In spite of dad benig involved in the stock market, I was always the clueless one when it came to stocks and trading. Sibling had her degree in finance, so they both gelled well when it came to finance talk.
All that mattered to me, when it came to money, was I have enough and the belief that I shall always have. So when I realized the funda of tax saving from my dad last year, I was enthralled by the idea. I started investing in funds and bonds and stuff. All this while, he is the one who has been investing for me in stocks. Now, I decided I wanna do it OMO!
So, I already have a demat account (I still do not know some finer nuances of the terminology though) and I logged in..made sense of the site within a couple of hours...irked the customer service reps with my silly doubts (they were good, blimey!) and finally, I started investing (really, that's a wrong term) in stocks.
I assigned a limit to the moolah I wanna spend in this trial and error phase. Well, I read the tips and tricks from the website and banks and ofcourse share brokers, and started buying stocks. Knowing that the healthcare and pharma sectors are doing well, a large chunk of my portfolio belongs to that sector.
So, I buy XYZ pharma...the CEO resigns the other day, and the share price swivels to the bottom. Dad says he knew about the move, had I asked him, he could have stopped me! So...umm..I stand at a loss..
Then, I bought this "STRONG RECOMMENDATION" from the demat account expert who writes on the bank's site. He predicted that I should hold on the stock for atleast 3 months..and my stock would reach a target price, which would give me a profit of minimum 20%. So, I bought the stock. I cannot predict the reason why, but since the day I have bought them, its been over 5 months now, the price is just going down and down! So, yes, loss!!
Then, (oh, i do not quit easily, do I?), the sibling had bought some 3000 shares of some IT company since she had received a "strong recommendation" (I am telling you they have a way with using "strong") on my behalf. These shares today stand at a loss of Rs. 6000, and the current market value is 0.3 paise. I keep them on "Sell" list everyday at a limit price, hoping the rate would go up by a paise or two...but they are just not getting outta of my portfolio. I know its a loss anyhow, but damn it, least gimme a better loss. Dad says they will get delisted very soon...so I should act, before making the loss as 100%!
Oh, so I invested in some IPO...I got some nice share of stock. Dad convinced me the price of such stocks tend to rise the day they go on market. And, oh yes, they have just hit air pockets!!
My portfolio reads all RED, except for the GOLD that I bought (oh, I do make some smart moves!). But this indeed is not a good start.
I am not too keen to label this "investmenting" in stock as a good thing. I believe invest is a dicey term to be used since one really needs to wait for a long time (in my case more than 6 months can also lead to no good profits!).
I can play poker, bet on horses, get involved in some black money trading, oh forex transfers, and lot more is there that I can do to get some quick buck (of course, its all dependent on my fortune though), but this thing has somehow caught my attention. I like making sense out of the senseless jargons that these experts use. They way they label things as "STRONG" buy, sell, or hold on..it really gives a life to the dead thing. I wonder how much more fun it would have been had the stocks not become paperless. I remember some lockers at home were filled with these papers, and I always asked dad why keep them in lockers. And he used to be like, oh you do not know their worth!
Chances are, I still do not. But may be this is what they call, getting addicted to the thing. Believe me, sensex is full of sense, and it gives me a sense of maturity that yeah am really thinking about the future!
Till then, happy trading!