What are the greatest lessons I have learnt from Indian stock market?

My journey of stock market is not so unique. I have also made losses like you all. That costly lessons have taught me a lot.

Let’s have a look at those invaluable lessons which may help you in your journey of creating wealth.

Formal education doesn’t matter.

Unfortunately, no school or college teaches us even the basics of personal finance and wealth creation. Ace investors like Porinju Veliyath, Vijay Kedia etc. Surprisingly do not have any greatest credentials but they are successful investors. CA/CFA is good but it’s not necessary to succeed in the market.

Knowledge is free

All the knowledge about the market is available free on the internet. If you love reading books, here is the free library of books on the stock market. Reading annual reports of the company is called the fundamental study, I would suggest you read annual reports of the companies. If you do this, I guarantee you will know more than 99% of the crowd.

Every day is an opportunity

There are more than 7000 listed companies on the exchange. Every day there is something happening in those companies. There are a lot of opportunities every single day and we are still cribbing about how our life is unfair and how unlucky we are. Patience and perseverance is the key to success in the market. There are many internal and external factors affecting the performance of the company. With all these internal and external factors actually, you are looking at the abundance of the opportunity every day. Your success depends on your patience, conviction, risk appetite and your position in the market.

It takes courage and conviction

Now as you have all the required knowledge, you must channelize it into your favour for creating wealth. The news channel, stock tips, groups etc are a good source but they cannot give you an insight or conviction to buy stocks and hold it tight in the bear phase. If you don’t have a conviction on your stocks, you will not be able to hold it in the bear phase, and you might miss an opportunity of creating a wealth. Investing is not a group activity, it’s an individual wolf activity.

No one can predict market direction

Indian market is highly inefficient and thus volatile. Any market which is efficient and stable cannot give you 30% or even more returns in a year. In such scenario, no one can predict the market direction. Forget about small caps, the so-called experts cannot even predict the price of Infosys in spite of thousands of analysis are done on it.

Think big, be smart

We all know that 1% of the world population owns more than 30% of world’s wealth. Have you ever try to look into their life as what they have done to be successful and wealthy? Hard work is not a guarantee to good life. If so then workers would be wealthy and richest in the world. The thing is you must find a way to deploy your capital in such a way that it gives you good returns and will spot you in that 1% of the population.


I am not a SEBI registered advisor or analyst, as an investor, my views may be biased.

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