In India, a democratic country that believes in freedom of speech, every Indian citizen has a view. And when it comes to stock markets, it is often very difficult to change the perception.
As someone rightly said, there is nothing called a long-term investor or a short-term investor, but there are informed investors and uninformed investors.
We believe that there is one more class, apart from this set of investors - the trader or punter or the sattawalla.
Can you spot YOU?
|
|
Informed Investor |
Uninformed Investor |
Trader/Punter/Sattawala |
|
My view on |
|
|
|
|
Stock market is |
An efficient platform |
Scam |
Casino |
|
Equities are |
Better investment avenue |
Very risky |
Fast money |
|
Risk profile is |
Moderate |
What is the risk? |
Who cares? |
|
Return expectations is |
Moderate |
If it works, it works |
Minimum 100%, in one month |
|
Investment horizon is |
3 to 5 years |
Short-term works |
Less than 1 day |
|
Buying strategy |
Regular investor |
When market is close to peak |
What strategy? |
|
Fundamental analysis |
Works |
Makes sense, but |
Who cares? What is the target price? |
|
Company management |
Extremely important |
Indifferent |
Does not matter |
|
Technical analysis |
Not my cup of tea |
Seem to work at times |
What is the target price? |
|
Research Report is |
A balanced scorecard |
What is the target price? |
What is the stop loss? |
|
Stock price reflects |
Growth prospects |
Not so clear |
Don't care |
|
A broking firm is the one that |
Does what I say |
Knows in and out of markets |
Gives tips |
|
Media/Newspapers are |
Used as updates |
Experts in equities |
Source for tips |
|
Harshad Mehta/Ketan Parekh |
Unlikely role models |
Made money |
The Gurus |
|
Rumour mill |
Doesn't get swayed |
Easily swayed |
Fast cash |
Before investing a single penny in stocks, just identify 'Who am I'? The rest should not be difficult.
Equitymaster.com is one of India's premier finance portals. The web site offers a user-friendly portfolio tracker, a weekly buy/sell recommendation service and research reports on India's top companies.
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