1.Don’t put all your eggs in one Basket: We must create a diversified portfolio. The future is always coming up with surprises for us, and the best way to insulate yourself from these surprises is to diversify.
2.NEVER BORROW and Invest in Share market: When you enter a bear phase of investment, you sometimes end up losing your principal and it is essential to possess the power to hold stocks in times of uncertainty and not end up exiting the market due to pressure of debt burden. Therefore , it is suggested that you should invest in market only with your savings.
3. Make Investment only for LONG TERM: Growth Happens over years. Why measure performance by everyday price movement? It is important to stay invested to realize your goals, as it is difficult to predict the market with 100% accuracy due to excess volatility in short term.
4.Analyze and Invest only in BUSINESS YOU UNDERSTAND: Always analyze and understand the business model before investing in a particular stock. Unfortunately, people end up investing based on random tips.
5. Be Patient: Don’t panic at short term volatility when your goals are long term.
6.DON’T TRY TO TIME the market, you will never enter at the bottom/ exit at the peak: Believe in the Valuations & analysis, thereby set entry and exit points for your investment. Never try to find a bottom for entry/peak for exit. You will end up losing an investment opportunity or failing to make a profitable exit.
7.Follow STRICT DISCIPLINE:Set Targets price for entry and exit and thereby book profits timely. Following strict discipline never gets you carried away by your emotions and helps you make a balanced decision.
8.Enjoy POWER OF COMPOUNDING -Start your Investment Journey Today: Many say they would start saving when their income grows. If you don’t save when income is small, you’re unlikely to save when income grows. An amount of money invested today grows year on year to help you move one step closer to your goal.
