It has changed a lot in the perspective how I used to do trading or investing. I do remember my first trade on
National Stock Exchange using the web platform on Indraprastha Gas Limited (less
than 50 shares, trading sub 80 prices). Believe it or not, I had some insider
information about the amount of dividend that the company was going to declare.
It was just Rupees 1.5, and I don't remember whether I entered into this trade
just for the dividend or something else. I had no idea at that time on the
pricing movement relative to dividend or that you don't have to pay any tax on
this income.
After ten years, it has changed a lot. Dividend is an
important factor in my stock selection criteria, and I know how stock prices
react during the dividend record dates, both pre-event
and post-event. Well, it's been a long journey, be it volumes or the transaction
amount or the instruments I now currently use day to day with ease and without any
fear.
Something which hasn't changed much, that all this shit is rigged. A lot
of insider information leaked out to the privileged few and it's very difficult
to make money with the public information if you are doing trading. A recent example should be of Oil. Oil is
falling and the OPEC is not cutting production which means that oil is going to
fall further. There was an article in Bloomberg saying that this is their
deliberate attempt to wipe out the small shale gas producers. Nobody knows
what's rigging at higher levels. Everybody knows this, and therefore, equity
investments come with a disclaimer of risk.
Stay Invested!!
vA
Stay Invested!!
vA
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