Large quantities@lower price or small quantities@higher price

Flashmark

Flashmark

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Hi All,

What do you think best option for small scale investor.
Large quantities@lower price(per share price is low) or small quantities(per share price is high)@higher price ?
eg:
BLUE@8.00 2000 shares OR
BFL@200 100 shares

My advisor told me buy Large quantities@lower price becase my portfolio is about Rs 50,000.

thanks

Universalgoal

Universalgoal

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so nothing wrong at his advice friend the main thing is you have to be mature and mature and .... M to the CSE Very Happy

Leo

Leo

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Since small , large quantities at lower price is fine.

hariesha

hariesha

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And book profits frequently. Buy 8/- Sell 8/40

mono

mono

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Flashmark wrote:Hi All,

What do you think best option for small scale investor.
Large quantities@lower price(per share price is low) or small quantities(per share price is high)@higher price ?
eg:
BLUE@8.00 2000 shares OR
BFL@200 100 shares

My advisor told me buy Large quantities@lower price becase my portfolio is about Rs 50,000.

thanks

There is no real difference between the two. Your investments should have nothing to do with the rupee value of the share. the primary factor to consider is the value of the company you are investing in. A secondary consideration should be how many shares of the company are in free float, but this becomes relevant only if you want to move around rs. 1mn+ per share within a short period of time.

bakapandithaya

bakapandithaya

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Yes. I used to large qty @ low price shares. As ur pf small, i think it is also good for u

Storm

Storm

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The way I see it, it doesn't depend on the price or the quantity.

Check the following example excluding any taxes.

You have 20,000 rupees.
Say you buy 100 shares of SAMP at 200.
Stock goes up by 10%. Value of a stock 220. your gain =20*100=2000.

Now with 20,000 you buy FLCH at 3. Number of stocks 20,000/3=6666
Stock goes up by 10%.. Value of FLCH 3.30. Profit per share .30
Total Profit 6666*0.30=2000

So its not a matter of the quantity. Its the percentage increase you expect from a share that you should consider

Friends, please correct me if I am wrong.

insidertrader

insidertrader

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Thing is when the price is a rupee, or 10 rupees or so, then if it goes up by 10 cents then it's a huge percentage increase compared the higher price stocks. For example BLUE etc.
Add that with the most of the uneducated investors in the market. So it is easy for the price go up quickly and make profit. Even just 10 cents increase will be profitable.
The other side is for few rupee shares there are huge number of sell and buy orders. So to get your order to execute is lot harder.

CSE.SAS

CSE.SAS

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Storm wrote:The way I see it, it doesn't depend on the price or the quantity.

Check the following example excluding any taxes.

You have 20,000 rupees.
Say you buy 100 shares of SAMP at 200.
Stock goes up by 10%. Value of a stock 220. your gain =20*100=2000.

Now with 20,000 you buy FLCH at 3. Number of stocks 20,000/3=6666
Stock goes up by 10%.. Value of FLCH 3.30. Profit per share .30
Total Profit 6666*0.30=2000

So its not a matter of the quantity. Its the percentage increase you expect from a share that you should consider

Friends, please correct me if I am wrong.

Nothing Wrong in ur calculation strom...

Roboticfx

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I think small quantities of lower price shares and small quantities of higher price shares of many different companies are the best. Very Happy

nivekrulz

nivekrulz

Stock Analytic

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you can call me a junior to CSE .. . i already invested in HVA and Fortland ,small amounts just to get familiar with the market's mechanism and now looking forward to go for higher investment.. rs 1 million plus. does any one have any recommendations how i should invest , and make my strategy to get the highest possible return. im interested in short-medium term investments.
please recommend me on
which shares are best -
how is should bid. whether to divide the overall sum and bid for small quantities regularly . or to bid with the whole sum at once .
how ,when , to place the sell order,and whether to sell all at once. etc. please advise me on how i should start

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Large quantities@lower price or small quantities@higher price

1 Large quantities@lower price or small quantities@higher price Tue Dec 06, 2011 2:41 pm

Flashmark

2 Re: Large quantities@lower price or small quantities@higher price Tue Dec 06, 2011 2:48 pm

Universalgoal

3 Re: Large quantities@lower price or small quantities@higher price Tue Dec 06, 2011 2:55 pm

Leo

4 Re: Large quantities@lower price or small quantities@higher price Tue Dec 06, 2011 3:03 pm

hariesha

5 Re: Large quantities@lower price or small quantities@higher price Tue Dec 06, 2011 3:08 pm

mono

6 Re: Large quantities@lower price or small quantities@higher price Tue Dec 06, 2011 3:21 pm

bakapandithaya

7 Re: Large quantities@lower price or small quantities@higher price Tue Dec 06, 2011 5:55 pm

Storm

8 Re: Large quantities@lower price or small quantities@higher price Tue Dec 06, 2011 6:20 pm

insidertrader

9 Re: Large quantities@lower price or small quantities@higher price Tue Dec 06, 2011 11:19 pm

CSE.SAS

10 Re: Large quantities@lower price or small quantities@higher price Wed Dec 07, 2011 2:41 pm

Roboticfx

11 Re: Large quantities@lower price or small quantities@higher price Sat Jun 23, 2012 2:47 pm

nivekrulz

12 Re: Large quantities@lower price or small quantities@higher price

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