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

Author: Prasenjit Paul

Genre: Equity Investment


Many Indian investors complaint that all foreign authors write books relevant to US markets only. Although I don’t agree with this notion as I believe that the concepts remain the same throughout the world. It is only the examples that those authors use would vary from country to country.

If you are an Indian Investor and need to understand Value Investing with stock examples from India, then this book would end your search for that book.

In this book, you will find the author busting some misconceptions about stocks that are prevalent in the Indian minds. The author believes that investing in high-quality business stocks at the right price and holding them for a reasonable period of time is the only way for great wealth. Billionaires have created their fortune through stock market either directly or indirectly.

However, only a small group of people earn money in the market. The author wishes to reverse the fortune of people through the ideas in this book. While doing so, every investor must also make sure that his capital is always protected and any investment that is categorically risky should not be invested in. One way to protect your wealth would be to not use technical analysis on stocks or buying stocks in response to herd behavior.

Other topics that he discusses are but not limited to:

  • Picking winning stocks
  • Evaluating management
  • Valuation
  • When to buy and when to sell
  • How to construct your portfolio
  • When is a stock advisor not required?

He finally shares a quick formula in the final chapter which would make no sense until you read the entire book. In this quick formula, he creates a checklist or a query to be used to filter rout stocks.

Pre-requisites before reading the book: None

Is the content relevant even today? Yes

Vocabulary and Understandability: Easy

Level of investment expertise required: Any

How can it benefit you?

This book can help you if you are looking to

  • Buy a book solely focused on the Indian Stock Market with many practical examples.
  • Learn the subject with minimum effort.
  • Implement methods that can minimize loss from equity investing.
  • Learn various aspects of the stock market.

This book can imbibe confidence in every small stock investor and encourage them to come and participate in the market for wealth creation in the long run.

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