badge

Saturday 18 July 2015

My tryst with stock market - V 1.0

Stock market or share market, words that give nightmares to many people and at same time lighten eyes and face of many others. Many people who have never been even close to anything related with Stock market have formed such a negative opinion about it that the same negativity has perpetuated among most of the Indians. I can’t question or justify such massive wrong perception but can surely put forward my point of view in coming posts along with this one and can share my fairly long learning experience and also little working experience in stock market.

There is a saying that “one bad fish spoils whole pond” and to be honest we have many such bad fish in stock market. If you discuss share market and its goodness with anyone who is not part of it, they will cite example of Satyam scam and Harshad Mehta. Yes Satyam scandal was massive jolt to Indian stock market in 2009 but we have moved on a long way from that. The regulations, the watch list, the checkpoints we have now are much tougher than those days. We have BSE, NSE, SEBI and Government agencies to monitor that everything is fine and all laws are being followed. There has been no big controversy with stock market since 2009 and we are growing stronger and bigger. India is one of the fastest growing economy and so is Indian stock market. If you believe in India growth story then you must believe in Indian stock market story.




For me simple funda of stock market is “If you can’t buy a company, buy few % of that company through shares”, yes that % will look really minuscule but that % will grow with same speed as the company. Imagine you buying .00000000000005% of a good worthy company with 10,000 Rs and after 15 years company grows 20 times, your percentage will still be same but value of that percentage share will grow by almost 20 times, means your 10,000 will become almost 200,000. These calculation can vary here and there but the basic growth logic will be the same, faster the company grows, faster your share value will grow. It is as simple as that, where is the risk here that might give you nightmare?  Now the question comes how to believe in company and how to identify such companies. Here comes the role of research and understanding the business module of a company. If you believe in a company that it will grow, it might not, but if lakhs of people believe in a company that it will grow, it will never fail.  If you don’t believe in private companies, go for government companies you believe in.

Before I stop here to write remaining in next post, here is an example of how investing in a good company for long time can give more value to your money than any other investment

TCS : Tata Consultancy Services

Year
Share Price in INR  (On average)
Comments
2002
300

2005
1500

2008
670
Stock split in 2006 2:1
2010
1067

2014
2643

2015
2560


So if you had 10 shares of TCS in 2002, you would have invested 3,000 Rs , now you would own 20 shares of TCS and that money would have become 51,200 in lump sum and it would be totally tax free. This is just a basic detail, apart from this, good companies keep giving dividends to shareholders based on company’s performance every year and TCS has given 150 Rs dividend per share till now.

Share market is not bad, some companies are, So Don’t avoid share market, avoid bad companies.

Contd.............

30 comments:

  1. Thanks for sharing this type of articles.Stock market advisory is the leading multi asset class investment recommendation provider organization with expertise in stock and commodity markets for stock market adviser.

    ReplyDelete
  2. Great article about stock market I think improve the knowledge level about stock market investment Presently I am working with Wealth Research Financial services as a stock market adviser . We are providing best customer services and also suggest best investment plans and providing best profit for more information please visit our site.

    ReplyDelete
  3. Looking for Share Market Classes in Mumbai then here is a place you cannot miss and if you do you lose your opportunity for ages that cannot be regained.

    ReplyDelete
  4. Thankyou for providing us stock recommendations. Your post is very informative and beneficial for share market traders. I really appreciate your efforts you have made in this blog.

    ReplyDelete
  5. Great article thanks for sharing this kind of information this type of content is improve mt skill and ability about share market thanks sir great job. Presently I am working with Wealth Research Financial Services as commodity tips provider. We have best researcher team that's providing best stock market pools first you check pool and you decide how to invest in stock market.

    ReplyDelete
  6. Hey what a brilliant post I have come across and believe me I have been searching out for this similar kind of post for past a week and hardly came across this. Thank you very much and will look for more postings from you. Curso de Bolsa Malaga

    ReplyDelete
  7. Thanks for contributing your important time to post such an interesting & useful collection.It would be knowledgeable & resources are always of great need to everyone. Please keep continue sharing.
    Research advisory tips

    ReplyDelete
  8. We offer the best stock alert service with swing trade alerts, day trade alerts, and penny stock alerts Stock Picking Service

    ReplyDelete
  9. I have read your articles many times and I am always inspired by your tips and knowledge. Thank you for sharing.
    Stock cash

    ReplyDelete
  10. https://vipraword.blogspot.com/2020/05/best-free-tool-review-how-to-earn-with.html


    friends , as we know only six of companies are registered in Nasdaq as american depository receipts,i.e Infosys, ICICI bank,HDFC bank , Tata Motors DVR, Vedanta resources,.ADR's basically is a negotiable instrument for those US citizens , who want to invest in foreign equity with in US market.These ADR's are avialable for trade in limited number of quantity .The benifit what as an Indian trader and investor you get is that US market almost start by 7 o clcok as per IST ,hence, price volume action and buying projections almost remain same.Any news coming in favor or loss making for scrips and respective movements in stock can give us clue but problem with most of website i have come across is to get live rate and also precise closing rate of these scrips as the closing rates are not updated one.The authentic rates what i have come across in in investing.com link as well as Yahoo finance.A negative or strong positive closing and all basic laws of screening you can put to predict that how these seven scrips will behave in market today.
    https://in.investing.com/equities/india-adrs


    The data of ADR's are to be studied Viz-a-viz closing of Indian Market on Positive or Negative Zone and it can give you clue uptill 70 to 80 % about Initial 15 minute movements

    ReplyDelete
  11. This comment has been removed by the author.

    ReplyDelete
  12. It looks like you had done quite good research for this post. Keep sharing good information.

    Call Put Options


    ReplyDelete
  13. I can set up my new idea from this post. It gives in depth information. Thanks for this valuable information for all,.. Investments in Stock Exchange

    ReplyDelete
  14. Actually I read it yesterday but I had some thoughts about it and today I wanted to read it again because it is very well written. financial planning

    ReplyDelete
  15. You may also be required to fund your account before it is opened. money gain plan

    ReplyDelete
  16. I imagine that much obliged for the valuabe data and bits of knowledge you have so given here. visit our site

    ReplyDelete
  17. Mashreq Alislamic is the best innovative Islamic bank in UAE, That is provides the best services...

    ReplyDelete
  18. Awesome blog. I enjoyed reading your articles. This is truly a great read for me. I have bookmarked it and I am looking forward to reading new articles. Keep up the good work! Stock market

    ReplyDelete
  19. I wanted to thank you for this great read!! I definitely enjoying every little bit of it I have you bookmarked to check out new stuff you post.
    http://kingtradingsystems.com/option-alpha-review.php

    ReplyDelete
  20. Presently, moving the leads through the advertising channel should be possible quicker by incorporating ReadyTalk's solid online class arrangement with Marketo. Leads genereren

    ReplyDelete

  21. Thank you for sharing such valuable and helpful information and knowledge. Thank you for sharing the amazing post with us. Keep it up. I would love to see your next update.
    Share Market Tips | Stock Market Tips

    ReplyDelete
  22. Great post. I used to be checking continuously this blog and I am inspired!best database solutions

    ReplyDelete