Absolute Beginner Guide.

[TFL]

I am newbie in the world of trading and have been going thru the contents on this site for more than a month now(whenever I find time after my office work). Can someone pls answer the 2 basic questions(or tell me where to find answers for the same):

-How to make out if markets are in range or trending?
-How to choose stocks to trade? do we look only for volumes being traded of a particular stock? or some other factors are also there?

Thanks in advance.....

How to make out if markets are in range or trending? How to choose stocks to trade? do we look only for volumes being traded of a particular stock? or some other factors are also there?

Traders trade using their trading strategies/business plan.
How to makeout when in range or otherwise depends on the strategy/business plan using.
Means it should be your strategy, not single way but a lot of.

I advice you to first learn a working simple strategy and then move on to other things.
Better keep your eye away from fancy alf/tip sellers.
You will find your answer there.

 

[Gowri Ramakrishna]

Thanks for the usefull information.
Hope I would have signed the forms for Demat accounts from ICICI Bank

 

[Gowri Ramakrishna]

Thank God at last I did not sign the Demat forms from ICICI Demat Divisions

Regards,

GR

 

[da.stock2010]

Thank God at last I did not sign the Demat forms from ICICI Demat Divisions

Regards,

GR

Couldnot find any meaning of the post. Will u hlp?

 

[rajeev_singh717]

Hi All,

I am new in field of trading, i need little guidence.
i studied lots of things in trading but still having some basic doubts.

please help me to sort out my confusion
lets say that

Tata Motors :- 171.95 [Current price in BSE list]

how much i shoud bid for buy the Tata motrs share and
what should be the stop loss for that.

is there some standerd technique to decide the Bid value and standered loss.

please help me out..

 

[Newbie Day-Trader]

Hi All,

I am new in field of trading, i need little guidence.
i studied lots of things in trading but still having some basic doubts.

please help me to sort out my confusion
lets say that

Tata Motors :- 171.95 [Current price in BSE list]

how much i shoud bid for buy the Tata motrs share and
what should be the stop loss for that.

is there some standerd technique to decide the Bid value and standered loss.

please help me out..

Well, you should bid with a price that you think it is worth buying at, depending on how much you're expecting it to go up based on your fundamental &/or technical analyses.

For example, based on your analyses, if you expect that it'll go only as low as 165 & then go up again then you could put an order at around about that price, or some other price that you may deem fit, or if you think it's not going to go down much & only go up then you could issue a market-order & buy at the latest available price. There may be many variables at play here, from things like how long you wish to hold those shares to whether it's your fundamental or technical analyses that's prompting you to buy them, etc etc so it all depends on YOU.

I don't know if there's any "standard" technique as such but as for stop-loss, I suppose it'd depend on how much money you're willing to lose & how much money you're expecting to earn; different people have different "risk-tolerance" so ultimately it's YOU who should know & decide how much you trust your analyses & how much you're willing to risk for the expected gain.

Too many people lose money on the markets because they come to the markets with misguided notions about there being some fixed mantra for success on the markets, there may be many different kinds of traders on the market & they may employ completely different strategies & yet be just as successful.

Anyways, this website is pretty valuable resource you've found, here you'll find threads about trading-strategies to money-management to trading-psychology from many of the traders who've "been there & done that" so try to glean as much as you can.

One VERY VALUABLE advice that you'll get from many experienced members here is that you can take advice from others & learn from them & so on BUT in the LONG-RUN, it is YOU & YOUR knowledge & skill as a trader/investor that'll make you succeed so focus must at all times be on making YOURSELF a better trader/investor.

Welcome to the forum

 

[rajeev_singh717]

Well, you should bid with a price that you think it is worth buying at, depending on how much you're expecting it to go up based on your fundamental &/or technical analyses.

For example, based on your analyses, if you expect that it'll go only as low as 165 & then go up again then you could put an order at around about that price, or some other price that you may deem fit, or if you think it's not going to go down much & only go up then you could issue a market-order & buy at the latest available price. There may be many variables at play here, from things like how long you wish to hold those shares to whether it's your fundamental or technical analyses that's prompting you to buy them, etc etc so it all depends on YOU.

I don't know if there's any "standard" technique as such but as for stop-loss, I suppose it'd depend on how much money you're willing to lose & how much money you're expecting to earn; different people have different "risk-tolerance" so ultimately it's YOU who should know & decide how much you trust your analyses & how much you're willing to risk for the expected gain.

Too many people lose money on the markets because they come to the markets with misguided notions about there being some fixed mantra for success on the markets, there may be many different kinds of traders on the market & they may employ completely different strategies & yet be just as successful.

Anyways, this website is pretty valuable resource you've found, here you'll find threads about trading-strategies to money-management to trading-psychology from many of the traders who've "been there & done that" so try to glean as much as you can.

One VERY VALUABLE advice that you'll get from many experienced members here is that you can take advice from others & learn from them & so on BUT in the LONG-RUN, it is YOU & YOUR knowledge & skill as a trader/investor that'll make you succeed so focus must at all times be on making YOURSELF a better trader/investor.

