How to Avoid Loss and Earn Consistently in the Stock Market – Book Summary and Review

When we start our journey in Stock Market, almost everyone makes mistake.

Some mistakes are small ones and some are big ones. But, what matters that we should learn from our mistakes.

In initial days, it is highly recommended to read some Basic Stock Market Investment Books. Such books will help you in minimizing the number of mistakes one makes in his investing career.

Your first Stock Market Book should be the one from which, even if you have minimal or zero knowledge of Stock Market still, you can grasp the basic concept of Stock Market Investing.

Most of us start with some famous books like “The Intelligent Investor” or “One Up on Wall Street”. No doubt they are best books ever written on Stock Market but being a beginner you may find them difficult to understand and these books are written on US Stock Market.

So, if you are from India or any country other than US, you may find it difficult to correlate with your Country’s Stock Market.

In the beginning, you should start with a book which is having following qualities

• Simple to understand
• Very Specific Do’s & Don’t
• Examples of Stocks listed on Stock Exchange
• Easy to Remember
• Short in No. of Pages
• Based on your Local Stock Market (Indian Stock Market if you are from India)

For Stock Market Beginners, who are from India “How to Avoid Loss and Earn Consistently in the Stock Market” written by Famous Indian Author Prasenjit Paul is the book, which has all these qualities.

If you want to buy this book, CLICK HERE.

Let’s discuss some interesting points covered in this book

How Not to Lose Money

Everybody will teach you how to make money in Stock Market. But, most important is how not to lose money in stock market.

Generally, beginners in hope of making quick money, lose money in stock market. This book has very beautifully explained how by avoiding few mistakes you can save ourselves from losing money in Market.

Few common mistakes explained in detail with example in this book are:

• Trading instead of Investing

• Looking for Free tips and Scam of Paid & Free Tips

• Dangerous Tips from Friends or Neighbor

• Overconfidence

• Stock Broker Trap of frequent trades

How to Pick Quality Stocks?

How should you pick qualities stocks? This is also a big question for new comers in Stock Market. In this book, important techniques are discussed in easy to understand way. Some of them are:

• Importance of ROE
• Look for Economic Moat or Competitive Advantage
• Why debt is Dangerous?
• Most Difficult Task – Management Evaluation
• Pledging of shares – Risk & Concern
• Common Valuation Tools- PE Ratio, PB ratio, Discounted Cash Flow method etc with their merits & drawback – where they work where they won’t
• Comparing Valuation with its own Historical Average

All these above topics have been thoroughly explained in this Famous Stock Market Book.

Also read: One Up on Wall Street Book Summary & Review

This book has also tried to answer some tricky questions, which most of the Stock Market Investor face in their investing career for example:

• Best Time to Buy?

• Misconception in Buying decision

• When to Sell a Stock?

• Do’s and Don’ts in Buying and Selling

• Why should never regret your decision?

Conclusion

After reading this book, you will not become expert of Stock Market, because stock market learning is a never ending process, but you will be in position to avoid most of the common mistakes, which retailer investors usually make in their early investing career. This book will give you a fare idea of Stock Market Investment and answer to most of your queries which most of the Stock Market Investors (Specially Beginners) face.

If you liked this summary and want to buy this book, CLICK HERE.

Also read:

The Intelligent Investor Book Review & Summary

Top 6 Steps Salaried Person should take before Investing in Stock Market

Step-By-Step Guide to Open Demat account with Zerodha in less than 15 minutes