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How to Make Crores from the Stock Markets

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Note: If you are a long term investor and looking to chose stocks to invest for the long term you can do my stock selection course. Click here for details of the course.

Stock market investors in India and around the world want to make a lot of money by investing. That is the sole reason they invest. Else there is no reason to take a risk. Most of us want to make one crore or millions of dollars from the stock markets.

Well good news is its not that difficult to make one crore. In fact you can make crores. The bad news is you yourself is your biggest enemy of your own investing. Our own self-destructive speculative trading and the mindset to get rich quick from the stock markets is the biggest obstacle to make crores from the stock markets.

Another problem is that investors do not diversify their portfolio. When I talk with traders like who lost 2 crores or even lakhs, I found out that the real problem is greed & ego. The feeling that “I can do no wrong with my investments” and “the markets will favor me” is a grave mistake of investment. Why should the markets favor you? Because you want to get rich quick? Is that a valid reason?

Stocks and mutual fund selection course will to help you to identify great stocks & mutual funds to invest for the long term with great returns.

However if you trade cautiously, take calculated risks and trade very conservatively, you can accumulate huge wealth over the years trading the stock markets. Mind it we are talking about accumulating wealth over the years and NOT days or months. This is possible only through conservative trading and NOT aggressive trading. You may want to check out my conservative options trading course where you can learn such strategies to make money slowly but consistently in the stock markets. It is doing good for a lot of traders all over India.

A few days back I got another dreaded email: (Sender’s name withheld for privacy. Edited for grammar and spelling.)

I am a heavy loser in share market. In the last 25 years I lost about Rs. 25 lakhs. I lost a huge amount at the time of Harshad Mehata scam. After every three four years gap I collected two or three lakhs from my very hard earned money and lost in share market in hope that one day I will be winner. May be this was due to ego that one day I will be a good trader. I want to take one more last chance, with rest of my remaining capital of 1 lakh.

Which software will be required for me to achieve the above target? Do you know any good tip provider to fulfill my requirements? I can’t lose more then 10% of my capital, and when I lose 10% I will quit from market. I have also spent a lot of money on a lot of trading software and tips providers.

Is there any kind of hope for my kind of student?

The first thought that came to my mind was there is no hope for this kind of trader because even after losing for 25 years, he just wants a software or a tip provider to help him make money. He does not want to learn anything. If you cannot help yourself how can you expect a software or a tip provider to help you?

What a waste. No I am not talking about money, but TIME. Rs. 25 lakhs is NOT in any way bigger than 25 years. When I asked this trader what have you learned in your 25 years of trading, the answer was shocking. He we silent. Which means he learned nothing in the last 25 years. This is sad. If you are passionate about something – go into details to learn about it.

The last thing you should do is keep trying the same thing again and again without any research or knowledge. If you do the same mistake every time, how can you expect a different result every time?

How many of you reading this are doing the same investing mistake again and again thinking that this time the outcome will be different? I bet if you haven’t learned anything and are still speculating, you will get the same result every time you trade. You will waste time and money. After years you will feel guilty about what you did with your money. Please don’t let that happen to you.

When I asked him why he kept repeating the same mistake, he said he feels sad about it now. He said he wanted to get rich fast and kept trying the same thing. He has also hinted in his email that it got into his ego to beat the markets. Well emotions don’t work in stock markets. They do not know you.

I then told him he could be worth 500+ crores today – repeat 500+ crores of rupees – had he not done those mistakes with a only paltry investment of a few thousands rupees 25 years back. He was shocked. He asked me how. I know you also want to know how?

Lets discuss. 🙂

Imagine a stock investor bought 1000 shares of ITC ltd. at Rs. 10/- in 1975. Total investment amount = 1000 * 10 = Rs. 10,000/ -. He met with an accident and went into coma.

Agreed this is a very unlikely situation, but for now lets believe it. Please note that Rs. 10,000 is NOT a very big investment even in the year 1975. Calculated at 9% inflation rate, at today’s value it is equivalent to Rs. 314,094.20. If 3 lakh is not a very big amount today, 10,000 would also be not that huge 40 years back, but still significant.

