# $$--Share/MutualFund/Investment/Stocks--$$



## naveen_reloaded (Feb 21, 2008)

Hi all..  


Many users here have some kinda expirience in shares / mutual fund / investment/stocks etc...

So here is the centralised  thread where everyone can talk/share/discuss about the ongoing news/update in the world of shares...

now is the time..

lets start ... from here ...

how much do u know ?? 
how much do u not know ? 

ask here / share here / everyting regarding money...


----------



## enticer86 (Feb 21, 2008)

^^ thank u... so... lets start..


----------



## naveen_reloaded (Feb 21, 2008)

can anyone explain how mutual share work in layman terms>????

p.s please do contribute...


----------



## ::cyborg:: (Feb 22, 2008)

what is mutual shares


----------



## naveen_reloaded (Feb 22, 2008)

i think more members here know very less about these stuff..

can anone enlighten us ???


----------



## Head Banger (Feb 22, 2008)

How to invest money in share market.


----------



## naveen_reloaded (Feb 22, 2008)

i think u should be needing a demat account...

hope someone here who knows these stuff .. reply..

anyone out there ???


----------



## esumitkumar (Feb 22, 2008)

a similar thread was started some mnths back "traders thread" but it died 
for all newbies : go to *investopedia.com* and start learning thr ...after reading that ...u can ask any question.....all ur qs all welcome


----------



## enticer86 (Feb 22, 2008)

naveen_reloaded said:


> can anyone explain how mutual share work in layman terms>????
> 
> p.s please do contribute...


Well am not goin into the technical details here, but primarily a what happens is:
1. Asset Management Company(AMC) like Reliance Capital, DSP etc. pools funds from small investors like us
2. AMCs have professionals that invest after analysing the stocks on the bases such as Fundamentals and Technicals.. they normaly do NOT factor in the Sentiments.
3. Their NAV is an indicator of how the fund is doing.

Normally, MFs are supposed to be safer than dealing in the equities yourself, if you are a n00b in the market.





::cyborg:: said:


> what is mutual shares



AFAIK Mutual Shares is a Fund floated by Franklin Templeton Investments.





Head Banger said:


> How to invest money in share market.


You can do it in 3 ways now:
1. Primary Market, ie investing thru IPOs
2. Secondary Market, ie investing thru the stock exchange
3. Investing thru Mutual Funds [see above]




naveen_reloaded said:


> anyone out there ???



Main Hoon Na


----------



## Pathik (Feb 22, 2008)

esumitkumar said:


> a similar thread was started some mnths back "traders thread" but it died


+1
And It wd not be wise to enter the market now.. It is too volatile. many newbies got killed.


----------



## enticer86 (Feb 22, 2008)

^^ lets make this one sticky.. This wud be stupid fr a tech forum, but if this is done then this forum wud be a One-Stop-Solution types...


----------



## naveen_reloaded (Feb 22, 2008)

agree.. ithink today more people are investing in share / MF`s..

its like a business.. and why isthis in tech forumm well.. with online banking and trade.. i think tech plays a important base here ..

i know few offices which rely entirely on net for the share market updates each second...

anyway nice to see people sharing thier knowledge..

let this be stickied... 

ok guys here is my wuestion .. my mom invested( since i rquested her to do)
in reliance MF .. natural resource started in jan..

is it a safe bet..??? is it worth??


----------



## manistar (Feb 22, 2008)

i don know about the mutual funds as i know shares. but as of now... sbi leads in mutual funds... also check the mutual funds provided by DSP meryll.. it also depends on wat purpose u r gonna invest in mutual funds.. and wen u need the returns... most of mutual funds beefit u only in long run.. so see the past performance of any fund before investing... also look into SIP(systematic invest plan) in which u invest a fixed amount every month is best now... reliance diversified power fund is picking up now...


and there is share called reliance natural resourses it is available now at reasonable price... and its better to get that...

caution: in shares get ideas from all but decision shud be urs and don look for profit... jus try to learn from ur mistakes... read books like outllok money which provided intresting review about shares and mutual funds... look into outlookmoney.com for reference... u can also open a portfolio at moneycontrol.com.. as a trial before actually buying shares...


----------



## naveen_reloaded (Feb 22, 2008)

ok .. which has quick money with reasonable safety???

any suggestion for noobs in this field>???


----------



## victor_rambo (Feb 22, 2008)

Head Banger said:


> How to invest money in share market.


You need a common sense and a curious mind that finds the correct answers.


----------



## manistar (Feb 22, 2008)

*Introduction*
In Indian Scenario, Mutual Fund is a corporate body registered with SEBI (Securities Exchange Board of India) that pools money from individuals/corporate investors and invests the same in a variety of different financial instruments or securities such as equity shares, Government securities, Bonds, debentures etc. Mutual funds can thus be considered as financial intermediaries in the investment business that collect funds from the public and invest on behalf of the investors. 

The fund performance depends on 
1)     Type of the funds
2)     Investment objective of the fund
3)     Current financial market conditions

*The most common performance measures of the fund are *
1)     Change in Net Asset Value (NAV)
2)     Total Return
3)     Total Return with dividend reinvested at NAV 
4)     Expense Ratio
5)     Income Ratio
6)     Portfolio turnover Rate
7)     Transaction Cost
8)     Fund Size
9)     Cash Holdings
10) Borrowing by Mutual Funds







*1) Change in NAV*

The price or value of one unit of a fund. It is calculated by summing the current market values of all securities held by the fund, adding in cash and any accrued income, then subtracting liabilities and dividing the result by the number of units outstanding. 

NAV or Net Asset Value of the fund is the cumulative market value of the assets of the fund net of its liabilities. Buying and selling into funds are done on the basis of NAV-related prices.

For *NAV change in percentage terms* – 
Formula is 
*(Absolute change in NAV/ NAV at beginning) * 100*

If period cover is less or more than one year *annualized NAV change* is given as 
*(((Absolute change in NAV/ NAV at beginning)/ Months covered)*12)*100)*

Example
NAV at beginning = Rs50. NAV after 10 months =Rs60
Therefore annualized NAV change is ((((60-50)/50)/10) *12)*100 = 24%

Limitations- It does not take in to account the dividend distributed by the fund to investors in the interim period.


*2) Total Return*

This method corrects the limitations of the NAV change measure.
Formula for total return is 
*((Distributions + Change in NAV) / NAV at beginning)*100*

Example
NAV at beginning = Rs50. NAV after 1Year =Rs60. 
Interim dividend distribution Rs5 per unit.
Therefore total return at year end - ((5+ (60-50))/50)*100=30%

Limitation- This method ignores the fact the distributed dividends also get reinvested if received during the year.


*3) Total Return with dividend reinvested at NAV*

Total return with reinvestment is a measure of cumulative wealth accumulation.
Formula is
*((((1+div/ex-dNAV)*endNAV) - begin NAV)/begin NAV) *100*

Example
Investor purchased one unit at Rs50 per unit. NAV after 1Year = Rs60. Interim dividend distribution Rs5 per unit when NAV was Rs55. The distribution of Rs5 was reinvested in the fund at Rs55 per unit, giving the investor 5/55 = 0.09 unit, making his total holding 1.09 units.
Therefore the actual return at year end (65.4-50)/50 *100= 30.8%.
Note that this is higher than simple total return of 30% calculated by the previous method.

While computing these returns the following points need to be taken care of 

1)     Effect of loads – The above examples assume no load funds. In reality the investment amount will be lower if there is an entry load. Therefore the investor’s return has to be reduced by the initial load paid.
2)     Time period -While computing the returns it is imperative to use the performance data over the same time period for two different funds.


*4) Expense Ratio*

Expense Ratio is an indicator of funds efficiency and cost effectiveness .It is defined as a ratio of total expenses to average net assets of the fund.

