pic source: medium.com
Its been quite long since i have written a blog,
I would like to share few things about my experience with the Indian Stock Market.
As i was in college i had to do an inplant training under any institution work for 15 days get reports and show how the work is done and what are the basics of it, and give a presentation on it.
I choose to work with one Broker - Motilal Oswal based in Coimbatore, Tamil Nadu.
At Motilal Office: I had to be there by 9 to office and it was completely new to me, i got a basic introduction that it has listed companies in the NSE and BSE and there s only 1% of Indians who are into share market i was told. all the basics i came to know during this 15 day program and then i thought of opening a demat account just to know how it goes.
So i had no idea about the market or its volatility, what to buy and what to sell. So i randomly looked about the graphs of few companies and that time i found that pharma sectors had growth and since i had very little money i thought of buying stock which is a penny stock priced around 10-20Rs.
So i initially got Dr.Datson Labs share for around Rs.6.50/- saw old graphs which was around Rs.800/- each share and did the worst by not checking its fundamentals and buying it seeing news that it has got some big deal. I always thought that it would be easy and its simple to buy and sell any shares, but the stock soon had only sellers and all of sudden when i asked broker to sell he told me it has got froze and soon company got de-listed.
LESSON LEARNT: NEVER BUY PENNY STOCKS, buy stocks with good volume, fair PE Ratio, has good annual growth and has good fundamentals. Dont get tempted to buy cheap stocks.
Next was in Feb 2016, i asked my broker and they had given advice to buy Tata Steel and SBI shares.
I had bought those shares Tata@251 and SBI @ 163 since i had only around 10k and in a month fearing the prices will fall again i sold off my shares and booked profit of around 2k.
WHAT I LEARNT WAS TO BUY GOOD STOCK WITH HIGH VOLUME AND GOOD FUNDAMENTALS AT FAIR PRICE.
Then i was watching news and saw that Pipavav Defence company suddenly spiked up to Rs.100 in a day because news where given by our channels that it has got around 600 crore order and all that, and when it came back to 65 levels i bought few stock dreaming that it ll touch back to that levels was one mistake and again repeated the first mistake not seeing the fundamentals sold around Rs.30.
In July 2016 seeing news that logistics shares will be going up and all i hurried and bought allcargo @200 level and patel integrate@120 level, and sold @150 and @65 respectively.
NEVER BUY STOCK WATCHING NEWS, AND DONT FORGET THE FIRST RULE OF CHECKING THE FUNDAMENTALS, AS WELL AS PE RATIO.
Then i thought of trying something which most of the people told never do it in the share market if you are beginner but still i wanted to try it out, so i started off and trust me guys its very dangerous,
and should never borrow and try it out, i tried but u need a minimum of 50k for intraday and that too the brokerage charges also affect the trade as well, Motilal charges were around 12rupees for a trade below 50k and 0.03% for above. There are discount brokers like Zerodha but they dont give calls to buy. BETTER AVOID INTRADAY TRADING in my opinion.
Over the years i learnt a lot of things, and i am sharing this because these are the common mistakes any beginners would do, so if you have a good business or job must focus on that first, and then if you have a some to invest you can also try Mutual Funds which is much safer i think for people who cannot follow the market. There are lot of things which definitely i cannot portray in one blog.
There are lot of useful websites like Stockaxis.com which gives you complete details of the company with complete details and also trend can also be checked whether its in upward trend or downward, and moneycontrol.com also has all the information.