During his more than 6 years in trading and investing actively in the Indian stock market, Mr. Vaibhav has some of the finest secrets to create wealth from stock markets. This candid conversation not just helped us understand the ball game of markets but also a successful way with which one should look towards stocks markets and wealth creation.
What is Wealth creation?
Let’s understand what’s wealth creation first, and then move ahead, so when you have decent earnings coming in, but your spending is wiping your hard-earned money then the truth is you’re living on the edge and do not have assets to lie on in different situations and there is the probability that you’ll have to continue actively work to earn. However, if you are earning and spending but still have a great amount of cash flow reserved in different instruments and assets and you are not relying on your earnings and you have got your time freedom (the ability to do anything anytime) then consider you’ve created wealth.
While explaining further he added, “I understand this sounds extremely common” but the process to reach this point is not common especially from stock markets. To understand this, when we invest in a company, we see growth, we see the future and we see a giant dominating the world with its high-end services or products so it brings me.
Invest in the future and invest in growth: It is the simplest way to create wealth, as you invest in these companies which will ultimately make a fortune for you too.
Financial literacy- When we often hear about markets, we hear there is only speculation, major losses happen and people lose their hard-earned money but if we analyze those losses, we’ll understand the root of it i.e., financial illiteracy.
While creating wealth through the stock market, is a game-changer. Once you try and understand the lingo of the stock market and start reading about it, you’ll understand people have lost money. For instance, if a footballer plays a cricket match, he definitely loses as he can’t understand the game, so if you are not understanding the game, there are 100% chances that you are not gonna win it.
Diversification: It is something which highly underrated. When Warren Buffett said “Don’t put your all eggs in a single basket” people thought it’s about just investing in different companies but I would say all he meant is hedging your equity with different instruments. For example, when you buy some equity, you should always hedge it with instruments like gold or bonds which will help you in a crisis of stock markets so that’s the secret number.
The Golden Secrete:
So we now are at the end of the secrets and I have to tell you, this can make the biggest change in your approach to see stock markets, resulting in different output and probably the best output! This is the most important secret, the golden secrete and not many people are aware of it, it’s
Understanding no one can grow like any potential company can grow:
There is no other instrument in this world (before bitcoin as per the latest data) that can beat companies’ growth, as they provide the services or products to the “world”, it’s a huge market to sell and they have the highest growth chances of compounding and if they have those chances to win and compound then investing in them will make your chances high to create wealth for you”
once you understand this last secret you’ll automatically invest aggressively, read aggressively, diversify aggressively and fetch your dream results just like that, by believing in it.!