Zoom Out

Don’t let short term uncertaintly spoil your long term rewards.

Here’s the Nifty 50 chart on a monthly timeframe—each candle represents one month. Just by glancing at it, you’ll notice that roughly 35–40% of the candles are red, while the rest are green.

Now take a look at the same index on a yearly timeframe—each candle shows a full year. Here, you’ll spot only about 5–10% red candles. The rest are green.

And that brings me back to my point

If you become too focused on short-term trends and fail to zoom out, it’s easy to lose discipline and consistency—two of the most important traits for market success.

But here’s the twist:

Even if you stay invested for the long haul, your portfolio might not perform well if you’re holding the wrong stocks. That’s the final and most crucial part of the stock market game

There are many strategies to help you identify the right stocks: Value Investing, Growth Investing, Momentum Investing, and more. Personally, I lean towards Momentum Investing Principles.

Just like indices are rebalanced periodically—where underperforming companies are removed and new ones added—momentum investing works the same way, just with different criteria.

Take Nifty 50, for example. It includes the top 50 companies by market cap. If a company slips out of that ranking, it’s replaced. Momentum investing uses a similar logic: hold the strongest-performing stocks, and if one loses momentum, replace it with a new leader.

What method to choose while investing in the markets is yours to choose, but everyone needs to follow two things to build wealth:

1. Stay invested for the long term.

2. Stay invested in the right stocks.

That’s it for today.

-Manish Chandre