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Monday, October 17, 2011

Be a long term investor

After a long time I am back to my blog. Since i was busy a little in my MBA final project. Today I want to discuss about something which everyone knows but very few follow it. It is 100% practical to be a long term investor.

Who is a long term investor?
I will not define long term investor from a dictionary. According to me a long term investor is one who invest in the stock market just for earning dividends and not for speculation.

Have i said anything wrong? Definitely not.

Investing for long term is as simple as taking an LIC policy. That means you invest your extra money in the market to create savings for future. For example if you earn Rs. 20000 per month from your profession/job after taking care of your household expenses you are left with say Rs.4000 as cash. So you invest say Rs. 500 to Rs.1000 in stock market every month and believe me if invest and forget this small amount after investing it into the stock market you will find your wealth multiplying as much as 4 times. Wooohooooooooo

Yes. There are many true success stories of people who have invested for long term and they are just relaxing at home and earning huge money from the market through dividends, bonus shares etc. and also reinvesting the part of the profit in market again.

Inshort long term investment will give you...

1. Dividend
2. Bonus Shares
3. Right issue at lesser prices than current share price
last but not the least is PEACE

Truly speaking people who do trading or intraday trading or specualtion dont have peace of mind. They are so busy and worried about the fall in the stock market that some of them even commit suicide. In 2008 downfall many of the traders had committed suicide since they had invested huge money in the market for earning quick profit. Also the point to be noted is that they had invested the money which they should have kept for household expenses. Hence investment means to put extra money available in the market to build a long term saving. And long term investors are not worried about fluctuations in the stock market since long term investment will never let you down. It will always fetch profits and also HUGE.