Wednesday, March 17, 2010

How did i start investing

It was December26th 2009,the date on which i got my demat account from SHAREKHAN. The reason i opted for share khan is because it's one of the oldest and provides a good online portal. I was interested in investing from techkriti 2009 onwards when i played online share game. i didn't win any prize as such but it created an interest in me,which drew me toward investing in equity. i did some ground work which is a must before investing. I read some articles on net which were very helpful in knowing about eqity,derivatives. Equity or any investment which is treated as the one with risk and derivatives can be used to mitigate the risk.
I started with a very small amount of 10,000. and gained on few of my initial transactions,lost on a few transactions.
the things which i have learned till now..
-Invest when the market is at low.(Go bullish when the market is bearish)
-Withdraw when the market start consolidating.
-Stay for long if you want to earn more returns.
-Always know details of the company in which u are investing and decide the criteria for exit.
-be careful if u are going for intraday ,because u need to earn atleast brokarage.
-before taking delivery plan for which time u like to stay invested? what if u don't get the expected returns? How much loss can u bear from the investment?Have answers for all such questions.

Don't
Don't invest in one company.(plan to diversify your investments)
Don't invest more than 75% of ur investments in equities.
Better go for good mutual funds if you don't have knowledge of equities.

That's for now..Put more when i learn more from my good or bad buys,sells,