There is a risk of love, it sounds good, but due to this relationship, more traders and investors always remain at a loss than send on the number, money motivation all roams around in their place. But still whenever someone enters ignore. neither He always has the thought that whoever is launched will not all be intelligent, they will not be wise, I am intelligent, I am wise, I know what I am doing and I will show it by earning money. With this confidence, anyone can enter the business market. But after a few months, the same situation occurs and losses happen again.
Why does it happen because we fall in love with risk?
We do not understand the relationships. If you ask most people what is the race in the share market, then they will say that the shares are going to lose money. This is the result of that risk. What is the risk? So today in this blog we will understand what is the risk, what is that whiskey in the stock market. how can you get a fever due to that risk and how can you control those relationships? Now you can do it if you want to control the relationships. Why is it very simple to understand what is RIST? Who has done bond advertising like this? The stock market is not like that if there is a more risky bond then we will get more returns like it happens if we ever go for advertising. If it is a big private estate bank then the interest on FD is less. If there is a new private bank then the interest on FD is more than that. If it is a small finance bank then it is more than that. If it is an embassy then it is more than that.
Why do banks in BSC give you higher interest rates because on those banks?
If the trust is less then the risk is more. If the trust is less then the risk is more. If the risk is more then the return is higher. This thing does not work in FD in the bond market so take a risk there. If you want more return then you have to take risks but more in the stock market. Risk means more return, there is no such fund, and less risk means more return, so today in this blog. we will understand what risk is, instead of running after those risks, it is more important that you hate that relationship and control that risk. So you know what Harris is and how to control and you got them in A. Great investors have said that these parties eclipse the stock market in many years everything that can go wrong will go wrong everything will go wrong and if we you look at the history of skills in the last 70-80 years, then World War has happened, Terrorist attacks have happened, PlantTsunami, Earthquake Pandemic, everything that we are afraid of thinking, all this has happened and when you invest further in the next 20 years, Even in years, everything will happen.
if I am under pressure, I am Mr. Do you plan to leave the market in 2 years?
We all know from the market that we will have to keep trading continuously or keep investing continuously to make money. For, if you are young today, then you will keep trading or investing in the market for the next 20-25 years and in the next 20-50years, whatever can go wrong again, everything will go wrong sooner or later, so it is important for us to That we protect ourselves against those things, our portfolio, our stocks should be such that we protect ourselves from those risks, now we know two major types of risks, one is uncontrolled dress, the other is controlled breast. Now what is uncontrollable? As the pandemic went away, we can’t do anything about it. Due to some other reason, the entire market fell as it happened in March when the market went to 4178, then you should have bought any of your shares, they were all down, so at that time, there was no one from your stock selection. It was not going to make much difference, so if the entire market is falling due to some pandemic-like situation, then this is an uncontrollable prescription, nothing much can be done about it, apart from this, assume that you have offered very good shares, you have done every intelligent research. Picked a company but the market does not know about that city and the market is not giving that value to that city.
can you do anything, if the price movement of any share is out of your control?
the word makes it clear that you cannot do anything, and the price movement of any share is also out of your control. So, there are already many such things in the stock market about which you can not do anything and due to which you will often incur losses, but there are some controllable pressures about which you can do something but you forget to do it or do not know. Not only that there is something to be done against it, how to press that like. I have not invested too much money in a single industry, suppose that before Pandey, you had invested a lot of money in the shares of Inox and PVR because maybe your theory. It was that today’s war is that grandfather is earning, we have more disposable income and where to go on weekends for family weekend getaways, malls and movies are a good destination to make a good option for a family of 45 people.
- So you have the hope that people will go to more movies and the future of Inox and PVR is good, then it is also good rationally, if anyone thinks, keep this logic and put a lot of your money there but suddenly Covid came and theatres were closed. So now this was a risk against you could edit, what could you do, they will discuss. Still, it was not an uncontrollable risk that you put all your money in multiplexes, that industry was specifically impacted, something like this happened and you suffered losses. If it happens, then these are control labels. We do not control the controllable wrist. We rely too much on our research and our intelligence. I agree that many of you and I work very hard to select stocks, but the truth is that success does not always depend on how hard you have done your research and stock selection. Let’s take an example. Suppose you think that there will be good growth in the mutual fund industry, then you should buy shares of any mutual fund company or MC. There are many insists.
