How to invest in the stock market as a beginner

    

    The recession induced by the ongoing health crisis brought about many changes to the world as we know it. But many business-minded youth and adults took this as an opportunity to invest. Guess what? So did I. 

But unlike many of them.... I read up on articles, research papers and books in order to find out how exactly to do it well. After all, I'm a young economist...We like to make calculated decisions. 

A land of risk and rewards is the way I see investment. I agree... I too am still a rookie at this. 

I'm not here to convince you that you'll quadruple your principal amount if you follow my steps.... There's no way to predict the future.... But here are a few tips that will help you get a better understanding of the market in order to make better decisions for yourself.

1. Know current events 

Knowing what's happening in the world isn't just useful for your entrance exams and job interviews. If you have invested in a company or are thinking about it...you have to be aware of what's happening in that company or industry. News about any change in management, big deals, scandals, losses, innovations, court cases...they all make it to the newspapers and social media. So know about it and stay aware. This is one of the things that molds investor/business expectations and this is reflected in the stock market.

Even past events could be significant as some of them either made a company's reputation or destroyed it. 

2. Buy cheap, sell costly

Many investors make the mistake of buying when a stock is costly and selling when its cheap. Your goal is to appreciate the value of your stocks and maximize your profits. So, buy stocks when it's priced less than its usual value and sell it while its value is peaking. Some investors even do a calculation called "Value investing" to find out the intrinsic value of a stock.

3. Study historical stock and dividend data 

Its freely available online to view and it's fairly easy to analyse with all those fancy graphs. Of course, you can't predict the future with the past, but if you see a company come out of several crises....you'll understand the resilience and discipline of their management. So even though no company is immortal, you would get an understanding of which company has a good chance of fighting every adversary that comes its way. 

4. Know the products and services you and your friends/families love 

Invest in products you believe in and are confident in their potential to succeed. Investing is all about giving a good innovator and business, the money to be able to do even better in the future. 

5. Don't expect quick returns 

It takes a little patience for the stocks you buy, to grow. Don't be impatient, you can do something else which you wait. Check it on it periodically though, not all stocks are destined for success!

6. Be weary of shady stocks 

"A" group shares tend to be the safest type of shares as they are highly liquidable and tend to have steady growth. The other shares (of T, S, TS, Z, B and other groups) while being more volatile, hence having higher probability of rising suddenly, are extremely risky for a beginner. Buy other kinds of stocks, only once you are aware of all the risks they have, are more experienced and when you have an appetite for it. You need not buy other types of shares at all if you don't want to.  

7. Read financial reports 

At the end of every financial year, a large company prepares their financial report for the public and potential (and current) investors. It's usually available on their site. See their profits, losses and capital. Some may even mention new projects in the works of launching. It's a very interesting document that really makes you feel like a real investor. 

8. Don't check your stocks every day unless there's a reason to

Unless you know of a major crisis in the industry or company, there's no reason to check the share prices of your stock every day. It will only stress you out unnecessarily. Check your share prices every few months or once a year...that's more than enough. 

9. Don't believe in stock market influencers

Many people follow every move of big business men and investors. I'm not sure if anyone has ever made money out of it though. Many such influencers buy their stocks long before they announce it. Then, because of their announcement, they artificially inflate the value of the stock and make their profit out of people's naiveness. Don't fall for the trap.

10. Invest in other types investments

There is a real risk in stock markets. Don't shy away from other less risky investments that could keep your money safer. 

11. Learn about the taxes you'll need to pay 

Taxes aren't fun....but it's your duty as a citizen to pay them if you fall under a tax bracket payable to the government. Stay organized and aware of areas to put in your money for tax deductions instead of running in trouble later on. 

Recently, there was a change in taxation by the new tax code. Earlier, the companies would pay an amount of tax for dividends they give, now the tax has been shifted to the investor. (1)

Like the above example, there are many important laws you will need to take care of now and when your wealth has grown considerably. Don't shy from the challenge...money is a headache, but it's also a power. 

12. Don't treat your stocks as a showpiece

Don't just keep it in the share market forever. I don't understand people who just store shares, never sell them nor use that money for themselves. What's the point of all that wealth if you can't use it for yourself? I agree.... It's being used for productive purposes in the company you invested in. But don't you want to eat the fruit of your hard work instead of just viewing it?

