Some of my learning from investing:

  1. If your family is not risk oriented / risk understanding it is difficult for you to invest / trade in equities.
  2. Investing maybe a part time activity, but equity trading is a full time activity.
  3. If you cannot make equity trading your full time activity, DO NOT make it a hobby. It is too damn expensive.
  4. See how a person reacts to a significant loss based on your trading ideas. If it a relationship spoiler, do not do business with him.
  5. Beware of dentists, florists, driver, barber, vet, dietician, – anybody who wants to give you tips.
  6. You can spend a lifetime in learning who is a good ‘tip’ provider. In most cases it is goodamn luck.
  7. Only liars get the bottom and top of the market. Retail investors get the top for buying and bottom for selling. Normally.
  8. A fund manager can average Icici bank from Rs. 300 to Rs. 1200 and on the way down to Rs. 400. YOU CANNOT.
  9. As a trader stop losses are important. As an investor averaging MAY work. Only experience tells you which to use when.
  10. Have a small number of securities. Have enough confidence to stake at least 5% of your equity portfolio in one share.
  11. Learn to take losses quickly, cleanly and without a baggage. However write down the learning in a book.
  12. There is not much to learn in debt investing as long as you stick to Post office / bank deposits, but learn about inflation.
  13. Long term tax in equities is NIL. Dividends are tax free. Use this knowledge to increase your wealth substantially.
  14. Create a nicely balanced portfolio and have it reviewed by a sensible investor.
  15. Past experience and data is useful as a guide, not as something cast in stone.
  16. Do not lose your friends, spouses, parents, money anywhere. The tensions are not worth it. Intentions do not matter.

 

short work for a Sunday !!

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  1. Everything is perfectly right sir, But, unless and otherwise one does not experience it, they cannot accept it because the severity of the pain should be LAB-TESTED.

  2. One of the best post… Sir you can add one more… Like .. There is no holi Grail… If you find one it’s surely or probably illusion.. 🙂

    I wish you would write something on what’s makes you interested in company.. When you think about to make investment into it..

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