For all new investors out there, Please read this :-
1) Do not buy everything in one go. Invest slowly and accumulate with ease. If you plan to buy 100 shares, buy it in five or six times.
2) The best way to invest in markets remains in SIP, Invest every month even if its Rs 500-1000 can make a huge deal in the long term.
3) Be a disciplined investor, Make a basket of 20 shares and allocate no more then 5% in each of them.
4) Don't make any personal favorites. History suggests whenever one has put much or biased anything, that has most of times disappointed.
5) Read my note time and again, Understand the business that you plan to buy. Only invest in a something that you feel your able to understand.
6) Stock Market in the short term only takes two emotions into factors, Greed & fear. Thus don't panic even if you see quality counter getting butchered. Have the conviction and accumulate with ease.
7) Don't lament if you miss anything which moves 5 times, You would find something else among my recommendations to make merry.
8) Don't haste and act. Be calm and relaxed. Impulsiveness causes destruction.
9) A very important thing is the price target. As my father always describes, there is nothing called targets. He would sit on something for 20 years provided the story was on. But one must remember cash is always king. So if you feel you have made much or met your target. Do book profits, Not fully 25% or 50% to be safe on both ends. If it moves higher, then you already have 50%. If it moves down, chill out as you have already booked 50% profits.
10) The best thing is the "Investment free strategy", You buy abc company of 100 shares at Rs 10. You sell 50 shares when it reaches Rs. 20 to fully recover your investment. You can keep the 50 shares for eternity. It pays you dividend, becomes more likely an asset. Even if the share price of the company goes to nil, you still wont be loosing anything, as you have already your investment free by selling half the shares at double of the acquisition price.
Discipline is a must folks, Make these points a principle and I guarantee you stock market would be a better place to deal with.
1) Do not buy everything in one go. Invest slowly and accumulate with ease. If you plan to buy 100 shares, buy it in five or six times.
2) The best way to invest in markets remains in SIP, Invest every month even if its Rs 500-1000 can make a huge deal in the long term.
3) Be a disciplined investor, Make a basket of 20 shares and allocate no more then 5% in each of them.
4) Don't make any personal favorites. History suggests whenever one has put much or biased anything, that has most of times disappointed.
5) Read my note time and again, Understand the business that you plan to buy. Only invest in a something that you feel your able to understand.
6) Stock Market in the short term only takes two emotions into factors, Greed & fear. Thus don't panic even if you see quality counter getting butchered. Have the conviction and accumulate with ease.
7) Don't lament if you miss anything which moves 5 times, You would find something else among my recommendations to make merry.
8) Don't haste and act. Be calm and relaxed. Impulsiveness causes destruction.
9) A very important thing is the price target. As my father always describes, there is nothing called targets. He would sit on something for 20 years provided the story was on. But one must remember cash is always king. So if you feel you have made much or met your target. Do book profits, Not fully 25% or 50% to be safe on both ends. If it moves higher, then you already have 50%. If it moves down, chill out as you have already booked 50% profits.
10) The best thing is the "Investment free strategy", You buy abc company of 100 shares at Rs 10. You sell 50 shares when it reaches Rs. 20 to fully recover your investment. You can keep the 50 shares for eternity. It pays you dividend, becomes more likely an asset. Even if the share price of the company goes to nil, you still wont be loosing anything, as you have already your investment free by selling half the shares at double of the acquisition price.
Discipline is a must folks, Make these points a principle and I guarantee you stock market would be a better place to deal with.
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5 comments:
Amazing points!! Very well written!
Very true. Thanks.
Thank you very much..
Some of the points I know but not all. Thanks a lot for sharing valuable information. I use to do some of these mistakes regularly and will try to avoid for better earnings in long term. Thanks again.
I think in very few words you have summed up the characteristics of an Investor. An Investor who is able to follow the above will never regret being in the markets. Thanks.
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