INVESTING AND TRADING LESSONS FROM RAKESH JHUNJHUNWALA

Below are the excerpt from the interview...

Watch January 2011 Interview on CNBC TV 18 here..

http://www.moneycontrol.com/video/market-outlook/never-ignore-unpopular-stocks-advises-jhunjhunwala_515745.html

• Buy on rising markets and sell on falling markets.
• Do not average in trading.
• Trading is all about momentum.
• Don’t try to predict every hour and day.
• All it needs to know is know the broad direction of trend. Learn to take loss.
• All big moves start with small moves.
• You have to lose many battles to win a war.
• Big money is made in big swings.
• I have made money in spurts. I have made money in some years and not all.
• My real capital is 1 lakh, and all other is leveraged with me and my wife’s assets.
• I like to make investment when the stock is not popular.
• Only 100 in a 10 lakh traders make money.
• My investment strategy is: entry value, constant review, and a perceived exit value which changes with every review.
• You cannot imagine the end result how big a company can become. It can become bigger than you think.
• The first quality in investors is that he should have optimism.
• My risk appetite as an investor has declined over time.
• Highest risk is in buying lottery ticket, because if you don’t win the lottery, then you lose all money you paid to buy the lottery ticket.