GUILT is SIN

GUILT is SIN

Sin is a social concept for maintaining social order in society

We must first understand why a Society is formed and the basis of a formation of Society?

SOCIETY or a social formation is a group of people who come together for social living. Members in a society, on consensus basis, create rules for every aspect of social life such as marriage, divorce, commerce, polity, spiritual etc. The rules are made so that there will be perfect social order for the smooth functioning of a society. These rules are indoctrinated in each member right from childhood by the families by social conditioning.

Violation of the rules by any member of a society is branded as a sin (for e.g. infidelity) which is followed by guilt in the perpetrators mind. Whereas following it is treated as vice-versa.

Any SOCIETY or a social formation is born with the birth of only an INSTITUTION OF PRIVATE PROPERTY.

What is institution of private property?

It means the person who accumulates a surplus of any kind (FOOD, GOLD, SILVER, etc.) becomes the owner which was earlier fully and wholly appropriated by the tribe. Since he/she becomes the owner of surplus he created MARRIAGE as an institution in order to transfer this surplus to his own child. This is how society got created and so have social laws, customs, religion and so on.

So now you know that its only the SOCIETY which created all the concepts like good, bad, guilt, sin etc which was tutored to each member of society right from their childhood in order to smoothly transfer the SURPLUS protected through INSTITUTION OF PRIVATE PROPERTY. Since every human being is a thinking being, it was sent to his mind, and he gets conditioned with all these values right from childhood.

So there is no society when there is no institution of private property?

In reality there is no meaning and relevance of anything of society as it’s just an ABSTRACT and RELATIVE. All words and its value has been created and imposed on each human being so that society can operate smoothly.

Let me give first example by taking the animal kingdom. Do you find any guilt in animal kingdom, sin, abuse, rape…? No. This is what we all were when humans were nomads and barbaric. So what sin, fidelity, good, bad … we all are talking about?

Let us study the most primitive society which is a TRIBE:

In every tribe the work for every member was divided. No member had any individual property as everything was the property of the entire tribe. Any woman or man could sleep with anyone only with free will. If force was used then the persons were killed. The child born to any woman was the property of the entire tribe and was reared by the tribe. Though the mother had the sole right in rearing the child. That’s all.

Then tell me what sin or what infidelity are we generally hooked on to?

Just consider the example that in some societies it is permissible for men to marry many women and women to marry many men. In some societies killing old people is accepted and in some killing the weak is allowed. So everything is purely societal creation and nothing is SPIRITUAL or RELEVANT. So in reality nothing exists in human world too. EVERYTHING IN SOCIETY is abstract and it is nothing but social creation. It’s just social conditioning my dear friend.

SOCIETY IS AN EMPTY BOX. YOU WILL TAKE OUT FROM THE BOX ONLY THOSE THINGS WHICH HAVE BEEN PUT INTO THE BOX.

We should never cheat the consciousness and do any thing as it is INFIDELITY.

Human beings made life very complex and have put each being in a state of total confusion. In order to know the concept, always look at the animal world for perfect answers. It is still unpolluted.

No animal kills the other just to accumulate. It does only in its self defense or for eating. This is what is not cheating, the consciousness. When we become greedy then we cheat our consciousness and it becomes sin, guilt, infidelity.

What is INFIDELITY? Is it related to physical gratification in marriage?

FIDE- FAITH in LATIN. If you join IN as a prefix to FIDELITY it becomes negative connotation by which INFIDELTIY means LACK OF FAITH.

So if you are sleeping with your husband without your own faith or consciousness that itself is INFIDELITY as it’s devoid of free will. Which itself becomes a SIN because one is doing it against one’s consciousness.

Infidelity doesn’t mean that just because you got married you must sleep. It means you should never sleep even if you get married till it becomes your free will - driven by absolute FAITH which is devoid of FEAR, GREED, COERCION or any MENTAL PRESSURE.

INFIDELITY is not only restricted to SEX but every aspect of human life. If you do anything against your consciousness it is INFIDELITY and it’s a SIN. FIDELTIY or INFIDELTIY can be to a job, having a friend, killing, tasting, reading… if you do with your consciousness it’s FIDELITY and if it’s not then INFIDELITY.

How to know an aspect is fidelity and infidelity?

The yardstick is FEEL GOOD FACTOR from deep inside our being. If you don’t feel happy from within then it is cheating our consciousness and if you feel happy from within then it is pure fidelity.

