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Equity Investments: Hot Stocks

 
Started by : Sukumar Maity, Sr. Associate, IDBI Bank   11 06 2008 13:00:26 +0000
Industry : Equity Research/AnalyticsFunctional Area : India(Markets)
Activity:  19 views;  last activity : 07 06 2010 20:18:09 +0000

Lets pour out few techniques on how to lose your money by investing in stock, so that beginner investors don't make such mistakes while investing in stocks.

 
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1 2 3 4 5
1 Hot Stock Tip
2 Big company will make big money
3 Buying stocks that have reached new lows
4 Zero reseach on company
5 Ignore diversification

Hot Stock Tip

idea posted by Pravin Patil Associate, Kotak Mahindra

We all have experienced people giving stock Hot stock tip now and then. It happens anywhere at anytime and without provocation. Some who you know might tell that he has bought a stock that is going to double in few days. Making money in the stock market is not easy.

When someone to convince you it is, think before you invest of you really don't want to lose money.There is nothing called HOT STOCK which will double in few days.

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by Ashutosh , Freelancer, Ashutosh Rai & Co.  | 01 10 2010 20:34:38 +0000

Theoretically, never follow the crowd. meaning that if every one is buying, then you should sell and get out and buy when every one is selling. This is easily said then done.

If your stock is hot and in great demand, consider if it is right to get out of it? Also, when every one says that stock markets are bad, then sit down and look for a possible good quality stock which is being sold at heavy discount.

Stay away from tips as they may burn not just your fingers but your entire investment.

Regards,

Ashutosh Rai 

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Big company will make big money

idea posted by Sukumar Maity Sr. Associate, IDBI Bank

Big companies go out of business as small companies.All big companies are gone bankruptcy recently. Investing in a large company doesn't mean that its safe and secure as they make big money.Its not always they make big money.

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Buying stocks that have reached new lows

idea posted by Babu Kandasamy Sr. Associate, Yes Bank
Buying those stock which have reached new lows in the hope that it will recover. But its not always that way, stocks goes low because there are certain reasons and stocks that reach lower will reach new low again. Think before investing if you want your stock price to go low or high.
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Zero reseach on company

idea posted by Gaurav Bhattacharya Sr. Associate, HDFC Bank

Refuse to do any research on company in which you going to inves.By doing this you will surely lose a lot of money in stock. If you are lucky you might gain few, but thats very very rare.

If you don't want to lose money, do a research first before you invest. Look at their single quote, balance sheet, earnings estimate.

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Ignore diversification

idea posted by Sudhir Shirke Associate,bulls Research

Invest in only one stock market sector as it is easier to track. Following one is very easy right.Then I bet you will surely lose your money.

Try diversifing your investment portfolio which will reduce the risk of investment only if don't want to lose your money...

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by Ashutosh , Freelancer, Ashutosh Rai & Co.  | 01 10 2010 20:26:13 +0000

If you ignore diversification, then you keep all your eggs in the same basket. So the risk is very high.

There is a very small possibility that you may make extra ordinary returns, but most likely to loose most of the investment if not all.

A reasonably diversified portfolio of quality stock is highly likely to give a decent return.

Regards,

Ashutosh Rai

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