Don't do in stock investments

1.

First and foremost thing is not to be in a mode/feeling that stock investments give you unbelievable returns and can make your money double or triple in no time.

May be some stocks can be grow 80-100% within a month or so and mostly they are penny stocks which are controlled by operators or middle men. So it’s really dangerous to fell into this trap thinking you can also replicate the same. You can very well become bankrupt.

2.

Don’t ever put huge sum into one single stock at one go.

Never do this as it sometimes can cause losing your most of the invested amount.

3.

Don’t blindly follow suggestions given on TV or news paper or in some sites.

Most of the TV analysts say so confidently that some particular stock will definitely grow. If you observe  ,one guy on one channel says it can grow like anything and at the same time other analyst in some other channel will say that it can come down and the stock is not recommended for investment. So here suggession is free and the person who follow that have the bear the brunt of it. Be cautious.

4.

Don’t go for stock investment if you need the invested money back in short term(6 months or 1 year)

This definitely has an impact if your stock doesn't do well and to your bad luck if it is beaten to death.Then you will either have to leave that investment for long term or have to sell by booking huge loss.So it can change all your financial plans.

5.

Don’t ever borrow money and invest into stocks even if you are 200% sure that the stock will grow.

This will have huge impact on your financial life and sometimes it can cost your life. You might have read in news papers about death of stock investors and most of them die due to huge amounts that they need to pay back.

6.

Don’t be emotionally attached to any share.

Some people are so confident on few stocks that even if that loses most of it’s value ,they keep investing into the same stock. Sometimes it can work if the company has good fundamentals, but you are bound to lose most of your money most of the times. So be sure before putting most of your money into one stock or few stocks.

7.

Don’t think that Stock investing is like a gambling game, where you can make most of it if you are lucky!

Sometimes whatever you invested into some stock may give you better returns in short term, but that is not the case most of the times. Try to understand why the price is going up and be cautious with your investment.

Just be aware that

NOT LOSING MONEY IS AS GOOD AS MAKING MONEY

Happy investing!!!!!!!

My exp with stock market

Right after my graduation,I have joined TCS as a software engineer.Never bothered about savings during the first two years of my job.The only thing that was done from my end in the first 2 years was to buy two LIC insurance policies for myself.

Started getting some financial knowledge after that and was in real dilemma on how we can save/invest money to get better returns.Used to see some enthusiastic people talking about stocks many times. But never had an idea about how investments can be done into stocks and how much returns can be expected.

Slowly started learning more about stocks from people around and from Google.Even started watching business channels with too much of curiosity.Though I don't really understand what they discuss on TV or in financial magazines,thought myself that ,this is how anyone get knowledge on stocks though it takes time.

Somehow I was completely into that and started watching daily how prices are going up or down for shares.Used to closely monitor some shares which are known by name.

I was more fascinated to see daily/monthly/yearly gainers most of the time,just thinking about how my money can grow like them.Was never afraid by seeing daily/monthly/yearly losers and never bothered much thinking anyway I never gonna make investment into these kind of shares(anyway time will tell whether I was right or wrong!).

On One fine day opened my trading account with ICICI DIRECT and with in the first week itself bought 10 shares of Andhra Bank.Thought it will be good to start with this as I'm from Andhra and that too with the less money I have with me at that time.The investment was below 1000.

Daily used to check many times on how the price getting changed for this stock and other stocks which looked attractive to me.Got around 5 different shares before I start selling shares.

The price of Andhra bank has gone up more than 15% and I sold that stock booking profit. Was so happy that day though the money earned was meager.

Got some confidence with that and started buying some known names to me either from somebody else or from Google.Even some of my friends started investing through the same account.

So we all looked like people really meant for stock investment.Stock market investment was really like an exciting game for me (in fact for all of us)that time. Didn't have any basic knowledge like why the price was going up or down.But got so much excitement talking about stocks.

Initially what ever we bought gave at least some profit and after 6 months we were with no loss or no gain.

Decided to push myself further,started investing into some new stocks,whose names got on my own by following some online discussions/TV shows. Some of the companies we don't even know like what exactly they does and how they going to make profit to help the share price.

I was more interested to buy shares with less price thinking they can easily get doubled or tripled.That too to buy shares with high price, we need to have huge money and get very less number of shares.So my strategy was to buy more number of shares with less price to get more profit.

So with this approach,bought many company shares and some companies were unknown to me even with their names.But I was NOT in a mood to retrospect that time.

Satyam saga happened one day and I already had some shares which were bought when it's price was very high.I was busy in office with the work and one of my friend told me that Satyam price has drastically down.So we decided to buy few more shares thinking anyway it will increase. Didn't even bother to check why the share price has come down so much. Got some money as credit from my friend and invested into that stock.Few hours later got to know the real fact for satyam share collapse and by the time we check, the share price was almost beaten to death.
ass
Stock market started going down day by day and even good stocks were not performing well.Most of my money got struck with huge loss.Was able to earn profit on few shares but on a whole I was in loss.
Some of my shares were done around 40 to 60% and some shares were even down more than 90%.

Due to some urgency was in need of money,but couldn't go for another personal loan. So had to sell all my stock holdings by booking all losses.

Have learned my things with my short stint(around 5 years) in share market.
Will share all the things that should not be done while going for stock investments with my experience in my next post

NOT LOSING MONEY IS AS GOOD AS MAKING MONEY!!!!!!!!