For example funds with small corpus size will have a higher expense ratio affecting investor returns than a large corpus fund.


*5) Income Ratio*

A Fund’s Income Ratio is defined as its net investment income divided by its net assets for the period. 

The ratio is a useful measure for evaluating income–oriented funds, particularly debt funds. It is not recommended for funds that concentrate primarily on capital appreciation.


*6) Portfolio Turnover Rate *

Portfolio Turnover Rate measures the amount of buying and selling of securities done by a fund. It is defined as the lesser of asset purchased or sold divided by the fund’s net assets.

This percentage is a good indicator of the extent to which the fund is active in market deals. However high turnover rate indicates high transaction cost charged to the fund.

High turnover rate does not necessarily mean greater efficiency and for newly launched schemes that are not yet fully invested, it is not meaningful to use the turnover rate.


*7) Transaction Costs*

Transaction costs include all expenses related to trading such as brokerage commissions paid, stamp duty on transfers, registrars’ fees and custodians’ fees. Therefore transaction cost has a significant bearing on fund performance and its total return.


*8) Fund size*

Small fund are easier to maneuver and can achieve its objectives in a focused manner. Large funds gain through greater risk bearing and management capacity.


*9) Cash Holdings*

The percentage of a fund’s portfolio held in cash can be an important element in its successful performance. Large cash holding increases a fund’s liquidity, cushions it’s against decline of market prices of shares and bonds and guard against large, consistent net redemptions. But large cash reserves lower the return on the portfolio.


*10) Borrowing by Mutual Funds*

Borrowing enhances per unit earnings and this strategy holds good when interest rates are not very high. In general, in India, Mutual Funds are not allowed to borrow to increase their corpus.

SEBI Regulations allow Mutual Funds to borrow only for the purpose of meeting temporary liquidity needs for a period of not more than six months and to the extent of 20 percent of its net assets.



*Criteria for peer group comparison*

Only funds with similar characteristics can be compared .Some important criteria for fund comparison are 

*a)    **The investment objectives and risk profiles* – Two funds having the same investment objectives and risk profiles should be compared. For example it will not be appropriate to compare an equity fund with a debt fund because the former target growths and high capital gains, whereas the later is meant for risk-averse investor and focuses on regular income.

*b)    **Portfolio composition *-Portfolio composition of two funds should be similar. For example, a government securities fund can not be compared with another scheme that invests in riskier corporate debt.

*c)     **The credit quality and maturity profile - *For two debt funds credit quality as indicated by percentage of investment made in instruments with different ratings should be similar and the average maturity period should also be similar.

*d)    **Fund size -* It is advisable to keep fund size in mind and compare two funds of the same size. Big funds have greater diversification benefits such as risk sharing, while small funds are easier to manage for quick adjustments.

*e)    **Expense ratio-* Funds performance can be impacted with high and low expense ratio. 

Even for two funds with similar characteristics as specified above, there returns must be calculated on a comparable basis. Hence,

*1.     *Returns of two funds should be compared over the same periods only
*2.     *Only average annualized compound returns are comparable.
*3.     *Only after–tax returns of two different schemes should be compared.



*Evaluating the Fund Manager/Asset Management Company*

The investor must evaluate the fund manager’s track record. Good fund managers have the following characteristics. 

*1.     *Operate with a long term perspective
*2.     *Do not sacrifice investor value by excessive trading which generates high level of transaction costs.
*3.     *Turn out more consistent performance
*4.     *At least match major market indices
*5.     *Able to sustain bearish market phases better than other funds

An external credit rating agency – CRISIL – provides a FUND MANAGEMENT PRACTICE RATING on overall fund management quality and best practices followed by an Asset Management Company.

*References: information collected from newspapers articles and materials from various websites. merely its a collection and not my work.. i jus collected and presented it.. i framed this for my publication in my college magazine but i didnt publised it... sorry i cudnt remb the websites i searched that time... before 10 months*





i think my thread went much in depth.. i ll make it simple wen i gets time..


----------



## esumitkumar (Feb 22, 2008)

> ok .. which has quick money with reasonable safety???


biggest mistake nooobs do ..share mkt isnt a make quick bucks n run away mkt...try to analyze the things first and see how much money can u invest safely widout risking ur daily life .........

start reading ET and keep a eye on commentary by rediff stocks ....

and first start learning by investopedia


----------



## enticer86 (Feb 22, 2008)

naveen_reloaded said:


> ok guys here is my wuestion .. my mom invested( since i rquested her to do)
> in reliance MF .. natural resource started in jan..
> 
> is it a safe bet..??? is it worth??



I invested in that as well.. and its a gud well... See in the context of Indian Economy, any industry with a reasonable growth potential is normally a safe bet.



manistar said:


> i don know about the mutual funds as i know shares. but as of now... sbi leads in mutual funds... also check the mutual funds provided by DSP meryll.. it also depends on wat purpose u r gonna invest in mutual funds.. and wen u need the returns... most of mutual funds beefit u only in long run.. so see the past performance of any fund before investing... also look into SIP(systematic invest plan) in which u invest a fixed amount every month is best now... reliance diversified power fund is picking up now...
> 
> 
> and there is share called reliance natural resourses it is available now at reasonable price... and its better to get that...
> ...



Sorry but I have a few contradictions:

1. Reliance Nat. Res. Fund is *not* available in market... its not even listed yet!
2. One can *NOT* learn from mistakes in this field... You said you know abt shares well- how come you don't know abt the "Random Walk Theory" ??  
3. Reading books can only give the basic information, for proper trading you need to gain practical exposure which comes ONLY after sitting in front of the terminal.
4. Pls, do not confuse between and "investor" and a "trader".


naveen_reloaded said:


> ok .. which has quick money with reasonable safety???
> 
> any suggestion for noobs in this field>???



Try Infrastructure then...



esumitkumar said:


> biggest mistake nooobs do ..share mkt isnt a make quick bucks n run away mkt...try to analyze the things first and see how much money can u invest safely widout risking ur daily life .........
> 
> start reading ET and keep a eye on commentary by rediff stocks ....
> 
> and first start learning by investopedia



*+1*


----------



## naveen_reloaded (Feb 22, 2008)

now we are talking ... 
thnks manistar.... thats was great...those 30% , 24 % are profit u get if u invest on each share ??? am i right>???


----------



## victor_rambo (Feb 22, 2008)

Pathik said:


> +1
> And It wd not be wise to enter the market now.. It is too volatile. many newbies got killed.


ha ha,
BTW Pathik, did you see the investors _morcha_ ar SEBI office few days after Rel Power IPO? I had a hearty laugh! Those noobs knew nothing of stocks and were creating a fuss. They were demanding inquiry of how the share took such a beating within 1 minute of listing. I think it was covered on Zee Business!


----------



## enticer86 (Feb 22, 2008)

naveen_reloaded said:


> now we are talking ...
> thnks manistar.... thats was great...those 30% , 24 % are profit u get if u invest on each share ??? am i right>???



Thats for each Unit of the MF.


----------



## naveen_reloaded (Feb 22, 2008)

esumitkumar said:


> biggest mistake nooobs do ..share mkt isnt a make quick bucks n run away mkt...try to analyze the things first and see how much money can u invest safely widout risking ur daily life .........
> 
> start reading ET and keep a eye on commentary by rediff stocks ....
> 
> and first start learning by investopedia



thats a nice piece of advice...

sorry but my friends said investing in shares will get u lot of money than in MF`s!!!

thats y i asked..

is it really worth investing in shares .. than in some fixd bank deposit, things like that???


----------



## enticer86 (Feb 22, 2008)

naveen_reloaded said:


> thats a nice piece of advice...
> 
> sorry but my friends said investing in shares will get u lot of money than in MF`s!!!
> 
> ...



It is true but only when the markets are NOT falling.. It also depends on you investment and time horizon.


