The Challenge

There are many challenges in financial world these days. Any trader or investor steps into the stock market or any financial market to make money but few gain more greed over time and set their expectation so high. One of the main challenges faced by investors and traders these days is Rising Expectation. If one financial instrument is giving more profit comparatively than other in short term (1 to 5 years) then everyone will be focusing on that. In order to have the balance, there will always be ups and downs in financial market

Any financial instrument which is giving 18% to 20% return is considered as the decent return. The abundance wealth generation is all about how one can compound this return with patience. If the expectation of a trader or investor is to gain 30% return in stock market in short term, that is nothing but pure greed. This is keep on rising in Indian Stock Market as the number of investors keep on rising these days. It is also noted that anyone who is an investor in stock market also trade the markets with very high expectation

When a trader or investor have their minimum expectation from the stock market and giving more time for the market to respond, they see a clear win. It is also noted that people these days wanted a higher return and invest all their capital including the monthly expenses and emergency expenses in one go and fail in short term. This is clearly due to panic as they invested all their money. When a person invest even his / her monthly expense money in stock market, he / she will not have patience as they wanted to get the return definitely from the market to survive the next month. When the timeline given to gain in the stock market is less, they will definitely book in loss as they don't have option to hold. This is mainly due to having very high expectation from stock market

let's say we have Rs.1,000 now and we have the capability to double the money every year and we are ready to wait for 1 whole year to make this double. I would say even this is very high expectation from any financial market. If we are able to make this possible then we are on the 1% list. One might think, making 1,000 rupees from 1,000 rupees in 1 year is simple but lets understand what will happen if we do this continuously for 20 years. You will be surprised if is say, it will be worth Rs.105 Crores in 20 years. Try this yourself, If you have Rs.1,000 now and capability to double it every year

But beyond certain time, doubling your money every year will not look simple. That needs lot of focus and patience. This also require very focused expectation without greed and this will be a great challenge. If this doubling concept can be continued for some more years beyond 20 years, then it will compound in much higher rate. If an investor have set their expectation very minimal or reasonable in the stock market, there is no challenge or challenger. This doubling our money every year should be focused with diversifying our capital. We should never invest in a single financial instrument for this wealth generation process

Even if we fail in doubling our money every year and if we are somewhere near to that, think what will be the result ? Wish you all great success in coming years.

Disclaimer: This blog is for informational and education purpose. This is not an trading / investment advise. Consult your financial advisor before investing and trading.

Have a Great Day

B G Nareshkumar