A blog of our college gang that we have often referred to as the Matunga Fishing Club

Tuesday, May 13, 2008

The stock market survival guide - I

Try not to get a heart attack.

As a novice investor I am biased towards deposits as safe investments. The reason is that the chances that my invested principal is lost are virtually zero. (Those who don't know what principal here means, do 10 sit ups as punishment for not paying attention in high school mathematics class). However with the market there is always news about people losing a fortune and falling ill when the market crashes. I remember a friend of mind telling me about an uncle who got a heart attack after suffering loses in the market. Thus I think most of these people would be the ones who are so highly invested in the market that it is a little beyond the comfort zone.

Thus given the risk of loss, I think it is best to invest only as much as one can afford to lose without falling ill (or metaphorically speaking - "getting a heart attack").

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