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1/8
Often hear salaried people complaining about volatility being the reason they stay away from markets .
IMHO I feel #volatility is not risk . It's actually an opportunity to be capitalised upon sensibly .
( T&C being applicable as always*)
A few pointers on the same.
Often hear salaried people complaining about volatility being the reason they stay away from markets .
IMHO I feel #volatility is not risk . It's actually an opportunity to be capitalised upon sensibly .
( T&C being applicable as always*)
A few pointers on the same.
2/8
* Being salaried helps immensely as one gets a fixed sum of money monthly . Less uncertainty of cash inflows aids in better decision making as we don't resort in knee jerk reactions .
* With proper planning one can keep aside money to invest systematically in markets.
* Being salaried helps immensely as one gets a fixed sum of money monthly . Less uncertainty of cash inflows aids in better decision making as we don't resort in knee jerk reactions .
* With proper planning one can keep aside money to invest systematically in markets.
3/8
* In the event of a sudden melt down we won't be forced to sell our holdings for want of money for next month's expenses.
* Thereby , we ensure we do not interrupt the process of #compounding . Otherwise, one is forced to sell even good stocks for want of money .
* In the event of a sudden melt down we won't be forced to sell our holdings for want of money for next month's expenses.
* Thereby , we ensure we do not interrupt the process of #compounding . Otherwise, one is forced to sell even good stocks for want of money .
4/8
* Sitting on Cash is also a position. We often forget this .
* Nothing like having cash to deploy when markets fall ! ( Easier said than done though
. Afterall conviction gets tested big time. But if done rightly works wonders)
* Sitting on Cash is also a position. We often forget this .
* Nothing like having cash to deploy when markets fall ! ( Easier said than done though
. Afterall conviction gets tested big time. But if done rightly works wonders)
5/8
* We settle for reasonable LT returns, unlike trading.
* Our expectations aren't sky high & we are more risk averse which in turn ensures we don't keep churning our portfolio or trying out new techniques .
* This indirectly helps us improve our returns in the long run .
* We settle for reasonable LT returns, unlike trading.
* Our expectations aren't sky high & we are more risk averse which in turn ensures we don't keep churning our portfolio or trying out new techniques .
* This indirectly helps us improve our returns in the long run .
6/8
*Many a times lumpsome investment works against us, especially when trying to predict a bottom. Hard to catch a falling knife!
*Monthly salary ensures monthly #SIP which is a blessing in disguise .
*Many a times lumpsome investment works against us, especially when trying to predict a bottom. Hard to catch a falling knife!
*Monthly salary ensures monthly #SIP which is a blessing in disguise .
7/8
Time constraint is not actually a constraint .
*Weekend reading & learning is enough to become an investor unless one is managing others' money .
*Too much of reading without knowing our temperament & having an investment philosophy won't be of much help in markets.
Time constraint is not actually a constraint .
*Weekend reading & learning is enough to become an investor unless one is managing others' money .
*Too much of reading without knowing our temperament & having an investment philosophy won't be of much help in markets.
8/8
So salaried folks, let's embrace volatility .
As Buffet says
" A wildly fluctuating market means that irrationally low prices will periodically be attached to solid businesses ."
And sooner or later price shall catch up!
*END*
@dmuthuk
@FI_InvestIndia
@position_trader
So salaried folks, let's embrace volatility .
As Buffet says
" A wildly fluctuating market means that irrationally low prices will periodically be attached to solid businesses ."
And sooner or later price shall catch up!
*END*
@dmuthuk
@FI_InvestIndia
@position_trader
