Do you want to invest in the stock market?
Do you want to make WEALTH in the stock market?
Generally, for the first question, your answer may be a big YES. For the second one, you wouldn’t have heard. Have you ever heard someone asking “ Do you want to create wealth in the stock market?”
It has always been “Do you want to make money in the stock market ?”. It is easy to create wealth rather than making money in the stock market. Yet, almost 95% of people lose money in the stock market and turn away. Only 5% of people make wealth.
Are you investing in the stock market?
Recently I was attending a program where one of the Ex-Banker also attended and shared her experience in equities. She has been in the Banking industry for the last 35 years and retired recently. One great thing I heard is that she has been investing in equities for the last 34 years. She invests only in SBI as she doesn’t know any other banks. She buys and holds that for a certain period and sells it off. After a long time, her husband was awarded Infosys shares in his office. After 5 years they sold it off and built their home. Remember they didn’t spend any other money. It was all from the stock market redemption proceeds.
By her own admission, she regretted not investing in other stocks. And also for selling those HCL Stocks as it would have been worth in crores now.
These are a handful of people who invest in the stock market and make money for themselves. They tend to make money and withdraw quickly. The ultimate reason is the fear of losing money in the stock market.
Do you know that your Behaviour traits control you?
It is almost a year back, where in one of the programs I was hearing on Behaviour traits of people controlling them. These emotional or behavior traits create a huge impact on the money you are going to make in the stock market.
It is not the fundamental or technical aspect but the behavior traits that create huge impact. When the Satyam scandal hit the market, the Stock market reacted negatively. Yes, it was a huge danger for the people who had invested in it. Most of them would have lost money in it. All tried to make some money and exit as they thought that everything is over for Satyam as a company. From several hundred rupees a share, it had reached a single digit.
When Mahindra as a company stepped in for buying out Satyam. It became Mahindra Satyam for a few years and later became Tech Mahindra. Satyam was the top company at that time and only there was a change in accounting numbers as said by the owner to keep the share price going. The panic has brought down the share value of the company. After analyzing the company he stepped in to buy out at the much lesser price.
Now the value of Tech Mahindra as soared like anything in the last 10 years. As an investor, if you had bought the stock in single-digit or less than 100, it would have created wealth by now. As they announced bonuses while merging the company.
Some of the behavior traits which controls your stock market investing might be,
Following the Crowd
Fear of Failure
Ignorance on details
Thinking high one oneself
Inability to delay gratification
Are you investing in the stock market? Do you see any of the above ?, Please comment and share your experience