It makes sense to not sell all your shares at once. But by just keeping it in the market forever, you never know when your golden stock's value will drop down and fail. So when the opportunity comes up... consider using it sometimes. 

13. Learn about the various investment strategies

There are many investment strategies that are popular among investors. Some of them are: Value Investing (buying stocks at a discount), Growth Investing (buying potential), Momentum Investing (riding waves), Dollar-cost Averaging (buying at regular intervals) and Barbell Strategy (high risk, high returns and low risk, high security). Do Google them for more information.

14. No need to feel bad about missed opportunities 

Lots of investment teachers talk about all the missed opportunities of their lifetime. They talk about how great it would've been if they had invested in Warren Buffet's stock when it first came into the stock market. Here's the thing, for every hidden-treasure stock that makes it big in the future, there are hundreds of similar stocks as well. You can't predict the future so don't be hard on yourself for not knowing. 

15. Never stop learning 

Go to Investopedia, seminars and read books about investing. And hopefully, over time, you'll build wealth over the stock market. 

References and further reading:

1). India to consider shifting dividend tax to investors from firms, Economic Times

https://economictimes.indiatimes.com/news/economy/policy/india-to-consider-shifting-dividend-tax-to-investors-from-firms/articleshow/72035822.cms

2) Investopedia https://www.investopedia.com/

3) Rich dad, poor dad - Robert Kiyosaki 

4) Fooled by Randomness - Nassim Nicholas Taleb

14 Perks of Diary Writing

    

    Like mentioned earlier on this blog, I have been writing a yearly diary since the year 2012. It was a fad I wanted to follow that I kept seeing in movies and shows…and you know what? I’m glad I did. It has helped me throughout the years for multiple reasons. 

There is something romantic about picking up my diary anytime during the day or night and just writing my heart out. The way the pen scratches and makes an impression on the paper…the way the ink glides and guides me on the path to balance and peace…and the way I don’t notice how many pages I’ve written until my train of thought reaches its station. 

Diary writing has been the reason I run out of books to use for it every few months. I think for just this year, I’ve already used up three 200-page books! But it rarely feels like a task like it used to feel when I just began. Writing just comes naturally to me now and some might say I keep way too many diaries!

Before further ado…let’s get into the many perks of diary writing:

1. Improves grammar and writing skills

Here’s the perk I noticed instantly after reading past diaries. In my first diary, my hand-writing was horrible and unreadable. It had too many grammatical & spelling mistakes to decipher. In just the next year’s diary, the writing actually made sense and the improvement was drastic. I was surprised.

2. A place to vent

My diary is my preferred place to vent out all my uncomfortable feelings like sadness or anger. It feels safe to write all the curse words and depressing thoughts you have ever thought about. And the best part of this is…the feeling of relief and well-thought out conclusions you come to after a long session of diary writing. It feels like therapy. No need to burden another person with your problems and the expectation to understand…nor having to wait patiently for your close one's availability…just pick up your diary and a pen and get on with it!

3. More fluid writing

Since the first years of writing in my diary, I’ve noticed how easily I can write sentences that are connected to each other. It isn’t a random rambling of detached thoughts and people who have read any of my essays lately, also testify the same. 

4. Better emotional control

Because of repeated self-soothing and compassion that I accomplish through diary writing, I feel more at peace and control of my emotions. Emotions don’t overwhelm me as much as it used to (it could also be the fact that I’ve grown a lot since then). I can now more easily hold on to anger or discomfort and express it in a healthy way like diary writing. 

5. A healthy coping mechanism 

During phases of my life in which I used to not write in my diary as often, I noticed how easily disturbed I was and how much more likely it was that I’d indulge in unhealthy coping mechanisms like stress-eating, temper-tantrums and so on. I really felt very mentally exhausted and overwhelmed in the times I didn’t or couldn’t write it out which caused my mind to feel like stagnant water. 

6. No rules 

A big perk to diary writing is that there is no way to do it wrong. You create the rules and you are the only authority. If you want to write a 3-page manifesto at the beginning, or imagine what would it take to break into your school, or rant about your annoying friend for 10 pages…there isn’t anything or anyone stopping you from expressing yourself. Go do it!

