BOOK REVIEW: HOW TO AVOID LOSS AND EARN CONSISTENTLY IN THE STOCK MARKET
Publisher: Partridge Pub
Print Length: 242 pages
Author: - Prasenjit Paul
I read this book in almost nine hours (not continuous). This book is very compact and easy to read. The book can be read by the person of any age group, having any background. Even people who do not have much knowledge of finance also can read and understand the basic concepts of investing.
This book is written by an Indian author so it is totally based on Indian stock market. We read about the stocks of Indian stock market, its pattern and its way of behaviour in different market horizon.
In the starting of the book, we read about the motives of tips provider and institution. The ways these tips provider use to attract the investor and to cheat them. These people first assure you about the huge profit percent return as interest. These people demand a very huge fee for providing tips on daily basis.
The novice investors fall in these cheater’s attractive offers and they do not learn much about the particular stock or stock market. Everyone is rushing for huge profit percent but a common man can achieve a target of 25% to 30% profit annually, after learning or taking help of equity advisor. But through this book anyone can understand the basic concepts of stock market and start learning about investing in very easy language.
We read about the ratios and the ways to sort the stocks which are fundamentally strong. We become able to judge the stocks based on its valuation, management and the business it is doing. We learn to find the profitable stocks based on ratios. We learn to wait for the right time and right locations on which we are going to enter and exit from particular stock.
At the end of every chapter, we get some points to remember. These points are also very useful to summarise the chapters and can be read anytime after reading the book just for revision purpose.
The author also writes about his journey from a student to a professional financial advisor. We read the misconceptions spread in novice investors. While concluding this book the author gives a quick formula to find and invest in profitable stocks. The author gives a form of pledge and requested us to fill it and follow the things written in it.
This book is totally dedicated for long term investment, the authors suggested everyone to keep away from intraday, trading in future and options or any trade that last within one week. In these stock most of the people lose money more than they earn.
In the chapter of ROC (return on capital) and PE ratio, we may feel uninterested for a while or feel difficult to understand it. But the rest of the book is very interesting and easy to understand.
In the stock market as some of the stock’s price increases and similarly there are so many stock which price decreases. We read most of the companies like, Unitech and DHFL who’s price decreased and company’s valuation downgraded. We learn about the timing at which we should exit from such stocks. While most of the people commit a mistake to buy on the dip as price goes down. These people do not go through the fundamentals of the company. The consequences of this mistake charge them with a huge loss slowly in the long term.
So read and know about the company for one hour or one day in which you are going to invest your capital for more than one year.
Very nice book and very nice writing... keep it up
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