Lets get started. The investor is in comma and this is what happens when he is sleeping:

1975 – Bought 1000 Shares of ITC Ltd. at Rs. 10 per share. Total investment amount Rs. 10,000.00.
1978 – ITC issues share bonus 1:5. Current shares: 1000 * 5 = 5,000.
1980 – ITC issues share bonus 1:5. Current shares: 5000 * 5 = 25,000.
1989 – ITC issues share bonus 1:1. Current shares: 25000 * 5 = 50,000.
1991 – ITC issues share bonus 2:5. Current shares (50000*5)/2 = 1,25,000.
1994 – ITC issues share bonus 1:1. Current shares: 125000 * 2 = 2,50,000.
2005 – ITC issues share bonus 1:2. Current shares: 250000 * 3 = 7,50,000.
2005 – ITC declares share split 1:10. Current shares: 750000 * 10 = 75,00,000.
2010 – ITC issues share bonus 1:1. Current shares: 7500000 * 2 = 1,50,00,000.

1000 shares converts to 1.5 crore shares.

Lets assume the investor got cured from comma and was perfectly OK last month and suddenly realized he had invested Rs. 10,000.00 in ITC in 1975.

He calls his broker and asked him to sell all shares in his account. ITC shares reached 390+ last month.

390 * 1,50,00,000 = 585 crores. Assuming that more than 215 crores dividend was also given.

Total profits = 585 + 215 = 800+ crores on an investment of just Rs. 10,000. Remember all this is TAX FREE because any investment in shares for more than 1 year is not taxed. Dividends from shares is also not taxed.

Compare this to a bank Fixed Deposit: Investment of Rs. 10,000.00 in 1975 re-invested with interest as soon as it got matured every year for 40 years today would be worth only Rs. 3,14,094.20. A little more than 3 lakh rupees. I have not even deducted taxes. A fixed deposit in bank of any amount for any period of time is taxed. So the investor will be left with less than Rs. 3,00,000.00 (3 lakhs). Poor returns.

(That does not mean you should never invest your money in fixed returns. Some money should go to very secured financial instruments, just for diversification of portfolio. Stock markets are volatile – you may need some money very soon – this should be in fixed income instruments. Click here to read how I diversify my portfolio. If you are young, most of your savings should be invested in stocks of good companies.)

Another example:

Had your relative invested in 100 shares of WIPRO at a price of Rs. 100/- per share in 1980 and forgotten about it – this is what would have happened to his account. (Note that unlike ITC shares, WIPRO shares are being bought at a premium.)

Total investment: 100 * 100 = Rs. 10,000.00
1981 – WIPRO declares bonus 1:1 = 100 * 2 = 200 Shares
1985 – WIPRO declares bonus 1:1 = 200 * 2 = 400 Shares
1986 – WIPRO declares split 1:10 = 400 * 10 = 4000 Shares
1987 – WIPRO declares bonus 1:1 = 4000 * 2 = 8000 Shares
1989 – WIPRO declares bonus 1:1 = 8000 * 2 = 16000 Shares
1992 – WIPRO declares bonus 1:1 = 16000 * 2 = 32000 Shares
1995 – WIPRO declares bonus 1:1 = 32000 * 2 = 64000 Shares
1997 – WIPRO declares bonus 2:1 = 64000 * 3 =192000 Shares
1999 – WIPRO declares split 1:5 = 192000 * 5 = 960000 Shares
2004 – WIPRO declares bonus 2:1 = 960000 * 3 = 2880000 Shares
2005 – WIPRO declares bonus 1:1 = 2880000 * 2 = 5760000 Shares
2010 – WIPRO declares bonus 3:2 = 5760000/3 = 1920000*2 = 3840000+5760000 = 96,00,000 Shares

100 shares of WIPRO became 96,00,000 (96 lakhs) Shares in 2015 (or in 35 years).

WIPRO is currently trading at around 650.

650 * 9600000 = 6,24,00,00,000.00 OR Rs. 624 crores. 🙂
Dividends = Rs. 200+ crores
Net Worth = 624 + 200 = Rs. 824+ crores.

Profit of more than Rs. 824 crores by a throw away paltry investment of just about Rs. 10,000 in 35 years without doing any hard work. How is that for a return? Most people do work for 30-35 years. Someone who had done that could have retired now with worth more than many rich industrialists/entrepreneurs in the world. 🙂

Had you father invested in shares worth even Rs. 1000/- (one thousand only) in your name in 1975 in ITC or WIPRO, you would be owner of many of crores today. 🙂

Now the first question that may come in your mind is, how can we know that a stock will give such a return in a few years time. Good question. But the fact is almost all big companies returned almost the same amount. Mid-caps were better. May be you would have made 100 crores with some other company but does that really matter?