7. Improves memory

I noticed how much more easily I can hold on to details of my day because I normally do so to be able to write down that detail in my diary at the end of the day. Many of my friends also agree that when it comes to details of my day, no-one can beat me on my recall. (Given I was paying attention)

8. Improves conversation

The thoughts that I express in conversation has greatly improved because of years of training to write my thoughts in diary. I can put complex feelings & experiences into words and this is what helped me in my conversations with people in real life. I can express myself to others more easily when I can express things to myself well. 

9. Opportunity to decorate

Diaries are an amazing opportunity to decorate! Be it the cover or the pages in between. Use all the cool art supplies you have and go crazy. Use beads, ribbons, cut-outs, drawings, tickets, stickers…write the year in calligraphy, block or graffiti-inspired fonts. Do whatever you want and be pleased with your creation. 

10. A treasure chest of good (and bad memories)

This is my personal favorite. I love how easily I can journal about my most beautiful memories of my life as they happen. I can remember every detail of it. I don’t have to worry about forgetting the good times cause it’s all there in my diary, systematically dated. I have so many memories, etched into paper that I can always go back to and relive. 

11. Tracking goals, habits and appointments

It’s hard to keep track of everything you need and want to do. This is why journaling helps you know what your goals are and actively pursue them. You can track your progress on building or breaking a habit or your next dentist appointment or even a school function. It’s easy and it’s all in one place. (And there’s no way your book’s battery will die, unlike electronics)

12. Feel them later

There have been many times when I have scribbled away a difficult feeling or experience and then referred to it later after I’ve calmed down to re-evaluate myself and my reaction. This helps me look at my responses to stress and assess what beliefs/biases are hurting me & my life.

 

13. Improves writing speed and stamina

In the process of writing everyday or every time you're overwhelmed, you find that you can easily write several pages without tiring over time. Suddenly, writing exams and assignments are easier and you get done faster than before. Even note-taking during classes and lectures are effort-less after starting this adventure. 

14. Looking into the deep past

It’s just a fun thing to do I guess, reading old diaries & seeing how the problems you once faced & cried about, are long gone. It’s hilarious to read about the people I once liked and the friends I once had. I love the nostalgia. But I love seeing myself grow and discover this beautiful world, again and again. It gives me a sense of gratitude for having this life and it also gives me hope imagining an older, wiser version of me looking back and laughing at my present-day problems that also got resolved eventually. It’s a magical experience of pseudo-time travel. 

There are times of great stress or change when I feel my sense of self spinning. It's so uncertain about who I am sometimes that I look back to see who I used to be in my journals. It gives me a sense of stability despite always changing and growing through life.

Did I convince you to keep a diary? I certainly hope I did. 😊

How to easily learn French

    I've been studying French since the past few years. It all started back in my high school days, but I hated it back then. Giving myself some time, I really began appreciating the process of language learning and so I resumed learning the language, this time on my own, via an app called, “Duolingo”.

After that, I liked French and therefore, I decided to take it up again by studying it in the formal education system (since we had that option).

As a student, I get bored easily. Even when it comes to studying subjects I like. But I also wanted to do well and so I tried many ways to learn this language. Here are the best ways I found to learn French :

1. Establish why you want to learn the language 

Is it for travel? Is it for impressing your friends? Is it to get a good grade? Is it just for the sake of learning something new?

Get to know why you want to do something so that in times you feel demotivated, you can remind yourself why you took it up in the first place.   

2. Duolingo

If you wish to learn the basics thoroughly, this is a good way to. It's also helpful to get your vocabulary nice and sharp. You will get familiar with French words which will enable you to take up bigger, greater challenges in the language.

3. Watch a French show in a genre you enjoy

Or a show you already like, but in French. Use no subtitles at all. This makes you force your brain to listen attentively to the way words are pronounced and the conversations one can have in the language. It helps you with your sentence structure, keeps you interested and helps you speak the language for real.

I used to watch “The adventures of the Miraculous Ladybug and Chat Noir”. It was awesome. I highly recommend.

4. Study a little everyday

The difference between learning a language versus any other subject is the fact that you can learn other subjects the day before and probably manage passing a test on it. But when it comes to languages, you can't really do that.

So do learn a little everyday, even if it's just for 15 minutes. Just make sure, it's 15 minutes of dedicated study time.

5. Write things you would normally write… In French.

Your shopping lists, your planner, your diary… at least a few words/sentences will be helpful for you. This ties the language to your everyday life.

