Wealth creation through stocks;

investment in stocks is just one of the many ways to invest your hard earned money that
promise potentially the highest returns especially in the long term provided you have
selected the right stocks in portfolio. Avoid gambling in stock market-there are no short
cuts in stock market to create wealth. In the stock market i have seen more than 95%
traders buy stocks at their highest price( Positions are usually created for day trading
following trend without putting an appropriate stop loss) and then they lose money which
is shared by less than 5% investors. Traders usually buy stocks at higher price since at
this point of time there is a lot of news and rumours in circulation so they jump on to buy
the stocks speculating some quick bucks and subsequently lose money. So it means we
are better off not reacting to daily investment news and other minor events pertaining to
stock market as it may distract our investments from achieving financial goals. What i
mean to say is that be an investor and create wealth,on the other hand gambling and using
market like a casino can bring you only frustration and can easily put your investments in
jeopardy. For an investor having realistic goals can use stock market as an easiest
instrument for creating wealth and to get rich by keeping three things in mind
1)be careful in choosing stocks on the basis of their fundamentals
2) timing,that is time to enter and to make an exit once the stock is bought and
3) patience- ignore minor day today fluctuations. Being an investor requires a lot of
knowledge about stocks analysis without witch stock market can prove extremely
dangerous and can put your financial destiny on stake by shattering all your dreams and
financial goals. How to choose a right stock? In a stock market like ours with huge
number of listed companies, its not very difficult to find out good stocks but real problem
lies in picking up a right stock which has a potential to grow year on year continuously
with huge amount of consistency. Before investing in stocks we must check out the
sectors which will contribute immensely and can prove future engines of growth and also
the sectors which will participate substantially in tremendously growing indian economy.
At present top sectors where there is potential of huge future growth and where investors
can put their hard earned money for incredible gains can be
1) oil and gas
2) mining
3)banking and financial
4) auto and
5) information & technology
in our quest to have a right stock in our portfolio we can approach by way of finding the
companies which pay hefty dividend consistently irrespective of market conditions and
the stock movements eg if the the company pays dividend in a bad year then you can
assume with surety that you will get dividends without interruption in future. Ideally we
must look for those companies which along with paying passive income( Dividends) are
also the good growth stories usually the established blue chip companies which promises
even if you are not earning much in form of dividends you will still enjoy the fruitful
growth in the stock. To an intelligent investor the essence of portfolio management is
management of risk and not the management of returns. Before investing in stocks
investors must ask themselves weather they are buying a stock for short term or for pure
investment reasons ie long term perspective and the stocks must be selected accordingly.

Usually the stocks chosen with short term perspective normally leave no room for
investors to buy them on dips and law of averaging also does not work here due to a short
time frame. So investors should keep in mind only the targets without forgetting support
levels as such stocks when once start correcting they hardly recover again. Its better to
exit such counters the moment you see the signs of fatigue or weakness creeping up in the
counter. In my personal experience when a stock trades with high volumes and with high
volatility at higher price levels without any conclusive upside gives first visible signs of
weakness. This is a crucial level when institutional investors make an easy exit in a
planned way as at this point in time there is lot of positive news in circulation and retail
investors buying interest is at its peak in anticipation to grab some quick bucks. This is
the time when retailers land themselves in trouble as the strategic hni or institutional
investors those who had possess the sock at much lower level.
........................................................................................
I`m elated to know that someone realised the urgency to transform himself to be an
informed trader. In fact, whatever our mind conceives and believes is what we achieve
practically in real life. Here are some of the books that you can go through to pursue your
efforts to be a learned in-formed trader.
1)Japanese Candlestick Charting Techniques by Steve Nison.
(Newbies can also visit yourtradingcoachdotcom for an easy explained video series on
Candlestick Charts).
2)Elliot wave principle by A J Frost and Robert Pretcher.
"Elliott Wave Course Module" on utube may be extremely helpfull in learning Elliot and
correctly understanding wave count.
3)Technical Analysis of Financial Markets by John Murphy.
4)Technical Analysis of Stock Trends by Robert Edward.
5)You can download "Technical Analysis Module", a PDF copy of NCFM NSE`s
Certification in Financial Markets.
Beginners might also find a series of videos at informedtradesdotcom, explaining
technical analysis extremely useful.
Investors in pursuit of knowledge can immensely gain from the books such as,
1)The Intelligent Investor By Benjamin Graham.
2)The 10X Rule by Grant Cardon.
3)Rich Dad Poor Dad by Robert Kiyosaki.
4)The Little Book That Beats the Market by Joel Greenblatt.

------------------------------------------------------------------------------------------THANKS TECHIEBUD FOR A AMAZING POST FOR YOUR FRIEND;

Cambridge Technology Enterprises

techiebud
: 1st Jan, 2015 - 17:32
King of MMB...Remember Valine Sir...? I crowned you with this title a couple of weeks
back... You deserve this title indeed. Or rather you should be crowned as the King of this
Stock Market Fraternity. Since the day I landed here in MMB for the first time in Sept
2014, I discovered you, and your bagful of intraday calls every morning. Though I have
very little funds to invest/trade, I saw how your calls met their targets, and how you
proved your worth. It seems like you perform a running commentary during the market
hrs. One morning, I was shocked to see your profile RF-ed by the moderating team. I
couldn`t reason out how cud the Forum mods RF a person of your stature. Then came an
even more ugly shock... I read the message posted by your children, that u hv landed in a
medical emergency. I wondered how God can be so unkind to a noble person like u. All I
could do was pray to Almighty for your quick recovery. And yes... I was proved right.
You are back, and with full vigour... and rocking too... :)) BTW Happy New Year 2015
Sir.... Wish this New Year shower you with bounties of joy, happiness, prosperity, success
and wealth........ Arpan @ Kolkata ...