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How to Select Stocks for Intraday?
There are more than 3000 stocks under equity segment. It is really difficult to choose the best stock for intraday. Choosing more number stocks and changing them day to day is not advisable for intraday. Most of the professional traders choose only few stocks (less than 5 stocks)for intraday. TradinRead more
There are more than 3000 stocks under equity segment. It is really difficult to choose the best stock for intraday. Choosing more number stocks and changing them day to day is not advisable for intraday.
Most of the professional traders choose only few stocks (less than 5 stocks)for intraday. Trading frequently in same stocks for a period of time will give you confidence. You will know how it reacts in gap up, gap down situations.
In a way the stock will become friendly to you. You know when to buy, when to sell and what not.
You better master the single stock rather than trading in multiple stocks. But choose the stock from mid or large cap. Small cap stocks may undergo stimulation. You may incur huge losses due to unexpected movements in the stock.
See lessWhat is an AMO Order?
After market order, AMO is placed-in to do trading after market hours i.e., after 3:30 PM. It is usually done post-market hours of the trading day. The placement of an order should be between post-market hours of the current day and the next trading day. The purpose of the AMO order is to improviseRead more
After market order, AMO is placed-in to do trading after market hours i.e., after 3:30 PM. It is usually done post-market hours of the trading day. The placement of an order should be between post-market hours of the current day and the next trading day.
The purpose of the AMO order is to improvise the order performance. The AMO orders are opened on the next day in the stock exchange at 09:00 am. The time period between 9:00 am to 9:07 am is called pre-market hours, where all the AMO orders are executed.
Trader can place an AMO at any time between 03:45 PM and 08:57 AM (National Stock Exchange), and for BSE it can be anytime between 03:45 PM and 08:59 AM. However, the best time for the AMO to be placed in the stock exchange is between 05:00 PM and 08:50 AM at NSE. It is a time ideal for NFO and Currency segments.
Place an AMO:
An investor before buying a stock must fix the buying price. In such a case first thing, one should keep into account is the closing price of the day. The investor can either quote five percent more or less than the price at the end of the trading day. The investor can choose the range of the preferred share. Say, the closing share price is INR 100 then it can be quoted for INR 95.00 or INR 105.00
AMO: Rejection
There are two instances in which AMO gets rejected and that means the client/investor is not allowed to trade on the stock exchange. It does happen if the client account is in Dormant Status. A Demat account/trading account gets into dormant status if the investor doesn’t transact at the stock exchange past six months.
Cancellation of AMO:
The investor can cancel before the trading session of the next day begins. When the following day’s session begins an investor may not find sufficient margin in the margin calculation process usually dealt at the beginning of the day. In such circumstances, the investor must check the ‘order status’ that is found in the order report during market hours. An investor can cancel such aftermarket orders before it gets registered at the exchange.
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Can I Buy/Sell Shares Without a Demat Account?
SEBI Rules Govern Demat Account: An individual investor cannot buy or sell shares without a Demat account. In the earlier days, the shares were issued in the paper form and that process is no longer in existence. In 1996, the Securities and Exchange Board of India, SEBI made it mandatory for all invRead more
SEBI Rules Govern Demat Account:
An individual investor cannot buy or sell shares without a Demat account. In the earlier days, the shares were issued in the paper form and that process is no longer in existence. In 1996, the Securities and Exchange Board of India, SEBI made it mandatory for all investors to open Demat accounts. The entire transactions of selling and buying on the demat account and the financial transactions are credited or debited accordingly.
Significance of Demat Account:
A Demat account is similar to a bank account. In bank account it deals with the account holders finances. In demat account it takes account of shares, bonds, and securities. Hence, individuals will require to hold a demat account. Individuals will need to maintain demat and trading account to trade (buy/sell) in the stock market. What is trading account? It is an account that enables individuals to buy and sell shares in stock market.
Exception: Trading without Demat A/C
Now the question is can anybody do trading without a demat account. It is made possible for traders who intend to do trading in the futures, options, and currency derivatives. In all the mentioned trading the share market conducts and transactions are complete using cash settlements.
To trade other forms of services such as equities, intraday trading, it is mandatory for the investor to adhere to the regulations laid by the securities and exchange board of India (SEBI) and hence demat account is compulsory.
Features of Demat Account:
Condition to Open A Demat Account:
- The individuals who plan to establish their trading in share market will have to open demat and trading account.
- Individuals of any age group can enter to operate demat account. They will have to submit Pan card, identity card proof, KYC documents. For beginners, Kotak Securities is the best as it provides the best advises. One must bear in mind that the investor must get full time support.
See lessWhat is Stock Split in Stock Market?
Stock Split is nothing but announcing more shares of a stock without changing its value. For Example: If the promoters announced the stock split of 1:1. Which means 1 free share for every 1 share held. So the investor will get 1 free share for every 1 share held in his demat account. In this case thRead more
Stock Split is nothing but announcing more shares of a stock without changing its value.
For Example: If the promoters announced the stock split of 1:1. Which means 1 free share for every 1 share held.
So the investor will get 1 free share for every 1 share held in his demat account. In this case the price of the stock will be multiplied by 0.5.
The overall valuation will remains same, but the no. of shares increased.
Benefits:
- More participation from retail investors due to less share price
- Eventually share price increases when there are more participants
See lessWhich Stock Broker is Best for Intraday Trading?
Both Zerodha and Alice Blue are best at brokerage and user interface.
Both Zerodha and Alice Blue are best at brokerage and user interface.
See lessWho is your Favourite Investor in India?
Radhakishan Damani, honest and humble investor.
Radhakishan Damani, honest and humble investor.
See lessShould I Invest When the Entire Market is Low?
There are two reasons behind the price fall, Sector/ company related negative news Generalized negative news (Ex: Corona Pandemic) Let's consider the first scenario. If there is any negative news regarding the company/ sector that you have invested in, then you have to check whether the news impactsRead more
There are two reasons behind the price fall,
Let’s consider the first scenario. If there is any negative news regarding the company/ sector that you have invested in, then you have to check whether the news impacts the company revenue in long term or it is just a short-term panic.
If it is a short-term disturbance, there is nothing to worry about the stock price, it will anyway recover in a few weeks/ months.
Now coming to the second scenario, let’s consider the recent pandemic situation. The entire stock market has fallen more than 40%. Most of the retail investors have sold their portfolios due to the panic situation. This panic selling has taken the market even more down than the actual effect.
Almost all of the Institutional Investors have invested a huge amount after the drastic drop. Eventually, they have earned a lot in just 2 to 3 months. The invested amount just got doubled in no time.
This is purely a psychological game, don’t be panic all the time. Just understand the market. Make a long-term view, everything will be alright. It’s just a matter of time.
So, it is good to invest in stocks for long term when there is a generalized issue in the country/ world.
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