Today we are living in digital era, there are so many experts giving advices directly on business news channels, newspapers and infact on social media platforms. While some of these advices are free of cost(CNBC TV18, ET Now) while some are chargeable(premium subscriptions).
Are you one blindly following the experts advices? Even though some news helps you to create wealth, following the media house blindly destructs your wealth! Do you know the reason why?- Today’s media wants hype and creates undisturbed nuance when there is a bad news in any particular sector/company!
Take example of covid-19 situation, when the market tanks from 14,500 points to 7,500 points(Nifty) all the media created noise that market will collapse as there is no medicine for covid (at that time). But we all knows what happened next! Even the market trembles in short-term it rebounds to all-time highs within a short period and touches 17,500-17,950 points easily within 1-2 years
What this instance teaches us? Following blindly media noise and experts advice hurts your wealth! Then what to do to create wealth in the stock market?
- Remember there are winners and losers in every bear and bull markets ! What we have to do is- “Identifying the right stocks at the right time”
- For that you have to do proper research on the market conditions. Taking experts help is somewhat o.k, but don’t follow them blindly, because it is your “own-hard earned money”, you are the sole responsible for your wealth creation
- Follow the latest trends in the market, but ignore the “Media-Noise” in the bear markets
- Decide on your own on which “price-point” you should buy a particular stock, because no one could predict the exact price movements of a stock (even a market expert with decades of experience can’t point where is the exact bottom and exact peak of a stock)
From the above, you can conclude that “you” are the only person to judge which stock would create wealth to you and which stock destructs your wealth. In this process follow the market trends, but don’t follow them blindly! It’s on your own discretion to follow them or not!
But one thing is genuine, even stock market trembles in short-term it moves uptrend in the long-term. What you have to do is- identifying the right stock/sector at the right time and keep on investing in that stock on your own discretion. During this process your own risk tolerance and ability to forecast the stock prospects plays a key role in your wealth creation journey. Do remember this before deciding to sell/hold a particular stock