Most of the people who enter into the world of investing in stock markets end up with a single word question that should they expect their returns Fast? or Slow? Well it depends on how you want to work, Investing is not complicated, but not even easy it's the way you wan't to work on Investing.
Let me talk about the types of Investors in Stock markets,
You will find mostly the two types of Investors in Stock Markets, 1) is Trader (yes, they also consider themselves as Investors). 2) Investor [mostly are Trader (though they call themselves long term investors)]
Traders
Traders are those who want's to make quick bucks from stock markets or you can say they expect Fast returns on their investments, I'am not saying that they are wrong because there are many super talented traders who make extraordinary returns on their Investments in stock markets.
But, yes to become a trader you need a very sharp mind, a quick decision maker, a technical expert, must be able to handle extreme stressful mindsets (because your money is always at risk!)
I will discuss the basic skills in detail that are required to become a trader in my upcoming posts, so you can subscribe to my mailing list if you don't want to miss any updates in future.
Investors
Investors are those who want to make money slowly but still ends up being a long term speculator and the luckiest wins!
I'am very disappointed to know that most of the people end up being a Trader or Investor though there is a treasure gem like Value Investing in Stock Markets this is a slow process but If we add a compounding factor in it your returns will skyrocket like a Big Bull Run!
There is different sub approaches to study the exact approach of Value Investing, it is the way Warren Buffet made his wealth and many other Value Investors are making too.
So let me come back to the question weather Fast or Slow?
To become a Fast type Trader (Investor) you need to qualify below checklist:
- I know about technicals
- I'am expert in quick decision making
- I can put my money at high risk
- I can bear extreme stress
- I can become a professional trader.
To become a slow type Investor ( I believe in Value Investing here) you need to qualify this checklist:
- I can learn to value businesses
- I can give time to my Investments
- I will compound!
Though above are the few checklist to know where you want to go..Tally them with your mindset wherever you qualify go ahead and make yourself wealthier daily.
P.S: One can become both but Fund must be allocated properly between Investing and Speculation.
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