share for dividend..

3) dont try to be too smart to play opposite to market sentiments..

4) Most imp..always trade with stoploss.. fix your target before entering or exiting any stop..dont be too greedy..book profit whenever you see profit..and if you are incurring loss book loss whenever there is rise in market or share..

Happy Trading and investing...

1 Like

Raghav Behani (Chartered Accountant) (944 Points)
Replied 10 October 2011

1. Go only for stocks that trade in good volumes and most preferrably stocks of the NIFTY50.

2. Follow stop losses, in the current scenario, 6-8 months isn't a good enough period due to Europe woes which make the next year also rough as per the current view.

3. Don't put your eggs in one basket. Go for 3 stocks of different sectors, as per the current market conditions, I would also suggest a defensive stock such as ITC to hedge your portfolio.

4. Put in an amount that wouldn't even pinch you if lost as you are new to the markets.

5. Follow your instincts and not someone's claim of: PAKKI KHABAR HAI.

6. Stay AWAY FROM DERIVATIVES as you are totally new.

7. The best quote of Dalal Street as well as of my idol Rakesh Jhunjhunwala : BHAAV BHAGWAAN CHE. It means that the markets are always right. Noone is bigger than the markets.

8. Finally, Investing is not luck, going to the casino is. And also, make sure that your investments don't take away your "CHAIN KI NEEND" :)

And yeah, markets are always volatile. Don't get scared when experts say "Markets are too volatile"

Have great investing time!!

1 Like

Rakesh Solanki (NA) (28 Points)
Replied 11 October 2011

Hi Shamita, here are my views on the questions that you have asked:

1. Yes, trading account is required to buy & sell stocks. You can opt for online trading account from some reputed stock brokers.

2. Mostly, you need to deposit the money before investing. In some cases, for small amounts, some brokers may allow you to invest first and then deposit that amount.

3. There is nothing as such a minimum amount required to invest.

4. Not necessarily, it depends upon you, you can buy/sell a single stock or buy/sell in lots.

For more detailed on your queries you visit your nearest stock broker.

1 Like

CA k sumanth kumar (CA ) (42 Points)
Replied 16 October 2011

hai.....frnds i was interest in shares very much........i will be thank full to if any one of u can suggest the courses that provided by NSE for getting knowledge about fluctuationin the stock market....for shares,derivativesetc.........plz give sufficient information frnds...........

1 Like

Ramalingam K (Founder & Director - Holistic Investment Planners (P) Limited) (21077 Points)
Replied 07 November 2011

Most of us have our own perception of investment based on our experiences, but also tend to be confused with the opinions given by others. Knowing the do’s and don’ts of the stock market would help us turn really as a smart investor.

https://www.holisticinvestment.in/dos-and-donts-in-the-stock-market

Regards,

Ramalingam K, MBA, CFP,

Chief Financial Planner,

Holistic Investment planner private Limited,

Www.holisticinvestment.in