When we buy equities, we start looking at the price the next day or next week. For many who call themselves investors, the long run is 1 month. But do you think the management of the business of which we buy shares really looks at their business growth in such a short period?
This basic rule states that -
1. You first have to sow a seed.
2. Keep watering it for it to grow.
3. Wait for some time with patience.
4. With the passage of time, you will get the fruits of your hard work and patience.
Equity without a doubt is the greatest tool for building wealth. Stocks must be a part, of nearly any investment portfolio. Over the last decade, the average person’s interest in the stock market has grown exponentially. This demand coupled with innovation in trading technology has opened up the markets so much that nowadays it is very easy for anyone to buy and sell stocks.
People think that stocks are the magic answer to instant wealth with no risk. The only solution to this is education. The key to protecting yourself in the stock market is to understand where you are putting your money or get a financial planner/analyst to handle your equity portfolio.
Stocks are generally considered riskier investments and require a higher rate of return. You can lose all of your investment with stocks. The flip side of this is you can make a lot of money if you invest in the right company. with the right-hand holding. Make sure you don’t get into the market before you are ready. Be conservative and never invest in anything you do not understand.