“You talked about the importance of taking small losses before they magnify into bigger losses,” a reader of The Safal Niveshak Post asked me yesterday. “But how do I know which stocks to sell to takes such losses? Is that so simple?” “No, it isn’t,” I must say. Knowing when to sell a stock or which stock to sell isn’t as easy a decision as knowing when to buy a stock. In fact, most discussions on investing revolve only … [Read more...]
The Most Important Decision to Make After You Buy a Stock
Posted on December 9, 2011 // Leave a Comment
A Big Lesson I Wish I’d Learned Early in My Investing Life
Posted on December 8, 2011 // 4 Comments
I’ve learnt several lessons in my lifetime as a stock market analyst and investor. One of the most enduring of them has been – taking small losses is often better than taking small gains. The sad part is that it took time for me to learn this important lesson. I’d read it many times that investors must try to “cut their losses short and let their winners run”. Sage advice, but I did not follow till about the fourth year of … [Read more...]
The Story of My Life…and Yours
Posted on December 7, 2011 // 8 Comments
A reader of The Safal Niveshak Post recently asked me about my background and experience, and about the story of my life. I thought today is a good day to share that, given that my story started exactly 33 years ago. :-) However, being an analyst and investor, here is a different way I will tell you the story. Hope you’ll be interested to read it because the most important takeaway from my story is something that I’ve reserved for … [Read more...]
John Templeton’s 16 Rules for Stock Market Success
Posted on December 6, 2011 // 2 Comments
“This time it's different!” How many times have you heard this from a stock market expert or from your friend who has made big money from stocks in a short time? These words are commonly used in the stock markets to explain that stock prices can touch the sky, or touch the earth’s crust depending on whether they are rising or falling. But if you were to listen to the legendary Sir John Templeton, these are four most dangerous words … [Read more...]
3 Great Investing Lessons from Dev Anand
Posted on December 5, 2011 // 1 Comment
Image Source: The Hindustan Times“What is Dev Anand doing on a website dedicated to stock market investing?” you might be thinking. “Agreed, people are remembering the most romantic hero of Indian cinema after his demise, but still, what lessons can an investor take from him?” See, it is human nature to overlook the importance of those who are here and now. Those who are great and live among us seem more normal because they’re … [Read more...]
“I Love Safal Niveshak…” Contest
Posted on December 3, 2011 // Leave a Comment
The "I Love Safal Niveshak" Contest is now closed. Thanks to everyone who submitted an entry. Here is the list of winners The Safal Niveshak movement of helping small investors become independent, smarter, and successful in their investing is yet to complete six months of operations. But even in this short time, I am proud to announce one important milestone that Safal Niveshak has achieved. The Safal Niveshak Post, my free daily … [Read more...]
How Many Minutes Did You Waste Today?
Posted on December 2, 2011 // 4 Comments
“If you spend more than 13 minutes analyzing economic and market forecasts,” the famous investor, Peter Lynch, once remarked, “you’ve wasted 10 minutes.” I found myself thinking about Lynch over breakfast recently as I was skimming financial headlines in the newspaper. Lynch was a 'numbers guy' who understood the limitations of numbers. And through daily practice, I’m also trying to do that. By the way, here are some … [Read more...]
You May Want to ‘Alt-Ctrl-Del’ These Stocks from Your Portfolio
Posted on December 1, 2011 // 13 Comments
Before the credit crisis struck in 2008, corporate bankruptcy was the last thing on investors’ minds. It was easy for companies to raise cash at will. However, over the past three years, times have changed considerably. The number of companies announcing downward revisions to their future growth estimates has increased. Those that are seeing rising pressure on their balance sheets can also be found in plenty. This means that out-of-favour … [Read more...]
Launching…Safal Niveshak StockTalk
Posted on November 30, 2011 // 6 Comments
Ever since I launched the Safal Niveshak movement in July 2011, I’ve received innumerable requests from readers for my views on specific stocks. Someone asked, “I hold 50 shares of Tata Motors. What should I do?” And then, someone else wanted to know, “I want to buy shares of Coal India. Should I buy or wait?” I’ve resisted giving my views so far, but have now found an alternative to help you, my dear reader. Here’s … [Read more...]
Who Else Wants to Get Rich?
Posted on November 29, 2011 // Leave a Comment
“No one wants to die. Even people who want to go to heaven don't want to die to get there…your time is limited, so don't waste it living someone else's life. Don't be trapped by dogma — which is living with the results of other people's thinking. Don't let the noise of others' opinions drown out your own inner voice. And most important, have the courage to follow your heart and intuition. They somehow already know what you truly want to … [Read more...]
