Make your debut into stock investing - now

debt

If you are young and want to make it big in the stock markets, the timing couldn’t be better to begin your equity sojourn.

Entering the world of equities at a time when some of the ‘biggies’ in the investment community are licking their wounds promises to give you an entry point well ahead of the general curve, with bang for your buck.

Wondering how that could be? We present you with five reasons (in chronological order) why we believe that if you have been waiting on the sidelines to buy stocks, or want to make a new beginning, ‘now’ is the time.

Despite Satyam, foreign investors to stay in India

First things first

Had it been the same time last year, you would have had to make at least a dozen phone calls before your broker even agreed to meet you for opening that demat-cum-trading account. Well, can’t really blame the brokers. Money was good and so were the markets, leaving little reason for them to take that ‘extra’ interest in processing your account, unless of course you had a lump sum.

But now, with the liquidity tap gone dry and business difficult to come by, most brokers may not only vie to open your account but may also do it for free. Some of the leading banks are now offering demat account for free – an offer to grab.

Investors' body to file complaint against Satyam

Low hanging fruit

Now that 2008, pegged as one of the most devastating years in the world of equities is over, it may be time for the tide to turn. Agreed, we may still be far from a complete turnaround as the after-tremors of the financial shakeout of last year may not have fully played out yet.

But you can take heart from the fact that your entry would be at a time when there is not much to lose in the markets – for the worst, if we were to believe the growing consensus of leading analysts and economists, may now be behind us.

What’s more, stocks are available at a fraction of the price that they were trading at last year – reason enough to take the plunge now, if you were ready for one then.

Where to invest in 2009?

No hurry, so no worry

At the peak of the Bull Run, there was not much time at the disposal of the investors to make an informed investment decision.

Time was a commodity always in short supply then, for sometimes even a mere mention of a stock’s name saw it soar the next moment. That, however, has now changed.

Time, like most other commodities, is now available in plenty. Stock prices appear in no hurry to go anywhere, leaving you with ample time to do your homework and make a decision. Besides, sedentary markets even give you sufficient time to convert your wrongs into rights. Exchange dud stocks for some quality ones.

Owner’s pride, neighbour’s envy

Agreed, low hanging fruits appear attractive only as long as you have access to them, and provided they are ripe. But what raises your odds of getting not just one, but a basketful, of multi-baggers is the fact the bourses have many such fruits (promising stocks) now.

While picking the best stocks may have been a problem earlier, with time by your side, building that dream portfolio of stocks has become a lot easier. Aiding you is the absence of the penny or the momentum stock lure.

With not many obstacles between you and your dream portfolio, picking stocks will be a sure shot way to build a portfolio that will, years later, grow to be your pride and yes, other’s envy.

What the experts hope to do in 2009

When risk becomes riskier

Having burnt their fingers in the markets, some quite badly at that, most investors now have lost the appetite for high risks.

This loss in risk-taking ability offers a good entry point for the beginners.

You can add stocks to your kitty at bargain price, and stay ahead of the equity curve.

But a word of advice. While the market does appear ripe for beginning your long-term investments, remember to keep greed at bay.

More India business stories

For it was the ‘greed-is-good’ ideology of the present day market participants, aka ‘The Children of Gordon Gekko’ (the fictional character from the film Wall Street) that led to the devastation in stock markets.

SEARCH