Becoming an Investor?
Updated: Aug 14
Did you think it was a great idea to buy a stock and start your financial journey?? Did you hear a friend brag about a stock or mutual fund investment that gave them results which skyrocketed ? In current times, with people being at home as RobinHood Fever grips the markets, everyone is rushing in to buy stocks for some quick side hustle!
What a lot of people do not realize though that its as easy to lose hard earned money in the stock market as it is to make money. Another problem that retail investors fail to realise is that there are a lot of big players taking calculated decisions and "hunches" do not work in the market.
Sure you may get a hit or two, Sure, your 10000 rupees turned into 15000.
BUT that doesn't mean your 20000 will turn into 30000. Its never unitary method when it comes to the market.
As you grow your corpus the most important concept to remember is to stick to your STOP LOSSES. Never bet against the market as you feel your friend told you so.
Of course everyone hears tips, but make sure you validate your investments if not with technical analysis, then at least with some fundamental research.
What we at The Fin Lit Project firmly believe is that as a retail investor, always start small and build your positions as you start to see the results. The point being that if you start with a big amount and unfortunately take miscalculated decisions you end up cursing the market, calling it jinxed and start thinking of investing as gambling. Its always adrenaline rushing when you see your investments turn green and profits start showing up but at the same time its very disturbing if the tide turns against you.
A very important point is also that in the market, whats as important as a stock selection, is your timing of entry. If you're buying a good stock at too high a price, its not going to show you much profit.
Lastly, Its your hard earned money after all, start small, never bet big on positions and never think that if you invested double or triple of what got you returns, your profits would be in the same proportion.
Its about taking risks BUT with STOP LOSSES. Its about trying out new things BUT with knowledge to back you. Its about being pragmatic of your financial decisions.
And finally, Its about embracing financial literacy for the long run not just for a quick gamble that turns sour. Be a CONSCIOUS investor. Do your research. Become Financially Literate before you make those rash decisions. Subscribe to The Fin Lit Project and join our community of finance learners to make sound financial decisions and understand your investments better. Most importantly, Take Care of yourself and of your money!