Learn what the various do’s and don'ts one should adhere when doing their first trade. This information has been brought to you by Kotak Securities one of the largest share broking firm in india. Learn the basics of share market by visiting the given link http://www.kotaksecurities.com/university/Equity1.html
The Importance of First Trade
The Importance of First Trade
Initiate A New Journey
• Like many first steps, the first trade on
the stock market is a rite of initiation. This
first step is critical in the life of the
• To take a leaf out of The Hero’s Journey
by Joseph Campbell, this is the Crossing of
the First Threshold, here the person
crosses into the field of adventure,
leaving the known limits of his or her
world and venturing into an unknown
realm where the rules and limits are not
Small Start, Big Day
• By opening a stock market account the client has signaled that he is ready to take
control of his investments, that he is ready to take responsibility and enjoy the
subsequent fruits of his actions.
• Respondent after respondent in the research we did exhibited very strong
characteristics of this phenomenon. They all remembered their first trade, even after
Avoid the Clutter of Advice
• There are many books and a zillion articles online on how to choose your first stock.
They range from the deep fundamental analysis, to a superficial one to a technical one
or the good old one – stock tips.
• Focusing on these strategies is missing the whole point of the activity. A plethora of
choice is exactly what you don’t want as a first time investor.
• The trick is not to pick the right stock
but to pick any stock you fancy – your
favorite brand or your favorite CEO or
your friends stock – anything will do. Take
buy a small enough quantity and then
start to track it.
• You will look at changes in economy with
a specific angle to your stock. You will
read about competitor’s reactions to what
your company does. The economy and
market suddenly comes alive in a way
that no shadow play can.
Approach Towards Investment
• With a small part of your investable
surplus, buy your stock, possibly even two
scrips. One, a bigger firm and the other, a
smaller firm. Now research the company.
• Learn about the products they sell, buy
them if possible. Stock market is a great
learning experience. You can learn so
much about the business cycles and
numbers and analysis.
A Loss is Not Losing
• The trick is not to just start small. Surely small is good, but critically, most of us just
don’t seem to start at all. An IPO investment is as good as any launch vehicle. If you
finally make a profit from your first investment you are possibly lucky. But if your first
investment is a loss, then consider yourself luckier.
• You learn more from your mistakes than your successes. Success tends to hide our
shortcomings, but a loss will bring it out. Understanding your investments and yourself
in the process will make you a winner in the long run.
• So start early, start small, start anywhere but do start. To quote a Zen master – a
journey of a thousand miles begins with a single step. Please step right in.
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