Frustrated Engineers

                                                INVESTMENT 1

                                             
This blog is for all those who want to earn extra money while doing there current job.
Guys keep in mind your hard earned money need special care and it is you who can do it no one else. Other will care for there own profit and margin.

Here in this blog and the subsequent blog I will mostly be explaining
i) How to invest in stock market?
ii) How to pick up share?
iii) What point should be kept in mind while investing?
iv) What should be our target?

For investing in share market you need a DEMAT account which you can easily get by contacting any bank.

After your account is opened you will be given a login ID and a password.
This you will use to access your DEMAT account and trading.

Now come the real investment part. If you are a novice investor the first quality that you should have is "Patience". Just like any start-up company need time to grow , you should also give time to your investment.

There are two type of investment
i) For short duration generally called Trading.
ii) For longer duration for investment purpose.

Short duration trade is done keeping a tight STOP Loss.

STOP LOSS - This is the price that we set when we purchase any stock.
This helps us to determine when to sell our stock. If our stock has reached that level we will sell.
Stock generally moves on the news flow. If there is positive news the stock moves up and trader find an opportunity to trade. Like on 22nd June there was AGM meeting of INFOSYS and the stock moved nearly 2.75%.

This was a news based movement in stock price of Infosys. The traders  were hoping some good announcement from the company. In coming few days when the stock will gain 5-6% they will sell the stock and book profit.

ii) Long Term investment is done with a time horizon of 3-5 year even greater than that. Here we prefer mostly Blue chip companies most preferably Large Cap and Selective Mid Cap companies. Before selecting any company for investment we check there balance sheet. Balance sheet contain all the details of companies debt and liability. Before investing it is always a good practice to check the companies previous balance sheet. If companies has debt most of the earning will go in repaying those debt and they are left with no money for further investment. Then as an investor we will make no money in those companies share. So please keep away from those stocks.

So guys hope you get a basic of investment. In the coming blogs I will take example of stocks that has moved that particular day and I will give reason why it has moved and why the investor should invest or keep away from those stocks.