How to Trade Indian Stock Market?

October 4th, 2010 admin Posted in American Stock Market, Asian Stock Market, Indian Stock Market No Comments »


This article explains about the basic requirements on how to trade in Indian stock market. Before starting trading the investor should have basic knowledge about stock market and have invested in the mutual funds.

If you are an Indian citizen and residing in India or Non Resident Indian then you must have PAN Card. PAN Card is compulsory, then only you can proceed for next step. To get PAN Card in all over India many bank branches accept application forms. After applying for PAN Card within a month you will get your PAN Card.

There are many online broking houses, subscribe your trading account with one of the major online broking houses like India Infoline, Share Khan, India Bull and Reliance money.

Some of the brokerage houses have their own charting having limited features. But better option is to get good charting software such as Easy Chart, Metastock or Amibroker. You have to subscribe to an End-of-Day facility which will update data feed from signal.

Now start with most challenging step i.e. learns trading. To get knowledge about trading, you can refer books, join online charting communities, blogs, and membership site or apply for mentorship program. You can take help from any known investors. Start paper trading with full efforts as if you are trading real money.

Update and remain active for economic news, fluctuations and equations of demand and supply of every sector of economy. Also keep in touch and update yourself regarding decisions of Government monitory policy and Reserve Bank of India upcoming announcements and also keep track of global events which mainly affect the market and economic conditions.

After you clear above steps without any confusion can start actual trading with real money. With best efforts ready to face challenge and don’t reach the starting point of loss. As per your style and personality develop and apply method which is tested for minimum loss ratio.
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What are Mutual Funds

November 10th, 2009 admin Posted in American Stock Market, Asian Stock Market, Indian Stock Market No Comments »

Mutual funds are collection of money came from investors with an intention to invest into the industries having better prospectus. It is a pool of money invested in stocks, bonds, securities, infrastructure, telecommunication, energy, short-term money-market instruments and so on.

In eighties, process of economic liberalization brought dramatic changes in Indian industry, corporate sectors and the capital market. With this there was a demand for new financial services such as issue management, corporate counseling, capital restructuring and loan syndication. In eighties, UTI was holding the monopoly in mutual funds market but in nineties several public and private organizations took permission to setup mutual funds.

There are large number of investors who does not have enough time, knowledge, experience and ability to take financial risk to play a monetary game in stock exchange and earn income from the same. They do not have capability to manage their money. Mutual funds came into the market and penetrated so quickly to satisfy the investment need of these investors. Investors can seek a guidance of portfolio manager to minimize financial risk and ensuring safety and steady returns on investment. Portfolio managers are the professional fund managers who work on behalf of Asset management Company (AMC), guide you and manage your investments. AMC gives a management fees to these managers. Investors make money by earning dividends or on the investments and by selling securities that are appreciated in value.

 

There are two types of mutual funds: Open-Ended and Close-Ended funds. Investors can buy or sell open-ended mutual funds at any time for the market price i.e. it does not have any locking period; they does not have a set of numbers of shares, they are always open to accept investment from investors. Normally, fund managers are the major players in open-ended mutual funds. Whereas Close-end mutual funds has a fixed number of shares and the value of shares fluctuates with the market. The investors can go for close-end mutual fund at the time of launching or buy from the current investors. Mutual fund is a piece of investment portfolio, investors’ gains and losses in share and expenses in amount of proportion of their investment.

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