Best Skills, Strategies in the Market.

Best Skills, Strategies in the Market.

These are my ideas on the best course to follow in the often strange place that market is, combined with some wishful thinking.

1. Start slow and move steadily.

Do not invest a lot of money as a beginner. Slowly over a year or two, reach the peak of your investment. By then you are expected to witness some fall and rise and learn from it.

2. Patience, Patience, and Patience.

Overnight no business makes money, at least such a thing is very rare. In business, good times follow bad times. If you are in the market for earning without having to spend time and energy, you rather leave. Most of those who made money from the market stayed there long-term and they were not day trading. Day trading and short term in the market takes huge experience and equal amount of luck to be successful.

Hence you need to be patient in the market. This is required for two reasons. 1. To stay for long-term. 2. Not to panic in times of heavy crash / volatility. In 2006 May, June period, one of the most wealthy and well known investor Rakesh Jhunjhunwala was interviewed by media. He lost many Crores in a few weeks. However towards the end of that long interview, he reiterated his belief in the market and the confidence that it will eventually rebound. he has apparently not rushed to sell his stocks. That is the kind of confidence that is needed in you.

3. Ability to predict it right:

Some people guess right. I am not saying be an astrologer and i don't believe in one. Yet some people make it out right. This ability to predict it right, comes over time, from a combination of market wisdom through experience and knowledge . Over some period of time, it will be great to develop such a skill.

Inability to predict the future is not ones mistake. However in the market your ability to guess things and predict it right will be a great qualification. At least when the storm started if I had acted, I could have sold my holding in the middle of May 2006 and bought it back cheap later in early August when the market begun on a stable road to recovery. I must have either seen the heavy and incessant fall coming in the middle of May and sold my holdings quickly or at least started selling immediately after the fall started.

In fact by August middle, almost all good scrips have started gaining substantially. Hence my inaction could have upset me only for two months. However for an investor who is not for long-term (although I would consider myself long-term), it can be quiet upsetting to watch his money get washed away. I don't consider my lack of prediction capacity as a mistake but the fact is, it is a huge advantage to be able to see the future with a fair level of precision while in the market.