Investing for long term is a good strategy. Find out good companies and invest for long term. Investing in shares is nothing but investing in business. If you are starting a business and closing it in short term the possibilities of making money is very less. If you are starting a business and running it for long term the possibility of making profit is more. Think stock market. Think long term.
Hai Ramling it's very nice - Really a warning to those investors who just want the benefit out of timings and not the benefit out of real investments.
I like the below points so nice:
Communication is a powerful technique. Accounting is a good tool. But if we use these techniques and tools as a short cut and not in line with the basic principles, what will happen? We know what happened to Swami Nithyananda and Satyam Computers.
Re: Hai Ramalingam - it's nice
by CH SRINIVAS on May 17, 2010 12:18 PM
wellsaid. evert word is true. long term meaning changes in many contests. ex. reliance power purchased at inception. donot shy to book profits and exit. thanks for this service !
Keep target how much u want to earn in intraday..1K,2K...10K when u reach trgt. go to sleep watch a movie till the dawn..repeat daily.. evry body can earn handsome.. but shoould not be greedy.. do as a Job holder as if u do not hv any other option.. defintly.. u can Win N Earn
Re: be smart...
by max skinner on May 16, 2010 06:43 PM
Well said,one more thing is to sit tight in intraday trading and absolutely do nothing when markets are in a very tight range or have very less intraday volatility.
Re: be smart...
by rathi on May 17, 2010 09:42 AM
Trading is a game. There is no fresh money generated. Some one's loss will be your profit. Your loss will be some ones profit. So the propability of making moeny in the long run is very low. You win 50% of times and loose 50% of times. But there is a person who is making money out of all the transactions in trading is a Broket. Investors make money for themselves and traders make money for their broker.
Make money in the fluctuations or ups and downs would be smarter after deciding good companies to buy, the idea is your money is making some money though you would stay for a long term. If you had purchased some share for 500 and you see that it swings between 480 to 530 quite often why not use this though you would be long on the stock. Making money with the money is the idea of investing now make more money with the same money.
Re: Trading or sleeping
by rathi on May 17, 2010 09:42 AM
Trading is a game. There is no fresh money generated. Some one's loss will be your profit. Your loss will be some ones profit. So the propability of making moeny in the long run is very low. You win 50% of times and loose 50% of times. But there is a person who is making money out of all the transactions in trading is a Broket. Investors make money for themselves and traders make money for their broker.
Warrent buffet has become one of the worlds richest person without doing any short term trading, or F&O. By doing all these thins we make our brokers richer. Beware of them. This writer seems to be a REAL professional in his field.
Re: Warren Buffet
by P Kumar on May 16, 2010 06:46 AM
When around October, 2008, even Warren Buffet started pissing in his pants owing to his mounting losses, he resorted to FnO to arrest his losses - till then he had been proclaiming loudly 'FnO is the finanncial weapon of mass destruction'. So, in essence, FnO is and was always meant for investment-protection (hedging/insurance), and never for gross speculation. Unfortunately, most of the contemporary players in FnO are all dangerous, impulsive speculators - be it the biggies like Lehman Bros or a small retail trader at Dalal Street. So, why fault/abuse the system of FnO. There are good drivers (good FnO players) and bad drivers (gross FnO speculators). Of course bad drivers hardly know how to avoid accidents/mishaps !
Re: Warren Buffet
by Raja Krsnan on May 16, 2010 09:49 AM
George Soros is an example how trading alone brings big money. if you are satisfied with the big profit you have in hand then book it and move on the next. there is nothing wrong with that idea. Do what you understand. If you understand that part, trading or investment, it doesnt make any difference how you make money.
Re: Re: Warren Buffet
by rathi on May 17, 2010 09:42 AM
Trading is a game. There is no fresh money generated. Some one's loss will be your profit. Your loss will be some ones profit. So the propability of making moeny in the long run is very low. You win 50% of times and loose 50% of times. But there is a person who is making money out of all the transactions in trading is a Broket. Investors make money for themselves and traders make money for their broker.
For example, you have Rs. 100 and you invested in the stock markets .....After 5 years, if the annual growth rate of that particular stock is 25%, your money would be compounded to Rs. 305.
But if you can trade properly and in a week get 2% return by trading that stock, your retun can reach 100% in a year....
Bottomline, if you have less money, trade....
