We often meet people who are just starting out as investors in the Indian share market but are not sure where to begin. If this is the case with you as well, here are three key things you must keep in mind as you enter the Indian share market as a new investor.
1.Turn off the noise: Information overload and noise acts as a big hindrance to most investors in achieving their full potential. This is especially true of new investors who get overwhelmed seeing and hearing the noise all around business channels, business papers, magazines, stock websites etc. Its important that you cut off this noise at the very outset.
Instead of wasting time and effort in taking in the noise, learn the simple rules of investing yourself, do some hard work in analyzing companies, have patience, and youll do much better than most other investors out there.
2.Accept you will make mistakes: This is one key idea that no share market expert will tell you. Its important to start your investing career knowing that you will make mistakes in your investments decisions.
But then, as a market legend once said, There are no mistakes, only lessons. So dont fear making mistakes in the share market. The only thing you must fear is perpetuating the mistakes doing the same mistakes again and again.
This is also one of the key traits of successful investors they recognize the frequency with which they can make mistakes and thus they have a plan in place to deal with such situations.
When you expect to make mistakes, it makes it that much easier to both plan ahead and manage risk.
3.Dont try to beat the market: There are only two goals in investing in share market 1). To protect your capital, and 2). To grow your capital.
Trying to do anything else will lead you to trouble. Investors who are trying to beat the market are all trying in vain.
Now, as you start on a new journey of investing in share market to create wealth for yourself and your family, your core goal must not be to beat the market, but to meet your financial goals with comfort.
1.Turn off the noise: Information overload and noise acts as a big hindrance to most investors in achieving their full potential. This is especially true of new investors who get overwhelmed seeing and hearing the noise all around business channels, business papers, magazines, stock websites etc. Its important that you cut off this noise at the very outset.
Instead of wasting time and effort in taking in the noise, learn the simple rules of investing yourself, do some hard work in analyzing companies, have patience, and youll do much better than most other investors out there.
2.Accept you will make mistakes: This is one key idea that no share market expert will tell you. Its important to start your investing career knowing that you will make mistakes in your investments decisions.
But then, as a market legend once said, There are no mistakes, only lessons. So dont fear making mistakes in the share market. The only thing you must fear is perpetuating the mistakes doing the same mistakes again and again.
This is also one of the key traits of successful investors they recognize the frequency with which they can make mistakes and thus they have a plan in place to deal with such situations.
When you expect to make mistakes, it makes it that much easier to both plan ahead and manage risk.
3.Dont try to beat the market: There are only two goals in investing in share market 1). To protect your capital, and 2). To grow your capital.
Trying to do anything else will lead you to trouble. Investors who are trying to beat the market are all trying in vain.
Now, as you start on a new journey of investing in share market to create wealth for yourself and your family, your core goal must not be to beat the market, but to meet your financial goals with comfort.
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