----------



## naveen_reloaded (Feb 22, 2008)

ok .. 
where cn i find news/updates regarding shares... ??

any relieable site??

and also i have seen my friend doing daily transaction/buying shares and selling them online..

i just want to know .. how could one be knowing all the value changes .. is there a software regarding this ??

another tihng on  normal investment of say 50k in MF and in share...

which will bring me profit???


----------



## enticer86 (Feb 22, 2008)

^^ see you are basically a noob, so pls do not compare with ur frnds... u'd end up losing ur initial inv.. WHy do u hav to start now when the markets are falling.

Yes, ppl have softwares only then they kno values of all shares... they get to know everythin, form volumes to values and all.. and Indicators- whether to buy or sell.

On an initial inv of 50k, you'd earn more in equities, but then theres always the risk factor.. also it depends not only on the choice of ur equities but also on many other factors.


----------



## naveen_reloaded (Feb 22, 2008)

enticer86 said:


> ^^ see you are basically a noob, so pls do not compare with ur frnds... u'd end up losing ur initial inv.. WHy do u hav to start now when the markets are falling.
> 
> Yes, ppl have softwares only then they kno values of all shares... they get to know everythin, form volumes to values and all.. and Indicators- whether to buy or sell.
> 
> On an initial inv of 50k, you'd earn more in equities, but then theres always the risk factor.. also it depends not only on the choice of ur equities but also on many other factors.




no i havent started investing anything except in MF .. reliance natural resource

i amstill learning...

my simple question...

we recently heard that shares went down.. one simple thing .. we all know that india will develop and keep developing .. ifthats the case then why does share holders sell them abruptly @ those times..( read the time the sensex went down below 15k)

why is it so .. couldnttehy just have had the shares with them.. anyhow the market will boom again..i simply dont get it >?>?


----------



## esumitkumar (Feb 22, 2008)

> we all know that india will develop and keep developing .. ifthats the case then why does share holders sell them abruptly @ those times.


thats y im repeatedly saying read investopedia....as ur q is concerned..its the sentiment of the traders ..basically thr r three types of traders ...day trader,swing trader and long term trader..

DT buys n sells within same day
swing trader 2-5 days
long term - depends on his gain/loss appetite ...

why mkt falls --> only due to sentiment of day traders ...take 9/11 situation..that happened..american economy falls ..impacts all world as export/import frm US is much so mkts crash so  everyone is trying to sell his shares ..so shares of that company r excess in mkt..so its price falls .........and BSE,NSE is determined by prices of top 30 companies shares prices ..thats y

so naveen learn n grasp easily n slowly..me too learning..dont know much abt futures and options


----------



## viruss (Feb 22, 2008)

naveen_reloaded said:


> ok ..
> where cn i find news/updates regarding shares... ??
> 
> any relieable site??
> ...



Naveen ,
the value of your share/MF can be found on various sites. for e.x rediff,moneycontrol,yahoo etc.
value of rMF is called NAV (Net Asset Value)
MF are roughly divided into two parts. Close Ended n Open ended

Now,
*Mutual Funds:-*  These are nothing but Qualified Investors who manages your money using their experience and pre-conceived notions. The main person who handles all these assets they have collected from the public is called as Manager of the Scheme. And he is responsible for the performance of the Fund Scheme. So Managers work profile and his past experience is all the matters..

These people are supposed to be collecting money from people and then investing that money into Equity or Debt or Futures and Options etc etc.......


*Asset Management Companies (AMC)*:-
  The different companies concerned with the work of collecting money from the public and then managing it are called as Asset Management Companies..
  Eg. ICICI, Reliance, HDFC etc etc

While collecting money from the Public, every Asset Management Company comes with a scheme in the market which focuses on some themes like Diversified/sector oriented/infrastructure..

  Eg. 
*Fund Name                                         Type*
  Reliance Diversified Fund                      Thematic/Sector Oriented Fund
  ICICI Prud Infra                                  Thematic/Sector Oriented Fund
  Reliance Growth                                    Diversified Fund
And the name of that theme after the name of that AMC is the Name of That Scheme which gives you primary information about the motto of that scheme.



Now coming back on the subject of Analysis, the important things to be taken into consideration are:-


*Fundamental Analysis:*

  1)      *Manager:-* Name, Work Profile, Experience, Past Record, Risk Profile etc etc.
  2)      *AMC Name:-* Which would give you some idea about the working strategy of the Fund Scheme. Means is it reliable? Is it Aggressive? Risk Profile?
  3)      *Scheme:-* The name of the scheme indicates most of the things you use in the analysis. Means is it a Thematic/ sector oriented fund or a diversified one. What is its primary focus.
  4)      *Past Record:-* If the scheme is older than 2 years then it is quite easy to analyze the scheme as we get its past record to do our Fundamental cum Technical Analysis.
  5)      * Theme/Focus:*- This is so much important one while analyzing the mutual fund. Cause if it is a Diversified Fund then it doesn’t matter much. But if it is a sector oriented fund then in which sector you are investing? Does that sector would yield in the future? And if yes then for how far it can continue giving you good returns?
  6)      *Company Holding:*- Which companies this fund is holding? Do those companies are reliable? Are those companies aggressive? Are those companies can continue yielding in the long term? How much percentage of the total assets this Mutual Fund has invested in top 5 holdings of the scheme? As much less it is it would lower your risk profile in the time of Market crash….Mutual Funds don’t switch companies in the short term or frequently. And though they have to, they try to be efficient for the next time. So company holdings can give you fair data for the sake of analysis.
  7)      *Allocation:*- Means hows the allocation of the funds has been carried out…How much of the funds has been allocated to the top five funds, top ten funds and likewise you can come to know about the risk involved…


----------



## manistar (Feb 22, 2008)

there are real ups and downs in market. but it doesnt shows v cant earn from it... v can earn from shares if v open our eyes little bit wider.. and as u said shud be curius to learn things... thats wat i said dont come in to earn... first learn the fundas.. i asked the folks to read the magazines jus to gain those fundas... and its very first staep.. this is my exp.. i watched the market for two years and only then made my first investment.. my choice is small caps.. i m investing thru my dad demat and trading acc... and got some 50k thru it in one yr... i accept i dont know much as rohan.. very eager to learn... 
i cannot accept that one cannot learn from mistakes here... it has risk.. but i remb the lines

ships are safe at harbour but they arent made for that....


----------



## viruss (Feb 22, 2008)

*Lessons To Be Learned Before  Entering Markets....*

*What is  Investment?*
The money you earn is partly spent and the rest saved  for meeting future expenses. Instead of keeping the savings idle you may like to  use savings in order to get return on it in the future. This is called  Investment.

*Why should one invest?*
One needs to  invest to:
1) earn return on your idle resources
2) generate a specified  sum of money for a specific goal in life
3) make a provision for an uncertain  future


*What are various options available for  investment?*
One may invest in:
1)Physical assets like real  estate, gold/jewellery, commodities etc. and/or
2)Financial assets such as  fixed deposits with banks, small saving instruments with post offices,  insurance/provident/pension fund etc.or
securities market related instruments  like shares, bonds,debentures etc.



*What are various  Short-term financial options available for investment?*
1)Savings  Bank Account
2)Money Market or Liquid Funds
3)Fixed Deposits with  Banks


*What are various Long-term financial options available  for investment?*
1)Post Office Savings
2)Public Provident  Fund
3)Company Fixed Deposits
4)Bonds
5)Mutual  Funds


----------



## naveen_reloaded (Feb 22, 2008)

ok here is the thing frfom wht virus told.. 

u can invest in long term and short term... wht are the benefit ??? between these two??

and wht is liquidity???

and another thing regarding MF...
dos they constanlty change the company holding or is it like fixed one ?????
once invested .. no more changes....


