hi,
I am new to this forum, decided to introduce myself with
my story of stock markets.
I remember when i was a kid i use to hear it in the news,
that sensex gained points, sensex lost points, never gave it
a thought what is it all about. I finished my schooling,
graduation, got a good job in an mnc earning better than
average salaried indian. The company which i was working had
an option to buy the shares of it by taking out some part of
the salary, it's called espp. the first time i didn't apply
as i wanted to see more take home salary. But many of my
colleagues made good money because of forex fluctuation
during that time. I felt bad, i thought i should go for it
next time (as you can opt for it only when the subscription
window opens, it opens once in 6 months) this time i opted
for 15% which was max i can go for. And it is the start of
2009, if you look back in history that's when global economy
started to look up and my company share price was at it's
lowest point. After six months, my company stock zoomed to
200% , i sold all the shares i bought. That's the moment,
which got me thinking about stock markets. I thought i can
invest in indian stock markets too. Believe me i have no
knowledge of all the intricacies of stock market yet. after
checking all the available options, indiabulls had lowest
brokerage charges. immediately i opened a demat account
with india bulls. did not buy anything for first few months
as i was busy with my work. one day my RM called me and
asked why was i not buying anything, he gave some ideas on
stocks to buy. i bought 1000 shares of icici bank at 550 (i
guess). i waited, the stock went to 440 from there it
retreated back to 770. i sold all the shares and booked
profits. From now on my trading activites heated up. i was
buying and selling on a daily basis, stared at my first loss
in stocks. while i was doing that i was not even aware of
stop loss orders. and my RM did little to even tell me about
it (although i don't blame him for not telling me it was my
responsibility) i should know the game before i play. i
learnt about stoploss orders by myself while exploring the
various fields while placing an order. i didnot get scared
of losses instead i started to put more money. There were
many cases where i had sold early, bought at wrong time,
after couple of months i lost 50% of initial investment. I
decided to stop trading for some time, i left my portfolio
untouched for couple of months. I had many chances to exit
the positions, but i didn't as i was hoping for more
returns. i fluctuated from 50% loss to 0% loss (not
profits) many times. i held on to my portfolio. during the
course of 2 years i learn a lot about stock markets (in a
hardway ). atleast i understand what's going on what i
should've done to reduce losses. currently i am at 50% loss
and i am not afraid, i know if i held my positions i could
get back to 0% loss. i hear a lot about chart analysis stoch
methods etc ... i think they don't mean anything just by
looking at the number of candles you can't predict what
happens next, that's the beauty of stock market. The thumb
rule is do your diligence, know about the company, know how
much loss you can afford, and stay invested with stocks for
reasonable amount of time, you can definitely make money out
of it.
these are the things which every investor should remember
(especially retail and novice investors, like me)
1. Never, ever, ever listen to what others (RM, friends)
says (this is one thing which i did right, i never listened
to my RM he use to give me tips on a daily basis, i use to
trak his suggestions they were always wrong) i am not say
they will always be wrong, if you want someone to take care
of your investing go to professionals (MFs are the best,
though you might be at loss even with MFs) don't ever listen
to amateur tips.
2. always keep the stop loss, don't be afraid to book
losses, it's all part of the game.
3. do your due diligence know about the company, management,
sector.
4. don't buy too many stocks which you can't track, for a retail
investor i think having 3-5 stocks is more than enough.
5. always follow the market even when you are on vacation.
that's the price you have to pay if you are managing your
own investments.
6. stay invested for reasonable amount of time.
this is coming from the guy who is currently at 50% loss. I
hope i'll get back my money one day.
cheers
I am new to this forum, decided to introduce myself with
my story of stock markets.
I remember when i was a kid i use to hear it in the news,
that sensex gained points, sensex lost points, never gave it
a thought what is it all about. I finished my schooling,
graduation, got a good job in an mnc earning better than
average salaried indian. The company which i was working had
an option to buy the shares of it by taking out some part of
the salary, it's called espp. the first time i didn't apply
as i wanted to see more take home salary. But many of my
colleagues made good money because of forex fluctuation
during that time. I felt bad, i thought i should go for it
next time (as you can opt for it only when the subscription
window opens, it opens once in 6 months) this time i opted
for 15% which was max i can go for. And it is the start of
2009, if you look back in history that's when global economy
started to look up and my company share price was at it's
lowest point. After six months, my company stock zoomed to
200% , i sold all the shares i bought. That's the moment,
which got me thinking about stock markets. I thought i can
invest in indian stock markets too. Believe me i have no
knowledge of all the intricacies of stock market yet. after
checking all the available options, indiabulls had lowest
brokerage charges. immediately i opened a demat account
with india bulls. did not buy anything for first few months
as i was busy with my work. one day my RM called me and
asked why was i not buying anything, he gave some ideas on
stocks to buy. i bought 1000 shares of icici bank at 550 (i
guess). i waited, the stock went to 440 from there it
retreated back to 770. i sold all the shares and booked
profits. From now on my trading activites heated up. i was
buying and selling on a daily basis, stared at my first loss
in stocks. while i was doing that i was not even aware of
stop loss orders. and my RM did little to even tell me about
it (although i don't blame him for not telling me it was my
responsibility) i should know the game before i play. i
learnt about stoploss orders by myself while exploring the
various fields while placing an order. i didnot get scared
of losses instead i started to put more money. There were
many cases where i had sold early, bought at wrong time,
after couple of months i lost 50% of initial investment. I
decided to stop trading for some time, i left my portfolio
untouched for couple of months. I had many chances to exit
the positions, but i didn't as i was hoping for more
returns. i fluctuated from 50% loss to 0% loss (not
profits) many times. i held on to my portfolio. during the
course of 2 years i learn a lot about stock markets (in a
hardway ). atleast i understand what's going on what i
should've done to reduce losses. currently i am at 50% loss
and i am not afraid, i know if i held my positions i could
get back to 0% loss. i hear a lot about chart analysis stoch
methods etc ... i think they don't mean anything just by
looking at the number of candles you can't predict what
happens next, that's the beauty of stock market. The thumb
rule is do your diligence, know about the company, know how
much loss you can afford, and stay invested with stocks for
reasonable amount of time, you can definitely make money out
of it.
these are the things which every investor should remember
(especially retail and novice investors, like me)
1. Never, ever, ever listen to what others (RM, friends)
says (this is one thing which i did right, i never listened
to my RM he use to give me tips on a daily basis, i use to
trak his suggestions they were always wrong) i am not say
they will always be wrong, if you want someone to take care
of your investing go to professionals (MFs are the best,
though you might be at loss even with MFs) don't ever listen
to amateur tips.
2. always keep the stop loss, don't be afraid to book
losses, it's all part of the game.
3. do your due diligence know about the company, management,
sector.
4. don't buy too many stocks which you can't track, for a retail
investor i think having 3-5 stocks is more than enough.
5. always follow the market even when you are on vacation.
that's the price you have to pay if you are managing your
own investments.
6. stay invested for reasonable amount of time.
this is coming from the guy who is currently at 50% loss. I
hope i'll get back my money one day.
cheers
