Some wait to find their ways out and some just build it through taking risks and exploring. One of them is Mahbubur Rahman. He is an undergraduate student in the Department of Economics at University of Dhaka. At this early age, he has made a sparkling example of utilizing the two most valuable things: time and money. Now he'll share his journey, learning experience and notion towards the share market. So, let's start!.
Disclaimer:
Before moving to the content, we want to give a disclaimer -
All information shared in the blog is based on personal experience and educational purposes only. There are risks associated with the investing of stocks. So invest in the stock market by knowing and understanding the risks involved. This blog does not recommend buying or selling any stocks. If a person buys or sells relying on the information provided in the blog, Economics Career Alliance and the author of the blog will not be responsible for any positive and negative output. If anyone tries to copy anything from the blog, he would be legally punished due to breaching copyright.
Q: People say that the stock market is risky. What is your opinion about that?
A:Investing in stocks is volatile and risky no matter which stock you invest in. But you can minimize the risk to a minimum if you invest the stocks based on fundamental, technical analysis
Q: You are a student of Economics. How was it helpful for you?
A: As a student of Economics, one can easily identify the movements of stock's price and forecast the stock price for future.
Q: For beginners, do they require any prerequisite knowledge before investing in the stock market and from where should they learn?
A: As a beginner, one should have some basic prerequisite financial and technical knowledge before investing such as P/E, EPS, NAV per share, Dividend Yield, Return on Equity, Debt to equity, P/B ,Current ratio, Intrinsic value, RSI, Candlestick Patterns, MACD, Stochastic Oscillator, Bollinger Bands, Ichimoku Cloud, Fibonacci Retracement etc. They can use resources like Coursera, Udemy for getting basic fundamental and technical knowledge. BICM and DSE Training Academy arrange many workshops, training, and seminars for beginners who are interested in investing in the stock market. Another available knowledge source is YouTube.
Q: For beginners who really want to invest in the stock market, how are they going to start ?
A: Before investing in the stock market, I will suggest that you should invest in pen and paper for at least 2-3 months. After that, you should calculate whether you make any profits during 2-3 months. If you follow this, you won't make a loss in the beginner phase. Another important way to invest in the stock market as a beginner is by investing through an IPO (initial public offering) in the primary market because it gives higher returns and it is risk free. But you need to fulfill some prerequisite criteria if you want to invest in an IPO.
Q: What is your notion on Stock Diversification?
A: Stock diversification is very much important. If you invest just on stocks of one sector in your portfolio, there's a greater probability of losing that money. But, if you diversify the total money in different sector stocks in your portfolio, it will reduce overall level of volatility and potential risk. There is an English Proverb saying that says " Don't put all your eggs in one basket".
Q: When the market is bearish, what should beginners do?
A: Bearish market always creates a buy opportunity for investors because prices of many good companies get hammered down during that time. Apart from that don't panic and always try to use stop loss as protection of your trade to prevent excessive losses in bearish market.
Q. What would be the scenario if the market is bullish?
A: When the market is bullish, you should invest consciously and follow the market momentum. There is a saying that "The trend is your friend".
Q. What is your opinion about Trading and Investing and Which one is profitable?
A. There is no clear-cut answer to this question as it depends on a number of factors. It depends on your goals, risk tolerance, and time horizon. If you’re patient and you’re not concerned with short term market fluctuations, investing may be the right approach for you. If you’re looking to make quick profits and you’re willing to take on more risk, trading may be the better option.
Q: Who is your inspiration?
A: Warren Buffett is my idol. One day, I want to become a successful investor like him.
Q: Lastly, what would be the advice for beginners that you want to give?
A: This is advice for me to everyone who wants to invest in the stock market. "Stock market is volatile and risky.""Don't listen to anyone before investing in stock." "Don't fall for false rumors." "Do not let emotions cloud your judgement". "Always try to invest based on fundamental and technical knowledge." "Invest only your surplus funds " "Always try to analyze the stock market rigorously everyday for at least one hour." "Always try to have realistic expectations." "Remember that no one can become successful overnight."
Blog written up by: Mahbubur Rahman (99 Batch)
Questionnaire Designed By : Tamanna Tithi (100 Batch)
Designed By : Kamruzzaman Samir (100 Batch)
