If You Don't Have This Mindset, You Might Not Make Money With Your Investments
- Aditya Mishra
- Feb 11, 2022
- 3 min read
When it comes to investing, a lot of things can go right or wrong. I have seen a lot of people making irrational decisions with their money. And later they claim that investing money is like gambling where everything depends on sheer luck. You need to make choices that lead you towards your goal which in context to this article is financial freedom. And you owe it to yourself to find a better way. Here is what has helped me in my investment journey:
Knowledge Is Power
Whenever I invest in some asset, sector, or instrument, I make sure to understand what it is beyond the hype. I trust my investments because I have not made them just because some US-based entrepreneur is hyping it up through his tweets (Dogecoin-ahmmm-ahmm) or not because some other seasoned investor is investing in it. The clarity of my investments gives me the confidence to stay firm through the ups and downs of the market. Stocks, in general, go up and down on a regular basis but some stocks go down and never come up. Hence, you must be very clear on what you are investing in.
Always remember the words of Warren Buffet: "The best investment you can make, is an investment in yourself. The more you learn."
You can go through other articles in this blog where I have explained the basics of various investment options.
Patience Is A Virtue
Let me start with another quote by Warren Buffet where he says that the market is a tool to transfer money from the impatient to the patient. I remember a few months back I suggested one of my friends on Canara Bank when it was trading at around ₹215 per share. He bought a good chunk of Canara Bank and a few days later the stock price fell down to around ₹200 and he was sitting on a big loss. He got restless and immediately called me regarding the situation. I just advised him to not lose his calm and stay invested for some time. A month later, Canara Bank's share price touched ₹270+ and he made a good enough profit.
And don't forget that it was my analysis of the Canara Bank stock that gave me the knowledge required to invest in it and the patience to hold on to it even when the price went down.
To make good money from your investments, give enough time for your investments to grow. Research, analyze some good businesses and then invest in those and hold them for a long period. Remember that Reliance gave nearly 0% returns between May 2018 to June 2020 before giving more than 300% returns from June 2020 to the end of 2021.
Own Your Mistakes
The most successful of investors have also made the biggest mistakes that one can do. But what makes them successful is their acceptance of the mistake, taking ownership of it, and using the learnings from the bad times to grow. Remember that you have not failed until you have quit trying. I have made quite a few bad calls in my short investment journey but with each bad call, I am learning a lot of new things which help me in my future calls.
Final Words
An investor needs to think of investing as a business and should give up the thought of becoming a millionaire overnight. It is then that the investments feel like something substantial and not gambling. This business needs a high level of stress and risk management. Good physical and mental wellbeing will enhance your decision-making skills. Have an open mind to new opinions but also learn the art of filtering out the bogus ones from the ones that are useful.
Investment is an act of devoting time, effort, and energy to a particular undertaking with the expectation of a worthwhile result. Happy Investing!
With this, we have come to the end of yet another article. I hope it conveys the message as it is intended to be. Consider giving a like and share it among your peers. To get notified of new articles, sign up to the NerdyTree.
Let me know if you have any queries in the comments.
I use Groww to invest in Stocks and Mutual Funds and at the same time, I make my crypto investments with CoinDCX. You can start your investing journey with them as well. When you create an account on either of these and start investing, both of us get some reward credited to our wallets. Do consider using my referral links-
CoinDCX: https://join.coindcx.com/invite/Qfpy
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