Stock market a circus of subjects

Stock market; money making machine or system developed for betting in suits and ties or giving hope to retail investor silver lining hope to make money??  I would say rather all of this. People come with hope to make millions or becoming next Warren Buffet, wolf of Wall Street (Jordan Belfort), Rakesh Jhunjhunwala , Peter Lynch, Jesse Livermore and Ramesh Dimani. I do worship them cause of their ability to understand the things beyond market and grow on their consensus with solid research and analysis techniques developed on their own and practicing it in and day out. They are all ordinary men like us dreaming big to make a footprint in their passion which they have righteously done it and continuing. People stepping in stock market need to first develop a sense of their own (self awareness) then align it with different school of thoughts for making fortune in this field. There is investing and trading. Both are poles apart yet with same motto of making fortune.

Stock market is a capsule where if you grow passion for it you live eat sleep in it. You would spend hours researching interesting topics after topics. Then arms of clock won’t tell you what to do. Except if you are a trader then we have to be ready for morning calls. Investing is a different school of thought which is more righteously and peaceful. Cause as rightly quoted by Peter Lynch “a share is not a lottery ticket it’s a part of ownership of a business”. Investing is becoming the owner and growing the business and that even to tax free above one year. Buying stock when someone on media instruments recommend so and buying it is the worst thing a person can do in the markets. “If they were so expert then would be buying stocks rather selling advice” quoted by Norman Ralph. People should understand that market gives us the prices of the business without or with many factors actually factored or discounted by the market. CMP is just a noise in the market. As Philip fisher rightly said and would I like to quote “market is filled with people who the price of everything but value of nothing”. Stock market is a window from which you are looking into how things work around the globe.

The person investing needs to have nick or sense of observation around him. Looking at buying habits, products, frequency, importance, reusing the product over & over and recommending it to others. Look for business around yourself and try getting first hand info about the company and try establishing contact with other users and dealers. Try understanding nut and bolt of the major factors that affect the company. Then try evaluating the worth of the company and try matching it with the CMP. If you find worth it you are good to own it. Remember simpler it is better it is. For people who have little awareness about business they can diversify investing in different styles like asset play or turnaround companies to name few. Best part of investing is you have time on your side. Taking time of knowing different bolts of the companies takes times and in investing we can don’t have take immediate decision. As rightly said by Warren buffet “Stock is designed in a way where wealth is transferred from impatient to patient”. Investing is like owning a bouquet of business and show is run by the efficient management.

Both the schools of thought are different. Trading is looking to play with the standard deviation while investing is ignoring the volatility and sticking with company.

Great thing about legends in the market is that they had their own philosophies, reading about occurring, ability to foresee future trends and judging the possible bottom or we the point of maximum pessimism. Rightly said by Warren Buffet “use optimism to sell and pessimism to buy”.