1Lac out of 10k ???

younggenius · #1 30th December 2005, 12:42 PM

Hi ,on the New Year Eve,I would request the experts here to comment on the following :-

In Year 2006 ,if an investor begins in January with ,say 10K .Is it possible for him to make it 1lac by the year end?[Sound very ambitious.]

How many of U say YES and how many say NO.
If Yes how ?
If No why not ?

Plz avoid unnecessary comments.Let this thread be a guideline for every investor who wants to start small but make it big.

nkpanjiyar · #2 30th December 2005, 12:50 PM

Quote:

Originally Posted by younggenius

Hi ,on the New Year Eve,I would request the experts here to comment on the following :-

In Year 2006 ,if an investor begins in January with ,say 10K .Is it possible for him to make it 1lac by the year end?[Sound very ambitious.]

How many of U say YES and how many say NO.
If Yes how ?
If No why not ?

Plz avoid unnecessary comments.Let this thread be a guideline for every investor who wants to start small but make it big.

younggenius, anything is possible in stock market. You are talking about 900% profit in one year ... hmmm quite ambitious but achievable. All you need is good insider info !!!

cheers,
nkpanjiyar

pnbalaji · #3 30th December 2005, 01:17 PM

It is really a matter of debate, but my guess is, it is acheivable with the help of penny stocks with strong fundamentals as even a 1 Rs increase in penny stocks value could add up a good % of return to the investor.

Thanks,
Balaji.

pkjha30 · #4 30th December 2005, 02:11 PM

Hi younggenious

Remember Slow and steady wins the race.
The fast one climbs faster one comes down.
There maybe exceptions here and there.
Infosys is said to be a case study in wealthcreation for investors.

I will point out another stock called videocon industries. Check its price movement since may 2004 till date. By may 2004 it had given return of 2200%.
Sounds incredible. Fundamentals ? volumes ?? you can check on that.
I spotted the stock and was wondering what made this name so low priced i.e.Rs.22.50 per share. Volumes very low and experts said fundamentals are weak and balance sheets supported. Subsequently it skyrocketted to Rs.450 or so. But volumes arestill low. Upto 80% held by promoters. There are other companies videocon appliances and videocon international which have not posted such gains.

I do not regret not investing in that company as it is illiquid, poor fundamentals, and not sure of the prospects. Bad news and it will come down faster than light. Maybe I am wrong.

There are few other examples.

If you want to earn money as a livelihood trade in shares and slowly you will make lots of money.

If you want to create wealth, invest for long term in sound companies and keep watch on your investments.

Bhati televentures might prove infosys of telecom sector as the sector will continue to grow in coming decade.Any comments are welcome.Currently I have no exposure in it though I am watching it grow from Rs. 137 to 370.

Regards
Pankaj

Regards

swingtrader · #5 30th December 2005, 06:41 PM

Probability of losing the 10K is much much greater than the probability of increasing the equity by 900%. To do something like this you have to hit many home runs in a short time, which means you would have to risk a lot per position which in turn means there is a very good chance that the investor will blow up the 10K before he reaches 100K.

SwingTrader

pkjha30 · #6 30th December 2005, 07:03 PM

I fully agree with your observation swingtrader
pankaj

neel1002 · #7 30th December 2005, 08:30 PM

Dear MATE.....

As I find it, this is not at all a topic for a Stock-market buff to ponder upon. Whoever has any experience of stock market in any form, is sure that anything bad or good is possible in any time with any stock ! All this is a chance or probability ! It is not uncommon to see a person loose his 1 lakh rupees within a week and gets back only 10000/- . The reverse too is common. There are so many mathemetical, probabilistic and economic models in the world to predict a stock market ~ and none is accurate so far ! If it would be, every person would be crorepatis !
What we can do, is to minimize the exposure to risk by adopting various tools. Intuition (6th sense) has got a very crucial role to play ~ which is not of any pattern and is varying with person to person.
There is a very nice story I had heard from one of my investor friends, which I like to share with my friends in this forum. Once, Mr. buffet had given $1000 each to two group of persons to invest in their favourite stocks. The first group was a set of bright graduates of MIT, HARVARD and YALE business schools and the other group was a set of school-going tiny kids. After Six months, it was seen that the second group have gained the maximum, though they do not know a little bit of stock markets !!!! And the first group of high profile technocrats have decayed the capital in spite of knowing so many tits bits !!!! The second group only invested in stocks of the companies which produce chocolates and candies which they used to eat !!!

nkpanjiyar · #8 30th December 2005, 08:42 PM

Quote:

Originally Posted by neel1002

Dear MATE.....

As I find it, this is not at all a topic for a Stock-market buff to ponder upon. Whoever has any experience of stock market in any form, is sure that anything bad or good is possible in any time with any stock ! All this is a chance or probability ! It is not uncommon to see a person loose his 1 lakh rupees within a week and gets back only 10000/- . The reverse too is common. There are so many mathemetical, probabilistic and economic models in the world to predict a stock market ~ and none is accurate so far ! If it would be, every person would be crorepatis !
What we can do, is to minimize the exposure to risk by adopting various tools. Intuition (6th sense) has got a very crucial role to play ~ which is not of any pattern and is varying with person to person.
There is a very nice story I had heard from one of my investor friends, which I like to share with my friends in this forum. Once, Mr. buffet had given $1000 each to two group of persons to invest in their favourite stocks. The first group was a set of bright graduates of MIT, HARVARD and YALE business schools and the other group was a set of school-going tiny kids. After Six months, it was seen that the second group have gained the maximum, though they do not know a little bit of stock markets !!!! And the first group of high profile technocrats have decayed the capital in spite of knowing so many tits bits !!!! The second group only invested in stocks of the companies which produce chocolates and candies which they used to eat !!!

Hey neel1002, well said. I agree.

nkpanjiyar · #9 30th December 2005, 08:43 PM

Quote:

Originally Posted by swingtrader

Probability of losing the 10K is much much greater than the probability of increasing the equity by 900%. To do something like this you have to hit many home runs in a short time, which means you would have to risk a lot per position which in turn means there is a very good chance that the investor will blow up the 10K before he reaches 100K.

SwingTrader

Very well said SwingTrader.

nkpanjiyar · #10 30th December 2005, 08:47 PM

Quote:

Originally Posted by pkjha30

Hi younggenious

Bhati televentures might prove infosys of telecom sector as the sector will continue to grow in coming decade.Any comments are welcome.Currently I have no exposure in it though I am watching it grow from Rs. 137 to 370.

Regards
Pankaj

Pankaj, true and agree with you. Same is the case with me for Bharti. Infact I made my first profit in Bharti at 125 level. Me too is watching Bharti from 110 level. The way telecom is dominating our live, surely it can be multi bagger. Aameeen.

cheers,
nkpanjiyar

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