DO YOU KNOW WHAT ENLIGHTENEMENT IS?

When every action as long as we live, is taken in full consciousness, we merge with the existence and become enlightened.

Living without FEAR and GREED but absolute FAITH and TRUST is the only path to SPIRITUALITY. Spirituality is the domain of only human beings as they can only think and know the concept of death. Just because we have taken a wrong step doesn’t mean that we need to continue as spiritual path can be taken at anytime by living for ourselves and being true to body, soul, heart and mind. Then only one can live to their true potential and will merge with GOD and attain NIRVANA.

Humans get enlightened because they are put into society which creates so many webs and makes every member get stuck with misery, worry, fear … One who comes out and see all things clearly starts his journey in his spiritual path for enlightenment.

In the path to enlightenment when we live for ourselves, following our heart it can never be short of traveling in spiritual path. But when you started using our head we go back many steps backward and get entrapped in societal WEB.

So we will be back to the SPIRITUAL PATH for the enlightened only by living according to your consciousness. It’s a SIN to live cheating our consciousness because you can never live life to your full potential.

Hari Rao

My shoe – It’s my choice?

My shoe – It’s my choice

I was walking very happily with the new shoe which I chose all by myself after the frantic search in the store for a while. The flash came and I saw all my life that what I did and silently accepted all the small dreams which were never mine. I saw my dreams slowly slipping away as I always had a choice to choose between the two and forcibly accepted what was not mine. The first one I vividly remember was that I liked a colorful shoe as the color appealed to me and it comforted me too when I wore it. But my mother gave me much expensive jazzy one, thinking that the one I chose was too cheap and I deserved the best. I grew and the same story went on with all the choices which were decided on my life by others, than what I had to do myself.

One day while I was passing by the shoe store, the salesman by his talks literally pulled me inside with the fantasy to sell me a shoe that I was never intending to buy at all. Since he psyched me so much I did the same thing what I did all along my life. After reaching home I wore the shoe and earned lot of appreciation from everyone - but no one understood my discomfort. The shoe indeed caused me blisters beneath my feet and gave me nothing but pain. I reached home and went to the terrace and it was already six in the evening. Sitting alone I felt that how much unwanted pain I was going through by wearing the shoe which I never needed. The silence from within spoke so much that I rushed back to my room and after a changeover I left for the shoe stall. I saw the same salesman briefing me with a flashy new arrival. This time I just said “you please attend to the other customer while I walk around your store.”

After gazing through the display I called the salesman to show me what all I had selected. After a few trials I was not tired but suddenly I saw the seventh one and I liked the colour which reminded me of my childhood. When I wore it I was spellbound as it was a perfect fit as it matched my senses. When the same was billed to me I was surprised as it was very inexpensive too. Then I was walking very happily with the new shoe which I chose all by myself after the frantic search in the store for a while.

While walking back home I realised that everyone has got a shoe of their choice. It requires only a small search alone, or with the others help, to find the right one which suits everyone. In retrospect, I found that it was not only the shoe alone, in my LIFE but many things with which I had created a relationship. After reaching home I replaced the old shoe with the new one on the rack with a smile.

Right from the time we are born till we die we create a relationship with all the animate and inanimate objects which are physical and mental. Every frame of our life is nothing but a relationship and only a relationship. If we alone choose the right to select a relationship then we will always be happy from within as we would live the relationship of our desire. The salesman in our lives can’t be ignored as they are none other than our relationship which exists in the form of Father, Mother, Brother, Sister, Husband, Wife, Friends, Son, Daughter and so on. Whatever the salesman may say, it;s you who must make the final choice to wear a comfortable shoe.

Letter to a friend whom I never saw

Dear Lyn

Especially at the time when this tragedy and unceremonious event occurred, SILENCE seems only a perspective which speaks more than words when one undergoes trauma like the way LYN has gone through. It’s delicate for any person to confront LYN and address her concern as she is the only one who knows how earth beneath her feet has whisked away into an abyss. She has lived life in the past eight months more closely to death than to life itself. The passage of time would’ve definitely got some sense of balance but the scars and wounds still stands fresh and green as it cannot leave LYN so soon because she was physically present there. The frame of this happening must be running in her mind and must be rewinding whenever she encounters the things which are connected to their loved ones. Standing opposite to LYN and writing this mail is the first introduction of me to LYN.