If more money, sleep for as long as you can.....If you get up after 20 years, you can outdone all the market fluctuations in between.....
Re: Both strategy has its merits.....
by Amit on May 13, 2010 09:42 AM
its absurd. you cannot expect your stock to give you good return in 20 years unless the copany survives and grows consistently, some co's grow most don't and a lot will dissapear with ur money .
Invest and monitor and make buy,hold,sell decisions.
trading is risky, it can wipe out ur gains of months in a few days. unless u have a better way to judge ebbs and flows of market conditions don't trade.
Re: Both strategy has its merits.....
by kuppusamy on May 13, 2010 01:25 PM
Warrent buffet has become one of the worlds richest person without doing any short term trading, or F&O. 2% every week is a big joke. if you have the capcity or some one has then comeforward and show your past track record. I will pay 1 crore on the spot. By doing all these things we make our brokers richer. Beware of them. This writer seems to be a REAL professional in his field.
Re: Re: Re: Both strategy has its merits.....
by rathi on May 17, 2010 09:43 AM
Trading is a game. There is no fresh money generated. Some one's loss will be your profit. Your loss will be some ones profit. So the propability of making moeny in the long run is very low. You win 50% of times and loose 50% of times. But there is a person who is making money out of all the transactions in trading is a Broket. Investors make money for themselves and traders make money for their broker.
Re: Re: Both strategy has its merits.....
by surya adiga on May 13, 2010 04:37 PM
Absolutely. I agree with Kuppusamy. If it were that easy then most of the people would have been stinking rich by now :-)
Re: Both strategy has its merits.....
by vishy v on May 15, 2010 03:32 PM
This is perfect. Plan for 2 % return and automatically itll be 100 %. Well, i dont find any sense in the above matter about Buffet. Afterall he had earned a lot of money . So, whatever said people will feel good
Re: Re: Both strategy has its merits.....
by rathi on May 17, 2010 09:43 AM
Trading is a game. There is no fresh money generated. Some one's loss will be your profit. Your loss will be some ones profit. So the propability of making moeny in the long run is very low. You win 50% of times and loose 50% of times. But there is a person who is making money out of all the transactions in trading is a Broket. Investors make money for themselves and traders make money for their broker.
1) Invest in fundamentally strong stocks with growth potential in next 6-40 months 2) Buy low , hold, sell at profit , not get to greedy 3) use stop loss appropriately to limit loss.
4) If you cant do the above buy mutual funds when market is down ....not now.
But you still need to have enough to invest from your savings, invest 20%-40% max in stocks,mutual funds.
Re: Basics of Investing is Simple
by surya adiga on May 13, 2010 04:41 PM
Every one says fundamentally strong stocks, potential stocks... can you please explain how to determine fundamentally, potentially strong stocks. According to me to find the good ones one needs to dedicate substantial time on research which most people do not have. Hence these brokers take advantage of this and mislead investors.
Re: Re: Basics of Investing is Simple
by Amit on May 13, 2010 07:27 PM
surya u r right. Unless people understand the company they r investing , its future growth potential they shud avoid investing or wait till you see market collapse then byuy when well known cos are cheap in valuation to price (p/E)
Re: Re: Basics of Investing is Simple
by uma sankar on May 15, 2010 01:14 PM
I do agree Mr Surya.. how 2 identify fundamentally strongness of a stock as these fundamentals are so dynamic in nature and change constantly. One day Dow plunges 500 pts down and stocks too plunge and next day Dow goes up and recovers and our stocks also recover. My point is on what fundamental bases the stocks have fallen and what fundamentals amde to reciver overnight again is not understood. Mostly the manipulation otherwise why certain stocks are known as High Beta stocks and more volatility..!!
Re: Basics of Investing is Simple
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Re: Re: Basics of Investing is Simple
by indianbull on May 16, 2010 10:07 AM
As a Stock Market Investor, Trader and Analyst for the past 17 years, I can say that finding the sector which is going to perform in the next bull market is the prime importance. In 1992, old Economy Sector performed well. In 2000 Media, IT, Telecom, did well. In 2008 Power, Infra, and Reality did well. Likewise, find out the sector that is going to perform in the next bull market. Put your money there and wait for another 5 years. You would be one of the gainers from stock market. I feel Pharma, FMCG and Banking are going to perfom well in the next bull market.
