The Stock Market thread

[KunjanPSD]

Jokes apart, you just gotta do your research. Just start googling, see if a company is doing good or bad, which company is making the news and why it is making the news. If you like any then see if it's stock is overvalued or not, how the fundamentals are, you can use many platforms like Trading view, smallcase for it.

Start with Zerodha varsity for learning about concepts.

You just gotta spend time, it's all about experience.

[Bird Bird Bird]

4 minutes ago, adity said:

Buy high, Sell low, Always HODL. 

Mr. Manu Cobra. 

 

 

[hope]

17 minutes ago, adity said:

Buy high, Sell low, Always HODL. 

Hodl means?

[LordSpymaster]

Hodl means?

Means Hold.

[mohit9206]

3 minutes ago, hope said:

Hodl means?

HODOR!

[hope]

Bought 5 ongc shares and sold it today only.

 

0.75 loss acquired.

 

By this logic, i have to buy 100 shares to make a mere 150rs profit or am i missing something here?

 

Or i should have waited for a month to sell these shares?

 

Feels like a riche rich game only  to me.

[North]

On 12/22/2020 at 9:58 PM, adity said:

2 rules

1. Stonks only go up

2. Buy the f**king dip

 

how does one get started? Do I just google "buy stocks"?

There has to be some sort of online broker thing that lets me manage my investment portfolio?

All I know is index funds are relatively safer? Essentially you spread the money across the entire market, so individual company dips do not affect you as much?

I think there's something called the S&P 500, a list of 500 companies where you can do this kind of thing?

 

I don't actually know how to do this, I've just watched Wolf of Wall Street too many times and I now want a fast car and a hot girl in the passenger's seat :/ 

Edited December 28, 2020 by Chirag2001

[KunjanPSD]

21 minutes ago, hope said:

Bought 5 ongc shares and sold it today only.

 

0.75 loss acquired.

 

By this logic, i have to buy 100 shares to make a mere 150rs profit or am i missing something here?

 

Or i should have waited for a month to sell these shares?

 

Feels like a riche rich game only  to me.

Did you buy and sell on the same day?

So there must have been some order fees for intraday in addition to whatever you lost on the stock price.

Even for non-intraday orders there is a demat debit fee.

 

This type of trading which is based on capturing very few points or even sub-one point is known as scalping and this is a high capital, high volume game.

 

You should have did some research and looked for a company which might give upside. And in case of ONGC, if the stock wasn't just plummeting or you didn't invest the money in some other, better stock, you should have waited.

 

In investing, patience is a requirement for being successful.

Edited December 28, 2020 by kunjanp

[KunjanPSD]

3 minutes ago, Chirag2001 said:

 

how does one get started? Do I just google "buy stocks"?

There has to be some sort of online broker thing that lets me manage my investment portfolio?

 

I don't actually know how to do this, I've just watched Wolf of Wall Street too many times and I now want a fast car and a hot girl in the passenger's seat :/ 

Google "Open Zerodha Demat"

 

Also Wolf of the Wall Street was a whole different ballgame, lol.

Edited December 28, 2020 by kunjanp

[North]

2 minutes ago, kunjanp said:

Google "Open Zerodha Demat"

Okay. 

Do I need some kind of special bank account, or some sort of age requirement?

 

Or can its as simple as creating an email account, put some money and lets play?

Also, can you comment on my edit about the index funds thing? I added it to my post above......

[KunjanPSD]

12 minutes ago, Chirag2001 said:

Okay. 

Do I need some kind of special bank account, or some sort of age requirement?

 

Or can its as simple as creating an email account, put some money and lets play?

Also, can you comment on my edit about the index funds thing? I added it to my post above......

You just need a bank account and you need to be above 18. Then just upload the documents, pay the fee (I think it's 300) and wait for it to be activated and then you are good to go.

 

And there are different types of index funds. Some are for growth, some for dividends, some are concentrated in one/few sectors, some are diversified. Some take on more risks than the others.

Basically, it's a great way to put your money into an instrument which can provide higher returns than vanilla FDs without taking on much risk and investing more time. But you still have to invest a little time to filter through various Index funds and MFs, looking at their costs, underlying companies and historical returns etc.

You invest in these via Zerodha as well.

 

Edited December 28, 2020 by kunjanp

[North]

2 minutes ago, kunjanp said:

You just need a bank account and you need to be above 18. Then just upload the documents, pay the fee (I think it's 300) and wait for it to be activated and then you are good to go.

 

And there are different types of index funds. Some are for growth, some for dividends, some are concentrated in one/few sectors, some are diversified. Some take on more risks than the others.

Basically, it's a great way to put your money into an instrument which can provide higher returns than vanilla FDs without taking on much risk and investing more time. But you still have to invest a little time to filter through various Index funds and MFs, looking at their costs, underlying companies and historical returns etc.

You invest in these via Zerodha as well.

 

 

Sounds good. I just paid the 300, now I'm on the document stage. 
I'll figure how to do this, I'll read a book or two maybe.

 

But I'm stuck now, cuz it told me my Aadhaar needs to be linked to my mobile number  

I guess I'll have to do that first, and that itself will take a good bit of time. 

