Focus On Investment
In stock market there was a lots of people who create there wealth from Investment e.g. Rakesh Jhunjhunwala, Ramdev Agarwal, etc. They Can't focus on Trading they are fully focus on Investment.
There was lot's of people i saw who focus on trading from beginning of journey in stock market. That was the biggest mistake they do. Because wealth is not created by daily buying & selling it's created by long term investing.
Think For Long Term Perspective
Many people Invest in Company for 1 week, 1 month last to last 1 year that is another mistake they do. If u wanted to create the multibagger return then u think for longer term prospective around minimum 5 year. I want to give u simple example....
Kamlesh Buy home of rupees 20 lack & also he buy the share of reliance industries of rupees 20 lack @ at price of 502 & they have 3984 share in 2010. After the year they sold the share of reliance industries @ at price of 545, there gain was about 1,71,312. If he hold the share as of now then he's gain is about 62,00,000 because share price of reliance is now 2,072. In 2020 the home was worth rupees of 45 lack that means gain about 25lack.
so what was the conclusion of Kamlesh story ,
Think Investment as like a property of u. We are hold property for long term but when the investment are concern we think for short term, so change mindset about investment & Think for longer term prospective.
Lots of people buy the right share in there portfolio but they haven't patience to hold the share in there portfolio. In market there was operators who dump & pump the share price of company that's way invest in good companies (large Cap) & be patience.
Quality Stocks (Large Cap)
Most of the people buy the penny stock & then they hold it for long term. I don't say invest in penny stock is wrong but some people invest 90% of there money in penny stock that was wrong things, Invest 1% or maximum 5% money to penny stock (It depends on your risk taking capacity).
Most probably invest your money in large cap companies + Rank 5 companies of Nifty 50. Because in top 5 there will be a good quality stocks are available in that.
systematic investment plan (SIP)
Many People directly invested all there money in stock market at one slot, that was the biggest mistake they do. Because some time market is on very high level so then u invest your money through SIP mode.
SIP means a systematic investment plan. That means u invest a specific portion of your money on a specific day. The SIP minimizes your risk.
Diversification of Investment
" don't put your all eggs in one basket Investment "
The most important point was because so many people invest in one company share heavily. They put there 80% of the money in one company share that was a big mistake because if the company fail or something happens in that company then your investment is lost or gone.
So most important, diversified your investment portfolio. Invest maximum 15% of your money in one company. Don't go beyond on that.
Monitor & observe your portfolio Time to Time
Most people pic the stock's in there portfolio but they can't monitor there portfolio Time to Time, that's way they fail to realize that some stocks are not good. I would like to give some example ,
1> Yes Bank Ltd share price in 2018 is near about 264 rupees but now the Yes Bank share price was 16 rupees, So why these share price is crash??
Because the founder & CEO of yes bank Rana Kapoor create the fraud in NPA of Yes Bank.
2> Dewan Housing Finance Corporation Ltd share price in 2018 is near about 600 but now the share price of DHFL is 20 rupees, So there is also same reason for stock crash.
That's Why investor can Monitor & observe there portfolio time to time.
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