What Investment mistakes you made that you want others to avoid?

TEUser2K1 said:
Reasons how loan settlements can ruin CIBIL score:

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6 Simple Ways Improve CIBIL Score After Settlement

Improve CIBIL Score After Settlement - How to raise your CIBIL score after loan settlement. Explore more to learn about the process for keeping the score high.
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No. I think i just wrote the wrong word for it. It's called loan pre payment and it does not affect CIBIL score.

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Advantages of Prepayment Part & Payment of Personal Loan

Know more about Personal Loan Part Payment, Compare TOP Indian Banks. To know the advantages in the prepayment or the part-payment of personal loans visit here.
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> Infact, your credit score won't change much if you prepay your loan unless you close the loan on time.

From article linked, can't understand what this means.
 
6pack said:
No. I think i just wrote the wrong word for it. It's called loan pre payment and it does not affect CIBIL score.

www.bankbazaar.com

Advantages of Prepayment Part & Payment of Personal Loan

Know more about Personal Loan Part Payment, Compare TOP Indian Banks. To know the advantages in the prepayment or the part-payment of personal loans visit here.
www.bankbazaar.com www.bankbazaar.com
Click to expand...

TEUser2K1 said:
> Infact, your credit score won't change much if you prepay your loan unless you close the loan on time.

From article linked, can't understand what this means.
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If you guys mean loan foreclosure then that doesn't affect CIBIL at all.
 
What should be the ideal age to buy a house? Should I even buy a house if my parents already have one?

Some good decisions I made
Started investing when I was 20 (mutual funds, trying stocks)
Started learning about market and finances
Got term insurance under 22 age
Bought a plan in which I will receive some amount after 8-9 years upto the age of 40 along with some insurance

Bad decisions
I do not exercise currently as I don't have motivation and I know that it can be very expensive on health in long term
Do not have medical insurance
 
Even asking this scares me, still asking, is there any guarantee of profit by investing in stock market? In 2003-04 we lost more than 10 lakhs. It pqrtially ended us. Anyone who has been able to continually book profit from market, please inform.
 
sauravghosh said:
Even asking this scares me, still asking, is there any guarantee of profit by investing in stock market? In 2003-04 we lost more than 10 lakhs. It pqrtially ended us. Anyone who has been able to continually book profit from market, please inform.
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Do not do f&o trades, do not fall for "tips" from telegram channels, and don't put all your eggs in one basket.
Try to study how charts are made and how to predict price behavior.
 
SkullSmazer said:
What should be the ideal age to buy a house? Should I even buy a house if my parents already have one?
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Depends on your life plans..
If you are in a stable job, don't plan on moving much and getting married soon, then yes it makes sense buying a house.
Else just rent and invest the extra which you would have otherwise payed as EMI.

You can even consider buying a commercial space and rent it.
 
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sauravghosh said:
Even asking this scares me, still asking, is there any guarantee of profit by investing in stock market? In 2003-04 we lost more than 10 lakhs. It pqrtially ended us. Anyone who has been able to continually book profit from market, please inform.
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There is no guarantee of anything in the market, and i say this while being an active profitable trader.

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Most people will be better off by investing passively and not trying to trade and focus on their careers.

Just do SIP and invest for decades in simple Index funds such as based on Nifty50. Along with that one can have some sort of allocation plan between Equity and debt funds ( just simple high rated short term funds will do). This alone is good enough, you might get say 10-15% annualized returns over very long term. This has decent chance of beating inflation. Tradeoff is that equity can be very volatile and you can get crashes of 40-50% or more few times a decades and smaller ones more often.
Additionally, One can consider including long term gilt and gold as they might have some negative correlation vs equity and you can rebalance when market crashes and vv. And perhaps not be too focussed on Indian stocks only to reduce india specific risk if needed - so far i think it has not been so bad.

Dont invest to meet short term needs.
Dont sell on crashes. They can be good time to buy, but dont assume immediate recovery and/or no more crash after you buy. Best returns come after crashes.
Dont look too much on your returns day to day and get emotionally attached to the numbers ( and avoid making mistakes)
There is no guarantee of anything, as long as India keeps growing we might be fine. But we can have lost decades too ( i think 90s were like that for us )

freefincal is a good site to get more info/ideas.
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Investing on your own or even trading is a profession that needs skills ( and some luck helps too !). It takes years to gain useful knowledge and to convert them into skills and also to develop the neccesary probabilistic mindset and also to develop resiliance to last through tough periods.
Investing in bull markets ( just buy the dip ! ) might be somewhat easy (guessing) but real test comes when you get in stressful situations.

