Palat meri jaan tera dhyan kidhar hai,
Paisa kamane ka samundar idhar hai !!!
Getting rich from stock market is very easy. Its the best, legal and easiest avenue for wealth creation.
Markets recently have been dominated by news of China growth worries, commodity crash, market meltdowns etc.
Investors track news and other ongoing developments more closely when going gets tough. Media just amplify the effect thereby raising your nerve during such times.
The more you watch media updates, the more you keep checking your portfolio; the more it makes difficult to not react. Reactions during such times cause irreversible damage to one’s wealth creation goal.
As I always say making money from equity is simple but not easy.
You need to learn to ignore worries of the world. There has always been some problem or another which dominate our mind space. There are very rare spells when nothing bad seems to happen.
‘Buy & hold’ would look easy when the market is going up. The real test comes during these times of corrections.
Unless one has very strong emotional control, making money from the market is tough.
The 3 key traits required to create wealth are long term orientation, patience and discipline.
Time can do wonder to your portfolio and wealth if you learn to ignore volatility.
Most people fail because they give up to fear and panic during bad times, act impulsively due to volatility and forget long term picture.
India is the fastest major developing economy in the world and would continue to grow and do very well in future. This would get reflected on corporate performance and will trigger rerating in stocks. If you can understand this broader picture correctly, then the worry about day to day news or short term outlook wont bother you.
Successful investors take a broad view of the future and learn to ignore every day volatility. India has been growing well for last few decades and would continue to scale new heights in the decades to come. Equity is for you only if you have faith in future.
As per data, only a tiny percentage of investors are successful in creating fortune from stock markets. These are the ones who have patience to live through ups and downs, follow investment discipline irrespective of bull and bear markets and stay invested for decade or decades.
Till the time market resumes uptrend, investors can focus on accumulating stocks of companies with earnings growth, robust business model, quality management, which are available at attractive valuations.