Stock market trading

@Shavkat, Well, if you don't know swimming you won't get in the water, right? And if you don't get into the water, you can't learn how to swim. I think your case's something like that. Don't take it personally but I am just giving you and example. Until and unless you don't explore things how are you going to learn what the basics are? Coming in that zone will give you some confidence and you will come in the mainstream.

@porwest, That's so truly said. Because once the time is gone, nothing can bring it back to you. And I think the way you have mentioned about the book on a couple of occasions, I think it's time I too found it online or from wherever I can get it and read it at least once. I am sure I am going to get handful of information from it. Thank you!

Time is a wasting and time decay is a very real thing. The time to start learning about it is now. Read Benjamin Graham's The Intelligent Investor. It's a great place to start.

@porwest I agree with you my friend. While reading your response I analysed my own earlier reply to you. Why I was asking that previous question was because I haven't gone through this book. And wasn't quite aware of how to deal with such kinds of things that suddenly spring up from nowhere. I think reading the book itself will be nothing less than reading a satisfactory answerbook for my entire "questionnaire".

Yes, I have heard about the name of this book and writer as well. But I hadn't got an any chance to read it so far. Because I thought I am not that much serious investor. So I didn't spend my time reading that book. But after reading about this book from so many sources, I think it's time I lay my hands on it. I agree what you said, no matter what part of the world I come from, the stock markets and the fundamentals of business are always going to stay the same. But tell me one thing, do the fundamentals mentioned in the book apply to current market scenarios? For example, when the book was written there was nothing as the Corona kind of thing. Well, the business rules might stay the same in any part of the globe. But what happens when there are natural calamities or Corona or any such huge calamity, the entire world faces? Does that book have any guidelines regarding such questions? I'm just curious to know.

@abhi_bangal Business is business and has been the same way since the beginning of time. It's all about fundamentals. It's all that matters. What happens in the world, the broader markets, no matter good times or bad, diseases or none, wars or none... Strong fundamentals win every single time.

I have always heard this advice from most of the people. They say that don't depend on other people's research. You should know the fundamentals and the technicals of a certain stock or that particular company. Even the management side is also important isn't it?

@abhi_bangal Everything you can find out about the stock is important.

@jstory07 Exactly. And stock market and the Economics is one such thing that, the more you research the better for you. Because things keep changing so fast today. And a lot of other factors also affect every stock market in the world.

Yes. Do learn. Without learning investing can be quite dangerous. Better to be late than sorry.

That's quite an important advice - make sure you are making sound investments. That's such a key thing when it comes to stock market trading. And the earlier sentence supports it - research required. These two things are going to make an impact on how sound the portfolio is going to be.

I've heard from so many people and know a few of them personally who have gone for long term investments. And only then have they managed to earn considerable money. Even Jim Bauer, @porwest, suggested similar things. Yeah, I know there's that tax headache if you start earning from your stock investments. But then there are some government investment options that makes your profits tax free. We have some investment schemes in India that allows us to do that. You will need to check what such similar things are there in your place. But yes, you need to invest the money with the government. If your profits are higher and you don't want to put your money somewhere else just to avoid taxes, the best way is to pay it. Both options are available.

@abhi_bangal Municpal bonds are typically low earning investments, but you do get the tax free benefit from them, as well as from certain treasuries. As for tax implications, you will never be taxed out of a profit, so it's still worth doing even if there are tax implications. Always consider it this way. If you are paying taxes you are making money. If you are getting refunds, you're broke. That's a blanket statement, but at the same time it's mostly true. I'd rather make money. Taxes will never be 100%. So, to me, avoiding investing to avoid taxes is quite foolish. Just my two cents.

@porwest I guess it's still worth in case of long term investments only. If you "day trade" and are lucky enough to make a profit, it can be frustrating to pay taxes on top of the broker's fees especially if that's your main source of income. Abhijit mentioned "sitting at home" and I understood it mostly as a work-from-home full time job, like day trading.