Why only My Stock falls

“Hey, I told you not to invest in my shares” my friend retorted angrily.

(Correction: he was talking about the shares in which he has invested his money)

I immediately checked and yes he was right all were in red.

(Reader: RED ….. symbol of LOVE)

Not always dear in our world red means downfall i.e. reduction in the price of the shares. Anyways, so all were in red and his anger was right. Actually according to him when it is about investing in the shares I am the biggest loser. In fact I also think:

“Why only My Stock falls”

I don’t know about others but my stocks are just like an indiscipline child who just doesn’t wants to obey his parents.

(Just a thought: Hats off to Mom and Dad because now I realize that it’s very difficult to manage an indiscipline child)

Whenever Market is down it seems like my stock is in deep love with the market and if market is down say by 1 % my stock will go down by 10 % and when market will recover my stocks will break all relationship with it and remain at its position.

(Readers: Bad Luck!!!!!!)

Yes Bad Luck!!!! That was what I also thought but then I asked me one simple question:

WHY DID I INVEST IN THAT STOCK???

It was due to three factors:

   A)  Somebody told me (and it was just somebody i.e. my friend, my office colleague,      relative etc.)

   B) Got recommendation from some group (a simple social network where I don’t            even know the person posting that suggestion) 

   C) Or by just looking at shares which were at 52 weeks low or 52 weeks high or was        on continuous rise or continuous fall.

At the end I realized that I don’t even know the net profit or turnover or other basic things about the company. I just invested in them seeing one of the above factors, and I know that most of you are also doing the same thing and that is the reason why our stock falls.

(Readers: So should I stop investing)

No, not at all invest but Invest smartly. When we buy even a small commodity we do a lot of research, then why we don’t do it here. So spend some time on financials, peer comparison, various ratios, trend in financial costs, etc. And if you don’t have time to do such research you can take the help of professionals, now a day’s many brokerage houses also provides full research report. 

And most importantly always go for long term if you cannot give full time to it. Believe me if you are investing after doing complete research you may lose in short period but you will never lose in long run.

Thanks for reading, please do comment and keep investing…