Buying shares for the first time?

Buying shares for the first time?

Got your first paycheck and can't wait to buy your first lot of shares?

Hold on!

Before you start investing in the stock market, you have to get certain basics in place.

Follow this checklist to ensure you are on track.

1. Get a broker

People like you and me cannot just go to a stock exchange and buy and sell shares.Only the members of the stock exchange can. These members are called brokers and they buy and sell shares on our behalf.

So, if you want to start investing in shares, you can do it only through a broker.

Every stockbroker has to be registered with the Securities and Exchange Board of India, which is the stock market regulator.

You can either choose a broker (who is directly registered with SEBI) or a sub-broker (people licensed by brokers to work under them).

The Bombay Stock Exchange directory or the National Stock Exchange Web site will give you a list of brokers affiliated to them. Most of them entertain retail clients.

If you want an online broker, you can start by looking at the Web sites of some well-known online players: Sharekhan, Kotak Securities, ICICI Direct, 5paise and India Bulls.

• How to sell shares at the right time

2. Get a demat account

Gone are the days when shares were held as physical certificates.

Today, they are held in an electronic form in demat accounts.

Demat refers to a dematerialised account.

Let's say your portfolio of shares looks like this: 40 shares of Infosys [Get Quote], 25 of Wipro [Get Quote], 45 of HLL [Get Quote] and 100 of ACC.

They will show in your demat account. You don't have to possess any physical certificates showing you own these shares. They are all held electronically in your account.

Periodically, you will get a demat statement telling you what shares you have in your demat account.

How to get a demat account

To get a demat account, you will have to approach a Depository Participant.

A depository is a place where an investor's stocks are held in electronic form.

There are only two depositories in India -- the National Securities Depository Ltd and the Central Depository Services Ltd.

The depository has agents who are called Depository Participants. In India, there are over a hundred DPs.

Think of it like a bank. The head office, where all the technology rests and the details of all the accounts are held, is like the depository. The DPs are like the branches of banks that cater to individuals.

A broker, however, is not similar to a DP. A broker is a member of the stock exchange and he buys and sells shares for his clients and for himself. A DP, on the other hand, gives you an account where you can hold those shares.

To get a list of the registered DPs, visit the NSDL and CDSL Web sites.

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3. Get a PAN

The taxman demands that you get yourself a Permanent Account Number.

This is a unique 10-digit alphanumeric number (AABPS1205E, for example) that identifies and tracks an individual in the taxman's database.

Almost every money transaction demands the use of a PAN. These include:

~ When you get a job

~ When you file an income tax return

~ When you open a bank account

~ When you deposit cash of Rs 50,000 or more in a bank

~ When you open a bank fixed deposit of Rs 50,000 or more

~ When you open a post office deposit of Rs 50,000 or more

~ When you buy/ sell shares and mutual funds

~ When you buy/ sell property

~ When you buy a vehicle

~ When you take a loan: home/ personal/ other

~ When you install a telephone (or buy a cell phone)

~ When you pay in cash to hotels and restaurants against bills for an amount exceeding Rs 25,000 at a time

~ You also need to mention it in every transaction you have with the tax officials.

If you are going through a tax consultant, you need not worry. He will supply you with Form 49A (the application form for the PAN number) and give you a list of the documents he needs.

However, if you believe in doing things on your own, the process is really not that tedious.

You could visit the official Web sites of the Income Tax department or UTI Investor Services Ltd or National Securities Depository Limited.

Download Form 49A from any of these sites and follow the instructions.

You should get your PAN in the form of a laminated card within a month.

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4. Check if you need a UIN

This depends on how much you plan to invest.

The Unique Identification Number is the identification an investor needs to buy and sell shares or mutual fund units.

It is part of the Security and Exchange Board of India's attempt to create a database of all Market Participants and Investors, called MAPIN.

Who needs a UIN?

An investor who is involved in a single transaction of Rs 1,00,000 or more will have to quote his/ her UIN.

If you plan to be a prominent stock market player or a mutual fund investor and expect to deal with such huge amounts in the near future, you should get a UIN.

SEBI has appointed the National Securities Depositories Ltd that, in turn, has appointed Points Of Service agents. The NSDL Web site has a list of the POS agents.

