Investing in the stock market is one of the most common ways to generate wealth over a long period. However, every investor’s journey towards building a corpus via investing differs from the others because of the difference in their choices, goals, and risk-taking capabilities.
Building a strong portfolio through the stock market involves a lot of trials and errors, thus, teaching you valuable lessons along the way. Whether you are a newbie or an experienced investor, mistakes can be made by anyone, what is important is learning lessons from your mistakes. Continue reading to know what lessons experienced investors have learned during their journey and wished they knew these lessons sooner
Valuable investment lessons that investors wished they had learned earlier
- Market fluctuations shouldn’t be a worry for long-term investors
Be it a newbie or an experienced investor, when the market is volatile, everyone is skeptical about investing. But you should not depend on market volatility. It means don’t sell a stock if it isn’t currently performing or don’t buy a stock only because it’s the latest craze among investors. This is because when you take an investment decision based only on its current performance, it might hurt your portfolio in the long run. Thus, while considering a stock for your portfolio, You should always do your research which includes the company’s fundamentals, performance history, growth prospects, industry trends, etc.
- Invest early
Investors with years of experience will always say one thing – they wish they had started investing sooner. Generally, people start investing once they set up their careers, get married, or feel they are now settled. Starting early has its own benefits such as the power of compounding, the opportunity to take risks, and inculcating a habit of savings. So, if you start investing early, you will be giving your money enough time to work for you and generate wealth.
- Opt for tailor-made investment strategies
There are numerous avenues for investments in India for you to choose from. As an investor, you should opt for an investment option that best suits your financial goals and risk appetite. At Angel One, you get to choose from multiple investment options while keeping your goals in mind. Apart from this, you will also get new-age products and tools like stock advice on the go through ARQ Prime*, our AI advisory.
- Always set a goal
When you have a goal in mind, it helps you make better decisions and build investment strategies as per your requirements. Setting a goal not only motivates you to continually invest but also makes choosing an investment option easier. If you haven’t set a goal before you plan your investments, chances are you will be all over the place and won’t have a definite path to take. Thus, it’s always wise to set a goal before investing.
- Understand that your journey and goals are different from others
There may be a stock that everyone else is buying, but that doesn’t mean you too have to. This is because every investor is unique and has different risk-taking abilities. Each investor starts investing with different goals in mind and takes a unique path to achieve them. So, rather than relying on other investors’ decisions and portfolios, you should buy stocks that align with your investment goals.
Warren Buffet once said, ‘It’s good to learn from your mistakes. It’s better to learn from other people’s mistakes.’ When it comes to investing, nobody is perfect. Even the experienced investors regret making mistakes but investors who choose to learn from their as well as other people’s mistakes built a strong portfolio and wealth. If you wish to take advantage of the tremendous opportunities offered by the stock market, start investing now. However, don’t forget these valuable lessons by seasoned investors while planning your long-term investment strategies.
*It is not an exchange-approved product and any dispute related to this will not be dealt with on the exchange platform.
Disclaimer: This blog is exclusively for educational purposes only.