Tag Archives: investment

Electronic Herds and their behavior

Now a day, everything in the market is online. This gives extra advantage to the investors around the world to invest in a place where they like to do. An investor in America can buy shares in Indian markets and similarly an Indian investor can invest in American markets. That is how things are in today’s world. This gives the investors the ease to invest in any markets of their choice. The treaties between the governments and the world becoming smaller day by day everything is possible in today’s world. Continue reading

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Market Mess

I have been investing in the Indian Markets for quite a while, approximately 2 years. I have not been so very successful in my attempt to make money from the stock market. I have realized the story of market to certain extent. It is just random and there are no rules that govern the market. This is my “Lesson Learnt” from the market activity. Let me elaborate on this.

Being individual investor and not taking any professional help from the financial institutions, it was not easy for me to decide on the “hot companies”. I was reading all possible news related to companies and market in general to know what to do in the market. But that did not help me go anywhere. I did not know how to choose the portfolio. Which companies are good for long term and short term? When to book profits was other problem once I chose the company? Totally I was confused. Continue reading

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GOLD – The precious Metal

History of gold prices (in rupees):

1930: 180 per 10 gram
1940: 360 per 10 gram
1950: 1000 per 10 gram
1960: 1110 per 10 gram
1970: 1840 per 10 gram
1975: 5,400 per 10 gram
2000: 3,000 per 10 gram
2006: 5,400 per 10 gram
2009: 15,700 per 10 gram.

Gold surprisingly gave 300% returns from 1970 to 1975 when world suffered worst ever recession after great Depression. Will the history repeat? That is the reason behind current “Mad Gold rush”. But if you invested in the Gold in 1975, your investment gave negative returns for the next 25 years. Continue reading

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Contra Fund

Contra Fund stands for contrarian and is supposed to be the opposite of value investing.

Contrarian approach is supposed to be very complex. It involves many complex ways of identifying the stocks and investment approach. In this approach, the fund managers look out for stocks which are at cheap prices today but they have potential growth and value in the long run. These stocks are not picked up by many people due to various reasons and the fund manager identifies such stocks and invests the money that is generated from the funds. Continue reading

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Investing is not Gambling

Investing means putting your money work for you and you not working for money. In other words, money works for you and the value of money increases after certain period of time. We have a tendency to work hard, sometimes very hard for money. I have realized that it is not at all necessary to work very hard to make money. You can make money if you are little smart, thats it. If you think that only working hard gets you money then think again, there are finite number of hours and you have to work more hours and if you work more hours then when will you enjoy with your hard earned money? No leisure then what is the fun of working hard?

There are many different ways you can go about making an investment. This includes putting money into stocks, bonds, mutual funds, real estate, or starting your own business. Sometimes people refer to these options as “investment vehicles,” which is just another way of saying “a way to invest.”

Investing is not Gambling. Gambling is just putting your money at risk and the outcome is not sure, you may or may not win and you always hope to win. It is just about luck and nothing else. Investing is not about luck, it is about taking calculated risk. RISK is part of investment and you can’t completely be sure of making money but the probability is high that you will make money. A investor does some ground work and expects some solid profit after considering the risk associated with the investment where as a gambler just invests and prays so that the investment he made provides him the profit.

To make it clear, consider this. A gambler buys stock based on a “HOT TIP” and does not know much about the company or anything related remotely to it whereas a Investor buys stock only based on the analysis and thorough investigations that he performs and expects considerable amount of profit for his investments.

My personal view is that, you can be an investor or a gambler, I am sure you can make money either being an investor or gambler. But be clear with your path. I don’t wish that you claim to be an investor but you act like a gambler.

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