- Posted by: admin
- Category: Stock Market
1)Do not listen to your broker all the time:
If you want any help from broker, do your own analysis & ask broker’s view on that particular scrip. But don’t follow the broker blindly. If broker had all the knowledge then he would have been millionaire now & he would not be working as a broker. Keep this in mind before taking tips from broker.
According to Will Rogers, A broker’s guess is liable to be as good as anyone else’s. Some brokers are more interested in their own commissions than they are in your investment returns. Not all brokers are like Leonardo DiCaprio in ” Wolf of Wall Street”, but some are informative also. My advice to you is “Precaution is always better than cure”. So find best match broker that suits your requirements
2)Do your own analysis:
The best way to win at Dalal Street is to do your own analysis. Never listen to others, that is never blindly follow the stocks recommended by your friends, relatives etc. People only share their winning bets as no one talk about failure. If they are facing losses in 9 stocks and making profit in one, then they will tell you about that one stock & they will start talking like a market expert. It’s important to remember that nobody cares more about your money than you do, so you are better off conducting your own research.
3)Be aware from fake recommendation tips:
There are many companies which provide recommendation services & most of them are absolutely fake. So do not follow the stock tips given by random companies. I have probably purchased fifty ‘hot tips’ in my career, maybe even more. When I put them all together I know I am a net loser- Charles Schwab
4)Do not blindly follow the Institutional Investors:
To avoid analysis & research work, many people blindly follow the stocks which are recently bought by Institutional Investors like Mutual fund, Insurance companies. They do so because they know that Institutional Investors research a lot before buying any stock & perform extensive analysis work. They think that by doing so they are doing smart work, but in actual this approach doesn’t work. WHY? because the stock which is suitable for Institutional Investor may not suit you because of the time interval, exit strategy and amount of capital etc.
5)Last but not the least, be patient:
A good investor is required to have one important quality & that is the quality of patience. Investment strategies require time before they start generating good returns. You must be patient while selecting the stock. Warren Buffett once said that, he has more cash to invest than he has good investments. Buffett is waiting patiently.