My Personal Experience in Equity

Till now i have shared the possible ways to invest your money.In this post i want to share my personal experience in equity.Only way to become a good investor is to learn from your mistakes/experience.I have gone through many books , articles ,even some comments in famous articles ., Only thing i got from them is no one will share their real strategy which they follow to earn profit out of market.
Every book will be telling just the overview on how to invest in market , no one will be sharing what is their strategy , how they gained out of stocks or their portfolio .. etc
Its just to make people to read their books.,But even what i want to share is the same thing.Books can just guide us and it will not give any assurance that you will earn profit.Its just your own experience which can lead you to become a good investor.

The main thing which everyone needs to understand is "Even Warren buffet will not win every time ". Its about minimizing your losses , Its like how many times you are winning and how many times you are losing.The more is the number of winnings ,then obviously you are moving in right direction.

Never ever believe the advices given by experts or your friends or any websites and invest your money in stocks., Because this is the biggest mistake every retail investors does.They will just watch a news about some xyz stock , buy some huge quantity and sometimes they will earn profit and some time a big loss.
All these news coming out of channels , websites are new to only people like us , the mutual fund companies , experts everyone knows about them much earlier than we know.So its them who will be selling you their stocks at that point of time.And another fellow retailer will be buying from you thinking the price will go up!!

Always have this statement in your mind "Buy when others sell , Sell when others buy"

just do basic research of your stock , the movement of it and always go for good companies ,because they will be fundamentally strong and you will not lose your money all of a sudden.,its like buying tomato ., When the tomato price is Rs.5 per kg everyone will be buying and if you have an option of selling the same (of course you can't store it for long time like stocks) when prices go up to Rs.20 per kg.

So if you know the movement of the stocks and if you buy it at a possibly low amount then you can sit quietly and watch for the market value of it.Generally retail investors who think of short term investment no need to do a big fundamental analysis or any other research ., Only think you have to keep in mind is what is the market value of that stock and compare it with 52 week low.

if you feel that its good rate to buy that particular stock at the present level then go for it.One more important thing is "Don't ever expect huge profits out of your stock and wait for long time" .Just fix a target in your mind say 4-6% and sell it wen the stock reaches it.Waiting strategy will not favor you all the time.If you are very much confident that your stock will raise then stay invested , otherwise go for the kill.

One of the important things which a investor should be knowing is averaging and Stop loss.
There are two type of average :

1) Buying the stocks by investing some more money when the stock price moves down.This will average the rate of your stock.Eg: you have bought a stock say infosys for Rs.2800 ., Now the price has gone down to 2700.Now you are buying one more stock to average .So currently the average price is 2750.So when the stock moves up you will gain because of averaging done by you.

2) Selling a part of stock you have and buying once again when it goes down.
Eg: Same infosys stock you can sell (which you already hold) for 2750 and then buy it at 2700 ., so that indirectly you have gained 50 rs out of this stock.This strategy can be used when you think that stock price will go down.

3) Stop loss are nothing but the price beyond which you dont want to hold that stock as it will cause you a huge loss.Its always better to fix a amount as stop loss so that your money wont be going too much.

Postal monthly income scheme

National pension scheme

Investing in Equity