If your goal is hundred miles away, don’t get destructed by the short-term volatility

Everyone have goals; mostly long-term goals. Even though they start their investment journey with long-term view they get panic in volatile times and get-out of that investment thereby missing a chance to reach that goal!

Didn’t the investors knows that stock market investments are volatile?Yes, they do! But as per human tendency they get panic and redeem their investments with a single click!

Will this human tendency applies to all asset classes?Absolutely No! Investors enjoy the price drop in gold prices, vegetable prices and even in real estate! Then why investors are losing their focus in equity?

This is because of human nature, even though investors knows that stock market rewards in the long-term and there are ups and downs in the interim, they never step ahead to invest in stock market when the market enters into bear phase!

At the same time, they realised the fact through Google search engine that investing in bear phases rewards much higher and regrets that they missed the bus and wait for the market correction, but actually when the market started correcting, same story repeats(They gets tremble and redeem their investments)

There are hardly 2-3% investors who stayed calm during volatile times there by created wealth to their dear and loved ones. Remaining investors frequently “enter and exit” shares thereby making notional loss.

Today we are living in digital era, all information is available with instant proofs, but all are not creating wealth to their family due to this human tendency(uncontrollable emotions).

Almost all investors starts investing with a goal in mind. But during investment process they “forget the basics of investing” thereby unable to reach their goals. This happened in the past due to lack of trusted sources. Today all information is genuine; there is trusted information from Google, but all are not creating wealth!

A typical investor finds information on Google that “X” stock multiplied wealth “3X Times” and starts investing, but during his investment journey he looses temper and repeats the same story of destructing the wealth.

Only 2-3% investors have that commitment and creates wealth. Remaining investors remains as “speculators” and frequently “enter and exit’ shares. They forgets the basic principle of “Staying Patient in Volatile Times”. so always keep in mind- “If their journey is hundred miles away, don’t get destructed by the short-term Volatility”. If you remember this you would surely become a wealth creator

Published by bankinfor

I am a financial expert interested to create awareness on personal finance, insurance and investment products and it's pros and cons to a common man. My intention is to make public aware on savings and investments which should be a part of everyone's financial life. By browsing this site you can learn various investment products and it's risks(people mistaken this concept)associated with them

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