[Altaf Petiwala]

This is regarding query by Backseatdriver:

The difference that you see in prices is because you are getting delayed quotes, on mobile and telivision, though the difference of 3 % seems quite huge. The normal delay in time for quotes on CNBC is about 2 minutes, so maybe on that particular day, the market may have jumped quickly in the 2 to 5 minutes it took you to call your broker.

The order that you finally managed to place is called a limit order. It will execute ONLY if the price reaches the mentioned price.

There are many types of orders that you can place.
Let me give you a small list.
1. AMO orders, stants for After Market Orders. These are entered AFTER the market closes, like maybe late in the evening or night, and they will be routed to the exchange as soon as the market opens. Here, you can also specify a limit price at which you are willing to purchase the stock the next morning.

2. Limit orders. These are when you want to buy at a price LOWER than current quoted price, and the order will be executed IF the price goes to that level, otherwise it is cancelled at 3:30 pm.

3. Stop Loss order. This is used in 2 scenarios. First is when you are holding a stock, and you want to sell if the price drops below a particular level, you enter a stop loss order. The other scenario is when you want to buy a particular stock ONLY when it trades ABOVE a particular price, as you have for some reason determined that the stock will pick up momentum only after breaching that particular price.

This is my first post on this forum, and if by chance, I have managed to break any rules, please do let me know and I will take care of the same in the future.

[black12rr]

Originally Posted by aargee

@Carboy & @BSD - You guys got me wrong; my risk taking capacity is not related with Rs 200/300, its with the max cap of Rs 2000 only.

Re 1 increase with 2 stock of Rs 1000 = profit = 2 Rs
Re 1 increase with 8 stock of Rs 250 = profit = 8 Rs
Hope you guys got the point; again, you guys can have a point of 2 stock increasing by Rs 10. I don't know what to say, but my point is, I'm not in the band wagon of Rs 1000 per stock. I'm still in lower.

You are not looking the other way .

Re 1 decrease with 2 stock of Rs 1000 = loss= 2 Rs
Re 1 decrease with 8 stock of Rs 250 = loss= 8 Rs

Some of the heavy weights ,when the market is down ,do go down .But they also come up when the market comes back .

The 200- 300 stocks you are talking is like pump and dump and when they go down , they remain there for very long time .

[vasoo]

Originally Posted by aargee

@Carboy & @BSD - You guys got me wrong; my risk taking capacity is not related with Rs 200/300, its with the max cap of Rs 2000 only.

Re 1 increase with 2 stock of Rs 1000 = profit = 2 Rs
Re 1 increase with 8 stock of Rs 250 = profit = 8 Rs
Hope you guys got the point; again, you guys can have a point of 2 stock increasing by Rs 10. I don't know what to say, but my point is, I'm not in the band wagon of Rs 1000 per stock. I'm still in lower.
..

Analyze this. Assuming both stocks are comparable, price of a Rs 1000 stock increasing by Rs 2 has 4 times higher probability than a Rs 250 stock increasing by the same amount! So then which one you will choose?

Your argument makes sense if you say that you want to buy stocks of multiple companies/sectors for Rs 2000 rather than buying two stocks of one company. That way you are spreading the risk, and which is exactly why newbies are advised to buy Mutual Funds.

Otherwise it is like saying that I will buy 8 nos of 250 gms pack of sugar instead of two one kg pack because "I am still in lower", whatever that means .

[BaCkSeAtDrIVeR]

Originally Posted by Altaf Petiwala

This is my first post on this forum, and if by chance, I have managed to break any rules, please do let me know and I will take care of the same in the future.

Thanks; this is the info I was looking for; never knew that we can place orders to be executed next day.

Another query - is it possible to have an order like "buy (or sell) at Rs. X if prices reaches in next 2 - 3 days"? Or should I rely on the broker's memory for this?

Another question - do any of the on line trading sites demand a minimum monthly / annual turnover?

[carboy]

Originally Posted by BaCkSeAtDrIVeR

argee, you can buy Rolls Royces; you can buy Mercs, you can buy Maybachs.

Or you can buy Toyotas, Jaguars and the like.

You can get Suzukis and Chevys.

Duh, you will get Nanos and even ambys too.

Or you can get non-branded things for any (lesser) price you are willing to pay.

