Futureized
Skilled
Nice cartoon related to crypto currency by Alok.
- Thread starter Futureized
- Start date
psyph3r
Skilled
It's the same everywhere.
karamvirk47
Disciple
Stocks are based on a legitimate business, sure owner would want to charge you premiumIt's the same everywhere.
He did all the hard work of bringing up the business
It's your job to determine whether that premium is reasonable or not
But people try to judge IPO based on brand name instead.
A good brand with per share value of Rs 1000 but IPO at Rs 3000 is not as good as an average brand with per share value of Rs 1000 but IPO at Rs 1500
Cryptos on the other hand due to lack of regulation, half of them exist just because
psyph3r
Skilled
Not denying cryptos are a sham but the stock markets are a joke too, SEBI turns a blind eye to most ongoing scams.
Take the pandemic itself for e.g., when covid first hit the stocks just kept going up even with all the uncertainty, if anything was real it would have tanked by 30% at least.
As for companies with fundamentals, they don't really mean much nowadays, you should check the number of companies with high p/e ratios especially in the US stock market, most of the trading there is probably done by algos be it crypto or stocks, retail investors will always get shafted no matter what.
The PayTm guy comes across as a clown, just watch this interview and go through the twitter thread.
karamvirk47
Disciple
Markets don't look at past or present, they look at future
There is news of new variant and market corrected 15% in last week or 2, even though this new variant hasn't affected anyone's life yet
When covid first came markets did correct, not by 30 but by nearly 50%. Most of the stocks were down by 50% too
Eventually people took it less and less seriously, most business resumed and some even did better because of lockdowns. While construction companies like L&T were struggling through out, trading at 40% lower than pre covid price. On the other hand IT companies saw massive rally as they benefitted from lockdowns and regular work easily continued from home.
They mean a lot, it's an important factor in picking company for investment, not the only factor as many good fundamental companies struggle too but it's still an important factor
High or low PE depends on the risk factor
Company like HUL that makes grocery items will always sell at high PE because everyone needs their products even if war breaks out
Paint companies also trade at high PE for similar reasons
Even higher risk companies can trade at 10-20 PE which basically means in order to take entry you have to pay 10 years worth of profit and there is nothing wrong with that. Try asking some local shopkeeper with good business. Let me buy 10% of your business. Will he let you do that based on shop and inventory selling price? He will say I have good business, give me several years profit too.
Trading is a completely different thing. It's a 0 sum game. For you to make money someone has to loose. You have to be better than 50%
You should not do that unless you have gained lot of experience first
Not true at all. I can't speak for US but for Indian markets this isn't the case.
It's not stock markets fault if someone sold something expensive and people still bought it
If you buy a shoe, it's up to you to decide whether it's worth the price tag or not