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  • Category: Miscellaneous
    Points:5

    Don't jump into stocks without any background

    Thanks to some political predictions, there is a positively uncertain post June 4, 2024 scenario that has now emerged. The stock market has crashed a bit, and some pundits are not very optimistic. They would tend to think that the market would bounce back after the first week of June only.

    Let us take advantage of the crash and buy some stocks, seems to be the strategy of many. But a couple of friends who had enough money through intelligent wins in the stock market at the right time, are advising me and others to rather go to the banks where a decent 8.50 percent interest is now being offered for senior citizens. They tend to advise against any big investment at the moment.

    Do you think caution is exactly what is needed now?
    .
  • #779297

    Points:4
    Very well said. Though on a longer time frame stock markets fare well but there are always ups and downs associated with it and people can often lose money on short term. Stock market is sometimes compared with gambling where luck factor works more than the knowledge of the matter.
    Anyway, one should be very cautious and careful while trading in the stocks because nothing is predictable in that line and even the experts sometimes lose heavily.
    There are many factors which determine the stock prices. Though good economic conditions and growth fuel the stock prices but the stock prices also go down significantly in adverse political situations.
    Let us cross our fingers till a stable Govt comes in power after election and then only we should decide to invest in that uncertain terrain.
    Thoughts exchanged is knowledge gained.

  • #779305

    Points:5
    Investing in company shares or mutual funds is not an easy proposition. Though many people boast of making huge money in the stock market but I have my own doubts about those claims. Even after having knowledge about the stock markets and having experience in that line, it is not necessary that every time a person would be benefited. However, inspite of these apprehensions the experts in the field advise us to invest only in very good companies (blue chips) and stay invested for long time to reap the real benefits. Serious investors can find more about this advice by visiting the genuine resources about this topic and can attempt to make money in share market. Some people do the financial ratio analysis before investing. People interested in investing in share market can go through some important tips in the matter.
    Bank and Govt deposits are said to be the safest and hurdle free investments and people not conversant with the complexities of stock market can invest in these safe channels.
    Knowledge is power.

  • #779313

    Points:5
    One should understand and acquire knowledge about the stock market by following BSE or NSE. If anybody wants to buy shares of a particular company, they should study the financials of the company and how the stocks of that company are doing in the market. I think this knowledge will come into practice. But the stock market is always risky. Only young people who have sufficient funds and can afford a little unexpected loss should go for it. They should not invest total money in stocks. Mutual Funds are better than stocks.
    Retired persons who depend on the monthly interest they get on their deposits in the bank should not opt for stock trading. They may lose money in this bargain. As mentioned by the author, it is better to invest in FDs in banks so that every month we will get some fixed amount for their livelihood. One should not believe the advertisements and apps that are boasting hefty returns in this market.
    drrao
    always confident

  • #779346

    Points:5
    Members have contributed good points and ideas about share market investment. I want to add my one of the experiences that gave me a big lesson that never believe the market and be ready for surprises of all kinds.
    That was year 1994/1995 and I was posted in Chennai office of my company. Some of my colleague were very much involved in share market transactions in pursuit of quick money and often boasted about their good earnings. We also got tempted by their talks and decided to invest in some stocks. They advised us to buy some wind energy stocks as that was much talked about at that time. So, I also bought 100 shares of a top wind energy company at that point of time for a rate of Rs 460 per share.
    A few months later some big market crash took place and gradually the shares of that company came down drastically and was trading for less than Rs 10 per share.
    I donot see that company anywhere now but the point is that I lost heavily.
    Share market is a place where one should tread very carefully.
    Knowledge is power.

  • #779349

    Points:5
    Stock market investment/trade is more risky than the conventional bank deposits or other savings schemes.

    It has both chances of high returns and high losses too.
    Beginners may start investment in stock markets through Mutual Funds- even that is not guaranteed to be always profitable.
    If one has to stat investing in stock market then at the very first one has to decide how much risk he can take. Keeping that as the highest threshold, one should start investing in established, reputed and strong companies in small amounts. One should stay invested and do not bother about the small fluctuations in the share values where one has invested. Investor can take help of some locally reliable stock broker or agent. But till the investor gains some good practical experience and become aware of the risk and return, one should invest slow and steady and do not indulge in any speculative, intra-day or derivative trading.

    Even now we can invest in some good and financially strong and performing companies of promising and performing sectors, if they are available at lower price. Some homework like reading company reposts and the news about the companies( not propaganda and promotion)in the media also should be watched and analyzed.

  • #779353

    Points:4
    Investment in the stock market is always risky with an unpredictable return. However, most of us would like to take some risks to see that our invested money gets a return of manifold. This sort of temptation allows one to remain invested in the stock market.
    However, there are certain instruments in the share market such as mutual funds especially, debt funds and balanced funds floated by different banks which offer us a high return in due course.
    The other strategy of the investors should be to watch the market in the long term perspective to enjoy a substantial profit from our invested money. However, the risk associated with the stock market is unpredictable and hence it should not be treated as a cup of tea for investors expecting a high return in a short duration.

  • #779357

    Points:4
    I was advised by some friends not to invest in share market and instead invest in mutual funds as the latter was less risky. So, I had done that in some selected mutual funds. That is about 15 years back when I was actively involved in that type of investment. Unfortunately, my average return after so much efforts was akin to the return that we get as interest from bank FD.
    Anyway, I discontinued investing in mutual funds after that episode and have not got any further experience in this matter.
    Thoughts exchanged is knowledge gained.


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