Myth: Investing in Equities is all about Luck
one ends up
and selling Low
In reality this is pure speculation
Is it all about
leverage used for investing in equities.
Reality: Investing in Equity Markets is a Science
Investing in stocks requires an in-depth understanding of the company’s business model, topline, net profits, free cash flows, return ratios and pedigree of the management.
One cannot time the market. It is next to impossible to catch the highs and the lows.
Patience and clarity of investment goals allow an investor to benefit the most by investing in stock market for medium to long term.
Markets will keep swinging between – Fear Cycle & Greed Cycle.
As a result, stocks often get over-punished or over-rewarded irrespective of their fundamentals.
Fear Cycle offers the best opportunity to build a portfolio by investing in stocks of high-quality available at a bargain price.
Greed Cycle offers the best opportunity to book profits and maximize returns while making equity investments.
When it comes to the stock market investment, everyone in our vicinity have their own stock advice and do’s and don’ts list. However, while investing in the stock market, it is important to stay away from ‘noise’ & more important, the psychological effects of that noise.
So, with the continuous uproar in the background, how you can identify the systematic investment methodology from the rest? How can you ensure that the emotions such as greed and fear are not affecting your investment decisions? And with each investor having a unique investment need, how can you identify the right stock advice which caters to your financial goals?
The best stocks to invest in are not determined on the basis of the time you enter the markets, but on the basis of their business model, the credibility of the management and health of the financial statements.
Research and Ranking rely on the importance of these fundamentals of a company and how it can be transformed into a customized investment solution which delivered through technology, can address the investment needs of today.
The game of stock market investment is changing with dynamic influencing factors, change in investment needs and technological disruption. How to invest in stocks is an art and it is about understanding businesses from a perspective of being co-owners of your capital invested.