Visit the office of a POS agent. Make sure you take an appointment before you go. As part of the application process, your fingerprints will be scanned and a photograph taken.

All you have to do is fill and submit an application form (there are separate forms for corporates and individuals). You can also download the form for an individual at the NSDL Web site.

Incidentally, the UIN is totally different from a PAN. The Permanent Account Number is an identification number for filing your income tax returns.

How to Automate Forex Trading

John A. Taxiarchos is a seasoned professional investor/trader with over 10 years of experience in the equities, futures and FOREX markets. John started his career as a registered representative for a Top Ten Investment Bank. As trading technology advanced, John shifted focus on trading strategies in the Forex market. He is currently a Market Analyst for Traders Choice FX at traderschoicefx.com.

Related Quotes

Symbol	Price	Change
SPY	82.75	0.00

{"s" : "spy","k" : "c10,l10,p20,t10","o" : "","j" : ""}

Using "Automated Trading Robots" or "Expert Advisors" or simply "EA", is easily done on the Metatrader 4 platform, but did you know you can have multiple expert advisors running at the same time on one platform?

For purposes of this article, I will use the forex Metatrader trading platform as an example, since it is a very user-friendly platform and can easily run expert advisors.

Assuming you have already opened a live Metatrader trading account with your preferred Forex Broker, go to the file menu in the top left corner to open a new chart. Click on "New Chart" and then choose the currency pair you wish to trade. You can also simply click on the Chart icon in the top left corner of the screen to save yourself an extra step. The chart will be shown in one of the tabs below, as the line in red indicates at the bottom of the screen on Exhibit "A". Follow the same steps to open your second chart, if you wish to trade the same currency pair with another EA. You must do this if you are to trade multiple EA's on the same currency pair, since you will not be able to trade multiple EA's on one chart.

Exhibit A

If you already had your first chart with the correct currency pair in the first tab, once the second chart is created, it will automatically go to the last tab of any other charts already there.

For convenience, you can move the chart you just created closer to your first chart, so you can easily toggle between the two charts. Click and hold on the chart you just created, then drag and drop on the tab next to your first chart and it will replace whatever chart was there. You can see in Exhibit "B" below that we have moved the second EUR/USD M15 chart next to the first one. Alternatively, you can minimize your chart and view them all on one screen, as shown below.

Exhibit B

Make sure the chart you want is identified on your screen, as indicated in Exhibit "C". You must choose the correct time frame at the top of your screen. You can see how the time frame can be adjusted by clicking on the different tabs, "M" for minutes, "H" for hours, "D" for days, "W" for weeks and "MN" for months. In this example, we have indicated a chart for EUR/USD on the "M15" or 15 minute time frame.

Exhibit C

If you have already downloaded your expert advisor, you are ready to begin the process of running it on the software in your own account. Begin by clicking on the (+) sign of the "Expert Advisor" tab under the "Navigator" section within Metatrader, as shown in Exhibit "D" below. Once the Expert Advisor tab expands, you should see the name of your newly downloaded expert advisor. If it is not there, try installing it again by following the instructions provided by your EA Developer.

Exhibit D

To start using your expert advisor, click and hold on the appropriate EA on the left hand side in the Navigator screen, then drag and drop the EA onto your chart. See Exhibit "E" below.

Exhibit E

Once you have dropped the EA onto your chart, a popup screen will be shown. Under the "Common" tab, you need to make sure that the "Allow live trading" box is checked, as well as the "Allow DLL imports" box in order for your EA to work properly. See Exhibit "F" below.

Exhibit F

Then click on the Inputs tab. You will need to verify that the "Value" settings are in accordance with the EA you are running. You should carefully read the instruction manual for the optimum settings given by the product developer.

IMPORTANT NOTE! You will want to make sure that the MagicNumber of one EA is different from the other. Otherwise, you may have a conflict when the EA's are trading multiple positions. They may not be able to differentiate one order from another. You can randomly assign a number of your choosing as well, by double clicking on the Value box. If the particular EA's you are using do not have a MagicNumber field, you will either need to write in the code or have someone do it for you. Another option is to put something in the comments section of the account history to help you differentiate, but that is only a temporary solution. Once you have verified the settings, click "Okay". See Exhibit "G" below.

