Did you ever imagine investing in stocks? Where to go? How to go? Where to invest?
These are some questions that a person asks before stepping foot inside a stock market. Often there is a misconception that investing in stocks is very complicated.
However, investing in stocks is less complicated than it looks.
Veteran investors like Someshwar Srivastav feel the major factor associated with stock markets is risk. People back out thinking that the risk is major if they suffer a loss. Truthfully, starting off with a big amount is obviously too risky.
A passive investing approach is the need of the hour. They generate sustainable returns with minimal risk.
There are some basic noob questions that you should ask yourself before investing in stock markets-
- How much should I invest in stock markets?
- Why am I choosing to invest in the stock market and what are my investing goals?
- When should you hold, relax & manage your portfolio?
Slowly we will answer these questions and once you get your answers you will be ready to tread the path of investment in the stock market.
- How much should I invest in stock markets?
The answer depends on a person’s income.
Someshwar Srivastav believes that one can invest up to 15-20% of his/her income each month in stocks.
This strategy requires effective budgeting, but it pays off in the long run.
Generally, there are some accounts you need to invest in compulsorily.
Invest 5-7% in your retirement account numero uno. Funds after retirement are your major source of income from your own investment.
Once you invest in your retirement, invest around 10% in a short/medium term brokerage account. One of the major reasons for investing your money in the stock market is to protect it from inflation.
Cash in your savings account is not really of any use if it is not generating interest, merely being a victim of inflation.
A safe and smart way to invest your money rather than just keeping it idle in the bank is by investing it in the stock market.
- Why am I choosing to invest in the stock market and what are my investing goals?
Why are you investing in stocks and what are your goals? This is a highly important question in regards to investing.
If the reposte involves you investing to get richer quickly then you are living in a dreamland. Don’t let successful traders mislead you into believing you invest and get rich. For it is immensely difficult for some traders to even cover their trading fees.
Also, the risk tolerance factor and time period affect a lot on your decision making. A low risk tolerance leads to safe investment and vice versa leads to higher reward stocks.
- When should you hold, relax & manage your portfolio?
It’s commonly mistaken that you have to constantly purchase, sell & trade stocks in order to become rich. But in fact, it’s the opposite.
When you have done your first smart investment, it is better to stay quiet. Just keep purchasing and holding stocks & leave your assets alone.
However, it is important to assess when you should change your portfolio.
When is it time to sell assets and when is it time to purchase new stocks it’s completely your decision.
Conclusion
Stock market investment, though intimidating at first, is a worthwhile journey with the right mindset, strategy, and guidance.
According to Someshwar Srivastav, “Knowing your financial goals, managing small amounts, and approaching in a disciplined manner helps one achieve long-term success”.
Focus on sustainable investments, wise risk management, and regular portfolio reviews to build a solid foundation for financial growth.
Investing is not about overnight riches but about consistent efforts and informed decisions that yield results over time.
Someshwar Srivastav‘s words are a beacon of light for those entering the world of stock markets.
He is an excellent guide, both in theory and practice, as he teaches one how to invest.
Start small, stay patient, and let your investments work for you as you begin your journey toward financial freedom.
