Friday, February 19, 2010

My Introduction to stock markets …

When I first heard about stock markets way back in 90’s, it was always from the kind of money my relatives or my neighbors are making in the business, they all became my role models. They used to be surrounded by people asking for tips to invest or rather trade in the market.I used to think if I have money, I will invest in a 5 Rs stock , it will jump to 20 than again I’ll invest in another 5 Rs Stock and it will again jump to 20 in few days , the money will become 16 times .. Oh is it so easy, I said to myself, I just need to have 1000 Rs and I will become millionaire one day..this was how I was introduced to the stock market and I was barely 8 year old.

My father used to invest only in IPOs (Initial Public Offering, where one invest in the companies going for listing). I used to wonder why he is so conservative with investment, why not invest in the rapidly moving stocks in the exchange, the money is so huge there, you need to just bet on one and make merry for yourself.

I used to check out daily stock prices of father’s holdings, finding out whether we are making money or losing? In a classic bull market everything used to move so fast, wow we are making money even in IPOs. Everyone just used to talk about share and its returns those days. I used to feel that everyone is so intelligent, I should also know about it. Then there was an Uncle living close to our home and used to always talk big about the latest killing he has made in the market. I used to think, he must be so rich.

The euphoria didn’t lasted long, the whole market crashed, few of the people were badly hit, few sold of their houses, Harshad Mehta became the talk of the town. The Uncle living next door was never seen again in the neighborhood, people say he fled with his family due to the fear of creditors..

Then I thanked my father for being conservative, It’s not so easy after all.. but still that feeling was there inside me ,may be these people were not wise enough I can still make money in this market .. They should have short sold the stocks and they could all had been so rich.. I can do it one day, I used to say to myself..

To be continued..

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