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Showing posts with label stock investments. Show all posts
Showing posts with label stock investments. Show all posts

Sunday, June 23, 2013

Stock Investments are always long-term option

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Greetings from StockInvestingTips, your one stop website for daily updates for Indian stock indices.

Incase of long term investors there might be minuscule people who have lost money through stock markets. If they have made their investment after a long analysis of the target company. I am not talking about impulsive buying or buying done on basis of word of mouth or by listening to 'blah, blah' of certain 24*7 hrs investment TV channels.

This means stock market investing are always a long term bet where the returns might surpass average returns from bank FD's etc. However there is always risk involved in here, which can infact be minimised if investment is done after thorough analysis of the company by checking it's last 3 years balance sheets, management quality etc.

I'll give a example, If during last couple of years any share analyst put a buy on kingfisher airlines stock then the reason for putting 'buy' can be that he is paid by the company for bringing fresh money, or his analysis/mental power is worst then a retarded human being because the company 'Kingfisher Airlines have never come into profit since inception because of following two basic reasons:
1. Management quality is poor, with no analysis/mental ability present to run businesses. 2. Airlines company is very hard to get into profit in India, due to heavy taxation.

So it comes out to be again to this oneliner: 'stock investments are longterm bets after thorough analysis of dna of company to invest into'

Always invest for longterm in stock markets, for eg a person who invested in Reliance Industries in August 2002, His investment is up by over 5 times in 2013(yesterday's price), Such returns easily surpasses the returns from conventional investment options like bank FD's or govt bonds). On the downside, since the returns on stock investments are not guaranteed, you risk losing everything on any given investment. eg. If during early 2000's anyone invested in IT companies, he would have lost all his money after the dotcom bubble burst, when many companies went bankrupt.

Investing for long-term in single stocks is a risky affair, like we say if you put all of your eggs in a single basket, sometimes that basket may fail, breaking all the eggs. Other times, that basket will hold the equivalent of a winning lottery ticket. So it is better to diversify your portfolio(Even for a long-term perspactive). This diversification would also help in avoiding volatility of stock markets.

Still in 10 year plus time category of investments, stock markets returns are on top. Even if you had invested in stocks at the highest peak in the market, your total after-inflation returns after 10 years would have been higher for stocks than either bonds or bank FD's. This is because stocks allow investors to own companies that have the ability to create enormous economic value. Stock investors have full exposure to this rise in stock value, which no other longterm investment can match.


Thursday, April 30, 2009

10 evergreen tips for investing in stocks

Following are 10 evergreen tips for investing in share markets or making any other investments, still i would recommend that common sense ans experience is of atmost importance too.

1. Pay off your debts - no point risking more money before you’ve got yourself into the black.

2. Do your research - think about what you are investing in and think why you’re investing in it. There is so much more information at your fingertips these days, but it doesn’t necessarily make the job of picking shares easier.

3. Time is money - think about compounding.

4. Be patient - there are very few chances to make a quick buck unless you get very lucky.

Also read -
-BSE aims at internationalization of listing businessNEW !!
-Effect of Recession on Indian Economy
-Economies hit by recession
-World's Strongest economies list

5. Be tax efficient - consider investing within ISAs so that you don’t pay more tax than necessary.

6. Keep costs low - costs eat into your investment, and mean they have to perform that much better in order to make you a profit.

7. Do not try to time the market - it’s virtually impossible; invest when it’s right for you.

8. Don’t believe the hype - if you’re investing in something after many others have done so, you’ve probably missed the boat, and therefore missed the best performance.

9. Regular contributions are your friend -use cost averaging to your advantage to help smooth the ups and downs of the markets.

10. Learn from your past mistakes.

Rules for making your investment profitable in BSE | NSE

Indian stocks markets (BSE and NSE) are known through out the world for their enormous volatility and still no one can predict where the market will go in a week's time , However these rules(50 in number) are compiled by me after following the market for last 4 years, if followed correctly the investment can become very profitable both for NSE and BSE.

50 rules which a market beginners must follow in order to make their investment profitable are as follows : 

1. An attempt at making a quick buck usually leads to losing much of that buck.

2. If stocks in general don’t seem cheap, stand aside.

3. Buy and hold doesn’t always work.

4. Never throw good money after bad investments (don’t buy more of a loser).

Also read -
-BSE aims at internationalization of listing businessNEW !!
-Effect of Recession on Indian Economy
-Economies hit by recession
-World's Strongest economies list

5. Cut your losers, and let your winners ride.

6. If the investment sounds too good to be true, it is.

7. Don’t fight “the tape” (the trend).

8. Don’t fight the Fed (interest rates).

9. Most stocks that fall under $5 rarely see $10 again.

10. The best hot tip: there is no such thing as a hot tip.

11. Don’t fall in love with your stock; it won’t fall in love with you.

12. Don’t have more than 3% at risk in any one position.

13. The trend is your friend until the end.

14. Trading options often leads to a quick trip to the poorhouse.

15. Bear-market rallies are often violent; giving the illusion the bull is back.

16. Low-priced stocks don’t double any faster than high-priced ones.

17. Valuations don’t matter in the short run.

18. When a stock hits a new high, it’s not time to sell. Something is going right.

19. Have a rose garden portfolio (don’t trim your roses while your weeds fester).

20. It takes courage to be a pig (don’t settle for taking 10% profits).

21. Not selling a stock for a gain, simply because you’re afraid of the taxes, is a bad idea.

22. Avoid limited upside, unlimited downside investments.

Also read -
-BSE aims at internationalization of listing businessNEW !!
-Effect of Recession on Indian Economy
-Economies hit by recession
-World's Strongest economies list

23. When all you’re left with is hope, get out.

24. Don’t keep losing money just to “prove you are right.” Nobody cares.

25. Forecasts are useless.

26. Have patience and stick with your discipline.

27. When it’s time to act, don’t hesitate.

28. Expert investors care about risk, novice investors shop for returns.

29. Don’t lose money.

30. You can learn more from your bad moves than your good.

31. A rising tide raises all ships, and vice versa, so assess the tide, not the ships.

32. Stocks fall more than you think and rise higher than you can possibly imagine.

33. Very few people have had great success short selling, even in bear markets.

34. You can’t know everything about everything.

35. Since you can’t know everything, seek out specialists who know their areas.

36. If a company’s sales are shrinking, the business isn’t growing anymore.

37. Real estate cycles are not the same as stock market cycles.

38. Investing in what’s popular never ends up making you any money.

39. Know your investment edge, and don’t stray too far from it.

Also read -
-BSE aims at internationalization of listing businessNEW !!
-Effect of Recession on Indian Economy
-Economies hit by recession
-World's Strongest economies list

40. Bear markets begin in good times. Bull markets begin in bad times.

41. Buy value - stocks that are priced less than their underlying assets are worth.

42. Neglected sectors often turn out to offer good values.

43. There’s usually only one reason corporate insiders buy stock.

44. Don’t miss a good one by being too concerned with the exact price you pay.

45. Avoid popular stocks, fad industries and new ventures.

46. Buy shares in businesses you understand.

47. Try to buy a stock when it has few friends.

48. Be patient: don’t be rattled by fluctuations.

49. Mutual funds underperform the averages over the long run. Buy index funds instead.

50. If you don’t understand the investment, don’t invest.

That’s a lot of rules. Reasonably intuitive, yet millions of investors break these simple rules every day. I’d like to leave you with one more rule of investing, which I’m seeing among investors trying to get back to where they were…

posted under - 50 rules, 50 Rules for investing, investing rules, stock investments, investing in BSE, investing in shares, indian stock markets, invest in NSE


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