Skip to main content

MR. market concept

 

Who is Mr. Market?      Well , He's a character created by investor Benjamin Graham in his 1949 book 'The Intelligent Investor'.

Mr. Market, who is moody, regularly offers to sell his share of the business or buy the reader's share As in the book of 'the intelligent investors.



so , MR market generally represent stock market of any country or any abstract things as human and how to interact with that person , when to do transaction and when to buy or sell your share. it simply represent an abstract thing as Human to clearly understand market.

suppose you are making a new business and you have a partner whose name is     MR X /MR market and this person is ultra moody and he act accordingly to his mood. He always comes with an offer for you and its your choice to accept or reject but he never forces you for taking his offer.so , when your partner mood is good and he offers a deal to you like lets say , if you have Rs 1000 worth share and he too has another Rs 1000 share , he comes to you with an offer to give your share worth Rs 1000 in 6/7 thousand and give your share to him but when his mood is bad then he comes to you to ask to ask to give your share worth Rs 1000 in just Rs 400 or else take his own share of Rs1000 in just Rs 500.

so he act according to his mood and he offers such offer everyday without being accountable about yours yesterdays act or rejection of his offer .so this MR Market here is NEPSE for us IN Nepal.

Mr. Market creates ups and downs in stock prices all the time, and prudent fundamental investors are unfazed by them since they are looking at the larger, long-term picture.

just like this ,NEPSE works .So , when NEPSE  goes green then market goes up and when its red market goes down. Always keep in mind that :

PRICE IS NOT EQUAL TO VALUE

-price is what you pay.

-value is what you get.

so if NEPSE 's market is reaching high  ,sell the share and when its down buy the share.

Market is not always stable .      buy when market is BEARISH OR ITS BEAR MARKET AND WHEN MARKET IS BULLISH. But for this we should do technical analysis and trend analysis.






so , we should decide when to buy and when to sell and unless you sell ,there is neither profit nor loss. there is no actual loss how much the market goes down  without selling it.







Comments

Post a Comment

Popular posts from this blog

About ADBL

 Agriculture development bank  limited was established in 1968 (2024 BS) under  the act 1967 .it is a commercial bank of Nepal generally engaged in the promotion of rural area and farmers helping the government of Nepal to accomplish the task of making NEPAL a "Prosperous Nepal , Happy Nepal " by providing best quality service  through its widespread network .it has 51% share of government and 49% share of general people and it has been listed in share market and SEBON with its worth of about 550 in an average and is providing good dividend to its share holders too. Most of its share holder are customers and employees.  Having Glorious history of about 54 years with about 1.2 million happily satisfied customers , bank has celebrated its 54th anniversary  making it as a leader in the agricultural sector of NEPAL with its customers , different services and products.it has done its investment in agriculture , industry , trade , commerce and households . just l...
Post a Comment
Read more

establishing goals.

 finding out your specific goals and objectives like knowing where you want to go and making key result about them   and knowing  or marking  your progress is a key term for this. like if we want to  see books online . this will be our objectives and that will give key result like selling of 100 books per day .this whole process will target our motive and helps in achieving it.there are many way of setting goals but what matters is to go with it productively.
Post a Comment
Read more

Fundamental Analysis in summary

  Fundamental analysis is a method of examining  economical and financial status of any company or organization so that it can be helpful in decision making whether to buy or not the share of the company. it will help you to remove all the dilemma that you are having when you have to buy share of any company. EPS = Earning per share meaning it is the monetary value of earning per share of common stock of a company .the better it is , the good it is so the company having good EPS is considered better for investment in share market. BOOK value = net worth share =(ASSET - LIABILITIES )/TOTAL SHARE OF COMPANY  book value can indicate whether a stock is under- or overpriced. When a company sells stock, the selling price minus the book value is the capital gain  or loss from the investment.you will get amount as equal to book value of a company whether or not the company get profit and loss. Price to book value (PBV)Ration = it must be below 3 to consider comp...
Post a Comment
Read more