For the beginners which one will be better… Intra-day trading or Long term trading..??
But you also need to ask yourself how much could you lose.
If you ignore the risks you'll be taking you won't last too much time on the market.
About the intraday or long term trading: basically the best trading strategy is the one that fits your personality. But keep in mind that for short term trading you would need much more than Rs5000.
Good luck on your trading
Longer answer: The market, any market, always moves hard against you to take your money at the most inconvenient time. Paying a $30 "note" is much more than a commission which can be as low as $1. Gold trading is available to the whole world which means a:why ain't everbody rich? and b:can you outguess the swiss bankers, not to mention NYC?
Learn how to invest:
1. Do not chase past returns. People that buy stocks or funds because they have done well in the past are doing exactly that.
2. Do not market time. Market timing is buying based on your (or your newsletter, or your TV, or neighbor's) guess about what is going to happen in the future. Even if someone knows something, you've already missed the boat. The price already reflects what you just found out.
3. Use index funds. Over time, index funds outperform actively managed funds, mostly because they do not have those high expense ratios. Some actively managed funds do beat their index, but the ones that do usually do not do so consistently. So why gamble? Use index funds. If you want to use a few actively managed funds, make sure that the costs are very low. Vanguard has some good ones.
5. Diversify. Don't put all your eggs in one basket. Own a mix of bonds, domestic equities (large, small and mid cap funds), an international fund and perhaps a REIT (Real Estate Investment Trust) and emerging market fund. Four to six funds is all you need. Know your risk tolerance and set up an appropriate asset allocation. Rebalance as needed.
6. Consider taxes. Use the least tax efficient funds in your tax-deferred accounts and the most tax efficient funds in your taxable accounts.
Anyone have experience with good ones?
Etrade is supposed to allow you to trade on 4 or 5 stock marktes around the world – a huge advantage for a really smart investor or one that wants to focus on international stocks, but useless to most smaller investors (or most that want to focus on mutual funds – like you, maybe).
There are some other good ones. You'll find that OptionExpress is very good (never used this one myself, but they are well rated). More expensive that scottrade but margin rates are lower and maybe they are faster at filling trades.
Anyhow, thats my take on 3 of them but there are many more out there. Of course only used ones that are sipc insured, and again – I'd advise searching for more specifics on this via an online search. FYI, I think kiplingers had an areticle about this about 1-2 years ago. good article but alot can change in 2 years (and I'm not positive it was Kiplingers)
Best luck.
A fair average might be 4-8% per month, assuming you are trading successfully. Day trading needs to be treated like a job and a business.
You will lose money, and you can make money. When your returns exceed your losses consistently, you can consider yourself successful. Keep educating yourself, and learn to manage your risk/losses.
That being said, if your looking to investing something that is the "least risky" and "most predictable" you should look at a low cost fund that tracks a broad market index . Check out VFINX, Vanguards mutual fund that tracks the S&P 500. If you looking for pure predictability, try a bond fund.
The others you mention Forex, Options and Commodities, are the MOST risky and LEAST predictable. And while they can be quite profitable for a professional trader, they are not suitable for the average/rookie investor.
The disadvantage to shorting on Monday afternoon is that you can't be sure what will happen overnight and the effect on the next day's stock movement. Which makes it more risky. Personally, I only short in real time, when I can see the price action in front of me.
After hours trading may cause a price shift which may be reflected in the next days open. If you monitor AH action, you can use that to validate your assumptions.
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.