CONSOLIDATED GOLDEN RULES

1. INVEST 10% OF YOUR SAVINGS ONLY

2. BUY IN PART

3. DIVERSIFY YOUR INVESTMENT

GOLDEN RULES

GOLDEN RULES IN STOCK MARKET

WHAT IS GOLDEN RULES? GOLD IS ONE OF THE PRECIOUS METALS AND IT VALUE INCREASES FROM TIME TO TIME .SAME WAY GOLDEN RULES ALSO VERY VERY PRECIOUS IT’S VALUE IS VERY MUCH WORTH THAN GOLD FOR INVESTOR.

WHO ARE YOU?
IN MARKET WHO ARE YOU MEANS FINANCIAL STATUS. WHICH MEANS YOUR TOLERANCE LEVEL.STOCK MARKET IS THE BEST & HIGHEST INVESTMENT TOOL BUT LIKE BOTH ENDED KNIFE IT ALSO HAVE ANOTHER FACE WHICH WORST LOSS MAKING TOOL.
SO BEFORE YOU KEEP YOUR STEP IN THE STOCK MARKET DECIDE YOUR TOLERANCE LEVEL (YOUR CAPACITY TO ACCEPT LOSS).
GOLDEN RULE 1 SIMILAR TO THIS TOPIC
GOLDEN RULES 1: IT COMMON TO ALL KIND OF INVESTOR WHETHER YOU INVEST 100 RS OR 100 CORERS,
GOLDEN RULE 1
ALWAYS INVEST 10% OF YOUR SAVINGS IN STOCK MARKET
IT’S VERY CLEAR THAT NEVER OVER INVEST. JUST BE A COMFORTABLE INVESTOR BY GOING WITH RULE NO-1.

EXTRAS:
I SAW PEOPLE WHO INVESTED IN STOCK MARKET BY BORROWING MONEY FROM OTHERS, PERSONAL LOANS, JEWEL LOANS AND AS PEAK
EVEN SOME PEOPLE SELLING THEIR PROPERTY FOR THIS. BUT 99% PEOPLE END UP RUINED. THIS UNACCEPTABLE BUT FACT ABOUT MARKET.
THESE PEOPLE WILL BE SHORT TERM MINDED WHICH ENDS UP IN DISASTER .


WHEN TO BUY?
NEVER BUY AT HIGH PRICE AND SELL AT LOW PRICE. THIS CAN BE ALSO CLEARLY MENTIONED AS DON’T BUY WHEN THE MARKET IS AT PEAK DON’T SELL WHEN THE MARKET IS AT LOW.

 JAN 2008 BUYERS ARE FOOL (SENSEX AT 21000)………&

 MARCH 2009 SELLERS ARE ALSO FOOL (JUST ABOVE 8000)…..


MAN WHO BOUGHT 20% ON JAN 2008 ------------(SENSEX 21000)
20% JULY 2008----- (AROUND 16 K)
20 % DECEMBER 2008------- (AROUND 9 K),
20% ON MARCH 2009--------- (AROUND 8 K)
20% ON JULY 2009------------ (AROUND 14K)
IS THE BEST, CLEAR, WISE INVESTOR WHO GETS NEARLY 200%+ RETURNS OVER HIS INVESTMENT!!!!!!!!!!!!!.

GOLDEN RULE 2:
DON’T INVEST BULK. INVEST IN PART & INVEST PERIODICALLY.

STRICTLY FOLLOW THIS RULE WILL SAVE YOUR LIFE (INVESTMENT)

EXTRAS
REASON BEHIND BULK BUYING IS GREED! THIS IS A MAJOR FACTOR THAT DRIVES MARKET UPWARDS …. BUT 99% GREED MAKES PEOPLE STUPID AT LAST BY TESTING THEIR PATIENCE (EXAMPLE: AN NEW COMER TO STOCK MARKET I HAD COME TO KNOW THAT HE HAS INVESTED 5LAKH ALL HIS INVESTMENT AMOUNT IN ONE STOCK AT THE SAME TIME THAT TO AT HIGHEST PRICE OF THAT STOCK. NOW YOU CAN JUDGE RESULT .YES HE IS NEARLY 60 % LOSS IN JUST 2 MONTH THINKING ABOUT SELLING THAT STOCK AND BUY OTHER STOCK SO THAT HE CAN EARN WHAT HE LOOSED IN PREVIOUS STOCK. THIS IS 100% FOOLISHNESS. UNLESS INVESTED COMPANY IS FUNDAMENTALLY WORTHLESS ONE SHOULD NEVER SELL AT THESE LEVELS FOR HUGE LOSS PATIENCE IS THE ONLY KEY TO MAKE THIS INVESTMENT SUCCESS HE HAS TO WAIT EVEN FOR YEARS TO SEE PROFIT IN THIS INVESTMENT)

