Investment in delivery based trading

Posted by Admin | Posted in Tips on Investment | Posted on 30-11-2009

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Delivery based trading means buying shares and holding them for certain period of time is called delivery based trading.
The shares you bought will be in your demat account.
Once you take delivery of shares you can hold them as long as you want. To take delivery of shares, you must have sufficient funds in your account. You don’t get any margin to buy shares in delivery.
If you have Rs.5000 means you can buy shares worth of Rs.5000 and not more than this

Tips for shares investment in delivery based trading

Please study following points, carefully, and get best returns in short period of time.
Basically, Delivery based trading can be minimum one week, one month or couple of months. How long to hold your scrip’s/shares will depend on other technical indicators and averages.

How to select best scrip’s
There are thousands of shares/stocks, which one is best for delivery trading and which one will give maximum profit in short period of time. Please have a look following selection criteria points.
Points to remember for fundamental screening,

1. Sector – 50% of stocks rise and fall is directly related to the strengths and
weakness of its industry group.

2. Never lose more than 1-2% of your total amount on any one trade.

3. Promoters holding more than 40% indicate safety for retail investors.

4. FII holding minimum 20 and maximum 25 is safe for retailer, not much volatility.

More FII investment = more volatility.

5. Liquidity – buying and selling of shares minimum 1L/day.

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