Before taking the plunge into the stock market, learn the fundamentals or else could burn your fingers, warn experts.
Selection of scrips is important, says K. Kuruvilla, a stock broker and an investor. “Wrong selection of scrips could end up in a loss. The investor should have the capacity to hold on. Long-term investments are generally gainful. Have patience to succeed in stock market,” he says.
Lissy Varghese, an investment advisor and investor, says that Keralite investors lack impulse to recognise the market situation to book loss or gain. “The investor who is not ready to book a small loss may incur more losses by holding the scrip. Losses may follow those who are guided by blind belief. A gambling sense may not be gainful. Good investors analyse companies professionally.”
Buying beyond capacity is disastrous, advises Suresh Kamath, another financial advisor and investor. “Speculation may cause loss; don’t borrow money for investing in stocks,” are his advices to prospective investors.
Rajesh, who works for an insurance company, is a young investor who has gained in the share market. “I have attended sessions on share market and have a fair knowledge of the operations in the market. With such a background, I can gauge the sentiments in the market; I invest after proper thought,” he says.
Titty Jacob, a software engineer, who has been investing in stock market for several years, feels that professional advice is necessary. “I lost money in initial years; but I am making gains now because of improved awareness on the trends in the market; there are undercurrents and the investor should know when to sell,” he says.
Martin, a Kochi-based contractor, has gained by investing carefully. “You should be guided by your own brain and not others. Invest in various sectors. There are hundreds of companies in which you can invest after proper analysis. Be ready for medium to long-term investment. Trade with own cash”. These are his mantras for success.
Denny John, an investment advisor, felt that gambling is dangerous in the stock market. C.S.Warrier, another investor and advisor, said loss is incurred by those who do not follow the fundamentals. Youngsters in general are not keen on investing in stock market, according to him.