God says, "Make Merry", but the World says, "Make Money". The irony is people got it all wrong they believe what God said is the Destination and what the World says is the Approach to reach that Destination. Well, let me discard philosophies here and get to the crux of the matter which is Money Making...Money Making can be defined as a process of generating wealth. A process which requires a lot of brains and little investment OR a process which requires a lot of investment but little brains OR a process which requires both. Now trust me guys its an easy process. The first option sounds apt for people like you and me as we have brains to invest but not much money. Money making process is as simple as Love making, you just need to know your right moves, right time, right intensity and right people. I will tell you about one quick and smart tool of Money making and that is...
EQUITY MARKET: Trust me on this one, I have seen many who made a life out of share trading. We were a group of 16 friends in college (St Xaviers, Kolkata). Out of which 9 were actively involved in share trading. They had everything they needed and all of which was earned through the use of brains and a little investment in the stock market, they started with a modest investment of 25k approximately and soon became regular traders capitalizing on the crazy concept of Share Market. The only difference between them and the rest 7 of us including me was that we did not have the guts, inclination and determination to take the risk and make some money.
Mind you its not very difficult to make money in the share market. I will share some of the techniques with you to give you a fair understanding of how and what can be achieved via share trading.
Technique 1: Identify ONE SCRIP. Study the performance of the scrip over a period of time, record the fluctuations and try and identify as many variables / factors as possible for the fluctuations. Study closely and discard the variables / factors which do not have direct correlation with the market price. Build a relationship and then invest at the right time.
Technique 2: Wait for the BUBBLE to Burst. For Eg: When the stock market crashed in the first quarter of 2008, the scrip value of Banks and IT companies was the worst hit (I too lost a lot of money), smart traders soon capitalized on the same and now when the sensex is touching 19k, I am sure they have had many holidays this season then they ever had in their entire lives.
Technique 3: Look for CONTROVERSIES. Remember the Satyam Kaand, the scrip was trading at as low as 12 per share. Lets take an example: You bought 10 thousand shares @ 12 per share. Total investment equals RS 1,20,000. Now the scrip is trading at 100 plus lets take it to be 100/- per share. Your wealth now would be 10,000 x 100 = 10 Lacs. So the investment was 1 Lacs 20 thousand and the value now is 10 lacs. You created wealth to an extent of 8 lacs 80 thousand rupees in just ONE year . Return on Investment 733.33%. Crazy is int'd. Who and what can give you a return to this extent. Thats the magic of our Stock Market.
Note: Its easy to make money in the share market but its even easier to lose money. Its a fool's paradise but still you need to be a smart fool or else you will end up getting beaten up by your spouse and children for having made them sacrifice on their lavish needs.
So when do you plan to open a D-Mat Account....???


