Story Behind The Venture

Biju had started investing in capital market from the year 2007 .He has gained over 300% return in his initial phase of investment. As a normal retail investor he used to listen to    TV ,Read News Papers and take tips from Brokers etc He soon realised its a very easy way to earn money.. He increased his exposure to share market and in his portfolio , the %age for equity had grown as high as 70% .He gained confidence started taking his own calls used simple formula like buy scrips which has dipped and beaten down and look at news related buys etc.

Then suddenly things started turning around the calls started going wrong the simple formulas like BUYING ON DIP, listen to tips and buy etc was not working. When market started going down he started AVERAGING the SCRIPs thinking that its a good to do BOTTOM FISHING with out realising that those SCRIPs have shown a BREAKDOWN Signals on technical parameters. Slowly started loosing his capital and the losses started mounting day by day . He started diversifying his portfolio by buying more of beaten down stock thinking that he can average ths losses in other scrips where he has purchased at high price. He bought certain scrips again when market was showing signs of  RETRACEMENT thinking that market is bouncing back and he can catch the upside rally. One day he decided to exit his full portfolio at a loss of over 30% this action was out of panic . Sad that the market started recovering from the next week of his exit. He did not realise market was BOTTOMING OUT. 

Then he decided that without learning into market behavior and various technical and fundamental aspects of market he will not invest again . He started learning things took NCCMP certification . He decided to impart his learnings to other retail investors so that they approach the market with lot of awareness and knowledge. 

www.stocktradingfundamentals.com is a outcome of this thoughts and vision.

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 Learning's from his experience

• Market behavior is a science, without understanding this science if we get into market we are putting our money like we spend to buy a lottery.
  

• Don't buy a scrip just because it has gone down understand Why its going down ? Has it broken its key technical indicators? Is it in a bearish channel ? etc.

• Put Stop Loss for your trade . This is applicable for your investment also . There is no sense by loosing your capital . Its not true that stocks which go down will bounce back always it need not happen.
  

• Don't diversify your portfolio beyond a level. Too much of diversification dose not give you a margin of safety. Its hard to manage when you diversify into many scrips .

• Don't put more than 30% of your investment in capital market. Its always good to diversify into various investment avenue.
  

• Look at various fundamental and technical aspects of your scrips this study is needed atleast once a week in detail .