Why is it not easy to make money in the share market | Nilesh Shah | UNDERMONEY
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- เผยแพร่เมื่อ 22 พ.ย. 2024
- Nilesh Shah, a renowned financial expert and the Managing Director of Kotak Mahindra Asset Management, has often shared insights on why making money in the stock market isn't easy. Here are some of the key reasons often highlighted by experts like him:
1. *Lack of Knowledge and Discipline*
Many retail investors lack adequate knowledge about the fundamentals of the stock market. They often rely on tips, hearsay, or short-term trends rather than conducting proper research.
Emotional decision-making-such as panic selling during downturns or overconfidence in bull markets-leads to inconsistent results.
2. *Market Volatility*
Stock prices are influenced by numerous factors, including global events, economic data, corporate performance, and investor sentiment. Predicting these movements is challenging.
Investors often react to short-term volatility instead of focusing on long-term value creation.
3. *Asymmetric Information*
Institutional investors, hedge funds, and other large players often have access to better tools, research, and resources, giving them an edge over retail investors.
Retail investors may find it difficult to interpret technical and financial data effectively.
4. *Time and Patience*
Making consistent returns in the stock market requires a long-term perspective. Impatience can lead to frequent buying and selling, which erodes profits through transaction costs and taxes.
Building wealth in the market is often a marathon, not a sprint.
5. *Overconfidence and Herd Mentality*
Many investors believe they can outperform the market without sufficient preparation or strategy.
Herd mentality leads people to follow trends without understanding the underlying risks, often resulting in losses.
6. *Influence of Emotions*
Greed and fear dominate market behavior. Investors chase high returns during bullish phases and sell prematurely during bearish phases.
Controlling these emotions is essential but not easy for most individuals.
7. *Misjudging Risk*
Investors often underestimate risks or fail to diversify their portfolios effectively.
Concentrating investments in a few stocks or sectors increases vulnerability to market downturns.
Nilesh Shah’s Key Advice
In interviews and public talks, Nilesh Shah emphasizes the importance of **knowledge, discipline, and a long-term perspective**. He advises investors to:
Invest based on fundamentals and valuation rather than speculation.
Diversify their portfolios to manage risk.
Leverage professional advice or mutual funds if they lack the expertise to pick individual stocks.
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Nileshbhai Thank you
Very good advice. 🙏
Thanks Sir
Yes Yes Mr Nitin Shah, very very down to earth, a jem to watch❤ again lovely work keep it up brother 😊
Thank you sir
Nilesh Shah ji😊
@krishnosharma4417 thanks bro
Rockefeller's statement, Sir, not Buffet's
Need full video is this possible ?
@@bhadreshshah1658 th-cam.com/video/OJcGCImL7Pw/w-d-xo.htmlsi=dDUwRdhIb1zMy-0Y
Full video link
Good work ❤ bro...🎉
Thank you sir