----------



## viruss (Feb 22, 2008)

*What is an ‘Equity’/Share?*
Total equity  capital of a company is divided into equal units of small denominations, each  called a share. For example, in a company the total equity capital of Rs  2,00,00,000 is divided into 20,00,000 units of Rs 10 each. Each such unit of Rs  10 is called a Share. Thus, the company then is said to have 20,00,000 equity  shares of Rs 10 each. The holders of such shares are members of the company and  have voting rights.What are the different kinds of issue of the  shares:
Primarily, issues can be classified as a Public, Rights or  Preferential issues(also known as private placements). While public and rights  issues involve a detailed procedure, private placements or preferential issues  are relatively simpler.


*The classification of issues is  illustrated below:*


*1)Initial Public Offering  (IPO)* is when an unlisted company makes either a fresh issue of  securities or an offer for sale of its existing securities or both for the first  time to the public. This paves way for listing and trading of the issuer’s  securities.

*2)A follow on public offering* (Further  Issue) is when an already listed company makes either a fresh issue of  securities to the public or an offer for sale to the public, through an offer  document.

*3)Rights Issue* is when a listed company which  proposes to issue fresh securities to its existing shareholders as on a record  date. The rights are normally offered in a particular ratio to the number of  securities held prior to the issue. This route is best suited for companies who  would like to raise capital without diluting stake of its existing  shareholders.


*4)A Preferential issue* is an issue of  shares or of convertible securities by listed companies to a select group of  persons under Section 81 of the Companies Act, 1956 which is neither a rights  issue nor a public issue. This is a faster way for a company to raise equity  capital.



*Lessons to be Learned before Entering  Markets:*
There are some rules i made up,from my Good And Bad  Experiences:
1) You must get early mover advantage in each game.
2) You  have to see towards risk involved as per your risk profile.
3) You must know  wen you have to get out of the market.
4) Deal always on the basis of price  sensitive fundamental and technical analysis
5) Follow the tips but not  blindly(find out which are rumors)
6) Secret of rich people is the same as  secret of comedy,which is TIMING.
7) OVERCOME UR GREEDS AND FEARS
8) Don't  get emotional while trading.(which my friend MACKINZE taught me).
9) The most  imp one...The difference between making money n creating wealth....and what would b  your preference.These are the gr88est rules as I experienced while enjoying my  successes and regretting my failures.You can have different experiences  too.


*While implementing these rules u must know basic things  about the market:*
*1)The Factors Determining The Price of the  share:*
1)company's futuristic vision(their projects,acquisitions etc  etc).
2)Company's structure..means management structure.means do they look  trustworthy.
3)News information on the companies site
4)The futuristic  requirements of the products the company is selling (if you are a long term  investor)
5)Environmental conditions,Foreign Policy and a lot of changing  things as long as commodity markets are concerned.


*2)Which  are the factors that influence the price of a stock?*
Broadly there  are two factors:
1) stock specific and
2) market  specific.

*The stock-specific factor* is related to  people’s expectations about the company,its future earnings capacity, financial  health and management, level of technology and marketing  skills.

*The market specific factor* is influenced by the  investor’s sentiment towards the stock market as a whole. This factor depends on  the environment rather than the performance of any particular company. Events  favorable to an economy, political or regulatory environment like high economic  growth,friendly budget, stable government etc. can fuel euphoria in the  investors,resulting in a boom in the market. On the other hand, unfavorable  events like war, economic crisis, communal riots, minority government etc.  depress the market irrespective of certain companies performing well. However,  the effect of market-specific factor is generally short-term. Despite ups  and downs, price of a stock in the long run gets stabilized based on the stock  specific factors. Therefore, a prudent advice to all investors is to analyze and  invest and not speculate in shares.


*3)Supply Demand  Law:*
This is the basic concept of the whole Share Market World which  determines the Value of the Share...
In economics, supply and demand describe  market relations between prospective sellers and buyers of a good.The law of  supply states that quantity supplied is related to price. It is often depicted  as directly proportional to price: the higher the price of the product, the more  the producer will supply...The law of demand is normally depicted as an inverse  relation of quantity demanded and price: the higher the price of the product,  the less the consumer will demand....Thus,from the LAWs mentioned above we can  easily determine the price of the share or at least we can predict about the  price of the share of the companies considering all the factors determining the  price of the share mentioned above...


----------



## Pathik (Feb 22, 2008)

Dude naveen read up all the info you need on some site.



enticer86 said:


> ^^ see you are basically a noob, so pls do not compare with ur frnds... u'd end up losing ur initial inv.. WHy do u hav to start now when the markets are falling.


+1


----------



## manistar (Feb 22, 2008)

hey this is the right time to invest in good stocks which are affordable now... if u can wait for one yr for good returns... u should not buy wen the stock market is in its peak... but dont put in all the 50k.. jus buy in installments... and reliance power is really good share if u can wait till 2010 for returns...

if u want to read some books in tamil about shares.. i ll prefer u alla alla panam I & II.. its for noobs


----------



## enticer86 (Feb 22, 2008)

naveen_reloaded said:


> my simple question...
> 
> we recently heard that shares went down.. one simple thing .. we all know that india will develop and keep developing .. ifthats the case then why does share holders sell them abruptly @ those times..( read the time the sensex went down below 15k)
> 
> why is it so .. couldnttehy just have had the shares with them.. anyhow the market will boom again..i simply dont get it >?>?




My simple ques.: 
Whats ur age?


----------



## ajayritik (Feb 22, 2008)

This thread is very useful. I hope will get more info from it.


----------



## multi (Feb 22, 2008)

enticer86 said:


> My simple ques.:
> Whats ur age?



might   be  below  15  ,  just  hearing  &  reading  about  only  "gains/booms"  about  stocks/MFs


----------



## enticer86 (Feb 22, 2008)

multi said:


> might   be  below  15  ,  just  hearing  &  reading  about  only  "gains/booms"  about  stocks/MFs


Yeah... and interested in Easy Money types... plus no basic info abt Indian economy and all.


----------



## sourav123 (Feb 22, 2008)

I have one question for those who know the market pretty well. Can anybody explain me what are derivatives/futures/options and how are these different from normal shares or mutual funds?


----------



## esumitkumar (Feb 25, 2008)

heres ur ans sourav : 

*www.investopedia.com/university/options/default.asp


----------



## MysticDews (Feb 25, 2008)

Nice thread... 

I wanted to know a few things about a Demat Account..
What exactly it is? Like if someone asks me to open a demat account, why should i do it? What is its benefit? What does it do? How does it work?
Or is it even meant for freshers like me? I mean stocks, shares etc in this context sound like greek and latin to me.

I am a complete n00b in case of all this, so please guide me accordingly..
Thanks in advance..

[I don't know if this is the right place to post this query or not..Guide me if i'm making a mistake..]


----------



## naveen_reloaded (Feb 25, 2008)

afaik... to opena demat acc... u should have a account in bank ( possibly icici.. coz my friend have it ) and should pay some ... i thikn soo...

may be some one will give more info in this rgard..

p.s .. how much is minimum to amount to buy stock... my friend told me that i atleast need 10k to buy considerable/profitable stock.. is it true???


----------



## manishjha18 (Feb 25, 2008)

anyway which mutual fund you should suggest i should invest with say lock in period of 1 year-
anyway i you have cash do invest in arts and gold-they always always give good return


----------



## enticer86 (Feb 26, 2008)

naveen_reloaded said:


> afaik... to opena demat acc... u should have a account in bank ( possibly icici.. coz my friend have it ) and should pay some ... i thikn soo...
> 
> may be some one will give more info in this rgard..
> 
> p.s .. how much is minimum to amount to buy stock... my friend told me that i atleast need 10k to buy considerable/profitable stock.. is it true???



