THE LONG-TERM INVESTING TRAP
hello friends my name is Pritam today we will discuss
- LONG TERM INVESTMENT
- LONG-TERM INVESTMENT MARKETING
- THE REAL STORY OF A LONG-TERM INVESTOR
- ESCAPE STRATEGY
- CONCLUSION
LONG TERM INVESTMENT
After I pass my 10th, I am got to know about the share market from my elder brother, he told me how a share investment can grow your money without any effort, he advises me to watch a business news channel so I started watching the channel with a lot of interest. Every day I try to get something from the market a new word, a new term then I search on the internet about it, but unfortunately, I could invest because I was below 18 after two years when I am 18. I open my first ever trading account and started my investing journey that time I know a little about value investing. value investing is finding a stock that is undervalued and holding it till you get your value which is a great thing but takes time to reach its real value. As it takes little time to grow it's become a long-term investment. In long-term investing the main goal is to hold the stock to your right value. once your stock reaches your target value you must have to reevaluate the stock value. If the share takes time to grow to reach its target it can only be invested in the long-term
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LONG-TERM INVESTMENT MARKETING
In the above, we define the real meaning of investing which is real. But we now discuss the marketing part of it.
People buy a share without any analysis which is the result of influence from different sources. They buy stock but when it falls they worried about it then they start watching videos about the stock. when analysts tell them to stay invested for the longer term if the stock is below your buying price.
Marketing people come to discuss warren buffet and how he gets rich by investing for the long term and he gets the benefit of it, so stay in the market for the long term. some people give warren buffet the quote "BUY STOCK FOREVER"
They gave examples of shares that give multiple returns in 5 years they will show you how much you can get if you invested in those stocks. Abc share price was at 20 RS per share and look today it is 200 per share which means it generates 10 times return.
AS EXAMPLE If you have invested in that stock you could have got 40000 on the investment of 4000 only and that is the power of a long-term investment. But they will never tell you the logic behind the stock has performed.THEY will tell you it has a very high potential for growth they always take you away from your reality, only you can find the real truth if you know about the value of the stock.
MANY analysts will tell more than 20 shares if it performs well then ok other wish stay invested for the long term it also matches your psychology for which you will stay invested for profit in long term and after 3 years it already down by 70% and you see analyst tells to sell that that stock, at last, you stay there expecting it will grow by someday and you are in the long term trap.
The long-term marketing strategy will always work because you can not remember things for the very long term without any notes the day you stated forget, the marketing team will come up to you with a new story.
Many times marketing people come with honesty but people get failed to execute the strategy for which people feel bad about it but when they follow step by step next time the strategy does not work or works sometimes.
In recent time I saw an analyst give a share for long term investment and the share shoots up 30% within a month he tell that you can do profit booking and give the next target I am very much sure the person who is in profit will not book profit now the share is 40% down which means the investor is in a loss.
How you could recognize marketing?
- Marketing will feel you FOMO to buy the stock
- You can feel it’s A Easy Money
- You will invest without knowing the MARKET CAPITAL of the company
- If analysts are LAUGHING
THE REAL STORY OF A LONG-TERM INVESTOR
Mr. RAMESH WHO IS very much new to the market in 2010. He saw that tata share is the backbone of the Indian economy for which he thought it could be a great thing for the long term so he buy TATA MOTORS share for 218 on 5 November 2010.
When the share fall to 187 on 29 July 2011 he averages his money now the average price became 190
On 5 March 2015 tata's share touched 564 RAMESH feel very proud to invest in that stock but this time he did not buy any shares he want to sell the stock for profit booking but before that he called an analyst and ask about the share. The analyst said you have bought the right share so buy right sit tight. Ramesh's confidence goes high and he holds that stock.
Stock goes higher of 609 but on 1 July 2016, it goes down by half when the share became 300 than on 26 April 2019 it became 185.90 and the 9 April 2020 the share come to 76.60 but at the time MR RAMESH wants to sell but keeping a little hope, at last, he sells the share when it is 250, he told me I learn for book maximum profit when a share is at an all-time high.
ESCAPE STRATEGY
You should not invest in a share without your own analysis, there is nothing but the profit speak loud in the share market. you should always book profit in the share market. If you are not booking profit then very soon your profit will vanish. If you do value investing then hold it for the long term but whenever you get the opportunity to book profit, you always book small profit.
Whenever you invest in the stock market you should always maintain a stock journal in which you should write the date of investment the cause of investment and Target.
YOU SHOULD ALWAYS EXIT FROM A STOCK THAT IS DOWN BY 50% IN 1,2 OR 3 MONTHS.
YOU should always buy a share when it going up from its all-time low, do not buy a share when it is going down from its all-time high.
CONCLUSION
You should always read about things which you do not know for which nobody could keep you in dark in long term. knowing unknowingly people are falling into trap of marketing you are always aware of your requirement for which you can buy the product that you need. now marketing became the most valuable part of a company. We should always look out for reality and a good guru who will drive us to a good way. You can escape from anywhere if you realize the reality.
DO IT
TRY IT
UNDERSTAND IT
AND THINK TO APPLY
THANK YOU
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