About investing in stock markets all over the world
About investing in stock markets all over the world.
Will try to keep this non-technical. So here goes -
Any analysis, be it stock/investment related or market research related or even for social/cultural understanding, relies on multiple variables. Some variables are quantitative and hence easy to analyze. Some are qualitative, difficult to derive inference from, yet can influence the outcome quite strongly.
A good investment is a result of a good understanding of - a) the overall social/cultural situation, b) political situations, c) business dynamics and d) cultural evolution of the market the business operates in. All these variables are broad, but dynamic. Important though, is to note that these are factors that influence the market, hence influence industry sectors and hence influence performance of a specific stock.
I have investments across NASDAQ, NYSE, BSE and NSE. And I will speak from my approach -
1) Read - A lot. Across topics. News. All kinds. Be aware. Analyze each situation on how it would affect businesses and consumers. Even the Delhi rape case affected stock prices the next day. Riots affect stock markets too. Keep an eye and ear (and a part of your brain) open. Always.
2) Keep a list of sectors (pharmaceutical, IT, manufacturing, commodities etc.) that interest you. Ones that you foresee making difference in forthcoming future. Read even the finest dynamics about these sectors. A good place to catch up on business related news on these would be - Financial Express. Not the Economic Times, but the smaller portals. These are mostly not paid media and are good with reporting even the smaller business entity.
3) ALWAYS, and I insist on this, keep an eye for news/situation that you see evolving over time. Analyze the potential impact of these news in the coming days. Some situations take the company image down (audits/court cases) etc. Stock of the company may go down or up because of these situations
Buy low. Always.
But, do this only when you have confidence on the people managing the board of such companies. These are people who can either pull out a company from down. Or take it down completely. In which case, do not buy low. Sell, if you have already bought. Again, sell prudently.
I refer to Money Control . com for detailed information on companies, their boards and historical performance of their stock.
No one place/one person can give you an exact advice/guidance on stock investment. You will have to develop your interest and over time, your acumen. You can become a good investor with 2 simple assets - 1) Awareness 2) Analytical bend of thinking.
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