Is it not necessary to link only ICICI bank.. u just need a bank account and link it with your demat account. What do u mean by this _"and should pay some ... i thikn soo..." _???
Who and what should pay?  




MysticDews said:


> Nice thread...
> 
> I wanted to know a few things about a Demat Account..
> What exactly it is? Like if someone asks me to open a demat account, why should i do it? What is its benefit? What does it do? How does it work?
> ...


Hi boss,
FYI, Demat account is just like your bank account. In your bank account you hold cash, and in your demat account you hold your securities. Every company has shares, and the listed companies give a share in ownership to general public as well, which is tradeable. Each such share that belongs to you is there in your demat account, instead of you holding it physically. Let's not go into the details, you'l end up being more confused.
So basically if you want to invest in a company, or want to speculate in the market, you need to buy shares.  For that you need a demat account.



manishjha18 said:


> anyway which mutual fund you should suggest i should invest with say lock in period of 1 year-
> anyway i you have cash do invest in arts and gold-they always always give good return



Boss there are many aspects of investment. Arts do not normally appreciate at a comparable rate. And investment in gold may not give very good returns. Plus for the purpose of earning gains, you need to sell the asset- long term capital gains in case of Jewellery and Arts are taxable. Also, from the last year, Arts are taxable under the chapter of Wealth Tax, and so is gold.
In the light of thse taxes and all, returns from equities/MFs outweigh those from other assets.
As regards your investment options, it all depends on your risk appetite.


----------



## naveen_reloaded (Feb 26, 2008)

thnks enticer...


----------



## manistar (Feb 26, 2008)

icici demat charge u 450 per year for demat... there are some free offers too... like bonanza.. but heard that they charge something for ur transactions... i mean buying and selling shares... u can either buy it online using online trading acc or buy it by calling broker in ur area(u shud deposit some amount with him so that wen u order thru phone he buys shares from that money) bonanza asked me to deposit 2000. u can use tat for buying shares.. u can transfer money between ur trading account and savings account online... fyi. trading account is the one where brokers or brokerage websites take money wen u order to buy a share..

they also give updates about share rates and options available.. and bonanza charge u 0.4% as brokerage

u don need 10k to buy the share.. with demat in hand thr is no minimum QTY for buying shares...
i think i m correct.. those who know better can help


----------



## enticer86 (Feb 26, 2008)

naveen_reloaded said:


> thnks enticer...


My pleasure 



manistar said:


> .... but heard that they charge something for ur transactions... i mean buying and selling shares... u can either buy it online using online trading acc or buy it by calling broker in ur area(u shud deposit some amount with him so that wen u order thru phone he buys shares from that money) bonanza asked me to deposit 2000. u can use tat for buying shares.. u can transfer money between ur trading account and savings account online... fyi. trading account is the one where brokers or brokerage websites take money wen u order to buy a share..
> 
> they also give updates about share rates and options available.. and bonanza charge u 0.4% as brokerage
> 
> ...



Its not necessary that trading account is used only by brokers.. DO u kno that in case of this online trading, you do NOT get the reciepts generated by depository? Otherwise you are correct.


----------



## naveen_reloaded (Feb 26, 2008)

and for the charge for demat account as manistar said is annual... 

i was right coz i remember my friend was saying this


----------



## enticer86 (Feb 26, 2008)

naveen_reloaded said:


> and for the charge for demat account as manistar said is annual...
> 
> i was right coz i remember my friend was saying this



NO ways.. it keeps changing. When Rel Power had its IPO, most DPs started giving free online trading account+ Free demat account for one year.


----------



## naveen_reloaded (Feb 26, 2008)

thats nice ....

ok tell me how much is minimum to enter shares / buy sell thing...???


----------



## enticer86 (Feb 26, 2008)

naveen_reloaded said:


> thats nice ....
> 
> ok tell me how much is minimum to enter shares / buy sell thing...???



Man why don u follow the friggin' thread?? Do you think its possible to reply to EACH OF YOUR QUESTION everytime?? Huhh??

You didn't answer MY question.. whats ur age? <15?

Ooops.. I just cheked your profile.. 22?? And so arrogant???? Dude u know what, am younger than you, and i have NOT invested in the markets, ever...


----------



## Pathik (Feb 26, 2008)

Enticer yaar bhadak mat.. not evy1 is multichannelly into all this stuff like you..


----------



## enticer86 (Feb 26, 2008)

Pathik said:


> Enticer yaar bhadak mat.. not evy1 is multichannelly into all this stuff like you..



Bhai am not gettin bhadak-ed.. lekin Naveen Uncle deserves this.


----------



## Pathik (Feb 26, 2008)

Ok Sir. BTW aapka best friend johnny kidhar hai.. aajkal dikhta nahi.. 
@naveen, The amount depends on you.. You can make a lac out of 1000 and 1000 out of a lac. 
However 8-12k should be good for starters..


----------



## naveen_reloaded (Feb 26, 2008)

ya .. do0nt worry ui am just a noob and nothing to do with age...

my friend told atleast i need 50 k to start with , which at present idont have.. all i am waiting is a check from google next month.. thats why i asked u ..

there is nothing to call me uncle ( sorry coudnt understand wht those hindi lines meant except uncle)
if i am uncle by age,,, and there are many great great grandfathers in this thread ...
and tell me one thing .. wht does age relatd to knowing things??? my proffessor doesnt know about stocks .. does it mean that he is unworthy???
wht i know in stocks shares is very minimum...i agree.. it..
and clearing my doubt even hundreds times is better than losing my money..
and if u dont have time or knowledge to reply here for a simple question.. then dont use this thread...

i created this whole thread so that many will come to know wht this whole world( shares, stocks ) mean!!!!

if u r sooo knowledgablwe then...ok to u .. not for others until u help others out..

thnks pathik...8-12 k is too much @ present for me..

ok can i start with 4 k???


----------



## Pathik (Feb 26, 2008)

You can start with any amount. But if you want greater profits then you should invest big too.


----------



## naveen_reloaded (Feb 27, 2008)

thats good.. ok tell me... one think..
wht is wise .. buy stocks from established companies ( eg : reliance/airtel icici etc) which offcourse will reslut in very less stocks for my 4k
or go for newer companies and offcourse will result in more stocks...

which is best...
???


----------



## manistar (Feb 27, 2008)

i think for ur budget of 4k its better to go mid cap or even small cap (shares<800) but don invest it right away... atleast study the market for 4 months.. indian market is driven by sentiments and it even swallow expert predictions.. so read magazines on shares.. before actually investing try making a portfolio in moneycontrol.. and learn with it... and its free


----------



## manistar (Feb 27, 2008)

View attachment 1615 this is my portfolio


----------



## enticer86 (Feb 27, 2008)

naveen_reloaded said:


> ya .. do0nt worry ui am just a noob and nothing to do with age...
> 
> my friend told atleast i need 50 k to start with , which at present idont have.. all i am waiting is a check from google next month.. thats why i asked u ..



Chek from google? What are they going to chek abt u??  



naveen_reloaded said:


> wht does age relatd to knowing things??? my proffessor doesnt know about stocks .. does it mean that he is unworthy???
> wht i know in stocks shares is very minimum...i agree.. it..
> and clearing my doubt even hundreds times is better than losing my money..
> and if u dont have time or knowledge to reply here for a simple question.. then dont use this thread...



Wel i thot u were a kiddo initially, coz anyone who is 18+ would know things, atleast the basic stuff abt Indian economy.. C'mon, you can do better, atleast know your country well man. For any profession you opt for, you atleast need to know the basics about Indian Economy, and the role you might play in that. It bothered me much coz you know quite a lot abt gadgets, why not a li'l abt your country too. [ofcourse, ignore this if u are not from India]. I didn't mean any offence.
And another thing, instead of focussing only *your question and the answer* try following the whole thread. The pros and cons of the amount, where to invest etc. have already been discussed in detail. It seems you are the one who doesn't want to spend some time, rather than me avoiding answering you.


naveen_reloaded said:


> i created this whole thread so that many will come to know wht this whole world( shares, stocks ) mean!!!!