What about diversification? Some in ITC, some in SBI, some in HDFC etc? What about more investments every year along the way? Can you get the idea I am talking about? By the time you retire you will have accumulated so much wealth that not only can you live very rich life but you can pass this great wealth generated to your children and/or grandchildren.

There is a living person who invested in stocks using the same strategy above and made billions of dollars. He is none other than Warren Buffett. He is probably the most successful stock market investor of our time. He is also one of the most riches man walking on Earth today. Stock markets made him rich but it was not overnight. It took him years of investment. Once some reporter asked him what was the best time to sell a stock? His reply was NEVER.

Yes it took him a lot of years to become very rich, but how you want your investment to perform 10 years from now? Ask yourself.

How to make crores from the stock markets now?

So you want to know how you can repeat the same performance now? Answer is the same. Something that does not make money will never make money and something that does make money will make money. This theory will hold true years from now.

You need to identify stocks that you want to invest into and keep investing into them till you retire. Choose 5-6 great companies and start investing today. Forget this money till you retire. Here is how you can identify these stocks.

Of course diversification also means not investing everything in just one place. What if your stock portfolio does not perform? For that you must trade as well – but trade conservatively. If you are conservative with your trades you should be able to make money over time. Even a 20%-30% return a year is much better than speculating options and losing money. Results can be great if you compound that money. We are talking 10 years from now, not tomorrow.

With stocks you do not have control over price. With trading options conservatively, you have.

Your age is running out. If not now then when?

I got this comment from Mr. Noble which I think is quite interesting so I am posting both the comment and my answer here to benefit all. Most people do not read comments.

It is possible to speak these ideas from hindsight. The markets have matured and we are not in 1975. Investments now requires a different kind of approach. This may not work as we are in a different market cycle. Also cycles can not be identified beforehand. The companies existing today may not be around in another 30 years.
Thanks,
Noble

My answer:

Noble,
You are absolutely right the markets have matured and we are not in 1975. But that stands for every business. If you want to start a company – you need to just jump into it with some research and money. A lot of people have ideas to do business but will give themselves excuses like – today’s economics is different than what is was 20 years ago, there is a lot more competition blah blah. These are the people who never are able to start a business and in spite of being intelligent, die working their life in a 9-5 job. Had they not given themselves any excuse and given it a try for at least 1 year – I am sure most would succeed.

The point here is if markets have changed why can’t you?

The biggest change that has happened is that today shares and even IPO (Initial Public Offering) are sold at a premium.

So if a great company like ITC or WIPRO comes with an IPO today it would be at least in the price band of Rs. 300-350 per share. But if you count inflation, going 30 years back probably Rs. 300/- would be equal to 23 – double that of 10. So maybe not 800 crores, but you make 400+ crores – does it really matter?

Yes it’s difficult to pick companies that will keep growing for years, but it’s not difficult to pick a few that are doing very strong today. Keep investing in them for a few years, and when you make a healthy profit – take your money out. Then according to those times pick another set of great companies and start investing. Rotate your money and compound. 🙂

It is not that difficult. For example I lost money from 2007 through 2011. A lot of investors lost too. My psychology was exactly the same on the lines of what you have written. It’s a different market, it’s hard to find great companies to invest blah blah – the result I lost money because I had no discipline or a planed approach to investments. And I wanted quick results. You have to learn to live with the volatility of the markets.

Let us take an example. At that time IT and banking sectors were doing well. Had I invested gradually in Axis Bank, SBI, and Infosys (all giants) – my investment would have grown by at least 500% – this in just eight years.

So stop giving excuses. Just start investing. I bet in a few years time you will see the benefit.

Do you invest directly in stocks? If yes let me know which stocks you invest and how you plan your investments. Your comments will help many investors reading this blog.

Thanks.

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Double Your Money in 3 Months Is a Myth
Analyzing Intraday Trading Nifty On The Budget Day

About the author: I started trading stock markets since 2007. However my first 3 years were losses. Then I dedicated almost 1 year on studying, researching, paper trading options and learned a lot in that time. Since 2011 I am trading Nifty options profitably. Call me if you need any help trading options on 9051143004.

