Recap, Rest and Re-strategise
Hey Guys, I am back here to share some of my practical tips and experiences in stock market investing. Many of you, who have been with me in this journey from the beginning, towards financial freedom, would remember that….our aim is to be financially independent so that we can pursue whatever our heart desires ……be it new discoveries in the field of science and technology, sports, painting, writing, music, acting, or taking up social causes for the underprivileged to improve their quality of life. Whatever may be our calling, finally how much time we are able to devote to our life’s mission would depend upon our financial resources. Therefore, I very strongly believe that investing is as crucial a life skill as swimming, cycling, driving, and cooking. It is very important for every person to master this skill to at least a point, where he is not shackled ever by financial constraints and is pulled away from doing where his or her heart lies.
In my journey on this path, I have been extremely fortunate to find mentors who guided me at every juncture and even took a rookie like me as their intern, but, I also realize that it may not be possible for many of you, and hence I had decided to share whatever little knowledge I have with my young friends so that they too can be benefitted with my experiences in this filed.
I often get a lot of encouragement from all quarters of friends and family but even among these people, there is a sense that stock market investing is extremely risky, unpredictable, and is not meant for people with honest income. Therefore, I thought to take a pause and address these concerns before we once again embark on our journey to learn more and more about investing so as to reduce the risk component to a bare minimum. In fact, many of you commented on the last post that, it ended without disclosing the topic for this week……..it was intentionally done so. As my father often says that ….” it is not important that how far you have traveled, but what is more important is….. in which direction”……..Therefore, in the next couple of posts……we will do a quick recap of why to invest in the stock market, how to choose profitable shares for investing, when do we buy a particular share even when we are interested in that company and when do we sell shares (book profit)…all basics and most of these we have discussed in earlier posts too. But when we discuss these now, it will be based on the knowledge and experience gained so far….
Many of you, who have embarked on this journey of stock market investment along with me since the beginning, might be wanting more. To them, I would advise you to take a break and consolidate on the knowledge gained so far and backtest your strategies……refine them, if need be ….so that your investments are more profitable in the future. In any case, going by the current trend in NIFTY, the experts are divided that which way it is heading. Without getting too technical, NIFTY has been successful so far in holding on to its crucial support at around 15,600 but NIFTY Bank now is showing signs of weakness having broken the technical and psychological level of 35,000. Add to this, the falling VIX……which is now just above 14……at times like these, I would caution even seasoned investors. For most of the novices like me, this gibberish of jargon would translate into exercising more and more caution before every new investment. …..If you check your Wishlist of shares, which you want to buy…….you would find that most of these are at an all-time high….. signaling that even a minor correction in the share prices of these, would put these shares in red and eat into your overall profits. Generally investing in NIFTY BEES is the safest bet as we had discussed in an earlier post. I am aware that many of you have actually invested in NIFTY BEES post our discussion here in the blog post………..for all those, who invested in NIFTY BEES, it is time to be proud of your decision but I would advise against cashing the profit as in essence NIFTY or any other index is destined to go higher and higher in the longer run. But for those, who are planning to invest in this now……I would suggest that, right now, is not the time for it unless your analysis says that the bull run is going to continue unabashed.
Therefore, no investment ideas for some time now, till things change for good or for worse. I would recommend to all my young investors that please utilize this time to refine strategies, revisit your portfolio, and re-analyze what made you invest in shares in your portfolio and what is the target profit…..basically, it is the time for a dusting of cupboards and getting a good price for the junk in your cupboards from the scrap dealer.
In the next post, we will once again see very objectively, what may be dissuading many of you from taking the plunge in the stock market??? Is it the general perception that stock market investing is like gambling or is it the lack of knowledge or are you concerned that your meager savings may not be sufficient to support even one trade per month and hence may not be sufficient for wealth creation?????????? If in your heart of heart you dream to be financially independent, irrespective of your age, profession, or gender and you do not mind learning few new things…….this is your place and this is your opportunity………I would urge all such people to tune in again next week to be unflinchingly convinced that this may be one of the best tools for your ambition of financial freedom. For those of my friends, who are already embarked on this journey, either prior to our association or along with me, this would be a great opportunity for soul searching and revalidating your reasons so that commitment is altogether renewed. Whatever your decision might be, I would strongly urge all of you to please share this post with all your friends and family………may be, it will touch chords with someone … somewhere….for whom it might provide a ladder to realize their dreams.
Guys, please do support me by sharing the post with maximum people and before you leave, do hit the FOLLOW button on the top left. See you again next week.
