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Getting into the profitable mode in Stock Market Investment


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When you hear about people losing or profiting from the stock market you can be rest assured that it is not the result of luck. Rather the matter of fact is the profitable outcome is application of a few simple principles derived from the experiences of millions of investors over countless stock market cycles and the loss is the result of half-baked knowledge.

We will discuss on the basics before investing in stocks.

Published in: Economy & Finance
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Getting into the profitable mode in Stock Market Investment

  1. 1. Peter Lynch, renowned portfolio investor of the Magellan Fund from 1977 to 1990, claimed that everyone has the brainpower to follow the stock market: “If you can make it through fifth-grade math, you can do it.”
  2. 2. Getting yourself ready with the mind- set to invest in Stock Market
  3. 3. Goals got to be Longer If you are looking for a return in next month or quarter or 6 months, there are other investment options better suited for such needs. You must truly consider stock options completely out. Stock options are better for long term goals. The growth of your portfolio depends upon three interdependent factors: • The capital of you invest • The amount of net annual earnings on your capital • The number of years or period of your investment
  4. 4. What’s your RISK? Risk tolerance is the amplitude of the degree of anxiety you feel of an uncertain event. There is no calculator that can calculate your risk level and frankly there is nothing called “right risk” Your understanding of risk becomes clear when you start gaining knowledge about stock investments. For example, how stocks are bought and sold, how much volatility (price change) is usually present, and the difficulty or ease of liquidating an investment
  5. 5. Mind Vs. Rumors Being emotional is a human nature. People are often swept by the rumors and having a knowledge source who/which has not matured enough to help you take decisions. The part that acts against us during these emotional upsurges is our decision-making capabilities.
  6. 6. Educate yourself Before making your first investment, take the time to learn the basics about the stock market and the individual securities composing the market. There is an old adage: It is not a stock market, but a market of stocks.
  7. 7. Where are all your eggs? Andrew Carnegie is reputed to have said, “The safest investment strategy is to put all of your eggs in one basket and watch the basket.” Being said so it does not ensure the BEST investment. There are many nitty-gritties of diversification which can come by educating oneself
  8. 8. We would be launching series of presentation to help you to understand stock options better and make a profitable decisions while investing. “Managalam” Block ‘B’, Suite No. 1A, 1st Floor, 24 &26, Hemanta Basu Sarani (Beside Great Eastern Hotel) Phone: 033 4026 0000 / Fax: 033 2231 5613 Kolkata – 700 001.