{ 67 comments… add one }
  • Noble

    Hi Dilip,
    It is possible to speak these ideas from hindsight.
    The markets have matured and we are not in 1975.
    Investments now requires a different kind of approach.
    This may not work as we are in a different market cycle.
    Also cycles can’t be identified beforehand.
    the companies existing today may not be around in another 30 years.

    Thanks,
    Noble

    • Noble,

      Your question was so good that I had to shift my answer to the post itself. Please find it there. Most people do not read comments. The answer was something I wanted every visitor to read.

      Thanks for the great question.

  • Abhishek Patil

    Yes I do invest in stock. I plan my stock invest for a long time say 5 years. And very true that if we compound the money( As Warren Buffet did the same thing,the dividend he got was reinvested by him in Stocks) we will be rich over some time.
    Dilip Sir Thank you very much. Keep writing.:)

  • Nizarali

    Sir,
    Very excellent presentation, sir, I am subscriber of your course ” Conservative directional and non-directional strategies” & I like to start long term investment from Funds I will get from my insurance policy maturing next month .
    please help me in choosing 5-6 great companies for safe, secured & peacefull retired life.
    Thanks for your valuable guidance in advance
    regards, Nizarali

    • Nizarali,

      Its nice to know this article is helping someone start an amazing journey of investment in the stock markets for the long term. Apart from options trading you must invest some cash every month into good stocks.

      I cannot name any stock here as a lot of people will read this and start investing in that stock thinking I am an expert stock investor.

      I have knowledge in options but I cannot predict which stock will give spectacular returns in 20 years from now.

      Full disclosure: I do invest a certain amount every month in good stocks. Its a fixed amount and I do not increase/decrease it every month depending on my view. This is known as dividing the risk. You do not know which one will bring great result years from now. Heck the company owner himself may not know what will happen to his company in a couple of decades. Who are we to know?

      I do my own research. Similarly you can do your own. I invest a small amount in a mid-cap and a large-cap stock every month.

      Thanks for following the advise.

  • VIPUL PATEL

    Hi Mr. Dilip,

    First of all many congrats and thanks a lot for doing such a lovely job. I have almost read all your posts last week. And i am going to take your course next month.

    I am 28 years old earning around 50-60k per month married 6 months back. Started trading in 1 year back and traded in almost all the segments of the market. But i have not benefited except in Cash segment where i am still holding and keep investing.

    All in my family runs away from the stock market especially my dad and all have fear of losing money like all and not trusting me. I will make them read your posts to convince this weekend.

    Above all my wife even does not believe me as I told her loss some money in trading. I wanted to ask you how you convinced your wife in 2010?

    I was about to plan for my future expenses and want to safeguard myself for them. And got the correct ideas from your posts.

    Thanks a lot man.
    God bless you.
    Regards.

    • Vipul,

      Thanks for the kind words.

      When I started this blog I had no intention of making money from this site. The idea was to help traders as much as I can. But it took too much of my time, so much so that my wife started complaining. She was right – TIME is money. So I had to start this service. But my cost is very reasonable and affordable by every trader. Heck you get the money back in a few trades. And I don’t feel guilty charging as it’s actually helping traders make money. As long as they are happy I am happy. 🙂

      Vipul, age is on your side. THIS IS A BIG PLUS. See this. You are earning 60k per month. I am sure you can start trading with 1 lakh (This is the money you should not be concerned with till you retire). You need NOT add any more money to your trading account. Compound 1lakh at just 2% (not 3) a month or 24% per year (it’s actually more because 2% on 2% for 12 months is more than 24%) till you retire after 32 years. You know what your account will be worth? This: Rs. 97,609,912.89. That’s almost 10 crores. 🙂 On a lighter side tell me how much I should charge you now for the course? 🙂

      That’s not your only return – count returns from direct investing in stocks, PPF, EPF, and other investments.

      >> Above all my wife even does not believe me as I told her loss some money in trading
      Haha my wife still does not believe me even after showing her all profits we are making from not just the trading account but from mutual funds and stock investing. She believes in only one thing – Bank Fixed Deposits, because they give guaranteed returns. If you count inflation in and taxes paid on FDs – real return on Bank FDs is close to zero. She does not understand that. And now I do not have the motivation to convince her therefore do not add any more money in my trading account – but I do not take my profits out as well. Just compounding.

