Big reasons to avoid trading before investing

big reasons to avoid trading before investing

Stock market is widely used method of investment. It has proven very beneficial for thousands of people and at the same time many people have lost their money in stock market. Many enthusiasts see people getting rich through stock market and they want to experience that. They want to make quick money and in order to do that they go for stock trading instead of making an investment.

Trading basically means the buying and selling of stocks within short period of time. Traders buy stocks at low price and as soon as the price of their stock goes up they sell it. This sounds like a ideal way to earn profit but it is not that simple. If it would have been that easy then everyone would have made become millionaire by now. There are so many things to learn about stock market that as a beginner you should never choose trading before investing and spending time to learn stock market.

Without proper knowledge about the stock market and the stocks that you are going to buy you cannot do trading with profit. It looks very easy and appealing from the outside but once you start doing it yourself you’ll understand how complex everything is.

Ways of Trading: Long-term and Intraday

Reasons to avoid trading before investing

  • If you start doing trading before investing in stock market then you are risking your money. The prices of stocks goes up and down every minute and you could end up loosing your money instead of making profit.
  • Trading should be done with the profit that you have made from your investments. In this way you’ll not lose your initial amount even if the trading stocks’ prices goes down. For that to happen you have to make investment first and start trading after earning profit from your investments.
  • The knowledge about which stocks to buy and which to sell can only come after you understand how the market works. Without understanding of stock market the trading will feel like gambling and trading should not be like that.
  • With investing money in stocks the chances of making profit are better than starting with trading.
  • The buying and selling stocks within short period of time could result in you missing out on huge profit. Sometimes it happens that you sell your stock as soon as its price goes up and it continues to grow. With this you miss out on a huge profit which you’d have made if you have invested for long time.

Due to these reasons its always better to invest first and trade later. No doubt, trading right stocks at right time can give huge benefits but there is also risk involved with that. Always trade with the profited amount. This will help you to minimize the loss and increase the profit. Hope this was helpful to you. Good luck with your investments.

Stock market investment: 9 things to know

6 big reasons to invest money in stock market

6 big reasons to invest money in stock market

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. Stock market has always been a topic of discussion among common people. Many believe its the best way to invest money while many think of it as a gamble. Many people believe that only some specific people who has knowledge of stock market can be successful with their investment in it 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 definitely some things which are essential to know as a beginner before investing in stock market. Anyone can learn the necessary steps required to invest in stock market and make profit. Still lots of people have their doubts about investing money in stock market. There is always a fear of losing the money. This fear is understandable but it can be avoided by careful investment. Apart from this the advantages of investing in stock market are vast.

The benefits of stock market investment are such that it can prove to be the best investment decision of yours. Common people do not invest money in stock market because they think that it is for rich people but it is not true. One can invest even a small amount in stock market and get benefits. Therefore, every one of us should invest in it and reap its benefits.

Read also: Stock market investment: 9 things to know

Why you should invest money in stock market

  1. Stock market can give high return in short period of time. With the growth in market and company’s share value in which you have invested your invested amount could get doubled.
  2. Stock market has high liquidity. You can buy and sell your shares at any time without any difficulty. If you have invested in some company and you think it will go in loss then you can sell your shares and similarly if you want to invest more in some stocks you can buy more at any time without any difficulty.
  3. With stock market investment you get more financial freedom and more knowledge on the subject. This knowledge will help you make better investments and make you financially independent.
  4. With investing in stock market the value of your money also goes up with increasing prices. If you would have saved that money the its value would have decreased with inflation but investing in stocks helps you in growing your money value with the market.
  5. Another reason to invest in stock market is that you get regular income through dividends. A dividend is a distribution of profits by a company or corporation to its shareholders and by investing in company’s shares you are its shareholder.
  6. Even though thousands of people have invested in stock market the percentage is very small compared to the nation’s population. In India only 3% of its population has invested in stock market. Therefore, there is a lot of potential and opportunity to make your money grow in stock market investment.

It is wiser to invest money in stock market at this point of time. It is one of the best way to invest money and reap long term benefits. As a beginner, start investment with small amount. Do not put all your money in one company’s shares. Invest in multiple companies, this will lower the risk of money loss. Hope this post was helpful to you and good luck with your investments.

Read also: Will stock market make you rich?

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

3 big benefits of investing in stock market

3 big benefits of investing in stock market

Investing one’s money is always our primary concern when we start earning. There are many ways through which one can invest his/her money and stock market is one of them. It is one of the biggest mode of investment. Millions of people invest in stocks everyday. While there are always some stories about the money loss in stock market, it still is widely used and trusted way of investment.

