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stock market investment: 9 things to know Investing 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.

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.

Two main reasons to always invest your money

We all like to put our money somewhere where it can grow in value. Most of us decide to put it in a savings account. Putting it in a savings account is the most secure way to preserve our money in our minds. I’ll give you two reasons for why you should always invest your money instead of saving it in bank account.

Most of us think of investing as a gambling. Whenever the word investing comes we immediately think of stock market and we decide to not go for investing. Money can be invested in number of ways and in number of things. You can put your money in real estate, gold, land and of course in stock market. Even if you don’t have a large amount of money, you can always start with a smaller amount. Everyone should opt for investing their money and see it grow in value.

Also Read: Is investing in stock market useful?

Here are the two reasons to always invest your money instead of saving it in a bank account.

1. If you don’t invest your money then its value will decrease with time

Your money will lose its value if its being kept in bank account. Let’s suppose you saved 10000/- in your account and your bank gives you 3% interest rate per annum. After one year your 10000/- will become 10300/- and in the mean time the prices of vegetables & fruits have gone up, prices of petrol & diesel have touched the sky and all the basic day to day life things have become expensive but your money is only grown by 300/-. So now your 10300/- will not be able to buy things which you can buy with 10000/- a year ago. It has decreased in value because you didn’t invest your money.

The value of your money doesn’t go up with the inflation if its kept in your savings account. Therefor you need to put your money somewhere where it can also grow with the same rate. Investing in stock market is one of the easiest way to invest your money. You can start with a small amount. You can also invest in land & property or in gold. With investing your money you give it a chance to grow with the market and with this it will not lose its value.

2. You give yourself financial freedom if you invest your money

If you invest your money in stock market, gold or in real estate, it can give you the large percentage of return. Yes, there is a chance that you may lose your money in stock market, There is 1 big mistake in stock market most of us make and it costs us our money. But if we can avoid that mistake then stock market can turn out to be very useful.

With good return of our investment and investing gradually and smartly we can actually overcome our financial problems. It can actually give us the financial freedom which most of us can’t get from our job. If you are able to make some smart investments then its possible that you may not have to worry for your job again. You will become financially stable and independent. So its always good to invest your money because it has a lot of potential which savings account doesn’t have.

If you want to learn about stock market then checkout this article

Ways of Trading: Long-term and Intraday

These are the two main reasons according to me for which I think you should always invest your money. It will be very beneficial for you and there is no harm in it as long as you don’t make any rash decisions. Hope this article was helpful to you.

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Stock market investment: 9 things to know

9 things to know before investing in stock market

Two main reasons to always invest your money

1. If you don’t invest your money then its value will decrease with time

2. You give yourself financial freedom if you invest your money