Exhibit G

If you have checked the right settings and inputted the correct values, you will see the name of the EA and a happy face "J" in the top right corner of your screen. If you have not entered the information and values properly, you will see a sad face "L" instead. If you believe that the parameters have been set properly, make sure that your "Expert Advisors" tab at the top of the screen is clicked on. You should see a green arrow in the box. See Exhibit "H" below.

Exhibit H

Once the first chart is set up, you can go to the next chart by clicking on the correct tab at the bottom of the screen and going through the same process to properly install the next EA. You can do this on as many charts as you like with as many EA's as you like, but I would not recommend more than three EA's running at once. See Exhibit "I" below.

Exhibit I

Once you have properly installed your EA's on the different charts, you will want to verify that all of the information is correct and then you can just sit back and watch the EA's go! This one already made a trade, as indicated in the middle of the screen below on Exhibit "J".

Exhibit J

Should you have any questions about the performance, bandwidth or parameters of your expert advisor, you should consult your EA product developer.

Satyam Scam

Satyam Scam

Satyam scam: The legal perspective

It's the worst fraud in corporate India's history, Ramalinga Raju admitted to cooking Satyam's books for years; resigned as Satyam Chairman. Ram Mynampati will act as the interim CEO. Both the centre and the state government promised action against Satyam and Ramalinga Raju. The Andhra Pradesh government may also review Satyam's three Special Economic Zones, and all projects undertaken by Maytas.

Market regulator SEBI has also launched a probe into alleged insider trading in the Satyam stock and is also in touch with the exchanges for coordinated action. Commerce Minister Kamal Nath said there’s no question of the government taking Satyam over. Dalal Street also went into a shock after Raju's admissions; the Satyam stock crashed over 77% as 30% of its inverstor sold, pulled the Nifty down 192 points and the Sensex by 749 points.

PricewaterhouseCoopers said, “We have learnt of the disclosures made by Chairman of Satyam and are currently examining the contents of the statement. We are not commenting further on this subject due to issues of client confidentiality."

The Confederation of Indian Industry (CII) today expressed its shock and disappointment at the disclosures made by Mr B Ramalinga Raju on the financial position and financial statements of Satyam Computer Services. CII believes there is a need to immediately examine the loopholes in regulation, accounting, audit and governance that allowed such lapses to occur and address them with urgency. While the occurrence of such events in a major company is a matter of deep regret, CII believes it would be inappropriate for this to be the basis of questioning of general governance standards in other companies. Corporate India must however reflect on ways to demonstrate its quality of governance and enhance the confidence of stakeholders.

India Inc has been shocked by the Satyam scandal. Industry veterans have called for more rigid auditing processes and have called for a dramatic change in mindsets.

Deepak Parekh, Chairman of HDFC said, “I am surprised, I am shocked. It is a scandal, it’s a fraud of this proportion and I don’t think anyone expected this out of Satyam Computers. No one noticed for so long. What was the professional staff doing? What was the financial controller doing? Apart from the independent directors, auditors, there is a large organization in Satyam.”

Rajeev Chandrashekhar, President, FICCI said, “Obviously the unkind and the strongest argument would be that they were in some way a part of this, so either way I do not think that they are off the hook. I think that the independent directors have a responsibility and there is probably a discussion that needs to happen on what kind of directors independent directors are. Is it independence that is just a qualification or is it independence and the capacity to understand the business that is required when you actually get these independent directors on boards.”

Anand Mahindra, VC & MD, M&M said, “I am very, very angry at this development because I think it's done incalculable and unjustifiable damage to the image of India abroad in a generic sense and particularly to the image of Indian IT which was ironically what led the creation of brand India in the past decades. It’s done damage to the credibility of corporate governance, of independent directors in India's boards and what's most distressing is that these people have been role models for the new entrepreneurs in India. They were role models for a whole generation of people and you've created perhaps cynicism and disillusionment with that same segment. So I have to say, it is a strong word, but I am angry.”

source: www.moneycontrol.com

When To Buy Shares

The stock market is a leading indicator; it generally falls before investors realize just how bad the economy is. It also recovers much before economic activity picks up.

Perversely, that means stocks often plummet during good economic times and rally before recessions come to an end.

