I've been investing at personal level in Indian Stock Market for a long time now. I bought my first stock in Dec 2004 and since then my portfolio has grown and grown. I love taking bets and ready to forgo the amount if the market crashes. (so, in a way I'm prepared for the risk). Most of the times I hear news about some stock from somebody in the family or office (and never follow CNBCs, NDTVs stock experts etc), track that stock for probably a month and then take a decision to invest in it. That has been my usual investment style. Things that I have learned post MBA is to look at the financial reports and try to form a basic reasoning before investing. Nevertheless, my returns have been pretty ok and I'm happy doing this personal investment and excelling my return targets every year.
One very important thing that I have observed over a period of time and learned during MBA that the trick of making money in stock market is not through continual investing. However, it is really through selecting the right time to exit and make a realized profit. The realized profit every year is actually my return targets. And because of this strategy, I've made money in the stock market by not waiting for a return and either take a sell or buy more call once I don't see the stock moving in the direction I expect. Have been fortunate to not wait for a long time and see my profits eroding as the financial crisis these days is taking a short cut and returning pretty fast.
One very important thing that I have observed over a period of time and learned during MBA that the trick of making money in stock market is not through continual investing. However, it is really through selecting the right time to exit and make a realized profit. The realized profit every year is actually my return targets. And because of this strategy, I've made money in the stock market by not waiting for a return and either take a sell or buy more call once I don't see the stock moving in the direction I expect. Have been fortunate to not wait for a long time and see my profits eroding as the financial crisis these days is taking a short cut and returning pretty fast.
