Long term Vs intraday trading

Failing to make good investment decision , unexpected decline of company fundamentals may lead to  loss of money in long term investment

While in day trading one has to identify highly volatile stock(eg TIL ,too volatile for weak hearts !!!!!!)

Day trading is time consuming , risky but u can make real good money , real quick !


Take care of taxes and costs
As they r different for different Demat Accounts



1.For long term investment one should opt for high dividend paying stocks.

2. Dividend history should be studied .

3. Dividend money get transferred to your savings account attached with Demat

4. Profits depend on risk management

5. Trade to make money and not to prove that you are right, latter drowns you.

6. Identify few stocks and focus on them

Try to buy good businesses that you understand, bet long-term and, most importantly, buy cheap.


Parameters of stocks

Various parameters come into play, not any one is sufficient
1. VWAP
2. Candle stick charts
3. P/E ratio
4. P/B ratio
5. Beta
6.  EPS
7. Most important : company profiling .. U should understand what u r investing into


Risk is minimised if u r careful in choosing your portfolio
Diversification is important to protect against losses ,and for optimisation of results

To manage risks balanced Diversification should be opted for.

There are some external risks that u cannot control
1. Choose stocks as per your risk level,stay current on industry and company news
2. Rebalance your portfolio periodically as market movements change everything
3. Don't follow experts blindly
Or


Buy stocks of 2-3 very Good companies , with Good dividend and relax ....


Don't depend on stocks income only

It should b additional income ....
NOT ONLY INCOME


Key to success in stocks

To start in share market these steps should be followed


1. Study various companies
2. Identify the company that u understand what it is manufacturing
3.read newspaper to upkeep the knowledge
4. Make a list of  optimal companies
5. Don't buy when market is soaring (What goes up comes down )
6.Weed out under performers .
7. Stick to your budget
8. Identify your goal and chase it , don't chase market
9. Do research and invest for long time
10. Have realistic aspirations
11. Just dump whatever is outdated
  • Patience in equity markets, is a virtue , to create long-term wealth. And, often, it is the most difficult part.
  •  At an individual stock level, look for long-term, sustainable and solid performances while at a portfolio level, endeavor to  control the risk.



To succeed u need to be disciplined.... ..... Warren Buffett



So it pays if u r disciplined   :-))


Don't do what everyone else is doing, do your own research , make your own decisions



" Only dead fish follow the flow "

"Don't ever get emotional be practical and diligent "


Over confidence is a toxin in investments world.

Read about portfolio building


4 Steps to Building a Profitable Portfolio 


Read more: 4 Steps to Building a Profitable Portfolio | Investopedia http://www.investopedia.com/articles/pf/05/060805.asp#ixzz4co8hzV54







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