      2008-2010 was very difficult for us. She had just delivered a baby in 2008 and I was losing money month after month at a time when money was paramount. On the other hand my Job was providing us good money. I stopped trading and started learning. In 2011 I told her let me take a risk ONE LAST time, if I fail this time, I will quit. She knew we had nothing to lose. And for some strange reason she believed me. You cannot understand women right?

      Just tell her looking into her eyes that you are trying option trading one last time after learning from a credible source. And you are taking a limited risk. Tell her if it works you guys are going to have a great future and even if it does not, still you guys will have a great future. Hope she will believe.

      Thanks Vipul and God Bless You too!

  • Rao

    Sir,
    After many years, I have come across a credible person like you, on internet. I will definitely subscribe to your course next week.

    • Thanks Rao. I can understand why you wrote that. Most companies are just interested in your money and offer tips that work for most 2 months and then one tip they give that ensures you lose whatever you made in last 2 months. And when you call them they either do not pick up the phone or scold you for not following tips.

      Actually we are to be blamed, not them. Because we do not want to learn, just want someone else to help us become extremely rich. I am a firm believer in God. Tell me why would Gods help you to become rich without any hard work? So in reality he punishes and people lose money – a lot of money. So learn and work hard towards success.

      Cheers. 🙂

  • Dhanalakshmi Gopal

    Hi. This is dhana of age 32. I been losing in sticks and forex for about 5 years about 20lakhs. Still I can’t even to get up for my loss. Keep on searching. Now I am struggling for daily basis itself. See as female I struggled a lot in this felid without earning a penny. Something terrible. Searching for a source to get up and run in a successful way.

    • Dhana,

      The real reason for loss is greed and hope. Without the basic knowledge you were actually buying a lottery. How many times will you be successful if you buy a lottery. The same is the case with trading. If you do not have a plan you are actually gambling and that is not a great way to trade. Please learn about options trading as much as possible.

      Thanks.

      • Dhanalakshmi Gopal

        Thanks. I spoken to you yesterday via mobile. Some valuable moments about options. I will pay your subscription and rock in options. I confirm in a weeks time.

  • SUDIPTENDU PAL

    Hi Dilip, I am interested in learning the basics of stock market trading. I am interested in “long term investment”. I want to talk to you from US. Kindly provide your contact number.

    Cheers
    Sudip

    • Sudip,

      I provide a course on options trading. My emphasis is on hedging and non-directional trading. For long term investments the best route is investing via SIPs in Mutual Funds having good track record of at least 5 years.
      Hope that helps.

  • Hi Dilip,

    One more informative post from you. However there is a mistake in ITC calculation.

    “1978 – ITC issues share bonus 1:5. Current shares: 1000 * 5 = 5,000.”

    1:5 bonus refers to 1 extra/free share for every 5 shares held. So the investor gets 1000/5 = 200 additional shares and cumulative he will have 1200 shares, not 5000.

    Anyway, intention of the post to motivate traders to think long term is laudable

    Regards,
    Satish

    • Thanks Satish. Will look into this and update. I hope you can understand the calculation on such a situation is difficult. But I will find time to correct. Thanks again for pointing out the mistake. I need people like you to correct me whenever I am wrong. I do not have a team, but I am trying my best.

  • ankush

    hi sir,
    I’m starting my investor career with 5000 bucks i am a student (20 yrs old ). sir i wanted to know if stock market is so lucrative why do banks advance money to individuals at 12% or so interest rates? why not directly invest in big business houses only sure its more dangerous for a prudent person like bank but the debtor can also make default and all that processing cost of loans etc. how does it makes it all worth it for the banks?

    • Ankush,

      Kudos to you. At a very young age you want to invest and learn about investing in stock markets. Believe me if you do it right, have patience and discipline you can create amazing wealth over the next 20 years. But you have to start right now for the magic of compounding to do its job.

      You can start with 5000 but you may have to increase this amount as you grow and get a job.

      Now to your interesting question. Banks have funds allocated to do a business and that business rules do not allow them to invest in the stock markets where the returns are not guaranteed but speculative. How banks work is like this – they get cash via savings accounts, current accounts, fixed deposits etc. Now they give anywhere from 3.5% to 9% return to their customers for keeping their cash with them. However they lend this cash in the form of personal loans, home loans, car loans, credit cards, business loans etc at varying rates starting from 10% up to 18% per year or more.

