Most of the time, we generally used to hear that the stock market is gambling & stay away.
Does it True?
According to me, YES But not for everyone.
Investing by Sentiment vs Business would have a huge impact. Ask a few questions to the people who lost their money in the market & derived as gambling.
- Which company they had invested?
- What is the business model?
- Why did you invest in that company?
- Did you look at the peer companies?
- What is the Sales & Revenue growth in the past 5 Years?
- How long did you hold the stocks?
- Why did you sold?
By looking at their reasons, probably you should get an idea of why they lost money.
Let me give you an example in creating your own business vs investing in the stock market in a simpler way.
Fundamentally, we could be clear on the following questions to start any business. ( Example: Restaurant )
- Where to start?
- Food quality / Workers / Master
- Where to purpose the core materials on a regular basis?
- Who would be my customer?
- Who is my competitor?
- The waiting period to get settle?
- Finally, the risk involved in the investment.
In the same way, we should look at the company details / Business / Revenue / Leadership before investing.
Do Invest in Business not Sentiment.
Disclaimer: Invest always has its own risk.