How to do Long Term Investment in Stock Market

How to do Long Term Investment in Stock Market

How to do Long Term Investment in Stock Market :
We are all aware that what type of asset class is Stock Market.
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But as we know that 24 hrs are there in a whole day, consist of Day and Night.
Similarly journey of Stock Market consist of Up's & Down's.
This is a follow on cycle.

Several time market fallen and get up's again and move forward strongly.
Market is well above from where it has been started, inspite of several big falls.
But the practical result is in front of you.

Although this is the index story. But inside index several stocks who performed exceptionally well.
And think what was the scenario if you have invested in such stock at that time in the beginning of Stock Market.
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But that is history and you know HISTORY REPEAT'S ITSELF.
From that time to now, there are several examples of Long Term Investment and chance of creating such examples for future also.

So why are you waiting for. Let's do it,

Long Term Investment is just like showing a seed or planting a small plant and waiting it for becoming a tree.
But for that we need to follow some basic Principles.
Search for good fertile land, then dig a deep hole for planting a plant, need to do daily watering, clear weeds, keep watch for insects and other animals and provide safety fancying, give fertilizer.
Then after its natural growth cycle we get a tree.
But now what happens to flower and fruits.
Friends you have to think about type of Flower and Fruits before planting a plant.
After it grown up as tree, you should not think about Flower and Fruits, if you have planted show plant.
So as per requirement of Flower and Fruit, we have to decide seed or plant and then go for other requirement.

So it is quite clear to you now that Long Term Investment requires several efforts for getting benefits and appreciation.

Now question is that how we will do this?
Let's go,

Selection of Stock i.e Selection of Flower and Fruit :
Based on our understand about product and business and based on past data understanding of stock we have to decide the stock for our investment.

Selection of Sector i.e Search for Fertile Land :
Fertile land is very important for plant good growth similar way selection of proper Sector with good earning visibility and long hope of business run and demand is very important.

Study of Past Data Deeply i.e Dig a deep hole for planting a plant :
For Long Term Investment we have to be very careful about our stock selection. Because we don't have a chance of coming back to our initially stage after 10 or 20 years. So take time, do proper examination and study of past data and try to evaluate earning for future and also other prospect of business scope and product variety and company strategies to capture market percentage and Transparencies maintained by Higher Management. Dig deep in to Company's Data and try to get confidence to invest in it. Check Company is Fundamentally strong or not.

Check out Daily Moment initially i.e Need to do daily watering :
After selecting Stock for investment first take small position in Stock and track it daily movement and how much it moves up down, how much is the daily volume, how  much is the delivery positions for getting acceptable and logical point for entry. Check Technically how much company is following it

Keep Yourself away from Market noise i.e Clear weeds :
We are focusing to invest for Long Term, so daily news good or bad, resistance and support level, experts opinions can shake our view and disturb our moto of investment. We are investing today on this stock for tomorrow but bad news can change our view to sell it to and it moves upward or good news to buy make to invest heavily today and stock may fall all this happen and Market always try to confuse us and we become inconsistent. So keep away from noise of Market and keep firm on our game plan to invest consistently if you are satisfied from all Company Fundamental data.

Keep watch  on other competitor if any available i.e keep watch for insects and animals and provide safety fancying :
Market is open for all. Several companies are there in same type of business, but the stock in which we have invested should have some cutting edge or monopoly product or business and the Company management should have capability of new innovation as per market requirement and can protect their old business. Company should adapt the Market required changes fast and give solution fast.

Invest in it i.e Give fertilizer : 
After fulfilling all the above requirement from starting to end and getting full confidence that this is My Own Business and I am aware of all in and out of business and mind is totally ready without a single question in our mind and we are able to see the bright future business and we will do what best possible to run our business and will not run away in bad times. Then start further increase your investment on Stock gradually or one time investment as suitable and possible for you.

But entry point to be evaluated by different Stock Valuation Methods to get proper RIGHT TIME RIGHT PRICE entry. For understanding why RIGHT TIME RIGHT PRICE entry is important refer my article.
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Now as seed don't become tree in a day. It takes several year to grow up as tree for Flower and Fruits.
We also have to give time to our Invested Stock to grow up and perform. And we all aware that here our Flower and Fruits are Money.

If our selection is right and we have invested handsome amount in it and let them to grow, then in this process we will receive yearly Dividends and Off course the Price appreciation and Splits (if any), Bonus (if any). Friend please try to understand this funda. Don't try to be smarter than Market because Market is much more Smarter than you.

Invest and Patiently wait for investment to grow. Don't move here and there. Up and Down's will there. Let the Tree Grow and Sit Below it's Shadow and Enjoy the Sweet Fruits and Smell Fragrance of Flower. All the Best.

Disclaimer : - This article is only for knowledge and information sharing and not any type of recommendation.

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