Markets are trading at all time highs (Nifty @ 18000+ and Sensex @ 61000+) and I am sure that from 21st January most of you who were not into equity investing earlier have started a new Demat account or Mutual Fund ( MF) and gained active participation. ) folio. Most of the dormant demat accounts got activated and the participation of many new entrants in the bull market increased. Today, we are sitting on the highest demat accounts and MF folio numbers in India.

This bull market that we are witnessing is a little different because of the pandemic. This leads to a lower cost of living and as luxury goals take a back seat, we all have saved a lot of money which is eventually channeled towards equity investments.

This is a very difficult time, which is most likely to fall into a bad investment strategy, especially when it comes to direct equity investments, so by following simple yet golden rules of investing, you can save yourself from getting into the wrong investments. can.

Avoid investing in companies whose products and processes you don’t understand – Before investing in any equities ask yourself questions on common data points (Fundamental Analysis). The data of listed companies is easily available online so try to study and understand the business and processes.

Make your own decisions and don’t fall prey to the TIPS/herd mentality – following what others are doing is simple, but also very risky as each investor has a different risk appetite, so fall prey to such behaviors Do not be there as it can lead to huge losses in the portfolio.

If you are a first time investor, start with an investment strategy and not trading. While deciding on investment strategy, beginners always try to go by past performance, so we should be more careful as market is constantly evolving, so data analysis is also necessary along with past performance. If you think you are missing rally or fun then don’t worry such opportunities always come in future. Learning is a continuous process so keep observing the market for future opportunities.

Decide profit percentage (target) and strictly adhere to levels – In a bull market, the best way to decide where to stop on new buys and start booking profit is when Z category stocks are close to A category. Start trading more than shares. It is advisable to book profit from time to time when you are not sure about the future trends.

Don’t try to time the market, Equity market creates a lot of opportunities every day. Even when the market is trading at this all-time high, we still have good opportunities to come in some areas. Keep reading about companies and industry competition and comparisons from micro and macros.

Buy when everyone else is selling and sell when the rest of the world is buying.

Don’t get emotional about your position and strictly follow the goal and stop loss. Because if you keep bad equity and average it, you will never be able to make money in the stock market.

You can earn good returns in the stock market if you follow the basic discipline irrespective of your investment/trading experience. In my opinion we have made equity investing so complicated over time that the new entrants try to get the advance strategies early on and this is because most of them get away from the market in a very short span of time.

Good luck and good luck investing.

Views are personal: The author is Prashant V Wagh, Founder & MD, Goldenbulls Wealth Management Pvt Ltd.

Disclaimer: The views expressed are those of the author and are personal. TAML may or may not subscribe to it. The views expressed in this article/video are in no way intended to predict or time the markets. The views expressed are for informational purposes only and do not imply any investment, legal or taxation advice. Any action taken by you based on the information contained herein is your sole responsibility and Tata Asset Management will not be liable in any way for the consequences of such action by you.

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