Comment on Lessons from trading on Yes Bank

Avinash 9849844187 commented on 23 Aug 2019, 05:03 PM

Considering Nitin’s Advisory Write Up and my personal experience, I feel retail investors should not get in to direct equity for the following reasons:
1. We (Retail Investors) have little or absolutely no idea about the business model of a company, the business cycle of that particular business and what factors(external/internal) positively or negatively effect its share price.
2. Further We do not know the wrong doings of a company which are concealed for years, even the experts know nothing about the wrong doings.
3. As long as the things are wrapped up and the stock is doing well all analysts recommend that stock and it keeps going up, once the skeletons are out from the cupboard all hell breaks loose and they continue to fall.
4. SIP long term in equity MF is a better way if you want to build wealth through equity.The plus point is that good fund managers some what know when to exit the stock, even at a loss they don’t hesitate to do it, which retail investors cannot.
5. As a retail investor with 5-10 lakhs capital what can you buy and control. Every company has crores of shares what will you do or how does it matter if you hold 100 or even 500 shares of a company, your stake is not even .0001% of the equity base.
6. Retail should go with SIP, else if you are interested in trading they go for point 7.
7. Study Thoroughly Premium Selling it is better alternative to equity trading and has a higher than 50/50 probability of profit, you can make 3-4 % a month on your capital/margin used.
Bye for now.

View the full comment thread »