October 26, 2010

10 reasons why "retail investors" Invest in Stocks !

Through the course of my journey as an investor, I have come across a lot of "retail investors" wanting to invest for different reasons... 

While I have kept going on my mission of investor education and spreading financial literacy...particularly amongst retail investors...on the giving end...       I have also thoroughly enjoyed their motivations, perspectives and the reasoning behind investment decisions... on the receiving end...

Here are some of the most interesting conversations I have had with some of them...
(some funny, some foolish and some serious and thought provoking... )

Top 10 reasons on why and how "retail investors" Invest in Stocks !

10. I want to make some easy money (like you). I am sick of my job, tired of working 14 hours a day and I want to be rich...

9. I heard an analyst on TV recommend this stock. No, I don't remember his name, but he seemed confident. So this looks like a great opportunity.

8. I want to invest in IPO's. I have heard they are good and a lot of people made money last time there was an IPO.

7. I want to do "day trading"...and these days days you can get stock tips from anywhere, so that's not going to be a problem. I have seen a lot of people doing it and they make a lot of money too...

6. I just want to invest and try my luck. Here..take this money and do as you feel like... And don't worry... I have already considered this money lost...

5. Because anybody can make money with IPO's. It is so simple. You just have to open a Demat account and you can even apply for IPO online. And just sell it (like everybody else) on the day it lists (at twice the issue price). You don't have to be an investor to do that. It's a no-brainer...

4. I basically want to invest in a good company. No. Not the one that I work for. How could it make any profits. It is so full of stupid people.

and the smarter ones who have by now mastered the art of stock picking...

3. 900....what! NO... That's an expensive stock...we should buy one below 50, as it is cheap and is sure to go up...

2. ya, see this one....its near its 52 week low... so it can't go below that price and is simply bound to go up...its so obvious...

1. We are in a bull run... I heard the Sensex has gone up from 3000 to 21000 in last 7 years. That means, if I invest 1 lac today, it will be worth 7 lacks in 7 years.


Now the "Ellsworth Toohey's" of the Investment world know better how to trap more monkeys...

1 comment:

  1. Totally agree, easy money, no doubt especially when you don't know what to research :) nice article Vipul

    ReplyDelete