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What kind of investor are you?
February 27, 2004 14:30 IST
In India, a democratic country that believes in freedom of speech, every Indian citizen has a view. And when it comes to stock markets, it is often very difficult to change the perception.
As someone rightly said, there is nothing called a long-term investor or a short-term investor, but there are informed investors and uninformed investors.
We believe that there is one more class, apart from this set of investors - the trader or punter or the sattawalla.
Can you spot YOU?
| Informed Investor | Uninformed Investor | Trader/Punter/Sattawala |
My view on… | | | |
Stock market is | An efficient platform | Scam | Casino |
Equities are | Better investment avenue | Very risky | Fast money |
Risk profile is | Moderate | What is the risk? | Who cares? |
Return expectations is | Moderate | If it works, it works | Minimum 100%, in one month |
Investment horizon is | 3 to 5 years | Short-term works | Less than 1 day |
Buying strategy | Regular investor | When market is close to peak | What strategy? |
Fundamental analysis | Works | Makes sense, but… | Who cares? What is the target price? |
Company management | Extremely important | Indifferent | Does not matter |
Technical analysis | Not my cup of tea | Seem to work at times | What is the target price? |
Research Report is | A balanced scorecard | What is the target price? | What is the stop loss? |
Stock price reflects | Growth prospects | Not so clear | Don't care |
A broking firm is the one that | Does what I say | Knows in and out of markets | Gives tips |
Media/Newspapers are | Used as updates | Experts in equities | Source for tips |
Harshad Mehta/Ketan Parekh | Unlikely role models | Made money | The Gurus |
Rumour mill | Doesn't get swayed | Easily swayed | Fast cash |
Before investing a single penny in stocks, just identify 'Who am I'? The rest should not be difficult.
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