Hello, friends
Greetings
The coin always has two sides; if you flip it, it will either come up tails or heads. Every game, every transaction, and the majority of our daily activities all have two sides, and every investment is no different—it can either result in profit or loss. When everything is green, we celebrate and feel fortunate, but when it becomes red, we begin to point our fingers. Even for a little length of time, our minds are unable to accept losses or refer to them as “notional losses.” More so in assets like equities, bullion because of daily price fluctuations, these have a tendency to underperform at times that are out of our control.
Our own company doesn’t have the same growth story; its volumes, sales, profitability, and other metrics can change. If you observe, price swings are more or less a part of our lives. The list includes things like the food we eat, the water we drink, the things we buy, the materials we use to build houses, the interest rates on home loans, etc. While we have become accustomed to volatility, we must learn to deal with potential losses, especially when making investments.
We make land investments and neglect them for a very long time. Do we ever give our broker a call to verify rates every day? What would have happened to our investment if there had been a market for land prices? However, some investments, such as stocks, gold, and others, have an exchange, and we are compelled to check prices every day. As a result, our conduct toward these investments has an impact on our results. It makes me think of the well-known Benjamin Graham adage, “How you behave is more important than how your investments behave.” Therefore, it’s crucial to address problems with strength, patience, discipline, and consistency. Utilize some of the suggestions to manage your behaviour.
– Use a SIP and frequently increase its value.
– Invest regularly (equity & bullions etc.) without paying attention to short-term fluctuations or market volatility.
– Invest more during deeper price corrections, especially if you are confident in the long-term prognosis.
– Investing time rather than timing the market is more crucial.
– The eighth wonder of the world is compounding. Don’t become upset about losses for a few weeks, months, or occasionally years. Let it grow. Markets have continued to rise through numerous wars, the recession, and global concerns. Business is always going on.
– Don’t be afraid to seek advice on a frequent basis
– Instead of experimenting with an app or platform to lower transaction costs, a mentor or professional expert can bring their expertise to the table and help you reap long-term benefits.
I hope the information above will be helpful.
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About the Author :
Nitin Bhandari, a passionate & certified research analyst with over 15 years of experience in Equity Markets and founder of Heet Investment, a financial broking firm in Bengaluru. You can get in touch with him on nitin@heetinvestment.co.in