Written By Awdhesh Nagar
Buoyancy in equity markets bring lot of new investors. We now see maximum demat accounts being opened and stock tips are being received from social media and messages. If this happens it is time to be cautious.
Equity market investing is a high skilled job and can’t be done by person not having right experience and
education background. Fund houses and PMS service providers employ persons having best of financial education and experience in business and equity research. If one gets some success in a bull market that does not make him a stock picker. Actual test is in bad market when fund manager is able to protect
the capital.
Next time you get tip on stock and inclined to invest do ask the personon what business company runs and what are good business reasons for investing in stocks. Business reasons can be like growth prospect, profitability, current balance sheet and financial situation etc. If you have satisfactory answer to this do your own evaluation before investing.
Never buy due to low price of share or penny stock without knowing the business. Any surge in penny stock can be a trap and most investor fall in to this due to hot tips in circulation. Penny stock is low priced as it has bad business. Its business does not improve due to market growth hence always invest in a good business even if value is high. Bull market is good time to clean portfolio so do exit from bad stocks or business not having good prospects. Don’t hesitate in cutting losses as one can deploy that capital in a better stock.
About Awdhesh Nagar: Awdhesh Nagar is experienced banking and financeprofessional. He has good knowledge of economics and business-related matters. He currently runs his own organisation by the name ‘finance edger’ which advises more than 300 clients on their personal financial planning. Awdhesh is on mission to improve financial literacy. He considers himself responsible for financial wellbeing of his clients. In past he has worked with organisation like Citigroup, GE, Standard Chartered, SREI at senior level position Awdhesh has also worked for ‘Jaipur Smart City’ project of Government of India’ as Financial Expert. He has handled investment, funding and project finance
portfolio in these organisations. He regularly visits education institutes as guest speaker and provides his views on budget and economic events on media. Awdhesh has done his B.Com(H) from Sri Ram College of Commerce and MBA-Finance from University of Delhi.
