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Read this whenever you are confused about the stock market and you will get answers.

Discussion in 'Fundamental Analysis' started by nirajshah, Mar 28, 2018.

  1. nirajshah

    nirajshah Champion

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    Read this whenever you are confused about the stock market and you will get answers.

    80% of gains come in 20% of time. So an investor needs enormous patience and conviction to hold stocks or Mutual funds for 10 or 20 years.

    Why not all investors get rich? They like to get rich without going through many years of discipline & patience. Process leads to outcome.

    An inferior strategy you can stick with is likely to produce better results than a superior strategy you cannot stick with.

    Prices change frequently. Value change over a period of time. There lies the opportunity.

    Compounding is back loaded. It works well only over a longer period of time. There is no substitute for time in compounding.

    99% of the time, doing nothing is the best thing to do in the market. It is good to be a Rip Van Winkle investor. Activity hurts. Sit still.

    You cannot predict or control markets. What you can control is how much you save, investment process and behaviour. Focus only on that.

    Random outcome doesn’t invalidate the need for a process. Sound process and consistently sticking to the same increases the chance of luck.

    Investors are human. That’s why markets would never be fully efficient.

    Markets usually run ahead or fall behind. Rarely in equilibrium. Over or under valuation can last for long time. Don’t time the market.

    Buying and selling is easy. It is holding on through ups and downs is difficult but ultimately most rewarding.

    Tiny drops of water make the mighty ocean. Invest regularly. Invest for long term. You can create huge wealth.

    Not investing in equity is more risky than investing in it. Remember, you need to beat the inflation and retain your purchasing power.

    We see past bear markets as missed opportunities. However thinking of future bear markets is gut wrenching. Strange investor psyche.

    If someone keeps reviewing value of his house every day, we may suspect his mental health. But that’s what we keep doing with our equities.

    *Equity investments are subject to behaviour risks. Always keep a check on your emotions while investing.*

    *Happy Long Term Investing*

    Sent from my Micromax Q385 using DIY Technical Analysis mobile app
     
    karthikkv34, waseem163 and dongawli like this.
  2. surajbj

    surajbj Member

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    Nice one.
     
    nirajshah likes this.
  3. nirajshah

    nirajshah Champion

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  4. chaitanya_mella

    chaitanya_mella Contributor

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    nirajshah likes this.
  5. waseem163

    waseem163 Member

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    Worth reading and a must reading every now and than for everyone

    Sent from my Mi A1 using DIY Technical Analysis mobile app
     
    nirajshah likes this.
  6. nirajshah

    nirajshah Champion

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