6. Google translate

This goes without saying. Download the offline French pack also if you need to. I can't explain how helpful this application has been to me. Most of the translations are extremely accurate. If not, there's always a dictionary.

7. When translating passages from French…

Try to find out the meaning for each word… Don't just blindly write all the translated sentences.

8. Travel to a French speaking place if you can

I went to Pondicherry. I went for a mass there in French. There were also many native French speakers around the place. I felt super dumb for not understanding much anything they spoke. But it was a wonderful experience, it reminded me of the fact that when it comes to fluency, it's an ongoing journey, I mean, I've been learning English since I was a child and I still learn new words every other day!

9. The curse of the similar words

French and English have lots of similar words that confuse me. Even within the French language there's similar words. Polish yourself in these areas, as they surely play tricks on your brain.

10. Try speaking it

Start with one/two word responses and work your way to more advanced  sentences. I'm still working on this one.

11. Switch the language on your phone to French.

I'm not talking about keyboard language….that would be cool too. I'm talking about your whole device. Try it out for a few days. See if you survive. (Try this out only once you're moderately knowledgeable of the language.)

Learning French is great. And so is learning other languages.

You could try these tips in combinations or use all of them. Tell me how it goes using the contact form/comment section below.

Did you find this post helpful? Do you have any other ideas to learn this language? Please let me know. 

*Please note : I said "How to easily learn French". Learning a language can't happen overnight.

Know more about my French Tuition

How to make many friends

I love all my friends and sometimes I wonder how I have so many. I mean, seriously, cause I spend most of my time eating or sleeping at home.
It is a surprise isn't it? 
Well, everyone likes a little company no matter how much of an anti-social or a social butterfly they are.
And in my adventures and misadventures in pushing myself to go and meet new people, I learnt many things which I shall share with you in this post...
1. Be sensitive to facial responses while speaking
Be acquainted with sufficient amounts of EQ.
Because by these, you'll know how to direct the conversation.

2. Trash the shy label 
Many people who think they're bad at making friends are often told that they are shy and reserved. Then those people accept those labels and conform to it. Well guess what? I know it, cause I've experienced it. It's best to leave such labels in the trash, whether or not you like the person who gave it to you. 

No person really is shy, they just need the right kind of people to feel comfortable enough to talk and be themselves. 

What is shy anyway? 
3. Throw away prejudices and baseless judgments about people you've not really met personally 
We miss out a lot of great friends because of our assumptions about them or their types. Give people a chance....at least one?

4. Start with a hello
Even if you don't know how to initiate a conversation with a stranger, just say a friendly "Hello". It's like saying, "I am acknowledging your existence". Maybe they will ignore you, maybe they'll be the ones to start a conversation with you or maybe...

5. They could be rude
But it's still good to try. Is saying "Hello" really that offensive? No. But at least you kept the door open and that's what matters, regardless of whether or not a person took that invitation. Besides, there are many other awesome people that could be your friend.

6. Help someone
The easiest way to talk to someone new is to help someone clearly struggling, by asking them if they need help. If they reject you, again, it's fine. At least they know you're there. 

7. Attend contests and events
Another easy way is to go to such places that encourage meeting new people. Never mind those over-competitive people though, they can be mean at times. 

8. Push yourself
Force yourself to initiate friendships and meet new people, it really benefits you. Try, eventually, you'll gain confidence.
There's no-one who isn't at least slightly afraid of rejection or embarrassing themselves. It's human to feel this way and even if you mess up, they'll probably forget it in no time anyway. (Also you should be proud that you tried, regardless of results and learn from every opportunity you get)

9. Keep realistic goals
Start small and make it an aim to gain people's trust, appreciate them for being themselves, take care of them and help them believe in themselves. Friendships are all about helping each other be the best they can be.

10. Keep a friend crush list
A list of people you think are completely awesome and you would like to befriend in the near future. This should at least exist in your mind. And please do try to talk to them someday.

11. People can suck
Having a lot of friends are great but they can be mean and terrible sometimes. No person is perfect no matter how it seems on the outside, give them a break, they're human. And guess what? So are you.
(Though you totally can cut ties with friends who are particularly hurtful and toxic even after you've tried telling them how their behavior is affecting you)

Happy befriending, I guess?