Risks OK... But is it Risky too..

 Before starting to talk about risk, wanted to share few lines from some big achievers.

'He who is not courageous enough to take risk is living a very risky life'

'The biggest risk in human life is not taking risk'.

These lines indicate that we are always living a risky life even when we are not taking any risk. We are on the risk of not achieving as per our potential if we are not taking enough risk.

Other lines which I personally appreciate is 'Risk and opportunity are on the same side of the coin'. It depends solely on us what we want to see on that side of the coin RISK or OPPORTUNITY.

Stock market is also considered to be risky for many and they stay away from this,while some are making millions in the same market. Is it not enough evidence or proof that the risk is not in the market itself but in the way we react on each events in the stock market?

Stock market always say to its investors that 'Don't trust if you don't understand me'. All investor should focus on understanding than trusting. Trust will follow if someone understands the subjects.

Once we understand the risk we will know the ways to handle it. We will take a simple example of a dark street to understand the risk involved in stock market. To understand the risk we will take an example of a dark street. One end of the street is an investor with money and other end is the required results of the investor, our returns solely depends on the way we pass through the dark street. We made the synonymous of dark street because in stock market also we don't know what is lying ahead. And what is going to happen with your money tomorrow.

To discuss for minimizing the risk in stock market, we will take dark street as a symbol. Follow the steps -

1. When you have to pass through the dark street, which you don't know, you take support of walls or some guiding lights. Similarly in stock market if you don't know any stock look for expert advice, analyst recommendations, or news articles. In this case investor must follow all these if you don't know the stock details.

2. Take one baby step at a time in dark street if you are not confident what's lying next. similarly baby steps is needed in investing also, don't put all of your money in one go. Wait and Invest.

3. Now if you have passed the same street multiple times, you don't even bother to take help of walls or guiding lights. You are confident enough in each step and take bold moves. Similarly once you get enough confidence in the stock you invest, you will get courage to put money even in negative sentiments in the market.

4. With time you will be more confident and then you will stop bothering about the analyst recommendations and news in the market.

5. Finally the dark street will not be dark for you. Your inner conscience will guide you towards the required results. You will know the stocks in a way that you were always knowing the outcome.

My advice is that don't try to explore more dark streets (stocks) at the same time when you have just started to invest. Take time in understanding each and every events and outcome and then decide and start with baby steps.

Further take below steps to move forward and keep the dark street story always in mind.

1. Select few stocks (may be 5, 10, 15 or 20 max) and start understanding the past events, news, business, recommendations and outcome.

2. Watch them for at least 3 to 6 months before taking 1st step of investing.

3. Don't keep waiting for long before investing, because you will gain experience only when you start putting your money in the market. Gaining required results will give you confidence and losing money will give learnings.

4. Track the stocks you chose till the time it is chosen one. You can filter out your selection if it is not giving expected results.

5. Keep moving with the baby steps. The length of baby steps (money invested) depends on your inner conscience of the stock price and business conditions.

6. Last, stop listening to the noise, filter out the valuable inputs for your decisions of investing.

This is an honest effort to share my learnings with all the new investors. Hope this will help in changing the perspective of stock market.