When you hear about people losing or profiting from the stock market you can be rest assured that it is not the result of luck. Rather the matter of fact is the profitable outcome is application of a few simple principles derived from the experiences of millions of investors over countless stock market cycles and the loss is the result of half-baked knowledge. We will discuss on the basics before investing in stocks.

2. Peter Lynch, renowned portfolio investor of the
Magellan Fund from 1977 to 1990, claimed that
everyone has the brainpower to follow the stock
market: “If you can make it through fifth-grade
math, you can do it.”

3. Getting yourself ready with the mind-
set to invest in Stock Market

4. Goals got to
be Longer
If you are looking for a return in next month or quarter
or 6 months, there are other investment options
better suited for such needs. You must truly consider
stock options completely out.
Stock options are better for long term goals.
The growth of your portfolio depends upon three
interdependent factors:
• The capital of you invest
• The amount of net annual earnings on your capital
• The number of years or period of your investment

5. What’s your
RISK?
Risk tolerance is the amplitude of the degree of
anxiety you feel of an uncertain event.
There is no calculator that can calculate your risk
level and frankly there is nothing called “right risk”
Your understanding of risk becomes clear when
you start gaining knowledge about stock
investments. For example, how stocks are bought
and sold, how much volatility (price change) is
usually present, and the difficulty or ease of
liquidating an investment

6. Mind
Vs.
Rumors
Being emotional is a human nature. People are
often swept by the rumors and having a
knowledge source who/which has not matured
enough to help you take decisions.
The part that acts against us during these
emotional upsurges is our decision-making
capabilities.

7. Educate
yourself
Before making your first investment, take the
time to learn the basics about the stock market
and the individual securities composing the
market.
There is an old adage: It is not a stock market,
but a market of stocks.

8. Where are
all your eggs?
Andrew Carnegie is reputed to have said, “The
safest investment strategy is to put all of your
eggs in one basket and watch the basket.”
Being said so it does not ensure the BEST
investment.
There are many nitty-gritties of diversification
which can come by educating oneself

9. We would be launching series of presentation to help you to understand stock
options better and make a profitable decisions while investing.
“Managalam” Block ‘B’,
Suite No. 1A, 1st Floor,
24 &26, Hemanta Basu Sarani
(Beside Great Eastern Hotel)
Phone: 033 4026 0000 /
Fax: 033 2231 5613
Email:contact@indovisiongroup.in
Kolkata – 700 001.