By Irshad Mushtaq
Historically, people in Kashmir lost money due to intraday trading instead of investing. Holding quality shares, diversifying portfolios, and proper money management are key to success in the market.
Let me first explain historically, most people did intraday trading instead of investing.
Investment means holding a position for a long period and having patience for fluctuations, which can give good returns. For example, the Nifty index has shown a compounding annual growth of over 17% in the last 20-30 years. However, for investment, one must accept market fluctuations that occurred during that period.
So why do people lose money in intraday trading? The answer is that they focus too much on the screen and trade based on emotions, risking large sums of money. Emotional trading on the same day is a sure way to lose money. Investors can create wealth in the stock market if they practice proper money management, hold quality shares, diversify their portfolios, and have proper asset allocations. It’s important to understand these things to avoid losses and create wealth in the stock market.
Stock market investment is passive income, without doing anything wealth creates , well specially means without doing anything subject to hold quality ,we need to understand it’s also business as you are becoming a shareholder of the company so you have to think like an owner, not just speculate. If we look at the stock prices 20 years ago, they were at quite low amounts like 100 rupees, now they are between 2000 to 12000 so they have increased by 20 times, 30 times, and 50 times, but still, people lost money during that time due to increased investment risks. If someone is a beginner, trading can be detrimental to their financial health.
It is crucial to focus on quality investments when venturing into the stock market. One should recognize the risks associated with intraday trading screens. Although holding non-quality shares can prove to be risky.
Learn from the insights of writer and investor, founder of MI Securities and Business Partner at Sharekhan! Reach out to him at [email protected] for valuable knowledge on financial matters
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