“Hey, don’t you know it is not safe. Its fraud.”
“Your money will be lost, its not our cup of tea. It’s a scam”
“Beware, I know people who lost money there.”
These are
some blind advices you will get when you invest in Stock Market, especially
in India. With all due respect, I am not defaming India for this but it’s a fact. I
personally experienced this. On the contrary, there are so many people here that
support you who are well aware of the potential benefits of trading in the stock market.
Yes it is
true, you can lose money there. But you can also make profits. These advices
are good to some extent, but one cannot be prejudiced about it.
Like all other good investment opportunities be it fixed deposit, gold, or even real estate, stock market investment is also a viable and profit-grossing option. And this comes under the “Must Try Investments Option” if you are planning to actually multiply your wealth within any time period of your preference.
The case
with Stock Market is you cannot invest in it without basic knowledge. In fact, one should never start investing in the stock market without doing adequate research and planning.
Otherwise, the above advice will turn out to be facts in your case and you will end up losing money.
Do some
researches and study the basics of the stock market. Nowadays, we are just a fingertip away from the vast sea of knowledge as Google, YouTube, and other means are open to you on your mobile and PC.
To know about Stock Market and its working read my previous article about it. (read here)
Why should you Invest in Stock Market?
The first and foremost thing to be kept in mind is that investing in the stock
market is a way to grow with your country’s economy. Because the stock markets
in a country are listed with companies that are having business in that country as
well as other countries. So, the stock market can always be correlated to a
country’s economy and acts as an index of the economic stability, GDP, jobs, and
all other such factors and react to it.
Moreover,
the stock market allows us to take pride in being a small investor in leading and reputed
million-dollar companies, how fascinating…isn’t it?😉
One other
interesting example and experience I can give you is us getting a part of the
profit from the company that we depend on and purchase some products or services.
To know key points of 44th Reliance AGM read here
If your thought processing is similar to the above scenario, it’s a sign of
good investor. Because at this point you realize that it is good to invest in
companies that produce products or give services that you and most of the
people you know depend frequently.
Also, your style of purchasing starts to change, because you will start to
check the products to find out their manufacturers and whether you have a share of
the company. I can give you another scenario for this.
Trust me…. You
will think like this if you become serious in the stock market and start investing.
So, a stock market investment actually allows you to have a different
perspective in life and gives you a chance to make your investment grow more by
your actions itself.
Apart from
these scenarios depicted above it is not that much easy to invest in the stock
market as you need to be technically good to understand the charts and do your
analysis and to do the fundamental analysis about a company to understand its
future potential.
It is not
easy to be good in the stock market but it is not that difficult either. All it needs
is some effort and dedication and a will to study the basics. Also, by applying
some common sense and staying up to date with the market trends by watching the news and analyzing it, you can easily pick some stocks.
If you are less interested in being a think tank with your savings in the
stock market, then you can consider Mutual Funds. There a brilliant fund
manager will intelligently use your money to get you a good profit. The only thing
is you have to pay a good amount as commission. Even with that also a mutual
fund returns are highly appreciable.
Is Stock Market Safe?
All these
are facts and cannot be hidden. Yes, there are risks, but we cannot generalize
it as unsafe because of
The Securities and Exchange Board of India (SEBI) is a regulatory board under the
Ministry of Finance in India for securities and commodity market in India. So,
things are not light here. SEBI monitors the stock market, its activities, and
its participants. It amends and creates new policies and rules for the smooth
and safe running of the stock market in India.
Like SEBI
every country has its own regulatory board for safeguarding the securities and
commodity market. Therefore, the word unsafe is not apt in the stock market.
It is the inexperience of investing in the stock market without understanding
it, that leads to your failure. Not all stocks are good to invest in. The time and
price range to invest is also a factor. Not all stocks which are having a very
lower price can go up. Also, not all stocks having a good price can go up only,
it can plummet with any warning.
Understanding these things are what we need to figure out which can de be done by some dedicated studying and researching. Watching the stock market or some specific scrips also gives an idea.
A lot of groundwork should be done with great commitment and dedication but eventually, it will pay off. Yaa… it's your hard-earned money that you invest so no problem for dedication and commitment, I guess.😜.
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Disclaimer: I am not a SEBI registered analyst or a highly successful investor. I am a beginner still studying about it. Decisions you make are solely your responsibility.
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