Tweet Buster: Investing vs gambling, and other gems from Ian Casel

NEW DELHI: The stock market finished off the truncated week with a bang, logging solid gains on Thursday. But as it approaches Monday, what remains to be seen is if the Indian market will be impacted by the sharp cuts that Wall Street witnessed after the US President Donald Trump tested positive for coronavirus.

In today’s Tweet Buster, market experts from India and abroad weigh in on what awaits Dalal Street in the weeks ahead and share lessons for investors, both young and seasoned.

Market outlook
Donald Trump’s Covid positive status came as a big blow to the US market. Independent expert Sandip Sabharwal believes that any kind of decline in Trump’s health will not be taken too kindly by investors. “Markets are elevated, caution will not hurt anyone,” Sabharwal tweeted.

Meanwhile, value investor Nooresh Mirani shared his technical outlook for the market. He said that even though Nifty is back at 11,400, it looks tough that the index can break above the last swing top at 11,580-11,614. He also advised investors to stay stock specific.

Taking stock
A host of macroeconomic numbers released during the week gave a ray of hope that the Indian economy is gearing up to be back in full swing. However, Sabharwal believes that economic growth will remain below par for some time to come on account of weak government spending.

PMS fund manager Basant Maheshwari, too, in a strong-worded tweet asked the government to make ‘honest’ efforts to support the economy and create jobs instead of running around circles trying to seek headlines.

Investment mantras
A round-up of tweets from a number of market experts showed that their Twitter timelines were filled with some investing gems. Don’t forget to take note.

No alternative to the right research
Sabharwal says that a stock would move when it wants to, all you can ensure is that you do your due diligence as research eventually pays off big time.

Choosing right
Value investor Arun Mukherjee has an important tip to share for those who are thinking of expanding their portfolio. He says that a new addition to the portfolio needs to be better than what you already own. “It needs to raise the average, otherwise you are just diluting your returns,” Mukherjee tweeted.

Microcap investor, author and founder of Micro Cap Club Ian Casel shared a lot of investing lessons that can go a long way in giving you an edge.

How to select a stock
Casel has a four-point checklist for choosing a stock. You might want to bookmark this.

Investing vs gambling
Casel says one should not shy away from increasing stake in a company on the basis of new information and as you gain conviction. He says the biggest difference between investing and poker is you don’t lose all your money in the hand if you decide to fold.

Don’t let ego guide you
Especially guided towards young investors, Casel tweeted the need to remain ego-neutral. He even shared how he as a young investor was able to do that: Just by taking a vacation. “A two-week vacation is less expensive than being dumb,” he said.

Don’t take luck for skill
In another one, Casel says that young investors take luck for skill and often double or triple down on the stock. A trap some of you might want to avoid.