Finally, got time to catch up with stocks and investment.
I have decent returns in my stocks till now. I feel so happy at my basic intuition because a few of my stocks that I predicted have increased. Managing both work , MBA apps and stocks is very difficult. Luckily, because I learn a lot about business and stock markets in general because of investing, I am very interested in it. The first thing I do when I come to work is to open www.moneycontrol.com :) As I introspected, I became aware of a few mistakes that I was doing. These could be generalised to other domains as well.
1. If you are investing based on some one else's tip, you HAVE TO invest according to their game.
I should have learnt this in the first instance itself. One of my friends, a short term player, suggested me to buy "Uttam Galva" a steel scrip because it was performing well and was goign to post good results. A few days after the results, the price rose, there was a price difference of 8 Rs per share ( 15% returns ). My friend called me to inform that he was selling the scrip and I too could sell it. I thought about the long term prospects of it and refused to sell! My famous words were " I am a long term player and I am not a short term or medium term player" Ha Ha.. who cares whether you are a short term or a long term player.. all you need to do in the stock market is to make money !! Not surprisingly, the steel cycle reversed and I was left with the stock without proper exit option. Finally, I sold it at a loss.
I repeated the same mistake with another tip as well. I thought I knew "a lot" about fundamental investing and wanted to play with technical investing. I saw a scrip that was making huge volumes. I decided to play the scrip. I bought the scrip to sell it in 2 days from the date of buying, but then a broker told me about its good results the next quarter. Though the P/E was high ( in normal cases, I would have stayed far from the scrip ), I bought it and now the stock has come down by 50%. Want to learn technical investing haa?? Good lesson!
From now on, I have firmly decided.. Not to be sentimental about stocks or about being long term :) Let me see how much I stick to it.
2. Search for good tips /brokers - You could even spend money to brokers. I joined a yahoo group and figured out a few prominent people whom everyone in the group lauded! He was good, but he had his own shares of faults. He posted the scrips that increased and not those which fell down. Those investors who had seen his "expertise" and followed some of his tips were left in the dark. Later, courtesy of my friend, I saw another paid broker who was very good. The best thing was he noted all his tips and increase/decrease in each of his scrip and reported regularly and updated. This made me assimilate - cost for quality! I can definitely take up the little cost to get huge advantages and avoid huge losses too. Lesson : Choose good brokers/tips even if it costs you a good deal. The amount becomes negligible if its a good broker. Avoid group tips in general.
More to follow
I have decent returns in my stocks till now. I feel so happy at my basic intuition because a few of my stocks that I predicted have increased. Managing both work , MBA apps and stocks is very difficult. Luckily, because I learn a lot about business and stock markets in general because of investing, I am very interested in it. The first thing I do when I come to work is to open www.moneycontrol.com :) As I introspected, I became aware of a few mistakes that I was doing. These could be generalised to other domains as well.
1. If you are investing based on some one else's tip, you HAVE TO invest according to their game.
I should have learnt this in the first instance itself. One of my friends, a short term player, suggested me to buy "Uttam Galva" a steel scrip because it was performing well and was goign to post good results. A few days after the results, the price rose, there was a price difference of 8 Rs per share ( 15% returns ). My friend called me to inform that he was selling the scrip and I too could sell it. I thought about the long term prospects of it and refused to sell! My famous words were " I am a long term player and I am not a short term or medium term player" Ha Ha.. who cares whether you are a short term or a long term player.. all you need to do in the stock market is to make money !! Not surprisingly, the steel cycle reversed and I was left with the stock without proper exit option. Finally, I sold it at a loss.
I repeated the same mistake with another tip as well. I thought I knew "a lot" about fundamental investing and wanted to play with technical investing. I saw a scrip that was making huge volumes. I decided to play the scrip. I bought the scrip to sell it in 2 days from the date of buying, but then a broker told me about its good results the next quarter. Though the P/E was high ( in normal cases, I would have stayed far from the scrip ), I bought it and now the stock has come down by 50%. Want to learn technical investing haa?? Good lesson!
From now on, I have firmly decided.. Not to be sentimental about stocks or about being long term :) Let me see how much I stick to it.
2. Search for good tips /brokers - You could even spend money to brokers. I joined a yahoo group and figured out a few prominent people whom everyone in the group lauded! He was good, but he had his own shares of faults. He posted the scrips that increased and not those which fell down. Those investors who had seen his "expertise" and followed some of his tips were left in the dark. Later, courtesy of my friend, I saw another paid broker who was very good. The best thing was he noted all his tips and increase/decrease in each of his scrip and reported regularly and updated. This made me assimilate - cost for quality! I can definitely take up the little cost to get huge advantages and avoid huge losses too. Lesson : Choose good brokers/tips even if it costs you a good deal. The amount becomes negligible if its a good broker. Avoid group tips in general.
More to follow
2 comments:
You can invest using virtual money at www.game.marketwatch.com. Helps understand the market better before you foray.
Splendid blogsite you have here! Very interesting information. Please come and visit best affiliate programs sometime.
Post a Comment