Thursday, February 9, 2012

Investment Basics

Before beginning the journey of investments & returns, one should know a few basic rules about investments.

1) Invest for long term. Those who confuse investment with trading lose badly & never invest. 

2) Everything has a purpose in life. Investments too should be made keeping the goals in mindSo first define your goals then invest accordingly to meet your goals.

3) Book your profits. Don't be greedy. When you have good profits on table make sure you book partly or completely. Similarly exit when planned instead of making arbitrary or opportunistic decisions to wait.

4) Never put all your eggs in one basket. We will come to this when we discuss about asset allocation.

5) Start as early as possible. Giving your investments more time is best thing you can do to them.

6) Invest regularly. It is not a one day, one month game. Keep saving & investing regularly, they will come handy in the bad times. Howsoever small it may be make it a habit to keep aside some part of your salary every month.

7) Get into things you understand. Don't try to pretend you are an expert just because you have made some money. Things can go horribly in very short span of time wiping out your entire savings if you try to be overambitious.

8) Don't fall for hearsay things/rumours. Everyone in the market has his opinion & ideas. Respect everybody's opinion but follow your own research. Yes do some research before you enter the market. Remember above point you must understand what you are doing.

These few things, if followed diligently will stand you in good stead. Please tell us your opinion about investing & ask your queries in comments.

Sunday, February 5, 2012

Good Investment Ideas

We are glad to inform that now small investors will no longer suffer from a handicap of quality research. We at Good Investment Ideas will bring top of the line research based on credible data to all our visitors & that too, free of cost. Having said that, we assure you of following best practices & not indulging in a frenzy or providing any biased information. Quality, not quantity will be our top focus. We will cover stocks listed on both NSE & BSE so that investors can conveniently select their exchange of choice. We would suggest/encourage investors to take a longer term view, as it is in the longer term that real wealth is created. Also do not let emotions drive your investments, instead focus on company performance. Corrections are a part of market so if you have invested in good companies there's no need to fear them, on the contrary one should use them for adding more weightage to their portfolios. Similarly booking profits is also an integral part of investing, do net let greed to creep in at any point of time, decision to sell should be taken if there is any major deviation in company's performance, irrespective of stock price. Finally, remember we in India are in long term bull market, what will matter the most in longer term is time in markets & off course betting on the right horses, rest all will fall in place automatically.