[Disclaimer] : I am no expert in market, neither in technical nor in fundamentals so I am not going to give any tips or for that matter you don’t
have to blindly believe what I am sharing here. All of this is my experience
and mistakes I made in last 1-2 years of me actively being engaged in equity
market.
If you are neither a fundamental expert nor a technical
expert like me, you can still make some good returns in share market and all
you need for this is Patience and Common Sense. There are always lots of opportunities
and all you need is to grab very few of those and hold on and on for long time until
you feel that all juice of the particular stock or sector as whole has been sucked
up. For this you no need to be an expert as there are multiple credible sources
like Mutual Fund owners, Credit rating agencies and individual experienced
experts from where you can update yourself regularly and to be more confident
try to understand the balance sheet and quarterly results of companies and what
are future prospect of that sector and that specific company whose stock you own.
There are certain things I learned and experienced in last
1-2 years and I am sure it must be common to many of people who are regularly involved
in equity market. Let me share few of those:
I had many stocks at less than 20-30% of current market price. For example L&T at 1250 , SBI at 180, Axis at 390, Pidilite at 580 ,SREI Infra at 45.Tata Motor DVR at 230, Yes Bank at 700 and many many more. I sold main portion of all these by booking losses or minimal profits only as I needed that money.
2. Do not just sell off after making some gains. This was second lesson for me and it comes from being not experienced in this field I guess. Once we get 8-9% gain we start assuming that it is much better than return on fixed deposit and try to book the profit and then ultimately see the stock going up and up every single week. In investment terms it’s called “being Greedy”. I did it many times myself and probably still doing it :). I guess we mature on these things as time goes by and especially when we have a specific goal set related to your financial future. One solution I can think of is may be to have 2 different accounts, one for long term investment and one for short terms or for trading. It might be bit costly but can work out well.
Well these are just few and I am sure many more experiences are yet to come, hopefully of cracking some jackpots aka as Multi-Baggers :)