You can buy ambys and skodas (over priced under performers, drag on your pocket in different ways). Or you can buy Nanos and Suzukis, (just right for a typical pocket, but no brand value). Of course, buying cars is not like buying stocks. So, do not try to pick holes in the argument.

That's not my point at all.

Originally Posted by aargee

@Carboy & @BSD - You guys got me wrong; my risk taking capacity is not related with Rs 200/300, its with the max cap of Rs 2000 only.

Max cap of 2000 for what?
For all your buys in one stock or for the value of 1 stock of a company or what?

Originally Posted by aargee

Re 1 increase with 2 stock of Rs 1000 = profit = 2 Rs
Re 1 increase with 8 stock of Rs 250 = profit = 8 Rs
Hope you guys got the point; again, you guys can have a point of 2 stock increasing by Rs 10. I don't know what to say, but my point is, I'm not in the band wagon of Rs 1000 per stock. I'm still in lower.

Again meaningless.
Why do you think the chance of a 1000 Rs stock going up by 1 Rs is the same as that of a 250Rs stock going up by Rs.1 again?

Assuming both companies are doing identically in their operations as well as in the stock market, then if the Rs. Rs.250 stock goes by Rs2, then at the same time, the Rs.1000 stock will go up by Rs. 8 - so your profit will be the same.

[Altaf Petiwala]

Originally Posted by BaCkSeAtDrIVeR

Thanks; this is the info I was looking for; never knew that we can place orders to be executed next day.

Another query - is it possible to have an order like "buy (or sell) at Rs. X if prices reaches in next 2 - 3 days"? Or should I rely on the broker's memory for this?

Another question - do any of the on line trading sites demand a minimum monthly / annual turnover?

Most Welcome!
All orders placed during the day are either executed, or cancelled at 3:30 pm on the same day. So, you would have to punch the order every night, if you want to do it during off market hours, or have to remind your broker to punch the order daily.

As far as the query regarding minimum turnover, there is no such thing. Though, to get a good rate of brokerage, you may have to promise a good turnover. But for normal brokerage, other than the AMC charges, which some brokerages charge, which is something in the range of 500 rs per annum, there is no commitment required. You can have zero turnover in your account, and still have your account with your broker.

Another angle to this is, when some brokers provide you a trading platform called Diet Odin, which is an execution software, and which mostly is used by traders having good volumes, they charge somewhere in the range of 300 to 500 rs per MONTH. Though its not mandatory to go for Odin, you can always trade through your brokers web based platform for free, or its included in the yearly AMC.

Please feel free to ask any execution related questions, I will be more than glad to answer.

[Altaf Petiwala]

Pre Market call session starts from today on the NSE and the BSE. You can only punch orders till 9:07 AM and the markets will start trading from 9:15 AM. Since this is a new phenomenon for the Indian markets, people please dont get carried away with the indicative rates flashing on the screen, these are ONLY INDICATIVE rates, and not actual trades, which will start at 9:15 AM

Please wait till 9:15 for taking any decisions

[amitk26]

Hi,

While I use some ratios and tools such as P/E , Book Value , EPS , Average moving price , beta etc which average joe like me can understand I am totally at loss when it comes to technical analysis charts given by experts.

So as of now I pay no heed to calls of technical analysts as i do not understand the predictions based on their charts and I tend to believe that there may be some vested interests / operators in the market which may try to influence the market and trust my own gut feeling based on my own analysis.

A brokerage firm approached me last week for personalized recommendation service.

So the question.

1. Are recommendations of the trade calls in public given by experts on sites such as moneycontrol.com , Icicidirect.com trustworthy ?

2. How personalized trade recommendations differ from those in the public domain ?

Anyone has any experience with these sort of services.

Regards

[LonelyPlanet]

Any recommendations on the CIL IPO ?

[Altaf Petiwala]

Originally Posted by amitk26

Hi,

While I use some ratios and tools such as P/E , Book Value , EPS , Average moving price , beta etc which average joe like me can understand I am totally at loss when it comes to technical analysis charts given by experts.

So as of now I pay no heed to calls of technical analysts as i do not understand the predictions based on their charts and I tend to believe that there may be some vested interests / operators in the market which may try to influence the market and trust my own gut feeling based on my own analysis.

A brokerage firm approached me last week for personalized recommendation service.



So the question.

