The Science of Stock Market Investment - Practical Guide to Intelligent Investors

by Chellamuthu Kuppusamy

After all the questions, we will conclude what you really are. Do you know the kind of products your company manufactures? Or at least in what industry/business it operates? Can you tell the sales and profit that company generates with at least plus or minus 50 per cent accuracy? Have you ever analysed its quarterly, annual results with balance sheet and profit & loss statement? Do you have an estimate of how much or at what rate your investment would appreciate in the future? Have you tried to weight that estimate with other non-equity investment options? Have you ever tried to realize how big a risk you are taking by investing in stocks? During the periods of turbulence how much loss can you bear without considerably changing your normal routine lifestyle, still maintaining same peace of mind? Before buying a share or before creating an expectation as to how much to expect from that purchase, have you ever spent more than one day analysing a single company? If you have answered ‘No’ for four or more questions, you are a hard core speculator and there is absolutely no point in denying that. Irrespective of your acknowledgement fact remains as fact. On the other hand, if you have answered ‘Yes’ to all the questions except one, then you better consult with an investment consultant, but not a broker. Otherwise, try to expand your horizons by self-learning. And finally, a big congratulation to you if all questions received ‘Yes’ response. It indicated that you are tra...