Can we really make money in Share market?

Discussion in 'Money Matters' started by Vemala, Mar 8, 2014.

  1. rachaputi

    rachaputi Platinum IL'ite

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    @shashipal- Is your finger pointing me??? :)

    Waiting for the next posts.. and waiting for technical and fundamental classes from you..
     
  2. shashipal

    shashipal New IL'ite

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    Hi to all,

    My first topic..

    R u Trader or Investor??

    Who will earn good money In stock market ? either Trader( Intraday trader/Positional trader/Scalper) or Investor( Long term Investor/ Short term Investor/ Operator based stocks trader)??

    Lot of people agree or opinion Investor will earn good money. Trader will hit jackpot or complete loss.

    But as per my observation both will chance to earn good money and chances to loose all money. So here im suggesting what u have to become to earn good money in Stock market.

    First Start with 10L capital in stock market.(This is based on My portfolio. Plz take it as example). Before entering in Stock market u must have Good insurance cover and health insurance policy. These capital should not borrowed from others. And ready to face risk. (Trading in stock market always risky. But this is analytic s game. So play carefully)

    U must become trader and also Investor. then only u have chance to earn decent money and no fear of losses.

    Now im Keeping 2 lakhs from my capital for day trading.(Intraday tradig). In this trading i will choose Niftyfutures /Options and stock futures. In MCX i will trade crude and NG. So Hear i have chance to catch intraday up and down moments and have chance to make money in falling or raising market. ( What system im following how to enter and exit will explain later)

    Another 1 lakh for positional trading. Here im following hourly chart and select good moment stock futures of Nifty50 only. In my view below 100 price stocks is operated by Big operators and Options also not available to hedge. Here im not going to take positions directly. I will hedge with options when im taking positional trading.( will explain later how to hedge?). Cos of hedging Im not taking big risk and eying on huge profits. And no nightmares cos of hedging. In one night market can reverse. So never take direct positions.

    Next Im keeping 3 lakhs for Investment. Here i will use daily chart. and i will select 3-5 stocks from Nifty 50 in avg method.

    ex:Suppose if i got Buy signal in below stocks.( day time frame)
    SBIN@1600--> 10
    TCS@2150---> 10
    Tat steel @345--->50
    will enter and wait for my 4to 6% returns. If any script didnt hit my target and reversing( after getting sort signal) then that time i will buy OTM puts of next series and will wait up to next Long signal. ( puts will cover if any major loss occurred. we have to take just premium risk and some small loss. but its better to take huge loss escape with some small losses)if i got long signal after some days then i will double my qty and enter again. again will wait for my 4to 6% returns.

    Remaining 4 Lakhs i keep as buffer.. and whatever m getting money will take it out.

    If u google lot of suggest "dont become both". But me after seeing lot of my friends they all struck with losses.

    Investors are crying when market falling and adding more money to avg their stocks. And they afraid to trade in futures and options. Traders without knoweldge loosing all money. And they are limiting their profits/losses to short term only. they are not utilising chances when markets in low or high.



    " Im not a good writer. I have put whatever thoughts and my exp here. may be i forgot to ad some points. will add some more when i got time" . May be i wil get more points if u discussed on this post.

    Thanks.


    Im completely technical trader. I will follow technical Amibroker Software.
     
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  3. Vemala

    Vemala Gold IL'ite

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    @chandan..I am not mam and Am Sam.

    Currently, all the stocks are zooming because of FII's are investing in Indian share market. Next few weeks, Cement sector and IT will be rocking(IT is already down 5-7% due to Rupee is 8 month high). I am not an expert in suggesting the stocks. If you are new, start with Virtaul trading in Money control.com to understand the market.

    Dont Invest real money without knowing the basics and without expert's advice's/suggestions.

    Read Moneycontrol.com news and follow CNBC .

    In Virtual trading : Buy CMC ,TECH MAHINDRA at CMP in IT and JK cement @210.
     
    Last edited: Mar 11, 2014
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  4. Vemala

    Vemala Gold IL'ite

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    @Shashipal. Thanks for detailed explanation. Can you please throw some light on Options trading?.
     
  5. rachaputi

    rachaputi Platinum IL'ite

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    @shashipal- Thanks for the detailed explanation with realtime examples...
     
  6. Vemala

    Vemala Gold IL'ite

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    Value stocks are like pickle-they will taste better over time. Such stocks will give better profits and low risk with high safety to your principle investment . IDFC,Zee entertainment, Wheels india are some of the value stocks , which is good now.
     
