Stocks and shares investments(pic-pexels)
Ravi Speaks:
Brief:
This article explores the pros and cons of investing in the stock market through a personal experience. The author shares his own journey of investing in stocks and discusses the benefits of potentially high returns, diversification, and ease of access. However, he also highlights the risks of volatility, potential losses, and the need for knowledge and research. Ultimately, the author concludes that while the stock market can be an excellent investment opportunity, it’s important to approach it with caution and a well-informed strategy.
In the mid-1980s, I was working as a medical representative in Ludhiana when the Indian share market experienced a boom. A new stock exchange had opened near “Ghanta-Ghar” in the city’s heart.
I became interested in the market and invested a small amount in speculative trading to learn the basics.
One of my colleagues had resigned from the same job and become a share broker at the Ludhiana Stock Exchange. I saw many pharmaceutical industry professionals visiting the share market after finishing their fieldwork. Only senior reps who had become brokers there to earn a living could afford to do so. I visited my senior colleague’s office with another colleague and expressed my desire to invest in the market. To my surprise, I discovered some shares had been purchased in my name from trading that day. This sudden purchase of 100 shares of one of the most promising auto companies was an example of speculative trading.
How You Feel While Trading for yourself:
The stockbroker confirmed I could sell those shares the following day if their value had risen. I did so and earned a good profit in the thousands. This small gain encouraged me to continue with speculative trading. However, within a few weeks, some shares I purchased went down significantly, causing a significant dip in my investment. Some shares never improved, and I had to burn those share papers a few years later. I lost a reasonable amount in the market during the 1987 crash, which made me decide to stop playing the speculative game.
Have a smart ‘watch’ when the market is effervescent:
I kept a cautious eye on the stock’s movement after that and invested only in new equities entering the market with a face value of Rs. 10 per share. Trading for yourself is an emotional process, and your feelings follow the market forecast for the shares you have invested in. If the market responds differently than your forecast, you feel apprehensive even if you have gained some profit in a short period in the speculative market. However, if rates increase, your desire for further involvement increases naturally, and you keep adding shares to your portfolio.
People invested in the low phases of COVID-19:
The market scenario has developed since the 1987 crash. Direct participation has gone down by almost 5% as per reports published, and mutual funds and insurance companies dominate stock market activity. In those days, new IPOs would get oversubscribed manifold, and the allocation used to be in the proportionate ratio. Now, however, direct participation is limited. Despite COVID-19, the Indian market has seen improvement as of September 3, 2021, with the Sensex at 57338.21 and Nifty Bank at 36574.30. This was possible only because investors invested even in the low phases of the COVID-19 consistently and shares being already at the lower ebb had only to gain an upsurge at that point in time.Hence the improvement in indices during that period seen.
Present day scenario as on 1st May’2023
As of May 1st, 2023, the stock market has been experiencing a period of volatility, with the major indices fluctuating daily. The S&P 500 index, which represents the largest 500 companies in the US, has been hovering around the 4,200 level, while the Dow Jones Industrial Average has been trading near the 35,000 level.
As of May 1st, 2023, we have the current update on the Indian share market. The SENSEX index is currently at 59,127.78 points, up by 198.20 points or 0.34% from the previous day’s close. The Nifty 50 index is at 17,665.90 points, up by 44.95 points or 0.26%. The market seems to be positive today, with most sectors trading in the green. However, it’s important to note that the stock market is subject to volatility and fluctuations, and these indices can change rapidly based on a variety of economic and political factors.
Some of the major trends that have been affecting the market include the ongoing impact of the COVID-19 pandemic, rising inflation concerns, and shifts in government policies. Investors have been closely monitoring the progress of various tech companies, with many of these stocks experiencing significant swings in value over the past few months.
Interesting present phase of the stocks and share market:
Overall, it’s an interesting time for the stock market, and there are certainly plenty of factors at play that could affect the future direction of the market. Investors should always do their own research and consult with financial professionals before making any investment decisions.
Investing in the share market, banking, or mutual funds all have their advantages and disadvantages. It’s up to the individual to determine which option is best for them based on their financial goals, risk tolerance, and investment knowledge.
Investing in the share market can give higher returns but with a risk factor:
Investing in the share market might offer higher returns than other investment options, but it also involves a higher level of risk. The stock market is subject to fluctuations, and it’s possible to lose money if investments are not made wisely.
Investing in banking or mutual funds can offer a more stable and predictable return on investment, but the returns may be lower than what is possible in the stock market.
Ultimately, it’s important to do your research and seek the advice of a financial advisor before making any investment decisions. It’s also important to have a diversified investment portfolio that includes a mix of different investments to mitigate risk.
Which is the segment where the present youth prefer investing their earnings?
The investment preferences of the present youth can vary depending on factors such as their age, financial goals, risk tolerance, and knowledge of different investment options. However, some segments where the youth invest their earnings are the stock market, cryptocurrency, real estate, and mutual funds. The choice of investment segment ultimately depends on the individual’s financial situation and investment goals.