Saturday, January 30, 2016

STOCK MARKET INVESTMENT

1) Share Market is a way for the big capitalists to collect capital from the smaller capitalists.I do not believe in a capitalist society, my advise is just to save the smaller capitalists from the bigger ones for their survival and valid only till we devise a society free of capitalism.

2) Share market is no place for day trading type gamblers, you are going to lose, no matter what tips or tricks you use.

3) Buying shares of a company means that you are becoming a partner in the particular business of that company.

Never invest in a business which you do not understand yourself, suppose a company declares that it will import aliens from Mars and export to Venus, invest only if you understand the depth of their concept.

4) Never take an investment plan from an life insurance company, take life insurance (term plan only) from them and if you wanna invest, invest yourself, in National Saving Certificates or in share market or in some other investment instrument only.

5)Investing through ULIP (Unit Linked Investment Plans)is most stupid, in the garb of life insurance, these life insurance companies lure you to invest in share market and penalize you with their heavy duty charges.

6) Never keep all your eggs in a single basket. Diversify your investments.But blind diversification is meaningless, testify and then diversify.

7) Investing through mutual funds is foolish. You will lose the commissions charged by these companies and you will never understand the market. Even the greatest mutual fund manager can not give you any profit if market does not favor,it is the market that gives or takes.

8 ) Mutual fund investments are subject to market fluctuations.

But such fluctuations mostly are short term and subject to temporary reasons which have generally no impact on the long term goals of a long term investor and as I say share market is meant for a long term investor only, hence this statutory warning of mutual fund companies has no significance.

9) (a) Best way to invest in the shares is to understand that you are not to invest blindly or passively. 

First choose some blue chip companies. 

Now choose their businesses which are most reliable and understood by you clearly.

Now invest into them diversely. 

Never let your blood pressure get up or down by the everyday fluctuation of the market. 

But it does not mean that you should keep your eyes closed. 

Rather keep one eye on the market and another on the business of the companies in which you have invested.

(b) Have long term visions but short term vigil.

(c) Understand that share market investments are subject to failures or successes of businesses which are further subject to various factors including how dishonest they are.

COPY RIGHT MATTER, STEALING IS A PUNISHABLE OFFENCE, SHARING IS WELCOME. TUSHAR / 9818018725

No comments: