The stock market is a one-of-a-kind environment. It has a high potential for long-term wealth creation if the investor focuses on a small number of well-chosen investment opportunities. And if they can invest in even a few multibager ideas, they will be well on their way to a very wealthy life. There is no doubt that multibagger stocks can be game changers. Even in terms of average long-term returns, equity outperforms every other asset class by a wide margin.
Unfortunately, most people continue to lose money in the stock market. Short-term events influence investors’ decisions. They are drawn in by the prospect of quick profits. They become fearful as a result of the short-term volatility. They continue to speculate on what will happen next. They choose the wrong stocks, resulting in large portfolio losses, and eventually begin to avoid markets. However, we cannot blame the markets for such people’s losses. People make mistakes that could have been easily avoided if they had received the proper guidance. That is the entire issue with going into markets without the right equity investment advisor.
In India, most people invest in stocks based on recommendations from friends, relatives, and “well-wishers.” However, neither these individuals nor their ‘tip-sources’ have the necessary expertise or time to correctly identify the fundamentals underlying a stock. As a result, most stocks invested on the basis of tips end up losing money for the investors. Then there’s the problem of abundance in markets. The Bombay Stock Exchange alone has over 5,000 companies listed. As a result, sifting through so many of them to find the good ones worth investing in is difficult. The problem of abundance is not limited to the number of businesses. There is a never-ending barrage of news and information. However, not all information is useful.
Unfortunately, the investor who is on his own does not know which information to take into account and which to disregard. The investor becomes perplexed. Makes poor long-term investment decisions based on poor stock selection, resulting in losses. Making money in the stock market is no longer just about picking the right stocks. It also entails deciding how much to invest in each stock position (asset allocation), knowing when to sell, and constantly managing various risks. In theory, buy-and-forget works, but it does not work in practice.
People in India don’t seem to understand the value of having a trustworthy guide on their side. They fail to recognize that by paying a few thousand rupees in fees to their advisors, they can avoid losses worth millions of rupees as a result of their mistakes. Having a professional and trustworthy equity investment advisoron your side can provide you with valuable insights into the factors that influence the economy, stock markets, and, ultimately, the individual stocks in your stock portfolio. When you examine the financial lives of the ultra-wealthy, you will notice that they all have access to good investment advisors.
We at Tradeplus know how important it is to help investors take the right decisions. All our services are designed in such a way that our customers don’t get struck at any point of their investment journey.