Best tips for buying stocks

At 88, Warren Buffett 's white hair, bushy eyebrows and aw-shucks grin hardly make for an intimidating visage. But he is one of the most powerful investors in the world, thanks to his Midas Touch on Wall Street. Since then he's bought stocks through seven Democratic U. And in that time, he's been very, very good at it.

Stock Tips and Recommendations for Active Traders

How many times have you bought a stock on someone's advice to make a quick buck and waited for months, may be years, to just recover your cost? Share trading, experts warn, is a risky game. However, it's possible to play it smartly and make a quick buck as well, they say. Sandeep Nayak, executive director and chief executive officer at Centrum Broking, says, "The main attraction of trading is that people feel they can make quick money.

But there are no free lunches. Trading requires a lot of discipline. While traders do make as well as lose money, whether this activity suits you depends on your financial position. However, in India, retail investors mainly trade in stock futures and options due to sheer volumes. Trading means buying and selling a stock the same day or holding it for just days. The former is called intra-day trade. The latter is called swing trade. Positional trade generally involves taking a longer position and holding a stock for weeks.

Safety tips for dealing with market volatility This depends to a large extent on how much capital is available, how many opportunities you can explore and your knowledge of technical analysis. SKILL SETS While any recipient of the so-called 'hot tip' can trade, making money consistently is possible only when you have sufficient knowledge of the markets and skills for technical analysis, which is the science of forecasting prices based on historical data.

He joined Rare, an asset management firm, in June and took up trading seriously in May He is passionate about trading and does not focus too much on the long term. When he focuses on the latter, that's when disaster strikes The software for technical analysis is available on the internet for free, but with limited features.

Professional software capable of highly detailed analysis comes at a price. One should either have knowledge of technical analysis and the market or consult the relationship manager of the brokerage firm, says Gopkumar. Stock exchanges, such as the Bombay Stock Exchange and the National Stock Exchange, offer courses in technical analysis. Another institution which offers such courses is Online Trading Academy. Trading is simple, but not easy. You have to be disciplined.

That is because in most cases, when people are making money, greed makes them wait for more, and so they don't book profits. When prices fall, fear makes them sell fast. If losses are not a deterrent and the market's roller-coaster movements give you a high, here are a few habits and skills that can help you stay on the right track.

These are useful for day traders as well as positional traders. Discipline: The key to success is a stop-loss order. Stop loss helps a trader sell a stock when it slides to a certain price. Suppose you buy shares of company A at Rs and set a stop loss at Rs When the price falls to Rs 95, the shares will be sold automatically. This means you have limited your loss to Rs 5. While entering a trade, you should be clear about how much loss you are willing to accept. Skill: Trading is a skill, says Derek.

You should also know how to spot amateurs and trap them and how to take positions. Also, you should be quick to get in and very quick to get out," he says. A lot of amateurs in the market buy at a wrong point. A skilled trader identifies such people and takes an opposite position to trap them.

Planning: One should identify a few stocks and focus on them. Minimum capital: Only those with a capital of at least Rs 2 lakh can trade for a meaningful gain. However, this capital should not be borrowed and should not be part of your core savings.

People can also trade with less, but volumes are important. So, a certain minimum capital is a must. Stock volumes: A stock should have enough volumes for it to be tradable. According to Zelek, it should have a minimum daily average volume of , shares. For those just starting, trading Nifty stocks is a good idea, he says.

Price range: What should you do with a share which has high volumes but not much price movement? You should prefer shares with a minimum price range of Rs This means the average difference between a stock's intra-day high and intra-day low should be at least Rs Bharat set up a partnership firm dealing in electronic items before becoming a franchise of a brokerage firm in June Never go against the market trend and never mix your trading portfolio with your investment portfolio.

See an opportunity in every market move. Timings: Look for the most volatile market timings. Derek says 9. Volatility: Any stock with a positive beta of 1 or above is good. A beta of 1 means the stock will move in line with the market. One can find a stock's beta in the trading software. Supply-Demand: One has to know the supply and demand of individual stocks. If the number of shares up for sale is more, one should not buy the stock, and vice versa.

To know if the sell quantity is more or the buy quantity is more, one cannot rely on the bid and ask numbers available on the screen. Only a technical analysis can help identify the supply and demand in individual stocks, says Zelek.

