badge

Saturday, 1 August 2015

My tryst with stock market - V 1.1

Before I start writing this post on “My tryst with stock market”, here is the Link to my previous and only post on the same and this post is continuation of that post. In last post I simply tried to explain just 1 minor part of investing in stock market and what are the benefits of that with an example of TCS scrip. Now let me explain some more things pertaining to those points and go through the basic logic of investing in stock market. As many of you have heard through many people that that one guy became bankrupt because of stock market or one guy had to sell his property because of loss in stock market, why these things happen and why these negative things dominate the positive side of investing in stock market? The reason is simple and that is because many people who benefit from stock market in long run don’t glorify it much as compare to people who crib about negativity of stock market. So negativity dominates positivity when it comes to stock market’s perception.

Now let me explain some well documented, well explained and well researched facts about Stock market and also let me clarify before you judge me that I am not that expert in stock market but I have been reading it for last few years and also investing for last one year.

Who loses or will lose money in stock market? People who are either too pessimistic or too fearful.

Who doesn’t or won’t make money in stock market? People who are either too ambitious or too greedy.

So, who makes money in stock market? People who are able to balance all 4 adjectives mentioned above that is being “Ambitious”, “Greedy”, “pessimistic” and “fearful”. All these points come either together or alone in different ways can make or break your future in stock market.

  • If you are too ambitious, you might want to hold a scrip for uselessly long time and wait for its price to go rocket high at a time when it has already reached at stretched valuation, so you need to balance “Being ambitious”.
  • If you are too greedy, you might sell a scrip after getting mere 10-12% profit despite knowing that it still can get higher valuation. So you need to balance it.
  • If you are less pessimistic, you might not believe in some scrip which will go up in valuation, hence you won’t buy those scrips and won’t make any money either, so you need to balance it.
  • If you are too fearful, you might book loss by selling a scrip as soon as it goes down 10-12% after some knee jerk reaction due to some bad news or relatively less performance in a quarter without doing much research on company’s balance sheet and overall performance , so you need to balance it.


I hope I was able to pen down some more basic set of information about investing in stock market and how to approach it. You will not lose all your capital in stock market (as negative people spread perception about stock market) if you are careful enough and you are able to balance the 4 aforementioned things.

Next detailed information with one more aspect of investing in stock market will be followed in upcoming stock market posts. 

11 comments:

  1. Stock Logic is trading currencies from different countries against each other. Forex is acronym of Foreign Exchange.

    ReplyDelete
    Replies
    1. This is a great article thanks for sharing this informative information. I will visit your blog regularly for some latest post.

      Best Nifty Tips Provider

      Delete
  2. On the off chance that securities will be exchanged, they initially need to recorded on a stock trade showcase. The stock trade market is presently an enormous electronic system where individuals and enterprises can exchange, buy and offer stocks moderately rapidultimatestockalerts.com

    ReplyDelete
  3. A stock scanner that will help you find the best stocks to buy today . Apply various filters and rank stocks by performance, dividends, etc, and learn which are the best stocks to buy now. Best stocks to buy today

    ReplyDelete
  4. Good post. I learn something totally new and challenging on blogs. It will always be interesting to read articles from other authors. And practice something from their websites. Nifty Future Tips .

    ReplyDelete
  5. Great article and your previous article was also quite good. Thanks for sharing your thoughts with us.

    ReplyDelete
  6. Be on the look out for a business enterprise that is suddenly thrust into the media. Many up and coming businesses are only lacking the media attention that will make them successful.
    click here

    ReplyDelete
  7. Very Nice Explanation .
    Are you stuck up in a trade and having huge LOSSES in the markets??Recover your Losses with Free Stock Tips

    ReplyDelete
  8. When you have ascertained this critical point, next consider the most likely time in the future you might stand in need of the funds you wish to invest. cryptocurrency compariso

    ReplyDelete
  9. I read that Post and got it fine and informative. Please share more like that...
    commodity tips

    ReplyDelete
  10. your blog suggestion is knowledge full information keep continue provide information very helpful.

    Stock Cash Tips

    ReplyDelete