Sunday, February 21, 2016

Some questions asked by beginners before investing


Where can I invest?

If you are beginner you can invest in Mutual Funds to name a few HDFC top 200, ICICI prudential equity focussed. These are professional who will invest your money into markets. You can find them about from moneycontrol.com

You can also invest by yourself. In beginning you should do paper trading rather than investing actual money.

What is paper trading ?

You trade with virtual money but with real stream data.
you can use  http://moneybhai.moneycontrol.com/ . On that you will get some intial money and then start trading.

A basic principle - Don't put all your eggs in one basket.
You should not put your all money in one stock, I would recommend around 10 stocks. Diversification is important.

In which stocks should I invest?

It depends on your risk profile.

With small cap stocks, the movement is fast. So high risk high reward.
With mid cap stocks, the risk and reward is medium and accordingly with high cap.



But, be wary when investing in small cap stocks as they are sometimes manipulated and operator controlled. You can trade in these small cap stocks which are listed in cnx as they are more reliable. Here is the link http://www.nseindia.com/content/indices/ind_cnxsmallcap.csv

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