Category: Miscellaneous

21 Mar 2024 16:45

Joined:	10/12/2016
Level:	Diamond
Points:	109190

Points:	5

Some patterns worth looking for in the world of investment

Investment is an attractive word. Everyone wants to invest in such a way that money multiplies quickly. But only a few succeed as many others do not earn as speculated.
There are some patterns in the financial markets and they will always be there often repeating with time. Let me give the example of price of gold. The price of gold generally increases but sometimes it steeply increases while at times it remains stagnated for quite some years. We can visualise it by going through the historic data of gold prices.
So, an investor should not feel discouraged by stagnations which are so common in between the journey of investments. We must watch for long time patterns rather than the myopic ones.
What are your experiences?

#777642

21 Mar 2024 19:28

Joined:	02/06/2009
Level:	Diamond
Points:	145553

Points:	5

There are different thought processes on this subject. Again age of the investor is also an important factor. Some people can take risks and gain better money. But some can't do that. A senior citizen who is dependent on the reserves he is having should see that his funds are safe. But a person at the top of his career and earning a good amount of money may also afford a loss. Such people can take risks.
Investing in and selling shares is a way to make quick money. They plan their day in the morning and invest and go intraday business which will give them good margins. But everybody should be careful and see that their money is safe. Generally. investments in mutual funds are becoming common.
But one basic rule is don't keep all the eggs in one basket. One should park their funds in different schemes like some in FDs, some in MFs and some in stocks.

drrao
always confident

#777647

22 Mar 2024 11:30

Joined:	20/01/2017
Level:	Diamond
Points:	25422

Points:	5

I did not have much idea about the investment of our money but from my father-in-law, I came to know about many schemes which give good returns on a continuous basis. He told me never to indulge in share market or speculative investment and cautioned that if I did so I could lose whatever little money I had. He was against buying gold jewellery because as per him it was not a healthy investment.
He advised us to keep money either in Post Office or Bank. He told us that was the safest way to park surplus money. Another scheme he advocated and insisted us to open account was PPF which I later came to know was really a flagship scheme in the world of financial investment.
My disappointment was the continuosly decreasing bank FD interest rates pattern which came down from whopping 13-14% in 1990 to 6-7% today.

Thoughts exchanged is knowledge gained.

#777650

22 Mar 2024 12:09

Joined:	25/11/2014
Level:	Diamond
Points:	43292

Points:	5

Age is an important consideration while investing money in different instruments. There is no such fixed rule that the seniors should not remain invested in the share markets. I have seen many of my friends of age groups between 70 and 75 take enough risks by parking their money to debt -equity funds, mutual funds and equity - funds. Strangely, they are the happy souls. However, I think that old age is the period when the persons should take enough precautions to preserve their money so that the parked money can be encased due to health - disorders and for some emergencies like a wife's falling health or any emergency need.
Hence priorities are always variable depending upon the age - groups of a person.
For the young people having decent incomes can take risks to multiply their resources by getting the same invested in the multiple instruments to take care of their family - needs.

#777653

22 Mar 2024 13:01

Joined:	31/10/2012
Level:	Gold
Points:	4015

Points:	5

Stocks undergo various stages like accumulation, appreciation, distribution, and depreciation. Most of the stocks follow these cycles and a good investor accumulates quality stocks during accumulation stage and sells it during distribution stage. They don't follow the herd mentality of chasing stocks which are already running and overvalued. Also, diversification is important in any kind of success related to stocks investment. Investors should make sure they have their money equally distributed into various sectors to avoid risks.

I don't think people like us have that much patience to accumulate stocks for 2 to 3 years because most of the people want quick returns. Usually, multibagger returns are achieved in a period of 2 to 3 years and big players are the masters of accumulation and they know which stocks have the fundamentals to do it. People who don't have time should invest in mutual funds because you can't match the skills of a professional.

Humble yourself or life will do it for you!

#777733

25 Mar 2024 16:04

Joined:	21/05/2012
Level:	Gold
Points:	13421

Points:	3

I think it's important to look at the big picture when you're investing. Instead of worrying about every little change in the market, it's better to focus on the long-term trends. That means sticking to your plan and not getting too stressed out when things don't go exactly as you expected. By looking at how things have gone in the past, you can get a better idea of what might happen in the future. A lot of pros look for good companies to invest in for the long term. They study the company's financial health, like how much money it's making and how much debt it has. Then, they buy stocks in those companies and hold onto them for a while, even if the market goes up and down. This way, they're not too worried about short-term changes and focus on the company's potential to grow over time. It's like planting seeds and waiting for them to grow into big trees.

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Some patterns worth looking for in the world of investment

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