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Started by : Esha Johar, Risk Analyst, Irevna   07 16 2010 10:42:35 +0000
Industry : Equity Research/AnalyticsFunctional Area : India(Markets)
Activity:  158 views;  last activity : 09 14 2010 15:08:32 +0000

You've worked hard and saved money. Now you want those savings to work for you and earn you even more money. The stock market is the easiest and best way to do it, provided of course you know what you are doing. But many stumble in the first place and getting back will be a difficult option. Hence getting it right for the first time is the way to go...So, what are the Top 10 stock market tips for beginners??

 
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1 2 3 4 5
1 First determine your goal
2 create a methodology and stick to it
3 start small
4 Never believe in the word TIPS
5 Observe first
6 G Y Moses \ follow the stoploss
7 PE VALUE OF THE COMPANY IS MOST IMPORTANT THING
8 just believe in power of compounding and invest monthly a small amount in good rated mutual fund scheme
9 be a investor not speculator
10 You must know when to quit
11 Knowledge on market
12 swing with the market

First determine your goal

idea posted by Esha Johar Risk Analyst, Irevna

Are you trying to generate an extra income or do you just want your money to grow so you can retire at an early age? Once you have defined your goal, then you can create a trading strategy for achieving that goal.

Also before investing real money, practice paper trading your stocks and strategies. "Paper Trading" means simply that you find the stocks to invest in and pretend you are buying them. Once your paper trades make consistent profits on paper, then start trading them for real money.

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I m not agree with you because only one reason how it is work for old age pension plan because the stock market is bullshit, many people lost own everything and they are also using strategic planning. How stock market help in old age???????

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Learn little bit of accounting, may be the basics and then go from there to learn to read the balance sheat of each company you invest in, may be the abridged financial statements which are available in financial magazines like Dalal Street, Capital Markets, or even on the web like livemint or yahoo.

Study how they operate, management will be knowledgable in their work in almost all companies otherwise they won't be in this line of activity. Samll and medium included. If one requires volatility pick up companies highly leveraged like DLF or if you need long term investment pick up companies that has large reserves and low debt called stable companies like Great Eastern when their p/e is low. If  one require growth companies low dividends one will be sufficient where the management ploughs back income for growth.

Check if management is active by showing tendencies to grow like future plans, scalability of businesses etc;.

Investors living in Industrial belts and metros can even visit these companies and get a first hand outlook at the companies before investing after studying their financials ans knowkledgable somewhat about them.

Funds like Legg Mason don't even use sophisticated softwares or databases for picking investment targets, they use only commonly available information from magazines.

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yes i agree to esha first we have determined our GOAL after it all things take place,we must have know what we want

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create a methodology and stick to it

idea posted by RAMESH KANDADAI Principal Consultant, ARM Consultants

1. select the amount you want to invest.

2. Look for a reasonable profit margin.

3. Go through the equities available

4. Look at their track record and see how they fluctuate

5. Decide how much you want to profit and over what time frame

6. Invest

7. pull your investment when you reach the profit margin you decided no matter what.

8. Going through stps 1 to 7 you minimize risk and eliminate loss.

Once you have confidence in the handling of your market and portfolio, go for bigger risks and decide as you learn.

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by Satadru Shastri, Partner, Mukherjee & Shastri  | 07 26 2010 19:48:01 +0000

absolutely necessary, wonderfully penned down, tnx

 

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start small

idea posted by Satadru Shastri Partner, Mukherjee & Shastri

It is advisable for beginners to start with small amounts. Trading can be complicated, chaotic and even misleading for beginners. Paper trading is a good idea but still actual trading may prove confusing and nobody wants to loose a large sum of money first up,,, right!!!  

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Thanks Mr.Satadru Shastri,

Your idea seems very good for the beginners without burning the fingers.

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Everyone has a goal in his mind while entering the stock market may not be always appropriate, so its better to start with small amount so as have a practical experience and know-how that how market moves, then decide a strategy or path to follow up to achieve your final modified or predetermined goal. 

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Never believe in the word TIPS

idea posted by Sayan Chakraborty Senior ERP Consultant, International Business machines

Please do not ask for TIPS or Believe TIPS.

TIPS makes the share market a gamble and loss of money for many people.

Do your own detailed research before selecting shares.

Best of Luck!!!

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yes. dont believe in any tips i repeat any.

becoz the market survives on the mistakes of both the bulls and the bears. if any group were to win ( or lose ) continuously the market will cease to exist.

and if you  think  there exists a third group called neutrals ( call them analysts if u like ) you are mistaken . there is no third group in the market.

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Observe first

idea posted by Gopinath Srinivasan CEO, IIQ

For beginners, my advice would be to observe the market movements first. See how the market reacts on what news and then might be he can slowly start.

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G Y Moses \ follow the stoploss

idea posted by George Y Moses Deputy General Manager, R S Windtech Engineers Private Limited
Always folllow the stop loss, which controls your heavy loss.
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PE VALUE OF THE COMPANY IS MOST IMPORTANT THING

idea posted by sarvesh trivedi Cust. Service Manager, ICICI Bank
PE OR EPS R THE IMPORTANT OF FACTOR TO JUDGE THE COMPANY ICICI PRUDENTAIL LAUNCH THE FUND NAMED DYANAMIC PE FUND WHICH INVEST IN 14 PE COMPANY & AS COMPANY REACHED 20 PE IT WILL OUT OF THE PORTFOLIO. GOOD COMANIES CAN ALSO HAVE SMALL PE VALUE .
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just believe in power of compounding and invest monthly a small amount in good rated mutual fund scheme

idea posted by GAURAV AGRAWAL MAINTENANCE MANAGER, SANDEEP METAL CRAFT

Just don't jump into the market by listening to some tips. Just pick up a good rated mutual fund SIP scheme and start investing. Have patience and start tracking your fund and you would never loss much as over a year your invests will get average out. Believe in power of compounding. As you track your fund and its portfolio you would gradually have a feel of the market.  

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be a investor not speculator

idea posted by HEMANT VERMA Marketing and Branding, NAVNEET PUBLICATION INDIA LTD.
investor never get down. so be a smart investor.
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You must know when to quit

idea posted by Suryanarayan Murthy Asst Vice President (Corporate Finance), A Hydro Power Project
During a disussion with a famous stock broker, he said "I made money with one rupee, if the scrip is one rupee more, sell it... Dont wait till it grows further.. be content. If it is one rupee less, sell it...minimise your loss" I think it is a sound advice.
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i agree.  decide the expected gain and acceptable loss and the time frame at the time of buying the script. in other words fix  the sell conditions at the time of buying itself  like

     --  sell if loss is more than 10%

     --  sell if  gain is more than 20%

     --  sell if the scrip remained with you for more than 6 months.

you may still lose but without the accompanying tension. 

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Knowledge on market

idea posted by TNARUM KUMAR OFFICER-FINANCE, Royal Sundaram

Knowledge on market

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swing with the market

idea posted by g,srinivasan Head/VP/GM-Marketing, ucobank

Are u beginner ? Just study the movement of the market behaviour over the last 6 months. Jot down the gainers & losers. Now take todays quotes. Invest not more than Rs 10,000/- to 20.000/- per scrip as per the behaviour of the stock chosen to industry to which it belongs. Wait for 6 months your return is a neat 25% 

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