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Are you checking out the share market live today? Wish to get rich by deploying investments in the stock market in India? While this is a dream that many of us have, very few actually have the persistence to turn it into a reality. From stock prices, market performance, benchmarks, and analysis, there is a lot of homework and research that you can do but nothing will come out of it unless you actually take the plunge. However, there are some things that you should always keep firmly in mind without any deviations.
Firstly, you should avoid buying stocks on the recommendations of fellow investors. If you are buying shares on the advice/recommendation of other people, then it may not always work for you and your specific goals. You should always emphasize on what you feel is right on the basis of your research and study above all else.
People should develop a lifelong penchant for studying the market, learning from it, and also learning from market fluctuations, losses, and temporary setbacks. You will ultimately find yourself developing a certain instinct for choosing the right stocks and taking decisions all on your own. This is when you will start making the right moves towards becoming wealthy in the future with your stock market investments.
Suppose someone invested a sum of Rs. 1 lakh in Bajaj Finance back in February 2009. The value of the same would have touched an unbelievable Rs. 679 crores in November 2019! Sounds absolutely amazing, doesn’t it? If the same sum was invested in Relaxo Footwears in December 2011, then the investment value would have been a handsome Rs. 46 lacks in November 2019. This is a period of only 8 years and the investment value would have appreciated magically indeed.
Hence, there are Indian individuals who have become rich with their stock market investments. Anybody can become rich in the Indian stock market. However, it requires discipline, patience, perseverance, and the ability to absorb setbacks, losses, and wild fluctuations.
Some things that you should always keep in mind
Patience is indispensable –
Apart from basics such as share market timings, patience is something that a lot of investors do not have sufficient measure. Many people have bought into stocks of companies at a suitable time although they sell off the same instantly within a few years or months whenever they feel that markets are coming down or values plummet slightly. Avoid such panic buying or selling. Wealthy stock market investors are those who remain invested for the long haul or even hold onto market positions almost forever. You should invest on the assumption that you will not make any money at the moment and remain invested for a longer holding period.
Whenever we usually consider buying shares for profits, we expect the market cap to grow steadily in the future. This will only take place when anybody else is willing to pay higher for the same company. Why will anybody else pay more for the same entity within a few months? It only takes place after some years whenever the company has booked handsome profits and has ample promise for future growth.
Leave all your regrets-
Whenever you think of making investments, you should accept the fact that you are either buying whenever prices are coming down or selling whenever prices are going upwards. Whenever we sell stocks and prices increase, then we often regret selling the same earlier. Conversely, whenever investments make any losses, we keep thinking about not investing in the company when there is an opportunity. If we make a handsome profit, we keep thinking that we should have ideally invested more in the company.
There will always be regrets attached to every decision that you take and you should have a firm mindset that you will remain happy with every such decision that you have taken. Otherwise, you should have chalked out a strategy from start to finish prior to investing.
Adopt a futuristic way of thinking-
Whenever you take any decision for investments, you should adopt a futuristic manner of thinking. You should think ahead by a decade or so as to whether any company will have its own special niche or appeal by that period. Do you feel that a company like Pepsi or Coca-Cola will remain relevant? Or will Microsoft remain relevant or will Burger King become the trend in the next few years? Emphasize new-age technology-based companies which will undoubtedly be the brightest stars of the future.
Think of it this way; Facebook is not such an old company and neither is Google. However, companies like McDonald’s and Coca-Cola have been around for 7 decades and counting! Choose accordingly with the right balance between perennial favorites and new-age tech-driven companies.
Take risks in a calculated way-
Whenever you think of buying any stock, you should always invest time and energy into comprehensive research, homework, and other analysis. Do research in a specific pattern, read up on financial results, performance, trends over the years, the financial health of the company, and so on. Many people make the mistake of investing huge amounts without doing proper research. They also sell off stocks in the first instance that they hit lower prices.
This is the easiest method of losing money on your investments. You should only invest an amount that you will not require in the next 5-7 years or decade. Markets have their own fluctuations and you should remain invested to actually obtain value from your investments. Risks should be taken in a calculated manner to reap rewards and become rich in the future.
On a closing note
Choosing the right stock to invest in is something that you will become better at with persistent practice and experience. You should invest on the basis of your risk tolerance, financial position, and future goals. Avoid investing with money that is borrowed since there may be market fluctuations and losses to withstand temporarily at intervals. You should not take the penny stock investment route since most investors do not obtain the investment value and cannot also exit whenever they wish in some scenarios. Hence, invest in sound entities with proper management and those with decent performance and profits alike.