I want to know about basics of investing in Indian Stock markets?

Question

Also tell me meanings of terms like

circuit, cmp, settlement, sensex, nifty, bull, techincal call,

Answer 1

first study the market, have some knowledge. At the beginning stages invest only on penny stocks to avoid losses. And opt a good Broker( u need a broker to open a D-Mat account), some of them will give valueable suggestions on which shares to purchase at what price etc. Follow their bulletins. My cencere advice is study the market first. Watch CNBC, NDtv Profit etc to gain knowledge over market..

All The best............

Answer 2

Shed irrational exuberance, if you have.  Right now that seems to be the basic thing to do.

Answer 3

In addition to learning the meaning of so many technical terms floating around, some simple things you need to know about stock investing are:

1. do your own research.

2. take it with pinch of salt those advt on TV's and newspapers about astonishing profit growths.

3. again don't believe the broker unless you fully trust him.  he has his own vested interested when giving you tips.

4. keep the greed out.  this is the most dangerous which will eat into your profits.

5. stock investing is not a betting market.

6. educated buy, careful monitoring, keeping a close watch on all the political, economic and international events will help in making the best.

7. last but not least define your time frame to hold the stock, and clearly mark the buy, sell, profit targets.

8. keep the sentiment out when buying and selling the stocks.

while some of the above are easy to ready and understand, they are difficult to follow day-in-and-out.  So start with small amount and make yourself comfortable before betting all your savings into the stock market.

if you got attracted by the sensex figures of 10k and 12k a better suggestion is invest through mutual funds and keep away from stocks (like i do).  The fund manager an expert himself/herself will do all the above for you for a small fee.

Good luck.

Answer 4

Buy low. Sell High and don't be greedy