I have decided to quit Direct Equity Investing for now.
I have realized this the hard way that I’m getting too much obsessed with the Stock Market. As many said before, that direct equity investing is a full time activity and I have started to agree with it more now. Second major reason is that I lack patience to hold good things. My thoughts and thinking process is changing too frequently. I feel losing my concentration and taking more stress wouldn’t be good for me at this point of my life. As @desaidhwanil said before that it is more important to protect capital and losing money in the initial years because of rash decisions will lead to major loss in the final compounded capital going ahead.
I’ll restart direct investing when I feel more comfortable with it and be able to give more time. Most importantly when I learn to keep more patience. For now, I feel I’ll sit with cash and wait for mid cap mutual funds to become a little cheap as current mid cap valuations do look expensive. If any body wishes to suggest some other strategy then please suggest. I feel compounding money with mutual funds for few years will teach me how to be more patient.
I appreciate your post.It is important to be comfortable with what you are doing.
I started my investing journey with MF and SIP’s and they helped me survive the 2008 crash.
I also can relate that this will teach a person how to be patient and to stick to a system/approach. The words “patience"and " approach/ system” pretty much sums up what one needs to survive in stock market.
I think you are able to understand yourself very well which is a great trait. I think you willbe around in stock market for a long long time to come.
When you are 19 years old, always aim for excellence in your life’s real calling. Money is a by-product of success in any sphere. You should first think what activity really excites you and how does your core strength and weaknesses resonate with that. You should pursue the stock markets, only if you think this is your life’s real calling and you must undestand by the way, that there is no nobility in this profession.
I started my direct investments when I was 18. So I can relate to your thought process. Don’t completely quit. You don’t need to invest real money. Just keep reading and be close to business and economics. Since you got interested in the first place, keep it going. I used to invest my pocket money and later when I started earning, I used to invest 5% of my income. After 15 years, the savings in equity is over 30 times my annual income from day job. Starting early is vital. The investment need not be significant in value. The business knowledge is more important than how much you can invest, especially when you are just 19. You can spend an hour every week and it will compound your knowledge base.
