Hi,
Good evening to everyone !! Started trading around 7 years back and initially made lot of money when not knowing much like (margin call, derivatives etc)..I entered the market with simple self made thumb rule of "buy blue chip" in major crash (market always provide) and sell when getting more than 30%..This continue for almost a year or half and I almost doubled my capital..then I become kind of "knowledgeable" and started all day trading stuffs (derivatives, intra day, margin) ..I lost almost 10-12(huge amt) times what I gained in those 1.5 years..Anyway's lesson learn is:
1. Trading is a full time job and investor can loose huge if trying to take this as a part time activity to make quick bucks.
2. Invest only surplus money which can withheld for long term if required.
3. Momentum shares (technically high beta...etc) can be work like a trap if fundamentals are not sound. It may fall to a levels(specially in crash) from where you will not get the same level. Do your own research about company and sector prospect in shorter and longer term.
4. In brief - Buy blue chip during crash - I know its easier said than done, but if you can do it then can make money. Do not invest all your money in single stock as anything can happen (like Satyam). See the long term prospect of sector first and then company.
Now for last 6 months I am following my last point(4) and aiming to recover lost money in coming 10 years. Patience is the key. I may get my money in next 5 years itself..but one should not aim very high in share market as that leads to downfall..I tried the the "Hare way" now trying "Tortoise way".
It must be lengthy and boring for few of you..sorry for that. My intention was - it may be of some help for some new comers to Market.
Thanks & Regards,
Rakesh
Good evening to everyone !! Started trading around 7 years back and initially made lot of money when not knowing much like (margin call, derivatives etc)..I entered the market with simple self made thumb rule of "buy blue chip" in major crash (market always provide) and sell when getting more than 30%..This continue for almost a year or half and I almost doubled my capital..then I become kind of "knowledgeable" and started all day trading stuffs (derivatives, intra day, margin) ..I lost almost 10-12(huge amt) times what I gained in those 1.5 years..Anyway's lesson learn is:
1. Trading is a full time job and investor can loose huge if trying to take this as a part time activity to make quick bucks.
2. Invest only surplus money which can withheld for long term if required.
3. Momentum shares (technically high beta...etc) can be work like a trap if fundamentals are not sound. It may fall to a levels(specially in crash) from where you will not get the same level. Do your own research about company and sector prospect in shorter and longer term.
4. In brief - Buy blue chip during crash - I know its easier said than done, but if you can do it then can make money. Do not invest all your money in single stock as anything can happen (like Satyam). See the long term prospect of sector first and then company.
Now for last 6 months I am following my last point(4) and aiming to recover lost money in coming 10 years. Patience is the key. I may get my money in next 5 years itself..but one should not aim very high in share market as that leads to downfall..I tried the the "Hare way" now trying "Tortoise way".
It must be lengthy and boring for few of you..sorry for that. My intention was - it may be of some help for some new comers to Market.
Thanks & Regards,
Rakesh
