How to invest in the market?

Learn proper principles:

1. Do not chase past returns. People that buy funds because they have done well in the past are doing exactly that.

2. Do not market time. Market timing is buying based on your (or your newsletter, or your TV, or neighbor's) guess about what is going to happen in the future. Even if someone knows something, you've already missed the boat. The price already reflects what you just found out.

3. Use index funds. Over time, index funds outperform actively managed funds, mostly because they do not have those high expense ratios. Some actively managed funds do beat their index, but the ones that do usually do not do so consistently. So why gamble? Use index funds. If you want to use a few actively managed funds, make sure that the costs are very low. Vanguard has some good ones.

5. Diversify. Don't put all your eggs in one basket. Own a mix of bonds, domestic equities (large, small and mid cap funds), an international fund and perhaps a REIT (Real Estate Investment Trust) and emerging market fund. Four to six funds is all you need. Know your risk tolerance and set up an appropriate asset allocation. Rebalance as needed.

6. Consider taxes. Use the least tax efficient funds in your tax-deferred accounts and the most tax efficient funds in your taxable accounts.

7. Avoid financial advisors. Their high fees will greatly hurt your returns. Studies show that people using 'financial advisors' do much worse than people doing their own investing. (But do your own investing RIGHT.)

Bottom line: Set up a tax friendly, low-cost, diversified portfolio based on your risk tolerance and then, as they say, 'stay the course'. Leave it alone unless your risk tolerance changes or you need to rebalance.

http://www.saveyournestegg.com/diy.html

First of all, you take the time to read a couple of books on investing so you actually know what you are doing. Then you can probably set up a brokerage account with an on-line broker and start picking some stocks.

buy At Different level of sensx 13000 12000 11000 10000 9000 8000 7000 and sell at differet level

Best Wishes and Regards,
=====================
Manish Buchasia
M. S. Buchasia & Associates
(Practising Company Secretaries)
410, "SATYAM MALL" Nr Kameshwar School,
Opp Samman, Jodhpur Cross Road,
Satellite, Ahmedabad-380015, Gujarat
Mobile :
09898055367
Telephone :
(O) 079-40030098, 30023620 (Fax) 40030098 (R) 40060098
Email :
manishbuchasiacs@gmail.com
manish_buchasia_cs@hotmail.com
Chat :
manish_buchasia_cs@yahoo.com
manishbuchasiacs@gmail.com

IÂ´ve been investing for more than 20 years and trading for almost 14, and I can tell you that if you want to make BIG and FAST profits, I recommend you trading rather than investing, trading can help you to go from rags to rich.

If you are investing, you must have already achieved some degree of financial success, long term stock investing and FOREX can help you become much richer than you are today.

My experiences as a Nasdaq Market Maker, Head trader of several brokerage firms, and currently as a professional trader and private hedge fund manager, I can suggest you that:

We trade because we want quick, short term profits on a consistent basis. We want to cash flow the market. Milk it like a cow.

Make consistent, small, short term gains rather than trying to hit a home run on every trade. Don't ever forget that.
Don't marry a stock, marry the idea of making money trading stocks. That's the only way to do it.

For me "All stocks are equally worthlessâ€

I don't hold on to any illusion that the stock market will continue to go up and provide a nice retirement for me.
I could care less which way the market goes. It's irrelevant to me if the market goes higher, crashes or moves sideways for the next 50 years. I really could care less. Stocks are just four letters with two prices next to them that I use to make a living trading.

Trade ONLY when you have a clear, easy and identifiable advantage, because without a CLEAR EDGE your odds of success are NO better than a flip of a coinâ€¦ ThatÂ´s why so many new traders (and investors) lose money.

Take a look at any daily chart of any index or stock and you'll probably see the most volatility and the biggest opportunity for profit during the first Hour of the stock market's opening.

The popular thinking and conventional wisdom is that you should wait about an hour before you start trading.

But if you do, you'll miss the big, fast moves that stocks make as all the amateurs let their emotions out through their
online accounts, usually right after they read some news headline or hear Maria Bartiromo go off about a stock on CNBC.

It's easy to see why trading the open is the market's prime time for profiting from other online traders.
The market's open is very volatile - that is the perfect environment for LARGE, FAST profits.

Learn to trade as a professional Market Maker ,not as an emotionally driven amateur trader or investor with few thousand dollars in an account at Etrade.

There isn't any other time during the day or any stock you can invest in, that can make you 1, 2, 3, 5, 7 or more points
in minutes OTHER than during the first hour the stock market is open. That's why I love trading the open so much.

I trade only when I have an edge and that means "only the first hour the market is open".

If you are a beginning trader, you can give yourself an unfair advantage in the market trading this way.

I can carry on with the advises about how to make money trading, but if you ask me:

"What is the best thing you can do for me?

I will say:

Give yourself a BIG favor and go to this "Top Secret" site and learn how to get the BEST stocks that will make the largest and fastest day trading profits youÂ´ve ever seen, all by yourself...

www.onehourtrading.com

After you review this site you wonÂ´t need system, strategy, book, software or mentor to tell you what to do,
you will be able to profit HUGE every day.

Good luck and good trading,

John Fontaine

www.vfmdirect.com
www.dlngroup.com
www.valunotes.com
www.jayan.bravehost.com
http://jayan.bravehost.com (Free yahoo messanger intra calls-Free Investment idea yahoo group)

You should open a demat account and trading account with any of the stock brokers nearby your place.

You can look at this good tutorial here to learn about the basics:

You have asked a very open ended question. However, we expect that you refer to the equity/stock market.

To put your thoughts in perspective, it is a very dynamic environment with many participants who have their own agenda. Furthermore, there are no free lunch tickets like it is in any other field of endeavor.

The first step would be to restrict your stock list to the top 50 stocks which would be investment grade by default. Next you would have to develop a system to acertain whether they are priced below their intrinsic value. If they are you may buy the stocks; with the expectation that in the future they would appreciate to price levels where you are able to sell them at a profit.

What we have described above seems simplistic. So, to gain a better understanding of investment and its management we would recommend that you read a few books on the subject. You may consider reading the following books for starters:

1. "Security Analysis" by Graham & Dodd
2. "The Intelligent Investor" by Bejamin Graham
3. "One up on Wall Street" by Peter Lynch
4. "Investment Analysis & Portfolio Management" by Prasanna Chandra

And you would be surprised to know that this is just the starting point.

Happy investing,

Akash
http://www.narachinvestment.com

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