Best share to buy and sell

Your trading plan is to be written down and it will be changing from time to time based on the moment in the market. What type of trading you want to do, day trading or swing trading or position trading or investing. Decide on this and make a plan.

The following points are to be considered while deciding on the stocks.

1. Decide how much risk you can take. Some times we may lose the amount what we invested. How much you can afford to lose? This is to be decided.

2. Initially invest in one stock and analyse the results. Then you will get an idea. When I started doing this in 1990, I thought I will invest Rs.3000/-. I purchased the stocks of a company which is doing well and the price is on increasing mode. After a month I sold the stocks and I got Rs.3500/-. That is how I started.

3. You can get the trading charts of each company on various sites and you can go through the charts and then decide.

4. Keep your age in mind. This will play an important role in this trading. If you are in the 20s and started earning recently and if you have a fast mind short-term, aggressive trading stocks are the best for you.

For the people who are in their late 50s or early 60s, swing trading low volatility stocks might be more appropriate to them.

There are some tools like Beta, Level I and Level II information. You will get these details on the internet and by using these tools you will understand which is a fast-moving share and which is slow-moving share.

5. Just buying and selling is not sufficient. Analyze and understand the results you got and then use your educative and information-based decisions to go for trading.

6. How to Pick the Best Stocks for Day Trading.

Start with one stock and you fix up the maximum number of stocks based on your analysis of the stock you have purchased.
Decide on the minimum price and maximum price you want to purchase or sell.
See the average shares transacted over the lost one month. It should be high.

Share market investing is a risky proposition and only people having a good risk appetite should indulge in it. It is not very easy to become rich by investing in the share market as if it was so by this time everyone might had become rich. Anyway there are some points which a shrewd investor has to consider before investing a part of his earnings in the share market. Let us go through those things in details -

1. If the world and the country economics and business conditions remain good and there are no major wars, generally it is seen that the share market index increases slowly upwards.

2. There are clearly 3 types of the companies and the first is which are giving regular profit and distributing it to the share holders and have a firm ground in the business arena. The second is good companies but their profits are not consistent and they can or can not give dividend to their investors. They may any time ten into a loss making company also. The last type is the companies which are trying to do good in the business world but due to tough and cut throat competition and are not ready to fight for their survival. When it cones to buying the shares of the companies people prefer the first type of companies for investment.

3. Share market is not for a short time because sometimes it remains stagnant for a long time and the people become fed up as there is no growth and in that desperation sell their holdings only to repent later. So, one has to consider a investment horizon of at least 10-15 years to reap the real benefits. The benefit accrued in terms of bonus issues, right shares and dividends are significant only in long run.

4. Selection of the companies is a crucial matter and here many people apply the approach of blue chip or 'A' group investment which means that invest only in the top companies. Some of the top companies which are consistent for quite some time are - ACC, ABB, Infosys, Birla, Tata, Reliance, Cipla, Dabur, IOC, Coal India, HPCL, Axis Bank, Adani, Pidilite, SBI etc. One can select some of them in ones portfolio. Here also one thing we have to remember that past performance is not a surety for future performance. So we have to be cautious in selecting them.

5. Do not put all your eggs in one basket. This is a golden rule. Do not buy the shares only of a good company and rather buy some shares of each of so many good companies. The risk will be reduced significantly.

6. Do not put all your earnings in share market. This is another golden rule. Divide your investible amount in Bank FDs, Post Office Schemes, Insurance, Mutual Funds, Gold bonds, Govt bonds, Share market, PPF account etc.

7. Patience is the key to share market investing. There will be ups and downs in the market and sometimes it will be like as if share markets will never return to their earlier glory. But it is not so. These are local perturbations created by the short time players who make the market fluctuate and make money out of it.

8. There are people who invest on daily basis and try to make some money out of the daily fluctuations and arbitrage opportunities. This is a complex thing and is not the cup of tea of ordinary investor. I will suggest one to refrain from it.

9. Do not sell all your shares in times of need. When you require money do not sell all the shares. This is a good kitty for future returns and one has to sell only a minimal part of it and arrange money from other sources like money invested in Banks etc.

If you are a beginner, then you should take only less risk.
Yu should not straightaway go for intra day trade.
Start slow and steady as a real investor. Spread your risk by investing small amounts in diferent shares, in different sectors.
Better to start with established companies where the daily share price fluctuation is not very much. Select some good companies which are showing growth, consistent profit/dividend, whose shares are traded daily with good volumes, but less volatile fluctuations.
Do some homework by reading the financial papers/magazines or from the net get the relevant informations.
First short list a few shares of good established, growing, profit making companies whose shares are traded well with good volume everyday, but with less volatile price fluctuation..

Then just verify from net or financial papers how Mutual Funds are dealing in these shares. If the MFs are buying or increasingthe exposure, then you can select these shares. But if the MF s are selling or reducinthe exposure, better not to invest.
Do not invest on a singleday all the money. Do consistently, slow and steady. Attempt a sale only when you get some confidence.

The values of shares are fluctuating and this should not be assessed with the present high value or low one. You need to see its performance in the long horizon and by doing so we could come across its real value.
You may consider the following points before making any investment in the shares so as to fetch handsome reture within two to three years.
1) Instead of tracking its immediate valuation, go through the financial health of the company, its promoters and how the products have influenced the customers in terms of consistent growth. Take the case of TISCO the leading manufacturer of steel including the special steels such as NI, Mn, Cr steels etc which may have the negative Impact momentarily and in no way it reflects its poor performance and you may register its growth once the present recessionary trend is over say a period of max two years and then it may be encased with the substantial profit.
2) Go through the financial Magazines including the Economic times and watch the performance of some of the leading shares such as Infossys, TCS, Tech Mahindra, HDFC Bank, Dr Reddy Labs, HINDALCO, Glaxo etc.
Try to have these shares in your basket though small initially but keep on adding the shares in the long horizon. You will have some set back initially but you will certainly see the reversal ie positive growths with times. You have to identify the time of its disposal.
3) Talk to the financial consultant having wide exposure in the share market. With his consultation, you may purchase some shares having depressed values in the present market bu has the potential to rise. Make a little investment in such shares suiting to your pocket without loosing your patience, it will provide you rich dividends within the span of two to three years.
4) Keep invested in SIP PLAN of different nature such as Indexation Plan, Balanced Debt Fund, Equity shares of different promoters such as Birla Sun Life, HDFC, ICICI but ensure that the entire investment in a single basket is to be made.
5) There will be massive investment in health sectors for Research and new products to fight Cancer, AIDS, Diabetes etc and as such there will be surge of their prices in the times ahead. Invest in such shares with the suggestions of your consultant.
6) Follow the discipline in the process of investments/ disinvestments. You need to track the performance of your invested portfolios and make some adjustments if the situation warrants to exploit the market conditions.