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Querist : Anonymous

Querist : Anonymous (Querist)

21 June 2011 I want to know how capital markets returns are more than other investment avenues?

Also how many people are investing with the awarness of the stock?

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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23 June 2011 Capital Market Returns will be more in a case when you hold the stock for a reasonable long term. as you have to keep any investment for a pre-decided period , likewise if you set a term, say for 1-2-3 yrs, then most of the stocks purchased by you will give better returns.

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Investment is made with a vision to get higher returns. But most of the people in share market are playing speculative games. I have seen many persons , who have lost their money.

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You must invest in share market , but do not touch the stocks until you get expected returns. Ups & downs in the market are to be watched closely .

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If you think that the decision taken by you is going to be wrong, and if you are confident about it, sell the stock immediately.

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In share market every person wants to earn , but the winner is he, who knows how to book losses.

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CA SURENDRA KUMAR RAKHECHA

CA SURENDRA KUMAR RAKHECHA (Expert)
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23 June 2011 Simple Rules :

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When all are buying, sell the stocks. Brokers will never allow ( agree ) you to book profit. They will always show you rosy pictures of the market.

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When there are losses, the broker will never stop you to book loss.

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Don't listen to your broker.

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Broking firms; who claim "WEALTH" MANAGEMENT do the "DEATH" MANAGEMENT Of your Portfolio.

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Humour :

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What do you mean by BROKER in Hindi ?

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TODNEWALA.

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( Nafa Karne Nahi Dega Aur Loss Karne Se Rokega Nahi ).

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CA SURENDRA KUMAR RAKHECHA

CA SURENDRA KUMAR RAKHECHA (Expert)
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23 June 2011 Your query is :

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I want to know how capital markets returns are more than other investment avenues?

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See the words itself contain three important words :

- CAPITAL MARKET

- RETURNS

.. AND

- INVESTMENT !

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Now-a-days; stock brokers always send daily calls when you provide them your mobile number.

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If you will make an inquiry to their offices; daily traders will not find place for more than 2 years. Most of them swear not to come again to the doors of stock brokers !

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(Humour : Thank God that they find another persons with the help of Marketing People ).

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Persons who invests in stocks; hardly take away his capital back during his life time !

( Life k baad to e-se bhi nahi le ja sakta ).

CA SURENDRA KUMAR RAKHECHA

CA SURENDRA KUMAR RAKHECHA (Expert)
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23 June 2011 HUMOUR, PRACTICAL & THOUGHT PROVOKING :
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( Please read carefully to decide which part is humorous and which part is real one)
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The Basic Question is :

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How one earns more in the share market ?

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As in Science; let's make one hypothesis :
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( Every time; whenever a new subject in commerece stream is taken for study; it is asked whether it is science or an art ! ).

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"IN S T O C K M A R K E T PEOPLE EARN MORE."

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Let we test the above hypothesis.

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1. Many people are involved in the stock markets hence it is deemed that they earn more.

( Presumption : Nobody comes to lose his money ).
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2. Day by day; persons dealing in stock markets are increasing hence it is assumed that people are earning more.

( Presumption : Nobody comes to lose his money ).
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3. Stock Market follow the following PRACTICAL ( not fundamental ) RULES which are always true ( and very interesting ) :

a. When you think market will go up, it will surely fall.

b. When you think market will go down, it will steeply fall than you predict.

c. Your stock perform only when you have sold them.

d. Your stocks will never go up, till you hold them.

( No amendments have been made in the above rules so far either by the government or by the brokers ).

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Investor can't make any rule but he always believes that above rules must be "broken."

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Unfortunately; The "Broker" who is supposed to help the investor, can't help him what the investor thinks although he is involved in "broking."

CA SURENDRA KUMAR RAKHECHA

CA SURENDRA KUMAR RAKHECHA (Expert)
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23 June 2011 I think on the above basis the hypothesis does not prove good.

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But reality is; one who remains for a very long time in stock market with some golden rules of studying -

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1. General Market Scenario

( Applied Economics subject should be read ).

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2. Company's history and future prospectus i.e. its -

a. Directors,
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b. Product,
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c. Long Standing,
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d. Expansion,
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e. Dividend,
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f. Bonus,
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g. Private Placement,
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h .Litigation,
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i. Financial Earnings,
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j. Research etc.etc.

should be analyzed then only should be invested in a particular stock.

3. Diversity of Portfolio.

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will surely earn more than his expectation.

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