Placing your first trade properly

You now have the accounts and you know what a trade costs. Here is how to make the first one uneventful.

Before you place it

1. 1Know what the company does. If you cannot explain it in a sentence, stop here.
2. 2Decide your price before you open TMS, not while watching the screen move.
3. 3Use a limit order. Name your price rather than accepting whatever is going.
4. 4Check the cost of the round trip, including both DP charges.
5. 5Start small. Your first order is a test of the process, not of your judgement.

After it fills

• Check the contract note against what you intended — price, quantity, charges.
• Wait for settlement and confirm the shares appear in your Demat.
• Write down why you bought it. One or two sentences.

Chapter 4 covers IPOs, FPOs and right shares — for many people in Nepal, that is where investing actually starts.