hi,
though i dont deal in stock market n invest in shares myself.....felt like writin sharin my thoughts on d what i m seein these days...
day after day i see more n more ppl gettin into shares...in office, in trains, amongst friends....d topic of discussion is shares......sites like icicidirect.com r opened first thing after reachin office....buy / sell shares first...baaki sab uske baad.....ppl who hav taken VRS r not thinkin of workin again somewhere.....y u wanna work when u hav d local sharekhan / indiabulls office where u sit all day long n look at screen all day n keep buyin / selling n earn few thousand rs... CNBC / NDTV Profit give u free advice all day n will make u n expert...
well investin into stocks is perfectly fine...if u look at empirical data also, stocks hav always given best return compared to other investment options....be it real estate / gold / commodities etc....
but d point tht's botherin me d most is d time frame......stock markets r all abt investing.....u keep pickin stocks which u feel r attractively priced n look at them from long term....only then stocks turn out to be best option......
what's happenin these days is stock markets r looked at short cut to quick money....
n tht's d reason y all r into stock markets......ppl see stock markets as one step solution to all money woes....i agree tht meetin all ends meet in these days is tuf for all....u need tht extra bit of support from whatever source u get to live tht life with all d comforts....
one invests nowadays dependin upon how much money one can spare...n hopes tht he / she can double it ASAP.....very seldom will u see ppl investin in stocks based on some research done by d individual....most of it will depend upon d "Tip" given by d friendly broker who is jus a fone call away or from some friend who is either workin with some investment banker or from here n there.....n more often the small investor buys in when d prices r already sky high n there is jus one way for d prices to go...n tht's fall.....
one more point to always keep in mind is Stock Markets in an ideal situation is a Zero Sum game....when i say a Zero sum game is someone's gain is at d cost of someone...so when u r ready to buy at those prices someone is selllin at tht prices n makin money at ur cost....
similarly u will find d brokers askin u to buy shares...where d appreciation will b in few rupees here n there n then sell it at a short notice...what's happenin is they r interested in brokerage n hence when u buy n then sell, irrespective of whether u get those few bucks r not, atleast their brokerage is assured in d transaction
if u look at d history after every meteoric rise has come a fall...be it d Harshad Mehta / Ketan Parekh etc etc...whenever tht fall has come, its ppl like u n me who have been d hit d most....
...a small piece of advice my prof had offered to us durin our b skewl days.....when u start hearin abt stock market in non-financial and regional newspapers ...tht's d time to stop investin as d markets r highly unstable n its d time for ppl with sound knowledge to come out of it....
our hard earned money is what is at stake so invest judiciously
happy investin n not speculating
aks
