You can only become rich in your late 40s or 50s by investing in stock market, that too when you start investing in your early 20s (Unless your father is already a big shot).
Its a bitter truth but if you see an example of any of the prominent investors, they got the lime light or generated substantial wealth only after 40–45 years of age. People often get attracted by the stories they hear of any investor making Rs. 100 crs from having nothing when they started but they often forget that it took atleast 20–30 years for that investor to build wealth.
An investor pass through many breakdowns like any other entrepreneur. One has gone through dozens of losses and hundreds of regrets of lost opportunity due to wrong decision, 100s of annual reports to find ‘one’ stock and to keep cool when that ‘one’ stock incurs losses. Its an expertise which comes with time and lot of perseverance. There are multiple things which determines how can one be a successful investor and get rich.
- Discipline - Investing is a practice which requires lot of discipline as to stick to your principles and don’ get carried away by the ‘multibagger’ stories. Trust me it is very difficult when only your stocks are not performing and you hear stories from the world gaining X times returns.
- Perseverance - Not to give up on failure and ability to withstand loss. This is very crucial when you are starting from scratch and don’t have hereditary wealth. One should always pursue investing as a secondary profession till the time you accumulate substantial wealth as you need to pay your bills till then.
- Book loss at right time - Investors often get emotionally attached to their portfolio stocks and get stuck with it even if it has not performed well since long.
- Exit time - Most of the investors are very good at identifying stocks and investing in it, but what they fail is to identify when to exit and book profits. They hold on for ages though the stock has performed great in initial 2–3 years but stagnant thereafter.
List is long, but the point I want to make is clear that like any other profession, investing is also about hard work, failure, perseverance, discipline etc and not all investors make it to the top league just as not all the startups are successful. No doubt returns are humongous and worth the effort it takes.
Remember, one cannot reach the destination without loving or getting comfortable with the journey.
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