I have been investing in the stock market since I was 18. Investing might sound confusing at first but it's one of the key elements you need to learn in your life. Here are 7 key takeaways that I learned through my investment journey till now.
📌Patience is the key 🔑: Investments will not pay you off instantly. It takes weeks or months to get your portfolio into the green zone. For that, you need to have that emotional hold so that you don’t get driven away because of the highs and lows of the market.
📌Do you know? 🤔: Before investing in any stock or mutual fund do you know the company’s background? Look for the statistics, look for the numbers of revenue, capital, profits, and the capital structure. If you have adequate information about the stock then you can be sure about risking your money with the organization. Do not believe in insider information or news. Do your research and invest. Insider information got me 48% losses in a stock from then I stopped taking my broker's advice.
📌Investing is getting married 💞: Trading and investing are two different terms. Trading is just like casual dating where you take risks and expect returns and if it doesn’t work out you get rid of it. Investing is more like finding the right person, understanding them choosing the right time to get married, and sticking up together for a lifetime. Investing is a long-term game. You have to wait for the best days. Until the best days you have to put up with the company through all the highs and lows.
📌You can’t time the market 🕵️: We wait for the perfect time to invest, and keep waiting until it reaches the bottom, and when you invest the share price drops. The thing is no time is perfect. Thinking that the Russia-Ukraine war will be the perfect time to buy stocks there might be a financial scam in the market which will pull the price down. The right time to invest is now and of course only after proper research of the price.
📌 Know your options 🧐: Many times people don’t know about certain government schemes or specific investments which might be suitable for you. So be “the know-it-all all” guy and learn about the investment options. Like PPF can save your tax several schemes have their purpose, and you need to figure out which suits the best.
📌Jab jab jab jab jab, hook 🥊: Just like a boxer starts with a sequence of small punches right when he realizes the opponent might make a mistake he makes a move to swiftly hit a right hook. Likewise, investments are incremental, you need to put up small amounts of your monthly income aside to invest regularly. The value of your investments increases only when you invest every time in small intervals. These small steps will lead you to higher returns eventually. As Warren Buffet says ”First you invest then you spend”.
📌Age does matter 💫: Investing works on compounding and time is the best friend of compounding. If you start investing early in your age it will be more beneficial for you shortly. Every small step counts in the long run. Also if you want to retire early and earn money while you sleep, you better start investing at a young age if you aren’t gonna get a pension 🤐
I hope the post was beneficial and worth your time. Thank you for reading. You can subscribe to our mailing list below.
Cheers ✌️