Investing Basics - Feel free to ask the most basic questions

Hi
if anybody can explain why big fund houses buy shares in bulk and then immediately sell them at almost the same price. What should be adjudged from this : for a long term investor?

This may be just a transfer of shares internally from one scheme of theirs to another scheme…as they keep on shuffling positions .

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thanks

and one questions please:

  1. from where can i get latest information regarding future order book of a company or new contracts allotted to a company. Also company mergers and acquisitions related info please.

Regards

Such information will be there in quarterly presentations and analyst concalls.

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sir, by that the rates have been changed drastically. is there any web page that can collectively provide information on regular basis.

Follow Tar - investkaroindia.co.in. His weekly newsletter has all the information.
am not related to Tar anyway, just found his work useful hence sharing.

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Do you think one can allocate more capital after earning from trading? Allocation plays 30-40% role. more capital, more allocation

My thoughts are that trading requires some experience with the market, requires more time compared to investing, and a completely different way of looking at things.

With investing, we can follow a particular investing approach, based on any parameter, even as simple as PE or PB, and if you are buying at lows, the chance of the price going even lower is less, generally speaking, as there will be exceptions.

With trading, we are essentially participating where there is activity, where there is momentum in price, we will be buying at high price, in the hope and anticipation based on some thesis that we will be selling at higher price. But if for any reason, the price falls because we bought at the wrong time, stop loss will get hit and that particular trade is lost. And if for any reason the indices that have more association with our stocks fall, mid cap or small cap, then all of our stocks could hit the stop loss, just like it happened a few days ago. The more the allocation, the more could be the potential loss.

Even if we can take the losses financially, psychologically losses bother, because we booked them, and we booked them fast. Losses in trading are absolute, not notional, unlike with investing. Time is a luxury we don’t have in trading, because the losses may go up. I think I changed a trading position to investing, because I did not want to book loss.

If we have some experience with investing, we can definitely use that knowledge and experience we have gained with investing and apply them in trading, but there are a few things that are exclusively to trading.

While your idea is good, it is hard to do unless we reach a point in trading, which will take some time. All in steps I guess. Small losses, breakeven, small profits, little bigger profits, all the while small allocation, slowly scaling up, bigger positions for bigger time frames with technofunda etc. I am not there yet, I am in the middle. And personally, I move my profits to debt.

One suggestion though, presuming you are interested, use a different broker, exclusively for trading, and keep a journal for your trades, for the PnL, you will get clarity w.r.t numbers.

Hope I gave some answer to your question.

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Good suggestion. It is also possible some brokers have brokerage very less for delivery and some have favorable brokerage for intraday trades. This is also something to consider when choosing a different broker.

That is true.

If one really wants to learn trading, and as trading is as nuanced as investing, if not more, one solution is to take more trades, churn is more, and if the capital is limited, brokerage charges should not make additional impact on the PnL. So going with a broker who charges the lowest is better, although there could be some shortcomings with such brokers, as we pay less.

thanks for sharing valuable information

hi

What is bond yield and how does it affects share market?

Ex bonus date is one date prior to the record date and to be eligible for bonus share we have to buy shares one day prior to the ex date. In case of PFC, notification on BSE said record date is 21.9.23 and money control said ex date as 21.9.23. Has SEBI changed the law due to T+1 settlement making record and ex date same? Please clearly.

hi

if anyone can share the link of the webpage where the list of all the stocks is available in real time with market cap and sector.

thanks and regards

hi

How to know that a particular group of promoters is good or bad. Please elaborate

Thanks

Check this out Stock Market Sectors - Sector wise Stocks Performance and Analysis NSE/BSE
Or you can check out Explore stock screens - Screener

https://www.valuepickr.com/basics/stock-analysis-valuation-frameworks/stock-analysis-framework/#section-17
It is based on the book by Pat Dorsey.

It is the interest rate that affects everything. Increase in interest rate causes the interest expense for the loans that company have taken to increase. Same way as it increases our EMI. Therefore the company profit decreases.
Increase in interest rate and the bond yield are directly related.
For more info
What Do Constantly Low Bond Yields Mean for the Stock Market?.

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Hello All, Apologies since my query doesn’t fall for any stock specific question but since you are one of the experts i follow so i though of asking for some guidance. I want to attend few AGMs which are hosted by NSDL but since my account is with Zerodha, so i only have the CDSL DP ID. If i tried accesing nsdl evoting then it asks me to update phone/ email while eservices portal of NSDL doesn’t recognize my DP ID. Can you please guide me how i can go about it. I have tried doing some research over web/ youtube but didn’t find any resolution.

May be you can contact the company officials. They will make necessary arrangements for attending the AGM.

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This looks like a technicality, so you can approach the company and if it does not help, which I think it will, you can think of opening a new account with a broker whose DP is NSDL, and buy 1 share of the companies, whose AGMs you want to attend, AFAIK we can attend an AGM even if we have 1 share, and after attending the AGM, sell that 1 share on the very next trading day.

Just a thought. I never attended any AGM, so never opened an account for this purpose.

This seems too much trouble. What if, he wants to attend AGM of MRF, Nestle, Abbott?