Insights on Indian Stock Market, Investor Do’s and Don’ts

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Is stock investment profitable and advisable

Ofcourse the scope for making profit and returns for your money is unlimited, depends on your patience, choice of the stock and the time period you can afford .

How is it better than Banks

The rate of interests in banks is fixed, while in stock market you can choose your returns for your investment, but all depends on the selection of stocks and movement of the market. Patience, understanding and analysis is key.

Do I need to be rich

The beauty of stock investment is you can invest as much as you can, low or high, no restriction on time limit or no requirement of continuous deposits.

What are the risks

Market is extremely volatile and unpredictable, depends on global and local events. Stock movement is dependent on all factors. Any bad news… Boom… Stocks hit rock bottom.

What happens to Investment when market falls or stock value keeps going down

Either investor can wait if he can afford time, or exit with minimum loss, can buy fresh if he trust there is scope for rebound in the market or stocks.

Why does the market falls or picks up

Global or Domestic events influence the movement of market. Global events like war, recession are detrimental to general stocks but defence stocks will pick up with the former reason. Domestic events can be elections, government policies, health scare etc etc.

Who can be Investor

Any individual can be Investor, It is advisable to have an idea over current events to gauge the movement of stocks.

What are the multibagger stocks

The stocks which represents the sectors which are in demand at present or in future has chances of giving high yields.

Stock Investor Do’s

  • Check fair value of the stock before buying. Don’t buy when it’s too high.
  • Diverse your investments sector wise.
  • Stocks from established brands, companies, public sectors are relatively safe.
  • Use stoploss. Some stocks never recover or it may take forever to reach a high point again.

Stock Investor Don’ts

  • Don’t do panic selling. If market falls some investors are eager to protect their money and resort to selling. If a stock is a good, no need to sell in losses, instead can be averaged or else it will recover in due time.
  • Never invest on random stocks. Research them. Check companies progress from time to time.
  • If a stock is continuously falling, sometimes there must be bad news. Don’t keep on averaging. Better to book some loss and invest wise next time. Some stocks never recover in their life time.

“Invest for the long haul. Don’t get too greedy and don’t get too scared.”

Shelby M.C. Davis

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