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View Poll Results: Stocks as a percentage of my net assets are -
0 - 25% -- I'm like the most conservative Indians. I love FDs. 224 31.95%
26 - 50% -- I have a few stocks. 313 44.65%
51 - 75% -- I'm an active trader. 114 16.26%
76 - 100% -- Hey, I'm an i-banker!!! 50 7.13%
Voters: 701. You may not vote on this poll

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Old 24th June 2016, 09:34   #3271
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Default Re: Do you play the stock market

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Originally Posted by ghodlur View Post
Sorry if this post comes late, you have lost out mate. yes applying for IPO has become compulsorily through ASBA and every bank does provide that feature with an exception of Citibank. Unfortunately Citibank does not have this option which I also recently came to know when my office colleague was frantically trying to apply for the IPO.

Just for you information, the IPO was oversubscribed 64 times.
Thank you ghodlur. I have missed the bus. But since the market has fallen 3%, I can invest the same amount in some of the good stocks.
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Old 25th June 2016, 18:39   #3272
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My Sharekhan account is linked to Citibank account. Is there any option in Citibank portal, where I could apply for the IPO?

Any help is appreciated.
Though this is late, please remember you can apply through any other online banking channel which you may have. For example, you can apply for any IPO through SBI online. You only need to mention your DP Id.
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Old 29th June 2016, 12:24   #3273
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Default Re: Do you play the stock market

Hi Folks,

Rookie question: lets say one has bought 1000 shares at Rs 100 and taken delivery and on a future date when the stock is trading at 102, is planning to sell. While this qualifies as buying and holding, technically has an element of day trading in this. Understand that it is not necessary that one gets to buy/sell at the quoted price and has to go by what the bid/ask price is which may vary from the quoted price (quote being the latest transacted price)

With the above scenario in mind i.e. bought at 100 and intent to sell on a future date at 102, what, in the experience of regular traders on this forum, could be the spread/difference between the bid and ask prices? Is the variation high? Is it high for stocks which are traded in low volumes?

Intent of this question is to understand that if one is looking to play small margins on high volumes on holding and selling and is tracking the quoted price to determine when to sell, can a wide difference between bid and quote lead to an overall net loss (if it varies a lot from the quote price)

Rookie question and hope I have been able to make sense

Last edited by hothatchaway : 29th June 2016 at 12:26. Reason: spelling
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Old 29th June 2016, 12:50   #3274
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Default Re: Do you play the stock market

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Originally Posted by hothatchaway View Post
With the above scenario in mind i.e. bought at 100 and intent to sell on a future date at 102, what, in the experience of regular traders on this forum, could be the spread/difference between the bid and ask prices? Is the variation high? Is it high for stocks which are traded in low volumes?
I'm not a trader, but it all depends on which stock you are talking about as it depends on how liquid that stock is.

Sensex stocks trade in huge volumes and liquidity is very high which means their Buy-Sell spread is only a few paise even if the price of the stock is over a thousand rupees. On the other hand with illiquid small-cap stocks, the spread can be 1% or more and sometimes one may even struggle to sell it no matter what the price.

Also since the pricing is dynamic, Buy-Sell spread is not fixed and keeps changing from second to second. Defining the Buy-Sell spread is the role of a market-maker, a bunch of these brokers have existed for donkey's years on the BSE and NSE and their transactional costs are very low. In addition, there are also Algo Traders who deal in wafer-thin margins.
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Old 29th June 2016, 14:56   #3275
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Sensex stocks trade in huge volumes and liquidity is very high which means their Buy-Sell spread is only a few paise even if the price of the stock is over a thousand rupees. On the other hand with illiquid small-cap stocks, the spread can be 1% or more and sometimes one may even struggle to sell it no matter what the price.
.
Thank you nowwhat? for the quick response. My takeaway is that one should always factor in some uncertainty on the final price one gets, especially while selling. This can make a difference on how volume/low margin trades.

Any yardstick on how to determine how liquid a particular scrip is? For e.g. there are large companies but have low trade volume on the bourses.
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Old 29th June 2016, 15:04   #3276
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Default Re: Do you play the stock market

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Any yardstick on how to determine how liquid a particular scrip is? For e.g. there are large companies but have low trade volume on the bourses.
If you usually buy/sell shares worth Rs. 1 Lac at one go, make sure the stock you trade in has an AVERAGE daily trading volume of approximately Rs. 10 Lacs.

Also, if the bid/ask spread is wide, put a limit order half-way between bid and ask. That is, if there is a bid for Rs. 55 and an ask for Rs. 56, set a limit price of Rs. 55.5. By doing this, you compress the bid/ask spread - and the trade usually gets through most of the time. If your trade doesn't get filled, try another day.
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Old 2nd July 2016, 06:05   #3277
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Default Re: Do you play the stock market

@carboy, others since you mentioned index funds and i am new in market. Please can you suggest which is a the best index fund as of now? I have registered myself on zipsip site to enable myself to trade MF.
Thnx
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Old 2nd July 2016, 10:44   #3278
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@carboy, others since you mentioned index funds and i am new in market. Please can you suggest which is a the best index fund as of now? I have registered myself on zipsip site to enable myself to trade MF.
Thnx
There no very good index funds in India.

Out of the ones which exist, GS Benchmark Nifty Index fund and UTI Nifty Index funds are decent.
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Old 2nd July 2016, 14:31   #3279
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@carboy, others since you mentioned index funds and i am new in market. Please can you suggest which is a the best index fund as of now? I have registered myself on zipsip site to enable myself to trade MF.
Index funds are not really popular in India because most mutual funds beat their index quite easily.

The best index funds in India are SBI Sensex ETF and SBI Nifty 50 ETF, these are the same funds EPFO invests in every month and have very low expense ratio of less than 0.1% (ergo, they track the index more tightly than others) and they also have high liquidity.
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Old 9th July 2016, 20:20   #3280
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Hi Shajufx ,

I started trading for a living since July 2013. I only trade in NSE stock futures and write options and dont do delivery based trading. My Annual returns (not compounded) were:
In Fy 2013-14 = 19 % , Fy 2015-16= 34 % , Current Fy 2015-16= 83 % so far. I prefer shorting stocks and write options.
Spookey .. I was looking for inputs on TA analysis and came across your inputs.

You progress has been very good, what was your End-of-Year rate of return?
How is your rate of trades (say on monthly basis), ratio of winning and losing, .. ?

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Originally Posted by spookey View Post
... I also use Maximum pain theory extensively ...
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Originally Posted by spookey View Post
.... My strategy is simple - Identify fundamentally weak stocks that are technically strong but heavy call writing happening and short them and vice versa. ...
The above strategy looks pretty good and simple to follow.

However one concern I come across lot of times is that most of the time huge movement happens in pre-trading session itself,
and you have to make do with fairly less movement during the day making trades untenable.

How do you deal with that?
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Old 11th July 2016, 14:23   #3281
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Default Re: Do you play the stock market

Anyone applying for L&T infotech IPO ? There's a discount for retail investors also.
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Old 11th July 2016, 15:29   #3282
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Anyone applying for L&T infotech IPO ? There's a discount for retail investors also.
good IPO. Go ahead and apply. Good long term buy too. I have applied retail.
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Old 12th July 2016, 00:15   #3283
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Default Re: Do you play the stock market

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Anyone applying for L&T infotech IPO ? There's a discount for retail investors also.
It's oversubscribed by 1.12 times today. It should be good for the listing day gains as well I believe (to the tune of 20%).
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Old 12th July 2016, 10:53   #3284
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Default Re: Do you play the stock market

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Anyone applying for L&T infotech IPO...
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..I have applied retail.
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...It should be good for the listing day gains as well I believe (to the tune of 20%).
IPO is BUY recommendation from most brokerages at the price its available.
The grey market interest seems quite low as they say, so listing upside may not be to that tune.

Quess just listed at premium of +50%!!

Folks, does it make difference if you apply first day or last??
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Old 12th July 2016, 14:17   #3285
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Default Re: Do you play the stock market

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The grey market interest seems quite low as they say, so listing upside may not be to that tune.
Folks, does it make difference if you apply first day or last??
L & T InfoTech IPO is little risky, be careful. To my knowledge listing gains may not cross 10%, mainly in the back drop of IT sector headwinds.

IPO allocation is purely on lottery basis (if over subscribed), it does not matter when you apply.
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