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

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.

Read also: Will stock market make you rich?

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