INSUBCONTINENT EXCLUSIVE:
One has to die to see heaven; in other words one needs to work hard and go through the process.
It is very difficult to achieve success just
If you have the intelligence to copy someone correctly, then you would also have the intelligence to pave your own path.
So the question I
ask is, why copy
The problem in copying is that if you ever copy or clone a big or so-called successful investor, then two most important
It is important to understand the insights of the investor that led to the purchase, and the strategy to handle favourable and, more
importantly, unfavourable situations
Remember, in the entire career of a successful investor, there would be only a handful of stocks out of his/her hundreds, which would have
really multiplied and made that investor successful
Majority of the stocks would have given average returns, or no return, or even losses.
So, what if you have cloned only those stocks which
did not fare well
There is a possibility that the investor you follows is giving out biased opinions
Therefore, it is necessary to first understand what were the insights behind buying those shares, and if using your own intelligence, you
get convinced about those insights
Only then should you chart your own strategy
Strategy is more important than insightsThere are many other parameters which become part of an investment strategy: What percentage of
this particular share, and looking at his successful track record, if you invest Rs 25 of your Rs 100 in this particular stock, then you are
If that share falls 30 per cent, then imagine how much you would lose and how much the investor your follow would lose Your loss would be a
You also need to understand the type of purchase
Is it an average purchase or fresh purchase If the investor bought a stock previously at a lower price and there is a repurchase, then his
average price would be lower compared with a purchase that is entirely new
Here, he has a cushion when that stock falls, but yours being a new purchase, you will be losing from the very first fall
Euphoric market often changes all these definitions.
Nowadays, short-term is BTST or buy today sell tomorrow, and long-term is next two
One person had approached me once to recommend a stock for the long term
I asked him, what is his definition of long term, and his answer was six to nine months
his/her insight about a particular upcoming event
The investor might feel if a particular event occurs after a few months and it goes a certain way, he would hold the stock for a longer
period; if not, he might sell it
Therefore, it is necessary for you to understand his strategy well.
Sometimes an investor might buy a stock for the next five to 10 years,
but that does not mean he cannot change his view on it midway through
will stay invested.
Sometimes, a particular situation in a company or in the economy changes suddenly and an investor finds better
opportunity somewhere else
If at this point, he is tired of the way one of his investments is performing, he might exit that
If this is the case, then certainly s/he will not inform you before exiting the stock
The same applies before one buys a stock
One is not going to inform you that he is going to buy a stock tomorrow
is tested only in a bear market
If anyone pushes a train in the direction it is moving, other people might have an impression that he is moving the train
Secondly, the market spares no one
Every investor in the stock market goes wrong at some point of time
The only thing you need to understand and learn is the ratio between making a profit when one is right and making losses when one is wrong
Ideally, a successful investor would make a lot of money when he is right and lose very little when he is wrong
You always have to use your own wisdom and discretion while investing
This wisdom comes from you own experience of failures
Remember, we learn to walk only by falling!