      The difference between these rates is their profit. This happens in thousands of crores daily so their profits also run in thousands of crores. If you have 100 corers and you can lend it to someone at 18% return where inflation is only 7-8% why you would invest in the stock markets to make more? Also understand that banks DO NOT OWN any money. 100% money they have is borrowed from someone at a lower rate and given to someone at a higher rate – its just the difference in the interest rates that they pocket. As you can understand there is no need invest in stock markets where there can be chances of losses as well in the short term. This the banks may not be able to handle.

      Secondly, yes there are defaulters on personal loans, home loans etc – (its known as bad assets and its huge currently in the PSU banks) but their percentage is very small having no effect in functioning of the banks. Please also understand that home loans defaults is not a big issue as banks can get their money by foreclosures but default on personal loans is as issue as its a unsecured loan and there is nothing that the banks can sell to get their money back.

      Hope that answers your question.

  • Paras

    Hello Dilip,
    The way you wrote this article was extremely nice,well i want to be a intraday trader and i have got much knowledge of technical analysis,if you can give some suggestion it will helpful,Please do reply

    • Paras, thanks for the nice comment.

      Well I do not understand why you want to be a Intraday trader. TA or not, if you give your trades a few days time, the chances of success increases. However if you give only a couple of hours its pure speculation. And day trading is a full time business. If you have a business or a job – there is very little chance that you will succeed as an intraday trader. On top of that once you start losing you will hate the days markets will open – because you will get into the habit of trading and winning and losing. At the end of year you would have lost 1 year and money.

      One person will be very happy though – your broker. 🙂

      Imagine a trader doing Intraday on the above stocks since the last 20-25 odd years vs someone who did a monthly SIP on the above stocks and worked hard on his Job as well.

      Today the Intraday trader will barely have enough to make ends meet, while the trader who did a SIP and forgot, would be sitting on piles of cash – so much so that depending on his investments he can leave his job.

      That’s my views Paras. Rest your money and time. I seriously hope you prove me wrong. If you still want to go ahead please learn the art of scalping. Its more art than science. TA is not required for that.

      All the very Best.

  • dinesh ramegowda

    really miracle ! I also learnt lot of basic things from this.
    Sure that it is very very useful for beginners.

    Thank you for this information

    • Dinesh thanks for reading and really glad that the information helped you.

  • Naveen

    I have by 1000 share insilco.,dq entertaiement what is future of this shares

    • INSILCO Group (T) – This does not even trade in NSE. It only trades in BSE. Who recommended you this stock?
      DQ Entertainment (International) Ltd. Group (B) – on what basis you bought this stock?

  • marina s rao

    Dilip ji,

    A gem of an article from U.

    In comments section while replying to Mr. Paras regarding Intraday trading U mentioned about of ‘ The Art of scrapping ‘. It should be ‘ The Art of scalping ‘.
    I presume it is just a slip of pen rather key on keyboard.

    I am getting wiser day by day by going through your articles.

    Keep educating Trader / Investing community.
    May GOD bless us all.

    Happy 2016.

    – M S Rao

    • Well well Sir, so happy that you are not only reading all my articles but also the comments. 🙂 Thanks for pointing out the mistake – its been corrected now and I have also linked it to the correct source. If you find any mistake in the blog please do let me know. I write all articles in the site myself and I can do mistakes. It is good if people like you help me find them. Any ideas to improve the site are also welcome. Many Thanks and A Very Happy 2016 to you too.

  • kamal

    seriousaly sir …..great information for newly joined traders.i am new to in this field but you give me a proper way of investment,thank you very much sir.

  • patil

    helllo
    very usefull information
    thank you

  • Deepa Chopra

    Hi Dilip ,
    I am a sub broker sice the past 10 years and seen the ups and downs of the stock market .I found your post very useful and inspiring not only for the investors but for the brokers as well .Keep up the good work !

    regards
    Deepa

    • Thank You Deepa. It is so motivating that someone who is much senior to me in this field is appreciating my work. My Best Regards. 🙂

  • m.a.prabhakaran

    dear mr dilip

    I already subsribed your course and read it carefully, then started the trade stratagy 1.its quit simple for me and hope this way is very clear.any have iam reading all the articles which your are posting all are very good for traders whom coming to this field newly. regard’s prabhakaran.

