Investing in stocks 101

Hi, straight into it.

Stocks are for the patient, if your reading this and you struggle with the process of patience- stocks are going to be a difficult vehicle for you to create wealth in. You want to focus your efforts on creating wealth through other means. If you are on the other hand patient, stocks are for you. Stocks are easy to make money in, if you buy something for below it’s price and hold it for the long term- you are bound to make money.

The problem is most people aren’t patient

Stocks are simple, most people believe they are complex and it is hard to make money in them. The reality is that stocks are super simple to create wealth in: All you need to do is:

  1. Find a stock selling below its price
  2. Hold it for the long term
  3. Find a stock, where the company has a competitive advantage
  4. Invest in what you know and understand
  5. Take calculated risk

The steps are simple, yet we are lead to believe that you need to take massive risk or use some complex math to find winners. It’s simply not true, what you need is to have the temperament to be able to hold a stock for the long term, short term fluctuations in stocks are inevitable, You need the guts to be able to withstand the short term market fluctuations and you will do just fine.

For the most part: After a time of price falling of a stock, there is usually a time of boom. We see this all the time with stocks, it is common.

To be a successful investor, you don’t need tons of IQ or any intellectual gift- what you need is a steady temperament and discipline in holding the stock for the long term. The better you are at holding for the long term, the greater the amount of wealth you can manifest in stocks- it’s just that simple. Hold for the long term and do your research.

Investing for the long term: It allows you to take advantage of compound interest, your money will grow exponentially, as long as you have the patience to hold for the long term. You over estimate how much money you can make in a few years and under estimate how much money you can make in 10–20 years. It’s that simple.

Patience is everything guys, it really is: especially in investing in the stock market.

Thank you for reading my blog, I hope you found it of value.

Regards,

Jagdip

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