Don`t Trade & Lose Your Valuble Money
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Risk disclosures on derivatives
9 out of 10 individual traders in equity Futures and Options Segment, incurred net losses.
On an average, loss makers registered net trading loss close to ₹50,000.
Over and above the net trading losses incurred, loss makers expended an additional 28% of net trading losses as transaction costs.Those making net trading profits, incurred between 15% to 50% of such profits as transaction cost.
Source: SEBI study dated January 25, 2023 on “Analysis of Profit and Loss of Individual Traders dealing in equity Futures and Options (F&O) Segment”, wherein Aggregate Level findings are based on annual Profit/Loss incurred by individual traders in equity F&O during FY 2021-22.
So don`t trade and Lose your valuble money, understand and experience the power of compounding growth by Investing.
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lots of people pinged me after seeing my portfolio for stock advise.I suggested them do not take stock advice from anyone not even sebi registered indiviuals but nobody seems to listen. go for mutual funds you will get high returns. thats why i only give advice in mutual fund.
This is the wisest post. Please digest the fact that high returns come with high risks.
You need to work towards financial goals and plan accordingly .
>> I got it after my father sold some property but I invested in mfs and got good returns
@arko1983650
I got it after my father sold some property and I invested it in mfs and got good returns.?
thanks for correcting me.my bad i didnt see it.
Any advice to get minimum 12% return in MF
Few things that I learnt in my 4 year market experience:-
1. Look at equity as asset, not just money making machines. This way you'll stay longer and compounding does wonders to you.
2. Non- linearity reigns. Almost all of us have listened to real estate stories. Real estate just like equities gives returns in non-linear fashion. The home we are living in, the land costed 60k back then, now someone in my area bought for 62 lakhs. The transactions over the years went like this:- 3 lakhs, 7 lakhs, 15 lakhs, 20 lakhs, and then 62 lakhs. So see? Equities work in the same fashion. Last 3 years returns are good for everyone. I think in last 20 days:- my MF portfolio jumped by my monthly SIP amount.
3. Cycles. Equities fall. And when they fall, believe me it's tough to see. Theory is not same as experience. I'm yet to see a bear market. Almost all those fin influencers have not seen a bear market. Better follow those who have been in market for atleast 15 years.
4. Increase your day job income. Save 50% at least. Increase income and that way you can save around 60-70%. Do like this for 15-20 years and sit tight.
5. Enjoy life. Because there is only one. The amount of time vs the quantum of money you'll make passively in MFs is huge. Like just buying and sitting for 15 years will make you FI. Time is the most prized asset for humans. One learns this very late in life. Read books, travel and live life.
6. If u want to go for active stocks. Learn learn. In 10 years, it's very difficult to beat market. Again always follow those who are market for > 15 years.
The way I see markets :- markets reflect more of your personality. Whether you are enterprising, fool or wise. Most fools loose money in market and they don't know this. Read the psychology of money by Morgan Housel. Very very good book.
2008 crash: Even the mightiest of all indices, the Sensex fell by a whooping 60% over a long period of around 1.5 f*cking years. Each day of that year, I witnessed my portfolio falling and falling and just falling, nothing else. The smallcap index (which wasn't even born yet) fell by a f*cking 90% with nearly most of the stocks just becoming a dot zero. The companies vanished in thin air, never to be seen again. It took 3 years for the market to recover back, and then only to fall back again ! And finally after 5 years, the revenge of the fallen was accomplished to breakeven point.
One must have the temperament to withstand such a fall.
One more tip for Asset Allocation plan (AAP):
One should not invest in Stocks/Stocks based MFs, if one has just 4Cr net worth (1Cr per head).
One should always invest in risk based assets, if one has more than 4Cr net worth.
my portfolio was also in red in covid times like - 18%
my total portfolio is not in mf .I have stock also but one/two bad picks severely affect my portfolio
My portfolio is diversified by debts instruments also. I also own two properties whose market value is greater than my stock portfolio. But i don't consider it as an salable asset because i stay in it and will continue to stay till i am alive.
taking more risk is not always good. greed is bad see what happened to crypto.
taking measured risk is the right approach.
I will insist people to buy mf as stocks are too volatile.I will give an example I was having very good profits in adani wilmar when it reached 700 thought I will hold it till 1000,but after hinberg adani stocks fell hugely.
experts say you cant time the market, so its nearly impossible to predict the stock growth 100%
Problem is everyone thinks they are the chosen one but stats clearly show otherwise. It's better to just invest in an Index funds. Returns are going to be better than active trading for most.