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Back to Basics: Understanding Yourself Before You Start Investing ( Shashank udupa)
Investing can look exciting from the outside. IPO buzz, market rallies, social media chatter—it all creates the illusion that quick money is just a click away. But if you are genuinely starting from zero and want to build wealth that lasts, the first step has nothing to do with charts, trading apps, or stock picks.
The first and most important step is understanding yourself.
This article marks the beginning of the “Back to Basics” series designed for complete beginners—people who want to learn investing from scratch, without noise, hype, or shortcuts.
Start by Unlearning Everything
Before you learn how to invest, you must unlearn a few things.
You’ve likely absorbed random market opinions, shortcuts, hype around IPO listings, or the idea of “easy money.” All of that is noise. Real, sustainable wealth is built on discipline, patience, and clarity—not on luck or daily adrenaline.
So let’s strip everything down to the foundation.
You’re here because:
- You want to save.
- You want to grow your money.
- You want long-term financial stability.
If you’re here looking for quick profits, this series is not for you. If you’re here to build wealth over 20–35 years, then you’re exactly where you need to be.
Why Are You Even Investing?
Before investing a single rupee, you need to answer an important question:
Why are you saving money?
Most people never think about this. But your “why” determines your entire strategy.
For some, saving creates mental stability. It’s a sense of security—knowing that even if life dips, their finances won’t crash.
For others, savings are tied to goals:
- Supporting parents
- Funding education
- Marriage of a sibling
- Buying a home or car
- Building an emergency fund
All of these are valid. What’s not valid is saving or investing without any purpose, or worse, investing recklessly just to feel smart or make quick cash.
When you don’t know your reason for saving, you’ll:
- chase risky IPOs
- buy penny stocks
- gamble on tips
- panic-sell at losses
- blow any small profit you make
This cycle is common—and destructive.
Stop Expecting Quick Money from the Stock Market
Many people enter the markets thinking:
“I need money fast—tell me how to earn from stocks.”
This is the wrong mindset.
Your day job (or business) is where you earn.
The stock market is where you grow what you earn.
Unless trading becomes your full-time profession, the market should not be your income source. It is a place to build wealth—not to solve urgent money problems.
Understand the Power of Simple Goals
Once you identify your “why,” your next step is to set a small target.
For example:
- “I want ₹10 lakh in 10 years.”
- “I want ₹1 crore by age 40.”
You don’t need complex formulas. Do simple math:
- Find your target amount.
- Divide by the number of months available.
- That’s the basic savings requirement—even without growth.
This clarity will keep you from taking unnecessary risks.
Your Biggest Enemy in the Stock Market: Fear
You cannot afford to be emotional in the stock market.
Why? Because fear makes you do stupid things:
- panic-selling quality stocks
- exiting at the bottom
- doubting good decisions
- listening to random advice
- missing long-term gains
Here’s a classic example:
You invest ₹10,000 in a fundamentally strong stock.
The next day, it drops 20%.
Not because the company is bad, but due to a temporary market correction.
Most beginners immediately panic:
- “Should I sell?”
- “What if it falls more?”
- “Why did this happen to me?”
They sell in fear—only to watch it bounce back and double in a year.
This emotional rollercoaster is what destroys compounding.
Change Your Mindset About Market Red Days
This is one of the biggest psychological shifts you must develop:
When the market goes DOWN, you should be happy.
Why?
Because:
- you get good companies at discount
- you can accumulate more
- long-term investors benefit from corrections
Look at Sensex or Nifty over 30+ years.
It has gone through scams, crashes, recessions, wars, pandemics…
Yet it always moved up over time.
What goes down eventually goes up—and usually stronger.
Two Things You Must Know Before Starting Your Investing Journey
1. Know why you are investing.
Your “why” directs your strategy, discipline, and decision-making.
2. Do not be scared.
Fear will make you exit early, lose money, and repeat beginner mistakes.
If you can master these two principles, you’ve already won half the game.
Final Thoughts: The Journey Starts Now
This is just the first step. Before you open a Demat account or buy your first stock, you need to:
- adjust your mindset
- build emotional discipline
- understand long-term thinking
- remove the temptation of quick money
