Stereotype of investing and life

Ever wonder how some people consistently make more money in the stock market? It's not magic – it's a mix of paying attention and making smart choices. Let's explore the simple tricks these successful investors use to get better returns than the average. Listen to Insiders: What They Know Matters Successful investors keep an ear out for insider trading updates. Why? Because if someone inside a company is buying or selling their own company's stock, they might know something good or bad is coming. Buybacks & Rights Issues: Company Confidence and Cash In Smart investors like it when companies buy back their own shares or offer existing shareholders the chance to buy more at a discount. It's like the company saying, "Our stock is a good deal!" IPOs & Big Corporate Announcements: Ride the Wave of News Beyond new companies going public (IPOs), successful investors pay attention when companies make Corporate   big announcements. Events like demergers, me...

Challenges in Making Money on the Stock Market: 96-97% of businesses are not worth investing in and are better suited for trading. Trading requires early entry and early exit, which goes against human behavior influenced by fear and emotions. Trading before the masses do is essential, but it is extremely difficult to achieve. Averaging down on losing positions may not be effective in trading. Only about 2-3% of businesses are worth investing in. Evaluating these businesses requires a focus on management intention and efficiency. Identifying ethical management can be challenging due to complex human emotions and greed. Patience is required in investing, which often goes against human nature. Disclaimer: The top 1% may achieve success through extreme passion and sacrificing their well-being. This level of dedication may not be suitable or sustainable for everyone. 

  Mark Minervini Pulak Prasad The process is driven by Price is everything (Bhav Bhagavan che) Business is everything (Benjamin Graham) When to buy Buy when Institutions are buying Buy when Nobody is buying Churning Buy fast sell fast Lazy, very Lazy When to sell Put stop loss to protect your capital Sell only if you find something wrong with business Decision making Based on charts only Based on fundamentals of business only What to buy Pick any stock based on the chart pattern. Avoid all the stocks which are not good business. Achievement Over a period of 5 years, a fund investment has yielded a compounded annual growth rate (CAGR) of 225%, resulting in a return of 300 times the initial investment of 1 Rs. Over a span of 14 year...

In the world of stock market investing, everyone aspires to achieve alpha—a measure of returns that surpasses the performance of the market index. While some might dismiss the significance of a few percentage points, alpha plays a pivotal role in long-term wealth generation. Consider this: a 12% return over a period of 20 years can transform an initial investment of 10 lakhs into 1.09 crores, whereas a 15% return can yield an astounding 1.97 crores . So, what are the key factors that contribute to generating alpha? Network : Establishing a strong investment community can be instrumental in generating alpha. Seasoned investors often rely on their networks to discuss stock ideas, share knowledge, and exchange valuable insights. Moreover, cultivating relationships with company management can provide a deeper understanding of the business, potentially leading to investment opportunities that others might overlook. Algorithmic Trading : Harnessing the power of machines through algorithmic t...

Entering the financial market can be a rollercoaster ride of emotions, often accompanied by feelings of guilt. Numerous situations arise where investors experience remorse over past actions, such as selling a stock right before it surges or buying one that subsequently plummets. The root cause of this guilt is the limited knowledge available when making investment decisions, leading to regret when new information emerges. In this article, we explore strategies to overcome this guilt and foster a more mindful approach to financial decision-making. Define Clear Investment Goals: Before venturing into any investment, it is crucial to establish your objectives. Whether aiming to outperform a market index or beat the returns of fixed deposits, clarity about your financial goals will provide a guiding light amidst market fluctuations. Avoid chasing high-return schemes that may carry significant risks and focus on aligning your investments with your predetermined objectives. Avoid the B...

Dear Readers, I am thrilled to share with you that today marks the completion of my first year as a blogger! It's hard to believe how quickly time has flown by, but I couldn't be more grateful for the experiences and growth this journey has brought me. When I started this blog a year ago, I had no idea what to expect. It was a leap of faith driven by my passion for writing and the desire to share my thoughts, experiences, and knowledge with the world. Little did I know that it would become such an enriching and fulfilling adventure. Over the past twelve months, I have poured my heart and soul into crafting meaningful and engaging content. I've explored a wide range of topics, from personal development and travel to technology and creativity. Each article has been a labor of love, meticulously researched and thoughtfully written to provide value and inspiration to all of you. But what truly makes this journey extraordinary is the incredible community that has formed around t...

One of the Harvard Business School alumni shared an inspiring case study on building a competitive strategy from Joan Magretta's book "Understanding Michael Porter: The Essential Guide to Competition and Strategy" on Aravind Eye Hospital. India’s Aravind Eye Hospital was founded in 1976 by an idealistic retired army surgeon, Govindappa Venkataswamy, known as Dr. V. Dr. V. didn’t need a detailed market segmentation map to identify a large population with a dramatically underserved need. Millions of Indians suffer from preventable blindness because they can’t afford cataract surgery. Starting with just eleven beds and three doctors, Aravind has become the world’s largest provider of eye care in the world, performing about 300,000 surgeries a year, at least two-thirds of them for free. Aravind has an extraordinary value proposition. Correction: it has two value propositions. One is aimed at affluent customers who want the best eye care money can buy. These customers wa...