What are the habits that investors must develop? We may know many stories of people becoming very rich and poor in the market in the past. Now our main goal is to find how come only a few people grow rich and most of them become poor. If we clearly analyze those people who made [...]
How to think clearly in investing Most of the investors think too little but calculate too much and their lies the big problem for them. Investing in the business, where we have to think a lot and do fewer calculations. Most investors develop the habit of calculating precisely to three decimals points or even longer. [...]
Psychology in Investing It is very difficult for investors to resist the temptation to act frequently in markets. But frequent activity doesn’t guarantee any extra returns for investors. The very basic nature of the market can be attributed to the process of pendulum swing. The pendulum swings from one end to the other end and [...]
Delayed Gratification In investing Patience pays a huge payoff in investing. In the stock market, trying to get rich quickly is the quickest way to become poor. Investors who lack patience have no place in the stock market. Most of the investors who claim themselves to be long term investors also become prey to this [...]
What is Position Sizing? Investors always face the dilemma of how many portions of their portfolio should be allocated to certain stocks. Investors generally allocate a high percentage of their portfolio to the stocks in which they have high conviction. But allocating our capital based on our conviction itself is not a good strategy. It [...]
Expectation investing There is no monetary loss or penalty for investors who don’t make smart investing decisions in markets but there is a huge monetary loss if investors make dumb decisions in the stock market. Not making dump decisions should be investors priority rather than making smart investments decisions. One of the ways to not [...]
What is the circle of competence in investing? The best time to invest in the stock market is when you don’t feel like investing in the stock market. When we invest in the stock market, we tend to seek social conformity. When we [...]
How To Build a Portfolio – Concentrated or Diversified? Building a portfolio consisting of quality business is the most important job of the investor. Building a portfolio takes time because we may not get all quality company at the same time and portfolio construction is a lifelong process in the investment journey. Everyone wants to [...]
How To Predict In Stock Market? Prediction is one of the easiest things to do but very difficult to get it right. Even though investors know that we cannot predict the future exactly, we are always in the business of predictions and extrapolating the numbers. As an investor, while analyzing the company we are looking [...]
How To Invest By Asking Right Questions? You don’t need big ideas to be a successful investor and create wealth but rather need small ideas which can work really big. Investors make many decisions in their journey and most of the decisions taken end futile. No investors take investments decisions by imagining that one will [...]
