Let's understand Indian Stock Market, how it works with balancing of Sensex, Nifty and Share prices, with a example case study on TATA MOTORS listed shares.
On 1st December 2017, Tata Motors share was at INR 399
On 3rd April 2020, Tata Motors share was at INR 65
Today 3rd September 2021, Tata Motors share is at INR 295
Those who have bought this stock in year 2017, will have a significantly different view on this share than those who have bought it in year 2020.
And between 2017 and now, fundamentally nothing much has changed in Tata Motors to warrant this kind of volatility.
So, despite all the research and analysis, predicting stock movement can't be perfected because ultimately the price will depend on views, opinions and calls. Research and analysis will always have a time lag.
And yes Tata Motors is not any ordinary company, if this is the treatment to stock price of such a reputed company think what research analysis will you do for any other company
"It is easier to Buy & Sell than fry an Egg". The hidden role of chance in life and in the markets, as written by Nicholas Taleb.
One may think that the stock market seems very simple but when you include randomness to the equation, everything changes.
Bottom Line Learning: Stock Market seems very simple, but not easy.
You could be a world class Neuro Surgeon if you spent 5 years studying Neuro Surgery. But even after 5 years studying Stock Market there's no guarantee that one will be anywhere close to be a world class trader.
Remember, Too many variables involved here (Psychology, Money Risk management, Liquid Capital, Stock in question, it's History, Management background, Product plans, market Sentiment, war / famine / corona / pandemic etc etc...)
It's indeed a very demanding profession. One needs to put the heart & soul (read passion) behind it, to achieve something while most wannabes think it's a type of get rich quick scheme.
Sounds simple right....... always Buy at low and sell at high.
I am still learning.... you may also learn and earn.....
Birla WP Management Co.
read my blogs : www.YogeshBirlaCA.Blogspot.com
