Too many blogs, too many columns, too many writers. Very little actionable ideas.
Too many theories. Too much of cut paste.
Let us look at one of them today.
It is not the timing, but the time spent in the market that is important.
Is it true? Yes of course. Is it true always and in all circumstances? Sadly no. You need to keep picking signals from the equity market and act on that. When you see smart money act, you need to act accordingly. When Ta Mo was languishing at 170 (even at 270!) the whole world was in a pessimistic mode. It was almost impossible to buy Ta Mo. However one big investment company picked up a big lot. Even if you kept track of Ta Mo big transaction you would have known which. Yes it is necessary to be alert – alert to PUBLICLY available information.
Of course it is easier if you know people in Enam, JM Kotak, Motilal Oswal, Edelweiss, Anand Rathi, Sharekhan, Hdfc securities, Icici direct, DSP, India bulls, Indiainfoline, or fund managers, – not necessarily in that order. It is however not at all necessary for inside information. Keep track of the portfolios of mutual funds, of unit linked plans, see what the big guys are doing. Invest in a few companies – and track them like a fanatic. You also need to be aware that I have preserved a SELL on Ta Mo at 170 by a big broking house :). You also need to know the difference between views, news and noise….too much noise these days..be careful.
Going forward investment clubs have to be formed (without being branded as a ‘ABC Brokers club’ – more like a big information company – wanting to create clubs for investors. Investors should meet, discuss and create their own portfolios. It time has come.
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