Which is why down markets typically offer good opportunities to buy valuable shares at low prices. Here is the low-down on the best indicator of when share prices offer good buying value . . .

The relationship between price and value is clear, but is exceedingly difficult to measure. While price can be observed with certainty, no one can ever be sure what constitutes true value.

Although it may be impossible to objectively determine current value, in the light of hindsight it is clear that price does tend to revolve around it. Consequently, several indicators have been developed which purport to measure value and thereby provide a reference point for the relationship of price to value.

The logic is simple: if the market is undervalued, buy; if the market is overvalued, sell.

Dividend Yield

Long the most popular of valuation measures, the dividend yield is calculated by dividing the indicated dividend rate for the next twelve months by current price.

This figure can be calculated for any market average, or most meaningfully, for all stocks in aggregate. At times investor enthusiasm has been so great that the market has accepted a much lower dividend yield than normal.

When yields are very low, stock prices are, by definition, high, and frequently overvalued as well. The market, then, has nowhere else to go but down, so it is not surprising that, historically, a low market yield has usually been followed by declining prices.

Conversely, when the marketplace is rife with pessimism, investors demand a much higher than normal dividend yield to induce them to buy stocks.

Since an excessively high yield means that stock prices are abnormally low relative to dividends and are undervalued, the market frequently responds to such situations by climbing higher.

satyam shares, satyam stock, satyam fraud, satyam computers, satyam news, satyam auditors

Wow! corruption,anyone? And look what happens,Satyam,boss Ramaliga Raju,resigns and cooly informing the world

‘No board member had any knowledge of the real situation. Accrued interest of Rs 376 crore in books is non-existent. About Rs 1,230 crore was arranged to Satyam, but was not reflected in the books,” Source-IBN-live.

Time to celebrate people,especially if you had invested in Satyam,you just lost some money and if you are rich enough it means,you can cheat others now.

See here for the entire letter(thanks Chirag).Reading the letter,one should also feel sad for the guy.After all he did start the company and in a bid to keep it,he had done this.I not am sure how true,is it that he didn’t gain anything out of it.But end of the day,he has been caught and the markets go bear again.And the fact that cases in India would take forever.

Taking the fact that the I.T. industry is already in trouble and also that the world is facing met downs,this is not going to help anyone.A lot of people might again loose their jobs.

Of course the auditors too would be answerable.How can someone,miss such large amounts? This might mean new laws,but maybe this would get them out?And the whole story doesn’t seem to be out yet,who else could be in it? Surely,a single person alone can’t engineer such a huge fraud?

And virtue seems to have a lot of value.maybe,we will be able to buy it also,sooner than later.Say Mr.X is a good person,so just pay him and his goodness will rub on to you.Who cares anyway? All these scandals reflect,is the “innate goodness” of human beings.Can’t people be truthful to themselves? And no,I am not claiming money is evil ,bad etc,Shouldn’t a person get only what he really is worth? And as far as I am aware,they still teach you not to lie in kindergarten.,so when did it all start anyway? maybe we should just each kids to lie.

Teacher:- Have you completed your work?

Boy:-yes,mam.

Teacher:-Show your book.

Ha good you haven’t done it.Now that is my boy.Keep it up,here are five stars for you.

Or am I speculating too much?

Special trains for Pongal festival : Jan 2009

Special trains for Pongal festival : Jan 2009

CHENNAI: Southern Railway will operate additional special trains for the Pongal festival.

Nagercoil – Chennai Central Superfast Specials: Train (0618) will leave Nagercoil at 4.30 pm on January 4 and 11 (Sundays) and arrive at Chennai Central at 8.45 am the next day.

In the return direction the train (0617) will leave Chennai Central at 12.30 pm on January 5 and 12 (Mondays) and arrive at Nagercoil at 5.15 am the next day.

Nagercoil – Chennai Egmore Specials: Train (0638) will leave Nagercoil at 7.40 pm on January 5, 12, 19 and 26 (Mondays) and arrive at Egmore at 8.50 am the next day. In the return direction, the train (0637) will leave Egmore at 3.40 pm January 6, 13, 20 and 27 (Tuesdays) and arrive at Nagercoil at 5.30 am the next day.

Advance reservation for the above trains will commence on December 30, according to a Southern Railway press release


source: www.hindu.com