Discipline over dopamine: CA shares 6 hard wealth truths every new investor learns the painful way

Chartered accountant and market commentator Nitin Kaushik has sparked a wide conversation among retail investors after laying out what he calls the “six investing lessons most beginners learn the hard way,” urging newcomers to absorb the wisdom before costly mistakes set in.

In a detailed thread on X, Kaushik dismantled the popular notion that stock markets are an easy route to quick wealth, warning that excitement and confidence often fade fast once volatility hits. “Markets reward discipline, not excitement,” he wrote, setting the tone for a candid reflection on behavioural pitfalls that trip up first-time investors.

No place for borrowed money

Kaushik’s first and most emphatic lesson was a caution against investing borrowed funds. While loans come with fixed deadlines, markets operate on their own timelines, he noted. When repayments clash with sudden market swings, fear takes over decision-making, often forcing investors to exit at the worst possible time.

Instead, he stressed the importance of “patient capital” — money that will not be needed for at least three to five years — as the foundation of sustainable wealth creation.

Emotions as the real enemy

Beyond capital, Kaushik highlighted emotions as the most underestimated risk in investing. Greed during rallies, fear during corrections and FOMO when others appear to be winning can derail even sound strategies. Without a clear plan, emotions begin to dictate trades, frequently ending in regret.

This emotional churn, he argued, is what pushes many investors into the next trap: chasing fast money.

Myth of overnight wealth

According to Kaushik, genuine wealth creation in markets is rarely dramatic or instant. Long-term investing tools such as systematic investment plans (SIPs), steady accumulation and patience consistently outperform speculative bets driven by hype. “Consistency beats adrenaline every time,” he wrote, cautioning investors against confusing gambling with investing.

Trend-chasing and shallow conviction

Kaushik also warned against blindly following market trends. By the time a sector becomes a talking point, much of the upside is often already priced in. Jumping in at that stage, he said, is like “boarding a rocket mid-air.”

Equally critical is understanding what one invests in. Knowing how a business earns revenue, manages costs, faces competition and justifies long-term belief is far more important than tracking daily price movements. True conviction, he said, is built through research, not tips — and becomes a vital anchor during periods of volatility.

Fundamentals over stories

In his final lesson, Kaushik underlined that compelling narratives must be backed by strong fundamentals. Quarterly earnings, cash flows, debt levels and management commentary serve as the financial “X-rays” of a company’s health. Without them, even the most exciting story is little more than marketing.

Summing up, Kaushik reminded investors that markets are not casinos, but they punish those who treat them like one. Discipline, preparation and emotional stability, he said, are what ultimately separate long-term winners from short-term speculators.

“Wealth grows quietly for years,” he concluded, “then suddenly looks ‘lucky’ to everyone watching from the outside.”