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Stock Shastra is an initiative by MoneyWorks4Me and is about the principles of stock investing. The asked me about my style of stock investing and have posted it here
The carnival has very interesting contributions from fellow bloggers and is an delightful compliation of stock investing styles.
Do hop over to the site. Excerpts of my post on the thought process behind the style:
Experts add to the confusion: If you look up to TV, Newspapers for tips, let me pray for you. There are so many conflicting views (and all of them appear confident and right), that I do get confused. Now I look for information, not views/tips from the Newspapers/TV.
Timing the market is impossible: Nobody actually knows whether the market is going up or down. And When! I have made countless attempts at predicting the market and hoping to time my investments. I have failed more often than not.
Mutual Funds are more costly than ETFs: Having discovered the abilities of stock experts, I also discovered that we pay a lot of fee for their fund management abilities. I have also learnt that majority of the fund managers underperform the market indices. And they get paid from our pockets for underperforming the markets!
Riding the momentum wave is not for long term: We have everyday reports of top gainers and losers. And there’s a whole lot of day traders riding the wave and appearing to make good money every day. But along the way, we have also seen suicides when the markets crash. To me, it is a zero sum game where you win some and lose some. Eventually balance it out.
Discipline/Emotion Control is important: It is easy to get waylaid by emotions of greed and fear. So it is important to understand this risk and continue with your investing, come what may. You also need to figure out your own risk appetite and not just ape anybody else.
What’s your style of stock investing? Do share.
About Ranjan
He edits Personal Finance Online Resources, delivers Financial Awareness Workshops and has built a desktop RupeeManager.
Email: ranjan@ranjanvarma.com or Call on +919867755615
Dear Sir
It is said that those who does not understand stock better he invests through MF. i really don’t know the jargon of stock markets like ROE, ROCE, PE etc.
So, i am investing in MF. I have no other alternative. I have to bear the expense from my pocket.
Regards
Das
Dear Sankha Deep Das,
You are on the right track, investing is MF is best opton. If you are thinking you will double and triple your hard earned money by investing in direct equity that is not possible.
If it possible, everyone left her job and just double and triple his money by investing in stocks.
And if you are aware of current updated, there is not load if you invest in MF. There is just FMC (Fund Management Charges in MF) (1.5% to 2.25% Annual)
Which deduct on daily basis from NAV.
So keep going investing in MF.
And focus on your full time Job.
Ajay
@S.Das & @Ajay MF are the right choice for many of us. Stock picking is a difficult task and not for the faint hearted. Thanks for yr comments
Dear Ranjan,
Despite having not so meagre experience in this dreamland, I belived and still believe (amazing it is still intact)that the staying in the market – for long (how long I don’t know), knowing a bit fundamentals (virtually there is no scale)and hoping against hope can bring dividends – still this bazaar is known to shake up what else is left after one you have passed through it. We can recollect lot of sucess stories but only when they are written and certainly not during the process of being written. But alas, we all love this uncertainty!!!!
@Naresh But there’s a lot of learnings as take this roller coaster ride!
Thanks Ajay Ji for your valuable advice and motivation.
Best regards
Das
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