Investing in the stock market is Simple But Not Easy.
You can earn lots and lots of money from the stock market, for this you have to give time to yourself, to understand yourself.
In the stock market, you don’t have to beat someone in their game, you have to just control yourself in your own game.
In the stock market, you are the most important person. You alone are responsible for most of your success.
In the book Intelligent investor, you will learn about investors and how they behave with the market fluctuation.
Here you will see the secret to success in the stock market.
Secret To Success in the Stock Market
Vision to see the future of the company.
If you are a long-term investor then it is very much important for you to see the future prospects of the company.
In the long run, if your company performs well, you will make lots of money with that.
For a better vision of the company’s future, you have to research the company.
You have to understand the fundamentals of the company.
Fundamental analysis will help you understand the economics of the business.
You have to be visionary about the future and economics of the country also.
Most people get influenced by the price fluctuation in the stock market.
When they start seeing their portfolio fluctuating, their vision about the company gets eroded and emotion starts flooding.
Funny things happen with most of the investors that they first buy stock with a very long-term view about investments. Once they start seeing their portfolio going down, their 5-year plan comes to 1 year. Again a little drop in their portfolio and they end up selling within a month of buying.
You will learn more about thin in 3rd secret (Patience). It is one of the most important characteristics of successful investors.
Courage to buy the share once you find them.
When you have found a business with great economics and long-term vision.
Then the next step is to buy the shares of the company and allocate your substantial portfolio to these stocks.
You must have adequate courage and conviction to buy a chunk of shares of that company.
The mistake most people make is that they found good business and then allocate a very little percentage of their portfolio to it.
This mistake can cause you huge loss over a period of time.
So, when you find a business to invest in, allocate an adequate percentage of your portfolio to these stocks.
It takes lots of courage to allocate a large percentage of money to one stock.
Here fear of losing dominates over joy of winning.
So, you have to be courageous while allocating your portfolio.
Patience to hold stocks for long-term.
With vision, you find good business and with courage, you allocate an adequate portion of your portfolio to those stocks.
The next step is the patience to hold the stocks you have bought.
This is the toughest and the most important secret to investing in the stock market.
If you have bought the best stock then it is your duty to hold the stocks to reach their full potential.
To get the most out of the stock you have to wait.
And waiting is a boring task.
Those who bought the right stocks and hold them for years have become very rich.
There is a saying of Warren Buffett.
“ In the stock market, money goes from impatient to patient.”
The mistake most people make is that they either sell too early or they sell at the wrong time.
So, have patience. Buy right and hold on. Time will take care of your portfolio.
Secret to success in the stock market is VISION, COURAGE AND PATIENCE.
Vision to see the Future of the company.
Courage to buy the Stock in adequate quantity.
Patience to hold the stocks for a long time.
Those who have these three qualities will become very rich in the stock market.