    • Thanks Sir. Nice to know you are making profits. Yes Strategy 1 itself is good enough to make consistent profits.

  • Ramu

    Hi Dilip sir,

    This is Ramu, aged 30 earning about 1.1 lacs at a IT company. I am recently married(wife is not working) and invest in blue chip funds like SBI, Infy, L&T and Tata motors.
    I am a long term investor willing to wait about 5 years to compound my investments and buy an apartment.
    Since the current market is bearish and because of china slow down, i m hoping i will be able to make good money in the next 5 or 6 year ahead.

    What is ur view?

    • 5 years is a good time (though not very good for significant gains) for a long term view. But since these markets are unpredictable you don’t know what will happen.

      If you really want to invest then do it systematically that is keep on buying these Blue Chip stocks a fixed amount every month.

      20% of you salary is good to start with. Rest can go into liquid funds.

      You must also learn options and start conservative trading. If stocks don’t perform and you need money at that time – you will be in a serious mess. Conservative trading can increase wealth slowly on the side.

      Rest your call. Hope that helps.
      Best.

      • Ramu

        i dont do f&0, infact i know nothing about them.
        i used to invest in MF’s,but recently moved onto stocks for better liquidity.

        I am betting on Asian paints and itc, as they are clean with good mgmt and good contracts on the books.

        Ramu

  • Businesses have always outperformed other asset classes, if they are managed in a right manner. Not every business becomes successful and their is a lot of importance of stock selection. Only indepth research can make such stock selection possible.

  • Ramu

    Hey Dilip,

    What is ur view about investing in SBI stocks? Its been hammered and i love to invest
    but i am worried about the Bad npa it has?
    Govt of india will let the bank fail, but can we expect it to reach atleast 300 in say 3 years
    I am planning to invest lots rite now
    Ramu

    • SBI is a good company but please do your own research before investing.

  • SARATHKUMAR

    Sir ,
    Iam a student ,I can invest 100/month in mutual funds where as I want to invest minimum sum 1000Rs. specified by stock exchange towards equity.
    Please let me know your consent .If Iam right in which company I want to invest.
    Reply through email.
    Thanking you.
    sarathkumar.v

    • Minimum investment in mutual funds via SIP route is I think Rs. 500 per month. Chose 2-3 good pure equity funds and start a SIP. Invest in 5-8 Group A stocks every month on the same day. Keep the amount invested in each stock the same.
      Best.

  • shivam

    Sir,
    I am 23 yrs old and wanted to invest in stocks. I am planning to start it with Rs 5000. And opted lloyd electric and jagarn prakashans as my choice (as government is planning big metro projects which require air conditioning so llloyd, jagaran prakashan biggest print house in hindi section) . How you rate my choices. And please suggest in which sector/sectors i can diversify my options for next 7 yrs like banking or IT or FMCG or aerospace or defence etc. keeping in mind of their future growth prospects.

    • Shivam I invest in companies with great MOAT. Good management + great product + right pricing. I may not be able to reveal the stocks here as its my risk and I do not want others to follow blindly my investments. But you are doing a great job by doing research on stocks.
      All the Best.

  • Nikhil Kaul

    Hi Dilip,

    Quite a good post. I have just started investing in the stock market via an online broker who gives me a user friendly platform to trade.

    Now my question is – My first investment was Rs 5000. I wanted to know how shares are bought, how it grows, and how the profit is credited to your account i.e. I wanted to go through 1 cycle and get the feel. I got it. I earned Rs. 5017 in an intraday trade. Now, what was demotivating for me was, I earned Rs 17 only! I mean, since then I have invested in total 20,000 and currently my portfolio stands at 21000. Only Rs 1000 in over 2 weeks? It feels like peanuts and I am super demotivated! I also called my broker to tell him that I don’t feel like investing so big a money and earn so less a profit.

    I want to know, am I doing something wrong here? I basically drive on their recommendation which normally turn out to be true, but do people only earn peanuts in stock market? What am I doing wrong here? I know investing for a long term period is the advice, but I have heard stories like “people pay the bills of their meals in a restaurant, by buying a share when they order, and selling the share when they pay the bill!” What am I doing wrong here?

