This site is educating traders and investors since 2014. You can read about me here.
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Here are a few important things about Stock Markets, Investments and Finances which you Must Read:
1. If you are looking for tips/advisory service or already taking one – I am sorry to say you will lose a lot of money. I have been there lost that. So advising you against taking tips from anyone including your broker. Its better to learn and trade yourself. There are many tips providing companies in Indore – stay away from them. I suggest install Truecaller App on your phone and never pick a phone call with color red. They are 100% accurate in identifying SPAM calls.
2. If you are planning to automate your trades be very cautious as there are many software out there to take your money every month but if they do one single mistake you may lose more than you made. Software do have bugs please remember that.
3. If you want to invest in a stock then keep a time frame of at least six months. Please note that investing is NOT trading. Keep them separate. If profit comes before 6 months you can exit, but do not take a stop loss before that time frame. But you may also keep a stop loss based on the money you are wiling to lose in an investment. So a stop loss in investment is different than stop loss in derivative trading. In investment it should be based on money and in trading it should be percentage of the margin blocked as you are taking a leverage.
4. If you found a strategy in a website or YouTube, paper trade first before trading with your hard earned money. Now days there are so many videos that you may have to spend a lifetime seeing each one and then researching them on paper. For this reason I have stopped seeing YouTube videos on stock trading. It’s hard to figure which is good and which one is uploaded by my neighbor (maybe) or an unknown person randomly on stock markets.
5. If not today, tomorrow you will understand that Technical Analysis is not worth the hype. Stocks are a non-living thing – they are not bound to move as per the charts order them. Warren Buffet by the way the biggest investor and profit maker from stock markets of our times does not know even A of Technical Analysis. So if you are trading based on Technical Analysis, please keep your stop loss in your system always. 50% of the times your stop loss will be hit.
6. If you are married please ensure that you share 100% of your investments with your spouse. Your spouse will make sure you are not blowing your account for greed or for whatever reason.
CCD founder VG Siddhartha did not inform his wife about the loans he started taking from his friends and other sources for reasons only known to him. Had he informed his wife about his plans she would have surly stopped him from doing anything wrong financially. Consequences of bad financial investments can be ugly. Siddhartha case is known to all.
So it’s very important to inform your wife of all the investments you have done in stocks markets and other places and also the profit and loss you are doing. Do this every month to ensure your finances are in place.
In most cases it’s the husband who does not inform his wife about the investments made. Wives on the other hand inform every investment they do to their husbands. As for as investments are concerned it’s your moral right and for safety of future of your family please do inform all your investments to your wife/husband.
7. At the end of every quarter write down in a dairy or in an excel sheet all the investments you have done in all the places including their current values and add them to know your financial condition. This way you will be able to control your greed in taking risky trades in derivative trading. Also your investments will be scattered across multiple sources which is good for your finances.
You can download an excel sheet here to keep a tab on your investments. I use the same excel sheet to manage my finances and keep them under control. Of course after every calculation I make sure to show the sheet to my wife to get any suggestion if any.
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Dilip Shaw, Founder
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INCOME DISCLAIMER: Any references in this site of income made by the traders are given to me by them either through Email or WhatsApp as a Thank You message. However every trade depends on the trader and his level of risk taking capability, knowledge and experience. Moreover stock market investments and trading are subject to market risks. Therefore there is no guarantee that everyone will achieve the same or similar results. My aim is to make you a better & disciplined trader with the stock trading and investing education and strategies you get from this website.
DISCLAIMER: I am NOT an Investment Adviser (IA). I am an Authorized Person (AP) of a Stock Broker. In other words I am a sub-broker. I DO NOT give tips or advisory services by SMS, Email, or WhatsApp or any other forms of social media. I strictly adhere to laws of my country. I only offer education for free on finance, risk management & investments in stock markets through the articles in this website. You must consult an authorized Investment Adviser (IA) or do thorough research before investing in any stock or derivative using any strategy given in this website. I am not responsible for any investment decision you take after reading any article in this website. Click here to read the disclaimer in full.