What is the actual difference between an ace investor and an average investor? Most of them follow the same path but only a handful are able to catalyse the process of wealth generation. Such people get little credit for their patience, consistency, and discipline. Rather, they’re simply termed lucky. However, if you look closely at their investment journey, it’s the little things that really matter. It’s about getting the basics right. But how will you do that? By strictly focussing on your financial goals.
Most investors do not know how to analyse markets or schemes and tend to go for what’s trending. This is known as herd mentality. A common tendency observed in investors, especially retail, is to over-allocate in anything that’s buzzing or simply echoing. This is followed by extensive coverage of the particular flavour of the season by the pink papers and other digital websites.
You should invest in anything only when it fits your goals. For example, cryptocurrency is the talk of the town. But will you invest in Bitcoin just because Elon Musk sees great potential in it? Well, ideally you shouldn’t. Unless you have a complete understanding of the risks and benefits that come with an investment, don’t indulge in it.
Cricketing anecdotes are great to undertsand investing practises. Always remember the greatest batting averages are not the result of mere sixes and fours. In fact, it’s a combination of several dot balls, slow singles while converting a few of them to quick doubles and a lot of patience. Investment is the same. You don’t have to hit it out of the park every time. But a collection of small moves will definitely uplift your wealth someday. The key is to keep at it.
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