Are you thinking of investing in Shares??
Do you know how share market behaves??
Perhaps you have the answers to the above questions; if not and you are starting the equity-investment just because your friends have made their fortune out of it then you should rethink about your decision of investing in equity. May be your friend is putting lot of time in reading, understanding and learning the fundamentals of the share market and then putting his money in. Probably you are not aware about his or her hard work into it. Many of my friends also have started investing after seeing me but I genuinely do not have any idea that how are they doing, what fundamentals are they following etc.
I would like to make few points here as to what one should follow before starting investment:
a.) Know Yourself: First step looks pretty simple but very complicated to implement. You have to ask yourself that what are you expecting from it and how will you achieve it. If you think share market is a gamble then I would certainly suggest don’t bet, you will lose your hard earned money. If you are confident that you can earn money with your intelligence from share market then immediately start reading Good Books; they will help you in defining the way of thinking for shares and making you capable enough for understanding the Philosophy of Investment. It will provide you a foundation upon which you will make your building of wealth.
b.) Work Hard without Emotions: There is no other way to build wealth than to put lot of hard work. As market is full of opportunities & threats as well. To make use of the opportunities you have to keep all the points learnt from section ‘a’. If you become emotional with your investment and fall in love with some shares OR reluctant towards some of your shares, you can lose your wealth in either case. Hence you have to keep your eyes wide open to the company’s fundamentals, events, news, analysis and market fluctuations too.
c.) Trading OR Investing: If you are thinking that you have to trade every day to make lot of money YOU are 100% wrong. For making the fortune you have to stick with your good investments and have to invest in + monitor them at regular interval. Trading keeps people awake in the night as they have to worry about the next morning therefore Philip A Fisher said, “Conservative Investor Sleep Well“.
Lot of people enter into the share market and lose lot of money. Same happened with me initially but I learnt the basics of investing and have been following them only since then. Therefore I strongly suggest people to select a good company after reading their fundamentals and invest in it for at least 3-4 years. Never cross your portfolio above 10 shares. By keeping limited number of good company’s help you focus on each of them.
If you enjoyed reading my blog then please subscribe to my blog to keep yourself updated.
Happy Investing!!
