CONFIDENCE , HOPE & STAMINA , Tools of an Investor

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As I have earlier written , an investor  enters   risky arena  called Market with greed in mind, fear in the heart and of course worrying all the way .  A place where    Rich  players &  experts  have lost their fortunes and have been driven out . If some people have committed suicide or ruined their lives  and fortunes , it is not surprising . Markets are risky and equities come under ” HIGH RISK ” category . Taming of market is not an easy task . Market is not for weak- hearted .  

We should understand that the money one is investing   in any share  is not returnable by the company  except when the company is   liquidated . Normally at the  time of liquidation , share holders have last claim and normally they get nothing .  All the money  you invest in a  share is only redeemable  by selling it to some one else  , except for the dividends announced by the company . You being a minority share holder , you don’t have any practical say in running of the company and your  money  invested in shares  is irretrievable  from the company during on going period . Practically you are entrusting your money  and investment to somebody  else for management .

If the  management  runs the company well  and generates  sufficient profit ,  you will be rewarded with dividends . Running of  a business it self is not an easy job  and is fraught with perils. Many external forces like governments,  competitors   etc and Internal Players like workers, management play   their role  . Thus Investing in shares  is  putting  your money to a business  on which you have no control  and hoping that they , the managers of the business , would manage well and earn profit  in coming years .  Further as you can redeem your money back  by selling in a stock exchange only ,  the price of a share  at which you can sell or buy is not  just dependent up on the  performance of the company  but also many other factors like   liquidity in the market , mood of the market  and opinion on the company etc .

But silver  lining  is that all investors have not lost the money in market  and many have been able to make money in the  market for  long times of period  and successfully continuing to invest  . Many have made huge fortunes from the stock market also . Since every rupee lost by one person is gain for the other , there will be  winner for every loser .   Seeing some  making fortunes , one is tempted to plunge in to market  to test one’s luck .

When you plunge in to sea  for swimming , you may not be well trained in the  art of swimming . There may be many sharks in the water. Sea may become rough . You may not have stamina to swim for long . But you should understand all these possibilities and enter  the sea . Even though you may  not have  good knowledge, training or stamina  when you first enter the sea , You have to develop over the time . You need not wait  to become expert and well experienced  before plunging . If you wait , you will never learn .  Learning comes as you  swim along . One day , you may become expert also.    But for the first  time  plunging , you  should enter with confidence  that you can do and  with the  hope  of doing your best  and    that you will develop   the stamina  to stay and face any challenges   . You will become  a successful swimmer one day  and who knows , you may win many accolades .

Before plunging in to the market , you should understand the risk  and be prepared for the “worst ”  .  Similar to first time swimmer , you neither  have  the knowledge of the market   nor you are well trained in ” Dealing ”   There are sharks in the   market who can  swallow all retail  traders .   Markets can become very volatile  when many  small timers  may drown in the  market  .  If you want to swim in this market in spite of all the risks and want to become successful,   you  should enter with confidence  that you can do and  with the  hope  of doing your best  and    that you will develop   the stamina  to stay and face any challenges   . You will become  a successful  investor  and will be invested in the market for   a long time .  Who knows , one day  you would have reaped   a huge fortune and prosperity in this very very risky market .

If you can  have confidence , hope and stamina ,  you can   definitely  become a good  market player 


No content on this blog should be construed to be investment advice. You should consult a qualified financial advisor prior to making any actual investment or trading decisions. All information is a point of view, and is for educational and informational use only. The author accepts no liability for any interpretation of articles or comments on this blog being used for actual investments.


About bellurnm

Worked for more than 3 decades for an Indian International Bank in various gamuts of banking especially in Credit & Treasury . Interested in Trading and Investment and Psychology of Markets . Presently living in Mysore , India
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