TIPS:
ALWAYS KNOW THESE BEFORE BUYING A STOCK
 52 WEEK HIGH & LOW
 HISTORY HIGH & IPO PRICE
 CURRENT TREND(TECHNICAL ORIENTED LATER MORE
COLLECTING THESE DATAS BEFORE INVESTING WILL GIVE YOU SOME IDEAS ABOUT WHEN TO INVEST BALANCE AMOUNT




WHICH TO BUY ?
BEFORE INVESTING YOUR 1 ST 20% OR 1 PART OF INVESTMENT AMOUNT LOOK AT THE SENSEX .
SENSEX = SENSITIVE INDEX. YES VERY... VERY... SENSITIVE
INDEX IS GROUP OF COMPANIES FROM VARIOUS SECTORS
THE LIST OF DIFFERENT SECTORS ARE:
 BANKING & FINANCIAL SERVICES SECTOR
 AUTOMOBILES SECTOR
 INFORMATION TECHNOLOGY SECTOR
 OIL & GAS COMPANY SECTOR
 METALS& MINING SECTOR
 PHARMA SECTOR
 TELECOMMUNICATION SECTOR
 UTILITIES(POWER )SECTOR
 REAL ESTATE(SECTOR),CEMENT&CONSTRUCTION SECTOR
 MANUFRACTURING,MEDIA&ENTERTAINMENT
 SERVICES SECTOR
ETC………………

THIS SHOWS THAT SENSEX IS NOT MADE ONE COMPANY OR ONE SECTOR IT IS MIXTURE OF VARIOUS COMPANIES FROM VARIOUS SECTOR.
GOLDEN RULE 3 SIMILAR TO INDEX
GOLDEN RULE 3:
INVEST IN VARIOUS SECTOR (DIVERSIFY YOUR INVESTMENT)
THIS VERY CLEARLY MENTIONED BY SHARE MARKET KING “WARN BUFFET” DON’T PUT ALL YOUR EGGS IN ONE BASKET .

EXTRAS& TIPS:
NSEINDIA.COM& BSEINDIA.COM. BOTH WEBSITE CONTAINS DETAILS ABOUT THEIR LIST OF INDEX COMPANIES . YOU CAN TAKE PRINTOUT OF THEM AND DIVERSIFY YOUR INVESTMENT.
ONE OF MY FRIEND INVESTED ALL HIS 50 K IN TATA STEEL GIANT IN STEEL INDUSTRIES ALSO VERY GOOD STOCK . HE BOUGHT @ 400+ IN THE YEAR OF 2008-09 WHICH WORST YEAR FOR STEEL SECTOR ALL STEEL STOCKS TAKES A BAD HIT . AT LAST HE LOST PATIENCE DUE TO FEAR ANOTHER MAJOR FACTOR THAT PULLS DOWN THE MARKET . HE SOLD FOR LOSS OF 70 % BUT JUST AFTER A YEAR STOCK NOW TRADING OVER RS 600+

BASICS OF BASICS

DOCUMENTS REQUIRED:
1, PAN CARD (MANDATORY)
IF U DON’T HAVE PAN CARD ITS VERY SIMPLE TO GET PAN THROUGH TIN-NSDL OR UTI. BOTH HAVE MANY OFFICES IN ALL MAJOR & EVEN MINOR CITIES AS ON 2010 MARCH PAN APPLICATION COST 93 RS TAKES MAXIMUM 3 WEEKS DURATION .
IT IS NOT MANDATE TO FILE INCOME TAX IF YOU HAVE PANCARD. UNLESS YOUR INCOME EXCEEDS 1.6 LAKHS PER ANNUM THERE IS NO NEED TO FILE..

