IT IS EASY TO MAKE MONEY IN THE MARKETS

There is no such thing as a free lunch. One always hears about cases where someone has made a quick buck in the markets and it may be true. There are always get-rich-quick schemes and investment options. If cryptocurrencies and NFTs are the flavour these

days, it is IPOs in another market and small cap stocks at a different time. Remember, none of these overnight rich investments end up well for most people.

However, markets do reward long-term investors. Stay invested with an investment time-frame that suits your needs. A good investment is one that is boring, one where you put money away now and have more at a later date.

Volatility is an investment term that impacts the price of a stock or the market index. Volatility is caused by several economic and political factors, from news affecting a particular industry sector to government policy changes and political tensions or upheavals. Investors should not mistake volatility to be only market falls; it can also be sudden spurts in the market. In a volatile market, prices aren’t an accurate reflection of real worth. Volatility is not only inevitable, it is also healthy for the market, and every long-term investor will experience it from time to time. When investing in markets, it would be wise to get comfortable with the idea of seeing market changes.

Likewise, it is critical to note that markets tend to overreact to unfavourable news events before they factor in the impact of the development. In the short term, stock markets can swing wildly, and enthusiastic investors may land up buying at a high and selling at a low. However, smart investors remain calm when others are fearful and succeed in avoiding losses or limiting them. You can become a smart investor by viewing the stock markets through a broad lens and

Investing is not just about buying and selling, it is also about knowing when to hold and for how long

understanding where you stand and what you wish to achieve from your investments.

The most important aspect about any investment journey is to remain focused on long-term goals, and not be distracted by the noise around unsubstantiated market myths. Those can be managed with a little bit of planning and a level head. ■