Everyone has vices- I have stocks.
Here is a rare insights into this brilliant mind that has managed to lose quite a bit in the stock market and how hopefully one day I want to turn the tide.
1) Buy on tremors and never sell: Have you ever tried catching a falling knife. No one does it unless you are a Ninja. The trouble is when you don’t know its a knife and it is crumbling. Stocks that fall a lot during the day always catch my attention and then lead to heart burn. I can safely say I have lost more money in this then any other stock market heroic.
2) Read it properly: A stock that is today worth Rs 1-2 was once quoting at Rs 40. I bought it at a point when I misread on the moneycontrol.com that Blackstone group has done a block deal with them. It did gave me some returns but soon reached where it always was. The mistake I made was that didn’t read the news item properly- it was a similar sounding Blackstone. Anyways… its history now along with my money.
3) Follow the advise of analysts on TV: Multibagger, Strong buy, accumulate are like music to my ears and only after consistently losing money this way I have perfected the art of deciphering what the analysts are actually saying. Imagine this: If you knew a particular stock is going to do well, will you actually come on national TV and tell the world about it. Its like pointing to everyone in town where the money is buried. So what I do now- I listen to the analyst and in most cases I do exactly the opposite. A wise man once said ” If stock market experts were so expert, they would be buying stock, not selling advice.” – Norman R. Augustine.
4) Copy Warren Buffet halfway: Buffets advises to buy strong companies and never sell. I buy on whims, rumours, gut feeling and then never sell. And very soon its worth you know what. So I don’t know why I bought a particular stock in the first place and then I keep it even when it is giving me decent return. And when the tide turns I’m again where I started. After perfecting the art of losing money this way now I have learned that money is only made when you sell.
5) ” If you don’t follow the stock market, you are missing some amazing drama.” – Mark Cuban.”. Well everyone goes to stock market to make money I go there for fun. And its okay to lose money to have a bit if fun.
Watch this space as very soon I’m going to share secrets on how MBAs ( like yours truly) can make money in the stock market.
YES, I do have an MBA 🙂