Tuesday, November 13, 2012

Lesson 1
Rama wants to invest Rs. 1,00,000 and he want to earn a profit of 20% per year( Double that what he may get from bank FD). How he can get it from stock market.

1. Select the stock which is volatile ( Intraday high low are comparatively higher )
2. Selected stock must be from nifty 50 stocks.
3. Management and product must be in demand.
4. Suppose we select State bank of India for our study purpose.
5. Now study high and low price in last 3 months. Say high is 2300 and low is 1800
6.Take a mean of it i.e. (2300+1800)/2=2050.
7. Buy 5 shares when rate is 2050.
8. Buy if it goes down by Rs 100 and sell if it goes up by 100.

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