18K and Higher!!!

October 4th, 2007

QUICK BUCKS!!!!

I will not blame the youngsters, but the ZOOMING markets can seduce anyone to get in for making the quick bucks.

A friend of mine just came across and asked, I have some 20K with me, can I double it within a month from the share market??

I was aghast!!! What should I say, “STOP THIS CRAP”; “YES YOU CAN DO IT”; “FORGET IT, OR YOUR MONEY IS SCREWED” ???

Needless to say, the guy knew nothing about the shares and share market. He just knew that there is a sudden spurt in market and that he wants to make his bucks right away without much effort.

Just thought to share some things, I know about the market and also to clarify that am not that I-Know-Everything kind a person for share markets.

7 Must know things about the Share Market:-

1. The share markets are the riskiest place for Investing. They can build both Riches to rags and Rags to Riches stories. There are other investment alternatives like Bonds, Post office savings, Fixed deposits and Insurance, which are rather safe than shares.

2. When you buy a share, you become a part owner of the business, the company does. So, you are entitled to share the Profits as well as the Losses of your company. There isn’t guarantee that company doing well all these days will surely do well in future. Just like Humans… ENLIGHTEMENT CAN HAPPEN ANYTIME (at Either ways )

3. As you decide to do business or stick to a particular career, a long term venture, do the same with your shares. In short term you may loose your money, but in long term it seldom happens.

4. Deciding in which company to invest is a critical thing. You can go with the boom, or do bit of research of the future of Markets. Like 2002-2006 it was a boom for IT sector, now its INFRASTRUCTURE and BANKING, PETROLEUM also looking good. Then you can freeze on the strong company to invest in.

5. How much to invest is another big question. If you save 20% of income, reinvest 10% in your own business, invest another 5% in insurance, you are left with 5% of your income to be invested in shares. This is a relative formula, which can change from person to person as per their needs and financial goals. My only advice would be, invest at regular intervals.

6. Just don’t rely on any advice. Its simple as that, the advisor has known the things and that he has gained enough of profits to pour some losses in the scrip. For ex. When some one knows swimming, he just says to all, come guys, just jump in the pool, without realising, that others don’t even know to swim.. Do a bit of research and then you can.. And if you are tempted a lot, you can invest a part, like say 15% of your total investment invest in that. But still BEWARE!!!

7. Never be carried by the success stories of others making fortune on the earnings of Shares. Even they have suffered losses, but as usual, no one speaks of its losses (Failures). Make your own fate.
Happy Investing (and not Spending !!)

MARKET CALL

Market is Outperforming!!! I guessed 18k till dussera, but its today when it will touch that. But sentiments still are optimistic.

+ Can buy Ambica Agarbatthi @ 18.50 for tgt of 35

+ Unitech looks good for target of 425. Hold till that.

+ Sharad Pawar giving a green signal for sugar industries to convert spare sugarcane to ethanol will catapult all the sugar shares and PRAJ INDUSTRIES.

Regards
Tushar

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