Not saying one should not do it, but one must be interested and be prepared to work and apply, not expect instant results, not be afraid of failures and not take too much risk. In fact in initial years, i think its best to keep capital small to lose less.
 
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sauravghosh said:
Even asking this scares me, still asking, is there any guarantee of profit by investing in stock market? In 2003-04 we lost more than 10 lakhs. It pqrtially ended us. Anyone who has been able to continually book profit from market, please inform.
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How did you lose 10L?
 
goDofWar_skr said:
If you are in a stable job, don't plan on moving much and getting married soon, then yes it makes sense buying a house.
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Okay so it will come down to marriage only. I think if my spouse can have a job from remote then we can even stay at the parent's house and reinvest rest of the money
 
Mr.J said:
How did you lose 10L?
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Vast majority of it was expired options. Rest was done by classics like GTB HFCL Satyam etc. Hard to recall stuffs from that long ago.

@Tracer_Bullet Thanks for the suggestion. that's a bit too much for me, but my main aim was to make some short term profits. I get some recommendations from a trader (where I had ac previously) for short term calls. Right now really long term calls are not feasible for me. I learned a lot back in that time, including how to read charts/pattersn, how to study int. market, used to attend so many seminars, but none of that matters when global depression sets in. All theory, remains theory. Didn't even look at market for over in 5-6 years. But was wondreing where this is a right time to invest in small portions.
 
sauravghosh said:
Vast majority of it was expired options. Rest was done by classics like GTB HFCL Satyam etc. Hard to recall stuffs from that long ago.

@Tracer_Bullet Thanks for the suggestion. that's a bit too much for me, but my main aim was to make some short term profits. I get some recommendations from a trader (where I had ac previously) for short term calls. Right now really long term calls are not feasible for me. I learned a lot back in that time, including how to read charts/pattersn, how to study int. market, used to attend so many seminars, but none of that matters when global depression sets in. All theory, remains theory. Didn't even look at market for over in 5-6 years. But was wondreing where this is a right time to invest in small portions.
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1. Trading haphazardly like this is foolhardy. Instead of ST profits you get losses most of the time. If you get profits, one becomes overconfident and then returns all and more back to market. This is the reason most people lose money in the market. Only 2% of active traders are able to beat FD returns over 3 year period as per Zerodha founder.
2. Cannot depend on other people's calls
3. If you want to learn trading ( it will take 3-5+ years and no guarantee of success), look at the work of Adam H Grimes. After wasting a lot of time, that is what helped me. But it takes effort and we cannot copy 1:1, will need to adapt. I dont trade like him but do use concepts and my own research.
4. Investing in Mutual funds/Index is not difficult at all - it is probably the best way to protect your savings from inflation. But must be able to buy and hold (and keep buying via automated SIP if you are earning money) for many many years and dont vomit looking at losses during crashes like corona/dotcom/2008 etc. That is the best time to invest. And it works, it helped me when i was not trading. Adding other assets like good quality debt and perhaps gold can help reduce the volatility. I think going through basic investment process is well worth the effort and everyone should look at it rather than waste time and money with half hearted attempts at making short term money.
 
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sauravghosh said:
Vast majority of it was expired options. Rest was done by classics like GTB HFCL Satyam etc. Hard to recall stuffs from that long ago.
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That's what I assumed. You lost money by trading, not by investing. And no matter what anyone says, it's gambling. Plain and simple.

For someone to lose 10 lakhs via investing, they need to have invested something like 30-40 lakhs in couple of bad stocks and sell those stocks when they're down by 20-30%. But if that person can afford to invest that much in just couple of stocks, they won't be much concerned about such loss because they'd have other investments to cover it up.
Tracer_Bullet said:
1. Trading haphazardly like this is foolhardy. Instead of ST profits you get losses most of the time. If you get profits, one becomes overconfident and then returns all and more back to market. This is the reason most people lose money in the market. Only 2% of active traders are able to beat FD returns over 3 year period as per Zerodha founder.
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Exactly. Trading is a negative sum game.
 
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