Wednesday July 13, 2005

And the gambling continues

2) 8th Aug 2005

This is my second blog on this subject. The other day I got the opportunity to hear about the elements of investing on CNBC TV18 channel (classroom program).

-> Knowledge and understanding of business
-> stock that are considered undervalued have larger scope
-> Look at the benchmarks (charts, reviews)
-> Convition to succeed
-> Time management is critical
-> Margin of safety.

Finding value stock is very tough. Most people go by P/E ratio and we still see loads of stocks which are overvalued but moving up  continuously. So you pay for the quality of the stock. We should perhaps look at the stories which have growth and the managment of the company also needs to be good in order to deliver the guidance. So growth and management of the company are two critical things which you must consider while investing. Afterall investing increases the wealth of a person.


1) 13th July 2005

Since this's my first blog on Indian stock market, I thought I should write
about some useful tips if you are an investor. In past one year, I figured out
couple of things which are worth mentioning here :-


(a) Be less greedy. You should be greedy because you want to make money :-)
(b) Keep strict stop losses on a counter

(c) Look at the fundamental view and adhere to technical analysis (like moving
    avg, volumes, stop losses, support levels and all)
(d) Participate in momentum driven stocks. For instance VSNL was up Rs 80
    in two consequetive trading sessions.
(e) Look at the long term view on the stock.
(f) Keep your portfolio diversified
(g) Invest in good sectors which have good growth potentional and should
    less depend upon commodity prices like steel pricess or fright rates.
(h) It's difficult to time top or bottom. So catch the train when it's slow
    and get out when the steam is cooling a bit.
(i) Punter play is not so easy in the market, so riding the wave is more appropriate
(j) Buying good stocks when they are low (due to margin pressure or whatever) could
    give good returns if the fundamental story is intact
(k) You should book profits from time to time. I think you should always have short
    term, medium term and long term view on the stock.


Happy investing!!...