[KunjanPSD]

10 minutes ago, Chirag2001 said:

 

Sounds good. I just paid the 300, now I'm on the document stage. 
I'll figure how to do this, I'll read a book or two maybe.

 

But I'm stuck now, cuz it told me my Aadhaar needs to be linked to my mobile number  

I guess I'll have to do that first, and that itself will take a good bit of time. 

Honestly, reading a book won't help you much at start. This is much more of an experience, hands on thing.

I will suggest to start with Zerodha Varsity, don't look at chart analysis, look for fundamental analysis. 

Search how to evaluate companies, you will get to know about tons of metrics, Investopedia is a great source for that.

 

Then just search for some stock tips from Economic times etc. They generally give their logic behind the call as well and try to make sense of it.

 

Once you have done that for a few stocks, look for companies stock which are making the news, find out why they are making the news, look at their fundamentals and metrics. Throw in some technical analysis as well, free account on Trading view/small case will provide you with that. Alternatively you can also look for stable companies with stead growth or CAGR.

 

Make your pick and invest. Start with small capital, hold the stocks for a while, see how it pans out. Make adjustments.

 

Do same for Index and MFs.

 

I will recommend to follow some good twitter handles also. 

This will provide you much more knowledge and experience for starting out. Then you can get to reading some books.

 

And I am not really sure if mobile number linked to Aadhar is necessary, maybe now it is. But I guess you gotta do it sooner than later.

 

Edited December 28, 2020 by kunjanp

[North]

1 minute ago, kunjanp said:

And I am not really sure if mobile number linked to Aadhar is necessary, maybe now it is. But I guess you gotta do it sooner than later.

 

Yes, can't proceed without it. This is gonna be annoying.

 

I haven't done this before, but I've read a few books and watched a lot of youtube, so I have a fair amount of idea on how to best approach this. 

Will keep the investments low initially, so that I can get some practice before I take a plunge or two. 

 

I already put in my PAN number, I wish they didn't have this compulsion. Things like this aadhaar business take a good few days to sort......

[KnackChap]

1 hour ago, hope said:

Bought 5 ongc shares and sold it today only.

 

0.75 loss acquired.

 

By this logic, i have to buy 100 shares to make a mere 150rs profit or am i missing something here?

 

Or i should have waited for a month to sell these shares?

 

Feels like a riche rich game only  to me.

 

Don't do intraday (buying and selling in 1 day) unless you're used to the markets which includes knowing the software and how to set limit orders, stop loss, targets etc. 

 

And you can make good money out of nothing in intraday if you give it time. You get 10X leverage so with 2-3k you can trade worth 20-30k but you must settle the trade the same day whether you're making money or not. 

[KnackChap]

1 hour ago, Chirag2001 said:

 

 

 

I haven't done this before, but I've read a few books and watched a lot of youtube, so I have a fair amount of idea on how to best approach this. 

Will keep the investments low initially, so that I can get some practice before I take a plunge or two. 

 

 

 

Paper trade using fake money on trading view and start with nothing more than 5k in your ac if you're doing intraday. Don't do more and 2 trades per day and always set a stoploss to limit your loss. 

[Bird Bird Bird]

I'll be real here. Paper trading and real trading are wildly different. 

I used to paper trade like a pro, but when your money's on the line, your heart races, specially when doing FnO. 

That's when I realised paper trades are useless. You'll not learn unless you make mistakes. You'll earn some, lose some, and slowly learn along the way. 

Edited December 28, 2020 by Bird Bird Bird

[KunjanPSD]

4 hours ago, KnackChap said:

 

Don't do intraday (buying and selling in 1 day) unless you're used to the markets which includes knowing the software and how to set limit orders, stop loss, targets etc. 

 

And you can make good money out of nothing in intraday if you give it time. You get 10X leverage so with 2-3k you can trade worth 20-30k but you must settle the trade the same day whether you're making money or not. 

And you can lose all of your capital just by incurring a minimal loss while using leverage.

 

Just wanted to put that disclaimer.

 

Also the leverages will eventually (Sept '21) be capped at around 5x across segments. 

[KunjanPSD]

3 hours ago, Bird Bird Bird said:

I'll be real here. Paper trading and real trading are wildly different. 

I used to paper trade like a pro, but when your money's on the line, your heart races, specially when doing FnO. 

That's when I realised paper trades are useless. You'll not learn unless you make mistakes. You'll earn some, lose some, and slowly learn along the way. 

Exactly, real experience goes a long way. That's why I suggest to start with small capital and do real trading. Even if you incur some loss and learn from it. That's the price you gotta pay to the market.

[North]

4 hours ago, KnackChap said:

 

Paper trade using fake money on trading view and start with nothing more than 5k in your ac if you're doing intraday. Don't do more and 2 trades per day and always set a stoploss to limit your loss. 

 

Don't plan on intraday. Will incur fees for no reason. I plan to dump a bit of cash and sit on it for a bit.

Will put majority into index funds, and the rest into more big name companies and see how it does over a 6-month period.

No intentions of trying to "make quick cash overnight". Depending on the performance, and further knowledge and market analysis, will update my investment portfolio.

 

I can't invest large sums anyway, I'm a kid, I have to ask my parents for the money to do this lol. They'll give me 10K, no questions asked, as the initial sum to be invested.