We Indian retail investors approach the stock market, investing a lot different than every other market players. Ideally, we should learn and then either trade with technical analysis or invest with the real fundamentals of the stock.
However, we start trading and then try to learn. Once we have lost the money, we try to find why it isn’t working?
I am also the culprit of the same process and approach to the market.
The only thing that kept me digging in the market was, I was convinced money could be made from the stock market.
It was all about knowing how. Every investor who approaches the market may not have the same view.
So when I was convinced, I did everything I could to know how small investors like me can make money from the stock market.
Finally started to make some money with technical analysis. Slowly as my trading bets got bigger, I moved over from being a trader to an investor and believe me Investing Makes More Sense.
I don’t say my approach is the only correct approach in the market. There may be others who may have done it very well with trading only. Some may have started with as an investor only. And others may have done trading even without technical analysis and some other kind of analysis – may be fractal analysis.
The critical point to note here is the belief.
Not everyone will be able to recover from the loss in the market and can be convinced ever in his or her life that money can be made in the market. It is these type of people who will continue to think the stock market is a gamble. And they are outnumbered in the crowd. Some make money, but most make loses.
As an investor, we have to approach the market correctly.
Mutual funds, to a large extent, have made sure the general people move over to financial investment.
I find a lot of investors trying to invest like mutual funds.
I see it as the current trend. People try to invest in a stock which is picked up by a mutual fund.
But remember these points:
So if a retail investor wants to consider investing like mutual funds, it is better to invest with the mutual funds itself. There is nothing that should stop him from doing so.
However, if you want to be building wealth investing in the market, you have to study and invest in the right stocks at the right price. There is no alternative to it.
There is no doubt the two of the best and most popular market approaches are:
No matter what you do, don’t lose the belief that one can make money from the stock market. It is a matter of finding the right approach that works for you and your style of being in the market, be it a trader or investor.
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