One of the first reason people are attracted to Stock Market is the success stories they have heard during any social gathering.
Most of the times the protagonist of the story is an average guy who happens to be ‘a friend of a friend’ and story is studded with references of him being lucky and how Stock Market multiplied his money multi fold in a short span of time (which keeps on shortening with every narration).
Now, Stock Market for the listeners appears to be some kind of Casino where you just need to have ‘a little luck’ and you are good to go.
Very excited having found the elixir of wealth….opens a brokerage account…..transfer money to it and in next few days try to overhear some‘Tips’from ‘Guy’who is already into it .
Switch on the TV and try to make sense of BUY/SELL recommendations of ‘Experts’ who seems to know and have opinion about everything in Stock Market.
With a lots of enthusiasm and courage finally buy some hot stocks.
Now the cycle of following the Up and Downs of Stock Market every day begins….. filled with the hopes of getting the invested money to double in few days or weeks or in long term of few months.
Exuberated with every rise of points and engulfed in pessimism with every fall of points in Market.
Finally after few months and lots of nerve wrenching experiences due to Stock Market fluctuations (not to mention 20% to 30% percentage down).…. and after countless prayers to GOD
“just get me even and I will never do this again.”
…..….the person decides enough is enough and sells all his holdings with a promise to never come back to Stock Market again.
Sound familiar …huh?
What went wrong?
- Is something wrong with the Person?
- Or maybe it’s Market?
- Or it’s the wrong timing of investment?
- Or it’s the wrong Stocks chosen for investment?
- Or is it something else?
To be able to even attempt to answer this question we need to understand some basic things….. things that at first may seem rudimentary but ignoring them is planning for failure in your investment journey.
So, let’s begin our journey towards financial literacy….Stay tuned.