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Rated: E · Column · Other · #1601606
It is important for every investor to understand his/her style of investing.
Experience in stock market was probably best defined in a hindi movie -  Sorry bhai, by Bomman Irani. The dialog
goes something like this:
         Jo shares mein khareedtha hoon, uska price girta hai..aur jo shares mein nahi khareedtha hoon, uska price badhta hai.
         Isiliye mein ye phaisla kiya hoon ki - Aaj se, mein vahi shares khareedoonga jo mein nahi khareedoonga.
(The price of the shares that I buy - falls, while the price of the shares that I don't buy always increases.
Hence I have decided that I will buy only those shares that I don't buy)
         It has been the story of many of the retail investors. Especially in this wavy stock market. At the outset, it
appears that there isn't any direction, but it surprises many by moving up. And I am sure, by the time, I decide to pump in
money, the downward spiral would start. A series of IPOs that have come out, that were expected to boost investors
confidence have in fact dented it. Adani Power, NHPC that received tremendous QIB, HNI response have not seen much demand post listing. The last 6 months has seen FIIs pumping in money to the order of Rs.46000+ crores,
I believe lot more of idle FII money is yet to find way to the market.
         The big question is - Is it time to get in? Or wait? or Sell? I do not know. For sure, I would like to make some money
right now, by short term trading, however little it may be. Many of us might have missed the Tata Steel or Tata Motors,
or Suzlon, Thermax bus - I am sure, there would be some more that would would follow these way.

         We would see analysts time and again giving buy calls and sell calls based on retrospective calculations/ patterns. Time and again I have seen recommendations that play safe to the extent that the stop loss would be few rupees below the existing price and the Target would be few rupees above the current price. Not sure if brokerage houses put trainees to give such recommendations!

      I am not a guy who understand the charts(candle stick, and various other patterns that I hear of). After long time being
in the market, can I pick up a stock that clicks? I cant say for sure. The only way is to keep experimenting your style
of investment. For example, I have a weakness that I find it extremely difficult to buy a script, above my first buy
price. In order to circumvent this I buy in reasonable chunks so that I don't hit this block repeatedly. The downside
of this is: I would not be able to add to existing shares, despite there being positive news about the stock. I have seen
few others who are extremely good at adding small quantities of shares, but regularly and appropriate time, while I have
seen some others who are content SIPping and it has worked out for them.
         Every investor would have his/her style of investing. It is better to pay close heed to that and understand your style.
It is as equally important as listening to brokers recommendations. Some day you will hit a jackpot with your style.
Happy investing!
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