On the right track

In more than five years of service, Value Research Stock Advisor has created a huge opportunity for investors to understand investing and succeed in their mettle

- DHIRENDRA KUMAR

Investing in equities can be challenging, and guiding others in this field may prove even more so.

Indeed, there are very few certainties in the realm of equity investing. On any particular day, certitude is simply non-existent, a factor that underscores the difficulty of being an equity investor. Often, your days in the market can be incredibly challenging, but the overall journey is profoundly exhilarating. Yet, I see so many constantly stressed. There’s the stress of choosing the wrong companies, there’s the stress of the markets rising and falling, and there’s the stress of your stocks not following your predictions. For some, there’s the stress of others outperforming them. And yet, after some years of stress, investors who stay focussed start noticing how well their money has grown on the whole!

Knowledge and Confidence

But this stress is not compulsory. Knowledge and confidence can solve the problem. This reminds me of a technique I read about for reducing passenger stress that some European airlines are trying. Many have a deep fear of flying. The aircraft manufacturer Airbus has discovered that if such passengers can listen in on the conversation between the pilots and the air traffic control, they don’t feel scared. Why? Simply because they know what is going on. They can hear that the pilots and the ATC are carrying on their work in a calm and routine manner, and whatever the passengers fear is not justifiable. Information and understanding are the key to reducing stress.