Saturday, April 9, 2016

5 Characteristics of a Successful Stock Market Investor

 Courtesy :finweb.com


There is no doubt that some people simply are better at playing the role of a stock market investor than others. When talking about somebody who has successfully worked his way through investing in the stock market, it is never a matter of luck but rather certain personal characteristics that decide how successful they are. While the best investors seem born with all the right characteristics, it is possible to discover and implement them yourself. Believe it or not, much of what you need to know is just stock market investing basics.

Personal Preparation.

The key is to always have a plan when you invest. Before you do anything, you need to know when you will purchase stock and when you want to sell. Equally important is knowing what you will do should things go wrong. And most importantly, you always need to know what your ultimate goals are, and be sure that all your investment roads lead to that end.

Research

You should never invest in a company without knowing where it’s coming from, where it’s going, how their products stack up against competitors. It is also important to know how that particular market is doing in general. Ultimately, you are putting your faith in a company that will make you money over some period of time, but it does not have to be based on complete blind faith. Do your research, and make an informed investment.

Knowledge.

If you don’t know what the market is doing right now, you have no business investing in it. Everybody pretty much has the same information, but everybody interprets that information a little different, which is where some investors succeed where others fail. The key is to find information that is as unbiased as possible, and milk it for everything it is worth.

Be Emotion-less.

Using unbiased information is useless unless you are going to be equally unbiased. Do not allow  past exploits and failures get you down or hold you back. And, you cannot allow success to sway you either. Just because you made a decent bank on a particular investment from ten years ago, is no reason to continue putting up your money for them. It is also no reason to be getting headstrong and overly confident about your investment practices.

Be Realistic
 

You must also be realistic. No investor is going to strike it rich right away, and no investor is going to have a perfectly flawless track record. Understand that sooner or later, you’re going to lose a little money. But if you follow the first four steps of this guide, combined with a little common sense, you can minimize how much that loss is and go on to reap greater rewards.

These five basic principles should help you to get on the road to proper stock market investing and help you remember your focus.

61 comments :

  1. Dear vp sir, kindly post a new multibagger for us plz.......

    ReplyDelete
    Replies
    1. I don't know why Investors are talking only about multibaggers. If you are a disciplined investor your portfolio should be a balanced one and stocks with different risk-reward ratio should be there.

      At current valuation, Cox and Kings and Poddar Pigments seems interesting.

      Delete
  2. Hello VP sir, Your views on Amines and Plasticizers ?

    ReplyDelete
    Replies
    1. It is an already suggested stock @ Rs.108 . Thereafter company given 1:1 bonus and 5:1 stock split .Adjusted to this , still stock returned about 100% . No new recommendation at this level.

      Delete
  3. sir,your views on Avantel please

    ReplyDelete
    Replies
    1. Avantel is an already suggested stock @ Rs.63 .Nothing new to add.

      Delete
  4. Hello sir,

    Whats your view on lycos internet?

    Thanks

    ReplyDelete
  5. Dear VP,

    Can you share your views on how significant the recent news is for the comp business - USFDA successful inspection report for TN unit

    ReplyDelete
    Replies
    1. Opps. This is related to Orchid Pharma.

      Delete
    2. I feel he is asking about Orchid Chemicals and Pharmaceuticals.
      Please provide your view

      Delete
  6. VP Sir,
    You had recommended Camphor & Allied Chemicals earlier and the price has since then appreciated almost 200%.
    The Promoters of the Company have now decided to merge a 100% owned company with Camphor thereby raising their stake to 74%. On the face it seems to be good for the company.
    In view of this new development, would appreciate if you could share your views on continuation of the investment.

    ReplyDelete
    Replies
    1. Camphor suggested @ Rs.162 . At CMP Rs.560 ,average risk takers can HOLD

      Delete
  7. Sir Any comment on Chromatic India if you are tracking this company.

    ReplyDelete
  8. Sir I have one doubt. If a company buy back shares should it be taken as a positive or neutral? As slower growing companies often generates a lot of free cash and buys back. So if a company buy back does it always mean that company is not able to grow as much as the sector it is in?? Thank you sir. Your views are utmost important..

    ReplyDelete
  9. hello sir how are you????
    hope u doing fine sir.....
    the recent tragic incident in kerala is very disturbing ....

    ReplyDelete
  10. Pls Share your views on gufic bio and vinati organics

    ReplyDelete
  11. Hello VP Sir,

    I'm planning to buy ABFRL. Given the brands under its belt, I feel the potential for the stock is huge. But one thing that concerns me is its -ve PE. Can you please suggest if I should go ahead, buy this stock and sit tightly for 5-10 yrs? Looking forward to your advice.

