As I have said in my earlier blog, there is nothing right or wrong in being either a Stock trader or Investor or both as long as you are very clear with what you are. I have been an investor since the very beginning of my investment journey and hence have accumulated some insights of the Investor side of the process. Only and only because of this reason I would hereon, be dwelling much deeper into the Investor side and not into the trading side of process. For anyone aspiring to be or someone who is already a trader, this blog may still give you some value add due to eventual assets being traded or invested being the same.

Normal convention says you start from opening a Demat account or savings account or anything related to that procedure. While that is a must, as we said earlier, we are here to not talk about generic things available easily anywhere else but to dwell deeper into those aspects that may not be easily available for you to know and the aspects that are very crucial to make you a successful investor and not just an investor in quickest time possible. Any account opening process or due diligence with documents may take a maximum of one month, but there is something else that one needs to start preparing months earlier from placing their first order on the stock market. It is this preparation that we are going to discuss in detail today.

Much before you have an ability to place an order on the stock market, you need to know what you will do with that ability. Most of the focus is spent on opening a new account with a broker, getting the funds in account and other related activities with very less time and focus left on deciding what is to be done once the account has been set up. This follows with investors starting to google ‘best stocks to buy’ or following certain groups for quick stock tips or cloning someone you know in your know circle. While discussing with many such investors throughout my investing journey, the most frequent reason for investors doing this has either been unwillingness or inability to spend time and effort to find a particular stock or has been the unavailability of a crisp, to-the-point and proven method to follow to do it. For those whose reason is unwillingness or inability to spend time and effort, I have in my previous Blog already mentioned that you would be better off either Investing via Mutual Funds or having a Professional do the job for you. At the end of the day, Investing is just a pathway for you to achieve your goals and being actively involved with the Investment process is not the only way to do it.

For those investors who have not been able to get any crisp, to-the-point, proven and actionable process to follow for Investment there is a specific reason why it is not available. Investing process for anyone is a very personalized process which one has developed over a period of time. This means there are no set rules that apply to everyone and hence are not shared at a large level. In that way, Investing needs to be seen as an art and not as a science which is set in fixed rules that apply universally. Having said that, in my next blog, I would like to share an investment process that has been followed by many investors in their initial journey of investment as a starting point. Over the period of time they have modified this process as per their own learnings and comfort and experiences.