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How to make losses less painful?

Psychology plays a major role in any decision making. There are ample studies to indicate that poor decision making can be attributed to a few key heuristics, leading to terrible consequences for the decision maker. One such heuristic is called loss aversion. It was identified by two Israeli psychologists, Daniel Kahneman and Amos Tversky. In Decision Theory, loss aversion refers to people’s tendency to prefer avoiding losses over acquiring equivalent gains: it’s better to not lose Rs. 100 than to find Rs. 100. Studies conducted by above mentioned academicians suggest that psychologically, losses are twice as impactful as gains. Some examples are as follows, We don’t want to throw away the stuff we don’t need We don’t sell a stock that is below our purchase price just because we don’t want to take a loss We don’t sell a house for less than what we paid If we lose the […]

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Investors…Beware of these behavioural biases! – 2

Investors…Beware of these behavioural biases! – 2

In our last blog, we talked about some of the behavioural biases and mental pitfalls investors suffer from. We ended our blog with a promise of more to come! So here it is… a few more behavioural biases and ways to overcome them. Permanent bulls and permanent bears: We have this habit of hanging on to our views for too long and are able to adjust very slowly. In the stock market, there are some who are permanently bullish and some who are permanently bearish, about the market. Both generally fail to make money in the market. A general observation about analysts is that they are reluctant to change their stance (from buy to sell or vice-versa) even when the facts demand a change. Primary reason for this is the fact that the analysts have spent time and effort in coming up with those views in the first place. This […]

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How the Power of 2 helped me invest in Stocks the Safest Way…

Last week we introduced you to ‘the Power of 2’ by MoneyWorks4me and how it can help you to make the right stock investment decisions everytime.

This week, to take this further, we are sharing an interesting story with you in form of a customer’s experience that will take you through the a several benefits of using the MoneyWorks4me Power of 2 in different investing scenarios!

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Decision-Maker

The Power of 2 – for right investment decisions everytime

Choosing the right stocks to invest your savings in is always the most difficult decision for any investor. This might give you sleepless nights wondering- Is this the right company to invest in? Will this company perform in the future? Will the prices move up or go downhill from here? Will I finally get good returns or bear losses? Finding the answers to these questions and taking the right decision is the key to investing successfully.

And to help you do this, MoneyWorks4me brings to you, the Power of 2 – an experience that will help you make right stock investing decisions with unbelievable ease and speed! Let’s find out how…

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Find out how you can make your risk profile work for you!

Find out how you can make your risk profile work for you!

Have you ever wondered why your friends earned money by investing in stocks but u did not, especially since you both invested in the same stocks? This is a thought that bothers many of us, doesn’t it? The answer is very simple – Stock Investing is a game of different strokes for different folks. And this style depends on your risk profile i.e. the amount of risk that you can take on while investing in stocks. One style may work for your friend and help him earn great returns, but the same style may leave you in losses.

Hence, the first and the most critical step while investing in stocks is to know your risk profile and then decide on what kind of stocks you can invest in.

Click here to find out your risk profile and the investing strategy that best suits your profile?

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