There are times when people often say “he was damn lucky that’s he earned so much from the markets” but the truth is that luck has nothing to do with markets, unless of course you are in a gambling mode.
There are few thoughts which you should have in mind before you enter in a stock market. Have a look at them –
Know Stock Markets
When do you say that the food you are eating is tasty? Of course, after you have tasted it right?
Similarly don’t judge a market before testing it. Before you enter the world of stock market make a point to know what you are getting into.
Gauge the stock market universe in terms of profit you are willing to earn, loss you are willing to suffer and the capital you are willing to park. Learn the fixed and variable factors on which a stock market is heavily depended on.
Then and only then enter this world. Else there is a high chance you might fall into limbo, not knowing from where to enter to exit.
Develop PATIENCE of a farmer
Know this and if possible imprint this in your mind – patience is your biggest asset in the world of stock market. If you are prone to panic attacks then this world is not for you.
Have you ever seen the entire process of a farmer? Here is what they do. T
hey wait for the perfect time when they feel their seeds will give maximum results. After they feel the time has come, they sow their seeds and make sure they are not destroyed by outside interference of any kind. They provide all the necessary inputs that help them grow stronger. And when they feel that the crop has grown fully, they plough them.
Our job is more or less the same. We have to wait for the right conditions. Once we feel that time has come to park funds, we invest in quality picks. And then we wait till the time the price is right to book profits.
This process can take months and/or even years. But if you have patience you will rewarded in ways cant even imagine – in terms of bonus and dividends.
If you are expecting to become rich overnight then stock market is not the place for you. But if you want to become wealthy – then stock market is exactly the place for you.