You creating this thread doesn't mean you would be given any preference or priority. Its for everyone.



naveen_reloaded said:


> thats good.. ok tell me... one think..
> wht is wise .. buy stocks from established companies ( eg : reliance/airtel icici etc) which offcourse will reslut in very less stocks for my 4k
> or go for newer companies and offcourse will result in more stocks...
> 
> ...



One *think*, buying higher rated stocks might not *reslut* in you earning more, infact you might end up losing more. Consider the stock of Bharti Airtel, which moves from the band of Rs.1100 to 800. Theres a lot of risk involved. I'd suggest you diversify your portfolio, infact you shud analyse the markets, while investing Rs.4000 in some mutual fund.
Hint: Google abt Reliance RSF.  



manistar said:


> i think for ur budget of 4k its better to go mid cap or even small cap (shares<800) but don invest it right away... atleast study the market for 4 months.. indian market is driven by sentiments and it even swallow expert predictions.. so read magazines on shares.. before actually investing try making a portfolio in moneycontrol.. and learn with it... and its free



+1



manistar said:


> View attachment 1615 this is my portfolio



Moneycontrol??


----------



## naveen_reloaded (Feb 27, 2008)

wht were u thinking when u brokr down my prev post and worte reply to each..

really FUNNY DUDE... and the atmost comedy is check???? i meant cheque.. wht were u thinking .. google guys coming to my home and checking me ????  funny...



> Wel i thot u were a kiddo initially, coz anyone who is 18+ would know things, atleast the basic stuff abt Indian economy.. C'mon, you can do better, atleast know your country well man. For any profession you opt for, you atleast need to know the basics about Indian Economy, and the role you might play in that. It bothered me much coz you know quite a lot abt gadgets, why not a li'l abt your country too. [ofcourse, ignore this if u are not from India]. I didn't mean any offence.
> And another thing, instead of focussing only your question and the answer try following the whole thread. The pros and cons of the amount, where to invest etc. have already been discussed in detail. It seems you are the one who doesn't want to spend some time, rather than me avoiding answering you.
> Quote:



dude there are soo many out there who doesnt know wht share is or stock is or MF, .. wht economy is ... .. hope U R FROM INDIA... yes everybody should know something .. but its not a rule that it should be learnt...and everybody should know..and the fact is 90 % of my friends are not interested in knowing and dont know nothing ...does it make them a stupid/idiot group??
just tell me how a normal , say a daily wage person working in a factory would know about our economy and wht is it going to do to him .. i know its does lot to him .. but in reality .. all matters to HIM is daily wage.. hope u get the point.... ignorance is not t be made fun of... and something i dont like too.. i openly admit .. i know nothing anout share.. that doesnt mean that i am not a indian or some stupid... " known is a drop and unknown is a ocean" 


> You creating this thread doesn't mean you would be given any preference or priority. Its for everyone.



y do i ever need special preference ??? wht am i here .. waiting or some office job ?? or coffeee??? ur replies are very funny dude....
try to understand wht i meant...




> One think, buying higher rated stocks might not reslut in you earning more, infact you might end up losing more. Consider the stock of Bharti Airtel, which moves from the band of Rs.1100 to 800. Theres a lot of risk involved. I'd suggest you diversify your portfolio, infact you shud analyse the markets, while investing Rs.4000 in some mutual fund.
> Hint: Google abt Reliance RSF.



ya sure will consider it.. thnks again for that piece of advice///
again.. why is ther a risk ??? in investing in those large companies?? i dont get u ??? 
another thing is .. wit hthe price u mentioned.. i think i may get only 4 shares of bharathi.. and will it ever bring any returns??? 
u said me to invest in MF... does MF start with 4k ???


----------



## manistar (Feb 27, 2008)

ya my portfolio i made at moneycontrol, they not only show u the current price of the share but also the news abt that share.. its profit.. earnings per share... also its 52 week high and low.. 

i am goin to open a free demat account at bonanza.. i have to deposit some 2000 in that as deposit... wen v want to buy the share i can call them and ask them to buy on behalf of me from tat money... they charge me 0.4 % for the amount i m doin transaction..

for eg. wen i m buying share worth 1000.. i have to give 40 as brokerage..
same in case of selling too.. so my profit out of 1000 is 
net profit=profit-80-10%(profit) (if i am goin to sell within 1 year which is termed as short term gain)
10% of profit is tax


hey this thread too ve become fight club... i din find fault on anybody... but lets learn by sharing... wat one know..


----------



## enticer86 (Feb 27, 2008)

naveen_reloaded said:


> just tell me how a normal , say a daily wage person working in a factory would know about our economy and wht is it going to do to him .. i know its does lot to him .. but in reality .. all matters to HIM is daily wage.. hope u get the point....
> 
> y do i ever need special preference ??? wht am i here .. waiting or some office job ?? or coffeee??? ur replies are very funny dude....
> try to understand wht i meant...
> ...



See here u start again.
1. I never knew a person using thinkdigit would be of the stature to compare himself to Factory Wage Earner. So sorry, but now i understand, a factory walla won't ever know all this and hence am here to explain. No probs 

2. If my replies are so funny, then I guess you have a very very gud sense of humor, to the extent of being abnormal. Lol

3. I gave the example that shares of Airtel move in the range of 1100-800. Suppose a noob like you buys a share @ 1100 and next day the price is 800, won't you have a lot of loss as compared to a situation where a share moves from Rs. 64 to Rs. 65??  Isn't the Airtel wala share very risky?? Apply a li'l of your mind here.

4. Again, why won't it bring returns. Suppose you brought shares @ rs. 800. SO you get 5 shares. Next week the price is rs. 1100. Now (1100-800)x5 = 1500rs. Thats your profit [ignore tax]. 

5. Yes. MFs start as low as Rs. 100 thru SIPs.


----------



## manistar (Feb 28, 2008)

hey come on guys... cool down... thr is no use in fighting.. person who comes to this thread to know something abt shares ll end fed up by ur personal fights... 
and @ enticer
          person using thinkdigit doesnt have any horns.. they may be same as in case of factory worker in knowledge of shares... even i accept that i was in that situation before 1 yr.. now i got little more info abt shares..

and also abt airtel.. fall in airtel shares is temp... and they are making good profits and bright D/E ratio.. and lot of projects coming up... so i m sure the prces ll rise in next 3 months


----------



## enticer86 (Feb 28, 2008)

manistar said:


> and also abt airtel.. fall in airtel shares is temp... and they are making good profits and bright D/E ratio.. and lot of projects coming up... so i m sure the prces ll rise in next 3 months




3Yrs is a very small time horizon coz the Technicals are not that good in this case. I suggest you see the Fundamentals then, and take a longer time horizon, lets say 1 year.


----------



## manistar (Feb 28, 2008)

> 3Yrs is a very small time horizon coz the Technicals are not that good in this case. I suggest you see the Fundamentals then, and take a longer time horizon, lets say 1 year.


 
cant get u enticer... i think u meant to say 3 months is small..


----------



## naveen_reloaded (Feb 28, 2008)

*???????????????????????????????????*



enticer86 said:


> See here u start again.
> 1. I never knew a person using thinkdigit would be of the stature to compare himself to Factory Wage Earner. So sorry, but now i understand, a factory walla won't ever know all this and hence am here to explain. No probs



this just shows how much u understand..dint u say that everybody SHOULD KNOW something about economy ???  
thats why i said those things...WISE FELLA... 


> 2. If my replies are so funny, then I guess you have a very very gud sense of humor, to the extent of being abnormal. Lol



again u go ....hope u are not reading ur wn replies and laughing...   



