I started my journey in stock market around 2017-18 and at that time stock market is a liability for me and not an asset.
In the beginning, I did what most newbies do. Trading in the market based on the advice given by some group or by friends or suggested by TV anchors. Finally, my balance sheet was reflecting exactly what I deserved just by following the tips.
Curiosity: - I started getting curious to know how these experts know all the levels like how to select the stocks, when to enter, where to place the stop loss and when to book profit? so I joined some experts who try to explained technical things, who are called finfluencers today. I learned so many things with all of them and found it very fascinating.
By following their methods I started making profits in short term trading. But overall, I made no loss no profit when compared to the time I was devoting.
Realization: Very soon I realized that if I want to stay in the market for a long time, I should not depend on anyone because the specialty of most finfluencers is that they avoid giving any advice during losses.
I started learning about stock market by attending webinars and courses and with this knowledge invested in some good stocks.
Greed: Now I was slowly becoming greedy and I was still thinking market as a liability and not a wealth creator. And prove to myself smart, I started booking profit in my winners and loss in my losers. At the end same thing happened, when I compared it with my time then I was neither in profit nor in loss. If I compare my losers today, they are the biggest winners. Like;
Bajaj Finance 3000, Reliance 1000, HDFC Bank 800, Maruti 4000, ONGC 66, Ashok Leyland 60, Tech Mahindra 550, Indus Bank 365, Tata Elxsi 1000, Tata Power 90, Voltas 500, ATGL 150, KPIT 500, ABB 1800, CDSL 1300, BSE 500, Adani Green 350, Minda 150, HSCL 55 etc.
Realization part-2: I am very grateful to those who taught me technical things, but I wish someone had taught me to overcome greed and it would not be wrong to say that I did not understand the difference between greed and success properly.
One fine day I started comparing my mutual fund and stock portfolio, and I was surprised that my mutual fund portfolio was performing much better than stock and this was because I never tried to predict the performance of mutual funds.
Now I started thinking about how to stay invested for the long term, how to control greed, how to develop an investor mindset and I decided I will do what I am good at and being a bookworm, I started reading about finance, stock market, mindset etc.
As I started learning about the market, many of my doubts were cleared. I had quit social media long back to focus more on my business (which I started at the age of 25,) so it was a plus point for me that my entire focus was on my business and learning about the market and there was no scope for external noise. I had a basic knowledge to read balance sheet, so this was a bonus for me.
Three simple steps to become an investor, rather than a speculator
. focus less on forecasting
. ignore the short-term noise
. focus on the business, and not the stock price
0.001%: Now I realize that I started understanding stock market 0.001% so I created 3 portfolios. One is long-term, second is stock SIP and third is passive income portfolio.
Long term: I started investing in stocks that are suitable as per my fundamental study.
Stock SIP: I invest in growing companies (mid & small cap) that I don’t want to take too much risk on right now. I have covered this topic with some examples in Stock SIP boring yet powerful.
Passive income: In this portfolio, I invest in such stocks that meet my technical setup for positional investing.
Since I am not a SEBI registered or qualified advisor, I don’t find it appropriate to share my portfolio or setup.
Since I have learned only 0.001% about stock market in last 6 years and my constant endeavor is to learn more, I will try to share whatever technical and fundamental study I do.
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