    ReplyDelete
    Replies
    1. Old PFRL was in loss .

      ABFRL not completed one full FY.

      Delete
  12. Dear VP Sir

    Kindly let me know your view on WEP solutions Limitted. Their idea of Managed Print Solution looks very promising. Expecting your valuable advice on the said company and business model.

    Thanks & Regards

    Sreejith G

    ReplyDelete
    Replies
    1. Not sure whether there is any entry barrier in this business . Margin also seems thin.

      Delete
  13. Please your view on lykis. Currently suspended in bse

    ReplyDelete
  14. Hi Sir,

    Can you please share your views on selan exploration. This company has 69 rupees cash per share in reserves. Share is trading around 180 ?

    Thanks,
    Shashiraj NK

    ReplyDelete
    Replies
    1. A contra bet for those with patience.

      Delete
  15. Is wonderla value buy at current price sir?

    ReplyDelete
    Replies
    1. Possible to become a steady compounder .

      Delete
  16. Hi VP sir,
    Kindly provide your views on Span diagnostic and Pioneer investcorp.

    Regards,
    Rajesh

    ReplyDelete
    Replies
    1. Since both these companies sold part of their business i am not tracking them.

      Delete
  17. Hi VP Sir,

    Can you please share your two cents at current valuations of Thermax & BHEL. Thanks

    ReplyDelete
    Replies
    1. Thermax is a proxy of India's industrial growth .A decent company, but not expecting fast gains .Suitable for low risk passive investors.

      Not tracking BHEL.

      Delete
  18. Sir
    As the metrological dept is predicting good monsoon auto industry is expected to do well. Can we expect a revival in agri industry also. Which all companies can we look forward too?
    Kindly give your opinion on Subex also
    Thanks
    Pankaj

    ReplyDelete
    Replies
    1. Rural economy is the back bone of India's growth and any positive push like good monsoon will surely impact almost all industries in one way or other.Being an IT company there may be no direct impact on Subex.

      Delete
  19. Sir please your view upon gokaldas exports and Phillips carbon

    ReplyDelete
    Replies
    1. Gokaldas is an already suggested stock @ Rs.29.Suggesting to HOLD @ CMP Rs.75.

      Delete
  20. Hellow vp sir, today I bought 500 poddar pigments@170. I would like to hold this stock at least one year. Can I hope good return? Thanks sir.

    ReplyDelete
    Replies
    1. Sorry, no comments about time bounded investment in stocks.

      Delete
  21. Dear VP ji willing to know your views on TT, Patel integrated, charted logistics. Thanks in adv.

    ReplyDelete
  22. Hi sir, Thank for your lovely guidance, Sir your view on Simmonds Marshall at present situation, as I am a investor in it and even found lot of opportunity in its.

    ReplyDelete
  23. Some good article about ABFR for all our viewers. Potential is huge , company is innovating.
    http://yourstory.com/2016/04/aditya-birla-trendin-startup/
    http://yourstory.com/2015/08/aditya-birla-bizlab/

    ReplyDelete
  24. Sir ur view on Balaji amines at present rate is if bonus candidate

    ReplyDelete
    Replies
    1. Balaji Amines is an already suggested stock @ Rs.42 . Nothing new to comment @ CMP Rs.200 ( approx.)

      Delete
  25. sir ur views on
    jk paper
    anant raj industries

    ReplyDelete
  26. Hi Value pick Sir, Please share your views on BSL limited textile company. Looking poised for huge growth potential.. Please advise your take. Thanks a lot for all your help to small investors, Praba

    ReplyDelete
  27. Hello Sir, one of your old recommendations APM Industries is available at cheap valuation, should one reconsider / accumulate at CMP. Kindly respond. Thanks!

    ReplyDelete
    Replies
    1. APM suggested when it was 5 times cheaper than current price. When I suggest this stock around Rs.60 level its Fv was Rs.10 and now it splitted to Rs.2 . 5 shares allotted to every one held and still it is above Rs.60.

      Delete
  28. Your view on cals refinary. Can we take some risk?

    ReplyDelete
    Replies
    1. It is really an irony that BSE suspending the trading of profit making dividend paying companies and at the same time permitting these type companies stay listed !!

      Delete
  29. Sir,

    Please provide your views on Inox wind.

    ReplyDelete
  30. Your views on SPL industries sir? Thank you

    ReplyDelete
  31. sir pls can i accumalate skil infra for long term

    ReplyDelete

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