> 3. I gave the example that shares of Airtel move in the range of 1100-800. Suppose a noob like you buys a share @ 1100 and next day the price is 800, won't you have a lot of loss as compared to a situation where a share moves from Rs. 64 to Rs. 65??  Isn't the Airtel wala share very risky?? Apply a li'l of your mind here.



if know so much and want to insult ignorant ppl  ... u may quit this thread and go and finda suitable forum of ur knowlegde GENIUS.. 
i just asked u which will be a safe bet to invest...whethere a high price share or small company ones.... 

4. Again, why won't it bring returns. Suppose you brought shares @ rs. 800. SO you get 5 shares. Next week the price is rs. 1100. Now (1100-800)x5 = 1500rs. Thats your profit [ignore tax]. 



> 5. Yes. MFs start as low as Rs. 100 thru SIPs.


wht is SIP`s 
if u can reply it without hurting other like me .. u may ans .. or leave to others...  


i think if u think u r soooooooo inteligent fella... then u better not reply here .. coz it may damage ur brain...


----------



## enticer86 (Feb 28, 2008)

manistar said:


> cant get u enticer... i think u meant to say 3 months is small..



Oops, sorry boss... I wanted to say this only, that 3 *Months * is a very small time horizon.
_
Though if invested intelligently, one can earn money even during that time, using options and futures... but then we are NOT experts in the market. Rite?_


----------



## manistar (Feb 29, 2008)

SIP meant systematic investment plan in which u invest a small amount of money evry month (may be as low as 100) and units of fund are bought evry month...
  for eg. if the unit of MF cost 20rs then evry month they ll buy 5 units for u... if the unit price rise aftr 5 months to about 25 then only 4 units ll be bought with ur 100..


----------



## naveen_reloaded (Feb 29, 2008)

^^^ thats nice .. can u tell me wht are he necesary procedure to start one and tell me which SIP is the best ??? or some suggestion ???
and also tell me with this budget will the shares gona rise or fall???


----------



## Pathik (Feb 29, 2008)

^^ If any1 would have been able to predict the moves of the sensex then he would have been a billionare by now..


----------



## enticer86 (Feb 29, 2008)

Pathik said:


> If any1 would have been able to predict the moves of the sensex then he would have been a billionare by now..



_Just a billionaire? Fir to hum sab bas dalali hi karte... _


----------



## dhan_shh (Mar 1, 2008)

I hope 'Bharti Airtel' share price will rise soon!

I'm using 'Kotak Securities' for online trading,they are providing a nice software,K.E.A.T which has a good interface while trading online.

I think we can use www.sharemarketbasics.com for basic information about stocks,MF etc.,

Nice thread,will benefit many !


----------



## naveen_reloaded (Mar 2, 2008)

thnks for info.... dhan_shh


----------



## JAK (Mar 2, 2008)

Pathik said:


> ^^ If any1 would have been able to predict the moves of the sensex then he would have been a billionare by now..


 
Hmmm...
Unlike most of u guys here i am a civil engineer(non computer guy)
i would like you to know what happened to me (i usualy donot post in digitforum)....


Well on 20/Sept/2007 I purchased 3500 Reliance natural(RNRL) shares at the rate of 57 per share including brokerage

so that totals to 3500 x 57 = 1,99,500/- say 2 Lakhs

from that day RNRL was on fire kept on making new highs. I was closely monitoring it daily and i realised it was kinda following a pattern
It reached 100+ and droped drastically to 80+
It reached 140+ and dropped drastically to 115+
It reached 198+ and dropped drastically to 165+
When it stabalised around 200+ i made a decision that as sson as RNRL makes another jump I will sell it and try my luck in Futures & Options.
Then on 09/jan/2008 it hit 245+. I immediately sold off (spot sell) every share I had at the rate of 247.30

So that totals to 3500 x 247.30 = 8,65,000/- say 8.5 lakhs(considering brokerage)

NET PROFIT : 8.5 lakhs - 2lakhs(initial investment) = 6.5 Lakhs of profit in 6months

Now the same day i tried my luck in Futures and options( CAUTION VERY RISKY) form of trading in shares

with 8.5 lakhs with me, I advance sold 6 lots(1 lot = 1788 shares, 6 x 1788 = 10,728 shares) of RNRL futures on 9/jan/2008 at the rate of 242 per share

and on 22/jan/2008(ugliest sensex crash day) i purchased 6 lots of RNRL at mere 84 Rs per share. 
To sum up
On 09/jan08 I sold 6 lots @ 242 i. e 6 x 1788 x 243 = 26,06,904 say 26 lakhs
On 22/jan08 I bght 6 lots @ 80 i.e 6 x 1788 x 84 = 9,01,152 say 9 lakhs

NET PROFIT : 26 lakhs - 9 lakhs = 17 lakhs

Now the same day (22/jan/08 ) armed with initial 8.5 lakhs + 17 lakhs = 25.50 lakhs. I bought RNRL futures 55 lots at 79 per share (57 x 1788 x 79 = 80,51,364 say 80 lakhs)

and next day i sold the 57 lots of RNRL futures at 147 per share.
To sum up
On 22/jan08 I bght 57 lots @ 79 i.e 57 x 1788 x 79 = 80,51,364 say 80 lakhs
On 23/jan08 I sold 57 lots @ 147 i.e 57 x 1788 x 147 = 1,49,81,652 say 1.5 crores or 150 lakhs.. 

NET PROFIT : 150 lakhs - 80 lakhs = 70 lakhs

To sum up
TOTAL MONEY I HAD WAS
8.5 lakhs + 17 lakhs + 70 lakhs = 95.5 lakhs..just short of 1 crore 

On 24 jan/08 i had 95.5 lakhs in my account. I have now closed my Demat account and no more trading for me...m happy with my profit..8) . the only thing bothering me is that i'l have to pay 30% of this income as Income tax.. 

and oh ya.. any suggestions which car i should offer to my DAD...??


----------



## enticer86 (Mar 2, 2008)

JAK said:


> the only thing bothering me is that i'l have to pay 30% of this income as Income tax.. [/COLOR]
> 
> and oh ya.. any suggestions which car i should offer to my DAD...??



30% tax?? You wud be liable to pay STCG tax on that.. just 10% man.
Lucky you, I must say.


----------



## Pathik (Mar 2, 2008)

Such a thing can happen only if you have awesome luck or a genius brain.
BTW remember one thing, for every 1 person who earned lots in RNRL there are 10 who lost almost everything.. 
Neways congrats..
And as you said FnO is a very risky thing.. Many people lose everything they have earned their whole life by just one wrong decision..
You were lucky enough to enter and exit at the right time..
And yea you dont have to pay 30% tax. Just 10% Short term capital gain tax.


----------



## enticer86 (Mar 2, 2008)

Anywys, this guy really made me think... 

And really Ignorance is bliss... I know so many ppl in the market who are scared of the F&O...


----------



## Pathik (Mar 2, 2008)

^^ +1
He made me think too.. I haven't had any significant profits in the market yet.. But this man has had a 4750% profit.. Too good.


----------



## naveen_reloaded (Mar 2, 2008)

JAK .. thats awesome...

and any advice for newbies... or suggestion...??? :-d


----------



## viruss (Mar 4, 2008)

Market again going down & down ................


----------



## manistar (Mar 4, 2008)

Great down... but not like the previous one.. the down is expected. bought some shares in Sail, Ranbaxy,maruthi suzuki, airtel today, Dena Bank, Cham fert today with salary, lets see.. whether it goes down or up.... anyway it ll catch up 17k again in a week


----------



## enticer86 (Mar 4, 2008)

manistar said:


> anyway it ll catch up 17k again in a week



Hope so...

Amen!


