My Investment journey of 2.5 years (I’m still young and learning just wanted to share some of it)

My Investment journey of 2.5 years (I’m still young and learning just wanted to share some of it)

Lil BG:
M (21), I started my investment journey almost at the end of 2021 (after I got my semester result where I scored a 10 GPA in 2 of the Finance subject I had choosen as optional … Ya I was super Cocky because of the result).

My first few Investment were IDFC first bank (57rs), Tata motors (313 rs), Adani Ports (sold at break even)… I started with 100rs that I got from Groww as a signing bonus and then 500 then whatever Income I made from my freelance gig and reinvestment of my gains.

Returns and current position:
MY PF distributed in Stocks, MF, Gold ETF, Gold SGB now stands at 5.2 lac (invested).
I have ongoing SIP of approx 12.5k PM Diversified in Index fund and High risk MF (as I’m young I can afford the risk)

My net realised gains stand at somewhat close to 95k (including 22k I made in crypto) + 63k I realised gain (17k in stocks and gold rest in Mutual fund) averaging at somewhat a CAGR of 17-18% (ofc I can’t make an exact calculation because I kept adding capital)

Some Reflection of my journey:

Mistake 1: paperhanded stocks, I sold most of my stocks after making single or barely double digit returns (Tata motor I sold at 400 and then re bought it at 550 level complete 🤡 move) while for my losses I kept them running untill they ate away 1/3rd or 1/2 of my Position

Mistake 2: I invested very low amount in the start so even with a large % of gain my actual return was negligible

Mistake3: investing all those low amount allowed me to buy too many stocks so I overdiversified my portfolio (Diversification is important but so is focus you shouldn’t have more than 10-15 stocks with upto 10lac capital at least)

Mistake4: Over conviction, if you researched a stock no need to get too attached to it, if their are new red flags or the stocks seem saturated just get out. I bought Trident at 16 kept adding it during its run it went till 70 something still didn’t sell even when it was oviously overvalued now I’m in the red even after making 150% gain because I kept adding due to my irrational love for that stock.

Learning:

* Researching a stock is a ovious but that research should be considered as a research. Even after putting hours of work into a stock if their are red flags you should just leave it and go find the next opportunity. In the market there are a lot of these opportunities.

• If you have conviction in the stock stay put (make sure as I said earlier it isn’t irrational conviction) no matter what people on the internet are saying as dostrovsky wrote “To go wrong in one’s own way is better than to go right in someone else’s.” …. But if you do this and lose money just know that you did a mistake in your evaluation and become better when you choose your next stock


View on r/IndianStreetBets by bl_nk67


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