Tendulkar or Sehwag

Posted by Suraj Bekal on 6 March 2010
Last update on 3/8/2010 12:00:00 AM. Total replies 3

Whom do u want to be ?

The basic funda of stock market earlier days used to be – Invester lends his money to the company which he thinks has the potential the company uses his funds debt is cheaper than equity to generate their turnover earns a good profit and distributes a certain percentage of their profit with the person who lended money to them. The invester has the option of withdrawing his money at any given point of time. SIMPLE – Isn’t it ? But where there is a software there has to be a virus.

Many people often ask today what drives the stock prices? Is it the company’s growth or the virtual market ? Early days where cud u see the market fluctuating by 2 -3 % on a daily basis ? I and you wud definitely call it stupid to hear someone say the company made profit yesterday and a loss today. But today the fact is ...more than the company’s growth it is the demand and supply forces of the TRADERS which is driving the market prices. No issues it’s lovely to see all making profits :- Hold on... Happy. Picture abi baaki hai mere dost.

The 2008 financial crisis on the contrary saw investors fled the stock market and left nothing to be spared. The stock market index plummeted to the worst level since the Great Depression years. This also indicates that stock prices are also very much dependant on psychological elements such as fears and greed. So readers during the crisis let me bring to your attention again Investers Survived - Traders Submerged.

BORING !

Taking cricket as an example. All the batsman has to do is see the ball and hit it between the spaces buy stocks . Yet there is a technique involved fundamentals . When batsmen shine in their debut the country seldom check how technically sound they are being in the groove of making profits in trading and enjoying but when they are out of form in commentaries its often heard “GET BACK TO THE BASICS”. The same goes with the share market. For instance Tendulakar Good Company Fundamentally and Sehwag Market Trend though its more thrilling and fascinating to see Sehwag bat but on any given day when the target is above 300 CRISIS and both are in form u can blindly rely on Tendulkar. REASON – Fundamentally Sound – Reliable – Trusting ur Choice – Greater probability of success – Lesser Risk.

Y all spend all the time observing the markets. If u happen to be on a holiday when the market fluctuates and u miss the day u were waiting for U R JAGGED BIG TIME. So rather make ur investment and RELAX.

Readers u must have understood by now as to where I am leading you. I ve not said trading is completely bad keep trading but trade limited just to accumulate for ur ultimate motto - Buildng ur Portfolio with gud companies for long term.

People are habitual of reading and forgeting simple things the next moment so all i am trying to do is remind and remind and remind them about a REALITY PORTFOLIO CHECK.

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Showing 1 to 2 of total 2 updates for this Investor Education ordered by Latest Updates

Posted by Suraj Bekal on 8 March 2010

Thank You guys, its indeed a pleasure to see readers understanding and acknowledging the time and effort dedicated to the remaining MumbaiBull readers.

I am just a CA student who is investing his monthly stipends in the share market. U all may not realize how much ur suggestions and comments help me in my decisions. All i can do in return is HELP U ALL TO HELP ME.

Lets build this investing family.

CARE TO SHARE AND SHARE TO CARE

Posted by d.s.anupindi on 7 March 2010

Hi Suraj

Great work, excellent way of presenting the fundamentals and market trends in terms of easily understandable Cricket. True one needs to build up a good portfolio by trading with certain amount of discipline and calculated risk with the help of fundamentals and technical data. You said it "FEAR" and the "GREED" are the main elements which bring the downfall.

regards

DSA