Read on Twitter
1/14
* Some practical tips on #PersonalFinance & #Investment *
Met someone who lost heavily in markets( sizeable amt) which makes me write this thread .
DISCLAIMER : There are exceptions always.However the chances of us being in that exception is rare !
https://abs.twimg.com/emoji/v2/... draggable="false" alt="🤷" title="Person shrugging" aria-label="Emoji: Person shrugging"> Hence the thread.
* Some practical tips on #PersonalFinance & #Investment *
Met someone who lost heavily in markets( sizeable amt) which makes me write this thread .
DISCLAIMER : There are exceptions always.However the chances of us being in that exception is rare !
2/14
Pls DON& #39;T ENTER markets without ensuring you have
- An Emergency Fund in place
- A good comprehensive Life & Health insurance policy for all .
- Term Insurance ( especially if taken a house on loan)
More details given in the old tweet. https://twitter.com/VidyaG88/status/1254279111763062784?s=19">https://twitter.com/VidyaG88/...
Pls DON& #39;T ENTER markets without ensuring you have
- An Emergency Fund in place
- A good comprehensive Life & Health insurance policy for all .
- Term Insurance ( especially if taken a house on loan)
More details given in the old tweet. https://twitter.com/VidyaG88/status/1254279111763062784?s=19">https://twitter.com/VidyaG88/...
3/14
* INVEST SURPLUS ONLY *
Consider investing in markets as money locked in ( like in a PPF account) for a few years atleast & THEN decide how much money you CAN AFFORD TO LOCK IN.
Else we may have to sell ( even a good)stock at lower price BECAUSE we need money urgently .
* INVEST SURPLUS ONLY *
Consider investing in markets as money locked in ( like in a PPF account) for a few years atleast & THEN decide how much money you CAN AFFORD TO LOCK IN.
Else we may have to sell ( even a good)stock at lower price BECAUSE we need money urgently .
4/14
* Please SAY NO TO F&O *
Who doesn& #39;t want quick money !https://abs.twimg.com/emoji/v2/... draggable="false" alt="🤷" title="Person shrugging" aria-label="Emoji: Person shrugging">
But then this is also the EASIEST WAY to LOSE all our money ( however intelligent we are !https://abs.twimg.com/emoji/v2/... draggable="false" alt="😏" title="Grinsendes Gesicht" aria-label="Emoji: Grinsendes Gesicht">)
A relative lost 40lakhs in 10days thanks to the itch to earn some quick bucks!!
Learn to say NO often.
* Please SAY NO TO F&O *
Who doesn& #39;t want quick money !
But then this is also the EASIEST WAY to LOSE all our money ( however intelligent we are !
A relative lost 40lakhs in 10days thanks to the itch to earn some quick bucks!!
Learn to say NO often.
5/14
* SAY NO TO #LEVERAGE *
We think we can deploy the loan money into markets & earn some quick bucks by short term trading / intra day & use that effectively .
Again thanks to Murphy& #39;s law ,this happens ONLY to the people we know ! When we try such stunts it backfireshttps://abs.twimg.com/emoji/v2/... draggable="false" alt="🤷" title="Person shrugging" aria-label="Emoji: Person shrugging">
* SAY NO TO #LEVERAGE *
We think we can deploy the loan money into markets & earn some quick bucks by short term trading / intra day & use that effectively .
Again thanks to Murphy& #39;s law ,this happens ONLY to the people we know ! When we try such stunts it backfires
6/14
We often buy a scrip for S.T based on NEWS thinking the stock will surge due to the recent developments .
But we find the stock goes down after we purchase it !!https://abs.twimg.com/emoji/v2/... draggable="false" alt="🙄" title="Gesicht mit rollenden Augen" aria-label="Emoji: Gesicht mit rollenden Augen">
Reason being the NEWS IS ALREADY priced in & we RETAILERS are the LAST to know about it !
Vice versa also .
We often buy a scrip for S.T based on NEWS thinking the stock will surge due to the recent developments .
But we find the stock goes down after we purchase it !!
Reason being the NEWS IS ALREADY priced in & we RETAILERS are the LAST to know about it !
Vice versa also .
7/14
* #AssetAllocation matters *
Equity is good no doubt,but pls draw up a tentative Asset allocation plan .
STICK TO IT !
#Diversification is not just purchasing different Equity! There is so much more to it.
Take the help of experts if needed but get this done ASAP.
* #AssetAllocation matters *
Equity is good no doubt,but pls draw up a tentative Asset allocation plan .
STICK TO IT !
#Diversification is not just purchasing different Equity! There is so much more to it.
Take the help of experts if needed but get this done ASAP.
8/14
* #PositionSizing matters*
Most of our gains would be from a handful of stocks . Now the overall portfolio return would depend on how much exposure one has to winners over losers .
