Since the Covid-19 pandemic initiation in early 2020, Investing in the stock market is often seen as a quick way to make money.
For making this quick buck, individuals are ready to follow ‘tips’ or rumors from – friends, online groups(Instagram and WhatsApp), or even big investors.
This though does not work in the favour of the investor in 99.9% cases.
Why would be the obvious question?
Investing in the Stock Market is an art and it requires patience and discipline.
Owing this, the journey of investing and staying invested is unique for every investor.
Blindly following tips often overlooks key factors like market trends, company performance, and risk tolerance.
Please read the sentence again!!!
In the last two decades, a common tactic were lot of retail investors have burnt their hands is by trying to follow the ‘Market Trend’.
Large Investors through print & electronic media often mislead retail investors by propagating the idea of ‘Market Trend’ and ‘themes to invest in’.
This is red flag as these ‘trends’ are avenues in which Large Investors have already bought huge positions and want to drive the prices up & exit it while making handsome returns at the cost of retail investors.
In the post Covid-19 era, retail investors have thrown caution to the wind and have got into overvalued stocks & instruments – limiting the potential for future gains or even leading to losses when the price corrects.
Taking the learning from the experience, it would be prudent to stop relying on shortcuts or tips.
Invest in the financial markets or instruments only after understanding market fundamentals, analyzing companies, and developing a strategy that aligns with your financial goals.
Hope this helps
God Bless!
Lateral Thinking 