Nothing in life happens by chance. Everything is destined and we dwell with a feeling that we are doing something or we are controlling things. But actual truth is that “we are neither the MIND which makes us believe “what we are” nor the body which we feel and think we are.” The reality about all of us is nothing but we all are ENERGY called as SOUL. It is the eternal truth. Energy will only change the form and will always stay connected to eternity with all energies which have been part of life in this birth and shall be in later birth too.

Every Soul is nothing but an energy being part of that INFINITE ENERGY which we all call as GOD. In order to understand the eternal truth we all need to peep inside than to search the answer outside. Every person asks a question “Why me and Why it should happen to me?” It’s the most difficult question if one seeks the answer by just looking just in the past. But if one goes beyond the experiential past then all the puzzles on the board will give the answers. Please do not consider that I’m justifying the event which has happened to LYN, but I’m just making an attempt that if not today LYN will definitely make a probe to my thoughts tomorrow and integrate it to her own SOUL.

My first inroduction to LYN is that for a while we will keep aside what tragedy happened with her and address the immediate concern for healing which is most urgent for LYN. After this process is over then only we can dwell later on the core aspects of WHY ME? “Why me” is a marathon process and will get dissolved when the interaction reaches its finality.

The first query which I ask is:

“Why drainage overflows?

What happens if the issue is not addressed sooner or later?

How to fix the problem of choked drainage?”

You must be wondering

“Why this stupid question is being asked at all when the answer is also so simple?

How it is connected to my life at this juncture?

At this juncture I still ask you the same question and then request you to just look at a CHILD and then look yourself in a mirror too.

What do you find?

You will find that the child is just a vibrant energy whose energy is just akin to an ever blooming flower and whereas the energy level in us is much lower than what is in a child.

If we were the same child from whom we have transformed into an adult then where did we leave our vibrant energy which is making us a flower with lesser life than what we were when we were a child? The answer simply lies in the concept of drainage.

Drainage overflows whenever it gets choked due to blockage caused by some garbage. Whenever the drainage gets choked we need to remove the blocked garbage or dissolve the garbage for the smooth flow. If the choked drainage is not cleared then sooner or later the surrounding starts stinking and the place becomes inhabitable. An honest cry, laughter and scolding in one’s relationship with the other is very essential to keep the drainage clean in one’s own body and mind.

The life has got so much conditioned in an adult that it has refused to respond to its natural behaviour. Every conditioned behaviour contrary to natural behaviour creates a small heap of garbage which gets collected in mind and in turn manifests in a body. Systematic collection of this garbage in our mind over a period of time will make our drainage choked. Let us see how it operates?

If one wants to genuinely cry then some of the responses are: Why the hell you are crying? You are neither a girl nor a child…?

If one wants to genuinely laugh then some of the responses are: Stop laughing people will think you are mad. Have you gone mad?...

If one discovers that one is harming at the back, but due to our own selfish interest we pretend and act quite opposite. “Boss you are great and you have been very helpful” instead the inner response while saying the praise was “Rascal and wretched soul, you need be slapped publicly”

Every act of living quite contrary to one’s own self would systematically collect garbage inside the mind of an adult which is never there in a child. That’s why generally an adult does not look like a full bloomed flower like a child. A child by living its natural behaviour never allows the garbage to be collected for long but brings it out as soon as possible. This why the CHILD is vibrant energy over an ADULT.

Now LYN please tell me if the same tragic incident would have happened not in your immediate family but to one who is a dear friend to you then would you have kept your tears away for the passing off of your loved ones not born out of your womb or was not connected by your own marriage? Believe me you would’ve bitterly cried and also would’ve hugged for the last time your loved ones before paying them their last respectable homage.

Tell me LYN how you can be so RUTHLESS with your own loved one’s that you didn’t give them the place of a friend and let them go gracefully. If this garbage is not cleaned then neither you will get the salvation nor your loved ones’ who rested in your lap and your shoulder when they were alive.

PLEASE CRY OUT and RELEASE ALL THE TEARS which your HUSBAND and CHILDREN rightfully deserved. I’m positive the TEARS will melt away all the garbage which you have dumped over your wonderful and awesome relationship of your bereaved souls. I know its very very difficult but don’t you honestly feel that “LOVING is letting a relationship exit gracefully?”