----------



## JAK (Mar 4, 2008)

naveen_reloaded said:


> JAK .. thats awesome...
> 
> and any advice for newbies... or suggestion...??? :-d


 
Hmmm... 
tips huh
1) Futures n options is tooooo risky... 
2) If you are truly interested then study the stock market carefully for about one year and then try it. keep your STOP LOSS tight and dont use your entire principal in futures.


One final tip....
Always have some amount handy and dont invest every penny in shares. That amount will be worth it when the market suddenly hits a lower circuit(- 10%) coz when ever it hits lower circuit, all brokers and day traders go short selling like mad to crash the value of shares but at 2:30pm they have to close their margin positions and cover up. So we should buy quality shares at roughly the lowest point of the day and take delivery of the shares and in less in 2 or 3 days sell the shares for 20% to 30% profit(at times 100%)...

take care and happy investing....

BEST OF LUCK...


----------



## naveen_reloaded (Mar 5, 2008)

that final tip is cooll... plaaning to invest thru sip... lets see...


----------



## manistar (Mar 5, 2008)

@JAk.. aftr some study in market i have invested in the following shares 
Sail, Ranbaxy,maruthi suzuki, airtel , Dena Bank, Cham fert. RNRL i jus want to comment on the  shares and is my portfolio split up in sectors is fine...
i aim at long term investment. i m ready to wait for 6 or more months for returns. and i don want to invest in shares priced above 800


----------



## nish_higher (Mar 5, 2008)

hey i need an urgent advice-
can anyone tell me how much will a fixed deposit of 1lakh for 15 days amount to after its maturity?
SBI rates for 15 day FD are 4.75

and secondly which is the best place to invest this apart from this for the same time period\one month at the max?


----------



## naveen_reloaded (Mar 5, 2008)

4.75 for 15 days???

thats really worth ... does any other bacnk offer mor ethan sbi ???

is ther any hidden charges???


----------



## nish_higher (Mar 6, 2008)

i don't know.i just read its 4.75 for 15-45days.lemme go to the bank and ask them about it.i dont have a SBI account..


----------



## manistar (Mar 6, 2008)

check out with icici bank and kvb. they might offer in those rates.. but never turn towards Share / mutual funds for such a short time returns..


----------



## enticer86 (Mar 6, 2008)

manistar said:


> check out with icici bank and kvb. they might offer in those rates.. but never turn towards Share / mutual funds for such a short time returns..


+1




nish_higher said:


> i don't know.i just read its 4.75 for 15-45days.lemme go to the bank and ask them about it.i dont have a SBI account..



Boss do update the thread abt that info too. 4.75 for one month comes to 57% p.a. which is much better than even the stock market, considering the safety point of view.


----------



## nish_higher (Mar 6, 2008)

yea ! 
see my post, i m in big confusion.regarding the rates-check here 
*fixeddeposit.blogspot.com/2008/01/sbi-hiked-rates-on-fixed-deposit.html

*bp0.blogger.com/_R61pJ-dz5q4/R4IEAv6y-5I/AAAAAAAAAAM/MmVYBTgGi7E/s320/sbifixeddeposit.jpg


----------



## dhan_shh (Mar 6, 2008)

It is 4.75% per annum,so roughly for 1 Lakh we'll be getting Rs.208.21 for keeping it for 16 days.


----------



## enticer86 (Mar 6, 2008)

^^
I cheked the same place shayad, and then the Official websites of ICICI, ABN AMro etc. But I feel there must be some T n C coz 4.74% p.m. is like 57p.c. p.a.

Thats pretty awesome.


----------



## nish_higher (Mar 6, 2008)

yea i nevr said per month 
i wanna know if theres some better way to invest for a month?
i still dont know if its per month or annum..
but i know interest on that page for 6 months is not per annum.coz my mom just got a new FD yesterday.but lemme confirm that


----------



## enticer86 (Mar 6, 2008)

*CORRECTION*

I just checked the SBI Interest rates. Those rates are *per annum*.
*www.sbi.co.in//viewsection.jsp?id=0,16,384,385


----------



## Pathik (Mar 6, 2008)

Lol did u guys really expect 4.75% pm.


----------



## dhan_shh (Mar 7, 2008)

Let us concentrate on SHARES:

I wish to share little information I've collected:


Like this forum,there are few Forums available from India dedicated to Share Market.They are:

*www.dstreetdirect.com/

*www.e-investing.in/

*www.traderji.com/

(Dear Friends,if you know any other similar Forums plz share !)

------------------------------------------------------------------

For Beginners and investment oriented people,you can read a nice book with all basic necessary information packed in:

"Everything You Wanted to Know About Investing" by CNBC TV18 group.

*www.moneycontrol.com/cnbctv18/cnbcbestseller/detail.php?target=investkotakbook
------------------------------------------------------------------------

We all know moneycontrol.com is a very useful site and it's FREE !

You have similar websites with all necessary information worth sharing:

*myiris.com/

*www.rupya.com/

*www.955am.com/stock-futures-trading-tips.htm

------------------------------------------------------------------
Those who are interested in 'Day Trading',you can use SMS/email tips by paying these websites:

*poweryourtrade.moneycontrol.com/plus/login/login.php

*www.dalalstreetjournal.com/PRODUCTS/PopStocks/tabid/70/Default.aspx


IF YOU NEED ONLY FREE SMS TIPS FOR DAY TRADING,YOU CAN JOIN HOTSTOCKINDIA.COM.TRY THIS:

Write New SMS---->Type Join hotstockindia and send it to 567673434.

Few more things to share.....


----------



## enticer86 (Mar 7, 2008)

^^Keep it up bro.


----------



## ksundar (Mar 7, 2008)

Those 3 Forums mentioned are really good!
Thanx for sharing,Dude !


----------



## naveen_reloaded (Mar 8, 2008)

thnks for th elinks dude...


----------



## ksundar (Mar 11, 2008)

How reliable this site? 

Is it worth paying?

*www.bookprofit.com/

*www.bookprofit.com/pop_slab.html


----------



## enticer86 (Mar 12, 2008)

^^ It MIGHT be fine and worthy, but more often thn not these sites are meant to dupe innocent ppl. 
Why not tk the help of Analysts at Orkut who post daily calls for free?


----------



## Ecko (Mar 19, 2008)

Please see this collection who wanna know about Stock market
Just Uploaded It

Download Torrent
Mirror (Torrent)
Will try yo upload it on Live SkyDrive when I Get time


----------



## naveen_reloaded (Mar 19, 2008)

Thanks for the files...will download them this weekend...am on gprs


----------



## anupam_luv (Apr 15, 2008)

dhan_shh said:


> Let us concentrate on SHARES:
> 
> I wish to share little information I've collected:
> 
> ...


 
Well In my view *www.dstreetdirect.com is the best forum I know , admins are very helpful in case ppl do not respond to the queries..... I have been a member of this forum for the last 1 year.

I think the site is run by team of brokers.... 

Also u can ask admin for any ebook u want, they will serve u if they have or arrange it and thats too free of cost...


----------



## manistar (Sep 20, 2008)

hi people... we had rocky ride last week.. anybody invested in stocks here.. how is situation now.. mine is not bad.. as i averaged with every fall. my losses are not quite big some 6 -7 % losses.. but still looking for great days ahead.. 
my formula 
if(BSE<13500 and BSE>13000) then
buy fundementally strong index stocks with 50% of ur cash reserve
elseif(BSE<13000) then
average fundementally strong index stocks with remaining 50% of ur cash reserve
elseif(BSE>15000 and BSE<17000)
sell 50% of your stocks
elseif(BSE>17000)
sell remining 50% of your stocks and wait for downfall
else 
hold


----------



## thewisecrab (Sep 20, 2008)

Thank you for bringing up a really good 5 month old thread that suddenly died   (No sarcasm intended)
This is why bumping is good


----------

