Absolute Beginner Guide.

[TFL]

Hi Hari

Thanks for your reply. I have 1 more doubt. What is the difference in trading in BSE, NSE, midcaps, smallcaps and other indices. I mean how does the index we are trading in matter? In terms of capital required, returns, risks etc?

BSE and NSE are Stock Exchanges. We are trading in Stock Exchanges.
LARGECAP, MIDCAPS, SMALLCAPS are different group/categories of companies.

We cannot trade NSE or BSE, we are trading in NSE or BSE.

Capital Required depends on the instrument and the quantity your are trading.
Returns, Risks depends on your Ability as a Trader, Trading Setup/Plan, Money Management, etc.

I you ask specific doubts, I can explain in particular.

 

[telvinanto]

ur had done a great work here gr8 buddy keep it up :clapping:

 

[bharadwaj05]

Re: .:|Absolute Beginner Guide for Day Trading|:.

Hi, Very good initiative!!!! The link you have poted here namely "General Guide to Day Trading. " is for this post itself!!!

I have Step by Step Learning .
The link : http://www.megaupload.com/?d=ONMLWW41

An absolute beginners guide to Candlesticks:
http://www.megaupload.com/?d=UE7KRUAP

All the best , look forward to gain some insight on Day trading!!!

****************************

Dear Hari/Karnani,

First of all thanks to both of you for your inputs. This blog is immensely helpful for a newcomer like me..I have gone through many of the posts and found them very useful. Have a few very basic questions in mind..may sound silly to many as this thread is already an established and old one..request you to pls guide me..

1. Step by Step Learning .
The link : http://www.megaupload.com/?d=ONMLWW41

This doesnt seem to work..Can you pls post the link once again?

2. Choice of Bank in opening a demat account & Broker ..Does it have any plus or minus in trading activities? Many ppl have different opinion..Some say Sharekhan is good..some ppl prefer ICICIdirect etc..the list is long..! Which one is better considering a beginner like me who would definitely need some kind of guidance in the initial stage?

3. Once one opens a Demat account ..Can this be changed to any other?

4. There are some portfolio tracker softwares in moneycontrol or rediff etc. I found money control site good..but cost of subscription high..Can you pls suggest any other options which can give good tips/suggestion for sharetrading?

5. Whats is the role of a broker in trading business?How broker charge commission? Saw some advertisements in the web , where some brokers even advertise by saying that brokerage is waived off..Is it safe to contact such brokers?


Some of these questions must be very basic but very crucial informations for me to start my trading activities. Hari, has initiated a very good thread indeed which can always provide some help to a beginner.

Would be really glad if anybody clears my doubts..

Thanks a ton in advance,

Bharadwaj

 

[padmasani]

First of all I would like to thank everyone , for initiating this move for helping novice like us on trading.

I just opened a new dmat account with SBI bank.

Well , I would be very thankful if some one could help me with resolving my queries.


a. What is the way to work with day to day trading, i.e. where I can buy and sell them on daily basis.

b. I checked with margin option but it seems, it does not let me trade with BSE exchange.

 

[TFL]

Re: .:|Absolute Beginner Guide for Day Trading|:.

****************************

Dear Hari/Karnani,

First of all thanks to both of you for your inputs. This blog is immensely helpful for a newcomer like me..I have gone through many of the posts and found them very useful. Have a few very basic questions in mind..may sound silly to many as this thread is already an established and old one..request you to pls guide me..

1. Step by Step Learning .
The link : http://www.megaupload.com/?d=ONMLWW41

This doesnt seem to work..Can you pls post the link once again?

2. Choice of Bank in opening a demat account & Broker ..Does it have any plus or minus in trading activities? Many ppl have different opinion..Some say Sharekhan is good..some ppl prefer ICICIdirect etc..the list is long..! Which one is better considering a beginner like me who would definitely need some kind of guidance in the initial stage?

3. Once one opens a Demat account ..Can this be changed to any other?

4. There are some portfolio tracker softwares in moneycontrol or rediff etc. I found money control site good..but cost of subscription high..Can you pls suggest any other options which can give good tips/suggestion for sharetrading?

5. Whats is the role of a broker in trading business?How broker charge commission? Saw some advertisements in the web , where some brokers even advertise by saying that brokerage is waived off..Is it safe to contact such brokers?


Some of these questions must be very basic but very crucial informations for me to start my trading activities. Hari, has initiated a very good thread indeed which can always provide some help to a beginner.

Would be really glad if anybody clears my doubts..

Thanks a ton in advance,

Bharadwaj

Bharadwaj,

1. Step by Step Learning .
The link : http://www.megaupload.com/?d=ONMLWW41

The link is working perfectly.

