InvestorQ : What are the basic rules that I need to remember as a long term investor in the stock markets?
Niraj Mehta made post

What are the basic rules that I need to remember as a long term investor in the stock markets?

Answer
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shrinidhi Rajan answered.
1 year ago


Long term investing is something that is as underrated as it is misunderstood. What do we understand by long term investing? Obviously it refers to a longer period of say 6-8 years. That is largely correct. But that is not all. Long term investing is based on some key assumptions. When we say hold for the long term, what do investors interpret from the same? The first question you ask when it comes to long term investing is whether this is the right stock and this is right time. There are no simple answers to this question. If one goes by valuations, we are definitely above long term average valuations. It has now been empirically proven that long term investing is what works in the case of equities. But long term investing is not just about holding on to your stocks. There are certain assumptions underlying long term investing that investors need to be conscious about. There are some basic philosophies that every long term investor needs to follow for long term investing. This will help you to understand what long term investing is all about and it is also a lot about managing your risk a lot better.