New to investing in BSE market ?

Question

Looking forward to invest in BSE very shortly... i am new to this and have been reading a lot to prepare myself to get started. I have plans to earn some money in this to make a future home for my family. Can good and experienced investors give me some imp. advises. I have nt got much knowledge of Indian companies except for few.... so any information shared will be helpful. If any of you have past experience on how much,when and which company to invest can share with me pls.... need some guidance.

Thanks in advance

Answer 1

The Bombay Stock Exchange is pretty much "informationally efficient", so that stock prices already reflect known information. The efficient-market hypothesis states that it is impossible to consistently outperform the market by using any information that the market already knows, except through luck. So in order for you to make money for you and your family, you need to have a systematic informational advantage over other traders. Yet your email indicates that you don't know much about Indian companies. Unless you have a strong reason to believe that you can consistently find information that is relevant for stock prices before other traders can you should stay away from active stock investing.