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In a world where market trends shift quickly and stock values rise and fall by the minute, Value Investing provides a steady, long-term strategy. It is not about chasing the hottest stock of the week; rather, it is about identifying solid firms that are undervalued and patiently waiting for the market to recognise their full worth. The concept of value investing is straightforward: buy good firms when they are trading below their intrinsic worth. Consider it like shopping during a sale. If a ₹1000 product is offered for ₹700 and you’re confident in its quality, why not get it? That is precisely how value investors think about equities. Warren Buffett, the legendary investor, serves as a global emblem of this method. What’s his philosophy? “Price is what you pay; value is what you get.” Value investors seek stocks that are: They apply fundamental analysis tools such as: The idea is not only to buy cheaply, but to buy quality at a reasonable price. These companies may not quadruple in a week, but in the long run, they can provide excellent, consistent growth with relatively low risk. Patience is an important trait of value investing. The market may take months, if not years, to realise a stock’s true value. But when it works, the benefits can be substantial. Furthermore, because you’re investing in fundamentally good companies, your downside risk is often reduced.  Demystify Capital Markets encourages investors to consider value investing as a long-term wealth-building strategy. It’s great for folks who don’t want to time the market on a daily basis and would rather create a solid, low-risk portfolio gradually. Remember that value investing is not about big gains or overnight success. It requires consistency, dedication, and faith in good enterprises, even when the market temporarily disregards them.

Investing in the stock market can be done in a variety of ways; some investors seek long-term value, while others prefer fast trades. Momentum Investing is an increasingly popular method. If you’ve heard someone say, “This stock is on fire!” they’re most likely referring to momentum. Simply defined, momentum investing is investing in stocks that are already rising in price, with the expectation that this trend will continue – at least for a time. The argument is based on market psychology: when a stock gains attention and performance improves, more investors buy it, pushing the price higher. Momentum investing focusses on price action and market mood rather than a company’s fundamentals. This does not imply dismissing corporate strength; rather, the primary reason for buying is the stock’s movement. Assume a stock has been steadily growing over the past few weeks, aided by high trading volume. A momentum investor would enter at this point, ride the rise, and then quit before the price corrected. Timing is important, as is discipline. Momentum investment generally relies on technical indicators such as Moving Averages (particularly 50-day and 200-day). However, with larger potential earnings comes increased risk. Stocks can lose momentum almost as quickly as they acquire it. That is why stop-losses and good risk management are essential. It’s also vital to recognise that momentum investing is not synonymous with blindly following hype. Not all hot stocks are worthwhile investments. You must determine whether the trend is backed by volume, if it is still possible to enter, and whether there is still room for growth. Momentum investing may appear thrilling to beginners, but without sufficient research, it can lead to emotional conclusions. Before beginning any trade, Demystify Capital Markets always recommends starting with minimal amounts, following charts, and developing clear exit strategies. Momentum investing is more effective in positive markets or sectors with strong trends. It is not a long-term strategy, but when implemented correctly, it may be a potent tool for capturing short- to medium-term returns.

With investing in the stock market, the focus is always on “long term returns” but what if you need results a little sooner? This is where short term holding comes in. It’s an approach that also can let you invest in stocks for a shorter period of time usually from a few days to a few months with the goal of quick returns, but with greater profit comes greater risk. Short term holding is when you buy a stock and you plan on selling it shortly thereafter, typically within a year. Unlike the long term investors who ride through up and down cycles of the market, short term holders try to take advantage of rapid price shifts. For instance, you purchase a stock for rs.100 and it goes up to rs120 in a month, you can sell to book profit. Active traders employ this strategy. Timing is just a key element in successful short term investing. Considering the relatively short time frame, short term investors likely used technical analysis, stock charts, news based catalysts and market sentiment when things such as good earnings numbers, a new government policy or a sector that is in vogue. But it’s worthwhile remembering that short term wins come with short term volatility. Stock prices can be volatile and minor events can cause significant price swings. While patience can help shrink most investor “wounds” in longer time frames, it is a lack of patience that requires investors to think and act fast and be disciplined in the short term. Another important factor is the preservation of capital. “It is not because exposure times are short that we are not at risk.” Short-term trading, if not approached carefully, can lead to losses, because you’re doing something different from the masses of other investors moving capital left and right — from one asset class to another, from one investment style to another, and from one type of trading to another. This is why risk management, like stopping losses and taking profits on time, is important. From a tax perspective, short-term capital gains on listed shares in India (shares held for less than 12 months) attract 15% tax. Short-term capital gains in India (from listed shares held for less than 12 months) are taxed at 15%. It is critical to include this in your profit estimate so that you understand your genuine return. Short-term holding can be a valuable experience of learning for beginners, but it should be done with caution. Start modest, monitor the market on a frequent basis, and avoid making judgements based on social media advice or excitement. Always look for stocks with decent liquidity, solid fundamentals, and strong market trends. At Demystify Capital Markets, we help clients comprehend the benefits and drawbacks of various investing methods, including short-term holdings. Whether you’re trying to make quick trades or create a long-term portfolio, we want to make sure that every decision you make is educated and in line with your objectives. Remember that investing is more than just generating money; it is about making smart money.