My experience with Share Market and investments
This article is all about sharing my experience with share market and related investment. The articles gives some tips that I learned during my share market activities. These tips are my own experience which might help others.
Everybody lives in a fast moving world and money is one which regulates everything. When it comes to investment of money, people try to avoid the share market due to its highly volatile nature. I personally choose share market because of high return one gets if the right stocks are chosen. Share market requires patience and knowledge. One cannot blindly buy and sell shares to get returns. Here is what I have learned so far about share market.How I have started to invest in Share Market
One of my friends advised me to invest in the share market to get high returns but I was a novice in the share market that time. Thus, he advised me to learn about share market and related activities by virtual portfolio in money control website. By following his advise, I started maintaining the stock portfolio and that makes me somewhat familiar with stock markets and related terms.
Once I got sufficient experience in stock markets via the virtual platform like money control, I started investing in stocks on a monthly basis and with a Systematic Investment Plan. I preferred to invest in ITC per month. I chosen to buy three share of ITC per month. The SIP date on which ITC shares are bought for me was 15th of every month. The total amount limit was 1500 Rs which means, I can only buy a share order for ITC when total amount is less than Rs. 1500. I continued this till one year (from March 2013 to February 2014). By this SIP method, I had invested and accumulated Rs. 25000/- when my last three ITC shares were bought by SIP. Rs. 25000 + return on this amount was useful to change or modify my portfolio.
This was my first SIP. I then started choosing various company stock based on history, company fundamentals, dividend history and reputation. Here are few of my learning during investment in stock market. My learning from Stock market investment
Conclusion
Always choose stock with good fundamentals. Do not simply imitate the trends but try to analyses the current situation of company and market. Read more and get knowledge. Update portfolio to be on profit side.
A very good article for the newbies in the share market. Generally, common investors don't have the technical know-how to judge the intrinsic value of a particular script. So they blindly follow another person who has made a good profit from a particular script. This is called 'herd' mentality and results in purchasing a script when it is highly priced, i.e., purchasing a script at a wrong time. Because of this 'herd' mentality, common investors can't make profit from share market. Common investors get unnerved by the gyrations of share market and take unwise decisions. Furthermore, day trading and short-selling also cause loss to the common investors.
I personally invest very small amount in share market (mainly in very select Bluechip scripts), because I know that I don't have technical competence to judge the timing of purchase and quality of scripts. So I prefer Bluechip mutual funds and I invest through SIP route.