Saturday, February 27, 2010

Be an informed investor in an informed world

Indian investor many time need easy way to become rich and small basic investigation is also not done by them to check on the company they invest. While NSE & BSE website give them basic details about the company and many brokering and media website give additional insight and data which can be used effective to understand a company better like Money control, Reuters & Bloomberg gives good free service for managing online portfolio service with news update and results of the company analyzed. I don’t know how many make use of this kind of service and there are many more website site above given is a sample.



http://secure.in.com/active18/sso/portfolio_signup.php  Money control

http://portfolio.in.reuters.com/IN/public/index.asp  Reuters

https://software.bloomberg.com/account/access.html  Bloomberg

Today high competition has increased service of brokering company each one has to better others to show they care for their investor as brokerage is now so low that a company can’t make a difference so each one has improve their research report and accessible database on their website http://content.icicidirect.com/research/research.asp  and investor should take time to read this report. Update themselves on the companies they invest on quarterly basis.

How many check company website and download their annual balance sheet, most of the company website has a page called “Investor Relations” where many data an investor would like on a company is available.

Points to note: Many look at website to gets tips or trading ideas but if someone can be so prefect then why would he/she share his/her ideas. Then all these tipsters or technical analyst or fundamental analyst should be rich people but why is it not so, as legendary Warren Buffet has said, “Wall Street is the only place that people ride to in a Rolls Royce to get advice from those who take the subway.” Investor has to do more homework to make their investment work, people get craze stock which hit’s upper freeze on regular basis, do top 200 market cap companies hit 20% circuit? on very rare occasion; Investor should understand margin of safety while investing in a stock or sector many expose themselves more to single stock and sector and it happens so that a sector or stock where retail interest is high doesn’t perform for few years now many are struck in Realty sector with over exposure.



The greater fool theory is the belief held by one who makes a questionable investment, with the assumption that they will be able to sell it later to "a bigger fool"; in other words, buying something not because you believe that it is worth the price, but rather because you believe that you will be able to sell it to someone else for an even higher price.



SEBI bans 16 entities from Market for 'synchronized trades'

SEBI has started investigations against 16 people for alleged synchronized trading and banned them from trading in the securities market. (Synchronized trades are ones where buy and sell orders are entered within a minute of each other.)

The notice said that these people had picked up stocks with low daily volume or not very liquid stocks and injected liquidity artificially by their trading. http://www.business-standard.com/india/news/sebi-bans-16-entitiesmarket-for-/synchronised-trades//386514/

2 comments:

Anonymous said...

Anna,
You have said that many have got trapped in realty sector rally. Please post a separate view on this, since it would be very useful to investors.
Regards
Regards

rakesh birewar said...

dear sir,

u r always guide yes, i daily read ur messages, u r against F/o but i always watch people and also me always interested in f/o. now a days i realise traders not making money in mkt. there is always fear.

u gives good information to us , it is very useful for us...thanks to guide always...it helps us to become a nice investor.

thanks...