1. Are recommendations of the trade calls in public given by experts on sites such as moneycontrol.com , Icicidirect.com trustworthy ?

2. How personalized trade recommendations differ from those in the public domain ?

Anyone has any experience with these sort of services.

Regards

Stay away from ANY type of recommendations for which there are any charges involved. Tell me, WHY in the world would someone sell you investment advice, if they could use the same and profit from it?

Brokerages have tons of money at their disposal, due to spare margin by people like you and me, and they routinely use that to play in the markets. If they are so sure of the recommendations, why are they telling others?

If you knew of a place where you get gold at a 10 % discount, would you share it with people for a mere few thousand?

Would you not keep it to yourself, go everyday and buy small lots and sell in the main market?

These brokerages are concerned ONLY with brokerage generated by you. Period.

[Altaf Petiwala]

As far as recommendations by so called analysts is concerned, do take a look at he following link, that warned of the sensex falling to 12000.

Sensex may drop to 12K level: Shankar Sharma - The Economic Times

This guy is a regular on CNBC. Go figure

And yes, technical charts are worth the effort involved to learn, as technicals are the ONLY thing that work in the markets.

[aargee]

Originally Posted by black12rr

You are not looking the other way

You're right

Originally Posted by black12rr

Some of the heavy weights ,when the market is down ,do go down .But they also come up when the market comes back

I agree with you completely; I bought TCS when it was around Rs 1300 per stock & during 2008 it fell down like mad; then it split up & know what? Its the topper, say atleast 20% gain. I see your point; unless the company is not known well to me, say like Tata Motors or something like heavy weights, I wouldn't buy them. Also from the last crash, I learned a good lesson to buy those heavy weights during the crash for maximizing the profits.

Originally Posted by black12rr

The 200- 300 stocks you are talking is like pump and dump and when they go down , they remain there for very long time .

Err...but not all of them I guess

Originally Posted by vasoo

Analyze this. Assuming both stocks are comparable, price of a Rs 1000 stock increasing by Rs 2 has 4 times higher probability than a Rs 250 stock increasing by the same amount! So then which one you will choose?

Obviously the 1000's one

Originally Posted by vasoo

Your argument makes sense if you say that you want to buy stocks of multiple companies/sectors for Rs 2000 rather than buying two stocks of one company.

Whew!!! you're the one who got my point

Originally Posted by vasoo

That way you are spreading the risk, and which is exactly why newbies are advised to buy Mutual Funds.

Very late I'm thinking of SIP's now days.

Originally Posted by carboy

Max cap of 2000 for what?
For all your buys in one stock or for the value of 1 stock of a company or what?

All the stocks put together; one month Rs 2000, next month another 2K & so on.

[carboy]

Originally Posted by black12rr

Some of the heavy weights ,when the market is down ,do go down .But they also come up when the market comes back .

The 200- 300 stocks you are talking is like pump and dump and when they go down , they remain there for very long time .

It's really not clear how you can classify a stock solely based on it's price.

Ambuja Cements, Jaiprakash Associates, Suzlon Energy, ITC etc are all heavy weights but their stock price is below 200 Rs.

Abbot India, Bharat Bijlee, Centrum Finance, CMI FPE, Disa India Dynamatic Tech, Fulford, Hawkins, Jindal Polyfilm & lots of such stocks are small cap & their stocks are priced above 1000.

Does this meaning anything? Nothing at all!!!
The stock price taken in isolation is meaningless.

[DCEite]

Guys what is meant by "price band" of IPO ?

Coal india ipo has price band of 225-245 Rs.

ICICI Direct wants me to make three bids with different price and quantity. I have no clue.. please suggest !

[Altaf Petiwala]

Originally Posted by DCEite

Guys what is meant by "price band" of IPO ?

Coal india ipo has price band of 225-245 Rs.

ICICI Direct wants me to make three bids with different price and quantity. I have no clue.. please suggest !

Price Band means you have to BID for the shares at the value you think is appropriate according to you, within the band. You may feel that its worth 225 rs, so you may bid rs 225 for it. Or you may feel its reasonably priced at 245, so you may bid at 245.

As for 3 bids, since I myself have never applied for IPO's I am not sure. I trade only in the Nifty Futures. Trying to make head or tail of companies is beyond my capacity. Plus, the volatility in Nifty is more tolerable.