Skip to main content

Posts

Showing posts from July, 2023

Learnings

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. 

Opposites can be equally good

  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...