Dear Readers,
As the post war situation, we need to consolidate all our efforts to adjust to movements and dynamics to reap consistent profits.
Just by merely identifying a good stock for investment is not enough at all.
The next crucial step is to purchase it at the right price at the right quantity.
If you buy shares of an excellent company at the wrong price in the market, you might have to wait for a long time to reap the full benefits of that investment.
That is why I always place a great importance on the purchase price.
My investment style always rely on three important elements: a good company, the right price and the patience.
A major advantage of buying the stock at a good price is that you do not need to worry excessively about the daily market volatility.
This is because, if the business is sound, then the time will work always in your favor.
The important aspects that we need to take care are:
Investing is only a tiny amount despite having conducted thorough research about the companies.
Seeking others' opinions instead of trusting your own analysis.
Selling immediately upon making a small profit.
Hesitating to look for the next opportunity after a loss.
Waiting endlessly for the perfect market conditions to align with for us.
These behaviors do not indicate a lack of knowledge about investing;
It is rather, they show that fear is dictating our decisions.
Often, overcoming our own fear is harder than beating the market.
Yet, our next stage of growth lies in the decisions we make by moving past that fear.
The fundamental forces that drive the market are supply and demand.
If there are more number of sellers than the buyers, the price will ultimately drops.
If there are more buyers than sellers in the market, the price would rise.
So, you should always rather than just looking at the stock price, it is important to understand the dynamics behind it.
Is selling pressure easing?
Is demand increasing?
Often, the best opportunities that do not appear when they are obvious to everyone;
They emerge while demand is quietly building up.
Success always in investing does not lie in predicting every single market move.
It lies in identifying situations where demand is strengthening relative to the supply.
Because, ultimately, it is neither opinions nor predictions that determine a stock's price.
It is simply a matter of supply and demand.
Have a great time at the market!