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.
Friday, January 27, 2012
Wednesday, January 25, 2012
Thursday, January 12, 2012
Saturday, January 7, 2012
Thursday, December 22, 2011
Monday, December 12, 2011
Is the current UPA govt's policies weakening Rupee?
Most of the experts in India are blaming the current government and their policies for US $ vs rupee fluctuations.
Currently the dollar equivalent of rupee is 53rs which is an all time low.
Every problem faced by the people today like inflation ,poverty are caused by the rupee weakening.
How many people really knows this? How many have really thought about this?
Today if the transport prices are increased in some place , middle class and upper middle class people will just shout for two days and them like post Mumbai attack they will start doing their work as it is going to affect them only a little.
But the real people who the country does injustice is the poor and BPL people.They are the one who are suffering because of the wrong policies of current government.
Does anyone knows that the inflation and oil price rise are caused mainly by rupee valuation?
Who are the guys who benefit from this? The people who export are the one.
How? yesterday i got 150rs/kg for apple exported to US , today i will get the same dollars but when converted it will give me extra 4 rs /kg which when calculated for tons and tons of export will be huge.
So what is the problem with this?Are you jealous of this people?
No not really.Just think , India is a country which imports more than it exports .
So who are the real losers .I am not supporting any company on this issue who actually import from other countries ,am just speaking about the common people.
Our government is importing barrels and barrels of oil , already they are giving a huge subsidy on it.Now if our rupee weakens then we have to pay them more than they are worth of.
Statistics tells us that we Indians pay 48 times more amount than the oil price in international market.So it will cause a huge pressure on the same govt as they are giving subsidy.
So recently they took a decision like let the oil companies decide the prices :) of course its like loosening the rope tied on your horse , no govt will leave it to the hands of these companies.
So that caused a rise in petrol prices which came down recently after causing huge discrepancies in the life of poor people.
What policy of govt is causing this?
Do you know that our govt is buying dollars and selling rupees?
What can we sell rupee also? ,Is that the question coming to your mind.
This can be done by Forex trading , nothing but trading of currencies .,Exchanging currencies will also cause fluctuations in currencies.When a demand increase for a currency its value will go up and vice verse.
More and More our govt sells rupee in exchange for dollars for increasing our reserve the more and more people have to pay for it.
These are just common man's anger.Its not against any party or any politician.
please comment if you find its worth commenting!!!
Currently the dollar equivalent of rupee is 53rs which is an all time low.
Every problem faced by the people today like inflation ,poverty are caused by the rupee weakening.
How many people really knows this? How many have really thought about this?
Today if the transport prices are increased in some place , middle class and upper middle class people will just shout for two days and them like post Mumbai attack they will start doing their work as it is going to affect them only a little.
But the real people who the country does injustice is the poor and BPL people.They are the one who are suffering because of the wrong policies of current government.
Does anyone knows that the inflation and oil price rise are caused mainly by rupee valuation?
Who are the guys who benefit from this? The people who export are the one.
How? yesterday i got 150rs/kg for apple exported to US , today i will get the same dollars but when converted it will give me extra 4 rs /kg which when calculated for tons and tons of export will be huge.
So what is the problem with this?Are you jealous of this people?
No not really.Just think , India is a country which imports more than it exports .
So who are the real losers .I am not supporting any company on this issue who actually import from other countries ,am just speaking about the common people.
Our government is importing barrels and barrels of oil , already they are giving a huge subsidy on it.Now if our rupee weakens then we have to pay them more than they are worth of.
Statistics tells us that we Indians pay 48 times more amount than the oil price in international market.So it will cause a huge pressure on the same govt as they are giving subsidy.
So recently they took a decision like let the oil companies decide the prices :) of course its like loosening the rope tied on your horse , no govt will leave it to the hands of these companies.
So that caused a rise in petrol prices which came down recently after causing huge discrepancies in the life of poor people.
What policy of govt is causing this?
Do you know that our govt is buying dollars and selling rupees?
What can we sell rupee also? ,Is that the question coming to your mind.
This can be done by Forex trading , nothing but trading of currencies .,Exchanging currencies will also cause fluctuations in currencies.When a demand increase for a currency its value will go up and vice verse.
More and More our govt sells rupee in exchange for dollars for increasing our reserve the more and more people have to pay for it.
These are just common man's anger.Its not against any party or any politician.
please comment if you find its worth commenting!!!
Start your own business : Franchise
Many people would have visited KFC's and mcdonalds , have you ever wondered who is the actual owners of these shops?
These are actually franchises owned by people like us who chose a right platform for starting a small business .
First of all let us think what made these people in starting a franchise instead of starting their own business
Advantages of franchise over own business
* Brand name has already been established (like KFC's)
* Less amount is needed in marketing sector
* The original owners will readily help in producing products which you sell(guidance)
* Customers will be loyal , so increase in sales.
People who want to be entrepreneurs but lack in proper idea can readily invest their money in franchises.
Depending upon the nature and brand value of the company which you think of starting a franchise ,the money for starting it will increase.
To know about different franchises and the amount you need to start them
Click Here
What are all the requirements for owning a franchise
1) Investment - To start a well known franchise you require atleast 10 lakhs - 50 lakhs .But the minimum amount needed is just 10000 bucks.So all you need is just 10k to start your own business.
2) You need to pay a minimum fee called as brand/franchise fee to the company which you want to start franchise of.
3) You have to provide them about the property details where you want to start the outlet as these people will be too cautious to prevent any damage for their brand.
What is the advantage of the original company
1) A company needs huge capital in starting their business at a place which they don't know exactly about.This is main reason why many products of big companies and some of the big companies failed to reach milestones in certain places.
Without a proper study of the place where they are going to start none of them can survive.
2) Companies want to develop their brands to place beyond their reach.These can easily be obtained by this franchise concept.All they have to do is a little transfer of knowledge of their products and their business model.
3) The franchise is yielding profit or not the original company will get their money in the form of Franchise/Brand Fee and Royalty/Commission .So its always a win win situation for them.
Visit the site to know about best franchises!!! coming soon
These are actually franchises owned by people like us who chose a right platform for starting a small business .
First of all let us think what made these people in starting a franchise instead of starting their own business
Advantages of franchise over own business
* Brand name has already been established (like KFC's)
* Less amount is needed in marketing sector
* The original owners will readily help in producing products which you sell(guidance)
* Customers will be loyal , so increase in sales.
People who want to be entrepreneurs but lack in proper idea can readily invest their money in franchises.
Depending upon the nature and brand value of the company which you think of starting a franchise ,the money for starting it will increase.
To know about different franchises and the amount you need to start them
Click Here
What are all the requirements for owning a franchise
1) Investment - To start a well known franchise you require atleast 10 lakhs - 50 lakhs .But the minimum amount needed is just 10000 bucks.So all you need is just 10k to start your own business.
3) You have to provide them about the property details where you want to start the outlet as these people will be too cautious to prevent any damage for their brand.
What is the advantage of the original company
1) A company needs huge capital in starting their business at a place which they don't know exactly about.This is main reason why many products of big companies and some of the big companies failed to reach milestones in certain places.
Without a proper study of the place where they are going to start none of them can survive.
2) Companies want to develop their brands to place beyond their reach.These can easily be obtained by this franchise concept.All they have to do is a little transfer of knowledge of their products and their business model.
3) The franchise is yielding profit or not the original company will get their money in the form of Franchise/Brand Fee and Royalty/Commission .So its always a win win situation for them.
Visit the site to know about best franchises!!! coming soon
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