Make the Most of Investment/Trading Ideas5 min read
In the previous episode of this series, we solved the problem of Anubhav, who was looking for ideas to trade or invest and begin his investment journey, and stated that we would help in getting him investment and trading ideas from SEBI-registered RAs and RIAs. I hope that along with Anubhav, you too have been exploring these ideas.
In this episode, we will talk about how to make the most of these investment and trading ideas shared by the PROs of the industry.
More users! More Ideas!! More Features!!!
In the month of January ‘23, we saw more than 32,000 users checking out these trading and investment ideas. And we know that different users have different trading and investing styles, different expectations, and different risk appetites.
But, stay with us! We are committed to serve each of you as per your specific need. First things first, we have increased the number of trading ideas from SEBI-registered RAs and RIAs (investment and trading ideas) available for you. We’ll now go over how to choose the idea that’s right for you.
Make a decision first as to whether you want to only trade or invest in the equity cash market or in derivatives.
Assuming you chose to look for equity ideas, you may do so by switching to the equity tab, which is located at the top, as seen in the image.
Next, choose how long you want your money to remain invested. If you’re a day trader and only want it for one day, choose intraday. Short-term ideas are a good option if you want to keep your money invested and get results within a month. Long-term calls are a better option if all you want to do is invest your money and wait around for a while.
Simply select the Derivatives tab to access the trading ideas for futures and options contracts.Disclaimer: The image is for representation purposes only and should not be considered as advice. The securities quoted are exemplary, not recommendatory.
Next is: how to read the ideas?
The RA or RIA who provided the trading or investment idea is listed immediately below the stock name, and the time it was suggested is listed immediately beside that.
Below that, you can read a few tags such as “short term,” “breakout,” “oversold,” and “momentum.” By using these tags, idea providers (RAs or RIAs) attempt to explain the rationale behind the idea.
Some common nuances –
Entry Price: the price of the stock at which a position (buy/sell) is to be taken based on the suggested idea
Current Price: the current market price of the stock.
The next two most important pieces of information are important from the perspective of discipline and controlling your emotions, which keeps a check on greed and fear.
Target Price: The price at which you should book the profit. One should never hold beyond the pre-defined target price to stay in the game for the long run.
Stop Loss: If the market trend goes the other way, this pre-defined price level suggests that you book a small loss and exit; never play on emotions. The RA or RIA who has given you the idea does not want you to hold on to this trade beyond this price level in anticipation of profit in the future. Do not hold your positions beyond Stop Loss.
Note: Don’t worry; the idea provider monitors the market, and based upon changes in the market trend, they can modify the information of a particular idea, such as the stop loss or target price.
Last Updated Time: If you see a date and time here, that’s the time when a modification was done. If you have executed an order based on that idea, it’s time to relook at the information and take corrective action.
When the idea provider closes the idea, its status gets changed to “Closed.” The idea provider (RA or RIA) may close the idea under any of the following three conditions:
- When the target has been achieved
- When the stop loss was hit
- If the market situation changes and the idea provider believes the idea is no longer valid (even if the target or stop loss is not met)
Remember that the RA/RIA who has asked to close the suggested idea will update the price at the time of closing the idea, so you can return to see what price it was exited at.
Restez à l’écoute; we’ll talk about the available features, such as filtering and sorting, as well as a few other features we’re working on to better serve you, in a later episode.
Till then, stay disciplined, don’t forget to set a target and a stop loss on all of your trades, and if you haven’t yet joined your 32,000 friends, then this is the time when you should. Explore the ideas here and now.
Investment in the securities market are subject to market risks, read all the related documents carefully before investing. Paytm Money Ltd SEBI Reg No. Broking – INZ000240532. NSE (90165), BSE(6707) Regd Office: 136, 1st Floor, Devika Tower, Nehru Place, Delhi – 110019.
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