Nobody has ever been 100% right in stock market. Experience is the key for right decision making. I entered capital market way back in September 2003 and have seen one of best Bull Run and at the same time one of the worst fall. I observed one similarity in both cases. There were many stocks whose valuation reached to crazy level whether it is upside or downside. Sometime I made money. Sometime I lose money. But that experience has given one beautiful gift i.e. how to learn from own mistakes.
Learning is never ending process……. And I would like to continue it for lifelong. At the same time for the sake of satisfaction and growth, I would like to capitalize on my experience. Blog is the best medium without any investment to capitalize.
On this, would like to share some of the conclusions made during this period.
1. Market does not like uncertainty. Nobody knows when market will react to that uncertainty. But one has to be cautious when there is uncertainty.
2. Politics has direct relation with market. Have close watch over that.
3. In short to medium term market may show irrational moves, upside or downside. Long term approach can multiply your money. I interpret long term as at least 3 years.
4. Lots of opportunities will come in market. Quick decision should not result into long term investment.
5. Do your homework or have price target for your investment. One has to book profit at some point of time.
6. Averaging is not the right game to play unless it is being investment strategy.
7. Timing the market is next to impossible. But entry near bottom and exit near top is always possible.
8. Equity is not the only area for investment.
9. I do not support trading unless and until you have lots of surplus money and in addition to that regular source of income.
10. Future, Options and commodities are very risky but at the same time understanding of that in depth may give you extraordinary return also.
HAPPY INVESTING
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