Do you know that it is a good company?
Select the best company out of these. You know that there is competition in the industry, the management is good, it is the market leader, only then an order is brought that there is a limit on the fees that mutual funds can charge. It is being reduced, like if earlier it was two and a half percent, then you accept that it has been reduced to one and a half percent, now mutual funds cannot pay more than ₹ 100, so now how much growth is there in the market, how good you have done. You may have left the company because this alarm went off and you did not even think that such a rule could come. Suddenly the shares of this company will be very high because now there will be a difference in the profitability of all the mutual fund companies on the revenue and how much they can earn.
- But how well did you research, how well did you do the industry growth, how well are the songs that it has nothing to do with it, your share falls then we don’t think like this and this, then from this mutual fund for example, you have understood the risk that even if the stock High, you did the research well but if something like this happens, what can we do? Its name is the control tree, we can control it, how do we know from the example, now you have a lot of expectations from the growth of the mutual fund industry? You may also be feeling that because stock investment is increasing in the broker industry, a lot of broking accounts will be opened, so it would be good to invest in any broker, then you do a lot of research, many of the brokers are limited and you are looking for one such broker. You pick the one that you think has good execution and can become a good broker in future, it can become a big broker, it can have a lot of market face and you invest a lot of money in the city of that broker, now it happens.
What happens is that your guess turns out to be wrong.
In the next two-three years, more powerful players come and the the broker’s share from which you bought does not do well, other brokers do well and your share goes bust and your money is lost. The loss is controllable and how can you control it because at that time it was not known, today it is not known which will be the best broker after 10 years but the solution is not that you should make your stock research better and do better. Understand the broker industry and try to choose a good broker. There will always be a margin of error. Tell me what is the better. If you want to do deposit treatment, there are hundreds of brokers in India.
- Depositories are only two, NSDL and CDSL. If you think that broking account More trading demat accounts will be opened. What does it mean that if more rotating accounts are being opened then more demand accounts will be opened with NSDL and CDSL and there are several hundred brokers, depositrates are only these two, so only these two will benefit. If I invest in deposit shares instead of investing in brokers’ city because I am confident that more broking accounts will be opened, then because I was not investing in broker’s shares, the broker is not taking risk or I am taking industry risk. But I am taking advantage of the growth of the industry.
Can we take advantage of the growth of the industry?
By investing in the shares of a company running dorms, I will get the benefit of the growth but the risk of which broker is good, I will not face the loss, so I controlled the risk and reduced it. But my profit is going to be the same, so if we change our way of thinking a little, then we can increase the returns by controlling the risk or keep it the same. There is no need to take more risk, now a shooter. Warning Disclaimer What you have to understand is that this is not a stock recommendation, so whether you should invest in Sirius or not is your decision, I have just told you an example, so what can we do about this risk, the problem is that we all have many Many people learn to pick good stocks, many people focus on teaching, books focus on it, but we also do not learn to make a good portfolio, but what do you know, 11 very good batsmen together can not make a world’s best cricket team, all-rounders in it.
- It is important to have all the wicketkeepers, fast bowlers, spinner, only then a good team is formed because those 11 players cover each other’s weaknesses. It is important to have some Dravid and some Sehwag. In the same way, the stock market is also very similar. It is not necessary that if there are 11 good stocks together, they will be able to make a good portfolio. You have to keep in mind that all those stocks are not highly related to each other or that if there is any one region, then all the 11 stocks will fall from one region. Stocks will increase. You have to keep in mind that if there is a terrorist attack tomorrow, how many such stocks are there in your portfolio which will fall and how many are there will not make any difference. If a woman knows one, then how many such stocks will make a difference?
