I have registered with www.icicidirect.com for stock trading online. I would like to know whether online trading in stocks is perfect or safe with icici? Will be honest in the dealings with the customers? Are there any other company which do the job honestly. I`m a small investor and would like my money to be safe and grow. Please advise.
RE:Wisdom
by arbind on Mar 17, 2007 05:32 AM Permalink
It is not so simple. It is not for nothing that some companies have BPS greater than 5. Some companies it is a bubble. But for some companies this high BPS is based on high expected growth in the future. So if there is a possibility that the company will grow even twice its size, then automatically its BPS (at the price it was bought) will become half and it will be an worthwhile investment. So there is no fixed "rule-of-thumb" that sell if BPS >= 5
I think there is and will be diversified views on when one have to enter and exit from teh market. Timing the market works for some and Time in the market for someothers. I think its better to view them seperately afterall both approaches have their advantages and disadvantages...
I often wonder why Timming the market works for Mutual Fund houses/managers and not for Individual Investor???????????? as often the fund managers say 'It is not timing the market, but, time in the market that matters ' ...but they time the fund of a scheme in a different way
'It is not timing the market, but, time in the market that matters.' -- With due respect to the gentlemen who wrote this, I ask was he 100% right? Agreed you would give me the name of Mr. Buffet but we cannot forget even his guru Mr. Graham had failed on many occasions. Now did not buffet time his entry into Gillete or Coke, the companies which are responsible for him to be where he is now. Yes he stayed there for a long time, but he entered into them only when he got them dead cheap. I would say its a bad idea to enter into a market when you know the markets are showing signs of bubble and it would be outwardly ridiculous to stay in a company for a decade which just manage to perform below average. Its a combination of both time to enter the market and time to leave the market which will make anyone a real clever investor.
'How long can I remain invested before I need the money back?' -- yes it an important question. But you are missing one more thing. The company where I am investing, is it worthy? The company where my money goes should be able to give me above average returns, with this I mean to say atleast above the Bank deposit rates with inflation adjusted. If the company is not able to give me the returns for the risk I take why be in it.
"Generally an investment period of 5 years is recommended," - This is generalization. A pharma company takes on an average 5-7 years to develop a product so when you are advocating long term holding patterns, it contradicts your above statements.
"If you had invested at the peak of IT boom in the year 2000 you could have still made a 16.5% returns after 5 years, i.e. year 2005. If you had continued to hold your investment till the end of 2006 you would have made 134% returns! "--- Thats cool, but there are companies like Pentamedia which were trading in 1000s today its a penny stock. At one time (1998-00) investment gurus where shouting to buy crappy IT stocks on NYSE .. today there are no traces of them neither the gurus nor the stocks. So let it be IT boom or Bio boom, only those companies which have stong fundaments, stong consumer base, strong R&D base, Strong investor relationships, strong future focus will survive in long term.
Dear Mr. Bhagavat, it was a nice article but I felt there were many things generalized so I tried to put in my words to have to have a good conversation.
Please be adviced that there are 1000 of atricles published on management studies simply as economics is a dynamic phenomonen and not a static one. Its always easy to say what happened in the past, predicting becomes a hercules task. Dynamics nature of the economics never allow one to get stagnant and so my advice will be enter when u think you get the scrip or the mutual fund is cheap, leave when you think the company is not performing (You have access to the consolidated balance sheets to see the companies performance).
RE:some contradictions...
by nitin prabhakar raut on Mar 17, 2007 11:36 AM Permalink
I am agree with u r views. My opinion is that we have to find dead cheap stock which have capacity to earn huge profit we can learn from India cement, pantaloon, Dynamatics etc.
Don't listen to the crap of long term investment. If the market goes for a longish bear phase you will loose real money. Sensex might have increased by 120 times in 25 years. but how many stocks in the original sensex is still there? More people have lost money in stocks over long term than gained. What about 1000s of companies which have closed down or vanished? Smart people sell when the market turns bearish. Others see their hard earned money go down the drains.
RE:In real long term every investment becomes zero
by anjul manchanda on Mar 16, 2007 09:40 PM Permalink
right. best is to book profits as and when applicable without thinking about them going to higher levels. Keep the fundamentals in mind and book out
Dont waste your time to time the market. It is best to stay invested for a long term. The returns have been positive and much better than inflation most of the times. But invest only the money which is spare. Young Indians surely have some spare money, and they are going to be the rulers. This post is basically for them. But older people should have a portfolio more towards fixed return instruments. The reasons are pretty simple. Young people have much more spare money as compared to the older people and moreover the young turks can easily recover incase they lose the money, which might not be the case with the older people.
RE:Invest regularly, the best option to get maximum returns.
by Vineet rai on Mar 16, 2007 06:53 PM Permalink
Good for new comers and also lesson for short term investors.
RE:RE:Invest regularly, the best option to get maximum returns.
by Rajesh S on Mar 16, 2007 07:38 PM Permalink
Check out the posts on "Mutual Funds" in ICHP Forum. Will be helpful in knowing about and planning your mutual fund investments.
RE:RE:RE:Invest regularly, the best option to get maximum returns.
by Nitin Srivastava on Mar 16, 2007 10:20 PM Permalink
I am agree that it is good generalized article.But i would also like to add that the gain would be depend upon the stocks which have. If you categorize the stocks in two part 1.Which would give you a great return in long term(i.e. 5 year).2.There are some stocks which you can't take for long time since they would have risk to get the loss. So if you are in frontline stocks you can go for long term.But for small or nmiddle cap need to study before invested for long term.Otherwise you can book profit and quit.
