I have said on many occasions that making money in the stock exchange is easy…here are some tips. I am calling it some more tips because I have given tips in the past…

  1. Change the image: Trading is not investing. Making money investing is easier than trading. Works for me.
  2. Keep Investing learning as simple as possible: it is possible to make money by keeping things simple
  3. Remember you are buying a business, so markets do not matter, the share that you buy matters a lot
  4. Indexing is fine if you do not wish to learn
  5. If you are ready and willing to learn, Indian indices are easy to beat. All our fund managers do that. Regularly.
  6. Have sensible expectations: 10-13% p.a. as of now (June 2016). I mean about 4-5 % above the SBI 3 year FD.
  7. You are buying a business – behave like the owner.
  8. Show patience like an alligator. After selecting the share wait for the price.
  9. Do not bother about the last 5% of the price. If you have zeroed in on a share, and buy. If your target is 300, Rs. 308 is fine.
  10. Make sure that the price at which you are ready to buy is not some previous low or some other ‘mental’ price.
  11. Read and understand Equity History and Investor Psychology
  12. Even brilliant companies cannot go against the tide
  13. Read the balance sheets, see management interview. If he sounds like a oilskin salesman, he must be one
  14. Past trends continue….but they could rhyme just as well and sometimes they could differ dramatically…

begin with a prayer.

Related Articles:

Post Footer automatically generated by Add Post Footer Plugin for wordpress.

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes:

<a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>