Welcome to the forum

Thanks for you kind advice. I already have read lots of thread in this fourm. But really you guys are doing great and encouraging work for new trader like us. will back with few more questions..

 

[rajeev_singh717]

Hi Newbie,

Till now i havent started trading, i have done some paper trading through investopedia site.
one thing i want tell , about my interest in trading is that, i didn't like trading Because of money,
i like trading because of the,i like the analysis part of trading and it is full of thrill and in this game, u are the only boss of
yourself and have to decide every move by yourself. i just started reading all these stuff 2 months before. i am an IT engineer. i want to start trading, what i wana know, that how i should start?
one thing i know, i cant do day trading, because day trading is full time job.
please suggest, how i shall start, as a long term investor or something else.

Sorry for this big story....but what to do...You guys are so good at replying our queries,
we can't keep our queries to our self.

 

[Newbie Day-Trader]

Hi Newbie,

Till now i havent started trading, i have done some paper trading through investopedia site.
one thing i want tell , about my interest in trading is that, i didn't like trading Because of money,
i like trading because of the,i like the analysis part of trading and it is full of thrill and in this game, u are the only boss of
yourself and have to decide every move by yourself. i just started reading all these stuff 2 months before. i am an IT engineer. i want to start trading, what i wana know, that how i should start?
one thing i know, i cant do day trading, because day trading is full time job.
please suggest, how i shall start, as a long term investor or something else.

Sorry for this big story....but what to do...You guys are so good at replying our queries,
we can't keep our queries to our self.

Well, as I've said, it's a wrong question to be asking others, it's a question you should be asking YOURSELF. Look, the whole reason paper-trading is advised before entering the markets with real money is so that you'd have some idea about WHAT WORKS FOR YOU.

So if you've been paper-trading, you should consider the strategies with which you've been paper-trading, what goals you've had while doing it, is it based on fundamental or technical analysis, and of course, most importantly, have you been making a decent amount of "paper-profits"?

Paper-trading is advised because it allows us to test our trading-strategies to see if they'd be profitable or not, it also allows us to gauge our trading-style (like whether we should do day-trading, positional-trading, investing, etc), & because it's just paper-trading, no real money is risked but the experience we gather from it tells us a fair bit about ourselves if we make a simple analysis & based on that YOU should decide what you should do; afterall, it's your hard-earned money at risk so why risk it at the behest of someone else!

If you've a day-job then you should look into positional-trading or investing, there are plenty of traders here who work during the day & then do positional trading in their spare time based on their analyses & strategies, or you could go for long-term-investing if you've a low risk-tolerance but again, all of that has to be decided by YOU based on what you think will help you to extract maximum joy out of trading, be it in cash or in kind :lol: (I agree, it's a fascinating "game" to play but one that can wipe us out if we don't play it right :lol

Again, there are enough resources on this website, use them, do paper-trading, you can post your strategies on these forums if you'd wish & I'm sure many experienced members here will guide you, & once you feel that you've a trading-plan which can work in the real world then you can take a small capital (real money) & test out your strategies & see how they work in the real world & then decide in which direction you wish to move. Cheers.

 

[rajeev_singh717]

Well, as I've said, it's a wrong question to be asking others, it's a question you should be asking YOURSELF. Look, the whole reason paper-trading is advised before entering the markets with real money is so that you'd have some idea about WHAT WORKS FOR YOU.

So if you've been paper-trading, you should consider the strategies with which you've been paper-trading, what goals you've had while doing it, is it based on fundamental or technical analysis, and of course, most importantly, have you been making a decent amount of "paper-profits"?

Paper-trading is advised because it allows us to test our trading-strategies to see if they'd be profitable or not, it also allows us to gauge our trading-style (like whether we should do day-trading, positional-trading, investing, etc), & because it's just paper-trading, no real money is risked but the experience we gather from it tells us a fair bit about ourselves if we make a simple analysis & based on that YOU should decide what you should do; afterall, it's your hard-earned money at risk so why risk it at the behest of someone else!

If you've a day-job then you should look into positional-trading or investing, there are plenty of traders here who work during the day & then do positional trading in their spare time based on their analyses & strategies, or you could go for long-term-investing if you've a low risk-tolerance but again, all of that has to be decided by YOU based on what you think will help you to extract maximum joy out of trading, be it in cash or in kind :lol: (I agree, it's a fascinating "game" to play but one that can wipe us out if we don't play it right :lol

Again, there are enough resources on this website, use them, do paper-trading, you can post your strategies on these forums if you'd wish & I'm sure many experienced members here will guide you, & once you feel that you've a trading-plan which can work in the real world then you can take a small capital (real money) & test out your strategies & see how they work in the real world & then decide in which direction you wish to move. Cheers.

Thanks for your valuable suggestion, I understood, what u meant to say. I am the one who has to decide :annoyed:. Sorry for keep on disturbing, but reply according to your convenience.
Can you please suggest some good Indian site for paper trading? I have been reading lots of stuff on net, but most of which are related to US stock market. So I want to read some stuff about Indian stock market, can you suggest some links or website regarding that. And one more thing, I know the overview of what is trading strategies, but can please explain it bit more .

Take your time for replyin
Thanks for you time and patience