Thread by @stocktalk_in

📕 WHY MOST INVESTORS FAIL?

🔸Most retail investors are introduced to the stock markets via news channels, stock websites or by friends.

🔸They start investing their hard earned money without understanding how the #StockMarket works.

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🔸Analyzing a company is out of question. They don't even know how to read a company's financial statements like balance sheet, etc.

🔸What next? They start hunting for stock tips given by market experts.

🔸Finally, they make their first investment based on a tip.

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🔸This typical cycle of retail investors usually ends up in a huge loss of their invested money.

🔸They start blaming the experts for their losses!

🔸They feel cheated and so they either leave the markets or start the tip hunting cycle all over again.

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🔸Very few leave the markets. Most get even more determined after their first loss to hunt for the most reliable tip provider / expert.

🔸End result? The loss making and tip hunting cycle goes on forever.

🔸Who is to be blamed? The answer is - the investor himself!

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🔸Consider this - It takes 4-6 years of college education to get a professional degree like engineer, doctor, lawyer, CA, etc.

🔸Why do you think stock market investing & trading is any different? It takes a similar time period to study and understand the markets.

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🔸Investing is not a mechanical skill like driving or swimming that you can learn quickly.

🔸Instead, it involves deep understanding of the subject matter which cannot happen within 6-8 months.

🔸Most investors are just not willing to put in the effort in learning.

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🔸A medical student cannot perform a brain surgery within 6 months of college. It takes him at least 10 years of "medical practice" to perform the surgery.

🔸Investing is same. You need to learn first, "practice" second and then, perform last.

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@FI_InvestIndia @dmuthuk