Stock Market: Am I hitting my Beginner's Luck?
I am not a veteran on the stock market, and to be frank, I started looking at the Stock market charts quite recently. I do not know the exact date but I made my first investment in August 2024, so it makes my overall journey close to 10 months now.
When I joined the market in August 2024, there was bullish sentiment, stock indices were going up and up every month without fail. Everyone was so immersed in it, that I find most people looking at their portfolio or viewing YouTube videos related to stocks tips or trading. This prompted me to finally look at the stocks as a mean of investment and I created demat account to jump in the fray.
It's only a month or two, when at the end of September 2024, Stock market start nose diving and this nose diving continued till April first week, where it indices showing that it is almost 15% down from its peak on September 2024 and where everyone portfolio started turning red.
Since I have started in August 2024, with a monthly investment plan , I do not find my portfolio red and actually I made overall profit even in the downturn.
I explained to one of my colleague , that how I picked up 1 trade in month of April, and instantly turned into 5% profit in a week to exit and again in May, I was able to do the same. Apart from this, I did some trade at bare minimum profit to preserve my capital where I felt that stock indices are not moving as per overall market sentiments.
Even in the month of March, I turned 10% profit in a trade but I picked up that trade on month of January this , my Colleague replied that I am new in the market and having the "Beginner's Luck". I am not sure, how true he is but deep inside , I do not believe that my "overall profit" is the product of beginner's luck
If it's beginner luck, then everything I had touched should become gold (I also have incurred losses) and still hold some stock that are now trading below my buy price. (Though averaging them out helped me to reach to break even in current market condition). Anyways, I am outlining my observation and strategy below that I followed in the market.
- Interest in stock market of general public is high when market boom.
- When market tank, general public become too pessimist and most of time it do not consider it as buying opportunity.
- Some people have weird logic of picking stocks and fundamental analysis of the stock, sector and it's comparison with peers is not part of their research.
- Consciously or Unconsciously, I avoided the companies that are newly listed or in market for less than 5 years though I invested in couple of IPO (and taken exit with profit in 1-2 days of listing.)
- IPO launches are in direct relationship with the direction of market Indices and not all IPO are good for investment.
- During market downturn, I was more interested in dividend yielding stocks.
- Since I made profits in bear market, so currently I believe, you do not need the bull market to make profits.
- Learn the basic of analysis (how to see if company is doing good) or read the analysis shared on respected publication like Livemint , Economic Times but clearly avoid youtube guys.
- I strictly (or loosely) followed a monthly investment plan and I am content with the results.
- As of now, I feel confident that money can be made in stock market by following above rule and following the news/rumor.
I like to know what do you think, it was really beginners's luck? What strategies you like to add in my list or what you find in my list that you are not following and find it relevant or what I am currently following is actually irrelevant in your view point.
Hope you have enjoyed it and willing to share your feedback , after all I do not want to be in market with Beginner's luck and have some solid strategy for long term goal.