Stock market investment: 9 things to know

stock market investment: 9 things to knowInvesting money is very important. Investment is more beneficial than saving your money. With the help of investment the value of money grows with the time which does not happen if you save your money. There are number of ways one can invest his/her hard earned money. One of the biggest and most commonly used method to invest money is stock market investment.

Stock market investment has proved to be one of the most trusted ways to invest one’s money. There are definitely some risks involved with it but its benefits are immense. Stock market allows you invest your money in shares of various companies and your money grows with growth of those shares’ values. There is no special eligibility criteria that only some qualified people can invest in stock market. Anyone can invest in it and get good returns. You can buy as many shares as you want and you can sell them whenever you want.

Some people believe that only some specific people who has knowledge of stocks can be successful in their investment in stock market but that is not true. Some understanding is definitely required to understand how the stock market works but it is something that anyone of us can do. There are some things which you need to know as a beginner before investing in stock market. These things will help you wisely invest your money and get good returns on your shares.

Read also: Will stock market make you rich?

9 things to know before investing in stock market

  • Stock market will not make you rich instantly. Like any other investment your money will increase gradually not instantly.
  • Before investing in stock market learn about the things which are or may effect it positively or negatively. If there is a chance of recession coming then it is wise to wait and do proper research before investing.
  • At the time of recession, do not buy more because the prices are down. You never know for how long the recession will last.
  • Before buying the shares of any company check its performance in the past few years. Check how much return it gives or can give in a year and what are company’s future plans. Invest only after knowing all the important details.
  • You do not have to invest large amount of money. Start with small amount and then you can invest more money every month or in 2 months according to your wish.
  • While investing don’t put all your money in one company’s stocks. Invest in different stocks and create your portfolio.
  • Invest very carefully in the penny stocks. While penny stocks can give you a good return in less time but the chance of it happening is very low and chance of losing your money is high.
  • Your work is not over after you have made your investment. Regularly check the performance of your stocks and decide whether you need to buy more or sell some of your stocks.
  • Do follow the news and current events which can effect the stock market directly or indirectly as it will help you create a strong portfolio for yourself.

These are some important things which you should be aware of while investing in stock market. Start investing money as soon as possible and invest wisely.

Read also: Ways of Trading: Long-term and Intraday

Will stock market make you rich?

will stock market make you rich

Stock market investment has always been a debatable topic for so many people. Some think it as a way of losing your money while some think of it as a quick way of making money. For some people it is like a gamble, if it worked then its good otherwise its not. What actually stock market is and can it make you rich like so many claim or it can actually cause money loss.

All of us have heard stories of people who became wealthy with stock market investment. On the contrary you also get to hear about people who lost their money in stock market. So, how do you measure its authenticity. Stock market is clearly something people are fascinated about for ages but not many of us know how it works.

There are number of factors which effect the stock market growth. In order to understand the stock investment one has to be knowledgeable about these factors. You must be aware about the current national or global events which can effect your stocks. You also should know about the company in which you are going to invest whether that company will be able to grow in future or not and whether it is in profit or loss. After knowing all these things you should invest your money.

So, the answer to the question is no, stock market will not make you rich. You can get good return on your investment without knowing any details if you invest in some good stocks but that does not guarantee that you will become rich. It is the knowledge of stock market and how the market works that will help you become wealthy not some random investments.

Read also: 1 big mistake in stock market most of us make

Should you invest in stock market or not

As I always say, stock market is one of best mode of investing your money but you have to be very careful with your investments. Learn about the company before investing in it. Like I said, you can get good return if you invest in some good stocks but there is always a chance to lose your money.

Read also: Ways of Trading: Long-term and Intraday

Always invest small amount of money in the beginning. Never put all your money in one stock always invest in number of shares. By doing so, you minimize the risk of losing it all. With this you can see which stocks are giving you good return and you can invest more money in them. Before investing more money or in different stocks always read about the company. Stock market can be very beneficial if you invest right. It can help you get the financial freedom which you want but you have to be very careful and calculative with your investments.

Hope this post is helpful to you and you also earn good profit from stock market. Do read other posts on similar and different topics and all the best for your investment.

