Investment is subject to market risk!
This is a common disclaimer that were shared with every investors before investment. People make investment expecting it to grow and getting a healthy return. But the returns on investment is not guaranteed as several factor influence the #returns. Investors may expect it to be the market volatility or various economic decision. But in true sense neither , the market nor the economy is responsible for our returns. Not even the #stocks they we pick in our portfolio.
The biggest risk that affects the returns is "our emotions" which influences "our reactions".
#Emotions pose a significant risk in our investment because they can lead to irrational decision making, which may affect the #returns. If you get excited when stocks go up and get panic when they fall - we are not investing, we are just reacting.
Even the best stock, the best mutual fund, or the best financial advisor can’t help us...if our behavior works against us. The real game of investment begins by staying calm. The basic logic to follow is :
- Trusting our process.
- And letting time do the magic.
📉 Markets will go down. 📈 They’ll come back up.
But if we stay steady — that is where the real return lies.
In good faith - Peace!!
