I am a Graduate student. I've Keen interest to trading in Stocks/Commodities/Securities. Recently, I've opened an Online Trading account in Sharekhan. Before investing, I want to get clarified some of my queries.
1. What are the timings of Trading?
2. What are the working days for Trading?
3. Can I buy and sell the Shares on the same day?
4. Can I claim exemption under Income Tax Act if I incur loss?
5. Is there any restrictions in the number of Transactions per day?
6. Besides Brokerage charges, is there any other charges that needs to be paid?
7. Do I've to enclose a KYC Compliance or MAPIN ID , if my investment exceeds above 50,000/- INR.
8. Can I buy and sell the shares on Hourly basis, if the share value depreciates or appreciates?
9. As I already mentioned that I'm a Graduate student, will I be liable to pay tax irrespective of Gain/Loss?
10. Is there any Study material available in maket to brush up the trading knowledge?
You dont actually buy shares as such but buy a contract on the assets.
You then earn or lose money on the opening and closing price of the asset.
Many people have got rich very quick from cfd's but there is also the risk of losing money quickly.
Finding a broker will help as they can advice you on stops that sell when the
asset falls below a certain amount you can afford to lose.
you can find more information at
http://www.cfd-to-cfd-trading.co.uk
I heard there are groups of people that get together to share information, buy & sell stock, etc. etc. Any idea where I can join a group in Los Angeles, CA.?
Some good places online to share info with others and learn are;
investorshub.com (my favorite)
siliconinvestor.com
ragingbull.com
many boards are devoted to trading at the above sites. you can sign up for free memberships at all 3. Ask the traders on the trading boards what software they use.
I have been a trader, investor, broker, etc. and it is rare to see anyone who is not a professional trade for a living. If you got it, then you will know pretty soon. You have to be able to set your stops, take your losses if needed.
Also read "trading for a living" "come into my trading room" both great books from Alexander Elder.
stockcharts.com
stockta.com
earnings.com (great during earnings season)
You can trade futures on the Hang Seng index from a number of brokerages, including Interactive Brokers. (You cannot trade an index directly. You have to use some tool such as a futures contract or an ETF.)
<<<I've noticed that very often the Asian Market follows the US market's previous day's results, am watching to see how often this happens. What a trading advantage it would be to be able to predict with fair accuracy what will happen in Asia and be able to trade accordingly. Any ideas?>>>
I am not sure how you expect to use US market results to improve your trading results. Every other trader in the world has the same information readily available, so any impact will be factored into the price at least as quickly as you can submit a trade order.
PS. Is this also a good way to make money or is it a waste of time and money?
Listen Max H, you shouldn't talk to your father like that or I might stop my child support payments. Tell your mom to have my kidney pies ready when I go see her or I might have to keep my pimp hand strong…. ya dig?
I wish you good luck. Don't hesitate to contact me if you have any questions.
“What do the colors mean on Time & Sales?
• • • Green = trade occurred on the Ask.
• • • Red = trade occurred on the Bid.
• • • Cyan = trade did not occur on the Bid or Ask.
• • • Yellow = trade broke either high or low for the day.”
Regarding Cyan, what kind of trade is it if it doesn’t occur on the bid or ask? I see them often with up to 4 decimal places and sometimes in large volume. What kind of trades are these and what are they called?
The yellow trades, are they the ones that have a (T) beside them i see in after hours trading? What kind of trades are these and what are they called?
How many shares (or amount of equity) of a heavily traded Fortune 500 company can you typically trade in a single transaction without getting partial fills. What about if you use Market orders vs. Limit Orders?
For instance, if you were to place an order for $100,000 of Google stock via a Market order, would you typically get the entire order filled immediately? What about if you try to sell $100,000 at Market?
What about if you do Limit orders vs. Market orders?
I would like to be able to trade very large quantities frequently during the day and would like to know if I'm going to need to account for partial fills.
Thanks so much!
(In response): Thanks, yes, I've been doing analysis for a couple of years now and know enough to be dangerous =).
The reason I mentioned the dollar amount as opposed to the number of shares is my assumption that there is a rough dollar amount to when you start reaching limits as opposed to quantities of shares.
For instance, which is more likely to get a partial fill (all other things being equal):
200 shares of a $500.00 stock
2,000 shares of a $50.00 stock
Is it better to day trader larger value stocks to reduce the chance of a partial fill or does it not matter?
Limit orders will only fill at your specified Limit price or lower (for a buy). If the stock goes up you won't get a fill.
If you don't want partial fills you can use "all or none" order. They will fill the whole order or nothing.
Another thing you should know is you don't place an order for $100,000 worth of stock. You bid for a number of shares at a specified price (limit price). Market orders you only specify number of shares.
No offense, but you should really do some reading before you start trading. It's a risky business and the more you know the better. The web is full of information, but so is a bookstore or a library.
Good luck.
Although it may not be obvious, day-trading creates certain risks for brokerages and exchanges as well as the individuals doing the trading.
The higher account requiremens reduce the risks for brokerages and exchanges. For more information see
http://www.nasd.com/web/groups/rules_regs/documents/notice_to_members/nasdw_003881.pdf
in addition we set the MACD and stochastic indicators.
un fortunally i do not remember the indicators settings,so any one know this strategy or a reference to it,please inform me.
Thanks for your help.
Any person, website, company that is going to charge you for trading tips is most likely making more money on you than they ever will following their own advice.
The whole premise behind active trading is that the market is ineffeicient and thus, short-term opportunities arise to take advantage of such innefficiencies. The problem is that once an inefficiency is identified and gets mass publicity, it ceases to work as the trading/investing community starts to discount that information into the price.
What you need is education, not tips. Its the difference between being given a fish and learning to fish. Some strategies very well may work 80-90% of the time IN SOME SCENARIOS. But nothing will work 80-90% of the time in every kind of market.
There are really 2 main kinds of strategies out there.
1.) Those that work in a trending market
2.) Those that work in a range
The only thing these paid services are SOMETIMES good for is leads. Its up to you and your education & judgment to determine if these leads are good enough to implement with your hard earned cash.
But in order to decide this, you must have some method that you are consistently using to discriminate between what makes a good and what makes a bad trade. If you are not willing to take the time to learn this, then you should simply put your money in an ETF and/or mutual fund and be happy with getting your 8-10% on average.
If you are willing to educate yourself there are a number of resources available to you.
http://www.EliteTrader.com is a thriving community of traders where you can get brokerage reviews, vendor reviews, educational material reviews, etc…well worth looking into.
http://www.WilyTrader.com is a blog where you can see first hand what it is like to be an active trader and get a feel for the different kinds of strategies that are necessary for success.
http://www.traderfeed.blogspot.com is Brett Steenbarger's website where he talks about the psychological aspects of trading
http://www.Amazon.com : and look up the following books/authors:
The Master Profit Plan
Mastering the Trade
Brett Steenbarger (Get both of his books)
Trading For a Living
In short, just be very careful about any service offering you the sky. I guarantee you that such rewards to not come without great risks, and more often than not, those risks will come to fruition way before you see a dime of those rewards.
Hope this helps