Here is a query that I got from a person whom I know from my blog….(I do not know her except through emails, but she is a very smart professional).
Here is the query “Had a visitor from xyz securities yesterday. He wanted me to open a trading account offline.I have a broking account which has since gone dormant(I had used to to invest in 2 IPO’s a long time back – Cairn and GMR) Started talking to me about direct equity, the necessity to book profits from time to time, futures and derivatives and intra day trading.
When I told him that I was’nt interested in F&O or deivatives and intra day trading, he told me of another plan, where I need to invest a minimum of Rs one and a half lakhs of which he would use a third for long term stocks, and the rest for weekly and monthly direct equity rotation.
Sir, Should I invest in direct equity? Should I do profit booking of the 2 shares I own?
As for the trading part I can almost read your mind “the only person to make money by trading is the broker” 🙂 ”
End of quote
Absolutely right! Keep away from opening a broking account. Use the old one to sell these 2 shares which you have bought. Read my blogs which say why it is difficult to make money by applying in an IPO.
Continue your SIPs and decide to invest in equities only AND ONLY if you are sure that you can invest in learning about equities. A person in another profession should not, repeat should not deal in derivatives. When a relationship manager (he might be an MBA for all you know) says something, remember, he is from the sales function not from the fund management side of the business.
The necessity to book profits from time to time is like a doctor saying…’See you have got cancer…you should not have out side food’. Fantastic but useless information AFTER A PERSON has already been detected of cancer.
Post Footer automatically generated by Add Post Footer Plugin for wordpress.