Stock market allows you to invest in popular companies or brands and grow your money with their increase in valuation. You can invest in number of companies and earn benefit from each of them. Stock market has its own risk and benefits. Market goes up and down every minute. There is always a chance of getting into loss but if you invest wisely then that can be avoided or your loss can reduced and benefits can be increased. If you are a beginner in stock investment then you should always start your investment with low amount and then as you get familiar about how the market works you can put more money into it.

Despite of its risk stock market has some crucial benefits which helps its investors. These benefits are the reasons of investing in stocks and makes stock market one of the popular mode of investment.

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Benefits of investing in stock market

  • High return in short period – One of the biggest advantage of stock market is that it can give you high return in very short period of time. With right choice of shares and positive growth of the market your stocks value can increase impressively. You can double your investment amount more rapidly compared to other modes of investments.
  • It makes you the owner of company – When you buy shares of a company, no matter how small, you are now owner of that company. You got the right to vote in the strategic meetings. With this you can influence the direction in which companies strategies go and plan your next step accordingly whether you want to buy, sell or hold its stocks.
  • High liquidity – In stock market you can buy or sell your shares at any time. There are no rules that once invested you can’t get you money back. You can invest with smaller amount and if you wish you can either invest more or withdraw the invested amount without any difficulty.

These benefits makes the stock market one of the most beneficial way of investing money. There are definitely some precautions which need to be taken. Never invest all your money at once or in the one company. Make a portfolio of at least 10 companies. This will help you reduces your losses if any.

If this was helpful to you then do read other posts on similar and different topics. Do share it with your friends and start investing. Greatly appreciate your support.

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

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.

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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.

Ways of Trading: Long-term and Intraday

ways of trading

Everyone of us at some moment in our life has thought about investing in stock market. But we often stop ourselves because of our lack of knowledge about how the market works. We are scared to take the risk of losing the money by investing in wrong stocks. If you want to invest and want to learn about the market then you need to know some basic things. One of those things is to learn about the long-term and intraday trading.

Trading is basically buying and selling the stocks of company. Of course you want to buy low and sell high. But as a beginner its difficult to know that for how long you should hold your stock before you sell. Market fluctuates daily, so the value of your stocks also changes everyday. One day are at a profit and you decide to hold that stock for longer time. And the next day the value of your stock decreases and now you are at loss. Then you wonder that you should have sold that stock when its value was high.

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Long-term trading

When you sell the stock of a company after holding it more than a day its known as long-term trading. You buy the stock and you keep it for more than a day, week, month or years. Long-term trading is basically the investing your money in stock market. You buy the shares and wait for it to grow for months or years before you sell.

I advice you to regularly check the performance of stocks of the company that you bought. Even if you are looking for long-term investment, its important to know value of your stocks. With long-term investment you can earn a lots of money if you invest in right companies.

Intraday trading

Intraday trading is when you buy and sell your stocks on the same day. This means that you sell your shares with in 24 hours of buying them. With intraday trading you may earn 10, 100 or 1000 rupees a day depending on your share value. Intraday trading is what we all can say is the easy way to earn money but it can be very risky.

You should only decide to do intraday trading if your are 100% sure about your share’s growth. In intraday never put a lot of money unless you are expert at it. To do intraday trading you have to be well aware about the market. You need to have the knowledge of the stocks that you are going to buy and sell. You need to be aware about any incident that can affect your stock’s value positively or negatively. Once you know all these things only then you should go for Intraday trading in my opinion.

What should you choose Long-term or Intraday

If you are a beginner in stock market trading I would say that you should go for long-term trading. You can try intraday trading for an experience but with the money that you are okay to loose. Even with the long-term investment start with less money and don’t put all your money in one company’s shares.

There is a popular saying ‘Don’t put all your eggs in one basket’ which is very true for stock market. You should invest your money in shares of different company. By doing that you lower the risk of losing your money. If you put all your money in one company and its stocks crashes then you will lose all your money.

I would suggest you to go for long-term trading if you are just beginning. Once you get a hold of how the market works, you can do the intraday trading. Even with the long=term trading always be aware about the market and the events that affects it. With stock market never invest all at once, at first invest in fewer companies. Then slowly either invest in more companies or put more money in the companies you already invested in.

Even if you don’t have much money to invest, you can start with a small amount. You can invest small amount each month and with time you will be able build a nice portfolio for yourself. I advice you to start investing in stock market because it will be beneficial for you in long term. This is one of the way to generate passive income for yourself. But remember to do proper research before investing in share’s of any company.

I have talked about different ways with which you can earn money online in this blog. Do read them and also if you find it helpful then share them with more people. Greatly appreciate your support.

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