2. Choice of Bank in opening a demat account & Broker ..Does it have any plus or minus in trading activities? Many ppl have different opinion..Some say Sharekhan is good..some ppl prefer ICICIdirect etc..the list is long..! Which one is better considering a beginner like me who would definitely need some kind of guidance in the initial stage?

Any bank with a good broker will work, but the issue is with the broker services and not bank's. Which broker you need will depend on the type of trader/investor you are. You may also ask them for demo or demo account.

3. Once one opens a Demat account ..Can this be changed to any other?

Yes you can.

4. There are some portfolio tracker softwares in moneycontrol or rediff etc. I found money control site good..but cost of subscription high..Can you pls suggest any other options which can give good tips/suggestion for sharetrading?

Its not like that, Portfolio tracking services in moneycontrol is free to use.
I will not recommend trading from tips/suggestion it will at most times only help you to empty your trading account. SO be cautions if you are going with a tips provider.

5. Whats is the role of a broker in trading business?How broker charge commission? Saw some advertisements in the web , where some brokers even advertise by saying that brokerage is waived off..Is it safe to contact such brokers?

The role of the broker is to facilitate trading to their clients. They charge fees(Brokerage, AMC, etc.). Usually the brokerage(commission) is charged in % of your trading volume or a fixed amount...varies with each broker. These charges are also negotiable with many brokers.
See some for example.
http://www.geojitbnpparibas.com/Equity/EquityInner.aspx?id=168
http://www.interactivebrokers.co.in/en/accounts/fees/commission.php?ib_entity=in

It will be good to go with a broker you know/trust rather than going with advertised offers. Sometimes brokers firms may offer such things.

Would be really glad if anybody clears my doubts..

I love answering...

Best wishes...

 

[TFL]

Re: .:|Absolute Beginner Guide for Day Trading|:.

Bharadwaj,

The link is working perfectly.

Any bank with a good broker will work, but the issue is with the broker services and not bank's. Which broker you need will depend on the type of trader/investor you are. You may also ask them for demo or demo account.



Yes you can.


Its not like that, Portfolio tracking services in moneycontrol is free to use.
I will not recommend trading from tips/suggestion it will at most times only help you to empty your trading account. SO be cautions if you are going with a tips provider.


The role of the broker is to facilitate trading to their clients. They charge fees(Brokerage, AMC, etc.). Usually the brokerage(commission) is charged in % of your trading volume or a fixed amount...varies with each broker. These charges are also negotiable with many brokers.
See some for example.
http://www.geojitbnpparibas.com/Equity/EquityInner.aspx?id=168
http://www.interactivebrokers.co.in/en/accounts/fees/commission.php?ib_entity=in

It will be good to go with a broker you know/trust rather than going with advertised offers. Sometimes brokers firms may offer such things.


I love answering...

Best wishes...

Call your broker for support.
Yes, then you need to trade in NSE for Margin.
I have no account with them so not able to help you.

 

[bharadwaj05]

Re: .:|Absolute Beginner Guide for Day Trading|:.

Dear Hari,

Many thanks for your reply. As I am a complete novice in this field, could you pls suggest me a good broker who can offer some guidance in share trading?

regards,

Bharadwaj

 

[mogembo]

Hi,
I just talked to one sub-broker and he told me that If I open an a/c with 50000 margin money then he wont charge any AMC for first year. I need to know what exactly is this margin money he is talking about before discussing it further with him. How does it benefit him to have more margin money in my a/c ??

Regards.

 

[TFL]

Re: .:|Absolute Beginner Guide for Day Trading|:.

Dear Hari,

Many thanks for your reply. As I am a complete novice in this field, could you pls suggest me a good broker who can offer some guidance in share trading?

regards,

Bharadwaj

Bharadwaj,

I am not sure how it will turn, if the broker is guiding you.
I cannot point out any broker for the same reason.
So, I'm advising you to learn from the internet and ask doubts here in forums.
http://investopedia.com/ will be a great guide for you to start or google search with you to help.

 

[TFL]

Re: .:|Absolute Beginner Guide for Day Trading|:.

Hi,
I just talked to one sub-broker and he told me that If I open an a/c with 50000 margin money then he wont charge any AMC for first year. I need to know what exactly is this margin money he is talking about before discussing it further with him. How does it benefit him to have more margin money in my a/c ??

Regards.

mogembo,

Margin Money is the money your are transferring to your trading account opened with your broker for trading. You can trade from this margin money after the account got open. Normally brokers give offers for opening account with higher margin money, you can also open without margin money then you can fund the account later. The benefit of this to broker is like...if you have more money in your trading account(Margin Money) the you will trade more and so the broker will get more brokerage, that's all.

Note: The AMC (Annual Maintenance Charges) usually in the range of below 500 so I think it will not be a big deal. Ask him what's the AMC they charge for you. Your bargaining should be for reducing the brokerage not the AMC.