How many such stocks will fall?
There are those who will not be affected and I am thinking of everything that can happen, a world war can happen, another pandemic can come, many such things, some governments can change, some political crisis can come, many things can happen, so which one? Start the list with your stocks from Tin Factory will make a difference, these facts will not make any difference and if you think that you have, say, 10 stocks in your portfolio, out of which art stocks are such that if an earthquake occurs tomorrow, a major earthquake, then If those points make a difference then maybe those stocks are good but because you have them then your portfolio is not good. Your portfolio is a Harris portfolio. I will also give an example of this.
Many people want to invest in electric vehicles but what is the problem in that, which one is available now?
Many people fear that in the automobile sector. A big revolution is about to come that in the next five years or eight years only petrol or diesel will be consolidated and electric vehicles will be in majority, so many people want to invest in electric vehicles but what is the problem in that, which one is available now? The company will be successful, It is not known yet whether it will take 5 years, 10 years or 15 years for electrical to become mainstream and till then traditional petrol and circles will continue to sell well for at least the next 5 years, so why should I waste that 5 year opportunity? If you miss it, there is a bit of confusion about the future of electrical, but how soon it belongs to which company, it is not our noise, so if someone is buying the stock of just one electric company, he is also taking a lot of risk, he is taking the risk of time. And that is taking the risk of the business as to which company will be successful.
- The person who is investing only in the automobile stock of the petrol company is also taking the risk of not knowing when his business model will be up and running. So what could be the best way in such a situation? If you are interested in the automobile sector then you can buy a Maruti Suzuki in Shire India and nowadays there are many brokers. Investing in international stocks has become very easy. So if you love to invest in international stocks then you can buy one. Maruti is available in India and is a test red state in the US, buy it from there. Now whether it is the future of petrol vehicles in Pakistan or your portfolio of electricals, both are uncertainties, both are ready to be rescheduled and yes, this reminded me if you want to demat. You want to open an account, you are looking for a broker, you want to invest in international stocks, God bless you, then you can join. We have recently launched a new product, the benefit of which is Invoice Select.
where you can get a goodstart with your demat account.
Along with opening, you will also get many records from our side and from Imroz’s side and you can also get an idea of all the brokers by doing this transparent comparison. In the description of these nine Electrical Engg blogs, at the end, keep one thing in mind that this I had said in the beginning also that taking more risk in the stock market will yield more returns, itis not at all true, look back for a year, look at the history of 5 years, look at the history of 10 years, the most risky was A. Stark, whose fundamentals were bad, whom everyone They we reabusing such that Starc has given western, it is not necessary that actual is the stock, stocks like TCS, Infosys, Reliance, they also gave very good returns and these were not reaction, these were save stocks but in terms of returns, they are behind no one, it is not so. I personally invested in a few years ago in a building which is a very rapid settled mature company with very good returns.
- So it is not at all that if you want a multi-bagger then you will have to take more races because it is not important in the stock market to save your capital. If you have taken 8:00 good companies but found two shortcomings due to which your capital gets exhausted, then if the capital gets exhausted then that money is a permanent loan and you will never get any return on it. It is better than this. This means that even if my ₹ 100 gets a return of fifteen percent, my ₹ 100 should not become 80because if₹ 100 remains then at 15 cent returns. I will reach 115, but if my₹ 100 becomes neither then I will reach 115, you need a ringtone of 40 cents, which is very difficult, that is why by taking a risk, you are taking the risk of reducing your capital, which is not right, so do not flirt with tourists, just diversify and expand your industries.
The companies you have, the industries you have, make an excel sheet and ask yourself what can happen and due to which things, which of your stocks will go down, in any one region, a lot of stocks are going down in them. Add some new stocks which are not perfect by creation. I hope this blog will help you in making a good portfolio. I will keep bringing many more such blogs and many more such articles. You will get our new website again. You will also get its link in this blog question till then Responsible Sachan Signing of Baba