Make no mistake - The stock market is a sophisticated, wild beast!


Posted March 13, 2019 by akshayrsi

And as with any wild beast, taming it to your wishes is an almost impossible task. However, by closely studying the behaviour of the beast, we can surely benefit a lot.

 
It is a fact that the market cannot be manipulated to work in ones favour as it is governed by umpteen number of factors ranging from economic performance to national and international factors, natural calamities to manmade ones like war etc. It is virtually impossible to pinpoint the exact outcome of each or the combination of these factors on the performances of the stock indices.
Since the early days, when the stock market was still evolving and not in the form as we know it today, two streams of thoughts have always remained active and also benefited by participating in the market actively. The two thoughts are contrary to each other but have still flourished. One stream of thought represents the risk takers who act on their gut feel and believe in speculation, while the others are the calculated risk takers. In either case, risk is the common thread, the only difference is the way the risk is taken – gut feel or informed decision. The jury is still out on the decision on which is better of the two; however the fact remains that these two mutually contrasting styles have been in existence for centuries now.
So as an investor what style should one follow?
Being a stock advisor, Real Stock Ideas cannot recommend you to follow any particular style of investment. However we sure can recommend you certain Do’s & Don’ts that any investor should follow while investing that may lead to optimised returns matching your profile. Besides providing investors with NSE Trading Tips, Intraday Trading Tips, Stock Market Tips, Stock Future Tips, Real Stock Ideas believes in following certain tried and tested principles that can lead to good, sustainable returns for investors. We have arrived at these conclusions after having directly or indirectly experienced and documented first hand experiences of a large number of investors.

• Mr. Krishnan started investing in the stock market about fifteen years ago at the behest of his boss. Initially, he simply followed his boss’s advice and just replicated his boss’s portfolio. The results were devastating in the initial years. He later on learnt that his boss too was following someone else and replicating the same portfolio. Hence, if the original person made the profit, Mr. Krishnan would be happy and vice-versa. Mr. Krishnan soon learnt the basics and found several flaws in the herd investment methodology. After investing for about for about two years, Mr. Krishnan finally dumped the herd mentality and began investing smartly with tips from Real Stock Ideas and now is extremely happy with his investments.

• Kewal was in his 2nd year commerce when he began investing in the stock market. Being dependant on his parent for all resources, Kewal would save from his pocket money and work part time to fund his investments. His father too was an investor and encouraged his son to invest judiciously. However, being a college kid with no liabilities, Kewal wanted to make it big in just two-three years. Hence he started buying equities and selling them in short time (not intraday). While this strategy worked in the short term, eventually he started losing money on his investments. That is when he approached Real Stock Ideas for guidance and we advised him to think long-term with equities. Today after about five years, Kewal is fairly rich as far as the valuation of this holding goes. The stock market gives best returns when invested with a long term horizon in mind. However, there are other avenues within the stock market for short term investing too.

• Mr. Khan was an excellent cricketer. Having represented his school and then college at various platforms, he was quickly recognised as a player who times his ball very well. Unfortunately for him, a fatal accident shattered his dream to play further and reach greater heights in cricket. However, just like cricket, he felt that he could time the market best and walk off with profits at will. So, when he started investing in the market, he realised that the stock market bowled him deliveries which were very different than those which he could time well. In most cases, the stock market caught him unawares or he was caught mis-timing the market. This caused heavy losses to him in the initial days. However, when he approached Real Stock Ideas and we analysed his situation, we found that he thought of the stock market as a game of cricket where timing your shot played a very important role. One waited for the right moment for the loose ball and despatch it over the boundary. He realised that it was impossible to time the entry and exit in case of a stock market due to the sheer number of variable impacting the stock movement. From that moment onwards, with help from Real Stock Ideas, Mr. Khan went investing in a very systematic way. This not only helped him regain the lost money, but also add value to his portfolio. Today he is a very content man.

Even advice or recommendations from seasoned players like Real Stock Ideas can go wrong at times. Investor should understand that they need to be very cautious while investing in the stock market. The forces governing the stock market are very dynamic in nature and are extremely difficult to predict. Hence, recommendations do help, but do not guarantee returns in the stock market. At the end of the day, it is their own judicious call that will decide the fate of their investments.

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Rupa Solitaire Bldg,
A-1 Unit No.902,
Sector 1, MBP, Mahape,
Kopar Khairne, Navi Mumbai,
Maharashtra 400710
Phone No. 022 49180000
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Issued By Real Stock Ideas
Phone 2249180000
Business Address Rupa Solitaire Bldg, A-1 Unit No.902
Sector 1, MBP, Mahape
Country India
Categories Finance , Services
Tags intraday tips , intraday trading , nse trading tips , share market advice , stock future tips , stock market tips
Last Updated March 13, 2019