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  7. preethibijoy

    preethibijoy New IL'ite

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    Hi Friends,

    I am happy to see such a thread and happy to post in this thread. Actually i also wish to start in Share marketing after hearing that this is easy to make money. I planned it as a home earning business. I used to ask permission to my husband for starting this as a business. But he told that first you need to study about it well, otherwise my money will lose!! console1

    So i start to discuss with so many people but most of them wish to start but afraid about losing money..But one day my husband's uncle, (who is near by my in-lows home and working in nationalized bank) came to home. By discussing many homely matters, i asked about share marketing to him. Then he told that he is doing small level share marketing. Then i was interested to know more about this field. He told that there are positive and negatives in share marketing.

    Positives

    1. If we know well about this field, easy way to make money by sitting for a short time before computer or making calls.
    2. Best for ladies to work from home option:goodidea:
    3. No physical work but only needs mental work (though it includes in IT field too!)
    4. Good to get an awareness about what is happening in world!!

    Negatives

    1. Don't make decisions by hearing others opinion. And you are the only one person responsible for your profit and loss whatever it is. So well study about market is must before starting share marketing.
    2. Don't do invest by seeing today rate..keep on an eye in shares that you are going to invest for minimum 2-3 weeks and make a note about it to identify whether these shares will make profit or loss.moneysmiley
    3. High risk in invests but very high returns also (not always, but sometimes!!)
    4. Not to get so much attraction in this field, it will make your pressure high all day.
    5. Don't get greedy by making profit. It is remains only for a short time, so expect loss also.
    6. Be happy with even .50 ps profit. Don't expect BIG profits and it makes your mind in depression.
    7. Last but not least don't spoil your husband's happiness, your happy married life and your sleep by thinking about shares, profit lose of money etc.:hide:

    And as a result of uncle's advice, i lost interest in share marketing. Main reason is the negatives which are very much touch in my mind and decided why should i spoil my happy life with this career/interest to make profit!!!thinkingsmiley

    So all the ladies try to make a good decision which will good for you and your future before entering to any career. All these are my opinion, i am not forcing anybody, so don't blame me for loosing your interest...

    Preethi
     
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  8. bchandra2008

    bchandra2008 Bronze IL'ite

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    Hi all

    The basic problem with an inflationary economy like that in India is that the value of money goes down; If someone keeps ones savings in the bank the inflation is more than the interest one earns.

    Hence trying to earn money in the markets is good provided you are patient and ready to learn; and able to allocate some money ; that you dont mind losing

    Rewards are always proportional to risk

    a) First learn the methods to find out stocks which may give you good returns

    b) Test the methods you learn for atleast six months- ie. do trading in theory

    c) Futures / Options trading is for people who are having a lot of experience- Chances of losses are very high - In my opinion- I will try to give examples

    d) Taking delivery and holding for the long term is investment; In my opinion trading for the short term is GAMBLING


    Below is the intraday chart of NIFTY on a particular day (Real life example) not fictitous

    See the NIFTY was falling continously from the morning; around 100 points got shaved off the NIFTY; ie. approx 300 points on the SENSEX.

    See the fun after 12:00 Noon; The NIFTY reversed direction and recouped all the losses again

    Many people would have lost their shirts alongwith their pants on this day; but the IRONY is that nobody will admit to you their losses ; nor there is any data available reg. how many people actually made money trading INTRADAY on the NIFTY on this day; so that you can arrive at a probability figure

    Commonsense says that a miniscule no. of people will be so nimble footed not to make losses in such a market; This is only one example

    [​IMG]
     
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  9. rajinitk4

    rajinitk4 IL Hall of Fame

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    Preethi i feel positives and negatives are there in everything we do. Its how we take care of the negatives that matters how successful we are. The answer to all the negatives are in your points only. If we can take care of it then we can go ahead. After all life itself is like gambling. we always move ahead with positive thoughts and when something negative happens we try to minimise the effect by taking right decisions at the right moment.
     
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  10. bchandra2008

    bchandra2008 Bronze IL'ite

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    One example of the potential to earn in the Markets

    See the chart of JUSTDIAL posted here

    All of us who use the internet should be familiar with Justdial; It is a site where one can advertise ones business

    JUSTDIAL came with an IPO in early 2013

    After listing the price remained rangebound upto Sept 2013, between Rs. 600/ and around Rs. 750/- ie. as the chartists will tell you, the scrip was having a support at Rs. 600/ and a resistance at 750/-

    Once it crossed the resistance it zoomed

    Can you see and post what is its price today (March 2014) ???

    BUT THE TRICK IS HOW TO SPOT SUCH WINNERS FROM HUNDREDS OF STOCKS???







    justdial- june 2013 to Sept 2013.JPG
     
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