Secrets of Winning The Stock Market Game

Note : All the information here u will get is not mine , I Search on google and whatever I found suitable for knowledge ,I copy and past here .This is for my reference purpose only .

Very important note: The objective of this blog is to share knowledge and info about multibagger ideas/opportunities. Neither is this trading website nor an analyst website nor a Buy/Sell call website. For stock market success, always do your home work, own assessment and make your own decisions.



Disclaimer :: Please do not invest after view my selected share , as I am just learner of  share market ,I personally  do not hold any share , I personally  invest in Mutual fund under Direct plan . I Think this stock has potential to become 1 or 2 bagger . 

Secrets of Winning The Stock Market Game

1) Look at quality businesses; not  just the stocks

This is the first and foremost of the 7 Stock market secrets. Warren Buffett said, “When I buy a stock, I think of it in terms of buying a whole company, just as if I were buying a store down the street.” Most investors don't analyse the businesses they invest in. They simply follow

the symbols or brands of successful corporate houses. If you are buying a shop, you will analyse about the products dealt by the shop, overall sales, consistency of sales, competition for the shop, competition strength of the shop, how the shop will manage the change in customer trends and so on. We need to apply a similar logic before choosing a stock. Don’t think that you are only buying a few shares of that company. Will you buy the whole company if you had enough money?

2) Are you willing to own a stock for 10 years? If no,

then don’t own it even for 10 minutes

Once you find a quality business, you need to decide will you own this stock for 10 years, which is the second secret in the 7 Stock market secrets. Only buy something that you'd be perfectly happy to hold if the market shut down for 10 years. In the short run, the market is like a voting machine–tallying up which firms are popular and unpopular. But in the long run, the market is like a weighing machine–assessing the substance of a company. Looking at the short term opportunities in the stock market will not be a long term successful strategy. If you don't feel comfortable owning something for 10 years, then don't own it even for 10 minutes

3) Check thousands of stocks and look for very high bargains

Avoid investing based on the stock tips or recommendation. Do your own research. Analyse thousands of stocks before choosing the right stock to invest. Once you have chosen a right

stock, wait till the share is available at a very high bargain price. Buying a right stock at the right price is the key to investment success. Investors have the luxury of waiting for the “fat pitch”. It is really difficult for an individual investor to analyse thousands of stocks and finding out the right time to buy a stock. If this is the case, youcan outsource this to a professional financial planner or wealth manager. But you need to be careful in choosing professional financial planner who is capable and at the same time customer centric

4) Scrutinize how well management is using the resources

Check how efficiently the management is using its resources like money, manpower and material. This management efficiency will in turn reflect in Return on Equity and Return on Capital

5) Always stay away from “THE HOT STOCKS”

The hot stocks are those stocks which have some attention catching activity such as severe volatility in share prices, high trading volume or when the stock is in news. Stay away from these hot stocks. Warren Buffett once said, “Most people get interested in stocks when

everyone else is. The time to get interested is when no one else is. You can’t buy what is popular and do well.”

6) How much money you will make?

Before investing in a stock calculate ‘how much money you will make’ in this investment. Of course, you need to make a few assumptions to do this calculation. But do calculate. Most often investors tend to ask the share is undervalued or overvalued. Identifying the intrinsic value of the stock is difficult and the various models available to calculate the intrinsic

value are faulty. Warren Buffett wrote in a report “Unless we see a very

high probability of at least 10% pre-tax returns, we will sit on the sidelines.”

7) Get rid of the weeds and water the flowers — not

the other way around

People have this tendency of loss-aversion. That is when the share price has fallen down by 50%, they choose to wait. They convince themselvesand others by saying “It will definitely come back”. Also people will rush to book profit when their shares go up just by 10%. In

effect investors tend to keep the loss making shares with themselves and they offload their profitable shares. Actually it needs to be the other way around. These 7 stock market secrets properly applied in the stock market would be your roadmap to riches. In order to strengthen your road map to riches, you need to strengthen that with a clear route map in the form of a financial plan. If you are really interested in creating a personalised comprehensive financial plan for yourself and your family, I strongly recommend you to take advantage of