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Showing posts with the label Behavioral Finance

16 Timeless Tips ....

An attempt at making quick money leads to losses far higher than the initial investment. If stocks don’t seem by historical standards, stand aside and invest in very small amounts.  Buy and hold does not work always .Never average down a losing investment unless it is a part of well-thought out process. The best tip is there is nothing called “Hot tip”. Never fall in love with your stocks. It will never fall in love with you. It will fall with market J Calculate first how much you can lose, not how much you can gain. Valuations don’t matter in short run and “short run” can last for months and even beyond a year … Experts care about risks and Novices dreams about returns. Forecasts usually my market experts are usually useless. Develop a method and stick to it and have patience. Lots of humility helps.A rising tide raises all ships and so you may have been just lucky. Stocks fell more than you think and rises higher than you will possibly imagine. Investing in po...

The Monkey , Goat and Stock Story :)

So there was this village where one day a man appeared and said that he wanted to buy monkeys. He said that he would pay a hundred rupees per monkey. The villagers caught all the monkeys in the neighborhood and sold them to him for a hundred rupees each. Soon another man appeared and said that he would pay two hundred rupees for each monkey. But there weren't any more monkeys around. They were all owned by the first man. So the villagers went to him and said that they were willing to take the monkeys back and return his money. But the monkey owner was unwilling to sell. The villagers raised the offer price to Rs 150 per monkey, then Rs 175 and finally to Rs 199 but the man just didn't want to sell, even though he clearly didn't have any use for the monkeys. Eventually, just to see whether he would sell, they offered him Rs 200 but he still refused. The villagers were puzzled by this. Finally, one of them figured out that there must be someone else who was going to...

Good days for IT is over for now..You are fired!!!

This will be a long post and require a lot of patience to read,,, Just think about the years 2001-2007 , where IT job was a top pick among Indian graduates due to various reason : Quick money (onsite at USA and other countries) 15-20 % CAGR wage hike every year Companies were getting big deals due to cheap cost advantage over other countries If somebody was losing job , he was trying and getting it in few days with other firm with high CTC J . Now tell me guys does this things hold true in these years in higher probability. I know answer would be NO. In IT your salary is directly proportional to billing rate from customer and we all are cyber coolie.Now a days India is not enjoying any cost advantage while  comparing countries like Brazil,Philippines,China(slow but coming days competition will be more) etc.Even Indian big IT giants realizing that and already set up development centers in china. ex: Infosys .Hence day by day billing rate is decreasing and th...

The Farmer and The Calf: An Investment Story

This story is about a farmer who received a calf from a rich man. Hopeful that the calf will be able to help him have a better life, the farmer did his best to take care of it. But as the calf grew, so did the farmer’s expenses. One day, he said to himself, “I don’t want to wait anymore for this calf to become an ox. I’ll just sell it and buy several sheep which are easier and much cheaper to take care of.”And so he did just that. After several months, he realized that breeding sheep were not as easy as he thought. And so he said to himself, “It takes too long for these sheep to give birth. I better just sell them and buy myself several hens which can lay eggs for me every day.”And so he did just that.The plan worked very well, he was earning good from selling all the eggs. Life improved for the farmer. But after several months, the hens started to lay less and less eggs until one day, the hens couldn’t produce anymore. The farmer was devastated. In his anger, he cooked a...

How to invest in stock market without having a single paisa??

Wow!!! No money still you can invest in stock market ……. Can that be possible……. We have never thought of…… How come that possible??????   Is Abinash getting mad!!!! Yes, guys I know like this lot of questions will come to your mind …… J But yes that is possible…… I am reiterating my words again J You may be a student, businessman or street beggar, still you can invest in stock market without having a single paisa with you ….. J How?????? I will tell you ….but before that I want from you below 3 things: Patience Zeal to learn and earn Discipline in your approach If you don’t have all of the above, then you can refrain yourself from reading this blog! Probably this is not a blog for you!!! So guys , are you all set …. J Let me start: Suppose you are a student and you want to invest in stock market ….. Now your age is somewhere between 12- 15 and you are in standard 6 th or 8 th . Take a notebook which you...

How I Lost 0.2 Lakh in IPO !!!!

You guys might be knowing what is IPO? If not let me tell you, an initial public offering, or IPO, is the first sale of stock by a company to the public. A company can raise money by issuing either debt or equity. If the company has never issued equity to the public, it's known as an IPO. Companies use this money for growing their business. I am telling this of 2010 instance. I bought coal India IPO and made ample listing profit. After getting confidence I bought one more IPO which came in the year 2010.That stock name is CommercialEngineers and BodyBuildersCo.    This company is  into railway projects . The IPO Issue Details as below: Number of shares: 12.24 crore shares Issue duration: 30th September-5th October Issue Price: Rs125 - Rs127 per share Face value: Rs10 per share Minimum order quantity: 55 shares Listing: BSE, NSE Lead book running managers: ICICI Securities Ltd and Edelweiss Capital Ltd I did some of my initial an...