I have been investing in Stock Markets, Bombay Stock Exchange, more popularly known as BSE for the past 10 years. Ever wondered why is still BSE and not MSE (Mumbai Stock Exchange)....... who knows and who cares. I was just an onlooker during the 1992 year bull run.....traded heavily in the 2000 year bull run......investor in the current bull run. I have matured like a wine over the years on techniques to invest and make money in Stocks. In the year 2000, I did manage to make some money while others lost heavily.....here I am not boasting.....maybe I was just lucky to square off my positions at the right time. Now what is the right time???
My right time at that point of time was I was planning a vacation abroad and thus sold all my stocks since I was in need of money....lucky isn’t it?
Anyway here are few of the tips how I make money (well most of the times):
I believe in investing more in Secondary market than in primary market. Yes it is prudent to invest in primary market in good stocks like the current divestment like the ONGC, PTC, Dredging, IPCL etc... etc...... When a company is hitting the market for the first time, I prefer to buy it in the secondary market depending on the listing price and the future prospects. The logic behind this, it does not make sense in blocking money.
Invest with a target: After investing the share prices come down do not panic, if you are confident about the shares- hold on. But at the same time it is foolish to wait endlessly, thus have a Stoploss and book your losses.
On the other hand if it appreciates considerably i.e. if you have made the target profit, sell it. Book your profits and just don’t be happy on book profits or notional profits.
Do not put your good money after bad money: Avoid averaging at lower costs. Book your losses and invest in a better scrip.
Invest in stocks with good credentials: Buy shares companies who are well known having a good track record of churning out good profits and paying good dividends. Also be updated about the industry....if there is general industrial downturn the best companies also succumb.
Keep a tab on your investments: Don’t just invest and forget. Keep in touch with the newpaper articles specific to your scrip, check the technical analysis available on internet, study the annual report and if possible attend shareholder meetings.
Any comments????
Regards
Vijay