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Share Market Success Mantra:Never Stop Investing and Always Consult with Experts

Submitted by admin on February 24th, 2024

After Covid-19 and subsequent lockdowns, the number of people opening demat accounts has been on the rise. In 2023, nearly 114 millions of people opened their demat accounts and the figure shows a nearly 2.8 times increase. There is no denying the craze in the bull market.

In a nutshell, share market activities have been attracting people to join the game or drama, whatever you like to call it. A massive swell in the number of traders is a testament to the reality. These traders take fees for their advice though most of the time, the transaction remains a carefully buried secret.

Another trend has emerged due to the popularity of social media sites where people with little knowledge and often no experience in the share market give tips on how the market operates and other things. These social media influencers earn a great deal of money from their videos but people get little or no benefits from the kind of information they share.

Consider the picture

Share prices of many infrastructures and railway companies have increased manifolds in the last two years, with their fundamentals or earnings remaining absolutely static. On the other hand, HDFC, an elite name in the banking sector, has already suffered an 18% dip in January, 2024.

And you see some YouTube influencers or TV experts leaving no stones unturned to defend their position, no matter whatever happens.

They justify,

• When the market goes up
• When the market goes down

What to do in such a scenario?

We have one mantra for investors – never stop buying

Stock markets function as a net positive indicator for wealth generation in the long run. By nature, they can never slump to zero.

Case Studies #1: HDFC Bank

Their stock has been a hot topic of discussion over the last few weeks. Many stock market pundits think that the bank is in the sunset years of its life. Unfortunately, most of them are not experts but social media influencers in disguise of share market analysts.

On a 3-year horizon, their stock has been showing a static nature. However, the last 2 decades’ story presents a completely different scenario.

It has been working well as a wealth-generating tool for investors.

Case Studies#2: Bharat Heavy Electricals Limited (BHEL)

In the last 3 years, BHEL has become the apple of the eyes in the stock market. Some people are hell-bent on owning it whereas some wonder why they did not buy the stock.

However, if anyone had owned it for the same tenure as he/she had owned HDFC bank, it would have given him/her enough reason to take sleeping pills.

How to avoid being in the red?

Just sign out from the market and don’t stop investing all the through. If you are not withdrawing your money in the next 15-20 years, don’t bother about today’s scenario.

Final Words

With a fountain of information readily available as soon as you search on the internet, it is hard to distinguish between signal and noise. The situation gets more difficult if you own a business or do a 9-hour job. It takes a toll on your health and even your loved ones.

Some people always want to make a quick buck in the share market to secure their post-retirement future. Such a temptation must be avoided. Without understanding the nature of the beast, you will never be able to tame it.  So, always consider consulting with experts to make the most of your investments in the stock market.