Basic concepts for beginners
What’s stock market?
Market is nothing but Price.
Price is just number
What decides the number?
Order books (Sell and buy orders ).
Who put orders?
Men behind computers and mobile screen.
What make men to place order?
Mindset of men(women).
Study the People’s behaviour during Fear, Greed and Confusion, you would find the trend….😁
Confusion : Sideway.
Instead of reading Expert’s opinions, one should learn to Read the Mind of the market.
Just look at the orderbook for 5-10 minutes and you can guess what people are thinking.
Close Ear👂👂 and Look at the eyes 👁👁 of the market.
Cyclical sectors -Auto, BFSI (Banking, Financial Services & Insurance), Capital Goods, Cement, Infrastructure, Energy, Metal, Power. So for cyclical sectors it is buy on rise/momentum
Non cyclical or Defensive sectors – IT, Pharma, FMCG (Fast Moving Consumer Goods) So for non- cyclical sectors it is buy on dips.
During a slowdown/recession cyclical sector stocks fall more than defensive sector & during uptrend defensive stocks lag behind while cyclical emerge multibaggers
So it is recommended for passive investors to hold defensive stocks for long termwhile active investors should exit cyclicals at their peak & re-enter at their lows
Why to be after money
Applying spiritual content does remove want then why should we go after money?
Spiritual knowledge don’t tell to stay away from money.
Money is a power, money is freedom.
If you have money and No liability,you could spend 1 month as volunteers at many deprived places.
If you have money,you can donate and settle 100 of family.
John D Rockefeller was the most despised person, but his foundation helped millions.
Secondly, When you Earn money you create 10 times VALUE to the world.
E.g. If Mukesh Ambani is Earning 1000 Cr, he is creating 10000 Cr value also..
Where does Tax, Employees pay go?
If you are doctors or entrepreneur and set up hospital.
You get only 10-20% profit, where does 80-90% money go?
It goes to Public, in the form of Payment of Bill, wages and Taxes
Money is a byproduct of VALUE.
Money is not the main product.
NaOH + HCL–> NACL + H2O
Nacl is Main product
H2O is byproduct.
Value creation is main product. Money is by product..
Just Create Value…Money आपकेपिछेभागेगा .
BG says, Don’t have Lust for money. It didn’t say money is bad.
In nutshell, Focus on Value, Not money.
Share market :
Focus on Knowledge, Discipline, Process and Calculated Risk …….
Money is byproduct
How to be an ace investor?
If I ask members how many of you can play cricket, majority of the hands will go up.
But, are you playing in IPL or Team India cricket.
Answer is NO.
Similarly, If I ask how many of you invest in Share Market, everyone will raise hand.
But, If I ask , how many of you are Serious investors, then very few will be there.
Difference between Amateur and Professional investors is that Amateur waste too much time to Find hot stock which is just 20% role.
The real game is different.
We need to learn 5 things to be ACE investors
1. Stock selection
2. Portfolio Allocation
3. Timing of the market
4. Risk Management 5. Behaviour Management