I cannot insist enough that it will be extremely difficult to make money by long-term investment strategies in stock market.
The simplest reason is – not having enough patience.
Today people might keep complaining on one hand that FD’s and other banking instruments are paying low returns such as 5 to 7 percent or in some cases (bank to bank) up to 8 per cent also. While they are complaining about low returns from these instruments, still they are ready to hold their investments for 2 years, 3 years or even 5 to 10 year also to get those returns.
Everyone knows that FD’s and other fix return instrument no longer provides returns above inflation rate. But they will still hold on to their investment for those eternal periods as if there are no better options available in the market.
Now there are options of stock market investment. Believe me it is much simpler than cunning banking instruments. The amount that you lose by keeping your investment in their shit deposits, you can invest those amount in learning a bit about the market and be the king of your investments.
You don’t need a high IQ to be a master in stock markets. If a person like me can make it, anyone can. I was never a very bright student during my school or college but an average one, but I learnt those skills and applied it and left behind the dependency on relative advice, government schemes or ever green SHIT banking deposits.
Do you know that even Albert Einstein lost his money in Stock Market? Why am I telling you this, because it indicates that high IQ does not guarantee better returns in stock market? All you need is Patience.
The above narration about holding the deposits with bank was to tell you that when you are holding your money with banks for certain period of time then indirectly you are showing some sort of patience. It is another thing that for that amount of patience you are rewarded with utter SHIT and you happily accepts it on your face.
But when I tell you that ok, you invest the same amount of money in so and so stock for half the amount of time that you invested with banks, then do you know what your behaviour will be? You will keep looking at the price of that stock every day. Even if it goes down for 4 or 5 percent, you will scream out to your lungs – OMG I lost my money. That’s it. You already lost your chance of making money in stock market.
So, no matter what you do, you will keep looking at the prices and will make your advisor life hell also that they advised them to lose your money and cursing them in front of others will come as a bonus.
SO NO. For this very reason 98 percent people lose money in stock market. Just because they don’t have the patience and that is why the moment you goes to bank or any commission agent of any govt schemes, or those old uncles or relatives of yours – will always ill advise you and warn you against not investing in stock market. The favourite line is – you will lose everything there.
Now the only option left to you is – take the shit.
So, there are no long term investment strategies for stock market. The only strategy is – PATIENCE.
During my classes I teach basics of technical analysis which is more than enough for anyone to be the smartest player in stock market, however all I focus is on developing the practice to ignore the news and developing some faith in themselves. Just apply on regular basis for what you have learnt and see it to yourself that it can actually make you financially free in just 10 years, rather than slogging for 30 or 40 years of life working for others.
LEARN, EARN and REPEAT.
Next time when you lose money in stock market, don’t blame to your intelligence or low level of understanding things. Blame it on your human Greediness.
