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Thank you sir for giving your insights on investing in stock market. This article gives basic but good information on how, when & in which company to invest in Stock Market Everyone wants to make quick money & what better than the stock market. I completely agree that majority of investors do not have an idea that what drives prices of the stock. They basically want to earn easy & quick money & hence they invest in stocks based on the tips. As author said in most of the cases investors lose money & once they start losing money they invest more to nullify their losses & they lose further. I do regular invest & would like to share my experience on investing in stocks. I have been through the above phase & experienced it in a difficult way. The most important thing which we should understand that stock market should not be used as a tool for Gambling. If you want to invest in a company it is important to go through last 5 years Balance sheet & P&L statements of the company. Also important to go through the company website & understand the segment they are catering & whether that segment is growing or not. Also directors annual report helps understand the short & long term strategy of the company. There is also scenario where amateur investors buy stocks which are at 52 week low without knowledge of stocks. This is more destructive as “Those who try to catch a falling knife only get hurt”. There are also cases where stocks which have reached 52 week high wait for correction to invest which depending upon the stocks doesn’t happen. Take example of MRF tyres, the share price in last 5 years rose from 10,000 to almost 70,000 without any major correction. Secondly I also agree with author that stocks should be purchased for long term investments however once the stocks have been bought we should not forget it, constant monitoring in important. Also focus on “A” category stocks like Asian Paints, Reliance, TCS, Infosys, etc. which will give stable but long term returns. Finally as Warren Buffet said “Stock market is a device for transferring money from the impatient to the patient”. Hence it’s important to have patience. The 2nd quote he said that “don’t save what is left after spending but spend what is left after saving” Invest wisely. Best of Luck!

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