I often hear people putting the term smart money here and there. To me, very simply put, smart moneys are those which are getting return, often beat the bank interest by a fair margin. It is for the interest of a Really Small and Helpless Investors to know or assess whether their money is smart enough in a long term investment.
My small capital can earn much more than the bank interest if I study the market and roll my money. I would rather prefer to roll my money for some quick gain instead of sitting on it, which is possible in the present bull market.
Diversification with a small capital is not a good idea, because there are much small head areas to diversify.
Risk aversion by being disciplined (not being greedy) is another key. Sell at my target price, at prefixed time period (whichever is early) and being courageous to book loss if necessary. It seems 10-20% profit in a month is a very good bet.
Timing the market is a dumb idea. Nobody can predict stock prices and choose correct timings; at best I can guess it.
Really Small and Helpless Investors (RSHI) are generally the last to be tipped off. I should apply discretion, to accept them.
Day trading is most risky, avoid even though there are enough time at my disposal.
After selling of Cummins I asked my broker to buy IFCI. As I knew the person for some time he came up with advice that I should not buy when the Sensex / Nifty is at its peak and asked me to wait for some time. I heeded his advice and repented after the day, IFCI made a nice run today. Missed bus carries no passenger. May be a correction is on anvil, after listing of DLF. Respect history.
The following stock are in my mind, I should study them
IDBI- It is ripe for one month investment for 10-20% growth.
Yes Bank- less than a month, next target may be Rs. 220/-. RSHI may exit below that level.
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