Sunday, September 13, 2015

FEW POINTS FOR BEGINNERS



Courtesy : Taxguru .in

Stock Market Investment is a good method of making money only When you do it with much care and attention. Most people think that stock market is good place to make money. If so all stock traders and stock market investors must become multi millionaires and billionaires. But the reality is not that. When you try to invest in stock market, learn the market and the stock well and starts only after collecting all information and necessary analysis.

You must be aware that nobody can become rich through stock market within a short time. When you enter into stock market you should know this fact and go ahead only with the real facts. You should not trust the advertisements and rumors. Learn everything well and go ahead with confidence.
Invest in a particular stock or in a particular sector only after doing careful market study and independent analysis of the stock you wish to buy. You must not believe others, even if it is the top most investment guru Warren Buffet, without proper self study.

Give much attention to stock investment and watch the market carefully. You never think that you can be a good investor  by doing stock trade just like a part- time work or as a hobby. You can do stock trade as part time work or as hobby, but the net result will be a heavy loss.Do not follow blindly the activities of the other traders, friends or large scale investors. If you follow others the net result will be a loss. You may watch chess while others playing. There may be many ideas in your mind when others playing. But that might not be the idea of the player. Just like in stock trading/investing  you could not watch and follow others.

When you invest in stock market, it must not be for a short period. If you do so no doubt you would be a looser in stock market. Stock market investing  is just like planting trees. You could not harvest in a short while. Wait enough time to get a good harvest.When you invest in stocks of a particular company, study all the activities of the company including their business, management, financial status, popularity, goodwill etc. You must know that if you invest in shares of strong companies no doubt you can yield a good profit, if you are ready to wait for enough time.

Do not be panic while selling or buying shares. The market trend be tempting you to sell or buy shares in a particular time. Whenever you sell or buy stock, do it only after a good market study and analysis. This is not a gambling. This is a real scientific trade which has its own principles and methods. So don’t be panic or greedy.

Never enter in stock market with borrowed money. If you take a loan or borrow money from any friends or relatives, to invest in stock market, you could not refund it in right time. The stock market is volatile and one could not foresee the real position of stock market after a stipulated time.Never invest in stock market with the money you are earmarked for a specified purpose. You could not realize the money when you are urgently needs the money, unless you are not ready to bear a heavy loss. The money you invest in stock market could not easily realize with profit while you hardly need the money.

Do not follow rumors, analyst report, hot stock tips or recommendations of the stock broker. Their strategy or ideas may not help you to get a good profit. They are making such recommendations as a common strategy which may not be suitable for you. All ready made dresses are not suitable for all. You also have a dress in your own measurements. So do not follow blindly such common evaluations.
Diversify your portfolio in a balanced way. Do not over diversify or under diversify. Do it an optimum way of diversification. Only experience can help you here. You can be a good stock trader in a certain period of time with hard work and quality market study. Always remember that Rome is not built in a day.

If you follow all the above mentioned points , you can be a profitable stock investor  and can make money from stock market investment in rainy days or sunny days, in bullish trend or in bearish trend.

Stock Market Investment is a good method of making money only When you do it with much care and attention. Most people think that stock market is good place to make money. If so all stock traders and stock market investors must become multi millionaires and billionaires. But the reality is not that. When you try to invest in stock market, learn the market and the stock well and starts only after collecting all information and necessary analysis.
You must be aware that nobody can become rich through stock market within a short time. When you enter into stock market you should know this fact and go ahead only with the real facts. You should not trust the advertisements and rumors. Learn everything well and go ahead with confidence.
Invest in a particular stock or in a particular sector only after doing careful market study and independent analysis of the stock you wish to buy. You must not believe others, even if it is the top most investment guru Warren Buffet, without proper self study.
Give much attention to stock investment and watch the market carefully. You never think that you can be a good trader by doing stock trade just like a part- time work or as a hobby. You can do stock trade as part time work or as hobby, but the net result will be a heavy loss.
Do not follow blindly the activities of the other traders, friends or large scale investors. If you follow others the net result will be a loss. You may watch chess while others playing. There may be many ideas in your mind when others playing. But that might not be the idea of the player. Just like in stock trading you could not watch and follow others.
When you invest in stock market, it must not be for a short period. If you do so no doubt you would be a looser in stock market. Stock market trading is just like planting trees. You could not harvest in a short while. Wait enough time to get a good harvest.
When you invest in stocks of a particular company, study all the activities of the company including their business, management, financial status, popularity, goodwill etc. You must know that if you invest in shares of strong companies no doubt you can yield a good profit, if you are ready to wait for enough time.
Do not be panic while selling or buying shares. The market trend be tempting you to sell or buy shares in a particular time. Whenever you sell or buy stock, do it only after a good market study and analysis. This is not a gambling. This is a real scientific trade which has its own principles and methods. So don’t be panic or greedy.
Never enter in stock market with borrowed money. If you take a loan or borrow money from any friends or relatives, to invest in stock market, you could not refund it in right time. The stock market is volatile and one could not foresee the real position of stock market after a stipulated time.
Never invest in stock market with the money you are earmarked for a specified purpose. You could not realize the money when you are urgently needs the money, unless you are not ready to bear a heavy loss. The money you invest in stock market could not easily realize with profit while you hardly need the money.
Do not follow rumors, analyst report, hot stock tips or recommendations of the stock broker. Their strategy or ideas may not help you to get a good profit. They are making such recommendations as a common strategy which may not be suitable for you. All readymade dresses are not suitable for all. You also have a dress in your own measurements. So do not follow blindly such common evaluations.
Diversify your portfolio in a balanced way. Do not over diversify or under diversify. Do it an optimum way of diversification. Only experience can help you here. You can be a good stock trader in a certain period of time with hard work and quality market study. Always remember that Rome is not built in a day.
If you follow all the above mentioned tips, you can be a profitable stock trader and can make money from stock market investment in rainy days or sunny days, in bullish trend or in bearish trend
- See more at: http://taxguru.in/finance/stock-market-investment-tips-beginners.html#sthash.ZLB1HN2l.dpuf

40 comments :

  1. very well said sir. Especially the part which says do not follow rumours, hot tips. Need to read and remind us daily. Thanks for sharing

    ReplyDelete
  2. Nice article sir, Thanks...........