IF YOU DON’T LEAVE THINGS GRACEFULLY, YOU DON’T POSSESS THEM, IT POSSESSESS YOU.

Until unless you won’t shed tear for your loved ones you will never understand what I’m going to say in future as your DRAINAGE stands CHOKED.

Please take care

Warm regards

Hari Rao

Wanna be happy? Remove the Garbage within.

KEEP THE DRAINAGE CLEAN

Every being seeks every moment to be only HAPPY and nothing else. If this is what the ultimate truth is then what are we all seeking for and where? We seek HAPPINESS in LIFE only in a relationship. Let’s understand what life is all about.

Life is an experience born out of relationship. Right from the point we take the first and last breath we enter, sustain and exit only in a relationship. The relationship which we enter and exit is with animate matter which has life and the inanimate matter which doesn’t have life. By this dictum, while the passage of life we first enter into relationship with our own body then with the clothes we wear, food we eat, shelter we live, the people we meet, things which we use… It’s not only that the relationships are limited to the things which we can tangibly experience but also beyond. Relating with the intangible things like GOD, thoughts and feelings are the experience which we can’t see but are the pure phenomena connected with the basic energy which we all call as soul.

Every relationship is a wonderful aspect as long as it is free from problems. Therefore we need to understand why the problem arises in any relationship? This is what I have attempted to explain below in the concept of drainage.

“Why does drainage overflow?

What happens if the issue is not addressed sooner or later?

How to fix the problem of choked drainage?”

You must be wondering

“Why this stupid question is being asked at all when the answer is so simple?

How is it connected to our life at this juncture?

At this juncture I still ask you the same question and then request you to just look at a CHILD and then look yourself in a mirror too.

What do you find?

You will find that the child is just a vibrant energy whose energy is akin to an ever blooming flower whereas the energy level in us is much lower than what is in a child.

If we were the same child from whom we have transformed into an adult then where did we leave our vibrant energy which is making us a flower with lesser life than what we were when we were a child? The answer simply lies in the concept of drainage.

Drainage overflows whenever it gets choked due to blockage caused by some garbage. Whenever the drainage gets choked we need to remove the blocked garbage or dissolve the garbage for the smooth flow. If the choked drainage is not cleared then sooner or later the surrounding starts stinking and the place becomes inhabitable. An honest cry, laughter and scolding in one’s relationship with the other is very essential to keep the drainage clean in one’s own body and mind.

Our life has got so conditioned in an adult that it refuses to respond to its natural behaviour. Every conditioned behaviour contrary to natural behaviour creates a small heap of garbage which gets collected in mind and in turn manifests in a body. Systematic collection of this garbage in our mind over a period of time will make our drainage choked. Let us see how it operates?

If one wants to genuinely cry then some of the responses are: Why the hell you are crying? You are neither a girl nor a child…?

If one wants to genuinely laugh then some of the responses are: Stop laughing people will think you are mad. Have you gone mad?...

If one discovers that one is harming us at the back, we may due to our own selfish interests pretend and act quite opposite. “Boss you are great and you have been very helpful” instead the inner response while saying the praise was “Rascal and wretched soul, you need be slapped publicly”

Every act of living contrary to one’s own self would systematically collect garbage inside the mind of an adult which is never there in a child. That’s why generally an adult does not look like a full bloomed flower like a child. A child by living its natural behaviour never allows the garbage to be collected for long but brings it out as soon as possible.

Every CHILD is vibrant energy over an ADULT as its DRAINAGE is always CLEAN.

What life is?

Life is just relationship

Introduction

Every being seeks every moment to be only HAPPY and nothing else. If this is what the ultimate truth is then what are we all seeking for and where? We seek HAPPINESS in LIFE only in a relationship. Let’s understand what life is all about.

Life is an experience born out of relationship. Right from the point we take the first and last breath we enter, sustain and exit only in a relationship. The relationship which we enter and exit is with animate matter which has life and the inanimate matter which doesn’t have life. By this dictum, while the passage of life we first enter into relationship with our own body then with the clothes we wear, food we eat, shelter we live, the people we meet, things which we use… It’s not only that the relationships are limited to the things which we can tangibly experience but also beyond. Relating with the intangible things like GOD, thoughts and feelings are the experience which we can’t see but are the pure phenomena connected with the basic energy which we all call as soul.

