Stock Investing for Rookies
I saw this great video on Investing in Indian markets recently. It’s meant for Indian retail investors who understand Hindi. I am sharing below my learning from it.
Check the link of the video at the end of this article
02:11 you’ll always make big money only with a big time horizon
02:29 low noise + low volatility + more returns — this should be the aim
02:55 invest in a relax manner — don’t keep reacting to candles throughout the day
05:15 From 2006–2008 we knew how the accelerator works — but didnt know how brake works !
05:44 system/process is most important in everything (business/family/market)
07:42 in stock market,investors want returns as soon as they open the a/c :-)
07:55 in school — no financial education is given
08:42 perception about stock market in everyday life is negative
10:00 investing is like meditation
10:30 intraday trading just keeps us busy, nothing else
10:40 we forget that money has to work hard — not us
11:10 money you’ll make in a stock is inversely proportional to your excitement about it — good trades are boring
12:30 stock market every one wants to write essay — without learning alphabets
13:00 acceleration as well as brakes are important
13:30 4/5 years he invested in learning by doing mistakes / hit and trial
15:12 being intraday trader is difficult than being a investor — so stick to being an investor
15:30 more the greed — more the emotion — less the money
16:50 do less trades / hold position for longer time (6 months) for peace of mind
17:05 spends time looking for big breakouts that are supported by volumes
17:45 breakout shares(companies) have learnt from their past mistakes — so are multi baggers
18:42 cherry on the cake — start chasing a high volume guy who has done all the fundamental research on a share
19:40 opportunity of atleast 4/5 such breakout trades in a year
20:06 ride the trend — buy when the share is rising
20:50 learn to sit on profits — as we only usually sit on losses
21:25 buy more of a rising share (eicher,geojit)
22:15 stock markets reflects your pysche
23:20 have emotional discipline to implement the learning
24:05 be masters in one ex. fevicol(just a glue), amul(milk as raw material) — learn giving value
25:50 BAD — Bhaav (buy rising stock), Allocation, Discipline
27:00 indians usually have low allocation in equities
27:33 example of a client who has 1crore invested in 170 shares — bad allocation
29:00 bet big on 2/3 fast horses rather than 30 laggards
29:00 buy nifty index if you can’t do research
32:30 breakout of atleast 3/4 years
32:45 RSI is important
34:55 sell worst performer — put funds in best performer
35:45 story of 3 sons — sell the least performer
36:40 we waste money on worst performer
36:53 sell when super trend is negative
37:35 leave a big loss in tranches — but leave
37:45 we stick to hope in case of losses
38:00 divert funds from loss making shares to shares performing well as no one has infinite resources and good performer will compensate for the losses made
39:00 look at % return and look at the chart — dont look at profit amount
40:17 top becomes the resistance
43:00 weekly,monthly RSI>60, volumes more
45:30 super trend is your friend
51:50 volume/stop loss formula, relation
54:00 short trades are fast
55:40 decide quantity — as quantity is speed — hence very critical
57:20 don’t add tools — stck to basics
59:50 market will give about 15–25% — this will decide your initial investment
Video link: https://youtu.be/pCPFJwX5u3o
