Add new comment | SPJIMR

Add new comment

Thank you, sir, for sharing your valuable views. I completely agree with you on the point that most of us are tempted to enter the share market with an idea of making some quick money. Though there are investors who look beyond short-term money and enter the market with long-term goals, many of us fail to realize that each stock that comes into our account brings a certain share of ownership of the underlying company. It, therefore, becomes important to track a company first than its stock price. To my mind, an increase or decrease in the value of a stock does not drive a company but the company’s growth affects its stock. However, I must accept that this was not my idea when I first entered the stock market. I wanted to try my hands at the markets from my college days but not to make money. I was fascinated by the numbers running on the business channels, experts giving their views on what stocks to invest in, the forecasts and all the fancy trading terms. The only thing I knew was that people buy and sell stocks of the listed companies to make profits. Rest of the information was not very well known to me and the curiosity to understand how it works rose with every passing day. I did read about how markets work but was waiting for an opportunity to enter the real world of share market. Like any other first-time investor who just got out of college and eager to make his/her first stock investment, I used some part of my first paycheck to invest. Knowing that I could horribly go wrong, I decided to start very small and try to learn the game better. To understand how to go about this, I approached one of my colleagues, a regular investor, who helped me open a Demat account and walked me through the process of investing. That is when I realized that there is much more to the Share market than a simple buying and selling of stocks. The markets (NSE/BSE), the limit price, the intra-day, the short sell and a lot more. My first investment was not based on any analysis but only on what my colleague was investing in. It did turn out well and I was doing good until I put my money in a company whose price plunged and was not moving up for months. The day I decided to take my money out, the price started moving up and it was back to a profit-making stock. This was the point when I realized the importance of understanding the company first, having a long-term goal and not just go by the trends in the market. As you rightly mentioned, the stock market is indeed a hospitable place for the ones who wish to stay invested for long. Though highly unpredictable, a good performing company tends to always give good returns to its investors in the long run. Hence, careful investments with long-term goals are mostly expected to give good returns making the markets rationale.

Bhavan's Campus
Munshi Nagar | Dadabhai Road,
Andheri West | Mumbai - 400 058, India
Tel:+91-22-2623-0396/ 2401

Delhi Centre
Bharatiya Vidya Bhavan Campus, 3rd Floor
Gate No. 4, Copernicus Lane
Kasturba Gandhi Marg, New Delhi-110001
Tel: 8130545577, 011-23006871, ext-871