It was my first year of B.M.S (Bachelor of Management Studies), when I was introduced to the stock market. My professor took great efforts in explaining the basics of the market to amateurs like me. Luckily, I connected with a few classmates who had experience and basic knowledge about the stock market. They helped me understand the basics of capital markets. My inquisitiveness kept on increasing day by day and I kept digging more to understand new terms and concepts.
After gaining confidence in my learnings and clarity on few fundamental terms, I decided to participate in the investment activities. I decided to start taking virtual stock market calls, to experiment and identify if I can make some money and avoid losses. This is my first tip to you guys. Trading is like swimming, you have to dive into the water to learn more and in the process try not to kill yourself and keep your head above water. In a few days of keeping myself afloat, my balance sheet looked greener than expected and I decided to use my savings and start investing in the real deal. My neighbour helped me set up a Demat account and a trading account.
Initially I traded very cautiously and bought small quantity of shares at a time. My decisions were largely depended on the tips shared by friends and neighbours. Slowly, I realised that I was not making enough profit and was pre-occupied with college. It wasn’t until my graduation in 2006 when I started re-investing in the markets.
I vividly remember the most awaited IPO of 2008 for Reliance Power. Reliance as a company had a history of being a profit making investment and investors went gaga over this share. But on the day of listing it underperformed and this was my first lesson in the stock market. I regret till date that I did not conduct any research of my own and blindly invested in this IPO as per what the TV analysts quoted and what friends discussed. Stock market can be a lucrative place to earn good money if you are willing to invest time and efforts in learning the tricks of trade. It can also be a money pit if you don’t quickly learn from your mistakes.
Over the years I have gathered extensive knowledge about trading. I am here to share all of that with you guys. I would be glad to answer any and all questions you have about the stock market and investing in general. Remember, when learning something new no question is silly. My plan is to start my next post with a step wise guide to start investing, from how to open a Demat account, to which type of shares to start with and how to do your research. We will also discuss about saving money on brokerage fees and the best options and user friendly websites to choose from. I am mentioning some good links to articles about the basics of the Indian stock market and also some links to open a virtual trading account to get started.