Restoring Traders/Investors Faith into Investing

What I think is the best way of investing for capital appreciation in very decent approach and minimizing risks and removing emotions out of trade is to invest in markets when valuations are mid to low and exit when valuations are high.

STOP THINKING PROFITS CAN BE MADE OVERNIGHT. Than this post is not for you.

My words are very comfortable to every investor. Get one thing in mind very clear one cannot buy at bottom and sell at high. Its impossible for even WARREN BUFFET AND RAKESH JHUNJHUNWALA that what ever they trade they buy at bottom rates and sell at highest level.

NOW
WHERE TO INVEST?
To make decent profit one has to start investing. Before investing in stock markets research is must. Leave that to experts(Fund Managers). They charge nothing comparatively what they serve. Pick 3-4 diversified MF scheme largecap or midcap or smallcap. Balance as per your risk appetite.

WHEN TO INVEST?
Markets are best to be judge by their PE ratio book value ratio. Simplifying investing is to just follow PE ratio. When markets are at 17-18 PE they are considered to be fairly valued. below 14-15 PE is undervalued. above 21-22 markets are overvalued.

Just follow the method not what your brain or heart or TV or media say. What they say now is that markets are going to get double in 1-2 years. Absolutely bullshit. Currently nifty is at 21-22 PE.

History says investment done at 21-22 PE results in 20% absolute returns over 3 years and above that they result in negative returns.

PE ratio can be checked on nse india.com and many other websites
 

hauler

Active Member
What I think is the best way of investing for capital appreciation in very decent approach and minimizing risks and removing emotions out of trade is to invest in markets when valuations are mid to low and exit when valuations are high.

STOP THINKING PROFITS CAN BE MADE OVERNIGHT. Than this post is not for you.

My words are very comfortable to every investor. Get one thing in mind very clear one cannot buy at bottom and sell at high. Its impossible for even WARREN BUFFET AND RAKESH JHUNJHUNWALA that what ever they trade they buy at bottom rates and sell at highest level.

NOW
WHERE TO INVEST?
To make decent profit one has to start investing. Before investing in stock markets research is must. Leave that to experts(Fund Managers). They charge nothing comparatively what they serve. Pick 3-4 diversified MF scheme largecap or midcap or smallcap. Balance as per your risk appetite.

WHEN TO INVEST?
Markets are best to be judge by their PE ratio book value ratio. Simplifying investing is to just follow PE ratio. When markets are at 17-18 PE they are considered to be fairly valued. below 14-15 PE is undervalued. above 21-22 markets are overvalued.

Just follow the method not what your brain or heart or TV or media say. What they say now is that markets are going to get double in 1-2 years. Absolutely bullshit. Currently nifty is at 21-22 PE.

History says investment done at 21-22 PE results in 20% absolute returns over 3 years and above that they result in negative returns.

PE ratio can be checked on nse india.com and many other websites
Excellent post pawan, just to make it visually easier..
 
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TracerBullet

Well-Known Member
What I think is the best way of investing for capital appreciation in very decent approach and minimizing risks and removing emotions out of trade is to invest in markets when valuations are mid to low and exit when valuations are high.

STOP THINKING PROFITS CAN BE MADE OVERNIGHT. Than this post is not for you.

My words are very comfortable to every investor. Get one thing in mind very clear one cannot buy at bottom and sell at high. Its impossible for even WARREN BUFFET AND RAKESH JHUNJHUNWALA that what ever they trade they buy at bottom rates and sell at highest level.

NOW
WHERE TO INVEST?
To make decent profit one has to start investing. Before investing in stock markets research is must. Leave that to experts(Fund Managers). They charge nothing comparatively what they serve. Pick 3-4 diversified MF scheme largecap or midcap or smallcap. Balance as per your risk appetite.

WHEN TO INVEST?
Markets are best to be judge by their PE ratio book value ratio. Simplifying investing is to just follow PE ratio. When markets are at 17-18 PE they are considered to be fairly valued. below 14-15 PE is undervalued. above 21-22 markets are overvalued.

Just follow the method not what your brain or heart or TV or media say. What they say now is that markets are going to get double in 1-2 years. Absolutely bullshit. Currently nifty is at 21-22 PE.

History says investment done at 21-22 PE results in 20% absolute returns over 3 years and above that they result in negative returns.

PE ratio can be checked on nse india.com and many other websites
Yes, Prashant jain of HDFC, repeatedly said the same esp when markets were down. Here is another article.

Excellent post pawan, just to make it visually easier..
is there any tool to download PE csv from NSE ? We can manually download with url like this
ALso how did you plot SD? thanks

Edit - in case anyone is interested, you can just hit two urls - 1st to generate csv and 2nd to download it. Should work from batch/shell script i guess.
http://www.nseindia.com/products/dy...&yield2=undefined&yield3=undefined&yield4=all
http://www.nseindia.com/content/indices/histdata/CNX NIFTYall01-01-2013-TO-30-07-2013.csv
 
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