Do's and Dont's of share trading or share market business

Do's

• Always deal with the market intermediaries registered with SEBI / Exchanges
• Give clear and unambiguous instructions to your broker / agent / depository participant
• Always insist on contract notes from your broker. In case of doubt of the transactions, verify the     genuineness of the same on the Exchange website.
• Always settle the dues through the normal banking channels with the market intermediaries
• Before placing an order with the market intermediaries please check about the credentials of the companies, its management, its fundamentals a recent announcements made by them and various other disclosures made under various regulations. The sources of information are the websites Exchanges and companies, databases of data vendor, business magazines etc.
• Adopt trading/ investment strategies commensurate with your risk bearing capacity as all investments carry risk, the degree of which vari according to the investment strategy adopted.
• Please carry out due -diligence before registering as client with any intermediary. Further, the investors are requested to carefully read and understand the contents stated in the Risk Disclosure Document, which forms part of investor registration requirement for dealing through brokers in Stock market.
• Be cautions about stocks, which show a sudden spurt in price or trading activity, especially low price stocks.
• Please be informed that there are no guaranteed returns on investment in stock markets.

Dont's

• Don’t deal with unregistered brokers / sub-brokers, intermediaries
• Don’t deal based on rumors generally called 'tips'
• Don’t fall prey to promises of guaranteed returns.
• Don’t get misled by companies showing approvals / registrations from Government agencies as the approvals could be for certain other purposes a not for the securities you are buying.
• Don’t leave the custody of your Demat Transaction slip book in the hands of any intermediary.
• Don’t blindly follow media reports on corporate developments, as they could be misleading.
• Don’t get carried away with onslaught of advertisements about the financial performance of companies in print and electronic media.
• Don’t blindly imitate investment decisions of others who may have profited from their investment decisions

Warren Buffet's Stock market investing ideas - basic investment rules

Warren buffet’s stock market investing tips

 

1)      There are no called strikes in the ballgame of investing.

You do not lose a single penny by passing on any given investment. Even if someone else hits a homerun with it, doesn’t mean that you are missing out. That said, you will have to swing the bat if you ever want to get anywhere. Just make sure it is a good pitch.

 

2)       Do business with people you like and who share your objectives

Should not be only consideration when making business decisions. We have all worked with some people who we would have paid any amount NOT to work with. If we could quantify joy and happiness, it would be easy to see that working with people you like would far outweigh the joy received by getting more money with bad business partners.

 

3)      Invest in companies selling products that consumers are not concerned with price.

4)      It’s not about the biggest motor, but the most efficient motor
A smaller company that is run efficiently is going to do better for their shareholders than a mammoth company with wasteful spending.

5)      Don’t worry about what the stock market will do; focus on what the company will do.

Good companies can and will go up even in the middle of falling market

6)      With Stocks it is hard to know WHEN something will happen, but it is easy to know WHAT will happen.
Everyone seems to be concerned with the WHEN, but focusing on the WHAT seems to yield a nice fruit as Warren has proved.

7)      Find companies with endless demand for their products.
Funeral homes will always be needed, because people are still dying.

8)      Leave your children enough money so they can do anything, but not enough that they don’t have to do anything.

9)      Decision making abilities fade as cash flow increases.
If you only have $5 in your pocket until the end of the week, it is likely that you will make a good decision with it, because it is all you have. On the other hand, if you have $100 for the week, your decisions regarding a $5 purchase are far less critical since you have another $95. Therefore, people tend not to treat those decisions with the same respect they would if it was their last $5.