An Advice for New Investors in Share Market

A lesson for amateur investors in share market 

Few tips I gained from over 12 years of experience in share market is briefed here. I started with the IPO of Canara Bank. It gave me good returns. So. as an anxious overconfident young investor, I started my explorations for treasure with online trading. But, many years later I found, I never made anything over the bank interest rate, if I had made an equivalent Fixed Deposit in the bank.

Ø What are the major reasons for incurring losses from share market?

1. Buy is not planned. Price of the scrip at the time of BUY , hence will be mostly at maximum.
2. After a reasonable growth, investors are reluctant to sell the holdings.
3. Investments on poor or under performing firms.

My Explanations:

Entry into market must be planned after a detailed study and observations or should be based on expert opinion. Never invest your cash entirely over single scrip. Divide your money among different scrip’s covering diverse fields. When market falls, never get panic. Try to use them as opportunities for accumulating shares if the current market price (CMP) of scrip’s in hand falls below 50%, otherwise just leave it from your mind. Just remember that prices can recover up to 20% in a day.

Ø      What are the strategies for earning good returns from the share market?

1. Prefer Long terms investments. They are safer.
2. Invest, only when the market prices are low. Never buy when prices are at all time high.
3. Never invest more than one-third of your of earning into share market.
4. After a reasonable growth (say, >100%), at least partially book profits.

My Explanations:

Based on my experience, I strongly recommend that never make all your investments into one field alone. One must divide his earnings wisely into three and may deposit as; one-third in bank as fixed deposits, another one-third in share market and the remaining on intangible commodities as gold or land.

Population in Kerala

Total population in Kerala has touched 33,387,700 as per 2011 census. It comprises 16,021,300 men and 17,366,400 women.

Kerala is the only state with females head number greater than male counter parts. There are 1084 females for 1000 males.

Population in Kerala – District-Wise

For every thing, tangible or intangible, there is an elastic limit, beyond which the object will break. Can the Earth feed present 700 core world’s total population? Will it be like the duck that laid golden egg, which was once killed by a greedy man.

Rank	District	Population*
1.	Malappuram	41,10,956
2.	Thiruvananthapuram	33,07,284
3.	Ernakulam	32,79,860
4.	Thrissur	31,10,327
5.	Kozhikode	30,89,543

Why Population Growth rate should be strictly controlled?

Everything has equilibrium. If the equilibrium is upset the object will crumble. 

Too much of population leads to increased unending requirement for resources, which inturn results in increased production, industrialization and thus pollution. This will even affect the existence of other creatures in Earth. This will surely upset the Earths equilibrium as the life chain is affected. So obviously, a population check is essential. Its just like not allowing 100 men inside a 40 seater bus. Everything has a limit, beyond which it will certainly fail to work.

Why population is increasing steadily from twentieth century?

The human population  is increasing due to reduced death rate; which can be attributed to the growth in the field of medicine. The modern medicine has expanded the life span and death rate of human beings. As a result the human population is steadily increasing. 

Hence, as a counter measure the birth rate should be strictly controlled. China is a good example for this. It must also be understood, its not quantity, but quality  that matters. Even-if one has only a single kid raise him with all attention and quality education.

Is birth control is a punishable act by GOD?

No. To understand this one must understands actions can be classified into two. Natural actions and deliberate actions. Growth of beard is natural, whereas child birth is the result of deliberate action. Hence resorting to birth control measures is not a sin. Moreover, as human resort to several artificial medical treatments as organ transplant and surgery, how could birth control alone be treated unjustifiable  in front of God.

What is most sinful?

Most sinful is the destruction godly created natural objects and resources  as hills, rivers, valleys etc.

* As on 2011 census, published in 2013. Source: http://www.kerala.gov.in/

Generalization

People often tends to generalize things.It may not me fair for 99% of time to generalize situations.

There is a proverb in Malayalam which means something like this - If a rabbit get killed when one jack fruit fall; will it mean that more rabbits will be killed when other jack fruits in the tree are axed. answer is definitely NO. Still people tend to generalize things as in the proverb.

Now the biggest question is - When to Generalize ?

Test once, test for second time, test it again and again for n times. Now, if all n instances are yielding True, we can Generalize that to b e fact.

What is best for Kerala?

Best plans for Kerala?

Kerala, looking into the future,should bank on the following two:

1. Tourism

2. Education

The reasons for the above proposal are outlined below:

 

Why Tourism?

•  the natural beauty of Kerala is a gift from God. Because this  reason Kerala is otherwise known as "god's own Country".
• Second reason is that world tourism is increasing. More and more travelers are  seen to spent their vacations in visiting foreign places.

Why Education?

• The high literacy rate (close to 98%) and the manpower can be very effectively utilized. Kerala can be developed into as an Education hub. It will be useful for the youth in Kerala as they can get quality education and move out to foreign countries for employment.

Kerala instead on concentrating on the above two is spending time on harmful destruction of Hills, Rivers and Trees. The present trend in the state is to abandon agriculture and paddy are been sold to real estates. Residential flats and villas are then built leveling the once fertile land. I strongly believe in years to come tourism can bring us more revenues than any other industries. Hence what should be done is - preserve the god given treasure. Stop disfiguring the beautiful face of Kerala.

A Grade Colleges

A Grade (Accredited by NAAC) Colleges in Kerala*

National Assessment and Accreditation Council (NAAC) is a national government agency for grading and accrediting colleges in India.

Seven criteria by which the colleges are assessed is listed below:

1. Curricular Aspects

2. teaching Learning & Evaluation

3. Research, Consultancy & Extension

4. Infrastructure & Learning resources

5. Student Support & Progression

6. Governance & Leadership

7. Innovative Practices

Based on the above criteria the NAAC peer team grades the colleges into A (3-4), B(2-3), C(1-2) or D(0-1). The peer team comprising three experts will spend three days in the campus for verification of details claimed by the colleges and submits their observations as report to NAAC.

Prominent college accredited with A Grade in Keralam:

Name of the Institution	Grade
Maharajas College, Ernakulam (3.11)	A
BPC College, Piravom (3.14)	A
St Alberts College, Ernakulam	A
St Teresas College, Ernakulam	A
Marian College, Kuttikanam (3.45)	A
WMO College, Kalpetta (3.12)	A
MG college, Thiruvananthapuram(3.10)	A
Govt College, Kasarkode (3.02)	A
Rajagiri College of Social Sciences, Kochi (3.70)	A

St. Josephs College for Women, Alappuzha(3.11)	A
K. E College, Mannanam (3.10)	A
Sacred Heart College, Thevara (3.30)	A
Fatima Matha, Kollam (3.13)	A

Name of the Institution	Grade
Nirmala College, Muvattupuzha (2.85)	B
MES College Marampally (2.71)	B
St. Aloysius College, Elthuruth (2.84)	B

* (as on 2013, list is incomplete)