Investing is a long journey. one has to sail down the troughs and Crests in this investing journey process.
One who remains calm in the turbulent times gains more corpus than who reacts to small-small events. Being patient and understanding the fundamentals of the market is the key to wealth creation. Being long-term ensures bonus shares, split shares and dividends in stock market and compounding power in mutual funds
Interrupting investments frequently leads to opportunity loss. This may erode your compounding growth.Not reacting to knee-jerk movements is the success mantra for any stock market investor.
All investors enter the market with a long-term view. But if the market rises, they tend to book profits. Some investors says they will invest when the market corrects, but at the time of furious corrections, they denies to invest fearing of loosing capital.
There is a saying- “Time in the Market is More Important than Timing the Market”. Those who stay calm and invests regularly in up’s and down’s of the market would create huge wealth.
As no one could estimate the exact upside and downturn in the stock market, at any point of time, it is recommended to stay invested at all times. When we turn-out history, long term investors gained more than short term investors.
Short term investing is like gambling. Trading for short term could give temporary gains, but almost 95% traders lose in trading. So instead of trading, prefer “Long Term Investments”.
Being consistent and regular you could achieve your long-term goals. The reason for most of the traders/investors loose money in stock market is they enter for long term, but seeing Volatility in the market, they redeem their investments in hurry. This is the cause of notional loss.
Instead link your investments to your life goals. Like a saver save money for their short term goals and never touch the piggy bank until the final corpus is saved; you should not touch your investments until your goal is achieved.
This is the only mantra for wealth creation. Be long-term and enjoy the fruits in the long run.