News Flow: Never trade on news which is out in the market. It takes a few minutes for a stock price to adjust to any news. Average out: When the price of a stock starts falling, people buy more to average out. In trading, it's a strict 'No'. It's a losing trade. The trade is going bad. I would rather wait for the right time to enter again," Makwana says.

Do you think you can immediately start trading with all these tips? The answer is "NO". One needs to develop a few skills, including the ability to understand technical analysis. Money Today will discuss in detail how one can trade using some charts and technical analysis in future issues.

Settings Logout. Tweet Youtube. Previous Story Investing in Asia can make you rich. Must Read. When he focuses on the latter, that's when disaster strikes.

Below are five tips to help you identify when to purchase stocks so that you have a good chance of making money from those stocks. Key. Top advices on Indian stock market, trading market and also get expert views, Be selective while picking midcaps: Over 20 stocks on buy list of brokerages.

For investors, finding a stock to buy can be one of the most fun and rewarding activities. It can also be quite lucrative — provided you end up buying a stock that increases in price. But when are you supposed to actually go in and buy shares? Below are five tips to help you identify when to purchase stocks so that you have a good chance of making money from those stocks. When it comes to shopping, consumers are always on the lookout for a deal.

The below strategies will deliver tried-and-true rules and strategies for investing in the stock market. Need to back up and learn some basics?

Updated daily at 6. NIFTY Recent Reports Updated at our Blog 8 May pm.

Buy Stock Tips

It's essential for all traders to know when to take some off the table. Stop fearing the tax man and start fearing the loss man because gains can be fleeting. To maximize your profits, stage your buys, work your orders and try to get the best price over time. There are no refunds on Wall Street, so do your research and focus your trades on damaged stocks rather than companies. If you control the downside and diversify your holdings, the upside will take care of itself.

The Kick of Quick Bucks

How many times have you bought a stock on someone's advice to make a quick buck and waited for months, may be years, to just recover your cost? Share trading, experts warn, is a risky game. However, it's possible to play it smartly and make a quick buck as well, they say. Sandeep Nayak, executive director and chief executive officer at Centrum Broking, says, "The main attraction of trading is that people feel they can make quick money. But there are no free lunches. Trading requires a lot of discipline. While traders do make as well as lose money, whether this activity suits you depends on your financial position. However, in India, retail investors mainly trade in stock futures and options due to sheer volumes.

Advertiser Disclosure: The credit card and banking offers that appear on this site are from credit card companies and banks from which MoneyCrashers.

Nifty50 closed higher at See more. Posted by : Aceinvestmentadvisory.

5 of Warren Buffett's best tips for investing in the stock market

Buying stocks can be intimidating, learn the best tips and practices you need to apply when purchasing these investments. This is a crucial first step that will shape your investing career going forward. These various exchanges provide a place where buyers and sellers come together to buy and sell shares, which allows for liquidity and helps ensure that sellers get the highest price possible and buyers can buy at the lowest price possible. Generally, the more shares trading hands every day, the higher the liquidity. Stocks with low liquidity hold increased risk due to the possibility that an investor may be stuck with a stock of which the price is declining and no one to sell the stock to. Understanding how the exchanges work is extremely important to buying your first stocks. Taking a leap into buying stocks may seem like an intimidating task but once you jump in, you are opening up a wealth of investing opportunities. The more often the process is done, the better you'll get at buying stocks in a timely matter. To optimize your performance in the stock market, follow this step by step list. While trying to avoid focusing too much on the personal finance side of buying stocks, this is a crucial first step that cannot be ignored. There is no reason to be purchasing stocks if you carry a balance on your credit card, line of credit, or any other high interest debt product. So instead of putting your money in the market, put it towards paying off your debts. Thoroughly research online brokers There are so many options out there, offering a variety of different pricing packages. You should spend almost as much time researching brokers as researching the actual stocks you will buy.

When to Buy a Stock and When to Sell a Stock: 5 Tips

Full Service Brokers: They offer you advise on what to buy, when to buy, and what not to buy. Naturally, they charge for their advise. Many times they also have a set of quota to meet, so be careful when you listen to their advise. They may also have a vested interest in selling a certain security since most of the IPOs are offered by full service brokerage houses. They have a research department that searches the market and locates stocks that they believe are ready to move up. Keep in mind that you pay for that research. There is nothing wrong with that provided you know that. Discount Brokers: These companies do not offer any kind of advise. They just execute your order.