In the first flush of enthusiasm of investing in shares, one reads many websites, studies bulletins, contacts brokers for advice, and wishes to master the subject. Next, one ponders whose services to avail as a broker and how to become a multi-millionaire within the shortest possible time! One sees the television channels, the specified pages in the newspapers, and wonders how much time and space is provided by the print/electronic media to the share-news! How the mergers and the acquisition spree between the different companies goes on with unabated speed. With lots of hopes, one buys certain shares, with the best of the advice available. (One thinks so!) Soon one suffers the initial shocks when the prices of the shares that one has purchased are going down day by day. One recollects those events of the past, the individuals and the brokers who encouraged him for the said purchase, and stands disgusted about the recurring losses. On a careful analysis of the situation, one comes to the conclusion that it is no use consulting this or that man, and depends upon own researches. One stops blaming others, and does self-analysis and decides to take over the stock portfolio management upon him?and that perhaps is the beginning of one's prosperity!



The immediate advantage of self stock portfolio management is that you save the brokerage. This is the sum that you have to pay to the broker, whether your buy or sell the shares, whether you gain or incur losses. So far so good! But before taking such a vital decision, take care that it is not a drastic move borne out of frustration. When you are confident, you can handle your own affairs? that is the best option. In this process you learn quickly and the lessons so learnt are parts of your self-education and permanent syllabus.

For proper investment decisions, you need to apportion time for the necessary research and study. Just because you are short of time you can not experiment with bad and doubtful investment decisions. Modern investment manages are clever enough to extract from your pocket, many types of fees like annual fees, inactivity fees, slippage and management fees, and even out of pocket expenses if site visits are involved. You save all these. If you are able to manage your investment online, that is even better.

Knowledge about money mattes is a potent weapon. Remember that investments firms are there to make money, to earn profits and that can be done at the cost of their clients only. If the management is honest and business-like, it may work with the avowed objective of serving the customers. If it is otherwise, it may work to promote the interests of certain weak companies, indulge in underhand dealings, and deliberately mislead the clients by tendering wrong advice.

Pay attention to some fundamental principles before you initiate this good adventure for your own benefit.

Conduct your own research and study the subject of shares from every possible angle. Think that you are appearing for a competitive examination. If you read with the winning spirit, the chances of your success are more.

Plan diversification right from the word go. It is preferable to invest in a dozen shares from different segments, than to invest heavily in one company, howsoever bright may the prospectus. The share-group as a whole needs to withstand the shocks that lay in wait for certain shares, due to unforeseen circumstances. Work with a realistic approach, and do not be carried away by the gimmicks advertised on TV channels and special magazines devoted to share market. Such publishing companies again are in their business and to create sensation is one of their important tools to increase circulation and advertisement revenues. If it is so easy to get rich, why don? such companies get rich quickly?

Proceed slowly with a disciplined approach. Since you have taken the important decision, should something go wrong, you can only blame yourself and that should never happen!