    • Nikhil I must say you have to learn a lot here. You are lucky to make that 1000 bucks in your first trade and you feel its less. 1000 is by the way is 5% of 20,000. So basically you made a 5% return in 2 weeks which equates to 10% return a month. From which angle you think its less? Which business will give you a 5% return in 2 weeks? It will take me a book to write what you have asked, but if you research you can find a lot of great resources online. It needs patience, persistence and discipline to make money in stock markets. 5% a month is a great return, learn to be happy with it.
      Thanks for your question.

  • Ravinder Yadav

    Millions of thanks to you!!

    Amazing post in simple words that’s easy to understand. Reader get confidence after reading your post.

    People like you are real trainer for people like us who do not learn before trading. I am trading since 2006 & Till now I have learned one thing so far is that invest only that much amount of money that you can spare. Day trading also not worked for me & I lost RS. 60000 only in 2006 when I was pursuing my b.tech. I stopped trading. Again I have started investing from 2015 & now I am trying to learn.
    I hope I will succeed.
    Thanks for great Teachings.

    Regards
    Ravinder Yadav

    • Ravinder Thanks a Lot. Yes anyone with knowledge succeeds in that field. B.Tech means you become a good engineer.

  • Shivraj

    Sir.
    I have read ur above entire posted. My age 23 and i have just started to learn market. So sir company should i invest so that after 30 year i could get some money… Now at present im working in kohler india ptv. And my Salary is 15000 per month. Can’t afford big amount of money in share market. Please guide me sir.

    • Shivraj before investing in any company please do research on that company on how it works, its products, financial results, debt and its marketing strategy. That way you will get some idea on its long term results. Then invest small sum of money what you can afford every month on a fixed date. Hope it helps.

      • Shivraj

        Sir.
        I had brought 150 share of ABG shipyard one month before will i keep for long term or sell it.. Or invest more in this company

        • Sorry but I cannot research each and every stock there. Do research yourself on this company.

  • siddesh Kamulkar

    I want to subscribe for your page

  • kabir

    hello sir i m kabir aged 27 luking for some guidance in stock investment

    • Best guidance is you yourself. Just keep reading about stock markets as much as possible. If you need anything else please write here.

  • Aarti gupta

    Sir my name is aarti i wanted to invest 20k in stock market but dont know the procedures and in which company i should invest so that i can get maximum returns over 5 to 6 years please help me out

    • Aarti frankly it is very hard to figure out which company will give the maximum return in next 5 to 6 years. You are asking me to predict an option that will double in 10 days. These things are impossible in stock markets. Making money in stock markets or options trading is slow process not a fast way to make money. Just keep investing in good companies with great Stock MOAT.

  • Kalaiselvan

    Dear Sir I have been trading from 2005 on and off on Equity and F & O. mainly Intraday and few holdings. Earn a bit but couldn’t capitalise that and lost a lot of money. with last hope thought of trying your course once and do it.

    U r post and ur words gives lot of hope. yeah ur right greed and hope are the reasons for my loss.

  • Dev Roy

    Hi Dilip,
    I am quite new in the stock market. I wish to know that what if I only invest buying direct large cap stocks by myself instead of investing in mutual funds? Suppose I invest 40 lakhs to 50 lakhs in buying large cap stocks (Different industries or sectors ) for the next 15 years will I be able to get a very high return?

    Thanks,
    Dev

  • Nishant

    Sir, may i know that is there any way to make 5-7% of your invested money in a month with out any loss, means to say i want consistently profit

    • Nishant stock market investment comes with risk. 5-7% of your invested money in a month is very hard to make.

  • Kshirod

    Hi, love ur attitude towards helping other. I am 33 yr old and investing in stocks since 2014. Before that for 2 year I was trading. Now, I want to invest 20000 rupees per month. I have made more than 25% annualised return in all my investment, except for SUNPHARMA. All this by my own study of Chart and research, of course with the help of Lord. Now, I need ur able guidance for fine tuning my investment.
    Thank you very much.

  • Sahana

    Hi Dilip,

    Very informative post . You have covered it in details.

    However the quality of today’s youth lacks is “patience”. Its time in market which makes fortune and not timing.
    You have given example of wipro, only those who had patience and held on to it would me making millions today.

    Thanks,

    • >> only those who had patience and held on to it would me making millions today
      This is absolutely correct.

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