In recent times, everyone is proud to project themselves as an investor or want to become an investor. But investing is a hyped word, as only some understand the true essence of it. An investor is not someone who is looking for quick profits and getting their money multiplied in a short span of time. An investor is willing to stay put into their investment, until the fundamentals change, or the financial goal is met. Only those putting their money in Mutual Funds, Stocks, Index are not the only investors. You are also an investor if you have started or put your money into a business, shop, or a startup. Yes, even sharks from shark tank India are investors. Usually, the duration for investment ranges in the span of years, and not days or weeks.
After understanding the essence of an investor, let us now bring our focus to how one could start their investing. So, to understand investing in a very simple manner, let’s dive into the Goela’s investment guide for beginners.
As per our investment guide for beginners,there are three things to be done before you put even a single rupee into anything as an investment.Even the Top 5 Online Stock Market Courses in India, deem them extremely essential for an investor. Let’s learn them!
Risk Management:
The first preliminary requirement in investing would be understanding the amount of risk one could bear in an investment. The problem comes when people don’t have a risk capacity and they still put their money in it. Before investing, you should ask yourself, can you see a maximum drawdown into it and still stay invested? If the answer is no, and you can’t see a maximum drawdown in that category, as per our investment guide for beginners, you must not be investing into that category.
Drawdown: If the investment goes south ways and you start having an unrealised or non-booked loss reflecting in your investment.
People will not invest into a physical business, shop, or a startup if they find it too risky but will invest blindly into stocks without even analysing how much risk they are taking. That is the biggest irony of stock market investments, and we felt it should be unravelled in our investment guide for beginners. Maybe, that could be a reason for Namita from Shark Tank India remained to stay out of most of the deals in the first season. (pun intended)
Identifying your investment horizon:
One of the most crucial aspects in investment guide for beginners, is the duration till they are willing to stay invested. While conducting portfolio reviews, investors seem clueless when we ask them how long they wish to remain invested. The most common and seemingly obvious answer is till they double their capital or recover the loss by breakeven. Do you think sharks from Shark Tank India, have a similar investing approach?
No, they understand the businesses’ market and then aim to profit under that timeline. Similarly, you must understand that the question of staying invested should be answerable before even making the investment.
Also, this decision accounts into two factors – how long you could put your money into the investment and how long would the market trend be observable. You must pick the lowest of the two as your investment horizon as per our investment guide for beginners.
Portfolio Management:
As per our investment guide for beginners, people should invest into a limited set of opportunities. While reviewing tons of portfolios, we have often seen people putting their money into 50+ different stocks. Think of it as startup investor, it would be a disaster to have 50+ investments into businesses which need your time. Although stocks don’t demand time for their growth, but they require time for a sound fundamental analysis. You can master fundamental analysis through stock market courses online free with certificate.
Also, you must understand that if you’re putting your limited money into more businesses, then you’re restricting yourself in benefitting from the growth of your investments. Say, if you have Rs 1 lakh and you’re putting the money in different stocks, it means even if you get your investments double in one of the companies, you’re only getting 4000 from 2000. On the other hand, if you had invested into 5 companies and one of them would have doubled, it would be a very good growth. That is the essence of an investment guide for beginners, to make you take well informed decisions.
You can refer to this video to understand how much stocks you must be investing into to get the best returns:
It is essential to understand that finding multibaggers and fundamentally sounds stocks is not easy, even with an investment guide for beginners at your side. Sometimes, even the best of investments which are fundamentally sound, will not be reaping desired results due to their market cycle. But these investments, would eventually bear fruits of profits.
But if you’re someone who is stuck in what stocks to find, how to fundamentally analyse them, you have a great opportunity to learn from the creators of the best stock market courses in Delhi. Sign up for the stock market free webinar,where you’ll learn the art of picking fundamentally sound stocks for long term investing.