Entry and Exit in a Relationship

The first relationship which we enter is with the breath which is connected with our own body. The day we lose the relationship with this breath we exit with all the relationships with or without our own choice associated with our birth. The most beautiful thing is that the entry in a relationship may not be in our hands but the exit in a relationship is generally in our hands. Do you know why in our lives we suffer about our past or are worried about our future? It is because that whenever we lived all those relationships less than the attention it deserved, we have sufferings. Especially when we can actually vent and speak about our suffering but for our own foolish reasons or ego trip we maintained unwanted silence. In every such case of relationship the mind will haunt us either with guilt by taking us to the past or create fear for future whenever we reminicise or encounter those relationships.

Let me give an example that I loved a tea cup as it was given to me by an affable friend or I loved the very sight of it as it pleased me because of my inner drive. One fine day due to frustration on someone I threw it and broke it. Just observe the entire chain and sequence. First, I have entered into a relationship with the cup which is an inanimate matter because of my extreme inner desire or for the expression of love. NextlI exited the relationship by breaking the cup in an unceremonious manner which brings out clearly that the relationship was not given the right attention which it deserved. So whenever I think of the cup then it will make me feel always guilty not because I entered the relationship but the ungraceful way I exited the relationship. Life is like this that the cup in reference can be our body, mother, father, brother, boyfriend, girlfriend, husband, wife, friend, pet dog, car, table, chair, pen, tree … and so on.

The moral of the whole story is that however tragic, joyful or comical our entry can be, it will matter least, as what will matter always will be how we exited in a relationship.

We can never run from who we truly are. Destiny chooses us.

Assured income from Stock Market

Assured income from Stock Market

BIG BAAAAAANG, two planes hit twin towers of the World Trade Center at USA on 11^th September 2001. The whole world was glued to the television, engrossed in seeing the live updates, wanting to hear everything behind it. Intelligence agencies were working overtime to trace who had masterminded such a dastardly act. Top investigative agencies failed to get any major breakthrough. Soon after, hands were laid on 13 prime suspects. It was not the premier investigative agencies which detected prime suspects but analysts of Futures and Options in the stock market that have done this job. Analysts observed that some group had traded on derivative market in the related area which could not have been possible if the prior information about the attack was not available on hand. The investigative agencies are believed to have deciphered that these group of men were directly associated with Al-Qaeda and had first hand knowledge of the attack.

The stock market not only leads to tracing conduits but also brings lot of money to an investor wanting to make a decent standard of living by absorbing the knowledge about stock market. The Capital market in popular analogy is known as STOCK MARKET. It’s a wise investment option and it is worth exposing your disposable savings a tinge of capital market. But the very word ‘share market’ for a common man sends a shiver because the capital market is equated with gambling, horse trading, or speculation. The answers for the above fears are both ‘yes’ and ‘no’.

If you are buying and selling shares daily to make money on hearsay then it’s really GAMBLING. But if one makes investment based on a small study then it’s an INVESTMENT. What differentiates an investment from SPECULATION? Speculation starts with IGNORANCE which is driven by GREED and FEAR as an attitude towards INVESTMENT. When the KNOWLEDGE and informed opinion precedes an investment then there has to be BENCHMARKED PROFITS with COURAGE.

For any beginner the word ‘finance’ itself may look quite difficult, if it is so, then the STOCK MARKET will be no less than a BOUNCER. I’m sincerely attempting to make it simple. So it is necessary to give honest feedback after going through the write-up, and convey whether my expressions were simpler?

Let me first introduce you with small connotations which will make understanding of capital market easier. These are as follows:-

1. Stock exchange – A Stock exchange is a place where Public limited companies list their shares. It’s a place where buying and selling of shares takes place. Just like any other market for e.g. Big Bazaar, Forum etc. Principle stock exchanges in India are National Stock Exchange (NSE) and Bombay Stock Exchange (BSE)

2. Share/Scrip. It’s the smallest component of capital of a listed Company (A public limited company, which has gone public and collected monies from general public as part of capital.). A group of shares becomes a STOCK.

3. Stock Broker- A Stock Broker is a person who is a member of stock exchange through whom shares can be bought and sold from stock market.

4. Sensex- The Sensex is abbreviation of Sensitivity index. It is composed of 30 of the largest and most actively-traded stocks on the BSE. Initially compiled in 1986, the Sensex is the oldest stock index in India.

