Dematerialisation is the process by which physical share certificates of an investor are converted to an equivalent number of securities in electronic form and credited into the investor’s account maintained with his/her depository participant (DP). It is like having a bank account where instead of money, you hold securities in your account.

How can one convert physical holding into electronic holding i.e how can one dematerialise securities?

In order to dematerialise physical securities held by an investor, he has to fill in a DRF (Demat Request Form) which is available with the DP and submit the same along with physical share certificates one wishes to dematerialise. Separate DRF has to be filled for each ISIN Number. The complete process of dematerialisation is outlined below:

# Surrender certificates for dematerialisation to your depository participant.
# Depository participant intimates Depository (NSDL or CDSL) of the request through the system.
# Depository participant submits the certificates to the registrar of the Issuer Company.
# Registrar confirms the dematerialisation request from depository.
# After dematerialising the certificates, Registrar updates accounts and informs depository of the completion of dematerialisation.
# Depository updates its accounts and informs the depository participant.
# Depository participant updates the demat account of the investor.

What is an ISIN?
ISIN (International Securities Identification Number) is a unique identification number for a security. India follows the norms stipulates by Association of National Numbering Agency (ANNA) which is the international body for issue of ISINs. National Securities Depository Limited (NSDL) issues ISINs in India and a complete list of ISINs is available on their website: www.nsdl.co.in. Also note that ISIN of a security changes in case of certain corporate action such as split in share par value, consolidation of share capital etc. Hence you have to quote the correct ISIN at the time of giving dematerialisation request as well as at the time of transfer of shares.

Successful investors in the stock market have learned two things in their careers and they have learned these the hard way, by losing money. These investors know this first step in making wise decisions is to master yourself with two P’s. The second step is to decide which type of trader you are; this uses the two C’s. The do-it-yourself investor has to understand himself or herself and his or her trading strategies to be successful in the stock market.

The two P’s stand for personal responsibility and planning. Investors are always torn between fear of losing money or leaving money on the table (greed). This makes them leave this market too soon or stay in too long. Here are some stock tips to prepare yourself for the ups and downs of the market.

Investors can protect themselves by planning

Each trade needs to have a solid plan based on whatever criteria that trader is using. This plan includes an entry point, a point where the stock fulfills its move and profit is taken and a point where the investor limits the amount of money to be lost if this stock does not react the right way. This is the most important part of the strategy, limiting the amount of money that could be lost.
money at risk; the investment fund will be depleted and that person will be out of business.

One major stock investing tip is to never, ever let emotions get involved.  Before any investment decision, develop a well thought out and written plan, so that trader can take the profit at the predetermined “exit price” and let that certain stock rise and fall without exhilaration and anxiety getting involved in the equation. Sometimes there will be money left on the table, sometimes this will be the right decision and a winning trade would turn into a losing trade. It is only by mastering him or herself that an investor will be able to handle the normal movement of each stock.

This investment planning process includes the short-term and long-term goals of the investment account. A person who day trades will make their decisions on a short time frame and be in and out of the market several times in a day. A person who is holding the investment for weeks, months or years looks at a longer picture and is more comfortable with the normal ups and downs of the market as long as the long-term trend benefits them.

Market investors analyze the market based on two different criteria, called the two C’s

These two C’s are company information and chart action. Investors who rely on company information try to learn all they can about the company; Warren Buffett is one of these value investors. These people analyze sales information, inventories, industry trends and forecasts and the ranking of the company in that industry. They want to know if sales are increasing, if accounts receivables are climbing if earnings are being met or exceeded and if management is being changed.

These investors behave like the CEO of that company, because they truly believe in becoming partial owners when they buy equity securities. They are looking for long-term capital appreciation in the company and should be concerned with all aspects of normal business ownership.

Short-term traders make money using technical analysis

Do-it-yourself investors often focus their time on reading charts and looking for recognizable chart patterns. People who follow the day trading approach believe that the market repeats itself, and if the right patterns can be deciphered money can be made. By watching the price action on a chart, the day trader is looking for certain patterns; these patterns will tell that investor when to enter the market and at what price. Additionally these patterns tell investors when to get out of the market.

These stock investment tips from successful investors can help a novice keep more of his or her money while he or she is learning to navigate this intriguing industry, the stock market.