The stock market is one of the biggest mind-game where the fight is between well-educated, deep-pocketed institutional investors and a lay trader/investor. It is a matter of clever investing which takes a lot of studies, observation, and analysis of the financial market and taking into consideration all the risk factors involved. A lay investor or trader might find himself making more losses than profits if he trades with half-knowledge.
Aman Bhadouria is a financial educator and influencer chooses social media platforms to guide people in the right direction of investment, stocks, mutual funds, personal finance, entrepreneurial finance, and startup topics.
Aman shares his words of wisdom on finance, funding, and the millennial approach to investment. His advice to first-time/new investors-
Post COVID-19, the market has seen a lot of first-time investors entering the market, especially millennial investors. But young millennial investors are not fully aware of how the market works from the inside. Most of them are trying to earn a quick buck in the market as the market is on a bull rally. I would strongly advise people who are investing for the first time to always do their own research and pick stocks that have strong fundamentals for the long term.
The budget has given a clear indication for a few industries that will significantly grow in India for the next few years. Since construction is the key focus, all construction stocks, cement stocks seem like good bets for the near future. Even the auto sector has been gaining traction due to the vehicle scrap page policy introduced by the government. It is important for young investors to do in-depth industry analysis before investing their money in the market.
He further added- It’s very hard for the young generation to start saving at a very early age. In fact, personal finance is extremely important for each individual to learn and understand, which sadly isn’t taught to us in our college years. The younger generation is not made aware of the benefits of compounding interest and how investing early can lead to immense wealth-creation by the time you are 60. However, it is important for them to first understand how the stock market works.