Time Frame and Goals in Stock Investment

What are the essential factors that you need to consider achieving your investment goals and the related time factor? One is the amount of money that you intend to accumulate. This amount is linked to the time frame. Whether your goal is short-term or long-term? If you plan to save for an after-retirement project, at the back of your mind you must be thinking that you need to maintain a reasonable standard of living, comparable to the one you have been enjoying in your active-service life. You look at your present annual income with the possible purchasing power of your investment returns for the years that you have in mind. Your family history and the transitions in life, obligatory responsibilities before or after of retirement are the issues to be taken into account. To achieve your financial target, you must inculcate discipline. Take the annual rate of inflation into account. Make a methodical estimate as to how much money you need to invest in shares on a regular basis to reach the goal within the time frame set by you. For achieving that goal, depending upon the circumstances, you may have to control your spending. But you must invest the pre-decided amount at the periodical intervals set out by you during a particular year, without fail. If you postpone doing things, for one reason or the other, you will miss your targets once for all and your plan will result in a failure. Your investment program needs to get priority over your spending program. Once you watch your investment grow, you will become self-assured and investing will become your way of life.

While setting the goal and time frame, you need to understand the overriding influence of the human qualities on your investment decisions. Financial discipline is linked to patience. You can not dictate terms to the share market. A thousand brokers put together, will not be able to make correct predictions, whether the share price will increase or fall. The basic quality of the market is to fluctuate. You have carefully researched your portfolio before building it. One or two abrupt downslides should not give you jitters. If you react to every situation in the market, whether upswing or downswing, you will not be successful. You will falter and will not be able to reach your goals. You must accept the challenges of the market with confidence. Most of the shares will bounce back. If your goal is long term, you will emerge successful as a share market investor.

Once you fix the time horizon, it will begin to dictate terms to you. But the ups and downs during the journey of the investment should not bother you. Be assured that you are going to get greater returns over then long term. Having decided the goals, prioritize them according to your needs. As for short-term goals, your will have to take more risks.

Once you have finalized the shares for your portfolio and when your goals are long-term, do not drift from one share to another, fearing the downslide in some shares. Do not go on digging at several places. You have invested in good options and let it be there. Be in touch with a good financial consultant, who can advise you about the market conditions.

If you do not run in various directions in a random fashion, and keep your mind fixed on your goals, your investments will fructify at the proper time.

Share markets are difficult to predict. But this applies mostly to day trading activities. When your approach is disciplined, the chances of your success are bright.