ALWAYS – INVEST IN WHAT YOU KNOW & WHAT YOU CAN UNDERSTAND. DEVELOP CURIOSITY AS A TRAIT
This is a financial blog written by myself – Suman Adithya Rao, with the intent to bring together people who love stocks & its underlying psychology. Please note, this website is not an advisory service giving Buy / Sell calls – there are several mediums to address them. This is totally aimed at being a learning platform to help fellow traders & investors, to have a clear understanding of the ‘stock markets in general’ to start with & slowly building upon ones own individual skill sets to gradually analyse a ‘stock’ or an ‘industry sector’ by applying various perspectives with a better rationale.
Remember, do not seek to see expert opinions of stock markets here – like Mr.Buffet says, anybody who gets their trade right, is only good at having a presumptuous judgement at that moment of trade. Stock markets are extremely dynamic in nature so its indeed it’s pure play of wisdom at the right place, at the right time.
Understanding of stock markets generally comes with experience. Every trade entered into stock market has a 50:50 probability of winning i.e. It can either go up or go down, so you can either win or loose depending on weather you are speculating bullish trend or a bearish trend. So it is this 50:50 probability is what lures most people to stock market, as in no other money yielding business your winning probability starts with 50%. For most people this is exactly what creates an illusion of knowledge. Now, if you’d say 50% probability is enough – on a lighter note – even if i were to ask a monkey to trade, it stands a 50:50 chance of getting the trade right.
To stand real chance of hitting a winning trade, with consistent effort one must take winning probability to 60:40 (60% winning) & gradually aim towards making it 70:30 (70% winning). It is to get to this level of stock market wisdom, one needs support of fundamental analysis, technical analysis, information from books & other informative mediums.
Wisdom is the king, while winning is only a probability – one can only get a winning probability right by applying certain rationale which are on the lines of strong fundamentals & technicals analysis. Out of many ways to seek wisdom, you can nurture your sense of understanding only better by reading books & other mediums of knowledge platforms such as this. ‘Developing a sense of curiosity in mind’ as a trait – is only a silver lining in development of one’s nature of mind to gain wisdom.
Curiosity & its learning phases:
Curiosity must lead to – Thoughts, Thoughts when provoked must lead to – Knowledge Seeking. Knowledge Seeking when emphasised must lead to Questions. Questions should ultimately lead to an Understanding. Remember as in life, all we can seek is understanding & not an answers. There are no answers to any questions, its only perspectives / opinions.
Knowledge that is shared in industry wise – Sectorial analysis, are from various reliable information sources. Please look for references section below every article, they explicitly mention all knowledge sources from where information presented about the matter is gathered. And yes, i have relied on my own relative experience of stock markets with regards to most information presented. I have followed rules by strictly quoting facts as facts & opinion as opinion, please read them in the same order & context to get the best of M0ney.in.
A whole hearted thank you to all my readers from ‘The Club Sharewala’ days (year,2008), for all your love, inspiring acknowledgements for articles written & being appreciative of my literal thinking – its these things which transpired into putting in my thoughts on to this blog. As always, interactions from you always keeps me motivated to apply myself in best of ways – my mail id – [email protected] . (Remember, If there is a delay in my response, that only means i haven’t read your mail). Happy Investing / Trading! Believe in understanding, while luck follows its own true course as it is.
Cheers, Suman Adithya Rao.
Management graduate in ‘Entrepreneurship & Small Business Management’
SEBI Certified Examination – ‘NISM – Series -XV: Research Analyst’ (Registration Number:NISM-2018000083418)