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The Investor Sentiment - Equity and investments forum for Sri Lankans

The Lankan Investor Forum - A more respectable and reasonable place for members to discuss matters regarding the CSEThe Lankan Investor Forum - A more respectable and reasonable place for members to discuss matters regarding the CSE

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+5
Brave Heart
serene
Yin-Yang
PANTOMATH
indramal
9 posters

    How to trade Stock profitably?

    indramal
    indramal


    Posts : 36
    Join date : 2018-11-08

    How to trade Stock profitably?  Empty How to trade Stock profitably?

    Post by indramal Sat Nov 10, 2018 10:49 am

    I have already invested in the stock market about Rs. 100k money.

    I normally check popular companies and check stock price down or not. If it is down, I buy 100 units. If again that company stock price down again get 100 units. After it takes 10% profit I sell it.

    Is it a proper way of getting profit or profitable way?

    When I get profit, It takes a long time because waiting for 10% profit. I think if I put that 100k money in fix deposit, I can get more profit.  Crying or Very sad Crying or Very sad

    I heard some people are trading day by day and get profit day by day. How is that happening? Shocked Shocked
    PANTOMATH
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    Join date : 2018-10-15

    How to trade Stock profitably?  Empty Re: How to trade Stock profitably?

    Post by PANTOMATH Sat Nov 10, 2018 11:17 pm

    Welcome to the forum Indramal
    In your topic you are talking about trading while content talking about investment.First find the difference of those two words.

    Educate yourself about financial literacy first.Then find out who you are? a trader or a investor.

    This forum has many experience members and their articles.go through and learn.
    Yin-Yang
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    How to trade Stock profitably?  Empty Re: How to trade Stock profitably?

    Post by Yin-Yang Sun Nov 11, 2018 12:07 am

    It is a very wrong attitude to seek profit in the market from day one.

    The right attitude is;
    at the beginning, you should invest in the market to gain experience and learn the market.
    Yin-Yang
    Yin-Yang


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    How to trade Stock profitably?  Empty Re: How to trade Stock profitably?

    Post by Yin-Yang Sun Nov 11, 2018 4:17 pm

    and...

    stock market is not a graceful ATM machine which offers unlimited cash at your will;
    it is a merciless, deceptive maze, only experienced, determined, wise and shrewd 5~10% can survive and thrive.
    avatar
    serene
    Top contributor
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    How to trade Stock profitably?  Empty Re: How to trade Stock profitably?

    Post by serene Mon Nov 12, 2018 6:09 am

    Welcome Indramal.
    when I read your question I think you better fine tuning your Psychology.
    Read books written on investing.
    Specially the ones which have been concentrate on Investors/ Traders Psychology.
    Ill share you my experience.
    When you read those , you will think that this is bullshit and you will never be like this ( You can avoid pitfalls).
    But after sometime you will realize that you are not superior to anyone and you are also just a part of this system.
    But you can rectify and win.People who does this in early are the true winners for me.
    Just my Personal experience.
    avatar
    Brave Heart


    Posts : 171
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    How to trade Stock profitably?  Empty Re: How to trade Stock profitably?

    Post by Brave Heart Mon Nov 12, 2018 7:22 am

    Indramal it's like swimming you have to start it until such time u gain the practical know how.

    Let's do in simple steps.

    A) study what is equity investments is all about and understand what are the risks and rewards of it
    B) study about Sri Lanka stock market for the past 10-15 years and try to understand why it is so and so
    C) learn how to study about individual companies and then try to understand how to identify what they are doing and how to analyse their financial statements
    D) then prepare an initial plan of what u think the correct way to invest and allocate a small sum to test whether ur plan is working
    E) depending on the results refine and fine tune D above until such time u will develop ur own strategy and personality.

    Do these first and see where are u going within a year.

    Thereafter time will give u the other necessary experience to thrive.
    slstock
    slstock
    Veteran
    Veteran


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    How to trade Stock profitably?  Empty Re: How to trade Stock profitably?

