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Hello every one i am sandeep (24 ,MBA) want to invest in share market.?

Trading Systems and Market Timing Models

Hello every one i am sandeep (24 ,MBA) want to invest in share market.?

Postby lavan58 » Tue Nov 20, 2012 5:44 pm

i dnt have ny experience in stock market kindly help me out hw to start trading in stock market nd also suggest me the benifits nd dis advantages of stock market.as a beginner hw could i take the risk?.
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Hello every one i am sandeep (24 ,MBA) want to invest in share market.?

Postby niichaad » Tue Nov 20, 2012 5:48 pm

If you have an MBA you really should have a solid understanding of the stock market and investing already, if you paid any attention at all to the lectures in that program. However, here are some of the articles and a book which I recommend to beginning investors:

http://investing101.net/home.aspx
http://beginnersinvest.about.com/cs/newinvestors/a/011201a.htm
http://www.amazon.com/Investing-101-Bloomberg-Kathy-Kristof/dp/1576603075
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Hello every one i am sandeep (24 ,MBA) want to invest in share market.?

Postby delsy89 » Tue Nov 20, 2012 6:27 pm

Trading in the stock market entails risks greater than investing in other securities, but they also offer some of the highest potential returns. As a shareholder in a company, you are not contractually obligated to any returns/interest that a bondholder might be, so the likelihood of seeing a loss in you investment is higher relative to bonds.

Pros of owning stock (this list is not obviously not exhaustive):
Higher historical returns than bonds (although bonds can see higher returns during stagnant economic times such as today)
One share of stock is generally cheaper than one bond, making it easier for smaller investments
Stocks are generally fairly liquid, making it easier to back out of an investment and turn it into cash

Cons of owning stock (not exhaustive list):
Higher risk - if the market falls substantially tomorrow you stand to lose a fair amount compared to bonds, where your return will remain fairly constant in the short term.
If the firm you invest in goes under, you as an owner of common stock are the last to receive anything from the dismantling of a company. (Senior debt -> junior debt -> preferred stock -> common stock)

It is a very good idea to research each company extensively that you wish to buy shares in. Do not exclusively look at financial reports as they can be limited and tell the incomplete story of a company.

As a young beginner, you are in a much better position to take the risk of the stock market than someone facing retirement. The general rule of thumb is that the percent of your portfolio that should be in equities is 100 minus your age (some people like 120 minus your age). Ultimately though, the best way to minimize risk is by extensively researching companies that you invest in and to DIVERSIFY, DIVERSIFY, DIVERSIFY.

Through diversification, your portfolio will not be entirely taken out by the failure of one or more company because in theory you'll have many others seeing gains to balance it out. This strategy is best shown by index mutual funds that investment in hundreds of companies at once, and they have the highest returns per unit of risk. But if you're looking to be building your own portfolio, I can't stress enough the importance of balancing your investments across many industries and companies.

Finally, there are numerous trading websites that cater towards varying degrees of expertise in trading equities, which in your case are stocks. E-Trade, Scottrade, etc. are some of the more well known sites although they are not the most sophisticated sites, but that will play well in your case.
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Hello every one i am sandeep (24 ,MBA) want to invest in share market.?

Postby thijs55 » Tue Nov 20, 2012 6:33 pm

To keep it simple, buy stock that below the Analyst target price and sell it when it go over it. For instance, for Microsoft the analyst target is $37 and the current price is ranging between $28 - $28.3. Intel Corp (INTC) Analyst target price is $26 and the current price is $21.95. Apache Corporation (APA) Analyst target price $116, current price only $82.32. (*Current price is based on the day 10/26/2012 )

But, please beware that Analyst do revise their price target based on new development and basically you will not know when they are going to revise it down and revise it up. For many cases, the prices declining or advances first before the analyst revise it and the day when they really announced it will be another action in the and if the market has factored in the revision the prices will reverse.

In order to mitigate this problems, it is better to have an understanding of the technical Analysis. The following is the technical Analysis, I will start with the technical Indicator that easy to understand such as :

Slow stochastic oscillators or SS, With this indicator you would be able to guess whether or not the particular stocks is over sold or over bought. You want to buy or enter the stock below the most recent analyst target and when the stock is oversold. that is the ideal entrance. but you might want to restrict yourself to buy the stock when it is in the over bought territory. Because the correction can take a long time than you expect and might shaking your faith in that stock and cut lost.
RSI is a trend indicator, means that it tell you whether or not the current trend will continue or it is currently in troubled or whether or not the current pullback/advances is almost done or will continue. I use this to compliment the SSD Indicator.
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Hello every one i am sandeep (24 ,MBA) want to invest in share market.?

Postby giovani » Tue Nov 20, 2012 6:34 pm

I agree with the first guy. If you have an MBA and you have to come here to ask "how to invest in share market", then you should probably tear up your MBA and go and work as a janitor.

Could you please do me the service of letting us all know what university you graduated from, so that we I can avoid like the plague graduates from your alma mater.

What good are your credentials, if you don't have any analytic, problem solving, or just plain can-do capacities?

Jeez...
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