    ReplyDelete
  3. Thanks V.P Sir for this valuable knowledge.

    ReplyDelete
  4. Nice article sir but having issues in learning.....Where to start.
    How to learn , how to identify Good stock i.e understanding, not able to find right source.

    ReplyDelete
  5. Sir, nice points to share and remind investors! I am following your blog last few months and pleased to read your postings. One take away, your comments and postings helps to cool normal investors, this is important to think straight. Thanks and regards

    ReplyDelete
  6. Respected sir, could you share your opinion on lawreshwar polymers ltd and lovable lingeries ltd.

    ReplyDelete
  7. Dear Sir,

    Your view on the following real-estate stocks and on Reality Sector. I am very much interested this sector as the reality prices are at rock bottom when compared to previous highs. I understand that most of these companies have huge debts.

    DLF
    Unitech
    HCC
    NCC
    HDIL

    Were there any recommendations in this sector in the past sir?

    Thanks,
    Lakshmikanth

    ReplyDelete
    Replies
    1. I don't think NCC and HCC can be called as real estate companies .They are mainly in construction .
      From real estate sector I am tracking only three companies, Godrej properties,Sobha Developers and Mahindra Lifespace

      Delete
  8. Sir,

    Kindly share your view on Arvind. Is it a good bet as the company is moving from textiles to ready made garments and for this they have recently tied with Sephora.

    Thanks
    Mukesh

    ReplyDelete
  9. Sir, Could you please share your views on JKTYRE and KESORAM deal? Thanks for all your service to small investors like me.

    ReplyDelete
  10. Hi, ur view on Adani Transmission?

    ReplyDelete
  11. Sir, request your views on ENIL. It is expected to consolidate its leadership position in industry after the auctions. May not be cheap but looks to be valued fairly.

    ReplyDelete
    Replies
    1. ENIL is the sector leader and a decent one , try in corrections.

      Delete
  12. Replies
    1. Sir .ur views on chemfab alkalies and repco home

      Delete
  13. What is your view on dynacons technology with new promoter.

    ReplyDelete
  14. Dear VP,
    aimco AR is released. it is mentioned as "To arrange cost efficient funds for the growth plans of the company" in key objectives but no details were given. how do you see the future of the company. can we average at this price?

    ReplyDelete
    Replies
    1. Wait till some more clarity emerge about this

      Delete
  15. A beginner should always remember these trading aspects to achieve something.

    ReplyDelete
  16. Hi sir, thank you very much for your timely gift of pfrl. The write up forced me to research and develop conviction. U r amazing!!

    ReplyDelete
  17. Sir i have read ur positive on wonderland for long term
    How about adlabs imagica

    ReplyDelete
  18. Hello sir,

    Could you please share your opinion on Mercator and IFGL Refractories?

    Regards,
    Varun

    ReplyDelete
  19. IFGL is an already suggested one at lower rate , not tracking Mercator.

    ReplyDelete
  20. Hi Sir, Thanks for guiding us. As i follow your blog for a long period, i could feel that Salzer electronics is a value buy at cmp. is it advisable to buy and hold for 2 year horizon.

    ReplyDelete
    Replies
    1. Not to comment anything about investing in any stock with a per-determined fixed time frame.

      Delete
  21. Dear vpji,
    Just saw on one business channel that asian paints is planning for capacity expansion in karnataka at cost of 2300 cr. in phased manner.does this affect mold tek expansion plan also?
    Any update after AGM which is worth sharing.l would like to know your views as stock is on sideline since many months

    ReplyDelete
    Replies
    1. Expansion plan of customers in their core business will be always positive.

      Delete
  22. Sir
    What is your view on ambika cotton and shrew Hari chemical export ? Thanks KJ

    ReplyDelete
  23. Sir any views on smruthi organics pls

    ReplyDelete
  24. Hello sir, Can you please share your views on pennar industries , thanks in advance.

    ReplyDelete
  25. Dear Sir, may I say that your post is wonderful and serves as a great introduction for people who have just forayed into the stock market. I will just like to add the following points to this discussion.

    1. Learn the warning signals you should be monitoring on a regular basis.
    2. Rigorously research and determine what your bear market game plan will be BEFORE the market takes a dive and panic sets in.
    3. Identify what triggers you need to see in the market to give you the green light to activate your plan.
    4. Commit to sticking to your plan even through the chatter of the pundits and news media.

    Source: http://www.amazon.com/Avoiding-Bear-Traps-Factors-LakeshoreATS/dp/1502472090/ref=sr_1_1?ie=UTF8&qid=1441465112&sr=8-1&keywords=avoiding+bear+traps

    ReplyDelete
  26. Sir I have been following your blog since one year, I bought share as you suggested and now in a good profits. Thanks . I need to know though you have suggested to quit Bilcare and HINDTIN i have averaged and keeping it for a long time and my time limit is that i will transfer these funds to my children and for short time. Kindly advise.

    ReplyDelete

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