    Post by slstock Mon Nov 12, 2018 8:12 am

    Welcome to the forum!

    I feel it is  better to learn to walk  slowly ( investing) than run ( trading to make quicker gains or losses) .

    Some running can happen once you are comfortable walking.


    ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~


    Let me tell you a story !


    I am not a big gambler.  But some time ago , I wanted to experiment and started gambling at a Casino !

    On my first day , I actually won! Won considerable.  
    My confidence got boosted.

    Day 1  : Victory

    Though I read some material on the dangers of the
    format I engaged in,  I thought maybe I can beat the system.  

    Second day   morning  I played, I won again.
    Hooray.
    By evening I was pushing my luck and lost everything
    I won and more.

    But I kept pushing! But by some good luck I won again and recovered all I lost.

    Day 2 : Victory again.

    Now I thought I was mastering my strategies!
    To hell with warnings, factual theories and beginners luck!

    Since that day I kept playing so many times!
    I have won several times too.
    But the reality is I lost more than I won!

    Here is a fact. I met and talked to maybe 200-300 people at the Casino.

    Many talk about their winning only.
    They never talk about their loses.

    It is psychological issue . Issue is we human
    don't want to show we lose in what we do.
    Show only the wins.
    It also due to an addiction one has to gamble but not realize consciously .
    ( I know as engaged in such it can be addictive)

    So I found many who talk about a big Win which happened 1 month ago,
    but never talk about the loss which happened yesterday!

    Summary : Walk first which is lesser risker ran running.
    When running , due to speed and goals we sometimes get blinded to not
    see hurdles or on coming traffic even !

    ~~~~~~~~~~~~~~`


    I was going to write more as you are a new comer and needed help.  But I see PantoMath, YingYang, Serene and Braveheart has replied with some good ideas mostly which I too agree.

    So I will stop.

    ~~~~~~~~~~~~~~~~


    Last edited by slstock on Mon Nov 12, 2018 2:09 pm; edited 2 times in total


    _________________
    Never listen to anyone including myself without your own study. Only few truly genuine people exist in this world.
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    serene
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    Post by serene Mon Nov 12, 2018 8:23 am

    Very good example SLS.
    I also feel some gain or victory purely on luck at the beginning cause you more damage in long term than that of a situation where you fail at the outset and correct yourself.
    CK
    CK
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    Post by CK Tue Nov 13, 2018 6:37 am

    Mr. Indramal , Some very helpful and senior members are trying to help you here. At least acknowledge it before starting new threads..Don't be so selfish..
    indramal
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    Post by indramal Tue Nov 13, 2018 6:55 am

    I am sorry if I am late to acknowledge. Actually, I new to this form and I get notifications from LATEST TOPICS section and by emails. Today I get my questions by going through my profile.

    Thank you for everyone how help me and share your experiences with me.
    CK
    CK
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    Post by CK Tue Nov 13, 2018 7:20 am

    indramal wrote:I am sorry if I am late to acknowledge. Actually, I new to this form and I get notifications from LATEST TOPICS section and by emails. Today I get my questions by going through my profile.

    Thank you for everyone how help me and share your experiences with me.
    flower
    avatar
    serene
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    Post by serene Tue Nov 13, 2018 7:24 am

    CK wrote:Mr. Indramal ,  Some very helpful and senior members are trying to help you here. At least acknowledge it before starting new threads..Don't be so selfish..
    Very Happy
    smallville
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    How to trade Stock profitably?  Empty Re: How to trade Stock profitably?

    Post by smallville Tue Nov 13, 2018 7:32 am

    Everybody cant do what others do.. this is a game, some have mastered the art of winning and some are still trying to cover losses. Also patience play a big role in investing.
    So u dont need to worry if your gains are less, worry if you lose.. With time, you will be able to catch up and to avoid mistakes you do now.

