While investing money in the stock market, what all things should be considered?
No.1: Don't go by Expert Advice because it will do you no good. 99.99% people don't give you the right advice. Anyone who bought a penny stock like Antgraphic also thinks he is an expert.
No. 2. Stay away from small stocks. They have a tendency to be manipulated and then thrown into the dumps.
No. 3. Stop listening to CNBC and NDTV Profit.
No. 4. Pick from Nifty 50 or BSE 100 or BSE 500.
The first mistake to avoid is to assume that the cheapest way to enter this market is through initial public offers.
Says Gaurav Mashruwala, a Mumbai-based financial planner: "Many people say that the market is too expensive and putting money in an IPO would be cheaper. That is a wrong strategy. Companies just getting listed are more risky than established blue-chips."
The safest way to enter the market is by investing in large companies, ideally those that are part of the market index.
Once you gain some experience, you can diversify. Even then, it's better to stick to well-known players. Try and get research reports from reputed brokers ...more
Humans have a natural tendency to follow the crowd, but when it comes to stock market investing, following the crowd can often result in losses. Why replicate the mediocrity of the masses when you can clone the success of the Worlds Greatest Investor?
The investment secrets of warren buffet have got unveiled here.
Ramalingam K, MBA, CFP, ...more