Investment Guide for New Age Investors

Investment Rules for New Age Investors

In the last couple months, financial markets all over the globe are revolving around central bank’s commentary on continuous basis. The recent rate hikes by the Federal Reserve has also fueled the other global bankers along with RBI to take fresh call on their domestic interest rates. Indian Markets have witnessed roller coaster ride in the last few trading weeks and have undergone many hiccups from Federal Reserve commentary, RBI Monetary Policy, Global Economic Data and Inflation figures. The benchmark Index have been consolidating in a broad range coupled with volatile movements.

If we talk about the overall investment scenario, the index has been in the range but the real pain has been seen in the individual stocks. The continuous selling in the frontline stocks by FIIs and global meltdown has made retail investors little worried about the future of their portfolios. During the corona period, the index tested 7500 levels in early 2020’s and thereafter witnessed ferocious rally towards 18600 levels.  During this period, many new retail investors joined the equity markets and got fascinated towards investing as well as trading.  These new participants have not witnessed correction in the markets in the last couple of years till the end of calendar year 2022.

For these new age investors, there are certain rules which can be followed for yielding the best returns from the markets. In the recent run up of the markets post corona period has made young blood investors to enter in to the Indian equity markets. We cannot ascertain the exact age of the investors but the age profile can be around 30 years of average age. These new investors are more tech savvy and usually work on the mobile application for their trading and investments. They have zeel of learning and ropes in any person who has the capacity to answer their questions.

Common features of New Age Investors:

• Youngsters are keen to invest in stocks
• They prefer to invest directly rather than handing it over to mutual funds.
• They are risk taking traders than investors
• Their ways of analyzing is different from others
• They have their own set of assumptions and rules

Let’s have a glance of investment tips which every new age investors may adopt for their smooth investment journey:

Golden rules:

• Markets discounts everything before
• Never try to predict the Unpredictable
• Never play on Luck or do gamble

Disciplinary rules:

• Keep your correct entry and exit points ready
• Don’t fall trap for any positive or negative news flows
• Trade in highly liquid stocks only
• Never try to copy other trader’s trade
• Keep your quantity size in check
• Never panic with the existing investments
• Avoid trading in leverage products
• Don’t stop your SIPs
• Never invest total cash in a single go

As Warren Buffett says, “One should be fearful when others are greedy and greedy when others are fearful.” Nobody can catch the bottom or the top of any market; it is the zeel and the knowledge which will create wealth. So, in conclusion it is the discipline and the mindset which will lead to financial freedom it should not be dropped even when you become an experienced investor.