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How do people lose money in Stock Market?

On 17th July 2018, Govt announced that it is likely to infuse about Rs 10,000 crore more in PSU banks. The names weren’t disclosed yet.

You and me, the retail investors were waiting for government to announce the name of the banks so that we can invest our money quickly in the same stocks ( As all Public sector banks are trading at their 52w low).

One thing we didn’t notice and that was:

(PNB was also up about 7%, I didn’t take the screenshot)

The very next day economic times published that government has chosen five public sector banks who will enjoy this infusion and that were:

Insiders already knew it and they book the profit much earlier than us. Strange!

Now it's our tern, we rushed to buy them all in a view that these stocks will surge more and we will make money.

Result:

Poor retail investors. I don’t know why SEBI is ignoring this incidence.

Case 2: Date : 19 July, 2018 19:27

Alembic Pharma was about to receive EIR for Karakhadi API facility with this, all of Alembic's manufacturing facilities for international markets are FDA-compliant.

Guess what?

Just about two weeks back, stock surged more than 10% and corrected again more than 8%.

Most of the seed based stocks already rallied 10–20% just a week before news was officially announced. Is it a co-incidence?

The company has lots of things to observe, See the financials, concentrate on ratios and margins, compare with peers, study about promoters, keep an eye on liquidity, make sure you know the debt, know future plans, forecast the scope, speak up with indicators and press BUY button. That's how your wisdom will save you from a massive destruction.

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