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Posted on: Jun 24, '09

Are you afraid of Stock Markets

Investing in Stock Markets ........... Part 1

After a lull of about 15 odd months the stock markets are now again making headlines in newspapers and news channels and the only reason is that it is making newer highs for the year 2009.

The general public whom we call investor are feeling deprived and left out lot as they did not dare invest around 7500/8000 Sensex levels and now are stupidly watching Sensex touch 15000 and stocks rising 3/4 times in a mater of 3/4 months.... So what went wrong and what went right for the markets.. Nothing...stock market has its own law and it works on that.....What goes up has to come down and what goes down has to come up. If any investor, educated investor , can understand this theory and apply a little bit of mind and study he can reap immense benefit as return from the Stock Market.

Is investing in Stock Market is only danger or there are some return to be earned. The investment in Stock Market is an Art and to master this art you have to depend on your self and apply our own mind.
So what are the basics one should learn to invest and whether one should be in the stock markets at all or not. Let me tell you the best return one can earn in any mode of investment can be earned is from the stock markets apart from may be land / property but long term is what matters.

When you plant a seed how much time it takes to give you the desired crop you want or do you calculate the daily interest you earn on your Bank FD or your Post office FD.

Let me add a caution here Stock Markets are for investor and investment needs time to grow, if you want to be in as a trader then also welcome but you have to be truely a professional trader and belive me for a truely professional trader the market is the best possible career, learn its basics, its techniques and fundamentals and I am sure that as an professional trader you can earn much more then you could have imagimed.

To make the matter more simple, I share with you the basics dos and dont's for the investor.
Firstly there are basically three kind of people coming in the market, 1) Investor 2) Day Traders 3) Speculators. There may be more sub-classiication also but that will make it more lengthy.

Basics dos and dont's for the investor....

1) Only invest the amount which you will not need for say 10/15/20 years.

2) Do not think that a token investment or one time investment of 10000/20000 is enough to make you rich...no this is totally incorrect mindset.

3) First of all explore all other invesment options that is your liquidity position, your insurence needs and short term goals and then finally put the last extra sum whatever small it may be in the market.

4) Never ever invest the borrowed money in the market, its the greed that makes you lose, a sound investment is always fruitfull.

5) Never, I repeat, never enter the market when the whole world is talking about it from a roadside chaiwala, panwala to autorishaw driver to any body you meet, check the history and you know why?

6) Start investing in the markets when there is gloom allover when no one is talking about it when the markets are making the newer and newer lows..be brave come up and start investing. When the world is pessimist about the future you think optimistic.

7) Never put your eggs in one basket, spread your portfolio and spred your risk, diversify it with some good dividend paying company.

More on how to invest and how to find true winner in the markets and more does and donts and how to become a sucessfull trader, in next series

I wish you share your valuable commesnts on the topic so that i can plan my writing accordingly
and hope you all to share it with more and more people too.... happy investing

Tags: investment, stock, share

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Happy3003 said:
very worthy article posted by u
thanx bhaji

June 27, '09

AshokAdvJBP said:
very good tips for safe investment from a informative post.. I agree Never ever invest the borrowed money. Play within ur limit.But definetely if u have time to analyse the market sitting at home before the computer then u can make tremendous money, no doubt.

June 27, '09

kabir_1962 said:
It has bocome a cheaters game and so simple who can cheat more can become rich earlier,

But think saath kaya jayega
Kutch bhi mahin.
Paisa nahin dilaon ko jito sir aur shikhsha bhi usi ki do.
:reading_book

June 26, '09

kabir_1962 said:
Sir
Yeh jo public hai sub janti hai, yeh jo public hai,
Now this game is based on befooling others, So simple if some wants to get cheated he shld play stocks game.
What to do with poors like us, only consolation prize.

June 26, '09

BindasCorner said:
Really !!.
Stock Market till now does not exist in my life but due to you...I can have a look at it..
nice clues.
thanks Sir.

June 26, '09

Heart_Of_Paradise said:
Thanxx 4 sharing this Information.. It will be great help for Big time investors

June 26, '09

Gor123 said:
really very goo0d suggestion for those who invest in stocks....thanks for sharing such a nice information

June 26, '09

varsha4296 said:
r u in the financial field?

June 26, '09

manisha_bhattacharya said:
Quite an informative post Udhasji!

June 26, '09

Nayna13 said:
Quite informative but the volatility of market is always un-expected and hence don't take the risk of heavy investing. Scary too and therefore not too keen. But all the same thanks for the tips.

June 26, '09

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