Tuesday, May 19, 2009

Prices that go up can come down
The first and most important rule is that the price of shares can go down as well as up. Because a share may have been performing very well for many years is no proof that it will continue to do so. All sorts of unforeseen and unexpected events can bring about sharp reversals in a company’s fortunes.



Buying shares online is very easy way and convenient way. To buy shares online first you have to Open a Demat Account and Trading Account with any of the registered share broker. You will be provided with an User Id and Password when u get your Demat and Trading Accounts. Then Open your Brokers Web page or Software and use your User Id and Passwords to log in. After Logging In you have to select the company which shares you want to buy then Click on Buy Option and enter the no of shares you want to buy and also enter the price at which you want to buy. That's it. There are many things to remember when you buy shares. stop loss, short sell, Intraday, Delivery, Cash trade e.t.c.
While from within the country you can use http://icicidirect.com, for NRIs; ICICI provides a sub domain based web address http://nri.icicidirect.com for online trading. You must first transfer the money to your ICICI bank account through a transfer of funds from your resident country, assuming that you do not already have money for use of share trading in your account. 
How much money is needed?

This is a question many people ask. There is no fixed figure here. You can buy shares for as small an amount as Rs. 500 (depending on which stocks you buy) or as much as whatever your financial capacity entitles. Understand that money is no constraint here. You can start very small; gradually increase your investment in equities. In fact this is the preferred method when you are new. So that you can understand the dynamics of the market as you increase your investment and make smart moves.  

Going back to buying and selling, after you login to your account for the first time, you may need to agree some terms and conditions. Then you can allocate funds through the allocation menu, assuming that you have already transferred money to your bank – DMAT account, Select Non PINS account for primary markets (IPOs) and PINS account for secondary markets (equity purchase). You will be mostly using PINS account.  
Market or Limit order: 

Market order for a sell or buy means that the order is immediately executed at the current market price of that stock. A limit order means that you are specifying the amount of money you are willing to pay or get (in case of a sell) for that particular stock. For example if the current market price of a share is 100 you can say you are willing to buy it at 99. Such a limit order when placed is queued for execution at the exchange. The moment the price of that share reaches the value specified, the order get executed. If it does not reach the specified value, the order gets cancelled at the end of the market day. Same thing happens if it is a sell order. 

Once you confirm your sell or buy order, your order appears on the order book. This is where you can monitor the status of your order. It is then queued and executed (status changes automatically depending upon whether the exchange is trading at that particular time, whether your price can be acceptable for a purchase etc. Examples of status indications are 'queued', 'executed', and 'cancelled' (if you did).
Also, once a limit order has been placed, the system will automatically present you an option to make changes to that order after it had been unsuccessful in executing for a certain period of time. At this stage, you can decide either to modify or cancel your order. If you choose to do nothing, your order will continue to wait until the value specified by you, matches the market value. 

The market ended flat today amid high volatility and saw the highest turnover ever of Rs 1.57 lakh crore. Sensex closed at 14302, up 17 points (provisional) and Nifty at 4318, down 4 points (provisional) from the previous close. CNX Midcap index was up 2.21% and BSE Smallcap index was up 2.59%. There was heavy buying in realty (BSE Realty index up 12.8%) and selling in IT stocks (BSE IT index down 10%). The market breadth was positive with advances at 924 against declines of 332 on the NSE

Monday, May 18, 2009

Welcoming UPA's win in the solon elections markets unsealed on a real upbeat say triggering of journeying breakers for the primary period ever. The shares surged nearly 15 percent within seconds of alternative on Monday, triggering circuit breakers that halted occupation for two hours as investors glorious a comprehensive election victory for the judgement union. The markets further stretched their gains which triggered the unalterable journeying breaker that shuts patronage for the day. It was the honours minute a journey wave has been set off by a origin in the Bombay Repute Change (BSE), a spokesman said. The measure 30-share BSE indicant wine 14.70 proportion to 13,963.30 points, its highest since September 23, and the 50-share General Reputation Mercantilism (NSE) finger jumped 14.48 pct to 4,203.30, also an eight-month squeaky. Earlier, the BSE said its forefinger had risen 10.7 proportion before the halt. "It is real startling because the turnover was not some. It's rattling calculating to interpret how the racetrack breakers get been triggered when the volumes are so low," T.S. Harihar, evil chairman at ICICI Securities, said. Raceway breakers are set supported on moves of 10 proportionality, 15 percent and 20 pct using the chummy to the previous kill as a drug. Triggering a raceway ledgeman in one market also closes the different. The BSE forefinger was up 1,789.88 points and the NSE indicant was up 531.65 points at the preclude, both having decussate the 15 pct causing limits. When trade resumed, the BSE forefinger wide its ascend by 160.12 points to 1,950 points and the NSE vino another 68.35 points to be up 600 points on the day, the 20 proportion decrease was triggered and line was halted for the day.

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