Why can't I create wealth in the Stock Market?

Why can't I create wealth in the stock market? This is the mindset of most of the investors who entered into the stock market recently. 

Most of the new investors hold their stocks in the market fall up to some extent. If stocks fall 10-20%, investors lose their confidence and sell. Investors also try to average their stocks in price fall without any knowledge and sell on further falling.  In both cases the investor loses their capital, it leads to a negative impact on the market.  This happens only because of investing in stocks without proper analysis.  The investor who works on fundamentals of the stock and its growth, he turns the price fall as an opportunity, and accumulates the stocks in every price fall. Whereas investors invest their money in the market without proper knowledge and average in every market fall, which leads to capital loss and finally exits from the market. 

Every investor must observe the graph of the stock market over 30-40 years before investing. Stock market graph moves upward over a long period. In this path we can see many short and major ups and downs, but its final direction is always upward.  So, it is clear
that the market always moves upward and creates wealth. It is very difficult to create wealth in a short period for new investors.  Research of stocks and Patience are the main tools for creating wealth in the markets.  If you go through the success stories of Warren Buffet and Rakesh Junjunwala, they could create wealth in a long period with their stock analytical skills and patience. Rakesh Junjunwala started his investment career with only 5000 rupees, he treated every fall of the market as an opportunity and invested by lending money from various sources. Now his world is worth a thousand crores. Junjunwala is not alive now, but his investing strategies and techniques are always great lessons for every investor.  It is obvious that one will create wealth with his proper research and patience. 

Investors need not worry about market fall and should realise that it is common in every market. You have invested in a good stock, and it is falling, just try to grab it as a golden opportunity for more investment. If you have more money, then try to invest. If you have no money, ‘No Action’ is the more efficient step. And the loss you see in your portfolio is only the paper loss, when you sell your stocks, then only it converts into real loss. Be patient on market fall, if you believe in your portfolio. Over a long period, the market creates wealth. 

Few Steps to follow before & after Investing

• Research the stock before investment about its growth in past, present and future.
• Analyse the stock, its products, penetration in the market
• Study the information about management, their past track and efficiency.
• Check the market value of the stock. If it is expensive, wait for the correction for good stocks.
• Check the FII and DII activities in the stock.
• Check the Promoters share in the stock and their activities whether they are pledging, decreasing or increasing their investment.
• Check how companies update their products from time to time after investing. 
• Analyse the company reports after results and future development plans. etc…

But Patience is the major key in creating wealth in the market.