Lessons From My Trading & Investing Journey So Far — Part 1
Marwadis’ are often described as Kanjoos (miser), but I would say no.
We value money. It is in our blood. For real ;)
Have been saving money since I was a kid, but my investment journey began in 2016 when I first stepped out of my house. Away from my comfort zone, I valued money a lot and was mindful about spending.
Have jotted down some lessons I learned in the journey so far.
2023 was a standout year for me in the world of investing and trading because I jumped into the game and started actively trading and investing. Many thanks to Chirag Batra for piquing my interest in trading, helping me get started, and being my go-to person always.
Grateful to Swayam Bhushan as well for guiding me whenever needed.
The learnings are endless (and therefore have a part 2 of the blog as well :P) and I keep learning each day. But gained some courage to jot a few down.
1) Start small but start: I started with an RD of INR 1000 per month because I didn’t know anything back then. It helped me gain confidence firstly about investing while I kept learning about other investing methods.
Begin by investing a small amount of money and gradually increase your investment as you gain experience and knowledge. This approach will help you avoid taking big risks that could potentially lead to significant losses.
2)Learn on the go: You must stay up-to-date with the latest market trends and news and be willing to adapt your investment strategy accordingly. Continuously learning from your mistakes and successes can help you refine your approach and make better investment decisions in the long run.
3) Set realistic goals: RDs & FDs promise you 5–8% returns Equities and mutual funds might give you 12–15% returns over time. Expecting a return of 50% in one week is superficial. (might happen though)
It’s important to set achievable financial goals that align with your risk tolerance and investment strategy. Unrealistic goals can lead to disappointment and poor investment decisions.
4) Patience is the key: Investing is a game for the calm, and it’s crucial to be patient and not make impulsive decisions based on sudden market movements. Set benchmarks for yourself; stop loss limits and expect a return from each investment.
5) To make more money, you need more money: A study mentioned that to make 1 crore profit you approximately need to invest 8 crore in the markets. This means that the more money you have to invest, the higher your potential returns can be. However, it’s important to invest within your means and not take on too much risk.
6) Fundamentals should be strong: When investing in a company, it is essential to evaluate its financial statements, earnings reports, economic indicators, industry reports, management assessments, various financial ratios, and future growth potential. Strong fundamentals increase the likelihood of a successful investment.
7)Be consistent. It will give you good returns over time (3–5 years min): Consistent investing over a long period can lead to better returns than sporadic investing. It’s important to stay disciplined and maintain a long-term investment strategy.
8)Seek expert advice when needed, they’re experts for a reason: It’s advisable to seek advice from financial professionals when making investment decisions. They have the experience and expertise to provide valuable insights and guidance.
9) Be around like-minded people: Surrounding yourself with people who share similar financial goals and investment strategies can provide support and motivation to achieve your goals. Being around Chirag, Swayam, etc. helped me build a better portfolio, learn more, explore various methods, and save myself from potential blunders.
10) Calculated risks >>> blind bets: Don’t invest blindly without proper research and analysis. Taking calculated risks based on thorough research and analysis can lead to better investment outcomes.
In summary, my trading and investing journey has been a valuable learning experience. Starting small, staying informed, setting realistic goals, and exercising patience have been key principles. Strong fundamentals, seeking expert advice, and surrounding myself with like-minded individuals have played pivotal roles. Consistency and calculated risks over time are emphasized for better outcomes. These personal insights may vary, but they offer essential guidance for those navigating the financial landscape. Wishing everyone wise decisions and fruitful investments! 📈💰
Hope you keep investing money and keep making wise decisions :)
