New investors should focus on long-term strategies in Stock Market
Hey there, middle schoolers! If you’re thinking about investing in the stock market, listen up! Ramesh Damani, a market expert, recently shared some great advice during a panel in Mumbai on December 13.
Look at the big picture
Sometimes the market might not do so well, and you might see your money go down. But don’t worry! Damani says you should think about it differently. Back in 1989, the Sensex (a stock market index in India) was around 1,000. Today, it’s at 80,000! So, it’s smart to invest in good-quality businesses for the long haul.
Invest for the long term
If you’re just starting out, Damani suggests using only 5-10% of your money for trading. The rest, 90%, should go into high-quality businesses that you plan to hold onto for a while. That’s where the real money is made, according to him.
Learn from the best
Damani mentioned Warren Buffett, a famous investor, as an example of how disciplined investing can make you rich. Buffett went from being middle class to a millionaire by making smart investment decisions over time. Trading might seem exciting, but it’s unlikely to make you wealthy like long-term investing can.
Think long-term
Thanks to something called compounding, your money can grow a lot over the next 10-20 years if you invest wisely. So, start early and be patient. You could end up in a much better financial position than where you started!
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Stay tuned for more updates and insights on the stock market! For more insights on investing in the Indian stock market, check out resources like Moneycontrol and NSE India.
Disclaimer: This article is for informational purposes only and should not be construed as financial or investment advice.