morning thoughts...
The markets witnessed a panic sell on back of global cues on tuesday and is expected to see some more downside in coming session.
Technically nifty finds support around 7700 levels and bank nifty around 16700 levels.
Last week brought an information deluge for investors. There were countless articles and discussions on which way the US Fed will goand how the markets will react. Now that the Fed has stuck with the status quo, the next theme keeping the financial channels, journals and unfortunately, investors busy is if RBI governor Mr Rajan will go for a rate cut...and what impact it would have on markets.
Easy flow of information was meant to make our lives easy. But as far as investing world is concerned, it has only resulted in confusion. News has become business. The channels need to cover something. The financial journals have to fill pages. Communication has been taken to a different level. The news is not disseminated, but at times created. And if there is any field where consumerism is flourishing like nowhere else, it's the business of news.
In a tech-savvy world where information is transmitted in not even seconds, common man has been flooded with facts, data, and information. Amid all this, real and meaningful knowledge has become a casualty. Add to this the ease of trading. And what you get is a perfect recipe for investing disaster.
Blame the human psychology. If you do not pay attention and fail to act, you feel left behind. All this news and information can fool you into presuming that you are getting knowledge. Thistriggers the action itch. And before you realize, you commit perhaps one of the worst investing mistakes.
One thing that has kept investors from maximizing returns is pre-mature selling on false knowledge triggers.
The economists know no better. What better proof than the state of global economy today? Irrespective of their forewarnings and actual booms and bursts, the stock markets have over time returned more money than any other asset class.
Your returns over time will not depend on the number of stocks you bought. Or the number of trades you made. Or how abreast you were to the latest macro developments. Turn off the financial news channels. Stop listening to every so called expert and economist. Instead, when investing, if you put half your time and energy on long-term trends and on stock selection, you would spare yourself the agony and misery. Not just that - you would have plenty of time to invest more productively.
As history suggests, you can count on madness in global economies and markets. So consider the worst-case scenarios and select stocks that you believe will survive all global crises. Minute-by-minute updates can be helpful when you're looking to buy a good stock in attractive valuation zone. To that extent, news could contribute to wealth creation in the long term. But generally, successful investors avoid the noise.
And as always, diversify your portfolio. While investing in good stocks at right valuations will earn you higher returns, diversification can be the best insurance against ignorance.
So set your focus right and know what to ignore. Some of the best investors and investments go back to a time when there was no internet, no cable, and no live market updates.
Wednesday wealth gains
Buy dlf , bob
Icici 270 ca , sbi 240 ca
Buy nifty and bank nifty
Sell hexaware , upl
Sell crude , buy gold , silver
The markets witnessed a panic sell on back of global cues on tuesday and is expected to see some more downside in coming session.
Technically nifty finds support around 7700 levels and bank nifty around 16700 levels.
Last week brought an information deluge for investors. There were countless articles and discussions on which way the US Fed will goand how the markets will react. Now that the Fed has stuck with the status quo, the next theme keeping the financial channels, journals and unfortunately, investors busy is if RBI governor Mr Rajan will go for a rate cut...and what impact it would have on markets.
Easy flow of information was meant to make our lives easy. But as far as investing world is concerned, it has only resulted in confusion. News has become business. The channels need to cover something. The financial journals have to fill pages. Communication has been taken to a different level. The news is not disseminated, but at times created. And if there is any field where consumerism is flourishing like nowhere else, it's the business of news.
In a tech-savvy world where information is transmitted in not even seconds, common man has been flooded with facts, data, and information. Amid all this, real and meaningful knowledge has become a casualty. Add to this the ease of trading. And what you get is a perfect recipe for investing disaster.
Blame the human psychology. If you do not pay attention and fail to act, you feel left behind. All this news and information can fool you into presuming that you are getting knowledge. Thistriggers the action itch. And before you realize, you commit perhaps one of the worst investing mistakes.
One thing that has kept investors from maximizing returns is pre-mature selling on false knowledge triggers.
The economists know no better. What better proof than the state of global economy today? Irrespective of their forewarnings and actual booms and bursts, the stock markets have over time returned more money than any other asset class.
Your returns over time will not depend on the number of stocks you bought. Or the number of trades you made. Or how abreast you were to the latest macro developments. Turn off the financial news channels. Stop listening to every so called expert and economist. Instead, when investing, if you put half your time and energy on long-term trends and on stock selection, you would spare yourself the agony and misery. Not just that - you would have plenty of time to invest more productively.
As history suggests, you can count on madness in global economies and markets. So consider the worst-case scenarios and select stocks that you believe will survive all global crises. Minute-by-minute updates can be helpful when you're looking to buy a good stock in attractive valuation zone. To that extent, news could contribute to wealth creation in the long term. But generally, successful investors avoid the noise.
And as always, diversify your portfolio. While investing in good stocks at right valuations will earn you higher returns, diversification can be the best insurance against ignorance.
So set your focus right and know what to ignore. Some of the best investors and investments go back to a time when there was no internet, no cable, and no live market updates.
Wednesday wealth gains
Buy dlf , bob
Icici 270 ca , sbi 240 ca
Buy nifty and bank nifty
Sell hexaware , upl
Sell crude , buy gold , silver