2, BANK ACCOUNT:
BANK ACCOUNT WITH NET BANKING FACILITY MAKES YOUR FUND TRANSFERRING VERY EASIER THAN EVER .
NEARLY ALL THE BANKS PROVIDE NET BANKING FACILITY NOWADAYS FOR ME BELOW MENTIONED BANKS ARE VERY GOOD FOR ONLINE NET BAKING
1.ICICI BANK (THE BEST EVER I FELT)
2. AXIS BANK
3.HDFC
4.IDBI

NET BANKING TIPS: TO DO NET BANKING , FOR NEWLY OPENED A/C ID & PASSWORD WILL BE SENT THROUGH THE A/C OPENING KIT . FOR EXISTING A/C SIMPLY WALK TO YOUR BRANCH AND CONTACT YOUR CUSTOMER CARE YOU WILL GET IN 5 WORKING DAYS
DON’T SHARE YOUR USRED ID & PASSWORD TO ANY ONE. YOU WILL BE REDIRECTED TO BANK WEBPAGE FROM YOUR TRADING A/C(MORE DETAILS BELOW ) THERE ENTER YOUR USER ID & PASSWORD AND THEN CLICK OK THEN ENTER YOUR FINAL PASSWORD (TRANSACTION)
IMPORTANT NEVER CLOSE THE WINDOW UNTIL YOU GET SUCCESS MESSAGE. AND ALSO CHECK FOR YOUR BALANCE BEFORE YOU RETRY IF AN FAULTS OCCUR.
IF YOU FIND YOUR FUND MISSING BY DON’T WORRY CONTACT CUSTOMER CARE TO SLOVE YOUR PROBLEM MAXIMUM 1 DAY.
*BENEFITS OF NET BANKING NO NEED OF “CHECK CLEARANCE” WAITING PERIOD IT TAKES A MINUTE . YOU CAN FUND TRANSFER EVEN 10 RS.*

DEMAT & TRADING A/C:
BOTH ARE LIKE TWINS BUT THEIR WORKS DIFFER.

DEMAT:
DEMAT IS CALLED BECAUSE OF “DEMATERLISATION ’ FORM .
WHICH MEANS PREVIOUSLY THERE ARE ONLY SHARE CERTIFICATES BUT IN RECENT YEARS ALL CERTIFIFCATES ARE “DEMARTERIALISED” AND CONVERTED IN TO ELECTRONIC FORMAT . INTEAD OF HOLDING 1000 SHARE CERTIFICATES JUST 1000 NOS IN YOUR DEMAT A/C NO NEED TO PRESERVE IT FROM FIRE, WATER AND ALL KIND OF THREATS ..
PEOPLE WHO HAVE SHARE CERTIFICATES STILL CAN CONVERT THEM IN TO DEMAT ACCOUNT(A/C) THROUGH DEMATERIALISATION REQUEST FORM FROM ANNY SHARE BROOKER AFTER OPENING DEMAT A.C WITH THEM .

SOME CLEARANCE IN DEMAT A/C:
ONE CAN OPEN EVEN 10 DEMAT ACCOUNT AND ALSO LINK HIS ONE DEMAT A/C WITH MANY SHARE BROOKERS (SHARE BROOKERS DETRAILS BELOW)
EVERY BROOKER WILL CHARGE AMC (ANNUAL MAINTAINANCE CHARGE) CHARGES DIFFER FROM 200 RS TO 1000 RS SO ITS WISE TO OPEN ONE A/C NOT TO COVERED BY NEW OFFERS OF NEW BROOKERS.
DEMAT A/C IS VERY MUCH SAFER AS YOUR BANK A/C SO NO NEED TO WORRY ABOUT YOUR SHARES IT WILL BE ALWAYS SAFE THERE

TRADING A/C :
IT IS ALWAYS LINKED WITH DEMAT A/C + BANK A/C . FUND(MONEY ) YOU TRANSFER FROM BANK WILL BE IN THIS ACCOUNT AS CASH IN LEDGER .
IF YOU BUY ANY SHARES AMOUNT WILL BE DEDUCTED IN YOUR TRADING A/C AND SHARES WILL CREDITED IN YOUR DEMAT A/C
IF YOU SELL ANY SHARES , SHARES WILL BE CREDITED AND AMOUNT WILL BE CREDITED IN YOUR TRADING A/C
THERE IS NO CHARGES FOR THIS A/C FROM BROOKER END.

