Being a Stock Investor sounds cool and fashionable for beginners. A typical beginner stock investor is in early 20's fresh out of college. Disposable income is high and on top of it, there is a strong urge to multiply the money. Greed is the biggest PULL factor towards stock market. I discussed greed and fear in detail in my post, Successful Investors - 5 Hidden Secrets to Make Money. In my opinion, Out of 100 so called investors, 80 are Stock Traders and only 20 are Stock Investor in the true sense. The objective of a stock trader is short term investment, book profit, and exit. I am not ... Read More
High Dividend Yield Stocks – Should i Invest or Stay Away
High Dividend Yield Stocks have created a niche for themselves. They target a particular set of investors. A peculiar point i observed is that no one talk about the performance of High Dividend Yield Stocks. In the otherwise depressed market, i get feel good factor whenever i see the performance of these stocks as reported by newspapers :). The reason being, they always show a very high dividend yield %. It gives me a feeling of All is Well, All is Well. The analysts pitch these stocks as a retirement planning tool to investors. The 2nd set of scapegoats, sorry the investors are those who are ... Read More
How to control your loss in the Stock Market?
All investors incur a loss in the stock market. The objective of an equity investment is to gain on the net basis after adjusting the loss in the stock market. A common perception is that investor who is earning from the stock market does not incur any loss in the stock market. Let's check what it implies if an investor says that i earned Rs 100 from the stock market. It implies that he must have earned Rs 150 and hypothetically his loss in the stock market must be Rs 50. This explanation was not a rocket science, but my objective is to explain that you cannot avoid a loss in the stock market. ... Read More
5 Myths about Equity Market
5 Myths about Equity Market is based on my understanding of Equity Market so far. It is important to bust any myth as it is responsible for wrong decision making. In the mind of an average Indian there is a fear of Equity Markets. It can be correlated to an example from our daily lives. Last week, i along with my friends went for a short holiday. We planned for swimming in the morning. One of them had Aquaphobia i.e. fear of water. Though we tried our best to convince him to join us but of no use. Now the reason for Aquaphobia can be loosely correlated to the fact that he does not know how to ... Read More
Stock Portfolio – Competition among Stocks
How do you manage your Stock Portfolio? was one of the queries in my mailbox which caught my attention. After i started "Stocks" section on my blog, i am receiving a lot of queries on my Stock Portfolio. Off late i was not able to update my post on "My Stock Portfolio" due to very hectic schedule. I promised myself that from now onwards, i will update it once a week as i am aggressively churning my stock portfolio. Obviously, the main reason is volatility and fast changing dynamics of the stock market. On top of it, i personally believe that you should always search for best stocks for your ... Read More
7 Blunders of Equity Investment
Direct Equity Investment is riskier compared to Mutual Funds investment. At the same time if you would like to beat the returns of Nifty then only Equity Investment is the way out. You can create your own portfolio by selecting 7-8 good stocks which can help you to beat the returns of index comprehensively. The Nifty return should be considered as the the benchmark to judge the performance of your portfolio. If you can't beat Nifty returns then the best way is to buy NIFTY ETF. It will deliver returns of Nifty. Secondly, you need to decide whether you are an investor or a trader. As a trader, ... Read More