STOCK DILEMMAS

I took the decision to enter stock market at a probably wrong time, the market is behaving weird. The word “volatile” is correct, though I did not appreciated the use before. Experts say “There is no right or wrong time to enter the market, invest in blue chips, sit tight for a few years and the return will beat the bank interest by a good margin”. I am doing it for last so many years, through mutual funds. Mutual funds are giving me good returns, some very handsomely. But the entry load at times gives me some jitters, they are so high. The fund managers are making money and living a good life out of our money. But honestly no complains either, till they give me some good returns.

I was missing the fun and excitement of stock market. The challenge to double your money at double quick time should be exiting. Identifying a winner is another story altogether. I mused on the followings:
To be an investor or a trader? Investor is out, I am going to be a trader. Day trading is exiting but with great degree of risks. Swing trading sounds good, but needs expertise or experience. SMS and Mail group costs almost my total profit from my small capital. And who can actually forecast stock, weather and luck correctly? Can I effort to lose concentration to my present job after some quick bucks with all the risks associated? How can I pick stock of my choice at my price if I do not follow it by minutes.

I am starting to read study materials, blogs and hearing experts opinions in TV. The biggest bull Mr. Rakesh Jhunjhunwala recently in an interview expressed his views on the present volatility of the market. In one sentence he told that market will never come below 11,000 marks. Does it indicates he foresees that the market shedding 3000 points from here on?

In my earlier blog I thought about Fortis and Binani Cement. I will wait for some time to pick the stocks up; I will continue watching them and pick up after some worthwhile trading on these stocks by some investors. Cummins India after some heady topsy-turvy is going up again.

I bought 30 shares of HCL Technology yesterday at Rs 339/-, effective price will be 2.2% more ie. Rs. 347/-. Above which I will make profit. Depreciation of Rupee is the main factor of my interest in software. I will look forward for around 10% profit in one month or less. This time I am not sure of my decision.

Ciao.