Four basic thoughts for the Investor – Value Investing
Investing can always be Boring. Day Trading is a day to day phenomenon. But in the reality, it’s different. Would you be happy if you are making profits on Day trading regularly or Would you be enjoy your Daily Loss on Trading ?
In fact, the Trading Strategy takes more time to research than the Investing. As for the Investing, you need to understand the Business primarily. Then you can dig into the fundamentals of the company. At the same time, the Trading is nothing but to speculate with the numbers.
As for Day to Day trading, you have to make a speculative decision. But for an Investing, It’s basics and its business valuation. I am not comparing between the Investors and Day Trader, but the time that you should think twice.
Making a money means minimizing the initial loss or not causing the Entire loss. This is only available in Investment with more time. If you spend too much time on Day Trading, you can go for a Day Job rather than doing the Trade (Intraday).
For example, If you are earning Rs. 2000 per day on your Day Trading, assume that the total investment is Rs. 2 Lakhs and spending the time for Analyze about 5 Hours per day. Here, we are not include the Trading Hours whether it may scalping, Full Time or Swing Trade. It is noteworthy that there is no guaranteed income of RS. 2000 Daily.
Otherwise, it is good to join in a Company with High paycheck or set up a business. Then use the income proceeds to invest it in the Long run.
You should not work too much in the art of making Money. Your Money should work for you and it is important to work out in the long term.
There are four basic insights to be considered a Value Investor, which will enrich you…
- Don’t invest in a business you cannot understand, Else try to understand or Learn it.
- Investing – It’s not your another job or Part Time.
- Investing is purely a Business Model – There is an opportunity to create regular Cash Flow and Capital Appreciation. So, it’s for Wealth Creation.
- There is no loss on Investing, It just shows the RED in your portfolio on XYZ Times.
This is the potential of the world’s Richest People and Investment Management Companies.
Kindly share your views / comments with a smile 🙂