BOOK SUMMARY: HOW TO AVOID LOSS AND EARN CONSISTENTLY IN THE STOCK MARKET

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HOW TO AVOID LOSS AND EARN CONSISTENTLY IN THE STOCK MARKET

Publisher: Partridge Pub

Print Length: ‎ 242 pages

Author: - Prasenjit Paul


The book starts with the why word, why one should read this book? In this book we read about the retail investor’s interest in the stock market, most of the retail investors failed to get good profit. There are so many tips available still most of the people failed to find a profitable stock. There is no fixed strategy. There is no rule to predict market but there are so many misconceptions in novice investors.

The author is an Indian citizen and this book is totally based on Indian stock market. We get examples of stock that come under Indian stock market like NSE and BSE. The author told about the books he read which of them most of foreign authors. There are very less good books and authors available in India. So, this book is written as an initiative to start writing based on Indian stock market. This book is very easy to understand so much complex subject i.e. stock market.


Most of the people understand that stock market is a gambling, stock market is risky, there is no logic to predict market but on the other side, you will find most of the rich persons tried their hand in this stock market and made their fortune either directly or indirectly. There are so many persons who become rich by stock market investing like Rakesh Jhunjhunwala, Vijay Kedia, Shivanand Shankar Mankekar, Nemish Shah, Mohammad Anwar Ahmad and Dolly Khanna etc. There are so many other stock market investors who made their fortune if these people can become rich by investing in the stock market then how come stock market is risky and stock market is gambling?

There are so many retailers trader who lose their money in intraday trading, trading in futures and options or any trade that lost within fifteen days. These trades may erase your capital in one loss; you may win in one to two initial trades. But investing money in high quality stocks at the right price and leaving it for reasonable period is the only way to create profit in a stock market. No one need any finance background or any degree to invest in stock market.

Before investing your money you should know the fundamentals of that company. There are so many ways are described in this book to know the fundamentals of the company based on certain ratios. There are so many ways to select a profitable stock. For it most of the people see only profit or sales figure of the company but the company can alter these profits and sales figure. So your priority to select a stock should be based on return on equity over some period. Through return on equity you can sort a stock. Now you have to evaluate the management of the company to see the future growth. If the management of the company is great and the business they are doing is also great then this company can be a potential multibagger.

Selecting stock and sorting stock is an art, you need time, dedication and learning desire to master this art. While investing your capital, evaluate the price on which you want to buy. There is no perfect strategy to exit from any stock but the entry can be done perfectly. No one can buy at bottom and sell at top and it is never too late to invest in high quality stock at reasonable price. So do not hurry to buy a stock and also do not hurry to sell a stock.


Now we read to diversify our portfolio. You may not be able to diversify your portfolio if you have so many stocks rather having the most growing top ten different sector stocks which you can manage. You should avoid investing in the stocks which showed a 60% plus correction in recent period.

Equity advisor can be helpful to you if you do not have much time and knowledge but you should prefer fee based adviser and do not fell on the traps. You can be your own advisor if you invest your two to three hours per day for at least five years.

So invest too early to get good return over a period, don't follow the rat race, don't blame others, do not criticise but always appreciate.


Comments

  1. Unknown13 September 2021 at 18:08

    Valuable information...keep it up ...write stories as well

    ReplyDelete

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