I firmly believe that most of the ordinary investors burn their hands with direct trading on the stock market in the long run. You could still make money in the short term by directly buying stocks – and I term that luck.
One could have the ability of making money from the stock markets, however, the greed factor does override your rational judgement and over a long period of time, one tends to take risks which are not aligned to one’s ability to cope with the outcomes of those. That leads to losses.
If all of us could make money by trading on the stock market, who would lose it ? What are the most craziest reasons for buying a stock ?
Here are some of the craziest reasons to buy a stock
- The X stock is priced at Rs 235 where as Y is priced as Rs 2462, so X is cheaper.
- It is giving a bonus.
- It is going in for a stock split.
- All fund managers are buying it.
- Tulsi (yeah yeah, Ghar Ghar ki kahani…) is buying.
- I am buying for the long term. 3 months, that is.
- Warren Buffet might buy it. My broker told me.
- What do I do with my bonus ?
- Mutual Funds ? There is no adrenalin rush with those.
- The stock market will go up.
- The stock market will go down but this stock will go up.
- My girlfriend’s father’s investment banker has suggested I buy.
- Its a bank stock, I work in a bank, I know their business model in and out.
- I work in a bank, its an IT stock, I know their business model in and out
- Their IPO created a lot of buzz but I did not get any allotment.
- India is a long term story.
- Shah Rukh Khan features in their ad.
- It will double in 3 months.
- It’s different.
- I calculated all their ratios.
- It was down 20% last week and 10% this week.
- I own a bike of the company.
- I also own a car of the same company.
- Heard they are rolling out trucks.
- It has a good support level on the charts.
- The market has consolidated. So has the stock.
- I don’t have any stock from this sector.
- I like the name of the ticker.
- They own an IPL team.
- My research shows, it’s going to be a multi bagger.
@Radhey,
Good one’s, another craziest reasons to buy/sell a stock from my experience. It has always happened to me.
“When I buy a stock, it goes down and When I sell a stock it goes up”
It has happened time and again.
Isn’t it Ironic?
@Rakesh, LOL ! You just reminded me of the stock Lupin that I sold on Wed for Rs 478 and on Fri it shot up to Rs 505.
Even my dad says the same thing when I buy a stock it goes down. I then say let me know when you buy one so that I wait for one more week and then buy it. Seriously a crazy reason!
@Vivek,
Hmm, I am not alone.
What wrong with No. 27 Radhey? I think that’s a good reason to buy a stock.
@Vivek K, So in the current state, would you buy realty stocks ? The intent is that one shoudl not buy just because a stock from the same sector is not with you.
I guess bottom up fishing is better than top down for retail investors.
@Radhey Sharma, May be not realty stock but if I have money to invest I might visit my portfolio and see which sector is missing there. And if the sector has potential I might look for a stock from that sector.
Once my broker told me that I should have pharma in my portfolio and suggested few stocks. I consider it as a good pick and it earned me few bucks as well. It may not always work in your favor but I think it’s a reasonable decision to pick stocks.
@Radhey,
Yes i would buy infact bought reality stock but only HCC. Its been beaten down like anything, there was a marginal recovery though. I think it is an excellent long term pick.