A cricketer can make a mistake and be out of the game in a jiffy. But in finance, the reality is different. When an Investor makes a mistake, everything might appear normal. But the result of his blunder will show up after many years. By then, it is usually too late to take corrective action. So, dear Investors, always use the services of a Financial Advisor to stay safe, and free of error.
Of all Ice Creams, vanilla ice cream is the simplest and the most enjoyable. Of all food we eat, home food is always the best. In the same way, when we start to invest, we do so in a simple manner. But over time, there is a tendency to turn to exotic financial products. However, these may go bad, and you may suffer losses. So the best thing to do is to maintain the simplicity of your investment portfolio, and await your rewards through long term, faithful investments guided by a Financial Advisor.
Investors who start their SIP don’t realise its benefits in the beginning. But over time, with patience and discipline, the benefits of SIP begin emerging, and the rewards of long term, faithful investing become apparent.
A short journey by airplane may be without any turbulence. But the distance covered remains short. In a long journey by airplane, say, between Mumbai and New York, the chances of turbulence are much more. But would you jump out of the airplane during these turbulent phases? No. In long term investing, market volatility is always present. But these will pass. All you have to do is to stay invested.
Just like a pilot is needed for an airplane to take off, land and manage turbulence, so is a Financial Advisor needed to pilot your Financial journey as Investor. Always consult a Financial Advisor. Always.
Never become complacent while investing. There is a tendency amongst investors to think that they know it all. Consequently, they delve into the stock market, and more often than not, drown. This is wrong. So be educated first in personal finance. And always use a Financial Advisor.
The human tendency is to find even the tiniest fault and make a mountain of it. In short, we concentrate only upon the black spot on a white page, forgetting that except for that little blemish, the whole page is white. This doesn’t work in finance. Be a responsible investor. Be educated first.
A person might wish to travel by train to his destination by fast train, covering greater distances in a shorter time. Doing so, this person will experience all the movements of the train as well as its speed. Another person, scared of this speed and movement, might wish to travel by slower train, covering a shorter distance in greater time. This is the story of investing. Don’t let the speed of markets and its movements frighten you.
A pilgrim going up the mountain will find that his path is undulating. There are steep climbs as well as sharp drops. But keeping to his faith, the pilgrim continues his way, knowing that the greater path is upwards. So is it with the stock market. In spite of market crash and market peaks, the eventual way is upward. So, please believe in the stock market and stay invested for the long term. You will reach your temple of prosperity.
Why do you swim in a crowded pool, when you can actually have the whole pool for yourself? Pools are crowded in Indian summers. So can you swim in cold waters during winters, when people hesitate to step into the pool? This is what happens in the stock market. The market is crowded during its peak. But everyone runs away when the market crashes. But a crash opens the whole market for you; in fact, it is a huge opportunity. This is an important lesson. A market peak provides only Returns. But a market crash produces invaluable opportunity for you!
Here’s a great financial lesson to be learned from the game of cricket. It is about holding up to pressure and winning in the end.
Do not be greedy for more. True investing does not permit greed; for where there is greed, there is speculation. Therefore, don’t be a greedy investor who wishes short term gain. Be a sincere and disciplined investor who will be rewarded justly through long term investing.
A cockroach causes pandemonium in a restaurant. Only the waiter manages to deal with it, and calm everyone down. This is exactly how people react during market corrections. They feel that doomsday has arrived. At these times, one should emulate the waiter; remain calm and cool.