5. Nifty- The 50 stocks that were most favored by institutional investors in the 1960s and 1970s. Companies in this group were usually characterized by consistent earnings growth and high Price earning ratios.

Why invest in stock market?

Business gives more earning than any profession as potential for risk and return is more in this segment. Business is a jungle and the weak cannot survive as weak gets eaten by the strong overnight. Stock market comprises of businesses which have been surviving over decades. Investment in stock market has been more lucrative than investing in gold/bullion or any investment based on studies globally.

Live example is, if one had invested Rs. 100 in Sensex in 1986, its value today would have been Rs. 14,500. This shows that money grew 145 times in 20 years. With the present growth trend of industry the Sensex with all corrections, is all set to touch 25000 by the year 2010-2012. The same trend of rise has not been experienced in gold/bullion market for the same period.

Other benefits are:-

· If an investment is held for more than a year, then profits out of capital market are totally exempt from Income-tax.

· If it’s sold between within a year the profits are taxable only @ 10%.

· Any other sale of capital asset attracts Income-tax @ 20-30%.

· Profits distributed as dividends are free from tax as it’s taxed in the hands of a company.

How does a stock market work?

In order to understand the working of a stock market please just visualize how a telephone exchange works. It’s just replica of it. In order to communicate you must have two connections from a telephone exchange and then speaker and listener can communicate. From this telephone connection any person can communicate. Similarly, two interested persons get enrolled in stock exchange as members, through whom an investor can invest in a stock market. Ever since online trading has come only National Stock Exchange and Bombay Stock Exchange are more functional than other stock exchanges.

What are the necessities for dealing in a stock market?

Following are the pre-requisites in order to transact in a stock market:

· A bank account

· A PAN card from Income-tax Department

· A de-mat account (Dematerialized account- It is share certificates in electronic form, replacing the physical share certificate). Central Depository Services (I) Ltd. (CDSL) and National Securities Depository Ltd. (NSDL) are the principal companies for dematerialization of their securities.”

· A client identification number from a stock broker.

Any recognized broker/sub broker will facilitate you to go through the above formalities.

Why should we deal only through a stock broker?

It’s a rule of a stock exchange that one has to trade through stock broker. In turn stock brokers are regulated by stock exchanges as per SEBI guidelines.

· In every transaction of a stock market there is need for accountability as it deals with public money. Interest of an investor and the credibility of the transaction have to be given supremacy. So it is easy to make a person accountable in a case of default in honoring a commitment to a contract. Therefore, there are stringent checks about the financial strength about a person getting enrolled as a stock broker in any Stock Exchange.

· The philosophy behind trading through stock broker is that it’s not possible for an investor to individually search for a buyer and seller for acquiring and selling share at local, national and at global level.

· It’s also not easily viable/ feasible to become a member of stock exchange, as one has to shell down lot of money for stock market license.

Since it’s an online trading, a stock broker operation is totally transparent hence absolutely free from the risk of manipulation. Security Exchange Board of India (SEBI) has placed systemic control which has totally minimized any fraud to take place. Shares in electronic format (Demat) have further strengthened the working of capital market.

How to buy shares?

Shares can be directly bought from a public limited company which makes a direct public offer. Buying directly from the source is known as PRIMARY MARKET. Next, when there’s no public offer then the same can be acquired from stock market via a stock broker. Trading directly from stock market is known as SECONDARY MARKET.

Why do initial investors with little knowledge about stock market make losses in a stock market?

Let’s look how general investor makes an investment. Stock market is just like our hand with five fingers - denoting fall and rise in the stock market. Investors without knowledge enter the market on hearsay and sees market rising from thumb finger to first finger but actually make investment at middle finger - when the market is static. Further, the investor sees the market has started falling at the fourth finger but actually sells at the fifth finger when the market has touched the lowest. Result, - the investor has bought SHARE at peak and sold at LOWEST.

Therefore, MOOLAH MANTRA is “one has to buy the industry specific share when the market has fallen and sell when the market is at peak”. The following guideline can be followed to make investment more lucrative:

· Decide well in advance which industry specific share to buy at what rate and sell at what rate i.e. both HIGH and LOW for the preceding 1/2/3/4/5 years.

· Generally gaining knowledge around 15-20 scrips is sufficient enough to make good income in one’s lifetime.

· Never put all your money in one scrip rather spread investment in 4-5 industry specific stocks?

