My Experience With Investing And Trading So Far

How it started?

It’s been few months in the share market for me. I started with buying one or two equities, which costed much lesser in amount. I didn’t have enough money. So I was investing the least amount every week and bought one or two shares then and there. I also didn’t know how to start with. So I chose Waren Buffet’s popular strategy of diversification, to split the money and invest in lots of companies. And then I made sure these companies were making some profit.

A friend in need is a friend indeed

After a few months the shares prices were rising. It was rising for more than 20%. I was happy and confident about getting profit if invested in bigger amount.

So, I told my friend it was good and was safe to invest. It was actually my friend who gave me an idea to try trading in share market. So, I told him that it was good and I would prefer to invest and trade.

But I didn’t have any money. I was trying to get funds from earning through some other jobs. But I couldn’t. Then, I asked the same friend to lend money.

I don’t like borrowing money and I don’t like to borrow it from my friend. However I had to. Then I got a small amount of money.

Investment 1 and the pessimistic start

I invested the borrowed money using some simple strategies. This is investment 1. To my surprise the price was the same and there wasn’t much changes for the first one week. I was worried about how my predictions and expectations turned into. Actually my worry was due to a pessimistic start. Lots of thoughts on what if the price doesn’t gets better. It was hard for me to keep myself calm. I was getting emotional, though I shouldn’t be. I had to be calm and there were no proper reason for me to get emotional or frightened. There was something else that was troubling me, which I figured out later.

Getting better, but not enough

It went for a week and the price got better and it was rising. But the price wasn’t rising as I expected. But it was good. I was happy and relieved.

The target of 30 percent and happiness

I had a target to make 30% profit and to sell the shares. I expected to make it between 2 to 3 months.

And it happened. The price increased by more than 30% in 70 days and then I sold it.

I was happy. And then I gave some good percentage of the profit to my friend and took bigger percentage of the profit for me.

Investment 2

And then I reinvested the money with my updated knowledge and strategies. This is investment 2. And it is in progress now.

I’m learning and need to learn

I’m still afraid as I keep learning about the possible market fluctuations. Everytime I gain confidence that I will make profit, I learn new possibilities of risks associated.

I still don’t understand anything about the technical analysis. I want to understand and learn about it.

I got better with fundamental analysis. It is pretty good. I would like to know further more about it.

There are also business strategies. I don’t know much about the business strategies that the companies are making and would like to know about it.

The share market price depends upon lots of factors such as the business deals, the interest rates, exports and imports, budgets, elections, economy and plenty of factors. I’m learning how it makes an impact and I’m keep learning.

There are so much to learn. I’m getting better, but still my progession needs to be faster. Learning process has been so slow, and it got better and it has to get better further.

What’s the science behind it?

And I still don’t understand how shares could benefit the share owners other than the profit they make.

If someone buys a house and sells it after an year. They might make a profit. And they might be using the house as well. It’s the same for the gold. We make gains after a certain time and there is some utilisation. However, what’s the utilisation with shares?

Need more money

There is some money I have invested in shares. I need more money. I don’t know how to get them. I don’t want to borrow money. I don’t want debt. I prefer to earn it. But its just not happening. I hope it gets better.

Friends and their experience

I was asking several friends about whether they made profit and what kind of trading they did and what companies they invested. I should say that my friends were very helpful in providing me some of their knowledge and experience, which is so useful. I’m thankful for it

Is trading a gamble?

There are so many opinion that trading is a gamble. So I had a question whether trading is a gamble?

Let’s ask what Google Bard has to say about it…

Bard might not be perfect. But it’s helpful.

Be it any business if you do it without proper analysis, forecast and predictions, etc, then its like a gamble. The word gamble could be associated with any activity where you play with money and rely on luck and guesses.

It’s not a gamble but it’s a responsibilty

There are disciplines in investing and trading. And it’s not a gamble. But how you invest and make profit might decide whether it’s a gamble or not. A person who gamble everywhere might gamble in share market too. I believe it’s not a gamble. Investing, making money, predicting, all these requires education and knowledge. And it’s not just investing, trading and making money, it’s also ownership and some responsibility.

Thank you

With great powers comes great responsibility. Thank you for reading. I hope you enjoyed the read. 😀😀