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1 big mistake in stock market most of us make

One big mistake most of us make in stock market

We all want to invest our money, so that it can grow in value and we can get some benefit. Whenever we hear word investment, one thing always cross our mind and that is stock market. Stock market has become one of the major source of investment for lot of people. Many people think that in order to get some profit in stock market they need some kind of luck. That is not true, thousands of people are earning profit from it and that is not just because of luck.

There are few things which are necessary to know as a beginner before investing in stock market. You need to be aware about the events effecting the market, about the company in which you are investing and how the market works. You don’t need to become expert in all this but do get a little understanding of these things before investing. There are also some things you need to avoid while buying and selling and shares. There is one biggest mistake most of beginners make which results in them losing their money.

Read also: Is investing in stock market useful?

One big mistake to avoid in stock market

There are lots of cautions which need to taken while investing your money in stocks. Stock market changes everyday, every hour and with that the value of your money changes too. You have to extremely careful about the shares you are buying. The one big mistake which need to be avoided is trading before investing. This is the biggest mistake most of us make when we start investing. We want to earn profit fast and instead of investing our money we start trading shares. Stock market is not a gamble and if you will treat it like one, you will definitely lose your money.

Trading basically means the you are buying and selling the shares on same day or the next day. First of all you need to be aware about two methods of investing or trading in stock market. If you want to learn about them then checkout this Ways of Trading: Long-term and Intraday You need to sure about whether you want to go for long-term trading or intraday.

If you will start trading before you have invested any money then you are risking your money. No doubt, trading right stocks at right time can make you good profit but you never know what can affect the market the next day or hour. If you want to trade, first invest. After you have invested and made some profit then trade shares with the profit you have made. With this you will not lose your original amount if the trading turn out to be loss for you. And if trading proves to be beneficial then you will have profit on your profit. But first you need to invest your money for some time.

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Hope this article helped you in making your mind about stock market investment. There is a popular saying ‘don’t put all your eggs in one basket’ do follow this while investing. Invest in different stocks rather than putting all your money in one stock.

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Is investing in stock market useful?

is investing in stock market useful

We all want to invest our money, so that it can grow in value and we can get some benefit. Whenever we hear word investment, one thing always cross our mind and that is stock market. Stock market has become one of the major source of investment for lot of people. But there are always some people who advice us to not invest in stock market because of obvious reasons. There is a high chance of losing your money in stock market therefore many people are skeptical about it. So, is investing in stock market useful or it is just a way to lose your money.

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Pros and Cons of investing in stock market

Stock market has a lot of potential to increase your money value. It also has some risks involved. Some of the pros and cons of investing in stock market are as follows

Pros of investing in stock market

  • With stock market you can actually double the amount of your investment with in short period of time. It is true what you may hear in movies or advertisements. There is a chance to double your investment, if you choose the right stocks and strategies to invest.
  • You can earn a decent amount of money from stock market every month. In stock market you can sell your shares in a day, week or month. If you pick right stocks at right time to sell then you may actually earn more than your salary.

Cons of investing in stock market

  • With the speed you can earn from stock market, you can lose with the same speed too. You have to be very careful while picking your stocks. Investing in wrong stocks can cause a loss of money.
  • It can be addicting to trade in stock market. Once you earn some profit, you want to make more and this can actually result in money loss. Trading can be dangerous if you are not well aware about how the market works. Read the post down below to learn about long-term and intraday trading.

Ways of Trading: Long-term and Intraday

Should you invest in stock market or not

I would suggest to invest in stock market. It is very crucial to invest your money and stock market is one of the best ways to do that. There are some risks involved with it. You need to be fully aware about the stocks or company in which you are going to invest. Always start with small amount of money. Once you start to get some profit then increase the amount of your investment.

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Investing in stock market can turn out to be very beneficial for you if you follow the right steps. Gather proper knowledge about the companies or shares and also the incidents that can affect their stock value. After knowing all the facts you should decide to invest in any company. In order to gain profit from stock market you should be aware about all the recent events which may or may not effect the stock market.

Hope this article was helpful to you and you invest your money wisely. If it was helpful then do share it with more people, greatly appreciate your support.