· Decide how long you are going to hold the investment

§ > than a year,

§ > 6 months

§ < 6 months

· Dispose your share dispassionately when the share reaches a desired level. ENCASH YOUR PROFITS AT THE EARLIEST. The greed for further profit or loss can reduce your surplus and erode your capital?

· Invest equal amounts every month as investor as this method of investment will take care of all fluctuations experienced by the stock market in any given year.

How to select your share/stock?

Selecting of a share is just similar to parents selecting a groom for a daughter. Parents enquires about family, education, health, vision etc. about the groom.

Similarly, in order to select a share/stock, try to gather little information about the company in which one is investing. Hence, what is to be known about a company is, what is the activity of the company, its profits, growth, expansion etc.?

One can select their investment by knowing how the industry is performing in general. Further a good magazine, website, business news channel and daily newspaper can enhance the skill level. Let me further cite an example about picking the industry specific stock:-

1. Power Sector: - India is a developing country and has huge potential to grow based on its industries internal demand. The industry will be growing which needs power as it is in tremendous shortage.

2. Communications: Every person irrespective of being poor or rich wants to be in touch. Mobile phones have made boundaries very narrow at a very affordable cost. Therefore, the communication sector will be another area which has huge potential for growth

3. Infrastructure: India needs good AIR/SEA PORTS, ROADS, DAMS, POWER PROJECTS etc. Hence the investment can be made into this select sector also.

I would gather information about the reputed companies which are part of the above industries involved in manufacturing and trading activity. After looking into financial, I would invest in the company related with specific industries.

How are shares grouped?

The shares are grouped generally under A B as per the market capitalization. Every company needs CAPITAL to start a business. When entire CAPITAL of all the listed companies is totalled together it is known as MARKET CAPITALISATION. The following are the grouping of shares

1. Group – A: The ‘A’ group includes companies with capital of more than Rs. 30 Crores come under this category. There are approximately 250 companies under this category.

2. Group – B1 and B2: The ‘B1 and B2’ group includes companies with capital less than Rs. 30 Crores come under this category. Majority of companies in the stock exchange comes under this category.

3. Group – S: The ‘S’ group includes companies which have exclusively listed shares under B1 and B2 group having a capital between Rs.3 to Rs. 30 Crores, where trading is done under BOLT (block over the counter trades)

4. Group – Z: The ‘Z’ group includes companies which have failed to comply with the listing requirements of the Exchange and/or have failed to resolve investor complaints or have not made the required arrangements with both the Depositories, viz., CDSL and NSDL for dematerialization of their securities.”

5. Group – T: The ‘T’ group includes companies whose scripts are traded on trade to trade basis.”

6. Group TS: The ‘TS’ group includes companies which are settled on a trade to trade basis as a surveillance measure.”

How the stock market behaves when market falls and recovers vis-à-vis the different group of shares?

It can be observed that the values of Group Z scrips erodes the maximum followed by Group T/B1/B2 correspondingly.

While recovering, it is the reverse as Group A recovers the fastest and then followed by B1, B2, T and Z. I have personally observed that whenever the Z group shares start going up where the PE Ratio goes beyond 25+, the market will correspond with new peak in SENSEX and NIFTY. This is the first indicator that market has peaked out and the speculators have taken over. The market sentiment is now driven by GREED than INVESTMENT.

This is a beautiful sign where an INTELLIGENT INVESTOR must exit the market by encashing the profit. The investor now has to have patience to re-enter the same scrips at the lowest value in couple of months time.

What is P/E ratio? How the P/E ratio is classified?

The P/E ratio (price-to-earnings ratio) of a share is a measure of the price paid for a share relative to the annualnet income or profit earned by the company per share. The P/E ratio can alternatively be calculated by dividing the market price per share (MPS) by its total annual earnings (EPS - earning per share).

Following are the zone for classification of a P/E ratio:

N/A	A company with no earnings has an undefined P/E ratio. By convention, companies with losses (negative earnings) are usually treated as having an undefined P/E ratio.
0-10	Either the stock is undervalued or the company's earnings are thought to be in decline. Alternatively, current earnings may be substantially above historic trends or the company may have profited from selling assets.
10-17	For many companies a P/E ratio in this range may be considered fair value.
17-25	Either the stock is overvalued or the company's earnings have increased since the last earnings figure was published. The stock may also be a growth stockwith earnings expected to increase substantially in future.
25+	A company whose shares have a very high P/E may have high expected future growth in earnings or the stock may be the subject of aspeculative bubble.

