Stock market can reward Investors with huge returns; or it can punish Investors with deep losses.
For those that consistently earn decent (double digit) returns from the Stock Market, it can be a bit boring particularly for those that live off Stock Investments (Trading).
Stock Market can be Predictable
No one can accurately predict the Stock Market movement.
However, in the event of a Corporate Action (e.g. M&A), a new government policy (e.g. moratorium on exports) or a Global Event (e.g. trade war); there is a high chance that the Stock or a set of Stocks (e.g. Commodity Stocks) will spike up or spiral down.
Limited Number of Good & Investable Stocks
Good & Investable Stocks include not only those with low PER’s (Price to Earnings Ratio), but also those that disrupt the industries or the leaders in the industries.
For Sophisticated Investors with sizeable capital, it can be tricky to diversify their portfolio with only a small pool of Good & Investable Stocks available.
Monotonous and Repetitive Process
Unlike Speculative Investors, Sophisticated Investors tend to do their homework. It can be relentless research and analysis with no end.
And often, the expected returns can take months or years. Maybe that’s why, people view the Stock Market Investing as a ‘waiting game’.
Low Volatility Market
Opportunity ascends when the Stock Market is volatile. Hence the less volatile a market is, the less opportunity presents. And the longer the waiting game is.
It is noteworthy to see whether short selling will be re-introduced in near future. And if it is, how it will affect the volatility.
Regardless how tedious stock investing can be, it is not meant to be thrilling anyhow. It just indicates that fitting risk management has been deployed, leading to optimized returns (maximized returns at acceptable risks).
Even those successful international Investors still need to go through tedious process of research, selections, and making decisions on daily basis and put on long hours. There’s no such thing as ‘sleeping investors’.
Disclaimer: NOT FINANCIAL / INVESTMENT ADVICE. This article is of writer’s personal opinion ONLY. Any information contained here is for education and informational purpose only. Readers should seek other sources or professional advice for further clarification as deemed necessary.