Hence we must also average up our winners consistently .
* #PositionSizing matters*
Most of our gains would be from a handful of stocks . Now the overall portfolio return would depend on how much exposure one has to winners over losers .
Hence we must also average up our winners consistently .
9/14
* Pls DON& #39;T TIME markets *
Returns will always be lumpy . Don& #39;t have unrealistic expectations.
Don& #39;t sit & predict bottom .Deploy cash sensibly .
Regular #SIP must be done . Lumpsome investments can be done if expertise is there ( most of us aren& #39;t experts!)https://abs.twimg.com/emoji/v2/... draggable="false" alt="😬" title="Grimasse schneidendes Gesicht" aria-label="Emoji: Grimasse schneidendes Gesicht">https://abs.twimg.com/emoji/v2/... draggable="false" alt="🤷" title="Person shrugging" aria-label="Emoji: Person shrugging">
* Pls DON& #39;T TIME markets *
Returns will always be lumpy . Don& #39;t have unrealistic expectations.
Don& #39;t sit & predict bottom .Deploy cash sensibly .
Regular #SIP must be done . Lumpsome investments can be done if expertise is there ( most of us aren& #39;t experts!)
10/14
#READ a lot ! Don& #39;t just search Twitter for tips !
Only technical analysis won& #39;t help us . ( It does to an extent )IMHO the Psychological aspects matter more
especially in current times of high Social Media use.
For history repeats itself , given our inherent nature.
#READ a lot ! Don& #39;t just search Twitter for tips !
Only technical analysis won& #39;t help us . ( It does to an extent )IMHO the Psychological aspects matter more
especially in current times of high Social Media use.
For history repeats itself , given our inherent nature.
11/14
* The craze for making quick bucks from #IPO *
Pls try to AVOID IPO& #39;s.
Many retailers fall prey here & end up either making a loss or getting their capital stuck big time.
It& #39;s become a gamble now IMHO.
Have written in detail on this earlier on . https://twitter.com/VidyaG88/status/1300027420762800128?s=19">https://twitter.com/VidyaG88/...
* The craze for making quick bucks from #IPO *
Pls try to AVOID IPO& #39;s.
Many retailers fall prey here & end up either making a loss or getting their capital stuck big time.
It& #39;s become a gamble now IMHO.
Have written in detail on this earlier on . https://twitter.com/VidyaG88/status/1300027420762800128?s=19">https://twitter.com/VidyaG88/...
12/14
If we understand ourselves then the major battle is won for we won& #39;t easily fall victim to NOISE
* MOST IMPORTANTLY we will KNOW what we DON& #39;T KNOW and hence will STICK to our investment philosophy ( whatever it be ) and select stocks .
Churning helps no one.
If we understand ourselves then the major battle is won for we won& #39;t easily fall victim to NOISE
* MOST IMPORTANTLY we will KNOW what we DON& #39;T KNOW and hence will STICK to our investment philosophy ( whatever it be ) and select stocks .
Churning helps no one.
13/14
Study the stock thoroughly BEFORE you invest . Purchase it if you are decently sure of it & ONLY MONITOR the stock afterwards periodically .
But we do the EXACT OPPOSITE!https://abs.twimg.com/emoji/v2/... draggable="false" alt="🙄" title="Gesicht mit rollenden Augen" aria-label="Emoji: Gesicht mit rollenden Augen">
Hence we panic the minute contrary opinions float in .
CONSENSUS cannot happen in markets!
Study the stock thoroughly BEFORE you invest . Purchase it if you are decently sure of it & ONLY MONITOR the stock afterwards periodically .
But we do the EXACT OPPOSITE!
Hence we panic the minute contrary opinions float in .
CONSENSUS cannot happen in markets!
14/14
These are just a few things I shared based on my discussion with the friend.
Ultimately MONEY IS NEEDED TO MAKE MONEY & hence capital protection triumphs everything!!
Hope it helps someone .https://abs.twimg.com/emoji/v2/... draggable="false" alt="😇" title="Lächelndes Gesicht mit Heiligenschein" aria-label="Emoji: Lächelndes Gesicht mit Heiligenschein">https://abs.twimg.com/emoji/v2/... draggable="false" alt="🙏" title="Folded hands" aria-label="Emoji: Folded hands">
* THE END*
@dmuthuk
@FI_InvestIndia
@position_trader
@RichifyMeClub
These are just a few things I shared based on my discussion with the friend.
Ultimately MONEY IS NEEDED TO MAKE MONEY & hence capital protection triumphs everything!!
Hope it helps someone .
* THE END*
@dmuthuk
@FI_InvestIndia
@position_trader
@RichifyMeClub
