Monday, February 11, 2008

Equity Gyan: Is Trading in Stock – Good or Bad?

HBJ Capital Report:-

There is nothing called "good or bad" in this world. Risk is involved in doing anything, risk is there in doing job, risk is there in quitting job, when you come to office risk is there on the way especially on hosur road or OMR road, risk is there when you eat something,

So what is “risk”, it is nothing but "ignorance" is called risk. If you get enough knowledge of anything risk will get minimised, so trading in stocks is one way to make millions of rupees but again with complete knowledge else bankrupty is round the corner for those who plays without knowing the rules of game!!!

Stock trading can be done in different ways…

#1. Intra day margin trading where you need to squreoff within a day.

– This is very dangerous game, market movement can’t be predicted in 6 hrs market period, movement during the day will be purely based on human behavious through out the day and it is not one person but millions of mind work together combined with lots of news/rumors flowing through, getting your act right in this scenario is not only difficult but impossible. HBJ Capital team never suggests anyone to go for this.

#2. Buying/Selling stocks on margin where in you get 4/5 days to squreoff

– This can be better than intra day trading, at least you get 4/5 days to confirm the movement of your stock as per your research, anyone with good knowledge of technical charts can make money in this. Reading technical charts is just like reading into the future of the stock, yes, one can very well predict the direction of stock/market movement from its chart. HBJ Capital team suggest this as better option than intraday trading, but very few brokers allow you to keep margin money for 4/5 days only if you have good trading history or good credientials.

#3. Future trading

This is highest risk but highest return trading instrument, you need to have Rs 50K to 100K just to start trading on this, an expert guy in future trading can earn as high as 30-40% return per month, here you can take an exposure and very well keep it for a month period. HBJ Capital’s daily market update on this site can be very useful for you when you do future trading, 80% of time we have predicted correct!!!

#4. Option trading

– This is another trading instrument works well with small investors, it need just Rs5-10K, and you can very well earn close to Rs20-30K per month with an investment of Rs50K in option trading. HBJ Capital team suggests this to small retail investors, market watch on this site will help you to make your move.

-HBJ Capital Team.

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