EXAMPLE: HOW BANK A/C, TRADING A/C & DEMAT A/C LINKED & WORKS

STEP1: BANK A/C: YOU ARE HAVING 100 RS

STEP 2: YOU ARE TRANSFERING FUND (RS 100) FROM BANK A/C TO TRADING A/C BY NET BANKING OR CHECK DEPOSIT

STEP 3: BUYING SHARES THROUGH THE FUND IN TRADING A/C (EX: BOUGHT ABC COMPANY 1 SHARE @ RS 100)

STEP 4: SHARES ARE CREDITED IN YOUR DEMAT A/C (ABC SHARE 1 QTY)

STEP 5:YOU ARE SELLING SHARES IN DEMAT A/C SHARES DISAPPEARS FROM DEMAT A/C

STEP 6: NOW THE CASH OF SOLD VALUE (NO. OF SHARES * SOLD PRICE) IS IN TRADING A/C(1 * 105 = 105)

STEP 7: FUND IS WITH DRAWN FROM TRADING A/C TO BANK A/C AFTER SUCCESSFULL REQUEST THROUGH YOUR BROOKER.(RS 105 IS NOW IN BANK A/C)

THIS EXAMPLE VERY BRIEF AND ENOUGH OR EVEN OVER DOSE

SHARE BROOKERS:
PEOPLE WHO CONNECTS “WE AND STOCK EXCHANGE” ARE CALLED AS.SHARE BROOKERS. THEY ARE NEARLY LARGE NOS IN INDIA AND STILL NEW PLAYERS EMERGE ALMOST EVERY YEAR .
THEY ARE COMPLETELY CONTROLLED “SEBI”(SECURITIES EXCHANGE BOARD OF INDIA ) & NSE (NATIONAL STOCK EXCHANGE ) BSE(BOMBAY STOCK EXCHANGE ).
THEY ARE MEDIATORS FOR BUYING & SELLING ALL KIND OF STOCKS FROM A GROUP TO Z GROUP (DETAILS LATER)

SOME CLEARANCE REGARDING BROOKERS:
BROOKERS FOR DEVELOPING THEIR BUSINESS LAUNCH MANY SUB BROOKING OFFICE IN MANY TOWNS . THERE IS NO DIFFERENCE BETWEEN BOTH OF THEM BUT IN SOME BROOKING HOUSES (SHARE BROOKERS) THEY OFFER MORE FOR DIRECT CLIENTS THAN SUB-BROOKING CLIENTS.
NO ONE CAN PLACE ORDERS WITHOUT BROOKERS BUT THEY NEVER
INTERFEAR IN YOUR PRICE WHETHER BUYING OR SELLING UNLESS YOU ASK FOR THEIR NEED.
CHARGES OF BROOKERS DIFFERENT FROM COMPANY TO COMPANY

MINIMUM 0.1 PAISE TO MAX. 0.10 PAISE FOR INTRA DAY(DETAILS LATER)

MINIMUM 10 PAISE TO 1 RUPEE FOR DELIVERY (DETAILS LATER )

MY SUGGESTION TO GO WITH

1. INDIA INFOLINE
2. ANANTH RATHI
3. APOLLO SINDHOORI
AND ALSO
4. RELAINCE MONEY COMPANY THAT I WORKED WITH
RELIANCE MONEY OFFERS MOST SECURED TRADING THAT NO ONE CAN VIEW YOU’RE A/C WITHOUT YOUR SECURITY KEY .IT ALWAYS CONFUSING FOR PEOPLE WHO DON’T FEEL COMFORT WITH IT


THIS IS THE END OF BASIC LESSON 1. OFFCOURSE THIS LESSON IS JUST OPENING OF A/C . NO CLEAR IN STOCK MARKET OR SHARE TRADING NEXT LESSON CLEAR VIEW ON STOCK MARKET

vision & mission of this blog

THIS WEBPAGE CREATED FOR NEW PEOPLE WHO WANTS TO INVEST IN STOCK MARKET . TO GET PROFIT ,PROFIT & PROFIT ONLY.
THIS WEBPAGE IS CREATED AFTER MANY YEARS EXPERIENCE IN STOCK MARKET TO GUIDE PEOPLE NOT TO MAKE ANY LOSS IN STOCK MARKET AND ALSO TO TASTE THE MONEY$$$ OF THIE LIFE IN STCOK MARKET .. I AM PUTTING ALL MY KNOWLEDGE AS LESSONS FROM BASIC TO EXPERT LEVEL …

MY SOUL AIM IS TO MAKE INVESTOR HAPPY ….. AND HAPPY ALONE