What is the net worth of a company?

In business, net worth (sometimes called as net assets) is the total assets minus total outside liabilities of an individual or a company. It means that after entire debt in the form of loans are paid by a company, and then what is still left in hands in the form of various assets is known as net worth. Generally the book value is also equated with net worth. If the accumulated losses exceed the shareholder's equity, it is a negative value for net worth.

Is it necessary to know about all the shares listed in a stock exchange for entering the stock market?

Stock Market is an ocean. It is not at all possible to know all the information about companies even to an expert. The information about company is only based on NEED TO KNOW BASIS for every investor investing in industry specific scrips. Usually an average investor need not deal, more than 20-30 scrips in one’s lifetime. The investment can earn around 30% income from Group A and B scrips.

How to know LOW and HIGH about scrip in a stock market?

The Internet is a boon because so much information is available on a click of a button. On the internet I have relied on the website www.moneycontrol.comfor obtaining the information about high and low of a stock market. Any principal website will give the information about a share price for any given period.

One has to make their own notes of HIGHS and LOWS for preceding 1/2/3/4/5 years. This will give a complete knowledge about the respective share about when to PURCHASE and SELL scrip.

What aspects to see in a financials while buying a share?

Annual earnings in the form of profits are the basic ingredients for investing. While evaluating one has to also observe the average industry earning by looking into the financials of peer companies.

One has to keep a tab on their investment by knowing whether there are any concessions/ being given/withdrawn by the government to the industry, superior technology being introduced, any new tie-up in the form of collaboration etc.

What should an investor totally refrain from doing in the stock market?

Investor must never involve in INTRA-DAY trading as it is pure GAMBLING which is an incurable DISEASE. The attitude of investor is on sheer impulsive buying on hearsay or taking just a chance to recover losses of the previous day or make profit by chance once again.

What is the general cycle of a stock market in India?

Generally market falls and rises whenever events happen locally, nationally and globally. In a normal scenario, market picks up between June to October, as lots of festivals and good monsoon kicks start business activity. It gets corrected by a fall before December, as foreign investors sell their holdings to have financial closure of their books ending on 31^st of December.

It again picks up in January and lasts till end of February i.e. till the Indian Budget is announced. Indian companies have financial closure of books on 31^st March, hence the market does correction as the performance of each company is informally announced. This makes market a bit volatile.

Between March to June, school holidays starts and businessmen take a break for vacation. It is also peak of summer and absence of major festivals. All these reasons bring stock market generally to its lowest point. Usually all major market crashes are observed during this period. This phase is the right time for an investor to enter into the market as it is at its lowest point.

Generally, every company has to pay tax in advance to the Income-tax Department in four quarters which is June 15^th, September 15^th, December 15^th and March 31^s which is an indicator of their financial health. Investors can make comparisons with the corresponding earning in the previous year. The market may become a little volatile during this phase as a lot of media channels will be airing expert’s opinion out of the amount filed as advance tax.

Above working of a stock market in brief would have given a sense of respite that your investment basket i.e. Investment in the form of Land, Gold, Fixed Deposits, NSC Certificate, LIC Policy, etc. is incomplete if your investment excludes investment in stock market. Returns out of stock market are phenomenal as it is directly linked to performance of an economy. Since our country has tremendous growth potential for next two to three decades it strongly suggested that investors must not miss the bus. Information is power for any intelligent investor so logging on to internet with any website will facilitate acquiring information on the trends of any industry for investment purpose. I have logged on to www.moneycontrol.com and you can choose any by exploring the Google search engine.

For additional information an investor is given a tip for following suggested reading:

1. One up on wall street – Peter lynch

2. Intelligent investor- Benjamin Graham

3. The warren buffet way- Robert Hagstrom

Money is like a sixth sense, without which you cannot make a complete use of the other five.

W. Somerset Maugham (1874 - 1965),

Of Human Bondage', 1915

A reading of the above write up may throw up doubts, suggestion and feedback. Your suggestions are highly solicited as it will facilitate me to make this write up more better before publishing. The suggestions can be mailed to my email- id lovebunty@hotmail.com.

Hari Rao

22.02.2007 re-edited on 31.10.2011