How to be a Calm & Profitable Investor – 12 Techniques

Stock market rather I would prefer calling it a Global Stock Market have made ample of corrections in itself with the time. Irrespective of the stock market ……

• US Europe – NYSE
• US Europe – NASDAQ
• Japan – Tokyo Stock Exchange
• United Kingdom – London Stock Exchange
• China – Shanghai Stock Exchange ; Shenzhen Stock Exchange
• Hong Kong – Hong Kong Stock Exchange
• Canada – Toronto Stock Exchange
• Brazil – BM & F Bovespa
• Australia – Australian Securities Exchange
• Germany – Deutsche Borse
• Switzerland – SIX Swiss Exchange
• Spain – BME Spanish Exchange
• India – Bombay Stock Exchange ; national Stock Exchange
• South Korea – Korea Exchange
• South Africa – JSE Limited
• Russia – MICEX

…….you prefer to invest in, your condition or situation will be alike. Ample of new investors might have entered in the market and due to the market position couldn’t relax and must have spent sleepless nights. It’s pretty much obvious that a new investor started investing in stock or mutual funds couple of months back and suffered a loss of something more than 25% of his investment.

Fifty (50) months back when the markets across the globe started shattering, even I being a new investor that time went into the panic mode because my portfolio went down approximately to half of it. Instead of acting in a panic mode I preferred listening to the experienced investors and as suggested by them I decided to hold my quality stocks and now I assure you for all my happiness and relaxation.

Here I am going to share several simple tricks rather techniques to be a calm investor in the market:

1. Try to be patient as an Investor: Being patient is the best key to success , because decisions made in panic mode are never fruitful. If you don’t have ample of cash to invest in the market then be patient with the investment already made. Becoming millionaire or billionaire in a day or a week is like an impossible task. The youngest billionaire ever on the planet earth is ‘Mark Zuckerberg’ – Founder of Social Networking ‘FACEBOOK’. Even he took 23 years to become a billionaire.
2. Ignore Analysts: Ample of analysts share their analysis and their reviews at media, but I firmly believe their analysis is just going to create confusions for you. Some analysts say things have doomed in the market, but few belief things are going to be great in long run. So these things are simply going to confuse you. You prefer listening to analysts just for your personal satisfaction and hope.
3. Adapt and Understand Market Cycles: Change is a never ending process. Everything on this planet Earth has a cycle. Let it be any asset like stocks; mutual funds; real estate has to go through the cycle of both ups and down. There has been several time span when the prices came down of stocks, but with the time premium companies reward their investors. So understanding market cycle is a must.
4. Stick to the ‘GURU Mantra’: To make money from investment made by you, you have to move out of the league, while choosing companies for investment. Go for investment in premium companies and they will surely fetch you in future . Mr. Warren Buffet often referred to as a ‘LEGENDARY INVESTOR’ made most of his money thorough investment. He moved out of the league and invested in premium companies for better returns.
5. Stop staring at your portfolio every now and then: One of the common mistakes committed by the investor is they keep a regular eye at their portfolio as the market opens. Every single ups and down in the market makes your eye brows move accordingly. This won’t help you in any ways. Best you can do is stick to the basics and keep a track of the fundamentals of the company. if your company is growing and is profitable then it’s all fine but if its not so then you have to find a way to move out of it. Just like you never look at your bank FD’s till needed you need not look at your portfolio too.
6. Keep yourself away from hot-tips:  All I can say for this is just stay away from hot-tips which assure you to get as a billionaire in a span of couple of weeks or months. They are simply going to ruin retail investors and flourish the manipulators.
7. Keep yourself away from rumors: Ones in a while you will get across to rumors as in how fundamentally strong and premium companies are going to shut down and go bankrupt in any short span of time.
8. Seek advice from actual investors: instead of seeking advice or listening to analysis or your brokers prefer seeking advice from ideal investors who have been in the market on regular basis and have been successful enough as an investor.
9. Don’t put all your eggs in one basket is while trading in the market keep it in mind not to put all your eggs in a single basket. I mean you should invest in a diversified way father investing in a single company or in any particular direction as in only shares or only mule funds etc.
10. Go defensive: Investing plays a defensive part i.e. ignore maximum risk and invest being on the safer side. Prefer investing in premium companies who are fundamentally strong . Ignore risks as much as possible.
11. Plan up your retirement: Well in the present scenario everybody tries earning at present in such a manner that they lead a lovely life and also plan a lovely life after retirement .So they go for retirement solutions and for it they contact retirement planners. Retirement planners pour their investment in diversified manner so that they start getting returns after a particular age as in 60 years or 65 years on the monthly basis. They charge investors for these kind of retirement planning. So become your own financial planner and instead of paying others save the money and plan for your retirement.
12. Put money at work: Money needs to be put at work because till the time money is lazy or sleeping in the lockers its never going to grow. If you are going for fixed deposits at bank you will get 7% interest and as a senior citizen 9.25%. If you choose to go for NATIONAL SAVING CERTIFICATE(NSC) your money will double after 9-10 years. In Indian economy you will notice that Earning rate stands quite below to the expenditure rate. So to fill up the gap you need to manage your portfolio in the best possible manner. If you give a look at the investment process followed by Mr. Warren Buffet you will find he always went for premium companies. When the market situations are down, target those companies . That’s the time to opt them and wait till they pay you in a much better way. So all you need to do is to manage your portfolio in such a manner that you get the best results to narrow the gap between the earning and expenditure.

I, assure you that being patient and following the above mentioned several easy techniques you will surely be a calm and profitable investor. Good Luck!!

Also Check:

How to be a better decision maker

Frugal Living – How to reduce your living expense

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