    A word of caution - averaging down is not a good strategy. Dont do it more than 2 times. Buy a share in chunks can help you mitigate your risk being loss. Say if you buy JKH @ 145, when it goes down you buy @ 140 and that's it. Or you can buy small chunks of shares from 140-145. Now its your holding time. You may see this goin to 135 but dont worry. These days market is behaving on some what mixed emotions on political dilemma. So play safe. Buy good shares with improved earnings potential and you're safe.


    _________________
    I take risks as a Trader and I select stocks based on Tech and daily Cash in/out. Therefore, my methods may not suit u.. so DYO analysis before making any decisions.
    indramal
    indramal


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    How to trade Stock profitably?  Empty Re: How to trade Stock profitably?

    Post by indramal Tue Nov 13, 2018 11:08 am

    PANTOMATH - Thank you for your advice.

    Yin-Yang - Thank you for your advice. I am reading weekly reports (dividend, news, directors changing) and my broker's emails. Sometimes use investment.com website. sometimes I read the financial report to check YoY progress or lost but I do not calculate per share prices using financial report. I did not read the Central Bank Report. Also, I read some books and I learned a lot. are there any materials?

    serene - Thank you for your advice and experience.

    Brave Heart - I am normally doing the calculation like average calculation, profit calculation, and when I invest it other sources, it can get more profit or not and so on. But still, I did not do risks and rewards calculations.
    C) learn how to study about individual companies and then try to understand how to identify what they are doing and how to analyze their financial statements - this is what I don't know. That is what I want to learn and know. Thank you for your advice.

    slstock - Thank you for your advice and experience. That story tells me how to start properly. I also lost some money when I doing forex.

    smallville - Thank you for your advice and experience. averaging down is not a good strategy Why is that? When I get more stocks averaging down and when it increases I can get more profit. What do you suggest other than this? Buy another company stocks or ?

    Thank you for everyone how help me and share your experiences with me. I like this forum.  cheers  Laughing
    The Invisible
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    How to trade Stock profitably?  Empty Re: How to trade Stock profitably?

    Post by The Invisible Tue Nov 13, 2018 11:25 am

    indramal wrote:PANTOMATH - Thank you for your advice.

    Yin-Yang - Thank you for your advice. I am reading weekly reports (dividend, news, directors changing) and my broker's emails. Sometimes use investment.com website. sometimes I read the financial report to check YoY progress or lost but I do not calculate per share prices using financial report. I did not read the Central Bank Report. Also, I read some books and I learned a lot. are there any materials?

    serene - Thank you for your advice and experience.

    Brave Heart - I am normally doing the calculation like average calculation, profit calculation, and when I invest it other sources, it can get more profit or not and so on. But still, I did not do risks and rewards calculations.
    C) learn how to study about individual companies and then try to understand how to identify what they are doing and how to analyze their financial statements - this is what I don't know. That is what I want to learn and know. Thank you for your advice.

    slstock - Thank you for your advice and experience. That story tells me how to start properly. I also lost some money when I doing forex.

    smallville - Thank you for your advice and experience. averaging down is not a good strategy Why is that? When I get more stocks averaging down and when it increases I can get more profit. What do you suggest other than this? Buy another company stocks or ?

    Thank you for everyone how help me and share your experiences with me. I like this forum.  cheers  Laughing

    Ha haa. It seems you are so exited.

    Its a thing where you discover, learn and win while you craft along the river. Equity investment is like a river with heavy flow. If you managed to stay on the boat firmly you can reach your destination faster than all others (1% of all the universe do this) and if you fell off then 99% chance that you will hit ur head in somewhere else.

    Good luck for the future.
    indramal
    indramal


    Posts : 36
    Join date : 2018-11-08

    How to trade Stock profitably?  Empty Re: How to trade Stock profitably?

    Post by indramal Tue Nov 13, 2018 11:55 am

    The reason why I am looking for Investing and entrepreneurship, I personally do not like work somewhere. I want my own assets. That is why I learn.

    Actually, I already invested in the stock market about 1 year ago. I do not like to sell those shares Very Happy  Very Happy

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